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2022-04-05-accounts

Charity Registration No. 274312

THE ALAN AND SHEILA

DIAMOND CHARITABLE TRUST

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2022

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr A Diamond OBE Hon DBA MCSI, Chairman
Mrs S Diamond
Mr J R Kropman LLB, Vice Chairman
Mr J Bennett
Mr N Edmonds
Mrs N Goldman
Charity number 274312
Independent examiner Morris Lane
31/33 Commercial Road
Poole
Dorset
BH14 0HU
Bankers Lloyds Private Banking
21-23 Hill Street
London
England
W1J 5JW
Solicitors Trowers & Hamlins LLP
3 Bunhill Row
London
EC1Y 8YZ
Stockbrokers Redmayne Bentley LLP
9 Bond Court
Leeds
LS1 2JZ

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

CONTENTS

Page
Trustees' report 1 - 5
Independent examiner's report 6 - 7
Statement of financial activities 8
Statement of financial position 9
Notes to the financial statements 10 - 14

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 5 APRIL 2022

The Trustees present their annual report together with the financial statements of The Alan and Sheila Diamond Charitable Trust for the 6 April 2021 to 5 April 2022. The Trustees have adopted the provisions of the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and Charities Act 2011, in preparing the annual report and financial statements.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing documentation, applicable law and the requirements of the SORP.

Objectives and Activities

Policies and objectives

Objects

The object of the charity is to provide benefits for charitable institutions and foundations.

Objectives

The main objective of the Trustees in the year was to maintain the investment income and consider the effect the present financial situation would mean for the charity and to act accordingly.

Strategies for achieving objectives

The levels of investment were maintained well during the year therefore giving no concern to the Trustees on the level of monies donated.

Donation policy

The charity supports public benefit charitable causes within its policies. It does not accept unsolicited applications for donations.

Achievements and performance

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust should undertake.

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

Review of activities

The charitable trust was able to make donations of £140,469 during the year. This total included a number of individual donations of £2,000 or more:

£
Alzheimer's Research UK 2,500
British ORT 2,000
Chai Cancer Care 5,000
Combat Stress 10,000
Community Security Trust 10,000
Fight for Sight 3,000
Heart Cells Foundation 2,000
Holocaust Educational Trust 2,000
Jewish Community Secondary School 2,500
London Early Years Foundation 10,000
Magen David Adom 15,000
Norwood 10,000
Sidney Sussex College 8,600
The Royal Society of Medicine 10,000
The Salvation Army 2,000
United Synagogue 6,000
University College of Osteopathy 10,000
Western Marble Arch Synagogue 4,644
World Jewish Relief 5,000
Youth Aliyah Child Rescue 3,000

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

Financial review

The Statement of Financial Activities for the year is set out on page 8 of the financial statments.

Despite many difficulties, the Financial Times index closed on 5 April 2021 at 6737.3 and subsequently rose during the course of the year to 7613.72. As a consequence, the Trust portfolio has increased in value from £3,172,677 to £3,895,599, an increase of 22.79%. This does not include a cash credit balance of £51,967. In a period of possible stagflation it is clearly prudent to carry forward this credit balance in case companies reduce their future dividend payments.

The gain was enhanced by two factors, Sheila Diamond donated by a transfer of shares valued at £40,316 and Alan Diamond gave £122,380 by a gift of shares to the Trust.

We believe we have entered a period which will see inflation rising to around 9%, interest rates will increase from the current low level and GDP will decline from 6.2% to 2% and corporation tax is set to rise. Against this backdrop, future dividends are unlikely to show much of an increase save for the stocks in defence, oil and gas, metals and mining, bank and pharmaceutical sectors which represent 46% of our portfolio. Never the less, last year the dividend increased from £112,625 to £149,803.

Despite the rapid growth of inflation, our expenses remained in check and as can be seen they were £8,457 (compared with £7,433 last year). This still only represents 5.6% of our income.

We supported 43 good causes of which 20 charities received benefactions of more than £2,000 compared with 15 charities in the previous year.

Investment policy

There are no restrictions on the charity's power to invest. The investment strategy is to invest in UK equities listed on the London Stock Exchange of a low risk nature. Targets are set by the trustees for projecting the dividend income in the year and this is reviewed annually.

The actual dividend income was £149,803 and was within the projections estimated by the trustees. The income was then used to make donations in accordance with the objective of the charity.

Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Reserves policy

It is the policy of the charity to maintain unrestricted funds. All income received in the year is matched with donations made in the year and to cover the management and administration expenses for that period. Any monies not expended are taken to the unrestricted general fund at the year end. Gains and losses arising on investments are taken straight to the unrestricted fund. This in total provides sufficient funds to respond to any emergency expenditure.

Risk management

The Trustees have examined the major risks affecting the charity and have ensured that adequate systems are in place in order to mitigate those risks.

Plans for future periods

The charity plans to continue donating to charitable institutions and foundations using its investment income next year.

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

Structure, governance and management

The Alan and Sheila Diamond Charitable Trust is constituted under a trust deed dated 19 July 1977 which was updated on 7 June 2011 and is a registered charity number 274312.

The trustees who served during the year and up to the date of signature of the financial statements were:

Dr A Diamond OBE Hon DBA MCSI, Chairman

Mrs S Diamond Mr J R Kropman LLB, Vice Chairman Mr J Bennett Mr N Edmonds Mrs N Goldman

The statutory power of appointing new or additional trustees is vested in the Settlors during their lives. The Trust Deed provides a minimum of three trustees, to a maximum of eight trustees.

Organisation structure and decision making

The Trustees consider the board of trustees to comprise the key management personnel of the charity in charge of directing and controlling the charity. All trustees give their time freely and no trustee remuneration nor expenses were paid in the year.

All decisions are made at full Trustee meetings and carried out on a day to day basis by the trustees.

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 5 APRIL 2022

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements 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.

This report was approved by the Trustees and signed on their behalf by:

Dr A Diamond OBE Hon DBA MCSI, Chairman

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

I report to the trustees on my examination of the financial statements of The Alan and Sheila Diamond Charitable Trust (the trust) for the year ended 5 April 2022.

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's Trustees as a body, for my work or for this report.

Responsibilities and basis of report

As the trustees of the trust you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the trust’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

INDEPENDENT EXAMINER'S REPORT (CONTINUED) TO THE TRUSTEES OF THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

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

Roger Morris ACA CTA

Morris Lane Chartered Accountants 31/33 Commercial Road Poole Dorset BH14 0HU

Dated: .........................

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 5 APRIL 2022

Unrestricted Unrestricted
funds funds
2022 2021
Notes £ £
Income from:
Donations and legacies 2 162,696 251,827
Investments 3 149,803 112,625
Total income 312,499 364,452
Expenditure on:
Charitable activities 4 148,926 99,253
Net gains/(losses) on investments 8 567,482 452,384
Net movement in funds 731,055 717,583
Fund balances at 6 April 2021 3,215,190 2,497,607
Fund balances at 5 April 2022 3,946,245 3,215,190

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

STATEMENT OF FINANCIAL POSITION

AS AT 5 APRIL 2022

2022 2022 2021 2021
Notes £ £ £ £
Fixed assets
Investments 9 3,895,599 3,172,677
Current assets
Cash at bank and in hand 51,967 43,834
Current liabilities 10 (1,321) (1,321)
Net current assets 50,646 42,513
Total assets less current liabilities 3,946,245 3,215,190
Income funds
Unrestricted funds 3,946,245 3,215,190
3,946,245 3,215,190

The financial statements were approved by the Trustees on .........................

.............................. .............................. Dr A Diamond OBE Hon DBA MCSI, Chairman Mr J R Kropman LLB, Vice Chairman Trustee Trustee

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

Charity information

The Alan and Sheila Diamond Charitable Trust is a unincorporated charitable trust.

1.1 Accounting convention

The financial statements have been prepared in accordance with the the trust's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The trust is a Public Benefit Entity as defined by FRS 102.

The trust has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the trust.

1.4 Income

Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the trust has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated to each of fundraising and Charitable Activities on a basis consistent with the use of the resources.

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

All resources expended are inclusive of irrecoverable VAT

1.6 Non-current investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

Cash and cash equivalents include 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.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

2 Donations and legacies

Unrestricted Unrestricted Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 162,696 251,827
3 Investments
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Income from listed investments 149,803 112,625
4 Charitable activities
2022 2021
£ £
Donations 140,469 91,820
Share of support costs (see note 5) 7,136 6,112
Share of governance costs (see note 5) 1,321 1,321
148,926 99,253
Analysis by fund
Unrestricted funds 148,926
148,926
For the year ended 5 April 2021
Unrestricted funds 99,253
99,253

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

5 Support costs

Support costs
Support
Governance		 2022 2021
costs costs
£ £ £ £
Computer running costs 1,296 - 1,296 1,418
Telephone 500 - 500 465
Sundry expenses 1,550 - 1,550 1,481
Bookkeeping 3,790 - 3,790 2,748
Independent examiners fees - 1,321 1,321 1,321
7,136 1,321 8,457 7,433
Analysed between
Charitable activities 7,136 1,321 8,457 7,433

Governance costs includes payments to the auditors of £1,321 (2021- £1,321) for audit fees.

6 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the the trust during the year.

7 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Total - -
8 Net gains/(losses) on investments
Unrestricted Total
funds
2022 2021
£ £
Revaluation of investments 530,753 451,972
Gain on sale of investments 36,729 412
567,482 452,384

THE ALAN AND SHEILA DIAMOND CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

9 Fixed asset investments

Investments Investments
£
Cost or valuation
At 6 April 2021 3,172,677
Additions 357,586
Valuation changes 530,753
Disposals (165,417)
At 5 April 2022 3,895,599
Carrying amount
At 05 April 2022 3,895,599
At 05 April 2021 3,172,677
10 Current liabilities
2022 2021
£ £
Accruals and deferred income 1,321 1,321
11 Related party transactions

There were no disclosable related party transactions during the year (2021 - none).