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2021-04-05-accounts

Charity number: 290533

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2021

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

CONTENTS
Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2-13
Independent Auditors' Report on the Financial Statements 14-17
Consolidated Statement of Financial Activities 18
Charity Statement of Financial Activities 19
Consolidated Balance Sheet 20
Charity Balance Sheet 21
Consolidated Statement of Cash Flows 22
Notes to the Financial Statements 23-51

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2021

Trustees Crispin Michael Rope (deceased 22 February 2021)
Mrs Catherine Susanne Judith Scott
Mrs Ellen Mary Jolly
Jeremy Philip Winteringham Heal
Charity registered
number
290533
Principal office
Lucy House
St. William Court
Kesgrave
Ipswich
Suffolk
IP5 2QP
Independent auditors
Peters Elworthy & Moore
Chartered Accountants
Statutory Auditors
Salisbury House
Station Road
Cambridge
CB1 2LA
Bankers
Barclays Bank plc
1 Princes Street
Ipswich
IP1 1PB
Solicitors
Howes Percival LLP
Flint Buildings
1 Bedding Lane
Norwich
NR3 1RG
Stockbrokers
HSBC Private Bank (UK) Ltd
8 Cork Street
London
W1S 3LJ

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2021

The Trustees present their report together with the audited financial statements of The Mrs L D Rope Third Charitable Settlement (the charity and the group) for the year ended 5 April 2021. The Trustees confirm that the Annual Report and financial statements of the charity and the group comply with the current statutory requirements, the requirements of the charity and the group’s governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (second edition of the Charities SORP (FRS102) October 2019).

The Trustees are committed to remaining completely abreast regarding developments in charity law and regulations. The Trustees have complied with their duty under Clause 17(5) of the Charities Act 2011 to have due regard to guidance published by the Charity Commission.

OBJECTIVES AND ACTIVITIES

The Mrs L D Rope Third Charitable Settlement is regulated by a Trust Deed dated 22 October 1984 as amended by supplemental deed dated 23 July 2004. Lucy Rope, the Founder, was driven during her time to work to help those in great need.

It is with great sadness that the Trustees report the death of Crispin Rope, son of the Charity’s Founder in February 2021. As Lead Trustee, Crispin’s significant commitment to the work of the Charity has secured its long-term future ensuring help and support for those in need. The Trustees are committed to continuing this work and have reviewed the Founders Wishes in a Resolution drawn up on 3 June 2021. The Charity’s purposes, in accordance with the Trust Deed, the Founder’s Wishes, and a Resolution of the Trustees on 3 June 2021, are described below:

Relief of Poverty

The relief of poverty is focused on supporting individuals in the “Primary Area” of Ipswich and South East Suffolk, restricted to those who are referred by field professionals such as housing or probation officers on whose informed advice the Trustees can rely. Grants are also made to institutions, generally limited to those that are small and operating in the Primary Area. The Trustees may support certain other causes and individuals in poverty where the Trustees or the Founder’s family have specific knowledge and experience. It is the Trustees’ intention to provide support in the UK and throughout the world for those who are little catered for by other charities or by grants from governments or other authorities and are in particularly deprived areas. The Trustees may also donate to charitable institutions involved in disaster relief.

Advancement of Education

The Trustees will support educational projects, particularly in areas of greater poverty, with emphasis on the Primary Area. Funding of fees for private education will not be supported.

General Charitable Purposes

Public and other charitable purposes in the general region of South East Suffolk and in particular the parish of Kesgrave and the areas surrounding it, including Ipswich.

Founder’s Wishes regarding the activities of the Charity

The Founder also set up three other charities, each of which has different objectives and all of which have quite different policies to this Charity. The Founder wished this Charity to have regard to the needs of these other three charities. The Charity’s staff provide help and assistance to Mrs L D Rope’s Second Charitable Settlement and the programmes they are running.

A specific wish of the Founder was to safeguard the future of Kesgrave Catholic Church which is held by the Charity. The Trustees have an obligation to provide the church to the RC Bishop of East Anglia for services and to maintain the fabric of the church.

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

GRANT MAKING POLICIES

Grants to individuals

The Trustees give priority to people struggling to live on little income within the Primary Area. Of the individuals assisted, all are referred by field professionals such as housing or probation officers, working in the Charity’s preferred geographical area on whose informed advice the Trustees can place reliance.

Grants to institutions

The Charity receives many applications from institutions which are local to the Charity’s Primary Area and from those which are further afield. However, grants are rarely made to charities outside the Primary Area and are usually one-off and small in scale. Precedence is given to institutions which are:

Unfortunately, the Charity is unable to consider applications from the following:

Main activities to further the Charity’s purposes for public benefit

The Charity continues to meet the challenge of doing as much as it can to help relieve poverty at a time when demand from those in need of help continues to increase. The Trustees are pleased to be able to report that total grant-making for the year amounted to £1,205,153 (2020: £1,200,571).

Grants to individuals

Supporting individuals in need in the Charity’s Primary Area of Ipswich and East Suffolk continues to be regarded by the Trustees as being its first priority. However, the number of grants made to individuals during the year, at 2,212 and amounting to £598,490 (2020: £742,669), was noticeably lower than in recent years. The reduction in expenditure on individual grants during the year resulted chiefly from a combination of the first Covid-19 lockdown in March 2020 and the revival of Suffolk County Council’s Local Welfare Assistance Scheme (LWA Scheme). During the first national lockdown, starting in March 2020, many of the “front-line” agencies which

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

usually refer service users to the Charity for grants were not able to operate at full capacity, if at all, and thus the number of applications received were far fewer. However, as the year progressed, referring support workers found new ways to help and, with the easing of restrictions, applications for help for individuals began to pick up. In summer 2020 Suffolk County Council revived their LWA Scheme, where they had secured funding which enabled them to offer help to people in need living in Suffolk specifically because of Covid-19 with grants for furniture and white goods. This meant that individuals who would typically have been referred to the Charity were having their needs met by this scheme.

Despite the help provided by the LWA Scheme, over 60% of the Charity’s grants to individuals were for furniture, white goods and carpets. These grants were made to individuals and families either because they were not eligible for an LWA grant as the need was not Covid-19 related or they may have needed items over and above those awarded to them by the LWA Scheme.

The Charity continued to help individuals and families with grants for rent deposits and to help clear rent arrears. However, the amount spent here decreased significantly from £94,199 last year to £42,910. This was in line with the general reduction in individual grants made but also reflects the government’s policy on banning evictions during the Covid-19 crisis.

The remainder of the grants to individuals were made to people with a wide range of needs, such as clothing, footwear, food, school uniforms, forms of ID, bus passes, etc. The amount per grant for these items also varied from, for example, as little as £10 for a replacement birth certificate to £400 to help towards the cost of food and utilities for a few weeks.

Grants to institutions

Supporting institutions remains the Trustees’ second priority for giving. However, during the year grants to institutions amounted to £606,663 (2020: £457,902) which exceeded grants made to individuals (the Trustees’ first priority). The increase in grant making to institutions during the year provided a good alternative to providing help for individuals and families in the Charity’s Primary Area when individual grant making was difficult to achieve during the Covid pandemicfor the reasons mentioned above. This was because many of the institutions supported were able to help individuals and families with food parcels, laptops and other devices, online support and counselling groups, etc. It is estimated that the Charity was able to help at least 2,750 individuals or families during the year in this way. Grants made to institutions specifically in response to requests relating to Covid-19 amounted to £112,518.

The Charity aims chiefly to direct its grant making towards institutions which provide essential services to individuals in the Primary Area and who have the greatest need of help. During the year many institutions have had to find different ways of engaging with their clients who they were typically used to meeting face to face. Added to this was the problem of not being able to maintain traditional fundraising activities which resulted, in some cases, in a serious loss of income. This year grants to institutions in the Primary Area of Ipswich and East Suffolk amounted to just over 70% of total spending on grants to institutions.

A smaller proportion of grants were also made to institutions lying outside the Charity’s Primary Area. As in previous years, in these cases the institutions involved were often closely related to the lives and work of past and present family members and, as well as relieving poverty, encompassed the Charity’s other guidelines for giving.

Developing countries continued to have a place in the Charity’s grant making but for the last few years have been at a much reduced level as the priority has been to focus on supporting individuals and institutions in need in the Primary Area. The Trustees are also mindful of the practical difficulties of supporting and monitoring charitable institutions located and operating in developing countries. The policy therefore for international grant making is to maintain funding for UK-based institutions who have overseas operations and with which the Charity has a relationship, and which need continuing help. Grants for work overseas through such organisations amounted to £37,700 for the year (2020: £25,151).

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Major institutional grants in the year are referred to below.

Institution Description Amount
Ormiston Families, Ipswich Two year commitment towards the running
costs of the YouCanBe Project which aims to
educate and support young women at risk.		 £30,000
Felixstowe & District Citizens
Advice		 Grant towards Money Advice and Financial
Capability provision.		 £26,000
Disability Advice North East Suffolk,
Lowestoft		 Two year commitment towards supports costs
for benefits appeals work.		 £25,000
Level Two Youth Project,
Felixstowe		 Two year commitment towards core costs of
running the youth club and associated projects.		 £24,000
Disability Advice Service East
Suffolk, Martlesham Heath, Ipswich		 Two year commitment towards premises costs
(i.e. rent, service charge and utilities).		 £24,000
Leiston Citizens Advice Grant towards salary of Deputy Manager and
Financial Capability provision.		 £21,000
Ipswich Academy Two grants: one for provision of hard
playground to provide much-needed extra
outdoor space; the other towards rewards
system to promote positive atmosphere and
pupil motivation.		 £17,644
St Elizabeth Hospice, Ipswich Two grants: one towards core costs due to lack
of usual income during Covid-19; the other
towards bereavement counselling service.		 £16,000
Museum of East Anglian Life,
Stowmarket		 Three year commitment towards costs of
delivering volunteer programmes.		 £15,000
Worth Abbey, Sussex Grant towards funding shortfall for the Brighton
Mission run by Worth Abbey.		 £15,000
The Mix, Stowmarket Grant towards coaching /mentoring provision
for young people.		 £15,000
Bury St Edmunds Volunteer Centre Grant towards developing Suffolk Carers
Matter/Later Life Community Connect projects.		 £15,000
Raedwald Trust, Ipswich Pupil
Referral Units		 Six grants for food vouchers/parcels for
vulnerable families; hardship fund; school
leavers’ sweatshirts; and Christmas presents
for disadvantaged pupils.		 £11,360
Lighthouse Women’s Aid, Ipswich Grant towards cost of employing a Crisis
Intervention Worker at women’s refuge.		 £11,000
Westbourne High School, Ipswich Three grants for food parcels for vulnerable
families and 15 devices to enable online virtual
lessons during Covid-19 school closures.		 £10,400

In addition to the above major grants, noting the change in grant-making detailed above, the Charity also made 17 grants of a value between £5-10,000 totalling £101,000 and 124 grants of less than £5,000 totalling £193,000.

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

ANAYLSIS OF GIVING

The tables below show an analysis of giving falling within this year’s financial statements analysed by type of need and by location, separately for giving to individuals and giving to institutions.

Anaylsis by type of need

Giving to Individuals Giving to Institutions Giving to Institutions
£ £
Relief of poverty 598,490 216,578
Advancement of education - 62,808
Other charitable - 327,277
598,490 606,663
Anaylsis by location
Giving to Individuals Giving to Institutions
£ £
Ipswich/South-East Suffolk 598,490 429,963
Other UK - 139,000
Overseas - 37,700
598,490 606,663

Anaylsis by location

ACHIEVEMENTS AND PERFORMANCE

Financial review

Charity performance for the year

Total income for the year amounted to £1,800,962 (2020: £1,714,767), including a gift aid receipt of £480,246. Excluding this receipt, income showed a decrease of 23% on the prior year. Of this, dividend income comprised £1,081,997 (2020: £1,435,212) which reflects the completion of the portfolio restructuring that took place in the prior year and also some changes in the current year, alongside a general decrease in dividends being paid by companies.

The Trustees anticipate that dividend income will continue at a reduced level during the forthcoming financial year following the Covid pandemic as highlighted by many market commentators.

Income from letting investment property held by the Charity amounted to £207,399 (2020: £215,344). The reduction was due to a commercial rent concession agreed by the Trustees as a result of the Covid Pandemic.

Interest income fell by 51.5% to £24,480 (2020: £50,467) following base rate reductions in March 2020. Whilst the Trustees invested in a number of fixed interest accounts at favourable rates prior to these changes there has been a marked impact over the course of the year. The Trustees have introduced the facilities of a cash management platform to further spread cash balances and achieve additional returns. Following a review of cash reserves alongside reducing investment income, the Trustees agreed to invest further monies into the investment portfolio. As a result, cash balances decreased by £3,443,377 ending the year at £8,640,153 (2020: £12,083,530).

Investment management costs showed a slight increase over the year following further investment into the investment portfolio at £197,668 (2020: £180,499).

Expenditure on charitable activities amounted to £1,504,784 (2020 £1,478,861) of which grant-making amounted to £1,205,153 (2020: £1,200,571). In addition, the share of total support costs charged to charitable activities amounted to £271,227 (2020 £235,475). This is the share of staff and office costs incurred in respect of grantmaking. There is considerable complexity in administering the many small, individual grants made by the charity and this level of "administration cost" continues to represent an efficient cost ration of 20.64% (2020 16.75%).

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

The Charity's staff are the most significant part of the total costs of operating the charity. They are pooled together with other costs of running the office (administration services, IT support, insurance and legal and professional fees) before being allocated between investment management, charitable activities and governance. Total remuneration costs for the year amounted to £199,289 (2020 £162,539).

The Charity reported a net surplus for the year of £98,512 (2020: £55,407) before recognising gains net of losses on the revaluation of investments.

The gain on revaluation of investments amounted to £14,519,360 (2020: loss £9,000,045) which comprised realised gains on the disposal of investments of £254,986 (2020: £578,150) and unrealised gains on the revaluation of the investment portfolio of £14,264,374 (2020: loss £9,578,195).

Subsidiary trading company

The consolidated financial statements incorporate the Charity and its subsidiary company, The Kesgrave Covenant Ltd (KCL). KCL is engaged in managing and developing land and buildings - a commercial activity not generally directly related to the activities of the Charity, albeit a part of the profit derives from work done for the Charity in relation to its own investment properties and interests in land.

The Charity was given the shares in its trading subsidiary and has not had to contribute any funds to that company. The contribution of the trading subsidiary to the income of the Charity has been substantial in the past and a gift aid payment of £480,246 (2020: £Nil) was made to the Charity in the current year. It is important to emphasise that the Charity and KCL operate completely independently of each other and that the Charity in no way underwrites the obligations of its subsidiary.

KCL has progressed opportunities for the long term development of land and buildings. The sale of the North Ipswich housing development in which KCL already has an interest completed during the course of the current financial year resulting in the write back of the remaining provision for legal and professional fees of £116,545. KCL is due to receive an agency fee for its services in relation to this project in the new financial year. The level of this fee is in negotiation. In addition, work continues to progress on a possible opportunity to develop further land in north east Ipswich. Work on the project has yet to generate income but developmental costs are being incurred as they arise and being written off. KCL reported a loss of £344,463 (2020: loss of £13,337) for the year.

KCL remains financially strong having followed a stated policy, supported by the Trustees, of retaining sufficient profit in the business to maintain equity capital at around the current level of £1,036,429 (2020: £1,223,078).

Following the death of Crispin Rope, as director, the Trustees and the remaining director are considering the future ownership structure of KCL.

Risk management

The Trustees have assessed the major risks to which the Charity and the group is exposed, in particular those related to the operations and finances of the Charity and the group, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

The Trustees actively participate in the assessment of risk which is considered, in terms of identifying any significant changes in risk, at all Trustee Boards. The risk management process addresses risk at three levels:-

The Trustees document the risk assessment and action taken to mitigate risk in the Risk Register which provides a profile of all the identified risks. Major risks that have been identified by the review process are as

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

follows:

The Charity relies upon its staff and the relationships they have developed with agencies and support workers to ensure Charity's support reaches those in need as swiftly as possible. The health and well- being of staff is of high importance to the Trustees who have particularly assessed the impact of the risk of a member of staff developing Covid-19 on its operational activities and implemented a mitigation policy. If the Charity Trustees do not regularly review and monitor compliance with the Covid-19 risk assessment in line with government guidelines, the Charity may not be able to meet its charitable objectives for a period of time should a member of staff contract Covid-19 requiring all of the Charity's staff to self-isolate.

The Charity's risk programme has resulted in a comprehensive insurance programme being put in place to cover ' public, employee and officer s liability and material damage risks but there is nonetheless a remote possibility that a claim, particularly where public liability is concerned, may not be fully insured, but it would be an "exceptional" claim.

The Trustees have satisfied themselves that any actions necessary to manage the risks that have been identified have been taken and that any residual risk is acceptable. The Charity's risk profile is consistent with the level of risk that the Trustees are willing to accept.

FINANCIAL REVIEW

Reserves policy

Reserves policy as regards normal income

The reserves policy seeks to maintain distributable reserves between a "minimum" level below which free reserves must not fall and a "maximum" up to which reserves may be held.

The minimum figure for reserves has been agreed by the Trustees at 6 months' income averaged over a threeyear period. And the maximum is calculated as twice the average of income over the last three years plus gift aid. Although the basic policy is based on no gift aid payments being received from KCL.

This ensures that the Charity will, in all normal circumstances, have a reserve sufficient to allow grants in a particular year to rise to 150% of the normal amount.

The minimum reserves requirement figure set by the policy is £816,450 (2020: £774,000) and the maximum is £3,345,841 (2020: £3,111,412).

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Reserves policy - Gift Aid receipts

Gift aid receipts can be quite large but will only occur at intervals. The policy is to treat gift aid receipts for reserve purposes as accruing evenly over the 6 years following the year in which they are received. This policy ensures that a sudden large gift aid receipt can be spent wisely in accordance with the Charity's policies and not have to be paid out at short notice for purposes which are not part of the Trustees' policies for priority.

Going Concern

The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. The Covid-19 pandemic has had little impact on the grant-making ability of the Charity to date although it is anticipated that the requests for grants will increase as the restrictions from the pandemic are lifted. As a grant making charity with strong reserves and few on-going commitments, whilst this may lead to a draw on reserves it will not affect the Charity's ability to continue as a going concern. There are no material uncertainties affecting the current year's accounts.

Charity's Funds

The Charity's total reserves as at 5 April 2021 amount to £73,626,842 (2020: £59,005,190) and comprise:

Fund 2021 2020
£ £
Unrestricted General Funds 4,796,474 5,293,189
Expendable Endowment 67,543,936 52,081,106
Trading subsidiary 1,286,432 1,630,895
73,626,842 59,005,190

The free reserves of the Charity amount to £1,456,466 (2020: £1,737,856) and are calculated as follows

Fund 2021 2020
£ £
Unrestricted General Funds 4,796,474 5,293,189
Less Designated Funds (3,340,008) (3,555,333)
1,456,466 1,737,856

and which is within the Charity's reserves policy range set out above.

The Charity's Unrestricted General Fund includes an Unrestricted Designated Fund set aside by the Trustees representing properties held for charitable use and which stands at £3,215,008 (2020: £3,430,333). The properties held for charitable use comprise Kesgrave Catholic Church, flats available for charitable use and the Charity's offices at St William Court, Kesgrave. The Charity also held a further property for charitable use at the year end at Foundation Street, Ipswich. This property was sold post the year end.

The Church Maintenance Fund of £125,000 (2020: £125,000) is also held as an Unrestricted Designated Fund. The Trustees expect that the Church Maintenance Fund will be spent within 10 - 15 years. The Trustees therefore review the balances held in this designated fund against this benchmark unless it has been agreed that a different period is more appropriate based on the reason for the designation. Where the fund has not been spent within the benchmark period, the Trustees will determine whether the fund is likely to be committed in the near future and the extent to which there is a continuing need for the designated fund. Where it is decided that the designation is no longer necessary or the designated fund has been inactive for more than 15 years, the fund is closed and transferred to reserves.

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

Plans for the future

Both the near term and long term future will bring considerable challenges for the Charity. The Charity is fortunate to be in a strong financial position but even so care will be needed to be sure that grant making remains consistent with the need to maintain the strength of the endowment. In a world where there are ever increasing demands for help from the poor, especially arising from the economic and social impact of the Covid19 pandemic, it will be necessary to focus what resources the Charity has towards those in most need and where the greatest difference can be made.

The programmes to help the poor in the Charity's own local area of East Suffolk are already the Charity's largest commitment and they are expected to expand further over the coming years. The pattern already seen so clearly of more families on low incomes finding themselves unable to cope as the state restricts benefits has been pronounced following the government's decision to hold the freeze on welfare benefits and to continue with the roll out of Universal Credit in spite of compelling evidence that many recipients are being dragged further into poverty. With these pressures, inflation set to rise and the, as yet fully unquantified impact of the Covid-19 pandemic, the Charity anticipates more families will need to seek its help. Arising from the operational impact of the Covid- 19 pandemic the Charity's staff are developing enhanced online systems of direct funding with local agencies and support workers to ensure individuals continue to get the support they need whilst protecting the Charity's staff and maintaining the relative anonymity of the Charity. The estimated implementation cost of £18,000 will be offset predominantly by savings in stationery and other office renewables albeit the main driver is enhancing the speed and reach of direct funding and enabling the Charity’s activities to be undertaken at remote locations should staff need to be able to work from home.

Charitable institutions working in the Charity's local area will also be looking towards continued support as many are facing increasing financial pressures. The institutions supported by the Charity are those providing essential help to the poor in the local area. The Trustees are committed to increasing the help provided by working with new institutions as well as those already supported.

In respect of grant making to developing countries, the Charity is not seeking new opportunities but has continued to support UK institutions with which the Charity has had long relationships. Other than these relationships, in recent years the Trustees have chosen to channel a much-reduced level of support through specialist agencies based in the UK who then fund overseas projects and aid. The Charity's support for charities with overseas operations continues to run at a historically low level and this is likely to remain so in future.

INVESTMENT POLICY AND OBJECTIVES

Investment objectives

The Trustees take into account the Founder’s Wishes to bear in mind the possibility of "disaster" risks but still take very much into account the advantages of a very long term investment horizon. The Charity does not use leverage of any type, including both straight borrowing (which includes short selling) and borrowing by implication (which includes all types of derivatives).

Investment policy

Investments are held in accordance with the powers available to the Trustees, who have very wide investment powers, contained in the governing document.

The Trustees' approach to developing an investment strategy has been to deploy the wide powers of investments under the Trust Deed to develop an investment strategy that is "balanced" between the three principal asset classes of equities, physical property and cash but with a bias towards investing in real assets over the long term in order to deliver a strong return on the endowment. The strategy is encompassed within a Statement of Investment Principles which is reviewed on a regular basis. Over the last thirty years this objective of a strong return from "balanced investments" has been achieved.

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

As regards ethical considerations, direct investment is not permitted in companies engaged principally in gambling or the manufacture and/ or sale of tobacco products or armaments.

During the financial year the Trustees finalised the development of a revised Statement of Investment Principles which identifies and maintains the investment philosophy of the Founder and within this, has created a framework that produces an appropriate asset allocation policy, manages the rebalancing of assets, and selects suitable investment managers.

At the financial year end, the investment strategy comprised the following main principles:

Investment performance

The net assets of the Charity at the year-end amounted to £73.6m (2020 £59.2m), allocated as follows:

2021 2020
£m % £m %
Listed investments 54.7 74 35.5 60
Property 9.2 13 10.0 17
Cash on deposit plus net current 9.7 13 13.7 23
assets /inc.Iongterm liabilities
Total netassets 73.6 100 59.2 100

The value of the Charity's listed investment portfolio has shown significant growth over the financial year after the marked reduction in value at the last year end as markets reacted at that time to the worldwide Covid-19 pandemic. The Trustees' consider that the investment strategy, built for the long term, will continue to weather the current storm.

The performance of the Charity's investments over the financial year showed positive income returns after costs of, on average, 2.4%. It is worth noting that whilst grant-making slowed markedly initially following the commencement of lockdown on 20 March 2020, as noted earlier in this report, the Charity’s giving reached similar levels to that in previous years by the year end. Excluding the gift aid receipt, the Trustees accepted that there would be a small dip into the Charity’s unrestricted reserves to maintain the Charity’s support to those in need during the most extraordinary of times.

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The name of the Charity is the Mrs L D Rope Third Charitable Settlement, regulated by Trust Deed dated the 22nd October 1984, as amended by a supplemental deed dated 23 July 2004 and a Resolution of the Trustees dated 3 June 2021,. The Trustees were incorporated under the name of "The Trustees of the Mrs L D Rope Third Charitable Settlement" by order of the Charity Commissioners on the 10 February 1994.

The Trust is a general charitable trust but having regard to directions given or wishes expressed by the Founder, Mrs L D Rope. The expressed detailed Founder's wishes were written, most formally on 15 June 1993, 27 February 1995, 22 May 1997 and 24 June 1999.

Capital is only to be distributed in the most exceptional of circumstances. Income is distributed at the Trustees' discretion subject to the Founder's Wishes.

The Trustees have wide powers of investment under the terms of the Trust Deed.

Appointment of Trustees

The policy for the selection of Trustees is based on the need to have individuals who have the ability as well as the inclination to lead and direct the Charity and build on the fine record of innovative grant making. The power of appointment of new Trustees rests with the exiting Trustees from time to time . All Trustees are currently appointed for fixed terms. Attention is also given to Founder's Wishes in relation to having family members as Trustees where individuals with appropriate skills are available.

Policies adopted for the induction and training of trustees

On appointment new Trustees are given copies of all the Charity's fundamental documentation, copies of recent annual reports and the minutes of meetings of the Trustees, and some background information on Charity Law.

Training includes structured trustee training and seeing some of the Charity's property interests, participating in ongoing sessions on investment policy, and working with the Charity's staff in visits, etc., in connection with specific aspects of grant making.

Organisational structure and decision making

The key management personnel of the two legal entities comprising the group are the Trustees of the Charity and the Directors of Kesgrave Covenant Ltd.

Mrs Ellen Jolly, as Chair of the Trustees, has the lead role in managing the Charity on a day to day basis. Mrs Jolly continues to be supported in her work by a team of Trustees who bring a considerable depth of skill and experience to bear on the Charity's work and they are well placed to drive the Charity forward.

Crispin Rope passed away during the current financial year.

The Charity needs to employ sufficient staff to administer a broadly based programme of charitable giving while at the same time a breadth of skills are needed, including accounting and administration to support our charitable activities. The Trustees have always sought to employ high calibre people, to provide training to develop staff skills and to retain staff. At the beginning of the financial year, the Charity appointed a Chief Financial Officer to support the Trustees in the financial, governance and oversight of the Charity. The Charity's staff, working to the objectives and procedures prescribed by the Trustees, undertake the Charity's work on a day to day basis, with the Trustees' providing oversight and governance. The Trustees recognise the contribution being made by the staff to the success of the Charity and would once again like to express their thanks to all members of the staff who are working so well together as a close knit team.

Page 12

THE MRS L D ROPE THIRO CHARITABLE SETTLEMENT TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED S APRIL 2021 Funds held as ¢ustodièn No assets are held by the Charity for another charity. The 5hare5 in The Kesgrave Covenant Limited are held by Mr Jeremy Heal in his capacity as Trustee on behalf of the Charity and the certificates are held by the Charrty's solicitors for safe custody. Equal OPPOTtunilies policy This policy covers all aspects of equal opportunities for employment and recruitment. Trustees, responsibility statement The Trustees are responsible for preparing the Trustees. Report and the financial statements in accordance wrth applicable law and United Kingdom Accounb'ng Standards (Uniled Kingdom Generally Accepted ABcounting Practice). The law appli¢able lo charities in England & Wales requires the Trustees lo p￿pare financial slatemenls for each financial year vhich give a true and fair view of the state of affairs ol the charity and the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements. the Trustee$ are required lo.. select SUitatAe accounting policies and then apply them consistenlty.. obseNe the method5 and principles in the Charitie5 SORP., make judgmen15 and accounting estimates that are reasonable and prudent., prepare the financial statements on the going concem basis unles5 it is inapprclpriate to presume that the group will continue in operation. The Twstees are responsible for keeping proper accounting records that are sufficient to show and explain the charity and the group's Iransactstsns and disclose Mith reasonable accuracy at any time the financial position of the group and enable Ihem lo ensure that the financial statements comply wilh the Charities Act 2011, the Charity (Account5 and Reports) Regulation$ 2008 and the provisons of the trust deed. They are also r&sponsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps lor the prevention and detection of fraud and other irregularities. Approved ¥1 A by order SE &QXI the members of the board of and signed on their behalf by.. Trustees on Mr5 Elle Trustee Mary Jolly Mrs Cat Trustee ne Susanne Judlth Scott Page 13

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

OPINION

We have audited the financial statements of The Mrs L D Rope Third Charitable Settlement (the 'parent charity') and its subsidiaries (the 'group') for the year ended 5 April 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Income and Expenditure Account, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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 Trustees with respect to going concern are described in the relevant sections of this report.

Page 14

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which 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 Group's and the parent 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 Group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Page 15

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Auditors' 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 is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the Group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we;

Page 16

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT (CONTINUED)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

USE OF OUR REPORT

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Peters Elworthy & Moore Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA

Date: 12 August 2021

Peters Elworthy & Moore are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 17

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

Note
INCOME AND ENDOWMENTS FROM:
Charitable activities
4
Income generated by subsidiary
5
Investments
6
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON:
Raising funds:
7,16
Investment management
. Subsidiary trading costs
Charitable activities
8
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE NET GAINS/(LOSSES) ON
INVESTMENTS
Net gains/(losses) on investments
16
NET INCOME/(EXPENDITURE)
Transfers between funds
22
NET MOVEMENT IN FUNDS BEFORE
OTHER RECOGNISED
GAINS/(LOSSES)
OTHER RECOGNISED
GAINS/(LOSSES):
Losses on revaluation of fixed assets
15
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Endowment
funds
2021
£
-
74,332
7,067
81,399
100,344
(54,384)
-
45,960
35,439
15,240,156
15,275,595
(480,246)
14,795,349
-
14,795,349
53,712,001
14,795,349
68,507,350		 Unrestricted
funds
2021
£
6,840
-
1,313,876
1,320,716
97,326
-
1,504,780
1,602,106
(281,390)
-
(281,390)
480,246
198,856
(223,825)
(24,969)
5,293,189
(24,969)
5,268,220		 Total
funds
2021
£
6,840
74,332
1,320,943
1,402,115
197,670
(54,384)
1,504,780
1,648,066
(245,951)
15,240,156
14,994,205
-
14,994,205
(223,825)
14,770,380
59,005,190
14,770,380
73,775,570		 Total
funds
2020
£
13,744
4,087
1,717,728
1,735,559
180,499
(370,922)
1,478,861
1,288,438
447,121
(8,997,279)
(8,550,158)
-
(8,550,158)
-
(8,550,158)
67,555,348
(8,550,158)
59,005,190

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 23 to 51 form part of these financial statements.

Page 18

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021

Note
INCOME AND ENDOWMENTS FROM:
Charitable activities
4
Investments
6
TOTAL INCOME AND ENDOWMENTS
EXPENDITURE ON:
Raising funds:
Investment management
7
Charitable activities
8
TOTAL EXPENDITURE
NET (EXPENDITURE) / INCOME BEFORE
INVESTMENT GAINS/(LOSSES)
Net gains / (losses) on investments
16
NET (EXPENDITURE) / INCOME BEFORE
OTHER GAINS AND (LOSSES)
Gains on revaluation of fixed assets held for
charity’s own use
15
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Endowment
funds
2021
£
-
-		 Unrestricted
funds
2021
£
6,840
1,794,122		 Total
funds
2021
£
6,840
1,794,122		 Total
funds
2020
£

13,744
1,701,023
- 1,800,962 1,800,962 1,714,767
100,344
-		 97,326
1,504,780		 197,670
1,504,780		 180,499

1,478,861
100,344 1,602,106 1,702,450 1,659,360
(100,344)
14,676,588		 198,856
-		 98,512
14,676,588		 55,407
(9,000,045)
14,576,244
-		 198,856
(223,825)		 14,775,100
(223,825)		 (8,944,638)
-
14,576,244 (24,969) 14,551,275 (8,944,638)
68,168,933
59,224,295
53,931,106
68,507,350		 5,293,189
5,268,220		 59,224,295
73,775,570

All activities relate to continuing operations.

The notes on pages 23 to 51 form part of these financial statements.

Page 19

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT CONSOLIDATED BALANCE SPIEET AS AT S APRIL 2021 2021 2020 Note FIXED ASSETS Tangible assets Investments 15 16 3.235,953 68.129.153 3,450.889 52,480,949 40,000 Pro9ramme related investments 17 71,365,106 55,971.838 CURRENT ASSETS Debtors Cash at bank and In hand 18 587.143 3,2S8.874 1.267,839 2,616,925 3,846,017 3,884,764 Creditors.. amounts falling due within one year 11,300,776} 1595,8361 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT UA81LITIES 2,S45,241 3.288,928 73,910.347 59,260,766 Creditors.. amounts falling due after more than one year Provisions for liabilities 20 146,2771 188,$001 129,827) 1225,749) TOTAL NET ASSETS 73.775.570 59.005,190 CHARITY FUNDS Endowment funds Unrestricted funds 22 22 68.507.350 5.268,220 53.712.001 5.293,189 TOTAL FUNDS 73.775.570 59,005,190 The financial ststemenls were approved and aulhoTised for issue by the Trustees ar￿ Signed on their behalf by.. Mrs Ellfrn Mary Jolly Trustee Mrs C•th&rl Trustee Susanne Judlth Scott The notes on pages 23 10 51 fomi part ol these financial ¥latement$. Page 20

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT CHARITY BALANCE SHEET AS AT S APRIL 2021 2021 2020 FIXED ASSETS Tangible assets Investments Programme related investrnents 15 3.235,953 69,415,585 3.450.889 54.330,949 40,000 16 17 72.651,538 57.821,838 CURRENT ASSETS Debtors Cash at bank and in hand 18 517,479 1,002,135 1,206,857 610.387 1.519,614 1,817,244 Creditor5.' amounts falling due wlhin one year 19 349,3051 1384,9601 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 1,170.309 1,432.284 73.821.847 59,254,122 Creditors.. amounts falling due after more Ihan one year 20 146,2771 129.827} TOTAL NET ASSETS 73.775,570 59.224,295 CHARITY FUNDS Endowment funds 22 68.507.350 5.26B,220 53.931,106 5,293,189 Unrestricted funds 22 TOTAL FUNDS 73,77S,570 59,224,295 The financial statements were approved and aulhorised for issue by the Trustees and signed on their behalf by.. Mrs Ellen Mary Jolly Trustee Mrs Cath¢ Trustee g Susanno Judith Scott The note5 on pages 23 10 51 form part of these financlal statements. Page 21

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2021

CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Proceeds from sale of investments
Repayment of programme related investments
NET CASH PROVIDED BY INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
NET CASH PROVIDED BY FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
The notes on pages 23 to 51form part of these financial statements		 2021
£
(139,490)
1,320,943
(14,229)
(408,047)
40,000
938,667
-
799,177
2,616,925
3,416,102		 2020
£
(1,577,264)
1,717,728
(6,685)
26,237
-
1,737,280
-
160,016
2,456,909
2,616,925

Page 22

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

1. GENERAL INFORMATION

The Mrs L D Rope Third Charitable Settlement is a unicorporated charity registered in England. The Charity's registered office is Lucy House, St. William Court, Kesgrave, Ipswich, Suffolk IP5 1QP.

The Charity is parent to The Kesgrave Covenant Limited, a company incorporated in England.

The Charity's functional and presentational currency is GBP.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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) (Second edition Otoctober 2019 - effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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 the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Mrs L D Rope Third Charitable Settlement meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

Page 23

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. ACCOUNTING POLICIES (CONTINUED)

2.2 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Expendable endowment funds are funds which provide the trustees with a power to convert all or part of the gift into income. The income and expenditure generated from/by the endowment gift are to be allocated to the endowment fund.

Investment income, gains and losses are allocated to the appropriate fund.

The aim and use of each fund is set out in the notes to the financial statements.

2.3 GOING CONCERN

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

2.4 INCOME

All incoming resources are recognised once the Charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of the incoming resources can be measured with sufficient reliability with the exception of certain investment income referred to below.

Donated facilities are included at the Trustees best estimate of the value to the Charity. No amounts are included for services donated by volunteers.

Interest is accounted for on an accruals basis and is shown inclusive of the recoverable income tax.

Income from Grange Farm Landowners is accounted for when notified of a receipt with the exception of rental income which is recognised on an accruals basis.

Dividend income is accounted for in the period within which the Charity is entitled to receipt. Income from property funds are recognised by reference to the payment date and are shown inclusive of recoverable UK income tax.

Income from investment properties is recognised on an accruals basis.

Page 24

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. ACCOUNTING POLICIES (CONTINUED)

2.5 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Overhead and support costs have been allocated between costs of generating funds, charitable activities and governance. Staff costs are allocated on the basis of a best estimate of time spent by each member of staff and their cost on each activity. Similarly other costs ate allocated on the basis of the purpose of the expenditure. The allocation of overheads and support costs is analysed in the notes to the financial statements.

Costs of raising funds consist of the costs of managing the investment portfolio and investment property together with the property development costs of the trading subsidiary.

Costs of charitable activities include grant making and an apportionment of overhead, support costs and governance costs. Grants for institutions are recognised when the offer is indicated to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. Grants for individuals can not be quantified at the time a commitment is made and they are therefore accounted for when paid. Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

2.6 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 FOREIGN CURRENCIES

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Consolidated Statement of Financial Activities.

Page 25

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. ACCOUNTING POLICIES (CONTINUED)

2.8 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets are carried at cost or valuation, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Land and buildings are included in the Balance Sheet at cost with the exception of the freehold and the leasehold flats let for charitable purposes that are at fair value and the car park for which a previous revaluation has been used as deemed cost. The Trustees carry out an annual impairment review and consequently no depreciation is charged on buildings as their estimated value is not less than their carrying cost.

Office equipment costing more than £250 is capitalised and included in the Balance Sheet at historic cost.

Depreciation is provided on a straight line basis at a rate of between one sixth and one tenth of cost per annum.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives are as follows:

Office equipment - 6 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Page 26

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. ACCOUNTING POLICIES (CONTINUED)

2.9 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.

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 sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Investment property is carried at fair value determined annually by the Trustees based on professional advice received. Fair values are derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities.

The unquoted property funds are valued at the mid market unit price nearest to the balance sheet date.

Programme related or social investments are initially recognised and measured at the amount received or paid, with the carrying amount adjusted in subsequent years to reflect repayments and any accrued interest and adjusted if necessary for any impairment.

The interest in the subsidiary is included at fair value by the Trustees.

2.10 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.11 CASH AT BANK AND IN HAND

Cash at bank and 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 account.

Page 27

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

2. ACCOUNTING POLICIES (CONTINUED)

2.12 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

2.13 FINANCIAL INSTRUMENTS

The Group only 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 measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 PENSIONS

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

Preparation of the financial statements requires management to make significant judgements and estimates.

Critical accounting estimates and assumptions:

Depreciation on fixed assets. Depreciation is estimated based on the useful economic life of the assets.

Estimation of provisions. Provisions are estimated based on expected costs to meet obligations to perform certain works in respect of previously completed land sales.

Fair value of investments. Investments are estimated based on fair value using the closing quoted market price.

Grants accrued payable in more than one year. Grants payable in more than year are estimated based on future grantee needs.

Fair value of fixed assets. Fixed assets held at fair value are estimated based on fair value using professional advice.

Page 28

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

4. INCOME FROM CHARITABLE ACTIVITIES - GROUP AND CHARITY

Unrestricted
funds
2021
£
Notional rent from charitable tenants
-
Letting of non investment property
6,840
6,840
TOTAL 2020
13,744
5.
INCOME FROM OTHER TRADING ACTIVITIES
GROUP
Endowment
funds
2021
£
Income generated by subsidiary
74,332
TOTAL 2020
4,087		 Total
funds
2021
£
-
6,840
6,840
13,744
Total
funds
2021
£
74,332
4,087		 Total
funds
2020
£
6,904
6,840
13,744
Total
funds
2020
£
4,087

Page 29

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

6. INVESTMENT INCOME - GROUP

Investment properties
Dividends and distributions from UK listed
investments
Dividends and distributions from overseas
listed investments
Dividends and distributions from unlisted
investments
Interest on cash held within investment assets
Interest on current asset deposits
TOTAL 2020		 Endowment
funds
2021
Unrestricted
funds
2021
£
£
2,800
207,399
-
710,592
-
349,727
-
21,678
4,267
24,480
-
-
7,067
1,313,876
16,705
1,701,023		 Total
funds
2021
£
210,199
710,592
349,727
21,678
28,747
-
1,320,943
1,717,728		 Total
funds
2020
£
218,144
973,003
441,198
21,011
58,278
6,094
1,717,728

The investment income to Endowment funds of £7,067 (2020 - £16,705) relates to the trading subsidiary. The Charity only investment income for the year is £1,794,122 (2020 - £1,701,023).

7. EXPENDITURE ON RAISING FUNDS

INVESTMENT MANAGEMENT - GROUP AND CHARITY

Investment property expenses
Stockbroker fees
Investment fees
Support costs
TOTAL 2020		 Endowment
funds
2021
Unrestricted
funds
2021
£
£
-
73,829
51,191
4,048
36,424
5,688
12,729
13,761
100,344
97,326
88,007
92,492		 Total
funds
2021
£
73,829
55,239
42,112
26,490
197,670
180,499		 Total
funds
2020
£
57,416
45,558
46,054
31,471
180,499

Page 30

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

7. EXPENDITURE ON RAISING FUNDS (CONTINUED)

SUBSIDIARY TRADING EXPENSES - GROUP

Subsidiary trading costs (note 16)
TOTAL 2020		 Endowment
funds
2021
£
(54,384)
(370,922)		 Total
funds
2021
£
(54,384)
(370,922)		 Total
funds
2020
£
(370,922)

8. EXPENDITURE ON CHARITABLE ACTIVITIES - GROUP AND CHARITY

Relief of poverty
Advancement of education
Advancement of religion
Other charitable
TOTAL 2020		 Activities
undertaken
directly
(note 9)
2021
£
28,450
-
(48)
-
28,402
42,815		 Grant
funding of
activities
(note 10)
2021
Support and
governance
costs
(note 11)
2021
£
£
815,068
183,433
62,808
14,135
31,357
7,058
295,920
66,599
1,205,153
271,225
1,200,571
235,475		 Total
funds
2021
£
1,026,951
76,943
38,367
362,519
1,504,780
1,478,861		 Total
funds
2020
£
1,208,729
29,718
31,832
208,582
1,478,861

In 2021 and 2020 all expenditure on charitable activities is from unrestricted funds.

Page 31

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

9. ANALYSIS OF DIRECT COSTS - GROUP AND CHARITY

Relief of
poverty		 Advance-
ment of
religion		 Total
funds		 Total
funds
2021 2021 2021 2020
Provision of accommodation
Church costs
Total 2020		 £
28,450
-
 £
-
(48)
 £
28,450
(48)

28,402
42,815		 £
41,908
907
42,815
28,450 (48)
41,908
907

10. ANALYSIS OF GRANTS - GROUP AND CHARITY

Relief of poverty
Advancement of education
Advancement of religion
Other charitable
TOTAL 2020
Relief of poverty
Advancement of education
Advancement of religion
Other charitable purposes		 Grants to
Institutions
2021
£
216,578
62,808
31,357
295,920		 Grants to
Individuals
2021
£

598,490

-

-

-		 Total
funds
2021
£

815,068

62,808

31,357

295,920
 Total
funds
2020
£

970,347

24,844

31,000

174,380
606,663
598,490
1,205,153
1,200,571







Grants to
Individuals
No'

2,212

-

-

-
2,212
457,902
742,669
1,200,571



Grants to
Institutions
No'
56
21
4
74
155

Page 32

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

11. ANALYSIS OF SUPPORT AND GOVERNANCE COSTS

Investment
Manage-
ment
(Note 7)		 Relief of
poverty
(Note 8)		 Advance-
ment of
education
(Note 8)		 Advance-
ment of
religion
(Note 8)		 Other
charitable
(Note 8)		 Total
funds		 Total
funds
2021 2021 2021 2021 2021 2021 2020
Staff costs
Depreciation
Trustees' expenses
Legal fees
Subscriptions and publications
Office costs
Audit and accountancy costs
Total 2020		 £
12,406
800
-
1,032

1,314
10,938
-
 £
126,392
3,070
-
13,988
1,338
29,143
9,502
 £
9,740
237
-
1,078
103
2,245
732		 £
4,863
118
-
538
51
1,122
366		 £
45,888
1,115
-
5,079
486
10,581
3,450		 £
199,289
5,340
-
21,715
3,292
54,029
14,050
 £
162,539
5,544
(1,295)
43,025
4,500
47,532
5,101
266,946
26,490 183,433 14,135 7,058 66,599 297,715
31,471
190,318
4,874
6,081		 34,202
266,946




Page 33

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

12. AUDITORS' REMUNERATION

2021 2020
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 15,000 13,750
Fees payable to the Charity's auditor in respect of:
Other services 4,750 4,575

13. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
168,960
12,350
17,979
199,289		 Group
2020
£
132,174
11,971
18,394
162,539		 Charity
2021
£
168,960
12,350
17,979
199,289		 Charity
2020
£
132,174
11,971
18,394
162,539

The average number of persons employed by the Charity during the year was as follows:

Group Group
2021 2020
No. No.
Staff 4 4

Page 34

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

13. STAFF COSTS (CONTINUED)

No employee received remuneration amounting to more than £60,000 in either year.

Key management personnel comprise the trustees of the Charity and the directors of the wholly owned subsidiary The Kesgrave Covenant Limited.

Mr C M Rope (deceased) and Mrs E M Jolly received no remuneration.

£nil (2020: £250) was reimbursed to Mr C M Rope (deceased) during the year in respect of travel, phone and other expenses.

Mr J P W Heal, consultant, and Mrs C S J Scott, partner, both at Messrs Howes Percival LLP solicitors, received no remuneration directly or reimbursed expenses. Howes Percival's fees for legal services are charged on an arm's length basis. Total fees payable to Messrs Howes Percival LLP incurred by the Charity were £21,717 (2020: £40,439) which includes both revenue and capital, of which £2,325 (2020: £979) was outstanding at the year end. The Charity bears a share of fees paid by Grange Farm Landowners which amounted to £nil (2020: £nil). The subsidiary incurred Howes Percival fees of £48,103 (2020: £28,732) in the course of the business of the company of which £34,156 (2020: £2,852) was accrued at the year end.

During the year, no directors of the subsidiary received any remuneration (2020: £nil).

Pension costs relate to contributions to money purchase schemes in respect of 4 employees (2020: 4).

14. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 5 April 2021, no Trustee expenses have been incurred (2020 - £250).

Page 35

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

15. TANGIBLE FIXED ASSETS

GROUP

COST OR VALUATION
At 6 April 2020
Additions
Revaluations
At 5 April 2021
DEPRECIATION
At 6 April 2020
Charge for the year
At 5 April 2021
NET BOOK VALUE
At 5 April 2021
At 5 April 2020		 Freehold
property
£
3,316,333
-
(244,825)
3,071,508
-
-
-
3,071,508
3,316,333		 Long-term
leasehold
property
£
114,000
-
21,000
135,000
-
-
-
135,000
114,000		 Office
equipment
£
101,887
14,229
-
116,116
81,331
5,340
86,671
29,445
20,556		 Total
£
3,532,220
14,229
(223,825)
3,322,624
81,331
5,340
86,671
3,235,953
3,450,889

Page 36

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

15. TANGIBLE FIXED ASSETS (CONTINUED)

CHARITY

COST OR VALUATION
At 6 April 2020
Additions
Revaluations
At 5 April 2021
DEPRECIATION
At 6 April 2020
Charge for the year
At 5 April 2021
NET BOOK VALUE
At 5 April 2021
At 5 April 2020		 Freehold
property
£
3,316,333
-
(244,825)
3,071,508
-
-
-
3,071,508
3,316,333		 Long-term
leasehold
property
£
114,000
-
21,000
135,000
-
-
-
135,000
114,000		 Office
equipment
£
101,887
14,229
-
116,116
81,331
5,340
86,671
29,445
20,556		 Total
£
3,532,220
14,229
(223,825)
3,322,624
81,331
5,340
86,671
3,235,953
3,450,889

Page 37

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

16. FIXED ASSET INVESTMENTS

Listed
investments
Unquoted
property
funds
Investment
properties
Cash and
fixed
interest
deposits
GROUP
£
£
£
£
COST OR VALUATION
At 6 April 2020
35,748,887
630,840
4,017,692
12,083,530
Additions
7,193,798
-
4,902
-
Disposals
(proceeds £3,347,903)
(3,092,917)
-
-
-
Revaluations
14,833,724
(5,154)
157,228
(628)
Cash movement
-
-
-
(3,442,749)
AT 5 APRIL 2021
54,683,492
625,686
4,179,822
8,640,153
Investment
s in
subsidiary
companies
Listed
investment
s
Unquoted
property
funds
Investment
properties
Cash and
fixed
interest
deposits
CHARITY
£
£
£
£
£
COST OR
VALUATION
At 6 April 2020
1,850,000
35,748,887
630,840
4,017,692
12,083,530
Additions
-
7,193,798
-
4,902
-
Disposals
(proceeds
£3,347,903)
-
(3,092,917)
-
-
-
Revaluations
(563,568)
14,833,724
(5,154)
157,228
(628)
Cash movement
-
-
-
-
(3,442,749)
AT 5 APRIL 2021
1,286,432
54,683,492
625,686
4,179,822
8,640,153		 Total
£
52,480,949
7,198,700
(3,092,917)
14,985,170
(3,442,749)
68,129,153
Total
£
54,330,949
7,198,700
(3,092,917)
14,421,602
(3,442,749)
69,415,585

Page 38

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

16. FIXED ASSET INVESTMENTS (CONTINUED)

PRINCIPAL SUBSIDIARIES

The following was a subsidiary undertaking of the Charity:

Name Company Registered office or principal Principal activity number place of business The Kesgrave Covenant Limited 01902478 Philip House, St William Court, Planning work, the Ipswich sale and purchase of land and property

Class of Holding Included in shares consolidation Ordinary 100% Yes

The financial results of the subsidiary for the year were:

Name Income Expenditure Profit/(Loss) Net assets
£ £ / Surplus/ £
(Deficit) for
the year
£
The Kesgrave Covenant Limited 81,399 54,384 135,783 1,286,432

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and openended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report.

The main risk to the Charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The Charity‘s investments are mainly traded in markets with good liquidity and high trading volumes. The Charity has no material investment holdings in markets subject to exchange controls or trading restrictions.

The Charity manages these investment risks by taking investment advice and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Charity does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.

Page 39

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

17. PROGRAMME RELATED INVESTMENTS

GROUP AND CHARITY

Programme
related
investments
£
COST OR VALUATION
At 6 April 2020
40,000
Repayments during the year
(40,000)
-
IMPAIRMENT PROVISION
-
NET BOOK VALUE
At 5 April 2021
-
At 5 April 2020
40,000		 Total
£
40,000
(40,000)
-
-
-
40,000

Programme related investments comprise loan for the advancement of religion £40,000 (2020 - £40,000).

18. DEBTORS

DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by participating interests
Other debtors
Prepayments and accrued income		 Group
2021
£
23,740
398,530
51,467
113,406
587,143		 Group
2020
£
23,141
974,937
74,750
195,011
1,267,839		 Charity
2021
£
6,928
398,530
8,279
103,742
517,479		 Charity
2020
£
3,726
974,937
20,433
207,761
1,206,857

Page 40

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
Group
2021
2020
£
£
Trade creditors
69,709
5,018
Other taxation and social security
43,997
60,358
Other creditors
862,835
84,860
Accruals and deferred income
79,998
132,174
Grants accrued - institutional (note 27)
244,237
313,426
1,300,776
595,836
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group
Group
2021
2020
£
£
Grants accrued - institutional (note 27)
46,277
29,827		 Charity
2021
£
63,036
-
3,657
38,375
244,237
349,305
Charity
2021
£
46,277		 Charity
2020
£
2,570
-
124
68,840
313,426
384,960
Charity
2020
£
29,827

20. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

21. PROVISIONS

GROUP AND CHARITY

Maintenance
provisions
£
At 6 April 2020 225,749
Amounts used (20,705)
Discounted adjustments (116,544)
88,500

The Kesgrave Covenant Limited has obligations to perform certain works in respect of previously completed land sales. The work is not expected to be completed within the forthcoming financial year.

The Charity has no provisions.

Page 41

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

22.
STATEMENT OF
STATEMENT OF
UNRESTRICTE
D FUNDS
DESIGNATED
FUNDS
Church fund
Unrestricted
designated
fund
Unrestricted
designated
fund - fixed
asset
revaluation
reserve
GENERAL
FUNDS
General funds
TOTAL
UNRESTRICT
ED FUNDS
ENDOWMENT
FUNDS
Expendable
Endowment
Trading
subsidiary
TOTAL OF
FUNDS		 FUNDS
FUNDS - CURRENT YEAR
Balance at 6
April 2020
£
Income
£
125,000
-
3,150,208
-
280,125
-
3,555,333
-
1,737,856
1,320,716
5,293,189
1,320,716
52,081,106
-
1,630,895
81,399
53,712,001
81,399
59,005,190
1,402,115		 Expenditure
£
-
-
-
-
(1,602,106)
(1,602,106)
(100,344)
54,384
(45,960)
(1,648,066)		 Transfers
in/out
£
-
-
-
-
480,246
480,246
-
(480,246)
(480,246)
-		 Gains/
(Losses)
£
-
(215,325)
(8,500)
(223,825)
-
(223,825)
15,240,156
-
15,240,156
15,016,331		 Balance at 5
April 2021
£
125,000
2,934,883
271,625
3,331,508
Balance at 6
April 2020
£
125,000
3,150,208
280,125
3,555,333
1,737,856
5,293,189
52,081,106
1,630,895
53,712,001
59,005,190
1,936,712
5,268,220
67,220,918
1,286,432
68,507,350
73,775,570

Page 42

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

22. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
Church fund
Unrestricted designated fund
Unrestricted designated fund -
fixed asset revaluation
reserve
GENERAL FUNDS
General Funds
TOTAL UNRESTRICTED
FUNDS
ENDOWMENT FUNDS
Expendable Endowment
Trading subsidiary
TOTAL OF FUNDS		 Balance at
6 April 2019
£
125,000
3,150,208
280,125
3,555,333
1,594,442
5,149,775
61,169,158
1,236,415
62,405,573
67,555,348		 Income
£
-
-
-
-
1,714,767
-
-
20,792
20,792
20,792		 Expenditure
£
-
-
-
-
(1,571,353)
(1,571,353)
(88,007)
370,922
282,915
(1,288,438)		 Gains/
(Losses)
£
-
-
-
-
-
-
(9,000,045)
2,766
(8,997,279)
(8,997,279)		 Balance at
5 April 2020
£
125,000
3,150,208
280,125
3,555,333
1,737,856
5,293,189
52,081,106
1,630,895
53,712,001
59,005,190

Page 43

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

22. STATEMENT OF FUNDS (CONTINUED)

The Expendable Endowment Fund represents the assets which are held permanently by the Charity. The Founder expressed the strong wish that this fund should not be spent except in the most exceptional circumstances. The cost of investment management and administration is charged to the fund. All realised and unrealised gains and losses on investment assets are accounted for in the fund. Income generated by the assets of the fund is available for utilisation by the Unrestricted Fund and has accordingly been included in that Fund. The Expendable Endowment Fund includes the investment in the trading subsidiary.

Unrestricted General Funds are funds which the Trustees are free to use in accordance with the charitable objectives.

The Church Maintenance Fund comprises funds held in readiness for the maintenance of Kesgrave Catholic Church.

The Unrestricted Designated Fund comprises amounts set aside to fund buildings held for charitable use including Kesgrave Catholic Church, property let for charitable purposes and the Charity offices and consequently the Fund is not available for distribution. All unrealised gains and losses on revaluation are accounted for in the Unrestricted designated fund revaluation reserve.

The transfer in the year represents the diminuation in the net assets of the trading subsidiary following a distribution to its Parent charity.

Page 44

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

22. STATEMENT OF FUNDS - CHARITY

STATEMENT OF FUNDS - CURRENT YEAR

DESIGNATED FUNDS
Church fund
Unrestricted designated fund
Unrestricted designated fund - fixed
asset revaluation reserve
GENERAL FUNDS
General Funds
Total Unrestricted funds
ENDOWMENT FUNDS
Expendable endowment
Total of funds		 Balance at
6 April 2020
£
125,000
3,150,208
280,125		 Income
£
-
-
-		 Expenditure
£
-
-
-		 Gains/
(Losses)
£
-
(215,325)
(8,500)
Balance at
5 April 2021
£
125,000
2,934,883
271,625
3,555,333 - - (223,825) 3,331,508
1,737,856 1,800,962 (1,602,106) - 1,936,712
5,293,189 1,800,962 (1,602,106) - 5,268,220
53,931,106 - (100,344) 14,676,588 68,507,350
59,224,295 1,800,962 (1,702,450) 14,452,763 73,775,570

Page 45

THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

22. STATEMENT OF FUNDS – CHARITY (continued)

STATEMENT OF FUNDS - PRIOR YEAR

DESIGNATED FUNDS
Church fund
Unrestricted designated fund
Unrestricted designated fund - fixed
asset revaluation reserve
GENERAL FUNDS
General Funds
Total Unrestricted funds
ENDOWMENT FUNDS
Expendable endowment
Total of funds		 Balance at
6 April 2019
£
125,000
3,150,208
280,125		 Income
£

-

-

-		 Expenditure
£
-
-
-
Gains/
(Losses)

£
-
-
-

Balance at 5
April 2020

£
125,000
3,150,208

280,125
3,555,333 - - - 3,555,333
1,594,442 1,714,767 (1,571,353) - 1,737,856
5,149,775 1,714,767
(1,571,353)		 - 5,293,189
63,019,158
-
(88,007)		 (9,000,045) 53,931,106
68,168,933 1,714,767 (1,659,360) (9,000,045) 59,224,295

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

23. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR - GROUP

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
TOTAL		 Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
TOTAL
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR - GROUP
Tangible fixed assets
Fixed asset investments
Programme related investments
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
TOTAL		 Endowment
funds
2020
£
-
51,106,169
-
3,062,890
(231,309)
-
(225,749)
53,712,001

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

23. ANALYSIS OF CHARITY NET ASSETS BETWEEN FUNDS (continued)

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR

Tangible fixed assets
Fixed asset investments
Programme related investments
Current assets
Creditors due within one year
Creditors due in more than one year
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR
Tangible fixed assets
Fixed asset investments
Programme related investments
Current assets
Creditors due within one year
Creditors due in more than one year		 Endowment
funds
2021
£
-
68,507,350
-
-
-
-		 Unrestricted
funds
2021
£
3,235,953
908,235
-
1,519,614
(349,305)
(46,277)		 Total
funds
2021
£
3,235,953
69,415,585
-
1,519,614
(349,305)
(46,277)
68,507,350 5,268,350 59,224,295
Endowment
funds
2020
£
-
53,931,106
-
-
-
-		 Unrestricted
funds
2020
£
3,450,889
399,843

40,000
1,796,811
(364,527)

(29,827)		 Total
funds
2020
£
3,450,889
54,330,949
40,000
1,796,811
(364,527)
(29,827)
53,931,106 5,293,189 59,224,295

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 24. ACTIVITIES

Net income/expenditure for the year (as per Statement
Activities)
ADJUSTMENTS FOR:
Depreciation charges
(Losses)/gains on investments
Dividends, interests and rents from investments
Decrease in debtors
(Decrease)/increase in creditors
Decrease in provisions
NET CASH USED IN OPERATING ACTIVITIES
25.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
TOTAL CASH AND CASH EQUIVALENTS
26.
ANALYSIS OF CHANGES IN NET DEBT
Cash at bank and in hand		 of Financial
At 6 April
2020
£
2,616,925
2,616,925		 Group
2021
£
14,994,205
5,340
(15,082,928)
(1,320,943)
626,193
775,892
(137,249)
(139,490)
Group
2021
£
3,258,874
3,258,874
Cash flows
£
641,949
641,949		 Group
2020
£
(8,550,158)
5,547
8,997,279
(1,717,728)
261,302
(167,000)
(406,506)
(1,577,264)
Group
2020
£
2,616,925
2,616,925
At 5 April
2021
£
3,258,874
3,258,874

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

27. GRANT COMMITMENTS

Balance at 6 April 2020 £ 343,253 New commitments £ 144,000 Cancelled commitments (£ 12,000) Commitments paid (£ 184,739) Balance at 5 April 2021 £ 290,514

Grant commitments to institutions is included within Creditors note19 and 20.

28. PENSION COMMITMENTS

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £17,979 (2020 - £18,394). Contributions totalling £nil (2020 - £124) were payable to the fund at the balance sheet date and are included in creditors.

29. RELATED PARTY TRANSACTIONS

Mr C M Rope (deceased) was, and Mrs E M Jolly is, a director of W O & P O Jolly Holdings Limited w hose subsidiary is WO & PO Jolly (Ipswich) Limited. There are recharges between the two entities in resp ect of administration, rent received, utilities and document storage from W O & P O Jolly Holdings Limited , and the charity was recharged accountancy and administration services by the company but at a rate b elow the market value of those services.

Mr C M Rope, who was a trustee, did hold shares in a company in his own name on behalf of the charity, which totalled £nil at the year-end (2020 - £192,721). The quoted company does not permit shares to be held other than by individuals.

The Mrs L D Rope Third Charitable Settlement has a beneficial interest in a bare trust, Grange Farm Landowners of which Mr C M Rope was a trustee, which holds interests in land. The charity also recognised its proportion of Grange Farm Landowners' income and costs. The charity received recharged administrative expenses and its share of Grange Farm Landowners' distributions. The balance with Grange Farm Landowners at the year-end totalled £398,530 (2020 - £1,890,589)

Related party transactions during the year are detailed below.

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THE MRS L D ROPE THIRD CHARITABLE SETTLEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021

RELATED PARTY TRANSACTIONS (CONTINUED)

2021 2020
£ £
WO & PO Jolly Holdings Limited
Administration expenses recharged (3,950) (5,336)
Rental income 6,500 6,500
Document storage 3,500 3,500
Property support, administration and accountancy services (3,328) (12,959)
MEH cost charged by Holdings (780) -
Vernon Peck (18,460) -
WO & PO Jolly (Ipswich) Limited
Document storage 1,250 -
Kesgrave Covenant Limited
Gift aid donation 480,246 -
Carlford Construction Limited
Document storage 300 -
Kesgrave Assured Tenancies Limited
Document storage 350 -
Kesgrave Second Assured Tenancies Limited
Document storage 350 -
Kesgrave Trading Company Limited
Document storage 300 -
Grange Farm Landowners
Rent received (share) 40,043 54,211
Interest received (share) 2,987 5,708
Costs (share) (6,062) (5,408)
Distributions (share) 613,375 333,375
Ground rents (7,225) (7,225)
Howes Percival
Fees incurred by Charity (20,542) -
Mr C M Rope
Administrative expenses recharged - 250

Page 51