**WILLIAM FRANK PINN CHARITABLE TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** **Charity Number 287772** **WILLIAM FRANK PINN CHARITABLE TRUST** ## **CONTENTS PAGE** ||**Pages**| |---|---| |Reference and Administration Details|2| |Report of the Trustee|3 - 6| |Independent Auditor’s Report|7 - 10| |Statement of Financial Activities|11| |Balance Sheet|12| |Notes to the Financial Statements|13 - 20| -1- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **REFERENCE AND ADMINISTRATION DETAILS** |**Corporate Trustee**|HSBC Trust Company (UK) Limited| |---|---| |**Current Directors of Corporate Trustee**|J Coyle| ||P M Spencer| ||J Hewitson| |**Trust Manager**|N Millar| |**Principal Office**|Forum 1| ||The Forum Parkway| ||Whiteley| ||Fareham| ||Hampshire| ||PO15 7PA| |**Auditors**|RSM UK Audit LLP| ||Chartered Accountants| ||Highfield Court| ||Tollgate| ||Chandlers Ford| ||Eastleigh| ||Hampshire| ||SO53 3TY| |**Bankers**|HSBC Bank plc| ||Forum 1| ||The Forum Parkway| ||Whiteley| ||Fareham| ||Hampshire| ||PO15 7PA| |**Investment Managers**|HSBC UK Bank plc| ||1 Centenary Square| ||Birmingham| ||B1 1HQ| -2- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **REPORT OF THE TRUSTEE FOR THE YEAR ENDED 5 APRIL 2022** The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’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 published on 16 July 2014. The William Frank Pinn Charitable Trust is constituted under the Will of the late Mr William Frank Pinn, who died on 18 June 1983, as varied by Charity Commission Schemes dated 24 May 1990 and 9 December 1998, and is a registered charity (no. 287772). ## **Aims and objectives** The objects of the charity are of general charitable purposes and to apply the income from the trust fund, for the benefit of those of state pensionable age, in the Borough of Gravesham. The charitable activity is performed through the awarding of grants, in accordance with the terms of the governing document. The trustee considers grant making an effective method of delivering these objectives, and reviews applications for grants when received. Grants are awarded at the discretion of the Board of Managers. ## **Public benefit** We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the trustee considers how planned activities will contribute to the aims and objectives they have set. ## **Financial review** The charity received money from the estate of Mr William Frank Pinn to be kept in perpetuity. The fund generated income of £274,346 (2021: £297,557) in the year to fund its charitable activities. Direct charitable expenditure of £246,176 (2021: £147,147) was made in the form of grants to individuals. Total charitable expenditure amounted to £398,172 (2021: £265,318). The closing level of endowment funds was £9,424,712 (2021: £9,052,923) and unrestricted funds was £446,530 (2021: £446,633). ## **Achievement and performance** During the year 1,173 grants totalling £173,160 (2021: 569 grants totalling £83,710) were awarded, in accordance with the terms of the governing document. Donations are made to individuals of pensionable age and priority is given to those on lower incomes. Typically, grants are made to enable the purchase of clothing and to cover household expenses. -3- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **REPORT OF THE TRUSTEE FOR THE YEAR ENDED 5 APRIL 2022 cont.** ## **Investment policy** In accordance with the governing document, the trustee has the power to invest in such stocks, shares, investments and property as they see fit. The trustee engaged HSBC Global Asset Management (UK) Limited as investment managers. The policy is to adopt a low to medium risk investment strategy to protect, in absolute terms, the capital value of the fund whilst producing a sustainable and growing level of income, and also providing the potential for longer term growth of capital in real terms. During the year the value of the endowment fund increased by £371,789 (2021: increased by £785,830). The level of investment income generated in the year was considered satisfactory and the market value of the investments moved in line with the underlying securities. Investments are split as follows: |Properties
UK equities
UK fixed interest securities
Overseas
Alternative investment|**2022**
**2021**
**%**
**%**
71
71
-
-
1
1
28
28
-
-
100
100| |---|---| ## **Reserves policy** The unrestricted funds, which are the free reserves of the charity, and which are represented by the income arising are paid over to beneficiaries throughout the year. The balance of unrestricted funds held at 5 April 2022 is £446,530 (2021: £446,633). It is not the policy of the charity to maintain specific reserves. The expendable endowment funds represent those assets, which are held permanently by the charity, principally investments. Income arising on the endowment fund can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. The trustee has the power to convert this fund into income. ## **Plans for the future** The trustee intends to continue providing grants in a similar way to the recent past whilst retaining flexibility as to the timing and scale of grant making. -4- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **REPORT OF THE TRUSTEE FOR THE YEAR ENDED 5 APRIL 2022 cont.** ## **Related parties** The Corporate Trustee and the investment managers are both wholly owned subsidiaries of HSBC Holdings Plc. In addition to those fees shown on page 20, as a result of the acquisition and disposal of investments, the charity pays transaction charges to HSBC Bank Plc. The charges are calculated on a sliding scale at a percentage of the transactions value plus VAT and are added to or deducted from the cost of the investments or the disposal proceeds in accordance with UK standard accounting practice. A summary of the transactions of the charity with the related parties is set out in note 10 of the financial statements. ## **Structure, governance and management** The Corporate Trustee was appointed by the above mentioned Will and has a statutory power to appoint a successor. The Corporate Trustee has a designated trust manager to administer the charity. A Board of Managers, which is independent of the Corporate Trustee, determines charitable payments. The members of the Board of Managers are recruited by personal recommendation of the existing members and formally approved and appointed by the Corporate Trustee. The trustee has examined the major strategic, business and operational risks which the charity faces and confirms that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. ## **Key management personnel** The trust does not have any employees and all decisions are taken by the trustee. The only remuneration paid is that paid to the corporate trustee as disclosed in note 10. ## **Auditors** In accordance with the Charities Act 2011, a resolution proposing that RSM UK Audit LLP be reappointed as Auditors of the charity will be put to a general meeting. -5- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **REPORT OF THE TRUSTEE FOR THE YEAR ENDED 5 APRIL 2022 cont.** ## **Statement of Trustee’s responsibilities in relation to the financial statements** The law applicable to charities in England and Wales requires the trustee to prepare financial statements for each financial year which give a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustee should follow best practice and: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustee is responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ascertain the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) 2008 Regulations and the provisions of the trust deed. The trustee is 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 trustee and signed on their behalf by: HSBC Trust Company (UK) Limited Date:3/2/2023………………………… ………… -6- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF THE WILLIAM FRANK PINN CHARITABLE TRUST** ## **Opinion** We have audited the financial statements of The William Frank Pinn Charitable Trust for the year ended 5 April 2022 which comprise Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of 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; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 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 trustee’s 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 charity’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. Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustee is responsible for the other information. The other information comprises the information included in the Trustee’s Report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon. -7- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEE OF THE WILLIAM FRANK PINN CHARITABLE TRUST cont.** 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the Trustee’s Report; or - 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 the trustee** As explained more fully in the Statement of Trustee’s responsibilities set out on page 6, the trustee is 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 trustee determines 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 trustee is 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 trustee either intends 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** 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. ## **The extent to which the audit was considered capable of detecting irregularities, including fraud** Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected noncompliance with laws and regulations identified during the audit. -8- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEE OF THE WILLIAM FRANK PINN CHARITABLE TRUST cont.** In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: - obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the Charity operates in and how the Charity is complying with the legal and regulatory framework; - inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; - discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011, and the charity's governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements. There were no significant laws and regulations that have an indirect impact on the financial statements. The audit engagement team identified the risk of management override of controls, as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates. A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://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 trustee as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustee 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 trustee as a body, for our audit work, for this report, or for the opinions we have formed. -9- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEE OF THE WILLIAM FRANK PINN CHARITABLE TRUST cont.** ## RSM UK Audit LLP RSM UK Audit LLP Statutory Auditor Chartered Accountants Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TY Date: 03/02/23 RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. -10- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022** |**Income**
Investment income
**2**
Rental income
**2**
Tax refund
**2**
**Total income**
**Expenditure**
Cost of generating funds
**3**
Charitable activities
**4**
**Total expenditure**
**Net income/(expenditure) incurred**
**before transfers and other**
**recognised gains and losses**
Realised and unrealised
**6**
(loss)/gains on investment assets
**Net income for the year**
Transfer between funds
Funds at 6 April 2021
**Funds at 5 April 2022**
**Notes**|**Unrestricted**
**funds**
**£**
38,991
235,355
-
274,346
93,080
183,934
277,014
(2,668)
-
(2,668)
2,565
446,633
446,530|**Endowment**
**funds**
**£**
-
-
-
-
58,916
62,242
121,158
(121,158)
495,512
374,354
(2,565)
9,052,923
9,424,712|**Total**
**Total**
**2022**
**2021**
**£**
**£**
**38,991**
61,605
**235,355**
235,703
**-**
249
**274,346**
297,557
**151,996**
118,171
**246,176**
147,147
**398,172**
265,318
**(123,826)**
32,239
**495,512**
870,951
**371,686**
903,190
**-**
-
**9,499,556**
8,596,366
**9,871,242**
9,499,556| |---|---|---|---| -11- ## **WILLIAM FRANK PINN CHARITABLE TRUST** ## **BALANCE SHEET AT 5 APRIL 2022** |**Fixed assets**
Investments
**6**
**Current assets**
Debtors
**7**
**Creditors: amounts falling**
**due within one year**
**8**
**Net current assets/(liabilities)**
**Net assets**
**Funds**
**9**
**Notes**|**Unrestricted**
**funds**
**£**
396,182
61,703
61,703
11,355
50,348
446,530
446,530|**Endowment**
**funds**
**£**
9,461,251
-
-
36,539
(36,539)
9,424,712
9,424,712|**Total**
**Total**
**2022**
**2021**
**£**
**£**
**9,857,433**
9,463,909
**61,703**
64,291
**61,703**
64,291
**47,894**
28,644
**13,809**
35,647
**9,871,242**
9,499,556
**9,871,242**
9,499,556| |---|---|---|---| Approved by the trustee and authorised for issue on…3 February 2023 and signed on its behalf: ……………………………………….. HSBC Trust Company (UK) Limited -12- **WILLIAM FRANK PINN CHARITABLE TRUST** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** ## **1. Accounting policies** ## **Accounting convention** The financial statements have been prepared in accordance with 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 the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. The trust is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS 102. 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 (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The accounts are prepared in sterling, which is the functional and presentational currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. ## **Going concern** At the time of approving the accounts, the Trustee has a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustee continues to adopt the going concern basis of accounting in preparing the accounts. ## **Income** All income is recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability. Investment income is accounted for in the period in which the charity is entitled to receipt. Income is the gross value of dividends and interest received after reclaiming any tax credits that are available. Dividends due on quoted investments that are ex-dividend at the balance sheet date are accrued as income. Rental income is recognised in the period to which it relates. Rental income is received in arrears, giving rise to accrued income at the year end. -13- **WILLIAM FRANK PINN CHARITABLE TRUST** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** ## **1. Accounting policies cont.** ## **Expenditure** Expenditure is included on an accruals basis. Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. Costs of generating funds comprise those costs directly attributable to managing the investment portfolio and raising investment income. Charitable expenditure includes grants payable in furtherance of the charitable objectives of the charity. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Support costs are those functions that assist the work of the charity but do not directly undertake charitable activity. Support costs include governance costs which are costs associated with meeting the constitutional and statutory requirements of the charity. ## **Fixed asset investments** Investments are included at closing fair value at the balance sheet date. Any gain or loss on revaluation or disposals throughout the period is taken to the Statement of Financial Activities. Investment properties are stated at their open fair value. In accordance with the Statement of Recommended Practice, depreciation is not provided on investment properties. Investment properties are professionally revalued every year. ## **Financial instruments** The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. -14- **WILLIAM FRANK PINN CHARITABLE TRUST** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** ## **1. Accounting policies cont.** ## **Basic financial assets** Basic financial assets, which include debtors 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. 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. ## **Impairment of financial assets** Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year. ## **Derecognition of financial assets** Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. ## **Basic financial liabilities** Basic financial liabilities, including creditors 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Liabilities are recognised within the financial statements in respect of all expenditure for which the entity has a measurable obligation, be it constructive or legal, at the balance sheet date. Any expenditure which is committed to, but not measurable at this time, is disclosed within the notes to the financial statements as a contingent liability. ## **Derecognition of financial liabilities** Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled. -15- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** ## **1. Accounting policies cont.** ## **Realised gains and losses** All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and opening fair value (or purchase date if later). Unrealised gains and losses are calculated as the difference between the fair value at the year end and opening fair value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities. ## **2. Investment income** |Property rental
Dividends - UK equities
Dividends - UK unit trusts
Dividends - Foreign equities
Interest - UK fixed interest securities
Interest - Overseas unit trusts
Tax refund|**2022**
**2021**
**£**
**£**
**235,355**
235,703
**4,120**
12,082
**34,211**
6,840
**-**
16,557
**642**
1,479
**18**
24,647
**-**
249
**274,346**
297,557| |---|---| |**Costs of generating funds**|| |Investment management fees
Property service charge
Property management fees
Property maintenance costs|**2022**
**2021**
**£**
**£**
**13,495**
20,208
**18,257**
10,053
**27,164**
25,984
**93,080**
61,926
**151,996**
118,171| ## **3. Costs of generating funds** -16- **WILLIAM FRANK PINN CHARITABLE TRUST** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** ## **4. Charitable activities** The charity undertakes its charitable activities through grant making, and awards grants to a number of charities in accordance with its charitable objectives. |General charitable
activities|**£**
173,160
**Grants**|**£**
10,774
**Support**
**costs**|**£**
62,242
**Other**
**allocated**
**costs**|**£**
**£**
**246,176**
147,147
**Total**
**2021**
**Total**
**2022**| |---|---|---|---|---| Other allocated costs, of £62,242 (2021: £52,666) principally comprise management fees charged by the Corporate Trustee. During the year 1,173 grants totalling £173,160 (2021: 569 grants totalling £84,610) were awarded to individuals in accordance with the terms of the governing document. During the year 32 grants were returned totalling £4,725 (2021: 6 grants totalling £900). ## **5. Support costs** Support costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. |Accountancy fee
Auditor's remuneration|**2022**
**2021**
**£**
**£**
**2,870**
3,762
**7,800**
7,008
**10,670**
10,770| |---|---| -17- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** ## **6. Investments** |Security market value brought forward
Less: B/fwd cash investments balance
Acquisitions at cost
Sale proceeds from disposals
Change in market value
Historic investment property/security market value split adjustment
Security market value carried forward
Investments at market value comprised :
UK Fixed Interest Securities
UK Equities
Overseas Fixed Interest Securities
Overseas Equities
Alternative Investment
Investment properties b/fwd
Change in fair value of investment properties
Investment properties c/fwd
Securities historical cost at 5 April 2022|**2022**
**2021**
**£**
**£**
**3,092,034**
2,268,111
**(447,371)**
-
**1,455,190**
2,920,250
**(1,525,220)**
(3,023,774)
**145,512**
870,951
**-**
56,496
**2,720,145**
3,092,034
**37,871**
81,100
**-**
38,954
**1,992,217**
1,951,044
**690,057**
533,565
**-**
40,000
**2,720,145**
2,644,663
**6,371,875**
6,203,750
**350,000**
168,125
**6,721,875**
6,371,875
**9,442,020**
9,016,538
**2,531,284**
2,555,731| |---|---| No individual investments are considered material (over 5% of portfolio by value) in the context of the portfolio. Except for the following; - HSBC American Index - portfolio holding of 16.00% (2021: 16.01%) - ISHARES III PLC Core – portfolio holding of 3.42% (2021: 7.29%) - HSBC Global Funds Icav Global Govt Bond Index Fund ZQHGBP- portfolio holding of 6.24% (2021: 10.12%) - HSBC Global Investment Funds Global Real Estate Equity ZQ1 portfolio holding of 5.01% (2021: 6.18%) - HSBC GLOBAL FUNDS ICAV MULTI-FACTOR WORLDWIDE EQUITY ZQ portfolio holding of 11.24% (2021: 13.70%) - HSBC Global Investment Funds Global Corporate Bond – portfolio holding of 5.29% (2021: less than 5%). -18- **WILLIAM FRANK PINN CHARITABLE TRUST** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** ## **6. Investments cont.** All properties are professionally revalued on a rolling basis, so that all properties are revalued once every five years and revalued on an annual basis by the trustee. Valuations are performed by Walker Jarvis Ltd, a firm of RICS Chartered Surveyors. The figure shown represents their estimate of the open market value of the various properties subject to existing leases. |Security Investments
Investment properties
Cash investments|**2,720,145**
2,644,663
**6,721,875**
6,371,875
**415,413**
447,371
**9,857,433**
9,463,909| |---|---| ## **7. Debtors** |Prepayments and accrued income|**2022**
**2021**
**£**
**£**
**61,703**
64,291| |---|---| ## **8. Creditors: amounts falling due within one year** |Accruals|**2022**
**2021**
**£**
**£**
**47,894**
28,644| |---|---| ## **9. Funds** Unrestricted funds comprise those funds which the trustee is free to use in accordance with the charitable objects. The expendable endowment funds represent those assets, which are held permanently by the charity, principally investments. Income arising on the endowment fund can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investment form part of the fund. Investment management fees and certain management and administration costs are charged against the fund in accordance with the terms of the Declaration of Trust. The trustee has the power to convert this fund into income. The trustee has the power to transfer funds between unrestricted and endowment funds. -19- **WILLIAM FRANK PINN CHARITABLE TRUST** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** ## **10. Trustee remuneration and related parties** The Corporate Trustee and the investment managers are both wholly owned subsidiaries of HSBC Holdings Plc. The following is a summary of transactions with these entities, which are authorised under the terms of the governing document: |Management fees - Corporate Trustee
Investment management fees|**2022**
**2021**
**£**
**£**
**62,242**
52,666
**13,495**
30,262
**75,737**
82,928| |---|---| The following amounts were owed to HSBC Trust Company (UK) Limited as at 5 April 2022: |Management and investment fees|**2022**
**2021**
**£**
**£**
**-**
3,193| |---|---| The above fees include VAT that is irrecoverable by the charity. No other expenses were paid to the Corporate Trustee. -20-