2023-12-31-accounts

INVERFORTH CHARITABLE TRUST

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2023

Registered Charity Number 274132

INVERFORTH CHARITABLE TRUST

I N D E X

Year ended 31 December 2023

	Page
Trustees’ report	2
Independent Examiner’s report	5
Statement of financial activities	6
Balance sheet	7
Notes to the financial statements	8

1

INVERFORTH CHARITABLE TRUST

T R U S T E E S ’ R E P O R T

Year ended 31 December 2023

The Trustees present their Report and the Financial Statements for The Inverforth Charitable Trust (ICT) for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 below and comply with the Charity’s Trust Deed, the Charities Act 2011 and the Statement of Recommended Practice “Accounting and reporting Charities” preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (SORP FRS 102) (effective 1 January 2019).

Structure, governance and management

The Trust is a grant-making charity, constituted under a Trust Deed dated 14 July 1977, and is a registered charity number 274132. The Trust was established by an initial gift by the second Lord Inverforth of 10% of the Inverforth family company, Andrew Weir & Company Limited, for general charitable purposes within the absolute discretion of the Trustees. Substantial dividends paid around 1990 and their accompanying tax credits were capitalised and invested in a portfolio of quoted shares: subsequent events have raised the shareholding in Andrew Weir & Company Limited to 15%.

The Trustees who have served during the year and since the year end are set out on page 3. The power of appointing new Trustees lies with the present Trustees, in accordance with the original Trust Deed and section s.36(1) of the Trustee Act 1925.

The Hon Mrs Clarinda Kane acted as Secretary and Treasurer for 2023. The administration of grants and of legal and other matters is carried out by her. The books of the Trust are kept by the accountants.

Risk management

The Trustees consider that the principal risk facing the Trust continues to be the variability of investment returns from the Trust’s investments, including dividends paid by Andrew Weir & Company Limited. The Trustees have examined the major strategic, business and operational risks which the Trust faces and confirm that appropriate measures have been taken to protect it from them as far as possible.

Objectives and activities

The Trust makes charitable donations within the absolute discretion of the Trustees, as laid down by the Trust Deed. The Trustees selected thirteen charities in 2023 (2022 - twenty) for donations.

Achievements and performance

The Trust made donations of £160,000 in 2023 (2022 - £197,000). Grants made can be categorised as follows:

	2023	2023	2022	2022
	%	No. of grants	%	No. of grants
Military	-	-	5	1
Physical and Mental Health	19	3	33	5
Heritage and Restoration	6	1	-	-
Hospices	16	2	10	2
Youth and Education	12	2	18	5
Arts	6	1	6	2
Community	41	4	28	5
		13		20

Only registered charities received donations.

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INVERFORTH CHARITABLE TRUST

T R U S T E E S ’ R E P O R T ( c o n t ’ d )

Year ended 31 December 2023

Financial review and investment policy

The Trustees report a net income deficit of £126,687 in 2023 (2022 - £136,608) after receiving income from investments and bank interest of £37,300 (2022 - £64,207) and making net donations and incurring administration costs of £163,987 (2022 - £200,815). After net realised and unrealised gains on investment assets, the net increase in funds was £7,774,350 (2022 – net gain £2,063,981) resulting in total Trust funds of £17,348,390 (2022 - £9,574,040). The value of the unlisted investments represents the Trust’s share of net assets in Andrew Weir & Company Limited at 31 December 2023.

The investment portfolio is actively managed by the Investment Advisers. A diverse mix of assets is maintained in order to protect the charity funds against current market conditions and company specific risks.

The Trust continues to take a long view and its assets are primarily invested in securities.

Reserves policy

The Trust has power to distribute capital and income. In the past, the Trustees have made full distributions of income together with part of the capital appreciation. For the future, the Trustees will distribute the estimated net annual income to the selected charities, after expenses. Capital is defined as the fixed asset investments and cash held by the investment managers less current liabilities.

Public benefit

The Trustees having regard to the public benefit guidance published by the Charity Commission in accordance with section 17 of the Charities Act 2011, consider that the purpose and activities of the charity satisfy the requirements of the public benefit test set out in section 4 of the same act.

Reference and administrative details

Trustees:

The Rt. Hon Elizabeth Lady Inverforth The Rt. Hon Andrew Lord Inverforth The Hon Mrs Clarinda Kane

Secretary and Treasurer: The Hon Mrs Clarinda Kane Registered office of the Charity: 58a Flood Street London SW3 5TE Bankers: Ruffer LLP 80 Victoria Street London SW1E 5JL

Coutts & Co 440 Strand London WC2R 0QS

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INVERFORTH CHARITABLE TRUST

T R U S T E E S ’ R E P O R T ( c o n t ’ d )

Year ended 31 December 2023

Reference and administrative details (continued)

Independent Examiner: G P Smye-Rumsby FCA Dixon Wilson 22 Chancery Lane London WC2A 1LS Investment Advisers: Ruffer LLP 80 Victoria Street London SW1E 5JL Solicitors: Charles Russell Speechlys LLP 5 Fleet Place London EC4M 7RD

Approved and signed on behalf of the board of Trustees on 2024.

THE HON MRS CLARINDA KANE Trustee, Secretary and Treasurer

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INVERFORTH CHARITABLE TRUST

I N D E P E N D E N T E X A M I N E R ’ S R E P O R T

Year ended 31 December 2023

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE INVERFORTH CHARITABLE TRUST

I report on the accounts of the charity for the year ended 31 December 2023.

Responsibilities and basis of report

As the charity Trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). You are satisfied that an audit is not required for this year under charity law and that an independent examination is needed.

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. Dixon Wilson, a firm of Chartered Accountants of which I am a partner has provided bookkeeping services to the Trust and I have applied the FRC’s Revised Ethical Standard in carrying out my examination.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

G P SMYE-RUMSBY FCA Dixon Wilson Chartered Accountants 22 Chancery Lane London WC2A 1LS

2024

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INVERFORTH CHARITABLE TRUST

S T A T E M E N T O F F I N A N C I A L A C T I V I T I E S

Year ended 31 December 2023

Unrestricted Expendable income endowment Note fund fund £ £ Income and endowments from: Investment income: Income from listed investments 2 31,063 - Interest income 3 6,237 - Total income and endowments 37,300 - Expenditure on: Charitable activities: Grants made 4 (160,000) - Governance costs 5 (3,987) - Total expenditure (163,987) - Net gain / (loss) on investments 6 - 7,899,205 Foreign Currency Gains 6 - 1,832 Net (expenditure)/income (126,687) 7,901,037 Transfers between funds 126,687 (126,687) Net movement in funds - 7,774,350 Reconciliation of funds Fund balance brought forward at 1 January 2023 - 9,574,040 9,574,040 Fund balance carried forward at 31 December 2023 (page 7) - 17,348,390	2023 £ 31,063 6,237 37,300 (160,000) (3,987) (163,987) 7,899,205 1,832 7,774,350 - 7,774,350 7,510,059 17,348,390	2022 £ 63,336 871 64,207 (197,000) (3,815) (200,815) 2,193,503 7,086 2,063,981 - 2,063,981 9,574,040

The notes on pages 8 to 12 form part of these financial statements.

All amounts are attributable to continuing operations.

The Charity has no recognised gains and losses other than as stated above.

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INVERFORTH CHARITABLE TRUST

B A L A N C E S H E E T

At 31 December 2023

Note Fixed assets Investments 6 Current assets Cash at bank and in hand Current liabilities Creditors: amounts falling due within one year 7 Net current assets Total net assets The funds of the Trust Expendable endowment fund (page 6) 8 Total Trust funds	2023 £ 16,874,253 477,739 (3,602) 474,137 17,348,390 17,348,390 17,348,390	2022 £ 9,256,107 321,243 (3,310) 317,933 9,574,040 9,574,040 9,574,040

The financial statements on pages 6 to 12 were approved by the Trustees on 2024 and were signed on their behalf by:

THE RT HON ELIZABETH LADY INVERFORTH Member of the Board of Trustees

THE RT HON ANDREW LORD INVERFORTH Member of the Board of Trustees

THE HON MRS CLARINDA KANE Member of the Board of Trustees

The notes on pages 8 to 12 form part of these financial statements.

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INVERFORTH CHARITABLE TRUST

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 December 2023

1. Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with applicable accounting standards, the Statement of Recommended Practice “Accounting and reporting Charities” in preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (SORP FRS 102) (effective 1 January 2019) and the Charities Act 2011. The particular accounting policies adopted are described below.

The Trust constitutes a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The financial statements are presented in Sterling which is the financial currency of the Trust and rounded to the nearest £.

Accounting convention

The financial statements are prepared under the historical cost convention, as modified by the revaluation of investments to market value.

Cash flow

The financial statements do not include a cash flow statement because the Trust, as a small reporting entity, is exempt from the requirement to prepare such a statement under FRS 102.

Income

Investment income is credited to the Income account when receivable. Dividends are recognised where the Trustees are entitled to receive payment. Investment gains and losses include any realised or unrealised gains or losses on the sale of investments and any gain or loss resulting from revaluing investments to market value at the year end.

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by FRS 102 or SORP FRS 102.

Expenditure and liabilities

Liabilities are recognised as soon as there is a legal or constructive obligation committing the Trust to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis, and is inclusive of irrecoverable VAT.

Grants payable

All grants are decided with reference to the Trust’s policy at an annual meeting of the Trustees and are included in the period in which the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled.

Direct charitable expenditure

Direct charitable expenditure includes all expenditure incurred in pursuance of the Trust’s objective and relate to grants made under the Trust’s criteria.

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N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

INVERFORTH CHARITABLE TRUST

Year ended 31 December 2023

1. Accounting policies (continued)

Governance costs

All expenditure incurred in respect of governance is included under that heading in the Statement of Financial Activities.

Foreign currency translation

Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Assets and liabilities denominated in currencies other than sterling are translated at the rate of exchange ruling at the balance sheet date.

Fund accounting policy

The Trust comprises of an unrestricted income fund and an expendable endowment fund. Unrestricted funds are general funds that are available for use at the Trustees’ discretion in furtherance of the objectives of the Trust. Expendable endowment funds are capital funds that are held to facilitate the maintenance and growth of the Trust and may be freely converted into spendable income as the Trustees see fit.

Assets

Fixed asset investments in quoted shares, traded bonds and similar investments are initially recognised at transaction price and subsequently measured at fair value.

Unlisted investments are included at the Trustees’ best estimate of market value, based on a share of the underlying net assets of the unlisted company.

2. Income from listed investments

Unrestricted Expendable income endowment fund fund £ £ Dividends received 19,960 - Fixed interest received 11,103 - 31,063 -	Unrestricted Expendable Total income endowment 2023 fund fund £ £ £ 19,960 29,846 - 11,103 33,490 - 31,063 63,336 -	Total 2022 £ 29,846 33,490
		63,336

3. Interest income

	Unrestricted	Expendable		Unrestricted	Expendable
	income	endowment	Total	income	endowment	Total
	fund	fund	2023	fund	fund	2022
	£	£	£	£	£	£
Interest income	6,237	-	6,237	871	-	871

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INVERFORTH CHARITABLE TRUST

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 December 2023

4. Grants made

The Trust undertakes its charitable activities through grant making and awards grants to institutions in furtherance of its charitable objectives.

charitable objectives.
Unrestricted Expendable Unrestricted Expendable income endowment Total income endowment fund fund 2023 fund fund £ £ £ £ £ Grants made 160,000 - 160,000 197,000 - 2023 £ Allegra’s Ambition 10,000 Art Fund 10,000 Asthma and Lung UK 10,000 British Red Cross - Carers UK 10,000 Childhood First 10,000 EmbraceMe Foundation - Essex Community Foundation - Friends of the Royal Marsden Chelsea 10,000 Help the Homeless - Heritage Housing Caring Group 5,000 Historic Royal Palaces 10,000 Hospice UK 10,000 Imperial College - Living Paintings - NSPCC West Norfolk - Royal Trinity Hospice 15,000 St Minver Community Hub 40,000 St Mungo’s 10,000 Supporting Wounded Veterans - The Honeypot Children’s Charity - Wellbeing of Women 10,000 Whitechapel Mission - 160,000	Total 2022 £ 197,000 2022 £ 10,000 10,000 10,000 20,000 - 10,000 15,000 10,000 10,000 10,000 - - 10,000 5,000 1,000 5,000 10,000 20,000 10,000 10,000 6,000 10,000 5,000
		2022 £ 10,000 10,000 10,000 20,000 - 10,000 15,000 10,000 10,000 10,000 - - 10,000 5,000 1,000 5,000 10,000 20,000 10,000 10,000 6,000 10,000 5,000
	197,000

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INVERFORTH CHARITABLE TRUST

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 December 2023

5. Governance costs Unrestricted Expendable income endowment fund fund £ £ Accountancy fees 3,601 - Banking fees and Charges 386 - 3,987 -	Unrestricted Expendable Total income endowment 2023 fund fund £ £ £ 3,601 3,310 - 386 505 - 3,987 3,815 -	Total 2022 £ 3,310 505
		3,815

Accountancy fees payable to the independent examiner's firm as follows:

- Examination - Accountancy	2023 £ 1,000 2,601 3,601	2022 £ 1,000 2,310 3,310

6. Investments Unlisted £ At 1 January 2023 4,915,050 Additions at cost - Disposal proceeds - Net realised and unrealised gains 8,212,350 Market value at 31 December 2023 13,127,400 Historical cost at 31 December 2023 1,456,385 The investments listed on a recognised stock exchange are analysed UK fixed interest and index linked UK equities and unit trusts Overseas fixed interest Overseas equities and unit trusts Other listed investments Credit and illiquid strategies	Listed £ 4,341,057 3,023,958 (3,305,017) (313,145) 3,746,853 3,809,462 as follows:	2023 £ 9,256,107 3,023,958 (3,305,017) 7,899,205 16,874,253 5,265,847 2023 £ 587,661 186,083 1,430,360 412,486 851,860 278,403 3,746,853	2022 £ 7,310,471 3,548,104 (3,795,971) 2,193,503 9,256,107 5,346,396 2022 £ 971,103 138,162 1,344,268 347,911 1,092,234 447,379 4,341,057

Additionally, £215,272 (2022 - £181,253) of cash is held within the investment portfolio and classified within current assets.

Foreign currency gains of £1,832 (2022 - £7,086) arose on foreign currency cash balances and cash transactions held in the investment portfolio.

Unlisted investments relate solely to 300,000 Andrew Weir & Company Limited £1 ordinary shares, which had an acquisition cost of £1,456,385. The market value of £13,127,400 represents the share of net assets of the group at 31 December 2023 (£4,915,050 at 31 December 2022).

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INVERFORTH CHARITABLE TRUST

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 31 December 2023

7. Creditors: amounts falling due within one year Professional fees in relation to governance costs and other accountancy work	2023 £ 3,602	2022 £ 3,310

8. Analysis of total net assets between funds Unrestricted Expendable income endowment fund fund £ £ Fixed assets Investments - 16,874,253 Current assets Cash at bank 3,602 474,137 Current liabilities Creditors: amounts falling due within one year (3,602) - - 17,348,390	Total 2023 £ 16,874,253 477,739 (3,602) 17,348,390

9. Unrestricted funds

Expendable endowment fund Unrestricted income fund	Funds Transfers brought Incoming Outgoing Net gain/(loss) between forward resources resources on investments funds £ £ £ £ £ 9,574,040 1,832 - 7,899,205 (126,687) - 37,300 (163,987) - 126,687 9,574,040 39,132 (163,987) 7,899,205 -	Funds carried forward £ 17,348,390 -
		17,348,390

10. Trustees’ remuneration and expenses

The Trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind.

11. Employees

The Trust did not have any employees during the period (2022 – nil).

12.	Financial instruments	2023	2022
		£	£
Financial assets measured at fair value through income and expenditure		16,874,253	9,256,107

Financial assets measured at fair value through income and expenditure comprise fixed asset investments.

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