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2021-04-05-accounts

The Simon Gibson Charitable Trust

Annual Report and Accounts

5 April 2021

Charity Registration Number 269501

Contents

Reports
Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report 8
Accounts
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Principal accounting policies 15
Notes to the accounts 18

The Simon Gibson Charitable Trust

Reference and administrative information

Trustees Mrs Deborah Louise Connor
Mr George David Gibson
Mr John George Richards Homfray
Principal office PO Box 609
Welwyn Garden City
AL7 9QQ
Telephone 07798 515812
Email info@sgctrust.org.uk
Website www.sgctrust.org.uk
Charity registration number 269501
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Investment managers EFG Harris Allday
Leconfield House
Curzon Street
London
W1J 5JB
Bankers National Westminster Bank plc
Canton Cardiff Branch
277 Cowbridge Road East
Cardiff
CF5 1WX

The Simon Gibson Charitable Trust 1

Trustees' report 5 April 2021

The trustees present their statutory report together with the accounts of The Simon Gibson Charitable Trust for the year ended 5 April 2021.

The accounts have been prepared in accordance with the accounting policies set out on pages 15 to 17 of the attached accounts and comply with the charity’s trust deed, applicable laws and the requirements of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

GOVERNANCE, STRUCTURE AND MANAGEMENT

Governance

The Simon Gibson Charitable Trust was set up by a settlement dated 14 April 1975 by Mr George Simon Cecil Gibson of Exning, near Newmarket, Suffolk. During the year, Mr Gibson donated a further £750,000 to the Trust (2020 - £400,000). Sadly, Mr Gibson passed away after the year end, in May 2021.

The Trustees

During the settlor’s lifetime, he retained the power to appoint new or additional trustees. Subsequently, new trustees will be appointed by the existing trustees under a Deed of Appointment.

Trustees who served during the year ended 5 April 2021 were:

Trustees Mrs Deborah Louise Connor Mr George David Gibson Mr John George Richards Homfray Mr Bryan Marsh

Sadly, Mr Bryan Marsh passed away after the year end, in October 2021.

On agreeing to become a trustee of the charity, new trustees are briefed by the existing trustees on the history of the Trust, the day-to-day management, the responsibilities of the trustees, the current objectives and future plans. The trustees may attend any courses which they feel are relevant to the development of their role, and keep up-to-date on any changes in legislation.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The Simon Gibson Charitable Trust

2

Trustees' report 5 April 2021

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Statement of trustees’ responsibilities (continued)

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and application of resources of the charity for that period. In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity. The trustees meet once a year to review the developments with regard to the charity, its grant giving activities and to make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including investment managers, bankers and auditors. During the year ended 5 April 2021, the day-to-day management of the charity’s activities and implementation of policies has been delegated to Bryan Marsh, a trustee. He has ensured that grant applications are processed and presented to the trustees as appropriate; he also administered payments and maintained the books and records of the charity.

The Simon Gibson Charitable Trust 3

Trustees' report 5 April 2021

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Key management personnel

The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis. The total remuneration of the key management personnel for the year, for services to the charity, was £nil (2020 - £nil).

Risk management

The trustees have assessed the major risks to which the charity is exposed, in particular those relating to its investments and its finances. The charity’s assets comprise listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed by reputable investment managers who adhere to a policy agreed by the trustees. The investment managers’ performance and that of the portfolio are monitored through regular consultations with the investment managers. The investment strategy is assessed regularly to ensure it remains appropriate to the charity’s needs – both now and in the future.

The trustees believe that by monitoring reserve levels and by ensuring controls exist over key financial systems, they have established effective systems to mitigate those risks.

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES

Charitable objectives

The Trust’s funds and income are to be applied towards the benefit of such charitable purposes, institutions or foundations as the trustees in their absolute and uncontrolled discretion determine.

Activities

The Trust’s income is derived principally from its investments and interest earned together with any donations received by the Trust. The Trust’s income is applied in making grants to the full range of charitable causes, including religious and educational causes.

During the year ended 5 April 2021, the trustees made grants totalling £783,000 (2020 – £826,800). A list of the grant recipients is included in note 3 of the attached accounts.

The trustees have presented the statement of the financial activities with a split between an ‘expendable endowment fund’, to which donations and gains or losses on capital transactions are accrued, and an ‘income fund’ which represents the income balance.

The movement in funds for the year is shown in the statement of financial activities on page 12.

The trustees feel their objectives have been adequately met during the year.

The Simon Gibson Charitable Trust 4

Trustees' report 5 April 2021

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

Grant making policy and public benefit

The trustees meet annually, usually in April or May, to decide on the distribution of the income that arose in the year to the previous 5 April. The Trust is a general grant-making charity and therefore makes grants to the full range of charitable causes, including religious and educational causes. It never makes grants to individuals.

Local charities applying are restricted to East Anglia, South Wales and Hertfordshire. Grants have varied in the year from £2,000 to £20,000 but most grants fall in the range £3,000 to £5,000. Applicants should visit the Trust’s website www.sgctrust.org.uk to see the guidelines and application form.

The trustees have complied with their duty to have due regard to the guidance of public benefit published by the Charities Commission.

ACHIEVEMENTS AND PERFORMANCE

Factors outside the Trust’s control

The trustees are aware that there are external factors which could affect the achievement of their objectives as the Trust’s assets are made up of investments and cash, the performance of which is dependent on the general market conditions in the UK. The trustees have therefore set prudent investment policies and place reliance on the investment managers to monitor and advise on the necessary investment changes and suitable asset allocation.

Investment policy

The Trust Deed provides full and unrestricted powers of investment to the trustees.

At the year end, the whole of the Trust’s investments are in UK and overseas equities, commodities, fixed interest stock and cash held for reinvestment.

The trustees are investing for the long term and therefore primarily invest in blue chip companies and prime corporate bonds. The portfolio is not actively tracked, but any changes are made as necessary following regular consultations with the investment managers. EFG Harris Allday began to manage the portfolio from 6 June 2019, with the transfer of assets from W.H. Ireland completed by 29 August 2019.

The Trust retains shares in GlaxoSmithKline plc which was part of the original settlement. At 5 April 2021 this was valued at £1.28 million representing 5.8% of the Trust’s listed investment holding (2020 – £1.49 million; 9.2%).

The Simon Gibson Charitable Trust 5

Trustees' report 5 April 2021

ACHIEVEMENTS AND PERFORMANCE (continued)

Investment performance

The charity’s investments achieved, on average, an income yield of 3.26% (2020 – 4.38%). The capital value increased by 36.4% (2020 – decreased by 10.8%) due the recovery in the market following the impact of the coronavirus pandemic. The investment managers continued to invest in accordance with the trustees’ investment policy set out above. At the end of the year, the Trust’s portfolio of listed investments comprised 78.63% (2020 – 66.55%) UK equities with the balance being held in commodities, UK fixed interest stock and overseas equities. The trustees are satisfied with the performance of the investments and remain satisfied that their investment objectives are being met.

FINANCIAL REVIEW

Results for the year

A summary of the year’s results can be found on page 12 of the accounts.

During the year ended 5 April 2021, total income amounted to £1,618,558 (2020 – £1,273,189), being income arising from the charity’s investments and cash deposits. A donation of £750,000 from Mr. Simon Gibson, and the Gift Aid of £187,500 claimed thereon, was allocated to the expendable endowment fund (2020 – £400,000 plus £100,000 Gift Aid).

The trustees made grants to institutions totaling £783,000 (2020 – £826,800). After grant and general administration costs of £59,835 (2020 – £68,102) and governance costs of £5,660 (2020 – £5,520), the total expenditure for the year was £848,495 (2020 – £900,422).

Total investment gains during the year were £4,687,168 (2020 – losses of £2,800,606). This resulted in a positive net movement in funds for the year of £5,457,231 (2020 – a negative net movement of £2,427,839).

The net assets of the charity at 5 April 2021 totalled £23,231,429 (2020 – £17,774,198).

Reserves policy

The trustees are aware of the Charity Commission’s paper concerning reserves policies. It is not their policy to build up substantial reserves but to distribute virtually the whole of the income on the unrestricted funds for each year shortly after that year’s end. Whilst they have the power to make grants out of the capital of the fund, they do not intend to do so save in exceptional circumstances.

The level of free reserves of the Trust at 5 April 2021 was £696,049 (2020 – £804,772). The trustees consider that this level of free reserves matches the parameters set out in the charity’s reserves policy above and they, therefore, consider free reserves to be adequate but not excessive.

Impact of COVID-19

During the year the coronavirus pandemic (COVID-19) continued to spread worldwide and cause extensive disruption to economic activities globally.

The Simon Gibson Charitable Trust

6

Trustees' report 5 April 2021

FINANCIAL REVIEW (continued)

Impact of COVID-19 (continued)

The trustees have continued to monitor the effects of COVID-19 on the charity’s operations, and the charity continues to work closely with its investment manager to assess the impact on the value of the investments and the knock-on effect on the ability to offer grants. The value of the charity’s investments recovered well in the current financial year following the large falls in April 2020. The investment value has further risen from a value of £22,106,829 at 5 April 2021 to a market value of £24,928,829 on 5 November 2021. The trustees acknowledge and recognise the potential impact of the COVID-19 pandemic on the future operations of the charity. Given the nature of activities of the charity, it is not anticipated that the overall financial position of the charity will be adversely affected or its financial solvency threatened.

FUNDRAISING

The charity did not actively fundraise in 2020/21. Income received arose solely from the charity’s investment portfolio and donations from Mr Simon Gibson.

FUTURE PLANS

Following the death of the settlor, Mr. Simon Gibson, in May 2021, the trustees have been made aware that the Trust is to receive a significant, but as yet unknown, amount from his estate. Once the Trust receives this donation, the trustees will meet to review if there will be an impact on its operations, and if so, what that will be. It is their intention to continue monitoring the investment performance so that, if at all possible, it achieves the criteria set by them to meet their grant giving policies.

Signed on behalf of the trustees:

Trustee Approved on:

The Simon Gibson Charitable Trust 7

Independent auditor’s report 5 April 2021

Independent auditor’s report to the trustees of The Simon Gibson Charitable Trust

Opinion

We have audited the accounts of The Simon Gibson Charitable Trust (the ‘charity’) for the year ended 5 April 2021 which comprise the statement of financial activities, the balance sheet, the statements of cash flows, principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

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

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

The Simon Gibson Charitable Trust 8

Independent auditor’s report 5 April 2021

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts 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 in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

The Simon Gibson Charitable Trust 9

Independent auditor’s report 5 April 2021

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a 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 accounts.

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

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

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

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

The Simon Gibson Charitable Trust 10

Independent auditor’s report 5 April 2021

Auditor’s responsibilities for the audit of the accounts (continued)

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

As a result of our procedures, we did not identify any key audit matters relating to irregularities.

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

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

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London 24 January 2022 EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

The Simon Gibson Charitable Trust 11

Statement of financial activities Year to 5 April 2021

Notes Expendable
endowment
fund
£		 Unrestricted
general
fund
£		 Total
2021
£		 Total
2020
£
Income and endowments from:
Investments
1
Donations
Total income
Expenditure on:
Charitable activities
. Promoting and enhancing charitable work
2
Governance costs
4
Total expenditure
Net income (expenditure) before other recognised
gains and losses
Gains (losses) on investments
6
Net income (expenditure) / net movement in funds
Balances brought forward
at 6 April 2020
Balances carried forward
at 5 April 2021		 —
937,500		 681,058
—		 681,058
937,500		 773,189
500,000
937,500 681,058 1,618,558 1,273,189
58,714
—		 784,121
5,660		 842,835
5,660		 894,902
5,520
58,714 789,781 848,495 900,422
878,786
4,687,168		 (108,723)
—		 770,063
4,687,168		 372,767
(2,800,606)
5,565,954
16,969,426		 (108,723)
804,772		 5,457,231
17,774,198		 (2,427,839)
20,202,037
22,535,380 696,049 23,231,429 17,774,198

The charity has no recognised gains and losses other than those shown above and therefore no separate statement of total recognised gains and losses has been presented.

All of the charity’s activities were derived from continuing operations during the above two financial periods.

The Simon Gibson Charitable Trust 12

Balance sheet 5 April 2021

Notes 2021
£		 2021
£		 2020
£		 2020
£
Fixed assets
Investments
6
Current assets
Cash at bank
Debtors
7
Creditors: amounts falling due
within one year
8
Net current assets
Total assets
Represented by:
Funds and reserves
9
Expendable endowment fund
Unrestricted general fund		 848,582
204,604		 22,184,033
1,047,396		 1,116,735
16,965		 16,646,774
1,127,424
1,053,186
(5,790)		 1,133,700
(6,276)
23,231,429 17,774,198
22,535,380
696,049		 16,969,426
804,772
23,231,429 17,774,198

Approved by the trustees and signed on their behalf by:

Approved on:

The Simon Gibson Charitable Trust 13

Statement of cash flows Year to 5 April 2021

Notes
2021
£		 2020
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income
Interest received
Proceeds from the disposal of listed investments
Purchase of listed investments

Net cash (used in) provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 6 April 2020
B
Cash and cash equivalents at 5 April 2021
B

**(99,121) **		 (244,304)


680,505
553
2,350,184
**(3,506,453) **		 770,708
2,481
1,152,659
(1,545,786)
**(475,211) ** 380,062

(574,332)


1,500,118
 135,758
1,364,360

925,786		 1,500,118

Notes to the statement of cash flows for the year to 5 April 2021.

A Reconciliation of net movement in funds to net cash used in operating activities

2021
£		 2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
(Gains) losses on investments
Investment income
Interest income
(Increase) decrease in debtors
(Decrease) increase in creditors
Net cash used in operating activities
5,457,231
(4,687,169)
(680,505)
(553)
(187,639)
(486)		 (2,427,839)
2,800,606
(770,708)
(2,481)
155,341
777
(99,121) (244,304)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2021
£		 2020
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 848,582
77,204		 1,116,735
383,383
925,786 1,500,118

The Simon Gibson Charitable Trust 14

Principal accounting policies 5 April 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 5 April 2021.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates.

The trustees do not consider that there are any sources of estimation uncertainty or any key judgements made in the preparation of the financial statements.

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. With regard to the next accounting period, the year ending 5 April 2022, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees’ report for more information).

The Simon Gibson Charitable Trust 15

Principal accounting policies 5 April 2021

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations and investment income. All income is accounted for on an accruals basis in accordance with the conditions of the Charities SORP FRS 102.

Donations are recognised when the charity has confirmation of both the amount and settlement date.

Investment income from listed investments is recognised once the income has been declared and notification has been received of the amount due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and includes attributable VAT which cannot be recovered. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings.

Expenditure on charitable activities comprise of grants payable in promoting and enhancing charitable work carried out by other charitable organisations and the cost of administering the grant programme. Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued for but are noted as financial commitments in the notes to the accounts.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of financial and governance procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice. Support costs, including governance costs, are allocated to the charity’s single charitable activity.

The Simon Gibson Charitable Trust 16

Principal accounting policies 5 April 2021

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value, or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund accounting

The expendable endowment fund represents assets held as investments and any gains or losses on investment transactions. The trustees have the power of discretion to convert the fund into income.

The unrestricted general fund represents monies which are freely available for application towards achieving any charitable purpose that falls within the Trust’s charitable objects. It includes income arising from the expendable endowment fund.

The Simon Gibson Charitable Trust 17

Notes to the accounts 5 April 2021

1 Investment income

Investment income
Total
2021
£		 Total
2020
£
Income from listed investments
. Equities
. Fixed interest
Interest receivable
. Bank interest		 618,859
61,646		 708,661
62,047
680,505 770,708
553 2,481
553 2,481
681,058 773,189

2 Promoting and enhancing charitable work

Promoting and enhancing charitable work
Total
2021
£		 Total
2020
£
Grants payable (note 3)
Support costs:
. Administration expenses		 783,000
59,835		 826,800
68,102
842,835 894,902

Administration expenses include £58,714 of investment management costs, allocated to the expendable endowment fund (2020 – £66,505). All other expenditure on charitable activities is unrestricted.

The key management personnel of the charity in charge of running and operating the charity on a day to day basis comprise the trustees.

The trustees received no remuneration for their services in the year (2020 – none). One trustee (2020 – one) claimed £190 in respect of subsistence, stationery and postage expenses (2020 – £775).

The Simon Gibson Charitable Trust 18

Notes to the accounts 5 April 2021

3 Grants payable

A reconciliation of the grants payable and grants commitments figures shown in these accounts is as follows:

Recipients Total
2021
£		 Total
2020
£
1st Swaffham Scout Group
2makeit
Abergavenny Children’s Contact Centre
Action for Children
Air Training Corp
All Saints Church-Cornerstone Project
Alzheimer’s Research Trust
Amelia Farm Trust
Amy Elgar Trust
Army Benevolent Fund
Arts and Business Cymru
Artsadmin Ltd
Aspire
Atlantic School for Young Readers
Baby Lifeline
Back Up
Barnardo's
Barry YMCA
Beaufort Cottage Equine Educational Trust
Beccles Sea Cadets
Bibles for Children
Big Life UK
Blesma
Bobath Children's Therapy Centre Wales
Bowel Cancer UK
Brain Tumour Research
Brainwave Centre
Breast Cancer Care Cymru
British Disabled Angling Society
British Hedgehog Preservation Society
British Liver Trust
British Warships Association
Burwell & District Day Centre
Bury St. Edmunds Cathedral
Canine Partners
Cardiff Bach Choir
Cardiff County Vale of Glamorgan Youth Orchestra
Cardiff Metropolitan University
Cardiff Sea Cadets Corps
Care Network Cambridgeshire
Carers Trust Cambridge & Norfolk
Carers Trust Wales
Caring Hair
Chapter (Cardiff) Ltd
Cheshire Zoo
CHICKS
Child Brain Injury Trust
Balance carried forward		 —
2,000
2,000
3,000
—
5,000
5,000
3,000
3,000
5,000
5,000
—
—
—
3,000
3,000
10,000
3,000
5,000
—
—
3,000
—
3,000
5,000
3,000
—
5,000
—
5,000
3,000
3,000
5,000
—
—
2,000
—
—
—
3,000
—
3,000
—
10,000
3,000
5,000
3,000		 5,000
—
—
—
3,000
—
—
—
3,000
5,000
—
5,000
3,000
5,000
—
—
5,000
3,000
5,000
5,000
3,000
—
5,000
3,000
5,000
2,000
3,000
5,000
3,000
5,000
3,000
6,000
5,000
5,000
3,000
2,000
5,000
4,000
3,000
—
5,000
—
3,000
3,000
—
5,000
—
121,000 133,000

The Simon Gibson Charitable Trust 19

Notes to the accounts 5 April 2021

3 Grants payable (continued)

Grants payable(continued)
Recipients Total
2021
£		 Total
2020
£
Balance brought forward
Church of Resurrection, Ely
Click Sergeant
CLINK
Coleg Elidyr
Combat Stress
Contact
Cool Earth
Cornelly and District Development Trust
Country Trust
Cowbridge Music Festival
Cowbridge Physic Garden
Criminon UK
Crisis Skylight South Wales
Croeso Cowbridge
Cyfannol Women’s Aid
Deafblind UK
Defibrillators in Public Places
Dementia UK
Dennis O’Neill Foundation
Diabetes UK
Disability Advice Service
Disability Wales
Douglas Bader Foundation
Dream Holidays
Duke of Edinburgh Award
Dyspraxia Foundation
Ely Cathedral Appeal Fund
Exning PCC
Family Lives
Fareshare
Farms for City Children
Fields in Trust
Flora and Fauna
G39
Garden House Hospice
Gorilla Organisation
Grove Cottage
Gurkha Welfare Trust
Hearing Dogs for Deaf People
Herts Air Ambulance
Herts Young Homeless
Hijinx
HMS Dragon Welfare Fund
Homes for Veterans
Horatio’s Garden
Hospice UK (Help the Hospices)
HOUR Community
Huggard
In Kind Direct
Balance carried forward		 121,000
15,000
5,000
5,000
5,000
—
—
—
—
3,000
3,000
3,000
3,000
—
5,000
—
3,000
—
—
10,000
5,000
—
5,000
3,000
3,000
3,000
3,000
5,000
—
5,000
3,000
3,000
5,000
5,000
3,000
5,000
5,000
3,000
5,000
3,000
5,000
5,000
3,000
—
—
5,000
3,000
—
3,000
5,000		 133,000
10,000
—
5,000
5,000
5,000
3,000
5,000
3,000
5,000
3,000
3,000
—
3,000
—
4,000
5,000
5,000
5,000
—
5,000
3,000
—
—
—
5,000
—
10,000
10,800
5,000
—
—
5,000
5,000
—
5,000
5,000
3,000
5,000
—
5,000
5,000
3,000
4,000
5,000
—
3,000
3,000
—
—
282,000 296,800

The Simon Gibson Charitable Trust 20

Notes to the accounts 5 April 2021

3 Grants payable (continued)

Grants payable(continued)
Recipients Total
2021
£		 Total
2020
£
Balance brought forward
Ironbridge Gorge Museum Trust
Isabel Hospice
Jumbulance
Juvenile Diabetes Research Foundation
Keep Playing
Kids Cancer Charity
Kingfishers Bridge Nature Reserve
Kingshott School
LAP Research
LEAF
Leonard Cheshire
Lepra
Letchworth Food Bank
Livery Company of Wales Charitable Trust
Living Paintings
Llamau
Llanhilleth Miners Institute
Macmillan Cancer Relief, Newmarket
Macular Society
Maggie's
Magpas Air Ambulance
Making Music Change Lives
Manage Money Wales
Marie Curie Cancer Care
Marine Conservation Society
Medical Detection Dogs Charity
MIND Suffolk
Motor Neurone Disease Society
Multiple System Atrophy Trust
Music in hospitals Cymru
National Ankylosing Spondylitis Society
National Eisteddfod
National Museum of Wales
Neath Port Talbot Contact Centre
Norfork Community Centre
Northwood African Education Foundation
Norwich Theatre
NYAS
Oasis Cardiff
On Course Foundation
Open University
Orangutan Foundation
Orbis UK
Ospreys Wheelchair Rugby Club
Our Special Friends
Oxford Hospital Charity
Panathlon Foundation
Pancreatic Cancer Reserve Fund
Parkinson’s UK
Balance carried forward		 282,000
5,000
5,000
5,000
3,000
—
3,000
—
5,000
5,000
3,000
3,000
3,000
5,000
10,000
—
5,000
2,000
5,000
5,000
5,000
3,000
5,000
—
10,000
5,000
—
3,000
5,000
3,000
3,000
5,000
—
10,000
—
3,000
—
3,000
—
3,000
—
5,000
5,000
5,000
3,000
3,000
5,000
3,000
5,000
5,000		 296,800
—
5,000
5,000
—
3,000
—
10,000
5,000
5,000
—
3,000
5,000
—
20,000
3,000
5,000
—
5,000
5,000
5,000
—
5,000
3,000
5,000
5,000
3,000
3,000
5,000
—
—
5,000
5,000
10,000
2,000
—
5,000
—
3,000
—
3,000
—
5,000
5,000
—
—
5,000
—
5,000
—
459,000 462,800

The Simon Gibson Charitable Trust 21

Notes to the accounts 5 April 2021

3 Grants payable (continued)

Grants payable(continued)
Recipients Total
2021
£		 Total
2020
£
Balance brought forward
PBC Foundation UK
Perthes Association
Peterborough Cathedral
Prader-Willi Syndrome Association
Prisoners’ Education Trust
Prospect Trust
Prostate Cancer Charity
Read for Good
Red Balloon in the Air
Relate Cambridge
Rennie Grove Hospice Care
Rhoose Surf Lifesaving Club
Riding for the Disabled
RNIB
RNLI
RNOH Charity
Rowan
Royal Agricultural Society
Royal British Legion Industries
Royal Welsh Agricultural Society Glamorgan Fund
Royal Welsh College of Music and Drama
Salvation Army
Samaritans Bridgend
Save The Rhino
School Readers
Seafarers UK
Sense
Shelter Cymru
Skillforce
Small Acts of Kindness Trust
Songbird Survival
SPACE
Spinal Research
St Cadoc's Church Llancarfan
St John Ambulance Suffolk
St Martin's Church, Exning
St Mary’s Burwell
Stand By Me
Starlight
Stroke Association
Suffolk Age UK
Suffolk Artlink
Surfers Against Sewage
Techniquest
Teenage Cancer Trust
Tenovus
The Aloud Charity
The Bridge Mentoring Plus Scheme
Balance carried forward		 459,000
3,000
—
—
—
—
—
10,000
3,000
3,000
3,000
3,000
—
5,000
3,000
9,000
5,000
3,000
3,000
5,000
20,000
15,000
5,000
3,000
5,000
—
3,000
5,000
5,000
—
—
—
3,000
3,000
5,000
5,000
5,000
—
5,000
5,000
5,000
3,000
3,000
—
4,000
5,000
5,000
—
3,000		 462,800
—
3,000
5,000
3,000
3,000
5,000
10,000
—
—
—
—
3,000
5,000
—
9,000
—
—
—
—
20,000
15,000
3,000
—
5,000
5,000
3,000
5,000
5,000
5,000
3,000
3,000
—
3,000
5,000
5,000
5,000
2,000
5,000
—
3,000
—
—
5,000
4,000
5,000
20,000
3,000
—
637,000 645,800

The Simon Gibson Charitable Trust 22

Notes to the accounts 5 April 2021

3 Grants payable (continued)

Grants payable(continued)
Recipients Total
2021
£		 Total
2020
£
Balance brought forward
The Broads Trust
The Greenpeace Trust
The Listening Place
The Lullaby Trust
The Prince's Trust
The Racing Centre
The Resume Foundation
The Royal National College for the Blind
The SOFA project
The Walnut Tree Health and Wellbeing
The Wavertree Trust
The Wildlife Trust
Tinplate Workers' Charitable Trust
Tomorrow's Generation School
Traffic International
Ty Hafen Hospice
Ultraponix Wales and West CIC
United Purpose
University of Birmingham
University of Manchester Poverty Access Programme
UWC Atlantic College
UWC Atlantic College Scholarship
Valeways
Versus Arthritis
Viva Arts and Community Group
Wales Millennium Centre
WaterAid
Welsh Guards Lt. Colonel's Fund
Welsh National Opera
West Suffolk Association for the Blind
Whizz Kidz
Wild Aid
Wild Cru
Willow
Wincanton Community
Wintercomfort for the Homeless
Wooden Spoon Society
Y Bwthyn Newydd Bridgend
Young People Taking Action
Young Women’s Trust
Ystradowen Community & Sports Association		 637,000
—
5,000
—
—
—
—
5,000
5,000
3,000
—
—
3,000
5,000
10,000
5,000
10,000
—
5,000
5,000
10,000
4,000
—
3,000
5,000
—
15,000
5,000
5,000
10,000
—
3,000
5,000
5,000
3,000
—
—
5,000
—
3,000
—
4,000		 645,800
3,000
5,000
5,000
3,000
10,000
5,000
—
—
—
3,000
5,000
—
5,000
10,000
5,000
5,000
5,000
—
5,000
10,000
4,000
10,000
3,000
5,000
3,000
15,000
5,000
5,000
10,000
3,000
3,000
5,000
5,000
—
5,000
3,000
5,000
5,000
—
3,000
—
783,000 826,800

The Simon Gibson Charitable Trust 23

Notes to the accounts 5 April 2021

Grants payable(continued)
2021
£		 2021
£		 2020
£		 2020
£
Grant commitments at 6 April 2020
Commitments made in the year
Grants payable for the year
Grants paid during the year
Grant commitments at 5 April 2021		 —
783,000		 783,000
(783,000)		 —
826,800		 826,800
(826,800)
— —
4 Governance costs Total
2021
£		 Total
2020
£
Auditor’s remuneration:
. Statutory audit fees		 5,660 5,520
5,660 5,520

5 Taxation

The Simon Gibson Charitable Trust is a registered charity and therefore is not liable to income tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

6 Investments

nvestments
2021 2020
£ £
Listed investments
Market value at 6 April 2020 16,263,391 18,670,870
Additions at cost 3,506,453 1,545,786
Disposals (proceeds £2,350,184; realised gains £437,889) (1,912,295) (1,031,072)
Net unrealised investment gains (losses) 4,249,280 (2,922,193)
Market value at 5 April 2021 22,106,829 16,263,391
Cash held by investment manager for reinvestment 77,204 383,383
Total investments as at 5 April 2021 22,184,033 16,646,774
Historical cost of listed investments
At 5 April 2021 16,392,502 15,341,527

Listed investments held at 5 April 2021 comprised the following:

2021
£		 2020
£
UK equities
Overseas equities
UK fixed interest
Commodities		 17,383,655
3,483,025
1,240,149
—		 10,822,505
4,321,117
854,068
265,701
22,106,829 16,263,391

The Simon Gibson Charitable Trust 24

Notes to the accounts 5 April 2021

6 Investments (continued)

Investments representing a material proportion of the portfolio investment were :

Investments representing a material proportio n of the po rtfolio invest ment were:
5 April
2021
Market
value
£		 % of
portfolio		 5 April
2020
Market
value
£		 % of
portfolio
GlaxoSmithKlineplc – Ordinary25pence shares 1,277,600 5.8 1,489,400
9.2

7 Debtors

Debtors
2021
£		 2020
£
Accrued income
Share sale proceeds receivable		 17,104
187,500		 16,965
—
204,604 16,965

8 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2021
£		 2020
£
Accruals
. Audit fees
. Non-audit accountancy fees
. Trustee expenses		 5,600
—
190		 5,400
480
396
5,790 6,276

9 Analysis of net assets between funds

Analysis of net assets between funds
Expendable
endowment
fund
£		 Unrestricted
general
fund
£		 Total
funds
2021
£
Investments
Cash at bank
Debtors
Creditors falling due within one year		 22,184,033
351,347
—
—		 —
497,235
204,604
(5,790)		 22,184,033
848,582
204,604
(5,790)
22,535,380 696,049 23,231,429

The Simon Gibson Charitable Trust 25

Notes to the accounts 5 April 2021

9 Analysis of net assets between funds (continued)

Analysis of net assets between funds(conti nued)
Expendable
endowment
fund
£		 Unrestricted
general
fund
£		 Total
funds
2020
£
Investments
Cash at bank
Debtors
Creditors falling due within one year		 16,646,774
322,652
—
—		 —
794,083
16,965
(6,276)		 16,646,774
1,116,735
16,965
(6,276)
16,969,426 804,772 17,774,198

The total unrealised gains as at 5 April 2021 constitute movements on revaluation and are as follows:

as follows:
2021
£		 2020
£
Unrealised gains included above:
On investments
Total unrealised gains at 5 April 2021
Reconciliation of movements in unrealised gains
Unrealised gains at 6 April 2020
In respect to disposals in the year
Net gains (losses) arising on revaluation arising in the year
Total unrealisedgains at 5 April 2021		 5,714,327 921,864
5,714,327 921,864
921,864
543,183		 3,936,391
(92,334)
1,465,047
4,249,280		 3,844,057
(2,922,193)
5,714,327 921,864

10 Related party transactions

During the year, the charity made a grant of £10,000 (2020 – £20,000) to the Worshipful Livery Company of Wales Charitable Trust of which Bryan Marsh was a trustee. The charity made a grant of £20,000 (2020 – £20,000) to The Royal Welsh Agricultural Society of which John Homfray is President-elect for 2022. It also made a grant of £3,000 (2020 – £3,000) to Cowbridge Physic Garden of which John Homfray’s spouse is a trustee. During the year the Trust made a grant of £5,000 (2020 – £5,000) to Kingshott School with which Deborah Connor was in paid employment.

11 Post balance sheet events

Mr Simon Gibson, the settlor of the charity, passed away in May 2021, following the year end. The Trust has been notified that it is a beneficiary of the residual estate, however probate has not been granted at the date of signing these accounts and a final figure, although expected to be significant, is not yet known.

The Simon Gibson Charitable Trust 26

Notes to the accounts 5 April 2021

12 Comparative statement of financial activities – Year ended 5 April 2020

Expendable
endowment
fund
£		 Unrestricted
general
fund
£		 Total
2020
£
Income and endowments from:
Investments
Donations
Total income
Expenditure on:
Charitable activities
. Promoting and enhancing charitable work
Total expenditure
Net income (expenditure) before other
recognised gains and losses
(Losses) on investments
Net (expenditure) / net movement in funds
Balances brought forward
at 6 April 2019
Balances carried forward
at 5 April 2020		 —
500,000		 773,189
—		 773,189
500,000
500,000 773,189 1,273,189
66,505 833,917 900,422
66,505 833,917 900,422
433,495
(2,800,606)		 (60,728)
—		 372,767
(2,800,606)
(2,367,111)
19,336,537
(60,728)
865,500		 (2,427,839)
20,202,037
16,969,426 804,772 17,774,198

The Simon Gibson Charitable Trust 27