Annual Report and Financial Accounts 5 April 2022
Registered Charity Number 287077
5 Wilton Road, London, SW1V 1AP
Contents
| 1. Reference and Administrative | page 1 |
|---|---|
| 2. The Report of the Trustees | page 2 |
| 3. Statement of Financial Activities | page 13 |
| 4. Balance Sheet | page 14 |
| 5. Statement of Cash Flows | page 15 |
| 6. Notes to the Accounts | page 16 |
| 7. Statement of Trustees’ Responsibilities | page 23 |
| 8. Independent Auditor’s Report | page 24 |
Reference and Administrative
The charity (No 287077) was established and became a registered charity under a Trust Deed dated 5 May 1983.
| Trustees Registered Office Principal Officers Bankers Solicitors Auditor Investment Advisers |
Lord Sainsbury of Preston Candover KG * (died 14 January 2022) Lady Sainsbury CBE James Barnard * & Richard Butler Adams (Chair)* Sarah Butler-Sloss Julian Sainsbury Mark Sainsbury * & * Investment Committee Social Impact Investing Committee 5 Wilton Road London SW1V 1AP Stuart Hobley Karen Everett Director, The Linbury Trust Chief Executive Officer, Sainsbury Family Charitable Trusts Royal Bank of Scotland 119 - 121 Victoria Street London SW1E 6RA Farrer & Co 66 Lincoln’s Inn Fields London WC2A 3LH Sayer Vincent LLP Invicta House 108 - 114 Golden Lane London EC1Y 0TL Cazenove Capital Management 12 Moorgate London EC2R 6DA Troy Asset Managers Limited 44 Davies Street London W1K 5JA Windmill Hill Asset Management Limited Waddesdon Buckinghamshire HP18 0JZ |
|---|---|
The Linbury Trust Annual report and Financial Accounts, 5 April 2022
The Report of the Trustees
The trustees present their report and the audited financial statements for the year ended 5 April 2022.
Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Trust deed, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
The Linbury Trust is one of the Sainsbury Family Charitable Trusts which share a common administration but are otherwise independent of each other.
Each of the current Trustees has extensive experience of trusteeship generally and of the charity sector more specifically.
Trustees are aware of the Charity Commission's guidance on Charities and Public Benefit.
The Trustees have given due regard to the Charity Commission’s guidance on public benefit when reviewing the Trust’s aims and objectives, setting grant making policy and in planning future activities.
In this annual report they provide information about the Trust's aims, and about its activities and achievements in the many areas of interest that the Trust supports. They consider that this information demonstrates the benefits to the Trust’s beneficiaries, and through them to the public, that arise from carrying out those aims.
Trustees are aware of the Charity Governance Code which sets out the principles and recommended practice for good governance within the sector. The Trust has reviewed its governance arrangements against the principles within the code and believes that it is compliant with the code whilst maintaining its need to operate its governance efficiently.
The section below headed ‘Review of the Past Year’ (p 6-12) provides an overview of the Trustees’ actions during the year in each of the grant-making categories listed below and, selectively, gives a flavour of the valuable work undertaken by our beneficiaries.
The year in context
COVID19 continues to have a significant impact on the sectors and organisations the Trust supports.
COVID19 has been a focus for funding; this included emergency support to organisations who faced a stark increase in project costs allowing work to complete, to core funding to help charitable groups continue to do what they do best, as well as helping a number of organisations adapt and improve their digital infrastructure.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
The Trust has continued to take a flexible and responsive approach to help those organizations the Trust funds, including movement around reporting and payment dates, as well as support for adapting project activity (such as moving in-person activity to online).
To increase the impact of our work, the Trust has been working in partnership with other organisations. The Trust contributed to the Live Work Fund, developed by Jerwood Arts and supported by Esmée Fairbairn Foundation, and Wolfson Foundation to support 33 talented artists and creative professionals to continue their practice during the pandemic.
The Trust has also begun an effective partnership with Theatres Trust; together running a small grants programme. These focused and targeted grants help local theatres adapt to become more resilient and accessible for a wider range of people with interventions such as essential repairs, improved access for disabled people, and upgrades to digital infrastructure.
The Trust’s Grant Funding
The total value of new grants awarded in 2022 was £8,207,045 (2021: £4,514,818)
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TOTAL VALUE OF AWARDS BY CATEGORY 2021/22
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Small Grants
£99,565
Social Welfare COVID'19
£2,125,508 £2,370,000
Overseas &
Emergency
Relief
£83,972
Older People
£662,000
Culture
£1,188,000
Environment
£680,000
Education/ Young People
£998,000
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
The total value of grants paid in 2022 was £6,529,667 (2021: £8,780,970)
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GRANTS PAID 2021/22
Small Grants Medical
Social Welfare £117,706 £50,000
COVID'19
Overseas & £877,854
£1,465,000
Emergency Relief
£219,985
Older People
£334,000
Environment
£566,000
Education/ Young People
£523,635 Culture
£2,375,486
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Grant making policy
The Trustees take a proactive approach towards grant-making and unsolicited applications are not usually accepted. Through partnership work and research, staff and Trustees identify organisations they want to work with.
The Trustees’ practice is to give grants only for work which they believe will be meaningful, may reduce inequality, have impact and be value for money. Decisions are taken by the Trustees four times a year, and day to day management is delegated to the Principal Officers.
All staff and Trustees are expected to support the work of the Trust with the highest integrity. A conflict of interest may arise when a Trustee’s interest relates to a charity applying for support. Conflicts are declared, noted in the minutes and the individual concerned is not part of any decision-making discussion. Details of any related party transactions are disclosed in note 12 of the financial statements.
Risk assessment
The Trustees have examined the major strategic, business and operational risks to which the Trust may be exposed. Through the joint office of the Sainsbury Family Charitable Trusts (SFCT), adequate systems are in place to meet such potential risks as the Trustees have identified. The Trustees continue to keep processes under review.
The Trustees have identified the uncertainty of financial returns as the charity’s principal financial risk. This risk is mitigated through the appointment of three
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
experienced investment management firms, and by the diversification of the portfolio referred to in the following section.
The COVID19 pandemic has not adversely affected the Trust’s viability and the Trust continues to focus on supporting applicants through this crisis.
Another possible risk is misuse of funds by a grant beneficiary. The Trustees mitigate this risk by normally restricting grants to charities that are registered with the Charity Commission for England and Wales, and for work with a charitable, voluntary and community focus, where the applicant may be exempt from registration. Grants are made only after a thorough assessment and are regularly monitored.
Reserves policy and going concern
The Trustees approve grants for payment over one or more years. These are brought into the accounts where there is a commitment to pay. The Trustees meet these commitments out of income, and where there is insufficient income, they do so from expendable endowment. Accordingly, Trustees take the view that all available funds should be seen as one; they have therefore adopted a Statement of Financial Activities that merges all resources. The Trustees are not aware of any material uncertainties that would prevent the financial statements from being prepared on a going concern basis.
It is the policy of the Trustees to ensure that there are sufficient resources to meet commitments as they fall due. The Trustees are satisfied that the totality and composition of the Trust’s resources are sufficient for this purpose. The Trust and its Trustees are fully aware of the requirements and the duties set out in the Charities (Protection and Social Investment) Act 2016. The Trust does not undertake fundraising from the general public and does not use professional fundraisers or commercial participators.
The income of the Trust is not bound by any regulatory scheme, and the Trust does not consider it necessary to comply with any voluntary code of practice relating to fundraising. The Trustees do not approach individuals for the purpose of raising funds, Trustees do not have specific requirements related to fundraising activities, nor do Trustees consider it necessary to design specific procedures to monitor such activities.
As shown on page 13 at the year end the total funds of the Trust consisted of Expendable Endowment of £143.6m (2021: £138.8m).
Investment powers, policy and performance
The Trust Deed empowers the Trustees to appoint investment advisers, who are given discretion to invest the funds of the Trust within guidelines established by the Trustees.
The Trustees’ investment policy is to maximise funds available for grant-making while preserving the real value of the endowment over the medium term.
The Trust’s endowment continues to be invested in stock markets. The Trustees are committed to being socially and environmentally responsible investors and
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incorporate, promote and advocate environmental, social and governance (ESG) issues into the management of their investment assets. In doing so, the Trust requires its investment managers to fully integrate ESG considerations into their investment process, to comply with the Trust’s ethical investment policy and to engage actively on ESG issues with investee companies.
The investment committee of Trustees regularly meets the Trust’s investment advisers to discuss strategy and to review performance. The consolidated return across the portfolio was 6.9% (2020/21:20.8%) which is slightly above the benchmark (ARK GBP Steady Growth) of 6.8% (2020/21: 24.5%)
Social Impact Investing
The Trust has also begun to develop its approach to social impact investing; this approach is impact led and fits within the Trust’s existing areas of focus. A subcommittee, with dedicated terms of reference are taking this work forward. The Trust’s first investment commitment has been made to the LSP Dementia Fund which works with a range of programmes to address the growing global rates of dementia including therapies for managing and mitigating symptoms and measures for diagnosing dementia earlier. The first capital call by the fund was in June 2022.
Review of the past year
The Trust's total income for the year, including donations, was £4.3m (2020/21: £4.4m).
In 2021/22 the Trustees paid grants totalling £6.5m (2020/21: £8.8m); they approved 95 grants (2020/21: 86) amounting to a total value of £8.2m (2020/21: £4.5m). Many of the grants that Trustees approve are awarded on a conditional basis, and may be payable over several years; accordingly such grants do not appear in full in the Statement of Financial Activities in the year in which they are awarded. Trustees regard the level of grants actually paid during the year as a more helpful measure of grant-making activity and have used this measure of their activity within this Trustees’ Report. They anticipate that the nature of grant-making of recent years will be maintained for the foreseeable future.
As a proportion of grants paid, costs of administration were 10.1% (2021: 8.4%).
The following sections describe the Trust’s activities in each of the major categories of grants, including categories where payments have been made but no new grants have been awarded. Trustees believe that the readers of this report will find a representative list of the larger grants actually paid during the year to be helpful; these are itemised in the following pages.
COVID19
During the year, Trustees were keen to support organisations whose work had been impacted by the pandemic. Funded work included core costs, emergency support and help to improve digital provision.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
Grant paid in year: £1,465,000.
| Courtauld Institute of Art |
£50,000 |
|---|---|
| Towards costs of a new Commercial Director; first payment of a | |
| £100,000 grant. | |
| Dementia UK |
£50,000 |
| Towards the helpline, which came under substantive pressure during the | |
| pandemic. Final payment of a £100,000 grant. | |
| Grange Festival | £50,000 |
| Towards costs for additional cameras, digital infrastructure and | |
| editing equipment to improve post-COVID resilience. | |
| Royal Opera House Covent Garden Foundation |
£1,000,000 |
| Towards the operating costs of the Linbury Theatre and post-COVID | |
| Recovery work. The first payment of a £2m grant. | |
| Royal West of England Academy | £50,000 |
| Towards structural repairs and COVID-related cost increases. | |
| Westminster Abbey | £50,000 |
| Towards support the work of the learning and outreach team. | |
| World Heart Beat Music Academy | £50,000 |
| Towards funding gap for capital programme / COVID cost increases. | |
| Young Minds | £50,000 |
| Towards supporting young people whose mental health has been | |
| impacted by the pandemic. |
4 projects received grant payments of less than £50k totalling £115,000. A total of £2,370,000 was awarded in newly approved grants.
Culture
The Linbury Trust is a major supporter of excellence, access, and community engagement of culture; this includes visual arts, dance, historic buildings, museums, and theatre. Funding ranges from small grants to support dance and choreography, multi-year funding to support community involvement and access to culture, to occasional major capital projects.
Grant payments paid in year: £2,375,486.
Art Fund - National Art Collections Fund £250,000 Towards the acquisition of Prospect Cottage.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
Chineke! Foundation
| Chineke! Foundation | £50,000 | ||||
| To cover core costs as well as the | annual summer residency for | ||||
| young people. The second payment of a three year £150,000 grant. | |||||
| DDmix (Diversity Dance Mix) | £50,000 | ||||
| Towards the DDmix programme to schools across the UK. | |||||
| The first payment of a £150,000 grant over three years. | |||||
| Gainsborough's House | £100,000 | ||||
| Towards the major redevelopment | ‘Reviving an Artist’s Birthplace’. | ||||
| Holburne Museum of Art | £200,000 | ||||
| The first payment of £1m grant towards the endowment programme. | |||||
| Linbury Prize 2021 | £56,622 | ||||
| Towards the Linbury Prize in 2021 | |||||
| Museum of East Anglian Life | £52,000 | ||||
| Towards the Museum’s outreach programme. | |||||
| Rambert Dance Company | £100,000 | ||||
| Supporting the Company to develop and embed | greater digital delivery | ||||
| in their ballet productions in 2021 and 2022. | |||||
| Reading Repertory Theatre | £50,000 | ||||
| Engage Reborn and outreach programme. | |||||
| Royal Academy of Dance | £125,000 | ||||
| Towards the landmark project to relocate the Royal Academy of | Dance to a | ||||
| significantly larger site; second payment of £250,000 grant. | |||||
| Royal West of England Academy | £100,000 | ||||
| Towards the planned refurbishment of the two principal | galleries. | ||||
| Sir John Soane's Museum Society | £50,000 | ||||
| A one-off grant of £50,000 to fully restore Soane’s drawing office. | |||||
| Stowe House Preservation Trust | £125,000 | ||||
| Towards the conservation and restoration of the | State Dining Room, Temple | ||||
| Room and Servery at Stowe House. Final payment of a | £250,000 grant. | ||||
| Tate Britain | £70,000 | ||||
| Towards a fixed-term position of assistant curator, in connection with the | |||||
| re-display of Tate Britain’s permanent collection. | |||||
| Theatres Trust | £100,000 | ||||
| Towards the small grants programme. | |||||
| The Sainsbury Archive | £50,000 | ||||
| Towards core operating costs; second payment of a five year £250k grant. |
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
University of Oxford - Ashmolean Museum
£312,506
Final payment of a £5m grant towards the Museum's endowment fund.
World Heart Beat Music Academy
£50,000
Towards the capital redevelopment of education spaces of the new WHBMA building at Embassy Gardens.
25 projects received grant payments of less than £50k totalling £484,358. A total of £1,188,000 was awarded in newly approved grants .
Education and Young People
The Trust has a layered approach to supporting young people and their education and aspirations. This can include scholarships and bursaries, to the development of programmes that will foster curiosity, to improving life opportunity and choices, especially for young people living in poverty.
Grant payments paid in year: £523,635
Local Solutions
£75,000
For their work supporting young people at risk of criminal exploitation. The second payment of a £150,000 grant.
Royal Drawing School
£50,000
To support the expansion of the School’s digital work, enabling them to reach a wider range of students.
University of Winchester
University of Winchester £80,000 Towards the First Stars Scholars programme, which works with young people in care and supporting educational attainment. The second payment of a four year £300,000 grant.
12 projects received grant payments of less than £50k totalling £318,635. A total of £998,000 was awarded in newly approved grants.
Environment
The Trust continues its support for the environment, including work which helps to better connect people with nature, how the natural world can contribute to meaningful changes in wellbeing, and to understand the impact of climate change.
Grant payments paid in year: £566,000
Ashden Climate Solutions
£170,000
Towards core support to help underpin their strategic development. First payment of a £510,000 grant.
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| Chiswick House and Gardens Trust | Chiswick House and Gardens Trust | Chiswick House and Gardens Trust | £60,000 |
|---|---|---|---|
| Towards the horticulture and gardening participation programme, working with | |||
| local people experiencing disadvantage, First payment of a £180,000 grant. | |||
| Green Light Trust | £50,000 | ||
| To expand their work | beyond | Suffolk, into Essex and Norfolk and to support | |
| their wellbeing programmes, and work with diverse communities. | |||
| Innovation for Agriculture (IfA) | £60,000 | ||
| Towards the enhancement of | IfA’s communications capability, final | ||
| payment of a £180,000 grant. | |||
| Smith School of Enterprise | and the Environment | £88,000 | |
| Towards two scholarships in the new MSc, Sustainability, Enterprise | |||
| and the Environment. |
6 projects received grant payments of less than £50k totalling £138,000. A total of £680,000 was awarded in newly approved grants under this category.
Medical
The Trust supports a small number of projects that may assist in the support and research of life-limiting conditions.
Grant payments paid in year: £50,000
Motor Neurone Disease Association - Northampton £50,000
Towards the AMBRoSIA research project into better diagnosis of Motor Neurone Disease. Final payment of a £200,000 grant.
No new awards relating to medical research were supported this year.
Older People
The Trust looks to fund projects that support older people, especially those that reduce isolation, foster intergenerational work, and schemes that improve wellbeing and social engagement.
Grant payments made in year: £334,000
Fitzwilliam Museum, Cambridge
£50,000
Towards the Ageing Well project, improving the wellbeing of isolated and vulnerable older through engagement with museum collections. First payment of a £100,000 grant.
Orchestra Of The Swan £50,000
To expand the programme of activity for sufferers of dementia. Final payment of a £100,000 grant.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
St Michael's Hospice – Basingstoke £62,000
Towards the work of St Michael’s Hospice, and the forthcoming Community Services Project, supporting older people with end-of-life care. First payment of a £162,000 grant.
Seven projects received grant payments of less than £50k totalling £172,000. A total of £662,000 was awarded in newly approved grants.
Overseas & Emergency Relief
Trustees’ primary continuing interest in this category remains in supporting organisations that work in the Caribbean, and to provide emergency funding.
Grant payments made in year: £219,985
Government House, Antigua
£91,013
Towards the restoration of the Government House, final payment of a £185,000 grant.
Refugee Council
£50,000
Towards the Refugee Emergency Appeal, which does support refugees, including those from Ukraine.
Four projects received grant payments of less than £50k totalling £78,972. A total of £83,972 was awarded in newly approved grants.
Social Welfare
Through our Social Welfare category, the Trust aims to address issues of inequality, poverty and tackle disadvantage; we also seek to support those organisations looking to achieve positive and lasting change. This includes work around mental health, homelessness as well as refugees and asylum seekers.
Grant payments made in year: £877,854
Cardboard Citizens
£100,000
Towards their programme of outreach and engagement working with, and raising awareness of, homeless people. First payment of a £200,000 grant.
Clement James Centre £50,000
To support the Centre’s Employment Programme, working with local people experiencing disadvantage, unemployment, and the bespoke pathways back into employment. First payment of a £150,000 grant.
Crisis £60,000 Towards a programme designed to support people coming out of prison, and preventing subsequent homelessness. First payment of a £120,000 grant.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
Gingerbread £50,000
Core support towards the charity’s telephone helpline which provides advice and guidance to single parents in financial difficulty. Second payment of a £150,000 grant.
Hope for the Young
£50,000
Core costs towards their work supporting young refuges; first payment of a £150,000 grant.
House of St Barnabas-in-Soho
£50,000
Towards the work with homeless people, supporting access to accommodation and employment. Final payment of a £150,000 grant.
Mental Health Innovations £75,000
Towards the core costs of the SHOUT service, which supports people facing a mental health crisis. First payment of a £150,000 grant.
RefuAid / Prism the Gift Fund £50,000
Supporting RefuAid’s micro-loans programme, which helps refugees to get their qualifications accredited in the UK. Final payment of a £150,000 grant.
Refugee Council £70,000
To support their London Destitution Service, which works with refugees and asylum seekers living in poverty and homelessness. First payment of a £210,000 grant.
Sixteen projects received grant payments of less than £50k totalling £322,854. A total of £2,125,508 was awarded in newly approved grants.
Small Grants Programme
The Trust also awards a number of small grants throughout the year. These grants are often less than £10k and typically focused on projects relating to dance, choreography and performance.
31 projects received grant payments totalling £117,706 A total of £99,565 was awarded in newly approved grants.
Approved by the Board of Trustees on the 19 October 2022 and signed on their behalf by
…………………………………… TRUSTEE Richard Butler Adams
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022
| Notes INCOME AND ENDOWMENTS from: Donations including gift aid Investment income 2 Bank deposit interest Total Income EXPENDITURE on: Cost of generating funds: Investment management fees Charitable activity Grant-making - Costs of administration 3 - Grants payable 4 Total Expenditure Net expenditure before net gains on investments Currency exchange gains Gains on investments 5 Net movement in funds Total funds brought forward Total funds carried forward |
2022 2021 £'000 £'000 2,500 2,520 1,774 1,864 6 4 4,280 4,388 353 325 662 733 5,165 7,402 6,180 8,460 (1,900) (4,072) 33 - 6,686 22,514 4,819 18,442 138,783 120,341 143,602 138,783 |
|---|---|
There are no gains and losses in either the current year or preceding period other than those recognised in the statement of financial activities. All funds are held as expendable endowment funds. All of the above results are derived from continuing activities.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
BALANCE SHEET AS AT 5 APRIL 2022
| Notes | 2022 | 2021 | ||
|---|---|---|---|---|
| £'000 | £'000 | £'000 | ||
| FIXED ASSETS | ||||
| Investments | 5 | 139,653 | 134,277 | |
| Loans to beneficiaries | 6 | 1,500 | 1,705 | |
| 141,153 | 135,982 | |||
| CURRENT ASSETS | ||||
| Debtors | 7 | 2,667 | 872 | |
| Cash at bank and in hand | 1,605 | 5,377 | ||
| 4,272 | 6,249 | |||
| CURRENT LIABILITIES | ||||
| Creditors- amounts falling due within one year | 8 | (1,223) | (2,758) | |
| NET CURRENT ASSETS | 3,049 | 3,491 | ||
| Net assets less current liablities | 144,202 | 139,473 | ||
| Creditors- amounts falling due after one year | 9 | (600) | (690) | |
| NET ASSETS | 143,602 | 138,783 | ||
| Expendable endowment | 143,602 | 138,783 | ||
| TOTAL FUNDS | 143,602 | 138,783 |
The financial statements were approved and authorised for issue by the Trustees on the 19th of October 2022 and were signed on their behalf by:
................................................................................... TRUSTEE
Richard Butler Adams
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 5 APRIL 2022
| Notes 2022 £'000 Net cash used in operating activities 10 (8,895) Cash flows from investing activities: Interest and dividends 1,780 Proceeds from sale of investments 9,649 Purchase of investments (14,433) Effect of foreign exchange rate changes 33 Net cash (used in)/provided by investing activities (2,971) Cash flows from financing activities: Receipt of expendable endowment 2,000 Net cash provided by financing activities 2,000 Change in cash and cash equivalents in the year (9,866) Cash and cash equivalents brought forward 16,712 Cash and cash equivalents carried forward 6,846 |
2021 |
|---|---|
| £'000 (9,787) |
|
| 1,868 24,018 (12,233) - |
|
| 13,653 | |
| 2,016 | |
| 2,016 | |
| 5,882 10,830 |
|
| 16,712 |
Analysis of the balance of cash as shown in the balance sheet
| Cash at bank and in hand Investment cash (Note 5) |
2022 2021 Change in year |
|---|---|
| £'000 £'000 £'000 1,605 5,377 (3,772) 5,241 11,335 (6,094) |
|
| 6,846 16,712 (9,866) |
The notes on pages 16 to 22 form part of these accounts.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2022
1. ACCOUNTING POLICIES
The financial statements 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 UK 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.
(i) The financial statements have been prepared to give a 'true and fair view' and 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 Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
(ii) The trust constitutes a public benefit entity as defined by FRS 102.
(iii) In the view of the Trustees, there are no material uncertainties casting doubt on the going concern
(iv) Having assessed the Trust's financial position and plans for the foreseeable future, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern
(v) The endowment assets of the Trust remain significant, and the Trust will continue to pay out to its beneficiaries in accordance with the Trust's objects.
The principal accounting policies adopted are as follows:
a) Income Recognition
(i) Income is shown gross which includes the associated tax credit unless the tax so deducted is
(ii) Dividends are included by reference to their due dates.
(iii) Interest is included when receivable.
b) Expenditure on Charitable Activities
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
(i) Costs of generating funds represent amounts paid to the Trust's external investment advisors.
(ii) Charitable activities expenditure comprises grants and donations awarded by the Trustees in accordance with the criteria set out in the Trust Deed, together with grant related support costs.
(iii) Grants for which there is a binding commitment are accounted for within the Statement of
(iv) Other grants and grant instalments are accounted for in the Statement of Financial Activities when conditions attaching to the grant are fulfilled.
(v) Costs of administration relate in the main to the grant-making activity of the Trust and include a share of the staff and office costs of the joint office of the Sainsbury Family Charitable Trusts, which are allocated in proportion to time spent on Trust matters and grants paid.
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NOTES TO THE ACCOUNTS
c) Investments
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. Any change in fair value is recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Net gains/(losses) on investments' in the statement of finacial activities. The trust does not acquire put options, derivatives or other complex finacial instruments.
d) Loans to beneficiaries
(i) Trustees make loans in furtherance of the Trust’s charitable objects. Any financial return is likely to be below market rates but can be justified by the charitable impact.
(ii) Loans to beneficiaries represent loans made at less than a market rate of interest for charitable
purposes. They are included at the amount advanced less any repayments and impairments.
e) Financial Instruments
The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently Investments, including bonds held as part of an investment portfolio, are held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure. At the balance sheet date the charity held financial assets at fair value of £134.4m (2021: £122.9m).
f) Cash and Cash Equivalents
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar
g) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
h) Creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount
i) Pensions
Contributions to defined contribution plans are charged to the statement of financial activities in the period to which they relate.
j) Critical accounting judgements and key sources of estimation uncertainty
In the application of the charity's accounting policies, which are described above, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.
In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
NOTES TO THE ACCOUNTS
2. INVESTMENT INCOME
Income received on investments is analysed as follows:
| UK Government Fixed Interest Other fixed interest Equities Alternatives 3. COSTS OF ADMINISTRATION Salaries and associated costs (note 11) Office costs Auditor's remuneration |
2022 2021 |
2022 2021 |
|---|---|---|
| £'000 % £'000 % 1 0% 1 0% 8 0% 13 1% 1,461 83% 1,673 89% 304 17% 177 10% |
||
| 1,774 100% 1,864 100% |
||
| 2022 2021 £'000 £'000 365 373 286 344 11 16 662 733 |
The auditor's remuneration excluding VAT is £7,800 (2021: £13,593). During the year no Trustee received any remuneration or reimbursement of expenses (2021: NIL). Included in the cost above were governance costs of £14,581 which were comprised of staff costs of £3,431 and auditor's remuneration of £11,150 (2021:£19,584 which were comprised of staff costs of £3,272 and auditor's remuneration of £16,312).
4. ANALYSIS OF GRANTS
| ANALYSIS OF GRANTS | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| £'000 | £'000 | £'000 | £'000 | |
| Reconciliation of grants payable: | ||||
| Grants committed but unpaid at 6 April 2021 | 2,657 | 4,037 | ||
| Grants conditionally approved at 6 April 2021 | 13,684 | 16,571 | ||
| Grants approved in the year | 8,207 | 4,515 | ||
| Grants cancelled, amended or refunded | (124) | |||
| Grants conditionally approved at 5 April 2022 | (16,602) | (13,684) | ||
| Grants payable for the year | 5,165 | 7,402 | ||
| GRANTS PAID IN THE YEAR | (6,530) | (8,781) | ||
| Grants committed but unpaid at 5 April 2022 | 1,292 | 2,657 | ||
| Commitments at 5 April 2022 are payable: | 2022 | 2021 | ||
| £'000 | £'000 | |||
| Within one year (note 8) | 692 | 2,017 | ||
| After more than one year (note 9) | 600 | 640 | ||
| 1,292 | 2,657 |
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
NOTES TO THE ACCOUNTS
4. ANALYSIS OF GRANTS (continued)
The total of grants paid in the year can be classified as follows:
| COVID CULTURE EDUCATION & YOUNG PEOPLE ENVIRONMENT MEDICAL OLDER PEOPLE OVERSEAS & EMERGENCY RELIEF SOCIAL WELFARE SMALL GRANTS |
2022 2021 £'000 £'000 1,465 673 2,375 5,812 524 592 566 307 50 239 334 131 220 348 878 580 118 99 6,530 8,781 |
|---|---|
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
NOTES TO THE ACCOUNTS
| 5 FIXED ASSET INVESTMENTS Market value at 6 April 2021 Less: Proceeds from disposals Add: Acquisitions at cost Gains on investment assets Market value at 5 April 2022 Investment cash Total Investments |
2022 2021 |
|---|---|
| £'000 £'000 122,942 112,213 (9,649) (24,018) 14,433 12,233 6,686 22,514 |
|
| 134,412 122,942 |
|
| 5,241 11,335 |
|
| 139,653 134,277 |
The investments held as at 5 April 2022 were as follows:
| UK Government Fixed Interest Other fixed interest Equities Alternatives 6. LOANS TO BENEFICIARIES Balance at beginning of year Loans made/(repayments) Balance at end of year |
2022 2021 Market Market Value Value |
|---|---|
| £'000 £'000 737 684 5,378 839 118,823 114,416 9,474 7,003 |
|
| 134,412 122,942 |
|
| 2022 2021 |
|
| £'000 £'000 1,705 1,705 (205) - |
|
| 1,500 1,705 |
The Trustees have assessed the recoverability of all outstanding loan balances and are satisfied that all balances are fully recoverable.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
NOTES TO THE ACCOUNTS
| 7. DEBTORS Prepayments Other debtors 8. CREDITORS - amounts falling due within 1 year Grants payable within one year Accruals Other creditors |
2022 2021 |
|---|---|
| £'000 £'000 59 168 2,608 704 |
|
| 2,667 872 |
|
| 2022 2021 |
|
| £'000 £'000 692 2,017 46 50 485 691 |
|
| 1,223 2,758 |
9. CREDITORS - amounts falling due after more than 1 year
| Grants payable 1-5 years Other creditors |
2022 2021 |
|---|---|
| £'000 £'000 600 640 - 50 |
|
| 600 690 |
10. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
| RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES |
|
|---|---|
| Net movement in funds Deduct gift of endowment Deduct income shown in investing activities Deduct gains on investments Deduct gains on currency exchange Loans to beneficiaries returned Increase in debtors Decrease in creditors |
2022 2021 |
| £'000 £'000 4,819 18,442 (2,000) (2,016) (1,780) (1,868) (6,686) (22,514) (33) 205 - (1,795) (612) (1,625) (1,219) |
|
| (8,895) (9,787) |
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
NOTES TO THE ACCOUNTS
11 ANALYSIS OF STAFF COSTS
| Staff costs: Wages and salaries Social security costs Other pension costs |
2022 2021 £'000 £'000 299 305 35 35 31 33 365 373 |
|---|---|
As mentioned in Accounting Policies note (b), the Trust is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office. 5.2% (2021: 5.8%) of the total costs of these trusts have been allocated to The Linbury Trust, including a proportionate share of the costs of employing the total number of staff serving in the office in 2022.
The average total number of SFCT staff employed during the year to contribute to the work of the Linbury Trust was 11, most of whom worked for the Linbury Trust on a part-time basis (2021:13). This was equivalent to 2.6 full-time employees (2021: 3.4).
The Trust considers its key management personnel to comprise the Trustees and Principal Officers. The Trustees all give freely of their time and expertise without remuneration, expenses or other benefit in cash or kind (2021: £nil). Cost for key management is £149,411 (2021: £148,402) The number of employees whose total employee benefits (excluding employer pension costs) for services provided to the Trust exceeded £60,000 was as follows: 2022: one employee who earned between £90,000-£100,000 (2021: one).
12. RELATED PARTY TRANSACTIONS
Donations from Trustees totalling £2.5m including Gift Aid (2021: £2.5m) were received and allocated to expendable endowment.
Included within loans to beneficiaries (Note 6) is an interest-free loan of £1.5m (2021: £1.5m) to the Rambert School of Ballet and Contemporary Dance Trust (registered charity number 1114705) of which Richard Butler Adams is a Trustee. The loan was made in 2004 and repayments are frozen until 2026. During the year, The Linbury Trust approved 95 grants; for four of these a conflict of interest was declared in the applicant organisations. In such cases, the individual raising the conflict was not part of the decision-making process. Applicant organisations are not controlled by The Linbury Trust and the Trustees are mindful of the need to consider any potential conflicts of interest when making grant awards.
The Trust is one of the Sainsbury Family Charitable Trusts which share a joint administration at the Registered Office for cost effectiveness. At any one time there are amounts payable between trusts some of which fall under the definition of related parties by having trustees in common who are also siblings.
The following amounts are primarily employee costs and are included in Other Debtors (Note 7).
£24,412 due from The JJ Charitable Trust
£111,306 due from The Aurora Trust.
£10,333 due from The Mark Leonard Trust.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
Statement of Trustees’ Responsibilities
Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:
-
Select suitable accounting policies and then apply them consistently
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Observe the methods and principles in the Charities SORP
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Make judgements and estimates that are reasonable and prudent
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State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
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 financial statements comply with the Charities Act 2011. 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 corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
Independent Auditor’s Report to the Trustees of the Linbury Trust
Opinion
We have audited the financial statements of the Linbury Trust (the ‘charity’) for the year ended 5 April 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
-
Give a true and fair view of the state of the charity’s affairs as at 5 April 2022 and of its incoming resources and application of resources, for the year then ended
-
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
-
Have been prepared in accordance with the requirements of the Charities Act 2011
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 financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 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.
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 Linbury Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
The information given in the trustees’ annual report is inconsistent in any material respect with the financial statements;
-
Sufficient accounting records have not been kept; or
-
The financial statements are not in agreement with the accounting records and returns; or
-
We have not received all the information and explanations we require for our audit
Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees are responsible for the preparation of the financial statements 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 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 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.
Auditor’s responsibilities for the audit of the financial statements
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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 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 financial statements.
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 are set out below.
Capability of the audit in detecting irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
-
We enquired of management and the board of trustees, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
-
Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
-
Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
-
The internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations.
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We inspected the minutes of meetings of those charged with governance.
-
We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
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We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
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We reviewed any reports made to regulators.
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We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
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We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
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In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
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The Linbury Trust Annual report and Financial Accounts, 5 April 2022
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available 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 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.
Date: 19 October 2022 29 November 2022 Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006
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