Charity règlstratlon number 313303 Company registration numbèr 569597 (England and Wales) MARC FITCH FUND ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024 MARC FITCH FUND CONTENTS Page Council Members, report Statement of council members, responsibilities Independent auditor's report Statement of financial activities Balance sheet 10 Notes to the financial statements MARC FITCH FUND LEGAL AND ADMINISTRATIVE INFORMATION Council Members Miss L Allason-Jones Dr WJ Blair Dr H Forde Mr M Hall Professor C Payne Professor R Sweet Mr D White Dr H Summerson (Appointed 20 September 2023) (Appointed 20 September 2023) (Appointed 20 September 2023) Dr J Davis Mr J Ford Director Mr C Catling Bankers CAF Bank 25 Kings Hill Avenue Kings Hill Wesl Malling Kent ME19 4JQ Charity number 313303 Company number 569597 Registered office CIO Critchleys LLP Beavei House 23-38 Hythe Bridge Street Oxford OX1 2EP Auditor Critchleys Audit LLP Beaver House 23-38 Hythe Bridge Street Oxford OX12EP Solicitors Farrer & Co 66 Lincoln's Inn Fields London WC2A 3LH Investment advisors Brewin Dolphin 12 Smithfield Street, London EC1A9BD MARC FITCH FUND COUNCIL MEMBERS. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 5 APRIL 2024 The council members present their annual report and financial statements for the year ended 5 April 2024. The financial statements have been prepared in accordance with the accounting policies set out in nole 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounling and Reporting by Charities= Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effects've 1 January 2019)" Objectlves and a¢tivilies Founded in 1956 by M.F.B. Fitch, CBE, the object ol the Fund is the improvement and diffusion of knowledge, and the promotion and study of education and research in. archaeology, histOTical geography, history of art and aichilecture, heraldry, genealogy. Ihe use and preseNation of archives, and other arltiquarian, archaeological and historical studies. The primary focus of the Fund is the local and regional history of the British Isles. The Policy of Ihe Fund is to give assislance lowards projects including the research and publication of works that fall within the objects of Ihe Fund. To that end the Fund makes awards to both individuals and institutions. Applications are considered by the Council of Management at its meetings which are usually held twice a year, in Spring and Autumn. Grants are awarded to the successful applicant5, and range from relatively minor amounts to more subslanlial special project grants which may be paid over more than one year. It is dear Ihal, in many cases. the awards enable work lo be undertaken, or the results published either in print or on-line form, which would not Othe￿Ise be achieved. The Fund's objectives for the year. and stralegies to achieve these objects, remain substantially the same as in the previous year. Public Benefit The charity provides public benefit through it5 5UPPOrt of research, publicalion and the dissemination of knowledge in the fields set down by Ihe Founder in the charity's Articles of Association (see above). Awards are open to institutions and to all individual members of the public where Ihe subject-matter of their work falls within the areas of study specified, and is likely to achieve the required scholarly standard. The TTU51ees have complied with the duty in section 17(5) of the Charities Acl 2011 to have due regard lo public benefil guidance published by the Chanty Commission. Achievements and performance During the year lo 5 April 2024 the Fund awarded 39 grants the value of which amounted to a total of £135.733. The Fund generally receives one copy of each print publication which has been grant-aided by the Fund. These publications are generally donated to university or public libraries or other libraries with charitable slatus. Financial review A small subcommittee of the Council of Management is responsible for financial matters including investment policy in conjunction with investment managers. The bulk of the investment portfolio is managed by Brewin Dolphin in accordance with the mandate provided by the Tnjstees. Some 6% of the portfolio is inve51ed in the Charities Property Fund managed by Savills Fund Managemenl. The income of Ihe Fund is mainly derived from ils portrolio of investments with a small amount of donated income. Total funds have increased during the year by £464,795 which is mainly due to the increase in market value of the Fund's investments. The net assel position of the Fund at 5 April 2024 was £8,333.235 MARC FITCH FUND COUNCIL MEMBERS, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Reserves It is the Fund's present policy io maintain a capital level (investment capital and money on deposit) sufficient to support its regular working expenditure and its traditional constituency of single-grant applications. 11 will hold on reserve one year's working expenses and may also accumulate additional reserves in order to make larger grants to fund longer-term applications. These special projecls will be reviewed al the Council's twice-yearly meetings. The Fund operates on the assumption that all grants will be taken up. The Fund's reserves policy is reviewed every three years and 51ated each year in its Annual Report and Accounts. As at 5 April 2024 the balance on Ihe designated unexpended income fund was £149,815. The council members have assessed the major risks to which the charity is exposed, and are satisfied thal systems are in place lo mitigate exposure to the major risks. Plans for future periods The Fund will continue to maximise its income for the purposes of grant aiding as many eligible projects as possible, consislent with the aim of preserving the capital value of the investment portfolio in real lerms. It will conlinue to review the greatest areas of need. taking into account technical developments in academic publishing, and will r balance its giving where necessary, while maintaining the obiecls of the charity. structure, govemance and management The charity is governed by the conditions contained in its Memorandum and Articles of Association. Tmstees The Memorandum of Association of the Marc Fitth Fund allows for up to 15 members of the Council of Managemenl. who are the charity's Irustees. The Council oversees the main pu￿09eS of the Fund. The Fund appoints Irustees with specialist expertise in the academic disciplines listed in the objects of the Fund. In addition, one or more ITUStees are appointed for their expertise in finance and inveslment. Induction and Training For new trustees. induction takes place by means of written briefings and introductory sessions of the Council of Management. Trustees may participate in trustee Iiaining courses such as those provided by the Directory of Social Change. In addition, places on financial and investment management courses were taken up by trustees. Organisational structure and how decisions a￿ made Major decisions concerning the operation of the charity are dealt with by the Tmstees at their twice yearly meetings. Matters of finance and investment are delegated to the Finance Committee of the Council to which the Committee reports. Management of the activities of the charity on a day to day basis has been delegated to the Director. Risks The Council of Management at their meetings will consider potential risks to Ihe Fund and agree policies to miligate these. Audltor In accordance with the company's articles, a resolution proposing that Crilchleys Audit LLP be reappointed as auditor of the company will be put at a General Meeting. MARC FITCH FUND COUNCIL MEMBERS, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Disclosure of Information to auditor Each of the council members has confirmed Ihal there is no information of which they are aware which is relevant to the audit. but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps lo identify such relevant information and to establish that the auditor is aware of such information. The council members, report was approved by the Board of Council Members. Miss L Allason-Jones Trustee Date.. MARC FITCH FUND STATEMENT OF COUNCIL MEMBERS. RESPONSIBILITIES FOR THE YEAR ENDED 5 APRIL 2024 The council members, who are also Ihe directors of Marc Filch Fund for the purpose of company law, are responsible for preparing the Council Members, Report and the financial slatemenls in accordance with applicable law and United Kingdom Accounling Slandards (United Kingdom Generally Accepted Accounting Praclicel. Company Law requires the council members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the council members are required to.. select suitable accounting policies and then appFy them consistently., observe the melhods and principles in the Charilies SORP., make judgements and estimates that are reasonable and prudenl., slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial stalements., and prepare the financial statements Dn Ihe going concern basis unless it is inappropriate lo pie5ume that the chaTfty will continue in operation. The council members are responsible for keeping adequate accounting records that disc105e with reasonable accuracy at any time the financial posilion of the charity and enable them to ensure thal the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. MARC FITCH FUND CRITCHLEYS INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MARC FITCH FUND Opinion We have audited the financial statements of Marc Filch Fund (the 'charity'l for the year ended 5 April 2024 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Slandard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel- In our opinion, the financial stalements." give a true and fair view of the state of the charitable company's affairs as at 5 April 2024 and of its incoming resoU￿e$ and application of resources. including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requiremenls ofthe Companies Act 2006. Basls 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 Audi(orfs responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance wilh the ethical requirements that are relevanl lo our audit of the financial statements in the UK. including the FRC'S Elhical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden￿ we have obtained is sufficienl and appropriate to provide a basis for our opinion. Conclusions relating to going concern In audiling the financial statemenls. we have concluded that the council members, use of the going concem basis of accounting in the preparation of the financial statements is approprÉate. Based on the work we have performed, we have not identified any material uncertainties relating to events or condilions that, individually 01 collectively, may cast significant doubt on the charity's abilily to continue as a going Gon￿rn for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the council members wilh respect to going concem are described in the relevant sections of this ￿pOrt. other information The other information comprises the information included in the annual report other than the financial statements and our auditorfs report Ihereon. The council members are responsible for the other infomiation contained within the annual report. Our opinion on the financial statements does not cover the other infomiation and, except to the extent othenmise explicitly staled in our report. we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other infonnation and, in doing so, consider whether the other information is materially inconsistent wilh the financial statements or our knowledge obtained in the Course of the audit. or otherwise appears to be materially misstated. If we idenlify such material inconsislencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements Ihemselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infomiation, we are required lo report Ihat fact. We have nothing lo report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the infomialion given in the council members, report for the financial year for which Ihe financial statements are prepared, which includes the directors, report prepared for the purposes of company law. is consistent with the financial statements., and the directors, report included within the council members, report has been prepared in accordance with applicable legal requirements. MARC FITCH FUND INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MARC FITCH FUND Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audil, we have not identified material misststemenls in the directors, report induded within the council members, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion: adequate accounting records have not been kept, or relurns adequate for our audit have not been received from branches not visited by us., or the financial statemenls are not in agreement with the accounting records and retums., or certain disclosures of trustees, reffluneration specified by law are nol made., or we have not received all the information and explanations we require for our audit.. or the council members were not entitled to prepare the finallcial slatefflents in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the council members, report and from the requiremenl to prepare a strategic report. Responsibilities of council member5 As explained more fully in Ihe statement of council members, responsibilities, the council members, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the council members determine is necessary to enable the preparation of financial statements that are free from material misstatevnent. whether due to fraud 01 error. In preparing the financial statements, the council meTnbers are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matter5 related lo going concem and using the going COn￿M basis of accounting unless the council members either intend to liquidate the charitable company or to cease operatlOn5. or have no realistic alternative but to do so. Auditorfs responsibilities forthe audit of the financial statements Our objectives are to obtain reasonable assurance about whether Ihe financial statement5 as a whole are free from material misslatement. whelher due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordan with ISAS (UK) will always detect a material misslatement when it exi51s. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent lo which our procedures are capable of detecting i￿egUla￿ties, including fraud, is delailed below. MARC FITCH FUND INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MARC FITCH FUND the engagement partner ensured Ih81 the engagement leam collectively had the appropriate competence, capabililies and skills to identify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations applicable to the company through discussions with direclors and other management, and from our knowledge and experience; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company., we assessed the extent of compliance wilh Ihe laws and regulations identified above through making enquiries of management and inspecting legal correspondence where applicable. and identified laws and regulations were communicated within Ihe audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceplibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud- and considering the internal controls in pla￿ lo mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures to identify any unusual or unexpected relationships., tested joumal entries to identify unusual transactions., assessed whether judgements and as5umplions made in determining Ihe accounting estimates were indicative of polenlial bias., and investigated the rationale behind significant or unusual transactions. In response to the risk of irregul3rilies and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disc105ures to underlying supporting documentation. reading the minutes of meetings ofthose charged with govemance., enquiring of management as to actual and potential litigation and claims., reviewing relevant correspondence. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions. Ihe 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 managemenl and the inspection of regulalory and legal correspondence, if any. Material misstalements that arise due to fraud can be harder to delect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is 8vailable on the Financial Reporting Council's website at.. https'.11 www.frc.org.uklauditorsrespon5ibilib.es. This descriplion forms part of our auditols report. MARC FITCH FUND INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MARC FITCH FUND Use of our report This report is made solely to the charilable company's members, as a body, in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006. Our audrt work has been undertaken so that we might state to the charitable company's members Ihose matters we are required to State to them in an auditols report and for no other purpose. To the fullest extent permilted by law, we do not accept or assume responsibility lo anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Robert Kirtland {Senlor Statutory Auditor) for and on behalf of Critchleys Audit LLP Chartered Accountants Statutory Auditor Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP MARC FITCH FUND STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2024 Unrestricted fund$ 2024 Unrestricted funds 2023 Notes Income from: Charitsble activities Investments 97 241.922 228 267,242 Totsl income 242.019 267,470 Expenditure on: Raising funds Charitable activities 39,S12 166.294 39,293 406,647 Totsl expenditure 205,806 445,940 Net gainsl(lossesl on investments 13 428,582 1798.381) Net incomellexpenditurel and movement in funds 464,795 1976,8511 Reconciliation of funds: Fund balances at 6 April 2023 7,868.440 8,845.291 Fund balances at 5 April 2024 8,333,235 7,868,440 All income and expenditure derive from continuing activitie5. MARC FITCH FUND BALANCE SHEET AS AT 5 APRIL 2024 2024 2023 Notes Flxed assets Investments 13 8,193,454 7,789.634 Current assets Debtors Cash al bank and in hand 14 14,492 389,486 24,354 324,013 403.978 348,367 Credltors.. amounts falling due withln one year Other creditors 15 264,197 269,561 Net current assets 139,781 78,806 Total assets less current liabilities 8,333,235 7,868,440 Net assets excluding pension liability 8,333,235 7,868.440 The funds of the charity Unrestricted funds 8,333,235 7,868.440 8.333,235 7,868,440 The financial statements were approved by the council members on Miss L Allason-Jones Trustee Company registration number 569597 {England and Wales} 10 MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024 Accounting policies Summary of signlflcant accountlng pollcies and key accounting estlmates. The principal accounting policies applied in the preparation of Ihese accounts are set out below. These policies have been consistently applied to all the years presented, unless othenmise slated. Charity informatlon The company is a private company limited by guarantee, registered as a charity, incorporated in the United Kingdom. It is a public benefit entily. Address of its registered office is.. Beaver House, 23-38 Hythe Bridge Street, Oxford, OX12EP. 1.1 Accounting convention The financial statements have been prepared in accordance wlth the charity's Igoveming documentl. the Companies Acl 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland- ("FRS 102.1 and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charlty is a Public Benefit Enlity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charitie5 not to prepare a Statement of Cash Flows. The financial statements are Prepared in sterling. which is the functional currency ol the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statemenls have been prepared under the historical cosl convention. modified to certain financial instruments al fair value. The princÈpal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial slatements, the council members have a reasonable expectalion thal the chaiity has adequate resources to continue in operational existence for the foreseeable future. Thus the council member5 continue to adopl the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds All fvnds of the charity are unrestricted. However the Council of Management have designated Ihe unrestricted funds for specific purposes - see note 12. 1.4 Income Income is recognised when the charity is legally enlitled lo it after any performance conditions have been met, the amounts can be measured reliably, and it is probable thal income will be received. Investment income is now accounted for when it is receivable 1.5 Expenditure Grant5 Grants are normally debited to the Slatement of Financial Activitie5 in the year in which they are approved by the Council of Management. It is at this point they are communicated to the beneficiary. other expendlture These are accounted for on an accruals basis and split belween costs in relation to charitable activities and investment management costs. MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Accounting pollcles (Continued) 1.6 Flxed asset investments Fixed asset investments are initially measured al transaction price excluding transaction costs, and are subsequently measufed at fair value al each reporting dale. Changes in fair value are recognised in net incomel(expenditurel for the year. Transaction cosls are expensed as incurred. 1.7 Cash and cash •qulvalents Cash and cash equivalenls include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within bO￿owing$ in cu￿ent liabilities. 1.8 Financial instruments The charity has elected to apply the Provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues. of FRS 102 to all of its financial inslwments. Financial instruments ale recognised in the charily's balance sheet when the charity becomes party to the contraclual provisions of the in51Tument. Financial assets and liabilities are offset, wilh the net amounts presented in the financial statements. when there is a legally enforceable right to set off the recognised amounts and there is an intention to Settle on a net basis or to realise the assel and settle the liabilily simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances. are initialEy measured at transaction price. Other financial assets Investment assets Investment assets are included at their valuation as at the balance sheet date. Changes in valuation are reflected in the Statement of Financial Activities. For treasury stock the value indudes accrued interest. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Trade creditors are obligations to pay for goods or Se￿iceS that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not. Ihey are presented as non-current liabilities. Derecognltlon of financial liabilitles Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.9 Retirement benefits The Fund operates a defined contribution pension scheme in respect of employees. The pension cosls charged to the SOFA represent Ihe contribution payable by the Fund during the year. 12 MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Crltlcal accounting estlmates and judgements In the application of the charity's accounting policies, the council members are required to make judgements, estimates and assumptions about the Garrying amount of assets and liabilities thal are not readily apparent from other sources. The estimates and associated assumptions are based on hislorical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and undertying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the eslimate is revised where the revision affects only that period. or in the period of the revision and future periods where the revision affects both current and future periods. Investments Unrestricted Unrestricted funds funds general general 2024 2023 Dividends from equities and income from listed inve51ments Income from Charities Property Fund Interest receivable 207,322 32,064 2,536 244,527 21,830 885 241,922 267,242 Income from charitable activities Unrestricted funds 2024 Unrestricted fund5 2023 Charitable activities Royalties received from sale of books 97 228 Expenditure on ralsing fund5 Unrestrlcted Unrestrlcted funds funds 2024 2023 Investment management 39,512 39,293 MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Expendlture on charltable activities Charitable activities 2024 Charitable activities 2023 Direct costs Grant funding of activities (see note 71 124,676 366,182 Share of support and governance costs (see note 8) Support Govemance 29,643 11,975 29,008 11,457 166,294 406.647 Analysis by fund Unrestiicted funds 166,294 406,647 Grants payable Research Research and and publication publication 2024 2023 Grants to institutions Gtants to individuals 47,093 88,640 274,372 93,730 135,733 368,102 Adjustments and grants not taken up (11,057) 11,920) 124,676 366,182 During the year the following grant5 were awarded to Instilutions.. 2024 2023 Saints. Lives for Medieval English Nun5 Vols l and11 Michael Healy, 1873-1941- An Tur Gloine's Stained Glass Pioneer London's Waterfront 1666 to 1800 Avebury's Waterscape Squirrel Nation.. reds, greys and the meaning of home Pedigrees and Power in Celtic Scotland.. collecled essays on medieval Highland and Island history by David Sellar The Papers of Nathaniel Bacon of Stiffl(ey. vol. 7, 1614-1622 Stalbridge for Sale 1918, and the people whose lives were changed 1,250 3,550 6,150 200 1,200 1,250 2,000 1,000 14- MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Grants payable Icontlnued) The Gough Map Book National Musuem Scotland.. The iron artefacts from Trimontium, the Roman fort at Newstead St Bartholomew the Great.. 900 Years Canterbury Archaeological Trust.. Transitions and Relalionships over Land and Sea in the Early Middle Ages of Northern Europe University of Exeter Press.- Sacrament an Alter Brilish Museum.. English Medieval Coin Hoards.. age of the sterling penny 1180- 1351 and English Medieval Coin Hoards.. from the return to gold to the Great Debasement 1351-1560 Archaeopress: Moel-y-Gaer, Bodfari, a small hillfort in Denbighshire, North Wales University of Sheffield.. Digitising the Medieval Guild Certificates of 1388-9.. a pilot project The Royal Historical Society and the Rise of the Modern Historical Profession Hearth Tax Research Project Historic Towns Atlas University of LeI￿Ster. The Wilberforce Diaries, 1779-1833= Parliament. Reform, and Abolilion Victoria County Hi5tory-. Medieval Newport Ishropshire).. an edition of charters and other sources to c. 1550 8th Darlington (Cockerton Green) Scout Group.. Archive digitisation Faculty of History, University of Oxford.. The Writs and Charter5 of William11 Harlaxton Symposium.. Medieval Travel Bodleian Library, Oxford.. Understanding the medieval Gough Map through Physics, Chemistry and History Courtauld Institute.. The National Wall Paintings Archive Victoria County History= VCH Wiltshire volume XIX. Mere and the Deverill Valley Victoria County History= Red Books Digilisation Victoria County History= Digitisation of Northem Archaeology 30,493 3,175 2,000 3,000 2,728 8,500 960 4,972 2.437 4,000 25.000 100.000 1.600 5,000 4.400 1,000 38,476 26,000 13,500 25,000 2,624 47,093 274.372 Support costs allocated to activities 2024 2023 Staff costs other office costs Expenses Governance costs 27.760 337 1.546 11,975 27,760 615 633 11,457 41,618 40,465 Analysed between: Charitable activities 41,618 40,465 15- MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Support costs allocated to activltles (Continued) 2024 2023 Governance costs comprlse: Audit fees Accountancy Expenses Bank charges 9,350 1,601 916 108 8.658 1,670 984 145 11,975 11,457 Net movement in funds 2024 2023 The net movement in funds is stated after chargingllcreditingl.. Fees payable for the audil of Ihe charity's financial Statements 9,350 8,658 10 Council Members No Member of Council received any remuneration. Expenses lotslling £976 were paid to 7 Members of Council during the year12023= Expenses totalling £1,132 were paid to 7 Member5 of Council}. 11 Employees The average monthly number of employees during the yearwas.. 2024 Number 2023 Number Average monthly number of employees Employment costs 2024 2023 Wages and salaries Other pension costs 25.000 2,760 25,000 2,760 27.760 27.760 Key managemenl personnel are all of the Trustees and Director listed in the Council report on page 2. Total key management personnel remuneration (including pension costs and employer's national insurance) was £27,760 {2023'. £27,760). There were no employee5 whose annual remuneration was more than £60,000. 16- MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 12 Taxation The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or sectton 252 of the Taxation of Chargeable Gains Acl 1992 to the extenl that Ihese are applied to its charitable objects. 13 Flxed asset investments Charities Investments Cash held by Property Fund held by Investment investment Manager manager Totsl Cost or valuation Al 6 April 2023 Additions Valuation changes other cash movemenls Disposa15 519,212 7,189,505 1,905.044 457,649 80,917 11,900,328) 7,789.634 4,716 428.582 {29,478) (29,067) 129,478) 1,878,781 {1,878,7811 At 5 April 2024 490.145 7,673,417 29,892 8,193,454 Carrying amount At 05 April 2024 490,145 7.673.417 29,892 8,193,454 At 05 April 2023 519,212 7,189.505 80,917 7.789,634 2024 2023 Investments at fair value comprise- Fixed interest, preference and convertible shares Equities & Similar investments Private equity Property tnjsts Liquidity funds 1,122.940 5,972,713 245,019 220,445 112,300 1,046,975 5.669.213 172,477 177.580 123,260 7,673,417 7,189,505 14 Debtors 2024 2023 Amounts falling due withln one year: Prepayments and accTued income 14.492 24,354 17- MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 15 other credltors falling due within one year 2024 2023 Grants Outslanding Accruals and deferred income 244,814 19,383 260,903 8,658 264,197 269,561 16 Retirement benefit schemes 2024 2023 Defined contribution schemes Charge to profit or loss in respect of defined contribulion schemes 2.760 2,760 The charity operates a defined contribution pension scheme tor all qualifying employees. The assets of the scheme are held separately from those of the charily in an independently administered fund. 17 Unrestricted funds These have been split by the Council of Management into the following designated fund5-. Capital Fund which represents the value of the charily's investment portfolio (net of liabilities for investment management fees)., and Unexpended Income Fund which represents income received that has yet to be expended. At 6April 2023 Income Expenditure Transfers Gains and losses At 5 April 2024 Capital Fund Unexpended Income Fund 7,789.634 (39,512) 4.716 428.582 8,183,420 78.806 242,019 {166,294) 14.716) 149,815 7,868,440 242,019 {205,806) 428.582 8,333,235 Previous year: At 6 April 2022 Income Expenditure Transfers Gains and losses At 5 April 2023 Capital Fund Unexpended Income Fund 8,637,834 139,293) (10,526) (798,381) 7,789,634 207,457 267,470 {406,647) 10,526 78.806 8,845,291 267,470 1445,9401 (798,381) 7,868,440 18 MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 18 Liability of members The members of the company are liable under the memorandum of association to contribute in the event of winding up such amounts as may be required to pay the debts of the company not exceeding £1 per member. At 5 April 2024 there were ten members of Ihe company. 19 Related party transactions In 2023 one grant of £700 was awarded to Professor R Sweet {Trustee) lor a project they are involved in. There were no related party Iransactions in 2024. 19- Charity règlstratlon number 313303 Company registration numbèr 569597 (England and Wales) MARC FITCH FUND ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024 MARC FITCH FUND CONTENTS Page Council Members, report Statement of council members, responsibilities Independent auditor's report Statement of financial activities Balance sheet 10 Notes to the financial statements MARC FITCH FUND LEGAL AND ADMINISTRATIVE INFORMATION Council Members Miss L Allason-Jones Dr WJ Blair Dr H Forde Mr M Hall Professor C Payne Professor R Sweet Mr D White Dr H Summerson (Appointed 20 September 2023) (Appointed 20 September 2023) (Appointed 20 September 2023) Dr J Davis Mr J Ford Director Mr C Catling Bankers CAF Bank 25 Kings Hill Avenue Kings Hill Wesl Malling Kent ME19 4JQ Charity number 313303 Company number 569597 Registered office CIO Critchleys LLP Beavei House 23-38 Hythe Bridge Street Oxford OX1 2EP Auditor Critchleys Audit LLP Beaver House 23-38 Hythe Bridge Street Oxford OX12EP Solicitors Farrer & Co 66 Lincoln's Inn Fields London WC2A 3LH Investment advisors Brewin Dolphin 12 Smithfield Street, London EC1A9BD MARC FITCH FUND COUNCIL MEMBERS. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 5 APRIL 2024 The council members present their annual report and financial statements for the year ended 5 April 2024. The financial statements have been prepared in accordance with the accounting policies set out in nole 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounling and Reporting by Charities= Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effects've 1 January 2019)" Objectlves and a¢tivilies Founded in 1956 by M.F.B. Fitch, CBE, the object ol the Fund is the improvement and diffusion of knowledge, and the promotion and study of education and research in. archaeology, histOTical geography, history of art and aichilecture, heraldry, genealogy. Ihe use and preseNation of archives, and other arltiquarian, archaeological and historical studies. The primary focus of the Fund is the local and regional history of the British Isles. The Policy of Ihe Fund is to give assislance lowards projects including the research and publication of works that fall within the objects of Ihe Fund. To that end the Fund makes awards to both individuals and institutions. Applications are considered by the Council of Management at its meetings which are usually held twice a year, in Spring and Autumn. Grants are awarded to the successful applicant5, and range from relatively minor amounts to more subslanlial special project grants which may be paid over more than one year. It is dear Ihal, in many cases. the awards enable work lo be undertaken, or the results published either in print or on-line form, which would not Othe￿Ise be achieved. The Fund's objectives for the year. and stralegies to achieve these objects, remain substantially the same as in the previous year. Public Benefit The charity provides public benefit through it5 5UPPOrt of research, publicalion and the dissemination of knowledge in the fields set down by Ihe Founder in the charity's Articles of Association (see above). Awards are open to institutions and to all individual members of the public where Ihe subject-matter of their work falls within the areas of study specified, and is likely to achieve the required scholarly standard. The TTU51ees have complied with the duty in section 17(5) of the Charities Acl 2011 to have due regard lo public benefil guidance published by the Chanty Commission. Achievements and performance During the year lo 5 April 2024 the Fund awarded 39 grants the value of which amounted to a total of £135.733. The Fund generally receives one copy of each print publication which has been grant-aided by the Fund. These publications are generally donated to university or public libraries or other libraries with charitable slatus. Financial review A small subcommittee of the Council of Management is responsible for financial matters including investment policy in conjunction with investment managers. The bulk of the investment portfolio is managed by Brewin Dolphin in accordance with the mandate provided by the Tnjstees. Some 6% of the portfolio is inve51ed in the Charities Property Fund managed by Savills Fund Managemenl. The income of Ihe Fund is mainly derived from ils portrolio of investments with a small amount of donated income. Total funds have increased during the year by £464,795 which is mainly due to the increase in market value of the Fund's investments. The net assel position of the Fund at 5 April 2024 was £8,333.235 MARC FITCH FUND COUNCIL MEMBERS, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Reserves It is the Fund's present policy io maintain a capital level (investment capital and money on deposit) sufficient to support its regular working expenditure and its traditional constituency of single-grant applications. 11 will hold on reserve one year's working expenses and may also accumulate additional reserves in order to make larger grants to fund longer-term applications. These special projecls will be reviewed al the Council's twice-yearly meetings. The Fund operates on the assumption that all grants will be taken up. The Fund's reserves policy is reviewed every three years and 51ated each year in its Annual Report and Accounts. As at 5 April 2024 the balance on Ihe designated unexpended income fund was £149,815. The council members have assessed the major risks to which the charity is exposed, and are satisfied thal systems are in place lo mitigate exposure to the major risks. Plans for future periods The Fund will continue to maximise its income for the purposes of grant aiding as many eligible projects as possible, consislent with the aim of preserving the capital value of the investment portfolio in real lerms. It will conlinue to review the greatest areas of need. taking into account technical developments in academic publishing, and will r balance its giving where necessary, while maintaining the obiecls of the charity. structure, govemance and management The charity is governed by the conditions contained in its Memorandum and Articles of Association. Tmstees The Memorandum of Association of the Marc Fitth Fund allows for up to 15 members of the Council of Managemenl. who are the charity's Irustees. The Council oversees the main pu￿09eS of the Fund. The Fund appoints Irustees with specialist expertise in the academic disciplines listed in the objects of the Fund. In addition, one or more ITUStees are appointed for their expertise in finance and inveslment. Induction and Training For new trustees. induction takes place by means of written briefings and introductory sessions of the Council of Management. Trustees may participate in trustee Iiaining courses such as those provided by the Directory of Social Change. In addition, places on financial and investment management courses were taken up by trustees. Organisational structure and how decisions a￿ made Major decisions concerning the operation of the charity are dealt with by the Tmstees at their twice yearly meetings. Matters of finance and investment are delegated to the Finance Committee of the Council to which the Committee reports. Management of the activities of the charity on a day to day basis has been delegated to the Director. Risks The Council of Management at their meetings will consider potential risks to Ihe Fund and agree policies to miligate these. Audltor In accordance with the company's articles, a resolution proposing that Crilchleys Audit LLP be reappointed as auditor of the company will be put at a General Meeting. MARC FITCH FUND COUNCIL MEMBERS, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Disclosure of Information to auditor Each of the council members has confirmed Ihal there is no information of which they are aware which is relevant to the audit. but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps lo identify such relevant information and to establish that the auditor is aware of such information. The council members, report was approved by the Board of Council Members. Miss L Allason-Jones Trustee Date.. MARC FITCH FUND STATEMENT OF COUNCIL MEMBERS. RESPONSIBILITIES FOR THE YEAR ENDED 5 APRIL 2024 The council members, who are also Ihe directors of Marc Filch Fund for the purpose of company law, are responsible for preparing the Council Members, Report and the financial slatemenls in accordance with applicable law and United Kingdom Accounling Slandards (United Kingdom Generally Accepted Accounting Praclicel. Company Law requires the council members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the council members are required to.. select suitable accounting policies and then appFy them consistently., observe the melhods and principles in the Charilies SORP., make judgements and estimates that are reasonable and prudenl., slate whether applicable UK Accounting Standards have been followed, subject lo any material departures disclosed and explained in the financial stalements., and prepare the financial statements Dn Ihe going concern basis unless it is inappropriate lo pie5ume that the chaTfty will continue in operation. The council members are responsible for keeping adequate accounting records that disc105e with reasonable accuracy at any time the financial posilion of the charity and enable them to ensure thal the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. MARC FITCH FUND CRITCHLEYS INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MARC FITCH FUND Opinion We have audited the financial statements of Marc Filch Fund (the 'charity'l for the year ended 5 April 2024 which comprise the statement of financial activities, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Slandard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel- In our opinion, the financial stalements." give a true and fair view of the state of the charitable company's affairs as at 5 April 2024 and of its incoming resoU￿e$ and application of resources. including its income and expenditure, for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requiremenls ofthe Companies Act 2006. Basls 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 Audi(orfs responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance wilh the ethical requirements that are relevanl lo our audit of the financial statements in the UK. including the FRC'S Elhical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden￿ we have obtained is sufficienl and appropriate to provide a basis for our opinion. Conclusions relating to going concern In audiling the financial statemenls. we have concluded that the council members, use of the going concem basis of accounting in the preparation of the financial statements is approprÉate. Based on the work we have performed, we have not identified any material uncertainties relating to events or condilions that, individually 01 collectively, may cast significant doubt on the charity's abilily to continue as a going Gon￿rn for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the council members wilh respect to going concem are described in the relevant sections of this ￿pOrt. other information The other information comprises the information included in the annual report other than the financial statements and our auditorfs report Ihereon. The council members are responsible for the other infomiation contained within the annual report. Our opinion on the financial statements does not cover the other infomiation and, except to the extent othenmise explicitly staled in our report. we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other infonnation and, in doing so, consider whether the other information is materially inconsistent wilh the financial statements or our knowledge obtained in the Course of the audit. or otherwise appears to be materially misstated. If we idenlify such material inconsislencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements Ihemselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infomiation, we are required lo report Ihat fact. We have nothing lo report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the infomialion given in the council members, report for the financial year for which Ihe financial statements are prepared, which includes the directors, report prepared for the purposes of company law. is consistent with the financial statements., and the directors, report included within the council members, report has been prepared in accordance with applicable legal requirements. MARC FITCH FUND INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MARC FITCH FUND Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audil, we have not identified material misststemenls in the directors, report induded within the council members, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion: adequate accounting records have not been kept, or relurns adequate for our audit have not been received from branches not visited by us., or the financial statemenls are not in agreement with the accounting records and retums., or certain disclosures of trustees, reffluneration specified by law are nol made., or we have not received all the information and explanations we require for our audit.. or the council members were not entitled to prepare the finallcial slatefflents in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the council members, report and from the requiremenl to prepare a strategic report. Responsibilities of council member5 As explained more fully in Ihe statement of council members, responsibilities, the council members, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the council members determine is necessary to enable the preparation of financial statements that are free from material misstatevnent. whether due to fraud 01 error. In preparing the financial statements, the council meTnbers are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matter5 related lo going concem and using the going COn￿M basis of accounting unless the council members either intend to liquidate the charitable company or to cease operatlOn5. or have no realistic alternative but to do so. Auditorfs responsibilities forthe audit of the financial statements Our objectives are to obtain reasonable assurance about whether Ihe financial statement5 as a whole are free from material misslatement. whelher due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordan with ISAS (UK) will always detect a material misslatement when it exi51s. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent lo which our procedures are capable of detecting i￿egUla￿ties, including fraud, is delailed below. MARC FITCH FUND INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MARC FITCH FUND the engagement partner ensured Ih81 the engagement leam collectively had the appropriate competence, capabililies and skills to identify or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations applicable to the company through discussions with direclors and other management, and from our knowledge and experience; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company., we assessed the extent of compliance wilh Ihe laws and regulations identified above through making enquiries of management and inspecting legal correspondence where applicable. and identified laws and regulations were communicated within Ihe audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceplibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibility lo fraud, their knowledge of actual, suspected and alleged fraud- and considering the internal controls in pla￿ lo mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. performed analytical procedures to identify any unusual or unexpected relationships., tested joumal entries to identify unusual transactions., assessed whether judgements and as5umplions made in determining Ihe accounting estimates were indicative of polenlial bias., and investigated the rationale behind significant or unusual transactions. In response to the risk of irregul3rilies and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disc105ures to underlying supporting documentation. reading the minutes of meetings ofthose charged with govemance., enquiring of management as to actual and potential litigation and claims., reviewing relevant correspondence. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions. Ihe 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 managemenl and the inspection of regulalory and legal correspondence, if any. Material misstalements that arise due to fraud can be harder to delect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is 8vailable on the Financial Reporting Council's website at.. https'.11 www.frc.org.uklauditorsrespon5ibilib.es. This descriplion forms part of our auditols report. MARC FITCH FUND INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MARC FITCH FUND Use of our report This report is made solely to the charilable company's members, as a body, in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006. Our audrt work has been undertaken so that we might state to the charitable company's members Ihose matters we are required to State to them in an auditols report and for no other purpose. To the fullest extent permilted by law, we do not accept or assume responsibility lo anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Robert Kirtland {Senlor Statutory Auditor) for and on behalf of Critchleys Audit LLP Chartered Accountants Statutory Auditor Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP MARC FITCH FUND STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2024 Unrestricted fund$ 2024 Unrestricted funds 2023 Notes Income from: Charitsble activities Investments 97 241.922 228 267,242 Totsl income 242.019 267,470 Expenditure on: Raising funds Charitable activities 39,S12 166.294 39,293 406,647 Totsl expenditure 205,806 445,940 Net gainsl(lossesl on investments 13 428,582 1798.381) Net incomellexpenditurel and movement in funds 464,795 1976,8511 Reconciliation of funds: Fund balances at 6 April 2023 7,868.440 8,845.291 Fund balances at 5 April 2024 8,333,235 7,868,440 All income and expenditure derive from continuing activitie5. MARC FITCH FUND BALANCE SHEET AS AT 5 APRIL 2024 2024 2023 Notes Flxed assets Investments 13 8,193,454 7,789.634 Current assets Debtors Cash al bank and in hand 14 14,492 389,486 24,354 324,013 403.978 348,367 Credltors.. amounts falling due withln one year Other creditors 15 264,197 269,561 Net current assets 139,781 78,806 Total assets less current liabilities 8,333,235 7,868,440 Net assets excluding pension liability 8,333,235 7,868.440 The funds of the charity Unrestricted funds 8,333,235 7,868.440 8.333,235 7,868,440 The financial statements were approved by the council members on Miss L Allason-Jones Trustee Company registration number 569597 {England and Wales} 10 MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024 Accounting policies Summary of signlflcant accountlng pollcies and key accounting estlmates. The principal accounting policies applied in the preparation of Ihese accounts are set out below. These policies have been consistently applied to all the years presented, unless othenmise slated. Charity informatlon The company is a private company limited by guarantee, registered as a charity, incorporated in the United Kingdom. It is a public benefit entily. Address of its registered office is.. Beaver House, 23-38 Hythe Bridge Street, Oxford, OX12EP. 1.1 Accounting convention The financial statements have been prepared in accordance wlth the charity's Igoveming documentl. the Companies Acl 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland- ("FRS 102.1 and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charlty is a Public Benefit Enlity as defined by FRS 102. The charity has taken advantage of the provisions in the SORP for charitie5 not to prepare a Statement of Cash Flows. The financial statements are Prepared in sterling. which is the functional currency ol the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statemenls have been prepared under the historical cosl convention. modified to certain financial instruments al fair value. The princÈpal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial slatements, the council members have a reasonable expectalion thal the chaiity has adequate resources to continue in operational existence for the foreseeable future. Thus the council member5 continue to adopl the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds All fvnds of the charity are unrestricted. However the Council of Management have designated Ihe unrestricted funds for specific purposes - see note 12. 1.4 Income Income is recognised when the charity is legally enlitled lo it after any performance conditions have been met, the amounts can be measured reliably, and it is probable thal income will be received. Investment income is now accounted for when it is receivable 1.5 Expenditure Grant5 Grants are normally debited to the Slatement of Financial Activitie5 in the year in which they are approved by the Council of Management. It is at this point they are communicated to the beneficiary. other expendlture These are accounted for on an accruals basis and split belween costs in relation to charitable activities and investment management costs. MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Accounting pollcles (Continued) 1.6 Flxed asset investments Fixed asset investments are initially measured al transaction price excluding transaction costs, and are subsequently measufed at fair value al each reporting dale. Changes in fair value are recognised in net incomel(expenditurel for the year. Transaction cosls are expensed as incurred. 1.7 Cash and cash •qulvalents Cash and cash equivalenls include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within bO￿owing$ in cu￿ent liabilities. 1.8 Financial instruments The charity has elected to apply the Provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues. of FRS 102 to all of its financial inslwments. Financial instruments ale recognised in the charily's balance sheet when the charity becomes party to the contraclual provisions of the in51Tument. Financial assets and liabilities are offset, wilh the net amounts presented in the financial statements. when there is a legally enforceable right to set off the recognised amounts and there is an intention to Settle on a net basis or to realise the assel and settle the liabilily simultaneously. Basic financial assets Basic financial assets, which include debtors and cash and bank balances. are initialEy measured at transaction price. Other financial assets Investment assets Investment assets are included at their valuation as at the balance sheet date. Changes in valuation are reflected in the Statement of Financial Activities. For treasury stock the value indudes accrued interest. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Trade creditors are obligations to pay for goods or Se￿iceS that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not. Ihey are presented as non-current liabilities. Derecognltlon of financial liabilitles Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 1.9 Retirement benefits The Fund operates a defined contribution pension scheme in respect of employees. The pension cosls charged to the SOFA represent Ihe contribution payable by the Fund during the year. 12 MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Crltlcal accounting estlmates and judgements In the application of the charity's accounting policies, the council members are required to make judgements, estimates and assumptions about the Garrying amount of assets and liabilities thal are not readily apparent from other sources. The estimates and associated assumptions are based on hislorical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and undertying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the eslimate is revised where the revision affects only that period. or in the period of the revision and future periods where the revision affects both current and future periods. Investments Unrestricted Unrestricted funds funds general general 2024 2023 Dividends from equities and income from listed inve51ments Income from Charities Property Fund Interest receivable 207,322 32,064 2,536 244,527 21,830 885 241,922 267,242 Income from charitable activities Unrestricted funds 2024 Unrestricted fund5 2023 Charitable activities Royalties received from sale of books 97 228 Expenditure on ralsing fund5 Unrestrlcted Unrestrlcted funds funds 2024 2023 Investment management 39,512 39,293 MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Expendlture on charltable activities Charitable activities 2024 Charitable activities 2023 Direct costs Grant funding of activities (see note 71 124,676 366,182 Share of support and governance costs (see note 8) Support Govemance 29,643 11,975 29,008 11,457 166,294 406.647 Analysis by fund Unrestiicted funds 166,294 406,647 Grants payable Research Research and and publication publication 2024 2023 Grants to institutions Gtants to individuals 47,093 88,640 274,372 93,730 135,733 368,102 Adjustments and grants not taken up (11,057) 11,920) 124,676 366,182 During the year the following grant5 were awarded to Instilutions.. 2024 2023 Saints. Lives for Medieval English Nun5 Vols l and11 Michael Healy, 1873-1941- An Tur Gloine's Stained Glass Pioneer London's Waterfront 1666 to 1800 Avebury's Waterscape Squirrel Nation.. reds, greys and the meaning of home Pedigrees and Power in Celtic Scotland.. collecled essays on medieval Highland and Island history by David Sellar The Papers of Nathaniel Bacon of Stiffl(ey. vol. 7, 1614-1622 Stalbridge for Sale 1918, and the people whose lives were changed 1,250 3,550 6,150 200 1,200 1,250 2,000 1,000 14- MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Grants payable Icontlnued) The Gough Map Book National Musuem Scotland.. The iron artefacts from Trimontium, the Roman fort at Newstead St Bartholomew the Great.. 900 Years Canterbury Archaeological Trust.. Transitions and Relalionships over Land and Sea in the Early Middle Ages of Northern Europe University of Exeter Press.- Sacrament an Alter Brilish Museum.. English Medieval Coin Hoards.. age of the sterling penny 1180- 1351 and English Medieval Coin Hoards.. from the return to gold to the Great Debasement 1351-1560 Archaeopress: Moel-y-Gaer, Bodfari, a small hillfort in Denbighshire, North Wales University of Sheffield.. Digitising the Medieval Guild Certificates of 1388-9.. a pilot project The Royal Historical Society and the Rise of the Modern Historical Profession Hearth Tax Research Project Historic Towns Atlas University of LeI￿Ster. The Wilberforce Diaries, 1779-1833= Parliament. Reform, and Abolilion Victoria County Hi5tory-. Medieval Newport Ishropshire).. an edition of charters and other sources to c. 1550 8th Darlington (Cockerton Green) Scout Group.. Archive digitisation Faculty of History, University of Oxford.. The Writs and Charter5 of William11 Harlaxton Symposium.. Medieval Travel Bodleian Library, Oxford.. Understanding the medieval Gough Map through Physics, Chemistry and History Courtauld Institute.. The National Wall Paintings Archive Victoria County History= VCH Wiltshire volume XIX. Mere and the Deverill Valley Victoria County History= Red Books Digilisation Victoria County History= Digitisation of Northem Archaeology 30,493 3,175 2,000 3,000 2,728 8,500 960 4,972 2.437 4,000 25.000 100.000 1.600 5,000 4.400 1,000 38,476 26,000 13,500 25,000 2,624 47,093 274.372 Support costs allocated to activities 2024 2023 Staff costs other office costs Expenses Governance costs 27.760 337 1.546 11,975 27,760 615 633 11,457 41,618 40,465 Analysed between: Charitable activities 41,618 40,465 15- MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 Support costs allocated to activltles (Continued) 2024 2023 Governance costs comprlse: Audit fees Accountancy Expenses Bank charges 9,350 1,601 916 108 8.658 1,670 984 145 11,975 11,457 Net movement in funds 2024 2023 The net movement in funds is stated after chargingllcreditingl.. Fees payable for the audil of Ihe charity's financial Statements 9,350 8,658 10 Council Members No Member of Council received any remuneration. Expenses lotslling £976 were paid to 7 Members of Council during the year12023= Expenses totalling £1,132 were paid to 7 Member5 of Council}. 11 Employees The average monthly number of employees during the yearwas.. 2024 Number 2023 Number Average monthly number of employees Employment costs 2024 2023 Wages and salaries Other pension costs 25.000 2,760 25,000 2,760 27.760 27.760 Key managemenl personnel are all of the Trustees and Director listed in the Council report on page 2. Total key management personnel remuneration (including pension costs and employer's national insurance) was £27,760 {2023'. £27,760). There were no employee5 whose annual remuneration was more than £60,000. 16- MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 12 Taxation The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or sectton 252 of the Taxation of Chargeable Gains Acl 1992 to the extenl that Ihese are applied to its charitable objects. 13 Flxed asset investments Charities Investments Cash held by Property Fund held by Investment investment Manager manager Totsl Cost or valuation Al 6 April 2023 Additions Valuation changes other cash movemenls Disposa15 519,212 7,189,505 1,905.044 457,649 80,917 11,900,328) 7,789.634 4,716 428.582 {29,478) (29,067) 129,478) 1,878,781 {1,878,7811 At 5 April 2024 490.145 7,673,417 29,892 8,193,454 Carrying amount At 05 April 2024 490,145 7.673.417 29,892 8,193,454 At 05 April 2023 519,212 7,189.505 80,917 7.789,634 2024 2023 Investments at fair value comprise- Fixed interest, preference and convertible shares Equities & Similar investments Private equity Property tnjsts Liquidity funds 1,122.940 5,972,713 245,019 220,445 112,300 1,046,975 5.669.213 172,477 177.580 123,260 7,673,417 7,189,505 14 Debtors 2024 2023 Amounts falling due withln one year: Prepayments and accTued income 14.492 24,354 17- MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 15 other credltors falling due within one year 2024 2023 Grants Outslanding Accruals and deferred income 244,814 19,383 260,903 8,658 264,197 269,561 16 Retirement benefit schemes 2024 2023 Defined contribution schemes Charge to profit or loss in respect of defined contribulion schemes 2.760 2,760 The charity operates a defined contribution pension scheme tor all qualifying employees. The assets of the scheme are held separately from those of the charily in an independently administered fund. 17 Unrestricted funds These have been split by the Council of Management into the following designated fund5-. Capital Fund which represents the value of the charily's investment portfolio (net of liabilities for investment management fees)., and Unexpended Income Fund which represents income received that has yet to be expended. At 6April 2023 Income Expenditure Transfers Gains and losses At 5 April 2024 Capital Fund Unexpended Income Fund 7,789.634 (39,512) 4.716 428.582 8,183,420 78.806 242,019 {166,294) 14.716) 149,815 7,868,440 242,019 {205,806) 428.582 8,333,235 Previous year: At 6 April 2022 Income Expenditure Transfers Gains and losses At 5 April 2023 Capital Fund Unexpended Income Fund 8,637,834 139,293) (10,526) (798,381) 7,789,634 207,457 267,470 {406,647) 10,526 78.806 8,845,291 267,470 1445,9401 (798,381) 7,868,440 18 MARC FITCH FUND NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2024 18 Liability of members The members of the company are liable under the memorandum of association to contribute in the event of winding up such amounts as may be required to pay the debts of the company not exceeding £1 per member. At 5 April 2024 there were ten members of Ihe company. 19 Related party transactions In 2023 one grant of £700 was awarded to Professor R Sweet {Trustee) lor a project they are involved in. There were no related party Iransactions in 2024. 19- Management letter to the Council Members of Marc Fitch Fund Year ended 5 April 2024 > 14 August 2024 Page | 1 Management Letter 2024 **Contents Introduction ................................................................................................................................................ 3** Purpose of the document .............................................................................................................................. 3 Acknowledgements ............................................................................................................................................ 3 Limitations .............................................................................................................................................................. 3 **Executive Summary .................................................................................................................................... 4** Further assistance ................................................................................................................................................ 4 **Audit Status ................................................................................................................................................. 5 Areas of Audit Focus .................................................................................................................................. 6 Audit differences ........................................................................................................................................ 7** Summary of adjusted differences from draft numbers provided by management .................... 7 **Potential Control Weaknesses ................................................................................................................. 8** Matters arising in previous years ................................................................................................................... 8 **Proposed Letter of Representation ......................................................................................................... 9 Other audit matters ................................................................................................................................. 10** Detailed comments on the financial statements and audit opinion .............................................. 10 Qualitative aspects of accounting practices ........................................................................................... 10 Judgements made by management .......................................................................................................... 10 Related parties ................................................................................................................................................... 10 Independence matters .................................................................................................................................... 10 Serious incident reporting ............................................................................................................................. 11 Page | 2 Management Letter 2024 ## Introduction ## Purpose of the document In accordance with our normal practice and the International Standards on Auditing (UK) 260, we are writing to draw your attention to various matters which arose during the course of our audit of your financial statements for the year ended 5 April 2024. This letter includes an executive summary of the key findings below which are supported by the detailed sections thereafter. The purpose of the audit is to enable us to express an opinion on the financial statements. Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal controls. The matters reported are limited to those deficiencies that the auditor has identified during the audit and that the auditor has concluded are of sufficient importance to merit being reported to those charged with governance. Our audit included obtaining sufficient and appropriate audit evidence to support our opinion. We use a variety of audit techniques to obtain audit evidence, including tests of design of controls; analytical review; verification of specific transactions and balances; and third party verification. We also assessed the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our audit involved a risk-based approach and included an examination of evidence on a sample basis. Because of the sample nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, there is an unavoidable risk that some errors and material misstatements may remain undiscovered. Any errors and irregularity identified have been included within this report. ## Acknowledgements We would also like to take this opportunity of expressing our thanks to your staff for their assistance during the course of our audit and with the accounts preparation. A substantial amount of preparation work was required in order to be fully ready for the audit and we appreciate the efforts of Christopher Catling. ## Limitations Please note that this report has been prepared for the sole use of Marc Fitch Fund and it must not be disclosed to third parties, quoted or referred to, without our prior written consent. No responsibility is assumed by us to any other person or entity. Page | 3 Management Letter 2024 ## Executive Summary We are pleased to attach our report and our key findings are summarised below. - Any audit matters still outstanding with potential impact. Page 4. - The number of audit adjustments identified and their impact. Page 7. - The number of potential control weaknesses identified and their significance. Page 8. - Any specific points within the proposed letter of representation. Page 9. - Audit report outcome (unmodified). Page 10. ## Further assistance Should Members of the Council or management wish to ask any questions regarding the matters raised in this letter or if we can be of any further assistance, please contact Robert Kirtland. ## **Robert Kirtland FCA** ## Audit Partner Email rkirtland@critchleys.co.uk Telephone 01865 261100 Website Find out more about Robert Kirtland by watching his introductory video on www.critchleys.co.uk/Experts/Robert ~~a~~ Page | 4 Management Letter 2024 ## Audit Status Our audit is substantially complete. There have been no significant changes to our audit plan, dated 17 July 2024. The following matters are outstanding to be resolved prior to issuing our audit opinion: ||**Outstanding matter **|**Details**| |---|---|---| |1.|None|| Page | 5 Management Letter 2024 ## Areas of Audit Focus As detailed in our audit plan, dated 17 July 2024 we identified the following significant risk areas during our audit planning and have included a brief summary of the work carried out and our findings below. ||**Riskarea**|**Work carriedout**|**Conclusion**| |---|---|---|---| |1.|Investments|Investment values, income and gains/losses
were checked and recalculated using the
investment reports received direct.|No issues were noted during
testing.| |2.|Grant creditor|A list of grants awarded was obtained.
It was ensured that these grants were
approved by the Council of
Management. Cut-off was tested to
ensure the creditor at the year end
was correct and that expenditure had
been allocated to the correct financial
~~period~~|No issues were noted during
testing.| |3.|Management
override of
controls|~~period~~
Bank statements were reviewed to
ensure that evidence that the
Treasurer had reviewed the statements
could be observed.|No issues were noted during
testing.| |4.|Related party
transactions|The cash book and bank statements
were reviewed to ensure that all
related party transactions had been
disclosed. We also reviewed other
interests of trustees per Companies
House and the Charities Commission
to ensure any other disclosable
transactions have been disclosed.|No issues were noted during
testing.
We would also recommend that
declarations of interest are
obtained from trustees to help
in the identification of related
parties.| |5.|Fraud in relation
to income
recognition|Income is made up of almost entirely
investment income that was agreed to
investment reports.|No issues were noted during
testing.| Our audit procedures go beyond the above higher risk areas to cover material areas of the financial statements. No issues were noted during the procedures. Page | 6 Management Letter 2024 ## Audit differences In the normal course of an audit, we can identify misstatements in the financial data provided to us at the start of the audit. Where individual errors or their aggregation exceed our materiality level of £90,000 we are required to modify our audit report if they are not adjusted in the final financial statements. For the interest of Board of Trustees and management, we have summarised both the errors that have been corrected and those that have not. In accordance with ICAEW guidance on triviality limits for audit, we report all items exceeding 5% of the materiality, which for this year is £4,500. ## Summary of adjusted differences from draft numbers provided by management |No.|No.|Descriptionof|Impacton SOFA|Impact on| |---|---|---|---|---| |||adjustment||Balance sheet| ||||(£)|(£)| ||1.|Revaluation gain on investments|457,649|457,649| ||2.|Auditors Remuneration accrual|(9,350)|(9,350)| ||3.|Investment management fee accrual|(10,033)|(10,033)| ||4.|Revaluation loss on Charities Property Fund|(29,067)|(29,067)| ||5.|Grants awarded in the year|(135,733)|(135,733)| |6.|6.|Year-end adjustment for cancelled grants|10,321|10,321| There were no non-trivial unadjusted errors. Page | 7 Management Letter 2024 ## Potential Control Weaknesses Your management is responsible for identification, assessment and monitoring of risk, and for developing, operating and monitoring the systems of internal control. Our audit procedures are designed primarily for the purpose of expressing an opinion on the financial statements and therefore do not constitute a full and detailed review of all aspects of the systems and controls and therefore cannot be relied upon to identify all actual and potential weaknesses. We have included a summary of the issues that we have identified below. ## Matters arising in the current year |Observation|Implications&risk|Recommendation|Management response| |---|---|---|---| |We noted a transposition error and a missed entry
between the bank statements and the cash book.|The risk is that such errors could lead to
management not being aware of certain
transactions that have taken place
during the year.|The risk is that such errors could lead to
management not being aware of certain
We recommend that the cash book is
reconciled to the bank statement on a
monthly basis to avoid such errors in the
future.|| |We noted that there was a grant approved in the
application form per the May 2023 minutes but not
initially included in the grants awarded list.|The risk is that management may not be
able to fully track all grants paid out if
there are any that have not been
included in the grants awarded list.|The risk is that management may not be
Although this was picked up during the
audit and fixed by the client, we
recommend the grants awarded to be
reviewed more regularly to avoid any
further issues arising in the future.|| Page | 8 Management Letter 2024 ## Proposed Letter of Representation In accordance with standard practice for such an audit and based on the work carried out to date, we will ask the Board of Trustees to approve and sign the attached letter of representation to accompany the signed final financial statements. We draw your attention to the specific representations contained within point 9, otherwise the letter is routine. The allocation of expenditure between the headings of raising funds and charitable activities has been reviewed and it is considered that the allocations are reasonable Page | 9 Management Letter 2024 ## Other audit matters ## Detailed comments on the financial statements and audit opinion Based upon our work carried out to date, and subject to no significant events occurring prior to the signing of the audit report, we anticipate issuing an unmodified audit report in your statutory financial statements. ## Qualitative aspects of accounting practices We have no comments to make concerning the qualitative aspects of the charity’s accounting practices and financial reporting, including accounting policies, accounting estimates and financial statement disclosures. ## Judgements made by management During the course of our audit we are required to review the main judgements or estimates made by management, which would have a material or significant impact on the financial statements. We have identified the following main judgement areas and our comments thereon. The only area of estimate noted is for the investment valuation. This has been agreed to investment reports and the entries required in the financial statements were recalculated to ensure they were correct. ## Related parties The charity is required to disclose all related party transactions, per the Charities SORP, within its financial statements. We have identified no potential related party transactions. We would also recommend that the charity obtains registers of interests from trustees to help identify potential related parties. ## Investment management During the audit fieldwork, we obtained an internal controls report from the investment management firm which holds the investment portfolio for the Marc Fitch Fund (Brewin Dolphin). We note that Brewin Dolphin received a qualified internal audit report for their financial year ended 31 October 2023. The basis of the qualification was on the following accounts: 1. Controls ensuring fees relevant to the services offered are completely and accurately set up on relevant internal systems were not suitably designed. 2. Controls to obtain pre-approval for deals over specific threshold sizes did not operate consistently; and 3. Management could not evidence that certain controls to appropriately restrict access to in scope systems and data were suitably designed or consistently operated. No issues arose from our tests on the investment report provided by Brewin Dolphin. We bring this to the attention of Marc Fitch Fund for your awareness. ## Independence matters We provide accounting and taxation services to Marc Fitch Fund in addition to acting as auditors. The provision of such services is not considered to affect our independence as the charity has “informed management” – Christopher Catling for routine transactions and John Ford/Andrew Murison (Trustees) for higher level items. We have therefore complied with the relevant ethical requirements concerning independence. Page | 10 Management Letter 2024 ## Serious incident reporting All trustees are responsible for identifying and reporting, in a timely fashion, any serious incidents to the Charity Commission, in accordance with their requirements for all registered charities. Whilst our audit scope does not specifically require us to identify any such matters, we report to the members that there were no such actual or potential matters that came to our attention. Page | 11 Management Letter 2024 ## Appendix - Charity sector update ## **Sector-wide landscape** The past couple of years have been extremely challenging for the charity sector. However, it’s not all doom and gloom – charity registrations have increased together with the number of adults volunteering, and 2023 was a record year for JustGiving donations to charities. 2024 could be an interesting year, potentially a challenging one, but there is some opportunity out there too. We expect some charities will unfortunately not survive whereas others will thrive despite the threat of recession. Some donors will benefit from national insurance cuts and income tax freezes. It will be increasingly important for charities to use their resources wisely to maximise their impact. The pending general election is postponing many decisions until the political landscape is known. It is more important than ever that the charity sector speaks out about the issues it faces – many voices increase the power of the messages, especially during what could be a very pivotal year. ## **Accounting and reporting** Although the impact of the revisions to FRS 102 (FRED 82) will not impact charity accounts until 2026 when we expect the new SORP to be effective. We have been made aware for some time of the notable changes arising from FRED 82 in relation to revenue and operating leases. There are also numerous other minor changes from FRED 82. Two which are worthy of note for charities are: _**Heritage assets -**_ Clearer guidance on when an asset is a heritage asset plus separate disclosure for heritage assets held by a lessee as a right-of-use asset. _**Related parties -**_ Amendments the disclosures regarding related parties which would require the amount of outstanding balances and commitments to be disclosed in addition to the terms and conditions and details of any guarantees given or received. Currently, the paragraph just requires the amount of outstanding balances, terms and conditions and guarantees given or received. ## **Refusing a donation** In exceptional circumstances the trustees of a charity may choose not to accept a donation in the best interests of a charity, for example, if it falls outside the scope of the charity’s objectives or would bring an unacceptable burden to the charity. In some circumstances trustees have a legal obligation to refuse donations such as those from illegal sources or those with illegal conditions, and therefore it is really important to know who your donations come from. Trustees must also refuse to accept donations from donors who lack the mental ability to donate or when the donor doesn’t actually own what is being donated. The Charity Commission has recently updated its guidance on the topic and includes some helpful steps on what to do next the trustees need to refuse a donation. Accepting, refusing and returning donations to your charity ## **Making changes to your governing documents** The Charity Commission has recently updated its guidance on making changes to governing documents. Trustees must only make changes to the governing documents - that are in the best interests of the charity Page | 12 Management Letter 2024 - follow the right rules to make the changes - have received Charity Commission authority before certain changes can take effect such as changing the charity’s purpose, allowing connected individuals to benefit from the charity and deciding where the charity’s money or property goes on wind-up. Trustees should also keep a record of any information or evidence they have used to make the decision and, where appropriate, consult the charity’s members, beneficiaries and other stakeholders about the change being made. Don’t forget to tell Companies House/Charity Commission about all the changes you make to your governing documents. ## Charitable companies: changing your governing document ## **What can you pay trustees for?** Trusteeships are voluntary positions and are therefore unpaid. However, trustees are entitled to claim reasonable expenses in performing the role of trustee. Only in exceptional circumstances should a trustee be paid for being a trustee. Charities can now pay trustees for the supply of goods and services providing their personal interests do not conflict with their duty to act in the interests of the charity and that the governing documents do not prohibit it. If a charity decides to employ a trustee in a role within the charity, it must firstly ensure that the governing documents allow for this type of arrangement, and if not, the Charity Commission or the Courts should be approached. In all these decisions, the trustees should assess any potential risks, carefully manage any conflicts arising and ensure the appropriate policies are in place. It’s also important for trustees to be open and transparent about such arrangements. More information can be found at Trustee expenses and payments ## **Charity mergers** Merging two charities can be beneficial for many reasons including: - cost savings - complementary service offerings - reduce duplication - wider impact - reduce administration - increased bargaining power - additional skill sets - learning from each other’s knowledge and experience A merger will involve two separate legal entities combining to form one charity under one governing document and one trustee body for the future. In practical terms, one charity will transfer its assets and liabilities into the other charity which is the charity that is retained for the future. Good planning will help you achieve a good merger. There are also a huge number of areas to consider and deal with as part of the merger. You may also need to gain the Charity Commission’s permission to merge. More guidance is available at How to merge charities. ## **Changing charity structures** Page | 13 Management Letter 2024 As charities grow, they may want to employ staff or enter into contracts and the existing charitable structure may be a hindrance to this. Charities may consider changing their structure to accommodate this growth – typically changing from an unincorporated charity to either a CIO or incorporated charity/charitable company. The trustees first need to decide to make the change in the best interest of the charity. It is also important to consult the Charity Commission to gain their permission. Detailed guidance is available at Change your charity structure ## **Charities Act 2022 changes – phase 3** On 7 March 2024 the latest Charities Act 2022 came into force. These changes cover the following area: Guidance making it easier for unincorporated charities to change their governing documents, making it consistent with changing governing documents for other types of entities. New rules about gifts left to charities that have merged mean gifts such as legacies will be passed onto the merged charity. Selling, leasing and otherwise disposing of charity land provisions were due to come into force in June 2023 but have been postponed until now. These include changes about what must be included in statements and certification for both disposals and mortgages and exemptions for liquidators, receivers, and administrators from having to comply with the restrictions on dispositions and mortgages. ## **Charity Commission strategy 2024-2029** On 26 February 2024 the Charity Commission issued its 5 year strategy focusing on fairness, balance, independence, digital and data, and people, set within the context of its statutory remit, functions and powers. Charities will need to be dynamic over the next 5 years to deal with an ever-changing world, and demonstrate resilience both in their leadership and in their finances. The Charity Commission is there to support this and to promote trusteeships as an attractive proposition. To add context: - Charity sector income - £89.85 billion - Charity sector spend - £87.53 billion - Number of charities on the register – 169,255 - Number of trustee positions filled – 921,924 - Nearly half of the charities on its register (75,520) have an income below £10,000, equalling £188.2 million - Two thirds of the income of the sector comes from the public, as donations, legacies, and other charitable activities - £58.4 billion The Charity Commission has set out its priorities as - 1) We will be fair and proportionate in our work and clear about our role. - 2) We will support charities to get it right but take robust action where we see wrongdoing and harm. Page | 14 Management Letter 2024 - 3) We will speak with authority and credibility, free from the influence of others. - 4) We will embrace technological innovation and strengthen how we use our data. - 5) We will be the expert Commission - where our people are empowered and enabled to deliver excellence in regulation. ## **Charity Commission’s new CEO** David Holdsworth has been appointed as the next Chief Executive of the Charity Commission for England and Wales and will take up his role on 1 July 2024, succeeding Helen Stephenson whose seven year’s term comes to an end this summer. David returns to the Charity Commission having previously served as Deputy Chief Executive and Registrar, having led the Commissions data handling, digital capability and risk assessment. ## **Budget and charities** The Chancellor set out his budget on 6 March 2024, but there was little good news for charities. It is helpful that income tax hasn’t been reduced for charities as this preserves the level of gift aid that can be claimed. Class 1 National Insurance will decrease from 10% to 8% which helps with household disposable income. The VAT threshold will increase from £85,000 to £90,000 which should reduce the number of charities (and their trading subsidiaries) needing to register for VAT. There was however no change to VAT partial exemption rules meaning many charities cannot reclaim their full input VAT. ## **Companies House reform – charitable companies** The Economic Crime and Corporate Transparency Bill received Royal Assent in October 2023 and became the Economic Crime and Corporate Transparency Act 2023 (ECCTA). Through this, the UK Government is reforming how and what companies report to Companies House. This legislation widens the powers of the Registrar of Companies House and aims to improve the quality of data held. The legislation introduces: - identity verification for all new and existing registered company directors, people with significant control and those who file on behalf of companies; - wider powers for Companies House to become a more active gatekeeper over company creation and a custodian of more reliable data; - improved financial information on the register so that the register is more reliable and accurate, reflects the latest digital advancements and enables better business decisions; - more effective investigation and enforcement powers along with increasing the ability to share relevant information with partners; and - enhanced protection of personal information from fraud and other harms. Currently there is no timetable set for implementing these changes. However, it’s expected that the following changes will be implemented in 2024: increased powers for Companies House to query information; Page | 15 Management Letter 2024 more robust checks on company names; - new rules for registered office addresses meaning all companies must have an appropriate address at all times. The use of a PO Box as their registered office address will be prohibited; - a requirement for all companies to supply a registered email address; - a requirement to confirm the company is being formed for a lawful purpose on incorporation and an annual confirmation that its future activities will be lawful on their confirmation statement; - annotations on the register about potential issues with the information that has been supplied; - taking steps to clean up the register and the use of data matching to identify and remove inaccurate information; and sharing data with other government departments and law enforcement agencies. Page | 16 Management Letter 2024