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2021-04-05-accounts

Charity registration number 287405

The Rowland Trust

Accounts

5 April 2021

The Rowland Trust

Registered Charity No. 287405

Contents

Trustees' Report 1 to 2
Statement of Trustees' Responsibilities 3
Independent Examiner's Report 4
Statement of Financial Activities 5
Balance Sheet 6
Notes to the Financial Statements 7 to 10

The Rowland Trust

Registered Charity No. 287405

Trustees' Report

The trustees present the annual report together with the financial statements of the charity for the year ended 5 April 2021.

Structure, governance and management

Nature of governing document

The Rowland Trust (The Trust) was established under a Trust Deed dated 13 December 1982 as varied by deed dated 2 December 1991 and 10 December 1998. It was registered as a charity with the Charity Commission on 13 July 1983.

Organisational structure

The Charity is run on a voluntary basis. When making grants, Trustees take into account the Charity Commission's guidance on public benefit and the specific guidance on charities for the advancement of religion. The Trustees take a flexible approach and respond to past and present Christian workers in financial need, as their situations arise. Most of the beneficiaries have been engaged in full-time voluntary Christian work without salary. The Trustees may go beyond trust income and draw upon capital for the purpose of making appropriate grants.

Principal Office 24 Greencoat Place, London, SW1P 1RD

Trustees W Patrick Colquhoun, MBE, MA Catherine LJ Hutchinson. Correspondent Ronald JC Graham

Bankers Royal Bank of Scotland, Chelmsford (B) Branch, 26 High Street, Chelmsford, CM1 1YJ

Solicitors WSP Solicitors LLP, 26 Long Street, Dursley, Gloucestershire, GL11 4JA

Investment Tilney Investment Management Services Ltd, 17th Floor, 6 New Street Managers Square, New Fetter Lane, London, EC4A 3BF

Independent Websters Cambridge Limited, 10 Wellington Street, Cambridge, CB1 1HW Examiners

Objectives and activities

Objects and aims

The Rowland Trust exists for the advancement of the Christian religion. To further this object, the trust deed empowers the Trustees to apply its funds "for the benefit of such persons who are or have been engaged in full time Christian work as the Trustees in their absolute discretion shall from time to time select".

The late Mr Frank Rowland who, with his wife Dorothy, established the Trust, and whose estate later provided the greater part of its capital assets, had most in mind those giving their lives and energies to the work of Moral Re-Armament (now called "Initiatives of Change") and The Oxford Group. They wished the Trust to also think of the needs of the more senior Christian workers. Penleys, the solicitors to the Trust, when presenting its Objects to the Charity Commissioners, quoted dicta of Mr Justice Farwell in a case in 1941, explaining how a gift for retired Christian workers could advance the Christian religion: "a gift providing for retired missionaries may encourage people to take up missionary work". In the event, the initiative taken by Frank and Dorothy Rowland has assisted the growth of a fellowship of such men and women of all ages, most of whom gave their services and worked without salary.

1

The Rowland Trust

Registered Charity No. 287405

Public benefit

In making grants the charity supports individuals advancing the Christian religion, without prejudice.

The Trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Financial review

Investment income amounted to £49,840 (2020 - £61,151) and expenditure, including grants amounted to £147,519 (2020 - £108,611).

The gifts received during the year amounted to £13,300 (2020 - £4,100) including refundable Gift Aid Tax of £60 (2020 - £60).

Legacies received in the year amounted to £219,102 (2020 - £Nil).

The Trustees accept that voluntary donations and bequests are hard to predict and will vary dramatically as the charity rarely engages in fund-raising. They aim to maintain operations at a sustainable level.

During the year, the Trustees made 60 (2020 - 54) grants to qualifying men, women and married couples for a total of £138,030 (2020 - £97,900).

As at the balance sheet date outstanding loans stood at £556,000 (2020 - £485,000). In the opinion of the Trustees, all the mortgage loans are sufficiently covered by the value of the properties on which they are secured.

Since the balance sheet date, steps have been taken to secure £116,000 of the ordinary loans, and a further £20,000 ordinary loans have been redeemed.

Policy on reserves

In line with previous policy, grants are made primarily from income, but also, from time to time as needed, grants are made from capital. Adequate cash reserves are maintained to enable grants to be made at short notice.

Financial Instruments

Objectives and policies

The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity's policies approved by the board of Trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.

Credit risk

The charity's principal financial assets are bank balances and cash, trade and other receivables, and investments.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

The annual report was approved by the Trustees on the charity on 29 January 2022 and signed on their behalf by:

W Patrick Colquhoun, MBE, MA Trustee

2

The Rowland Trust

Registered Charity No. 287405

Statement of Trustees' Responsibilities

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

The law applicable to charities 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 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The Trustees 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.

Approved by the Trustees of the charity on 29 January 2022 and signed on its behalf by:

W Patrick Colquhoun, MBE, MA Trustee

3

The Rowland Trust

Registered Charity No. 287405

Independent Examiner's Report to the Trustees of The Rowland Trust

I report on the accounts of the charity for the year ended 5 April 2021 which are set out on pages 5 to 10.

Respective responsibilities of trustees and examiner

The Trustees are resonsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the next statement.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

have not been met; or

Gary Eves FCCA Association of Chartered Certified Accountants Websters Cambridge Limited A tax, legal and accountancy firm 10 Wellington Street Cambridge CB1 1HW

29 January 2022

4

The Rowland Trust

Registered Charity No. 287405

Statement of Financial Activities for the year ended 5 April 2021

Donations and legacies
Uncovenanted gifts
Legacies
Gross covenanted gifts and gift aid
Investment income
Net dividends
UK company interest
Foreign income gross
Gross bank interest
Property rental investment income
Other income
Mortgage uplift income
Total income
Expenditure on:
Grants payable
Governance costs
Postage
Sundry
Accountancy fees
Portfolio charges
Total expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
2
Gains/(losses)
on
disposal
of
listed
investment
assets
Gains/(losses)
on
listed
investment
assets
revaluations		 Unrestricted
funds
£
13,000
219,102
300
232,402
36,263
6,500
2,340
3,124
1,613
49,840
1,852
284,094
(138,030)
-
36
(600)
(8,925)
(9,489)
(147,519)
47,435
203,511
387,521
2,277,257
2,664,778		 Total
2021
£
13,000
219,102
300
232,402
36,263
6,500
2,340
3,124
1,613
49,840
1,852
284,094
(138,030)
-
36
(600)
(8,925)
(9,489)
(147,519)
47,435
203,511
387,521
2,277,257
2,664,778		 Total
2020
£
3,800
-
300
4,100
50,262
6,500
2,160
1,721
508
61,151
-
65,251
(97,900)
(7)
-
(600)
(10,104)
(10,711)
(108,611)
(66,650)
(248,266)
(358,276)
2,635,533
2,277,257

All of the charity's activities derive from continuing operations during the above two periods.

The funds breakdown for 2020 is shown in note 2.

5

The Rowland Trust

Registered Charity No. 287405

Balance Sheet as at 5 April 2021

Notes
Fixed assets
Listed investments
3
Ordinary loans
Mortgage loans
Current assets
Stamps in hand
Covenant and gift aid tax due
Property tax due
Cash with Tilney
Other debtors
Cash at bank and in hand
RBS - current account
RBS - deposit account
Cash in hand
Net current assets
Net assets
Funds of the charity:
Unrestricted funds
2
Total funds
Creditors: amounts falling due
within one year		 2021
£
1,523,944
156,000
400,000
556,000
2,079,944
6
9,102
1,598
65,790
1,350
77,846
-
513,829
230
514,059
591,905
(7,071)
584,834
2,664,778
2,664,778
2,664,778		 2020
£
1,201,536
20,000
465,000
485,000
1,686,536
6
9,042
1,355
147,786
-
158,189
514
432,388
230
433,132
591,321
(600)
590,721
2,277,257
2,277,257
2,277,257

Although the charity has made a significant amount of unsecured borrowing in the year. Work has been undertaken since the end of the financial year in order to secure it against borrowers assets. It is hoped that this will be in place by the end of the current financial year.

The financial statements on pages 5 to 10 were approved by the trustees, and authorised for issue on 29 January 2022 and signed on their behalf by:

W Patrick Colquhoun, MBE, MA Trustee

6

The Rowland Trust

Registered Charity No. 287405

Notes to the Accounts

for the year ended 5 April 2021

1 Accounting policies

Statement of compliance

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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

The Rowland Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised as historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure and it is probable settlement will be required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs.

7

The Rowland Trust

Registered Charity No. 287405

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be directly allocated to such activities and those costs of an indirect nature necessary to support them.

Governance costs

These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including audit, strategic management and trustees's meetings and reimbursed expenses.

Investments

Investments comprise investments in equity instruments which are measured at fair value. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party ot the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

8

The Rowland Trust

Registered Charity No. 287405

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

2 Funds
Balance at 6 April
Incoming resources
Resources expended
Other recognised gains/(losses)
Balance at 5 April
Fixed assets
Current assets
Current liabilities		 2021
Unrestricted
£
2,277,257
284,094
(147,519)
250,946
2,664,778
£
2,079,944
591,905
(7,071)
2,664,778		 2021
Total
£
2,277,257
284,094
(147,519)
250,946
2,664,778
£
2,079,944
591,905
(7,071)
2,664,778		 2020
Unrestricted
£
2,635,533
65,251
(108,611)
(314,916)
2,277,257
£
1,686,536
591,321
(600)
2,277,257		 2020
Total
£
2,635,533
65,251
(108,611)
(314,916)
2,277,257
£
1,686,536
591,321
(600)
2,277,257

9

The Rowland Trust

Registered Charity No. 287405

3 Listed investments
Listed other shares
Listed investments as at 5 April 2021 are as follows:
Details
Shareholding
Vontobel Asset Mgmt SA Twentyfour
1,000
Astrazeneca PLC Ord USD0.25
1,000
BAE Systems Ord GBP0.025
12,000
BHP Billiton PLC USD0.50
2,500
BP Ord USD 0.25
10,000
Civitas Social Housing PLC Ord 0.01
30,000
Compass Group PLC Ord
2,000
Convatec Group PLC Ord GBP0.1
20,000
Cranswick Ord GBP0.10
2,500
Dechra Pharma Ord. GBP 0.01
3,000
Equiniti Group PLC Ord GPB0.10
12,500
Fairpoint Group Ord GBP 0.01
40,000
Findlay Park American Fund USD
110
GlaxoSmithKline Ord. GBP0.25
3,000
Hargreaves Lansdown PLC
3,000
Howden Joinery Group PLC Ord
12,000
Jupiter European Z Acc
234
Lloyds Banking Group Ord GBP0.1
80,000
MAR CITY Ord GBP0.025
20,000
M&G PLC Ord GBP0.05
3,000
Morgan Stanley US Advantage Fund
771
PayPoint Ord GBP0.0033
4,000
Prudential GBP0.05
3,000
Rathbone Ethical Bond
79,858
Reckitt Benckiser Group PLC
500
Royal Bank of Scotland Group PLC
5,800
Royal Dutch Shell "B" Shares Ord
4,100
Schroder Gaia Egerton Equity
22
Schroder Strategic Credit
3,150
Schroder Tokyo Z Inc
4,595
Smith (DS) PLC
8,000
Stewart Investors Asia Pacific
1,400
Supermarket Income Reit PLC
30,000
Tesco Ord GBP0,05
12,000
Link Fund Sol Ltd Capita Trojan
45,000
Unilever PLC Ord GBP 0.03111
2,000
Vodafone Group Ord USD
20,000
Weir Group Ord GBP0.125
2,000
Allianz RCM UK Equity Income Fund
2,156.45
Held with Tilney Investment Management Services
Held Directly - Allianz RCM UK Equity Income Fund		 2021
£
1,523,944
Book cost
£
103,971
58,073
39,739
35,630
57,329
31,162
31,819
49,651
18,906
6,675
27,243
30,700
-
32,078
54,391
39,780
-
77,374
20,774
6,745
80,594
24,781
42,505
81,513
33,669
51,842
68,592
-
-
-
40,386
-
32,440
49,685
46,731
21,339
34,860
40,930
2,677
1,374,584
1,371,907
2,677
1,374,584		 2020
£
1,201,536
Value
£
103,240
72,470
60,600
52,362
29,465
32,340
29,230
39,220
90,900
102,900
16,150
-
13,152
38,640
46,245
87,960
6,930
34,028
-
6,222
100,714
23,600
46,215
82,837
32,490
11,383
54,735
4,769
3,035
4,913
32,616
13,357
32,550
21,679
51,570
81,120
26,376
35,540
2,391
1,523,944
1,521,553
2,391
1,523,944

10