LLOYDS BANK
FOUNDATION
Channel Islands
LLOYDS BANK FOUNDATION
FOR THE CHANNEL ISLANDS
ANNUAL REPORT AND FINANCIAL STATEMENTS
2021

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
Contents
REFERENCE AND ADMINISTRA TIVE DETAILS
CHAIR'S REVIEW OF THE YEAR
TRUSTEES, REPOR T AND STRA TEGIC REPORT
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
LLOYDS BANK FOUNDA TION FOR THE CHANNEL ISLANDS 20
STA TEMENT OF FINANCIAL ACTIVITIES
24
25
BALANCE SHEET
STA TEMENTOF CASH FLOWS
NOTES TO THE FINANCIAL STA TEMENTS
26
27
Page 2 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Charity Number
327113
Company Limited by Guarantee
1971241
Reglstered office
Society Building
8 All Saints Street
London N19RL
corresponden￿ Address (UK)
Society Building
8 All Saints Street
London N19RL
Correspondence Address (Cl)
1 Smith Street,
St Peter Port
Guernsey GY14BD
Email
JLePoidevin
dsbankfoundation.or
Website
www.llo
dsbankfoundationci.or
Bankers
Lloyds Bank International
9 Broad Street
st Heller
Jersey, JE2 3RR
Independent Auditors
Deloilte LLP
2 New Street Square
London, EC4A 3BZ
Investment Managers
Cazenove Capital
Regency Court
Glategny Esplanade
St. Peter Port
Guernsey. GY13UF
P8ge 3 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
REFERENCE AND ADMINISTRATIVE DETAILS {cont.)
TRUSTEES
The Trustees who were In office during the year and up to the date of signing the financial
statements were:
Kathryn Le Quesne (until March 2021)
Chair, (until March 2021)
Chair of Nominations Committee (until
March 2021)
Chair of Remuneration Committee {until
March 2021)
Chair (from May 2021)
Chair of Nominations CommSttee (from May
2021)
Chair of Remuneration Committee (from
May 2021)
Brlan Heath MBE
Deputy Chair (from November 2021)
Jurat David Hodgetts LVO (until November 2021> Deputy Chair (until November 2021)
Heather Maccallum
Chair of Audit & Investment Committee
Neil Fellows
Advocate Gavin Ferguson
Alasdair Gardner
John Henwood MBE
Tracey Johnson
Poppy Murray (from December 2021 }
Philippa Stahelin (from May 2021)
Executlve Director
Johanna Le Poidevin
Page 4 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
CHAIR'S REVIEW OF THE YEAR
l am delighted to be writing my first Annual Report in my first year as Chair of Lloyds Bank
Foundation for the Channel Islands. This Review offers a chance to reflect on the year as well
as a look forward to our strategy and key objectives into 2022.
Our fundamental mission remains the same- to support charitable organisations which help
people, especially those who are disadvantaged, to play a fuller role in communities
throughout the Channel Islands.
COVID continued to overshadow our communities again in 2021 and the measures of co-
working, instant a¢￿sS to funds and being available for COVID emergency and recovery
funding continued. Many of the changes in terms of availability of funds outside nomal
deadlines were carried into 2021, to ensure delivery of money at the point of need. Joint
working with other charitable grant givers across the Channel Islands, which had worked so
well in 2020 was built on and continued, making grant giving more efficient and co-ordinated.
We have provided support with funding, mentors and training, all wllh the background of
COVID restrictions presenting a further year of challenges for Charities and the Foundation
alike. But it was also a year when we could celebrate the extraordinary work of the Foundation
within our communities through the 35-year anniversary grant programme providing 10
awards of £35,000 in unrestricted funding for charities working in the areas of.. domeslic
violence, employability support, and mental health and wellbeing,
In 2021 we awarded grants totalling £1,071,643 to the following charities:
Alderney Mind
Autism Guernsey, Bowel Can￿r Guernsey, Carers Guernsey, Guernsey Caring for
Ex-offenders. Guemsey Employment Trust, Guernsey Mind, GROW, Ron Short
Centre, Safer, Styx Centre. Trauma Recovery Cenlre, Vive La Vallette, Youth
Commission for Guernsey and Alderney
Autism Jersey, Beresford Street Kitchen, Brightly, Centre Point Trust, Famlly Flrst,
Jersey Action Against Rape, Jersey Child¢are Trust, Jersey Eating Disorder
Support, Jersey Employment Trust, Jersey Women's Refuge, NSPCC Jersey, The
Shelter Trust, Words and Numbers Matter
We continue to inform our communities of the work of the Foundation, with a much enhanced
social media programme, celebrating the work of our local charities and highlighting their value
to those who they serve. Greater reach within the communities led to more charities knowing
about the help we can give and broadening our funding application base. We seek always to
find new opportunities to support people in the Channel Islands, via our social media platforms
but more importantly with direct engagement in our communities with personal contact and
visits, when possible. Partnerships with charitable organisations is a mainstsy of our working
and although primarily this is through our grant and matched giving programmes, It is also
through sharing time, expertise, and skills with one-to-one support for charities and for the
wider sector through training and events. A powerful offering from the Foundation comes
through our mentoring programme and we were able to match eight Lloyds Bank colleagues
as volunteer mentors lo charities in 2021.
Page 5 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
CHAIR'S REVIEW OF THE YEAR (cont.)
Governmenls Gonts'nue to be preoccupied with political pressures. so the work of the
Foundation becomes ever more important. Discussions at Government level are being had
via our combined grant givers groups and with the Foundation. Partnership working must be
the key going forwards.
As we move fo￿ardS in 2022, we recognise thatthe Foundation and the charities we support
will continue to face challenging times. Many charities stepped in to fill gaps in services and
used reserves to fund them. Already we are seeing high demands for support as we approach
our first round of grant giving for the year, so selecting who we can help will be no easy task.
We are enormously gratefvl to our sole funder, Lloyds Banking Group for their ongoing
financial commitment and wider support offered to Ihe Foundation and charities in the Channel
Islands. We are also grateful to the supportof Lloyds Bank Foundation for England and Wales
helping to ensure the smooth running ofthe Foundation's baCk-Offi￿ functions.
We are fortunate to have the experience and expertise of Jo Le Poidevin, our Executive
Director. She has been instrumental in building links with other grant givers, reacting quickly
to charity needs and guiding the Board through the challenges over the past year.
As ever, the Foundation has been grateful to call upon the services of the Board and the
Trustees have performed theirduties with real diligence and enlhusiasm. We said goodbye to
our Chair Katie Le Quesne, who has led the Foundalion admirably and set so many new
initiatives in place to strengthen the organisation. We thank her and wish her well.
Another Trustee and Deputy Chair, David Hodgetts, came to the end of his term and we thank
him for sharing his infinite knowledge and expertise. A new Trustee, Poppy Murray was
appointed recently, and I know will prove a huge asset to the Board and will strengthen us
with her skills.
Our focus will remain on our core objectives and criteria, supporting charities who really make
a difference. With a wat¢hfvl eye on Ihefinancials, the Foundation will look togive funds where
the need is greatest, and the results of those funds are most impactful. Raising awareness in
the community, engaging Lloyds Bank locally in our work will be part of our aim for 2022, as
well as continuing our mentoring and training programmes. This and working with partners
and engaging with Government will be the core strands and aims for the Foundation for the
year ahea
Philippa Stahelin
Chair of Trustees
31 March 2022
Page 6 of38

LLOYDS BANK FOUNDATION FOR THE CHANNEL18LANDS
YEAR ENQED 31 DECEMBER 2021
Granls approved In 2021
All grants during 2021 (excluding cancelled grants and Matched Giving) fell within one or other
of the two main objects of the Foundation.. Education and Training. or Social and Community
Needs.
Issue
2021
No. of
Grants
2021
Grants
2020
2020
No. of Grants
Grants
6 106,368
7 194,813
4 151,200
11 361,824
68,383
Support for Children and Young People
Health including Mental Health
Support for People with Disabilitles
Community Support
Training, employmenl and lifelong learnlng
Victirn Support
Offenders l Ex-offenders
Relationships including caring
Homelessness
269,699
189,000
249,944
83,000
105,000
70,000
35,000
35,000
35,000
84,050
Total Grants
29 1071643
33 966,638
Page 7 of 38

LLOYDS BANK FOUPIDATION FOR THE CHANNEL ISLAND8
YEAR ENDED 31 DECEMBER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT
(Incorporatlng the Directors, Report)
The Trustees, who are also Directors of the company, present their annual report and the
audited financial statements for the year ended 31 December 2021, which have been
prepared in accordance with Charities SORP FRS 102 (second edition - October 2019),
the Companies Act 2006, and the Charities Act 2011. The Trustees have taken into
consideration the Charity Commission guidance on public benefit.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governlng documont and constltution
The Lloyds Bank Foundation for the Channel Islands was incorporated under and is regulated
by its Memorandum and Articles of Association dated 13 December 1985 (as altered by
Special Resolution on 17 March 1999, 2 December 2013 and 25 March 2014} as a company
registered in the United Kingdom and limited by guarantee.
Structure of the Foundation
Of the nine Trustees, Ihere is representation from the two main Islands. plus the Chair. The
names and roles of Trustees are provided on page 4 of this report.
The legal and accounting records are maintained in London. Details of auditors, investment
managers, bankers and location of registered office are included on page 3.
Recruitment, appointment, Induction and trainlng of Trustees
The list of Trustees Covers the year to 31 December 2021 and up to the date of signing the
financial statements. Their appointments are ratified by Lloyds Banking Group Plc's
Nomination and Governan￿ Committee on the recommendation of the Foundation's Board
of Trustees.
Applications for Trusteeship are sought both Ihrough Island-wide nelworks and open
competition. The Nomination Committee, which operates under specific terms of reference
delegated from the Board ofTrustees, comprises at least three seNing Trustees who consider
nominations and interview candidates or agree a Selection Panel of three from the Board of
Trustees to undertake recruitment.
Trustees normally serve for a three-year period and may be re-appointed for one further three-
year term. Trustees. skills and outside interests are regularly reviewed, and prior to seeking
a new Trustee the Nomination Comrnittee reviews the composition ofthe Board to identify any
specific ski118 required and training is provided as required.
Newly appointed Trustees are provided with a comprehensive pack of induction materials
and are encouraged to visit beneficiary charities together with fellow Trustees or the
Executive Director.
Tho Board
The full Board of Trustees makes strategy and policy decisions and sets the annual budget.
The Chair has authority to approve grants up to £5,000 per grant belmieen Board meelings
but apart from those, all grant decisions are made by the full Board ofTrustees.
Page 8 of 38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLAND8
YEAR ENDED 31 DECEMBER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT (cont.)
ORGANISATIONAL STRUCTURE AND DECISION.MAKING
Th8 Board Icontlnued)
The Board meets four limes a year(ormore frequently ifrequired), normally in January, March
(incorporating the AGM), July and November. Meeting venues normally alternate between
Guernsey and Jersey. Due to the pandemic travel restrictions the Board met virtually from
March 2020 onwards. The Board was able to meet fa￿ to face in November 2021.
The Executive Director is responsible for the day-to-day operation of the Foundation and has
authority to incur administrative expenditure within the budget set by the Trustees. Initial
assessment of applications, visits to applicants and monitoring visits of grant holders are
undertaken by the Executive Director who is based in Guernsey and would normally frequently
travels between the Islands. Due to the pandemic visits were conducled virtually to comply
with the government restrictions and regulalion8, with limited face to face visits during the
latter part of 2021.
Board Committ808
There are three permanent Committees ofthe Board, whlch report fully on their meetings and
other activities
the Nomination Commiltee, Audit and Investment Gommittee and
Rernuneralion Committee each of which comprise a minimum of three Trustees. The Terms
of Reference of these Committees are regularly reviewed by the Board.
The role of the Audlt and Inveslment Commlttee is to satisfy itself that any financial
statements published by the Foundation follow approved accounting principles and give a true
and fair view of the Foundation's financial posilion. This includes examination and review of
the Foundation's annual financial statements with the auditors prior to consideration by the full
Board, and examination and review of reports prepared by the Lloyds Banking Group pl
internal audit function. The Committee's remit also includes overseeing the Foundation's risk
management procedures and monitoring investments held by the Foundation.
The Committee meets annually. to consider the report of the auditors and the annual report
and financial statements prior to their presentation to the full Board. All members of the
Committee normally attend meetings. The Committee sab'sfies itself as to the auditors,
independence.
The role of the Remuneratlon Commlttee is to make recommendations lo the Trustees
concerning the broad policy framework for remuneration and the year-end review of
Foundation staff. It determines the remuneration package and terms and conditions of the
Executive Director {at present the sole paid employee) on appointment and recommends to
Trustees her salary for the forthcoming year. Pay setting is calculated by research on market
indicators.
The role oflhe Nomlnation Commltte8 is to make recommendations to the Board of
Trustees and Lloyds Banking Group plc Nomination and Governance Committee on the
appointment of new Trustees, giving due consideration to the balance of skills, interests and
experience on the Board of Trustees.
Pag& 9 of 38

LLOYD8 BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT {cont.)
Board Commlttees (continued)
The process for the appointment of new Trustees is described, above, in the Section headed
°Recruilment, appointment, induction and Iraining of Trustees..
Risk management
The systems of internal Control are designed to provide reasonable, but not absolute,
assurance against material misstatement or loss. They include..
An annual budget approved by the Trustees
Regular consideration by the Trustees of financial results. variance from budgets
Delegation of authority and segregation of duties
Identification and management of risks
Approval of grants by the Trustees
In respect of operational practices, a review of risk8 facing the Foundation is undertaken by
the Board. Risks identified are prioritised in terms of potenlial impact and likelihood of
occurrence, and the Trustees confirm that systems or procedures are in pla￿ to mitigate the
significant risks identified. The review incorporates examination of the adequacy of the
Foundation's internal controls. It is recognised that risk management is an ongoing activity
Involving all Trustees and staff and is established as an agenda item for the fvll Board and
Audit and Investment Committee.
The principal risks are as follows.
Risk
Virtually all the
income
arising
from
single
sOU￿e,
Lloyds
Banking Group plc
Investment losses
How wo manage It
The funding agreement includes a minimurn level - this was
increased in 2021 from £460,500 10 £614,(XJO effective from
2022
The funding agreement requires nine year's noti￿ to be given
Funding is available frorn reseNes to maintain grant giving
Regular monitoring of performance
Diversified portfolio
Advice from Investment Manager- Cazenove Capital
Regular feedback from grantees
Training and support for grantees
Regular review of grant making strategy
Support from Lloyd5 Foundation for England & Wales
Support of Executive Director by Chair and Trustees
Regular communications and monitoring
Training in cyber security
Access controls
Back up and recovery processes
Impact
5s the
Foundation making
the deslred Impact
Key person failure
IT security
P8ge10of 38

LLOYD8 BANK FOUNDATION FOR THE CHANNEL ISLAND8
YEAR ENDED 31 DECEMBER 2021
TRUSTEES. REPORT AND STRATEGIC REPORT (cont.)
Related partles
The Foundation is related to Lloyds Banking Group pl¢ and connected to the Lloyds Bank
Foundation for England & Wales, Halifax Founitation for Northern Ireland and the Bank of
Scotland Foundation. See Note 12 for details of transactions with Ihese connected charities
and related parties.
Each Foundation is directed by its own independent Board of Trustees.
OBJECTIVES AND ACTIVITIES
The obj-ects of the Foundation, as set out in the Memorandum of Association, are as follows..
The Lloyds Bank Foundation for the Channel Islands is established to do anything which is a
charitable purpose according to the laws of England and Wales from time to time principally
in, but not limited to, the Channel Islands including in particular (but without prejudice to the
generality of the foregoing}'.
To advan￿ education and training in all aspects of knowledge by means of (but not
limited to) the making of grants. including the establishment of scholarships and prizes,
and other like awards-
To advance scientific or medical research, on the condition that all useful results of
such scientific or medical research are published, and education in scienlific or medical
research by means of (but not limited to) the making of grants, including the
establishment of scholarships and prizes, and other like awards; and
To promote the provision of facilities in the interest of social and community welfare for
recreation and leisure time occupation and enjoyment of the arts with the object of
improving the conditions of life of people who are disadvantaged by youth. age, infirmity
or disablement, povety or social and economic circUmstan￿s.
Alms, objectives, strategies and slgnlflcant activities
The aims of the Foundation are encapsulated in the mission statement..
The Foundation's mis&on is lo support ch8rilabl8 organisalions which help people, especially
those who are disadvantaged, to play a fuller m18 in communities Ihroughoul the Channel
Islands.
The Trustees, primary objective for the year was to continue to provide grants to support
charities meeting a wide range of needs in the Islands, in accordan￿ with the Foundation's
objects and through the following grant-making programmes:
A responsive grant-making programme to support charities with
beneficiaries in the Bailiwick of Jersey.
A responsive grant-making programme to support charities with
beneficiaries in the Bailiwick of Guernsey, induding Alderney and
Sark.
Jersey
Guernsey
Page 11 of38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT {cont.)
Alms, objectives, strat6gie8 and signlflcant actlvltles (contlnued)
Channel Islands-
wide
and UK
Matched Giving
Scheme
A responsive grant-making programme to support chartties working
across the Channel Islands as a whole and, normally in ¢onjunction
with the sister Lloyds Bank Foundations, in the UK.
A scheme open to members of staff of Lloyds Banking Group plo
based in the Channel Islands, to match fundraising efforts or
voluntary time given to charities within the Foundation's guidelines.
A second objective was to continue to provide developmental support including mentoring, to
help charities to improve their resilience and sustainability.
Aehievoments and performance
A review of the activities of the Foundation during the financial year is presented in the Chair's
Review of the Year (page 51.
The Foundation's performance in respect of the primary objective was as follows.,
The grant expenditure approved in the year, excluding Matched Giving and can￿lIed
grants, amounted to £1,071,643 (2020.. £966,638).
There were 15 grants for Jersey and 13 for Guemsey based charities and one for
Alderney.
15 charities received donations under the Matched Giving scheme.
The Foundation's performance in respect of the Second objective was as follows:
Embedding a Charity Support offer including access to Charity Response Forums, the
Skills Exchange and a mentoring programme in partnership with Lloyds Banking Group
colleagues
In partnership with Lloyds Bank Academy the delivery of a series offive digital webinars
for charities: Creating a digital strategy,. Leading and collaborating using digital tools.
Creating your online brand; Telling your story in an online world- and Becoming an
effective influencer.
Publ1¢ ben6fil
In reviewing our alms, objectives and planning for future activilies, the Trustees have
considered the Charity Commission's general guidance on public benefit. The Trustees
always ensure that the activities undertaken are in line with the charitable objectives and aims
of the Lloyds Bank Foundation for the Channel Islands.
FINANCIAL REVIEW
Income
In December 2013 the Foundation entered into a new nine-year rolling agreement, the
covenant, with LBG. From 2014, the Foundation re￿iVeS 0.015350/0 of the Group's profits,
averaged over three years, subject to a minirnum amount of 3.07% of £20 million (£614,000)
and a maximum amount of 3.070h of £50 million (£1,535,000). This secures the Foundation's
funding over the long term.
Page 12 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT {cont.
FINANCIAL REVIEW (contlnued>
The Foundation's donation income for 2021 at £868,690 was similar to the wior year (2020..
£868,293).
The olher source of income was interest and dlvidends of £23,583 (2020.. £22,491). In
addition to the dividend income the Foundation's investments generated unrealised gains of
£128,612. This compares to the un￿aliSed gains of £155,979 In 2020.
Expendlture
Charitable expenditure for the year by the Foundation was £1,186,971 {2020- £1,074,728).
This resulted in a deficit of £166,086 compared to the deficit for 2020 0* £27,965.
Grants
The Foundation's policy is to support registered charities or those accorded charitable status
by States of Guernsey Revenue Services and Guernsey Registry and Jersey's Charity
Commission to help disabled or disadvantaged people to play a fuller role in communities
throughout the Islands.
Guldelines are published and are also available on the Foundation's website
wvwj.ilo
dsbankfoundalionci.or
uk which set out the range of activities eligible for
consideration. Currendy the priorities identified by the Trustees as those they wish to focus
on within their overall objectives cover,.
Health including mental issues or a disability - We support charities which create
opportunities for people with health issues including mental health or a physical or
learning disability to live and work independently.
Homelessness - We help charities which provide accommodation and support for
people who are homeless or at risk of homelessness and support Iheir return into
society.
People leaving institutional care to live independently - We help charities providing
support and accommodation for people who are getting back into society after leaving
care or prison.
Addiction and dependency - We support charities providing education and
rehabilitation for people who misuse alcohol and drugs and have gambling problems.
Loneliness and isolation- We help charities providing support to people who are
vulnerable, people experiencing loneliness and people with carer responsibilities.
Employment, literacy, financial literacy and debt problems - We support employment
and learning programmes for people disadvantaged by poor education and literacy
Including financial literacy and debt problems.
Domestic violence - We support charities who help prevent and protect people from
abusive relationships.
Human Rights - We help charilies who promote and protect human rrghts issues
{from mcdern slavery to sexual exploitation), and charities who challenge
discrimination and promote equality, diversity and inclusion.
The Foundation supports charities which demonstrate good governance and sustainable
activities measured against identifiable outcomes. Grants are agreed by the Trustees for a
one, two or three-year period, and monitored at least on an annual basis.
Page13 of38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT (cont.)
Grants (Continued)
The Foundation has adopted a poliGy for accounting purposes which recognises the total grant
in the year in which it is approved (see note 1 for relevant accounting policy). This increases
the transparency in terms of grant commitment and means that existing grants are not
impacted by fvture income (because provision has been made up-front for payments due in
years and three). In the medium term, if the financial position of the Foundation
deteriorated significantly over a number of years, then changes in levels of grant-making may
be considered.
Reserves
The Foundation's policy Is to set a planned upper limit on its targeted reserve level so that
the Foundation does not hold funds back from delivering its charitable activities
unnecessarily.
The Foundation aims to manage its reserves within an upper and lower reserve limit, or
'reserves corridorf. The Foundation monitors its short and medium forecast position to
dentify risks that could cause it to fall outside of this corridor (either side of it), and what
corrective actions would be required to bring the Foundation back into the corridor over a
Ihree-year period.
It is essential that the Foundation's minimum reseNe requirement is met by'liquid, assets so
it can be confident that it would have the funds at any given point in lime should the
Foundation need them. Liquid Assets are readily accessible assets. principally cash.
The Trustees have set a lower reseNe level of£l.5m and an upper reserve level of£2.5m at
year end. Temporary reductions below £1.5m are permissible to allow for exceptional grant
funding such as projects or emergencies subject to the provision that at no time shall
forecast reserves fall below £1.25m.
As at 31 December 2021 the Foundation's unrestricted reserves were £1.648.776 {2020:
£1,814,862) which isjust above the lower reserve limit.
The above reserv8s corridor is based on forecast results and does not take into account
exceptional events which may or may not occur, such as sudden and unexpected market
impacts on investments. Should such events occur and not be temporary, the Trustees
would, as noted above, be expected to determine what corrective actions are required to
bring the Foundation back into the corridor over a three-year period.
Investments
In order to manage investment risk, the Board of Trustees appointed Cazenove Capital as
investment manager.
The Investment criteria reflect the ethical policies and risk appetite of the Foundation. we aim
to follow Lloyds Banking Group's Responsible Investment Framework. Its exciusions policy
focuses on companies that have failed to meet ESG standards. In support of this the
Foundation wishes to exclude the following investments..
Page 14 of 38

LLOYDS 8ANKFOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDEO 31 DECEMBER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT {cont.)
Investments (continued)
li) manufacturers of controversial weapons
{ii) UN Global Compact violators
(iii) those companies deriving more than 1 OOA of their revenue from thermal coal and
tar sands extraction.
The Trustees aim to keep at least 70Q/D of the assets in investments that can be realised within
Ihree months.
The Foundation's principal funds are invested in a diverse portfolio with a low to medium risk
appelite which is focussed on capital growth, comprising of mults class assets and currencies.
The asset allocation at 31 De￿mber and perfomiance for the year was as follows.
Assets
2021
£'ooo
929
386
433
43
Allocatlon
2021
Assets
2020
£'ooo
1.067
547
391
58
Allocatlon
2020
uities
Bonds
Alternative investments
Cash
Total
51.8
21.6
24.2
51.7
26.5
19.0
100.0
100.0
The portfolio does not contain any direct investment in equity and bonds. All investments are
made through collective inveslmenl funds (such as OIECS, SCIAVS and UCITSs}. These
investments totalling £1.3 million (2020.. £1.6m) are regarded as Level 2 investments in
accordance with Section 34 of FRS 102. The funds individually invest in listed securities and
the valuations are provided by the fund rnanager based on the fair value of each security.
The alternative investments are regarded as Level 2 investments except for the structured
products which are regarded as Level 1, are made up as follows;
Alternative investments
Hed e Funds
Commodities
Diversified Asset Fund
Slru¢tured Products
Total
2021
2020
145,932
122 258
150,301
123 384
£432,930
£391.381
The Hedge Fund and Commodities are also invested in a UCITS Fund with individual
valuations provided by the fund manager based on fair value of individual investments. The
Diversified Fund is a Schroders Fund which invests in a wide range of asset classes with the
investments in listed investments valued by the fund manager at fair value. The structured
products are five structured notes with an investment bank counterparty and included at fair
value.
P8ge IS of38

LLOYD8 BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT (cont.)
Investments (contlnued)
Performance benchmarks are established by the Audit and Investment Committee and agreed
with the investment manager. Performance against the agreed benchmarks are reviewed half
yearly by the Audit and Investment Committee.
The performance compared to benchmark was a8 follows.
Fund erformance
2021
2020
7.00
8.20
Benchmark
2021
2020
8.60/0
3.60
Total fund
Flnanclal rlsk management
The risk associated with the Foundation's investments are monitored by the Audit and
Investment Committee and managed on a day-to-day basis by its inveslment managers,
Cazenove Capitsl.
(l) Market rlsk
Exposure- The portfolio is well diversified with holdlngs In a wide range of asset classes.
The Foundations, investmenls are made up from holdings in over 30 managed funds
selected by Cazenove Capital.
The Foundation derives the majority of its income from the covenanted payment from Lloyds
Banking Group and is able to take a long-term view of its investments.
Sensitivlty- The largest market risk is a fall in the value of equity markets. Based on the
position at 31 December 2021. in the event Ihat there was a general 10Yo fall in equity
markets there would be a reduction In net income and the value of investments of £92,900
(2020: £108,700).
Currency- 85¢k of the Foundation's investments are held in GBP with 140/0 in US $ and 1 %
in Euro. A 100kn fall in US $ would result in a reduction in net income and the value of
investments £24,499 {2020: £27,350).
(il) Credlt rlsk
At 31 December 202122Yo (2020: 27Yo) of the Foundation's inveslments were invested in
bonds. The Foundations, bond investments are made through holdings in nine {2020.' nine)
managed funds selected by Cazenove Capital which spreads the exposure across a large
number of counterparties.
(111) Llquldlty risk
The majority of the managed funds in which the Foundation has invested have daily dealing
which would allow the Foundation to realise cash if this were required.
Fundralslng Actlvltles
Section 162a of the Charities Act 2011 requires charities to make a statement regarding
fundraising activities. The legislation defines fundraising as 'soliciting or otherwise procuring
money or other property for charitable purposes. In relation to this statement, the Foundation
does not undertak& fundraising from the general public and does not
Page 18 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
TRUSTEES. REPORT AND STRATEGIC REPORT (cont.)
Investments {contlnued}
employ professional fundraisers. The charity is therefore not bound by any regulatory
scheme and does not consider it necessary to comply with any voluntary code of practice.
The Foundation does not have policies in relation to ftjndraising actlvities nor do we consider
it necessary to design specific policies and prO￿dureS to monitor activities.
PLANS FOR FUTURE PERIODS
Future activitles
The Foundation will continue to make grants to charities helping disadvantaged and disabled
people play a fuller role in the community through the same grant-making programmes and
will continue to provide developmental support including mentoring, to help charities to
improve their resilience and sustainabilily.
The Foundation is committed to delivery of ils core objectives and supporting those Charitles
with sustainable activities, measured against identifiable outcomes.
The Trustees have agreed the following objectives:
to continue to provide grants to support charilies meeting a wide range of needs in the
Islands, in accordance with the Foundation's objects and through.its grant-making
programmes
to continue to provide developmental support including mentoring, to help charities to
improve their resilience and sustainabilily
COVID 19 and other events
The Trustees have considered the impact of the latest developments surrounding Covid 19
on the Foundation, including its connected foundations,.grantees and investments. The
trustees note that.,
The Foundation's staff have been able to work from home, when required through Ihe
crisis.
Every effort is being made to support existing grant holders including ftexibility on
delivery of setvices, grant spend and grant periods, and temporarily relaxing outcome
monitoring and reporting deadlines. The Foundation introduced a COVID recovery 35
grant programme tolaling £350,000 to mark the Foundalion's 351h anniversary. The
grant programme awarded £35.000 in unrestricted funding to 10 charities addressing
domestic violen￿, employability support for people who are disadvantaged, and
mental health and wellbeing.
The Foundation is closely monitoring the value of its investments. Although the Foundation's
investments fell in the early weeks of the pandemic in 2020 the values recovered to show
positive returns in both 2020 and 2021. The value of investments has fallen in the early part
of 2022 as a result of external events and the Trustees are keeping the situation under
review. Although there are currently no restrictions on redemptions from any of the funds in
which the Foundation is invested the fall in value may affect any decision to draw upon funds
held by Cazenove Capital through disposals to enhance our grant giving capability.
Page 17of 38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT (cont.)
Golng concern
As stated above we are able to take a long-term view of our investments and the covenant
with the Lloyds Banking Group provides a significant degree of protection. The funding for
2022 has been received in full and for future years the agreement. which requires nine years
notice to be given, provides for a minimum payment of £614,000 to be paid each year and
that the actual sum paid is based on the profits of the three prior years. The Trustees are
therefore confident that they are able to fully fund their operating costs, meet all existing
grant commitments and continue grant funding activities for the remainder of the year and
throughout 2023.
STATEMENT OF TRUSTEES, RESPONSIBILITIES
The Trustees (who are also directors of Lloyds Foundation for the Channel Islands for the
purposes of company law) are responsible for preparing the Trustees, Report and the financial
statements in accordan￿ with applicable law and regulation.
Company law requires the Trustees to prepare financial statements for each financial year.
Under that law the Trustees have prepared the financial statements in accordance with United
Kingdom Accounting Standards, comprising FRS 102 °The Financial Reporting Standard
applicable in the UK and Republic of Ireland. and applicable law (United Kingdom Generally
Accepted Accounling Practice). Under company law the Trustees must not approve the
financial statemenls unless they are satisfied that they give a true and fair view of the state of
the affairs of the charitable company and of the incoming resources and application of
resources, including the income and expenditure, of the charitable company for that period. In
preparing these financial statements. the Trustees are required to-
select suitable accounting policies and then apply them consistently-
observe the melhods and principles in the Charities SORP FRS 102 (second edition
October 2019).,
make judgments and estimates that are reasonable and prudent.,
state whether applicable UK Accounting Standards, comprising FRS 102, have been
followed, and
prepare the financial statements on the going concern basis unless it is inappropriate
to presume that the charilable company will continue in business.
The Truslees are responsible for keeping adequate accounting records that are sufficient to
show and explain the charitable company's Iransactions and disclose with reasonable
accuracy at any time the financial position of the charitable Company and enable them to
ensure that the financial statements comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the ch8rilable company and hence for taking
reasonable steps for the preventlon and detectlon of fraud and other Irregularities.
The Trustees are responslble for the Maintenan￿ and integrity of the charilable company's
website. Legislation in the United Kingdom governing the preparation and dissemination of
financlal statements may differ from leglslatlon in other jurisdictions.
Pagè18 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL IBLINDS
YEAR ENDED 310ECEM8ER 2021
TRUSTEES, REPORT AND STRATEGIC REPORT {cont.)
STATEMENT OF TRUSTEES, RESPONSIBILITIES
In so far as the Trustees are aware=
(a} there is no relevant audit information ofwhich the company's auditors are unaware,. and
(b) the Trustees have taken all the steps that they ought to have tsken as Trustees in order to
make themselves aware of any relevant audit information and to establish that Ihe charitable
company's audltors are aware of Ihat information.
INDEPENDENT AUDITORS
A resolution concerning the appointment of Deloltte LLP as auditors to the Foundation will be
proposed at the annual general meeting.
This report, including the Strateglc Report was approved by the Board of Trustees on 31
March 2022 and signed on their behalf by..
Philippa Stahelin
Chair of Truslees
31 March 2022
Page19of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
Independent auditor's report to the members of Lloyds Bank
Foundation for the Channel Islands
Report on tho audit of the flnanclal ststgments
Oplnlon
In our opinion Ihe financial statements of Lloyds Bank Found8tion for the Channel Islands Ilhe
'charilable ¢ompany'}'.
give a true and falr view of the slate of the charitable comp8nWs affairs as at 31 December
2021 and of ils incoming resources and application of resources, including SIS income and
expendllure, for the year then anded
have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice, includlng Financial Reporling Standard 102 'The Financial Reporting
Standard applicable in the UK and Republic of Ireland,: and
have b89n prepgred in 8ccordance with the requirements oflhe CompanEe$ Act 2008.
We have audited the financial slalements, vthlch comprise:
the slalement of financial activities
the balance sheet
the statement of cash flows,. and
the related noles 1 to 12.
The financial reporting framework that ha8 been applied in their preparation is applicable law and
Unlted Kingdom A¢counllng Standards, including Financial Reporting StAndard 102 'The Financial
Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally
Accepted Accounling Practice).
Basls for opSnlon
We conducted our audit in 8ccordance with International Standards on Auditing (UK) {ISAs {UKI) and
applicablo law. Our responsibilities under those standards are further described in the auditor's
responsibilities for the 8udit of the financlal statements section of our report.
We are independenl of the chailtable company in a¢cordan¢e with the ethical requirements that are
relevant to our audit of the financial slalemenls in the UK, including the Financial Reporting Council's
(Ihe 'FRC's') Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance
with these requiremenl$. We believe that the audit eviden￿ we have obtained Is sufficient and
appropriate to provide a basis for our opinion.
Conclusions relatlng to golng concern
In auditing the financlal slatements, we have concluded thal Ihe Trustees, use of the going concern
basis of accounting in the preparation of the flnancial slalements IS appropriate.
Based on Ihe work we hav8 P8rfoTmed, we have nol identified any material uncertainties relating to
evenls or conditions that, individually or collectively, may cast significant doubt on the charitable
ompany's ability to continue a8 a going concern for a period of at least 12 months Irom when the
rinancial statements are authorised for issue.
Page 20 0138

LLOYDS BANK FOUNDATION FOR THE CHANNELISLANDS
YEAR ENDED 31 DECEMBER 2021
Our responsibilities and the responsibilities of the Trustees wtlh respect to golng ¢onwn are
described in th& relevant sections of this report.
Other Informatlon
The other information ¢ompri8es the information included in the annual report, other than the
financial 81atements and our audiloffs report Ihereon. The Trustees are responsible for the other
information ¢onlained w*thin the annual report. Our opinion on the financlal slatemenls does not
cover the other informalion and, except lo the extent otherwise explicitly stated in our report, we do
not express any form of a88urance conclusion theT80n.
Our responsibility 18 to read the other information and, in doing so, conslder whether the other
information is materially inconslstent with the financial stalemenls. or our knowledge obtained in the
course of the audit, or othemise appears lo be materially misslated. If we idenlify such material
inconslsten¢ies or appgrenl material misstatements, we are required to determine whether this gives
rise lo a material misstatement ill the financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of this other infomiation, we are
required to report thal fact.
We hav8 nothing to report In thls regard.
Respon8ibilitiè8 of Trusteas
As explained more fully irt the Trustees, responsibilit185 statement, the Trustees (who are 8180 the
Directors of the charitable company for the purpose of company law) are responsible for th8
weparalion of the financial statements and for being sallsfiod Ihal they give a true and fair view, and
for such internal control as the Trustees determine is necessary to enable Ihe preparation of financial
slalements Ihal are free from material misstatement, whether due to fraud or error.
In preparing the financial stalements, the Trustees are responsible for assessing the charitable
company's ability to continue as a going concern, disclosing. as applicable, malleT8 related lo going
oncern alld using Ihe going concern bas18 of 8c¢ounling unless the Trustees either intend to
liquidate the charitable company or to cease opeiations, or have no realistic all8rnaliv8 but to do so.
Auditor's responslbllltles for the audlt of tho financial stalements
Our objecllves are lo obtain reasonable as8urance about whether the financial slalements as a
whole are free from material misslalement, whelher due lo fraud or error, and10 18sue an auditoff s
report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a
guarantee that an audil cOndu￿ed in accordanc8 with ISAS {UK} will always detect a material
misslalemenl when il exists. Misstat8m8nls can 8ris8 from fraud or 8rror and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence th8 economic
decisions of users taken on Ihe basis of these financial statements.
A further des¢riplion of our responsibilities for the audil of the financial statements is located on the
FRC'S website al.. www.frc.or
.uklaudilorsr&s
onsibililies. This description forms part of our auditor's
report.
Extont to whlch the audlt was conslderéd capablè of detecting Irregularltles, Includlng fraud
Irregularities, including fraud, are instances of non-compliance wilh laws and regulations. We design
procedures in1Sne with our responsibililies, outlined above, to delect material misslalements in
respect of irregularities, including fraud. The extent to which our procedures are capable of delecling
irregularities. including fraud is d8tailed b810w.
Page 21 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLAND8
YEAR ENDEO 31 DECEMBER 2021
We considered the nature of the charitable company's industry and Ils control environment, and
reviewed the charitable company's documentation of their policies and procedures relating to fraud
and compliance with law8 and regulations. We also enquired of management and TrU￿ee$ about
their own identification and assessment of Ihe risks of irregularities.
We obtained an underst8nding of the legal and regulatory framework that the charitable company
operates in, gnd identified the key laws and regulations that..
had a direct effect on the delermlnation of material amounts 8nd dlsclosures in the financial
slalements. These included UK Charities Act and UK Companies Acl,. and
did not have a direct effect on the financial slalements bul compliance with which may be
fundamental to the chgrilable company's abillly to oparate or to avoid a material penalty. These
included the Charity Commission for England and Wales (Charity Commisslon) regulations.
We discussed among the audit engagement team regarding the opportunities and incentives that
may exist within the organi8alion for fraud and how and where fraud mighl occur in the financial
$lalemenls.
As a result of perferming the 8bDve, we Identified the greatest potential for fraud or non-¢omplian¢e
wilh laws and regulations in the following area, and our specific proceduros perfomied to address it
are described below..
we identified a fraud Tisk related lo the application of granl expendllure In Ilne wllh charitable
objectives, and the correct recognition of liabilitios in respect of grant expenditure. We have
addressed this risk by selecllng a sample of grants recognised in the year and reviewing the
grant agreements, Board minutes. cash paymenls and relaled information in order to
undersland the purpose of the grant, ally conditions present and ascertain the correct lovel of
expenditure and related liability lo recognise.
In common with all audits under ISAS (UK), we are also required to perform Specific procedures to
respond to the risk of management override. In addressing the risk of fraud through management
override of controls, we te8ted the appropriateness of journal entries arKI other adjustments.
8$se$sed whether the judgements made in maklng accounting e8timale8 are indicalive of a potent￿1
bias,- and evaluated the business rationale of any significant transactions that are unusual or outside
the normal course of business.
In addition to the above. our procedures lo respond lo the risks identified included the following..
reviewing financial slalemenl di8¢losures by lesting lo supporting documenlalion lo assess
compliance wSth provisions of relevant laws and regulations described as having 8 direct effect
on the financial slalements.,
performing analytical procedures to Identify any unu8u81 or unexpected relationships that may
indicate risks of material misslatemenl due to fraud,.
enquiring of management concerning actual and potential littgation and claims, and instances of
non-compliance with laws and regulations; and
reading minules of meetings of those charged wtlh governance and reviewing any
correspondence with the Charity Commission.
Report on othor logal and règulatory requlremonts
Oplnlon8 on other matters presorlbed by tho Companies Act 2008
In our opinion, based on Ihe work undertaken in the course of the audll..
Page 22 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS 

YEAR ENDED 31 DECEMBER 2021 

- the information given in the Trustees' report, which includes the Directors' report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Directors' report included within the Trustees' report has been prepared in accordance with applicable legal requirements. 

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Directors' report included within the Trustees' report. 

## **Matters on which we are required to report by exception** 

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of Trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the Trustees were not entitled to take advantage of the small companies' exemption from the requirement to prepare a strategic report. 

We have nothing to report in respect of these matters, 

## **Use of our report** 

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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. 


Sarah Anderson FCCA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor London, United Kingdom 31 March 2022 

Page 23 of 38 



LLOYDS BANF( FOUNDATION FOR THE GHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
STATEMENT OF FINANCIAL ACTIVITIES
YEAR ENDED 31 DECEMBER 2021
Note
Unrest- Rest-
rlcted ricted
2021
2021
Total
Unrest- Rest-
rlcted rlcted
2020 2020
Total
2021
2020
Income from:
Donations
Investment income
Total
868,690
23,583
892 273
868,690 868,293
23,583
892 273 890,784
868,293
22,491
890,784
Expenditure on:
Investment fees
Charitable a¢tivitses
Total
13,654
3a 1,173,317
1 186 971
13,654
12,304
1 173 317 1,062,424
1186 971 1074.728
12,304
1,062,424
1 074 728
Net (expenditura)
befor8 gain on
Investment
(294,698)
{294,698) (183,944
{183,944)
Net unrealised gain on
investments
128,612
128,612 155,979
155,979
Net (expendlture)I
income
(166.0861
{166,086) (27,965)
{27,966)
Net movement In
funds
(166,086)
(166.086) (27,965)
{27,965)
Reconclllatlon of
funds
Funds brought forward
Funds carrled
forward
1,814,862
1.814,862 1.842,827
1.842,827
9 1,648,776
1,848,776 1,814.862
1,814.862
All recognised gains and losses have been included in the Statement of Financial Activities
and the amounts included are derived from the continuing activities of the Foundation.
The notes on pages 27 to 38 form part of these financial statements.
Page 24 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
BALANCE SHEET
AS AT 31 DECEMBER 2021
Note
Total
2021
Total
2020
Flxed assets:
Tangible assets
Inveslments
Total flxed assets
1,791499 2 062,961
1 791499 2 062 961
Current assets:
Debtors
Cash at bank and in hand
Tolal current assets
917
86,210
87,127
1,157
153 507
154 664
Llabilitles:
Creditors.. Amounts falling due within one year
(197.450) {347,9631
Net current liabilltles
110323
193,299
Total assets loss current liabilittes
1,681,176 1,869,662
CrÈditors'. Amounts falling due after more than
one year
(32,400) (54,800)
Total not assets
1648 776 4 814 862
The funds of the ¢harlty:
Unrestricted funds
1,648,776 1.814,862
Total charl
funds
1648 776 1814 862
The financial statements including the notes on 27 to 38 were approved and authorised for
issue by the Trustees on 31 March 2022 and signed on their behalf by:
Philippa Stahelin
Chair of Trustees
Page 25 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2021
Notes
2021
2020
Cash flows from operatlng acllvltles
Net cash
used in
eratin
activitles
490 954
377 664
Cash flows frorn Invasting actlvltles:
Income from investments
New investrnent and reinvested income
Proceeds from sales of investments
Movements on term deposits
23,583
22,491
{596,103} 1650,735)
976,103
635,620
20,724
140,509
Net cash generatsd froml(used In) Investlng actlvltlès
423.657
147,883
Change In cash and cash equivalents In tho reportlng
oar
Cash and cash equlvalenls at Ihe beglnnlng of th8
re
ortln
ear
Cash and cash equlvalents at the end of the reporting
ear
(67.297) (229,681)
153,507
383,188
{B)
86,210
153,507
(AINET CASH FLOWS USED IN OPERATING ACTIVITIES
2021
2020
Net (expendlture)I for the reporting year
Adjustments for..
Income from investments
Decreasel(increase) in debtors
{Decrease) in creditors
Gain on investments
Net cash
used in
(166.0861 {27,965)
(23,583) (22,491)
240
(181)
(172,9131 {170,948)
128.612
155 979
490 954
377 564
eratln
actlvitles
(B)ANALYSIS OF CASH AND CASH EQUIVALENTS
2021
2020
Cash in hand
Total Cash and cash e
153 507
153,507
uivalent8
The notes on pages 27 to 38 form part of these financial ststements.
Page 26 of 38

LLOYDS PANK FOUNDATION FOR THE CHANNEL18LANDS
YEAR ENDED 31 DECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS
I. ACCOUNTING POLICIES
Basls of preparatlon
The Foundalion is a public benefit entity, is incorporated in England and Wales as a company
limited by guarantee not having a share capital. There are currently nine Trustees who are
also the members of the company. Each member has undertaken to contribute to the assets
in the event of winding up a sum not exceeding £1. The charity is a registered charity- The
registered office is given on page 3.
The financial statements have been prepared on a going concem basls under the historical
cost convention. as modified by the revaluation of investments, and in accordance with
applicable Accounting Standards in the United Kingdom, including the Charities SORP FRS
102 (second edition - October 2019), and in accordance with the Companies Act 2006 and
Charities Act 2011, using consistently applied accounting policies.
Lloyds Bank Foundation for the Channel Islands meets the definition of a public benefit entity
under FRS102. Assets and liabilities are initially recognised at historical cost or Iransacts'on
value unless otherwise statsd in the relevant accounting policy note(s).
Fund accounting
Restricted and unrestricted funds are separately disclosed as set out in nole 9. The different
funds..hel.d aro defined below..
Unrestricted funds
The Foundation's unrestricted funds are available for use at the discretion of the Trustees in
furtherance of the general objeGtives of the charity-
Restricted funds
These are funds which are subject to specific restrictions imposed by fhe donor.
Investments and cash
Listed investments are inclLided in the Balance Sheet at fair value which is their closing bid
price on the current or previous trading day. Details of the nature of the investment assets,
valuation rnethods and risk management are included in the trustee5' report.
Derivatives are recognised in the Balance Sheet at fair value. Managers of segregated funds
may enter into derivatives as part of their portfolio risk management, fair values of these
derivatives are provided by the fund managers.
Realised galns and losses on disposals in the year and unrealised gains and losses on
investments at the Balance Sheet date are included in the Statement of Financial Activities for
the relevant underlying fund. All investment income is treated as unrestricted.
Cash at bank and In hand comprises of bank accounts and term deposits.
Page27 of38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDEO 310ECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS (cont.)
1. ACCOUNTING PQLICIES {Continued)
Flnanclal Instruments other than investments
The Charity has financial assets and financial liabilities of a kind that qualify as basic and
complex financial instruments. Basic financial instruments are measured at their settlement
value in the case of current assets.
Valuation of assets
Tangible fixed assets are included at historic cost less accumulated depreciation.
Capitallsatlon and depreclatlon
The minimum value forthe capitslisation of tangible fixed assets is £1,000.
Depreciation is calculated so as to write off the cost of tangible fixed assets on a straight-llne
basis over the expected useful lives of the assets concerned. The principal rates used are:
Computer equipment
Furniture and other office equipment
33% per annum
100A per annum
All assets are fully depreciated but remain in use.
Income
Income is recognised in the Statement of Financial Activities when the Foundation is
entitled to the income, performance conditions attached to the income have been met,
receipt is probable and Ihe amount can be measured reliably.
The covenanted income is recognised in the year to which the Foundation is entitled to
the income.
Interest income is recognisad on a receivable basis which reflects the effective interest
method.
Dividend income represents the Foundation's share of dividends received from holdings
in investment funds. The income recognis8d represents the amount credited to the
investment fund.
Donated services
Donated services and faGilitFes are valued and included as income and expenditure at the
price the Foundation estimates it would pay in the open market for an equivalent service or
facility.
Recognition of expenditure
All expenditure is included on an accruals basis in the period in which It is incurred.
Grant expenditure is recognised where there is a legal or constructlve obligation to pay.
Grants, both single and multi-year, are re¢ognised in the financial statements as liabilities
after they have been approved by the Trustees, the recipienls have been notified and
there are no further terms and conditions to be fulfilled which are within the control of tho
Foundation.
Page 28 of 38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 OECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS (cont.)
ACCOUNTING POLICIES (Continugd)
For the majority of multi-year grants Ihe full amount is recognised on award and any
amount relating to future years is included in grants payable.
There are occasions when it becomes necessary to withdraw a grant which has been
approved in a prior year,. where this happens, the funds revert to the original unrestricted
or restricted reserve.
Penslon costs
The Foundation does not participate in any pension schemes.
Allocatlon of expandlture
Charitable activities include the direct costs of the grant awards and the indirect support costs
of delivering Ihe grant programmes. Support costs (including governance costs) are allocated
across charitable activities on the basis of expenditure on grant programmes.
Taxatlon
The Foundation is a registered charlty, and as such is entitled to certain tax exemptions on
income and profits from investments, and surpluses on any trading activities carried on in
furtherance of the Foundations primary objects, ifthese profits are applied solely for charitable
purposes.
Accountlng estimatos and Judgements
The Charity makes estimates and assumptions concerning Ihe future. The resulting
accounting estimates will. by definition, seldom equal the related actual results. There are no
estimates and assumplions that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year.
Page 29 of 38

LLOYL)S BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED31 DECEMBER2021
NOTES TO THE FINANCIAL STATEMENTS (cont.)
DONATIONS
Unres-
Re8-
tricted tricted
2021
Unres-
Res-
Iricted trlct6d
2020
Donations from Lloyds
Banking Group
Covenant income
Operating costs
contribution
Donated servlc6s
External audit fees
paid by Lloyds Banking
Grou
784,390
75,000
784,390 784,368
75,000
75,000
784,368
75,000
9,300
9,300
8,925
8,925
868.690
868,690 868 293
868 293
ANALYSIS OF EXPENDITURE
a) Charitable activities
Grants
other Support
Charltable
Costs
activities
2021
Grants Programmes
Jersey
Guernsey
35 Grant Programme - Jersey
35 Grant Programme - Guernsey
35 Grant Programme - Alderney
295,008
397,907
175,000
140,000
35,000
1,042,915
37.332
332,340
45,886
443.792
20,180
195,180
16.144
156,144
4,036
39,036
123,577 1,166,492
Other activltles
Matched Giving
Training and events
5,169
596
5,765
1,080
1,060
5.169
596
6,825
Total
1048 084
1060 124173 1 1733q7
Support costs have been allocated on the basis of expenditure on grant programmes.
Pago 30 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS Icont.)
3. ANALYSIS OF EXPENDITURE {cont.I
Grants
Other
payable Charitable
activitlos
Support
Costs
2020
Grants Programmes
Jersey
Guernsey
Covid 19 emergency grants Jersey
Covid 19 emergency grants Guernsey
Alderney
307,773
359,977
172,811
71,249
24,000
935,610
46,334
46,334
11,881
11,881
354,107
408,311
184,492
83,130
24,000
116,430 1,052,040
other actlvlties
Matched Giving
Training and Events
Other fvnding
5,799
100
2,376
8.175
100
2,109
2.109
5,899
2,376
10,384
Total
rants
able
941509
118806 1062424
b) Grant awards
2021
£ No.
498.736
20 500,547
537,907
12 441.991
36,000
24,000
100
2020
Grants awarded
Grants in Jersey
Grants in Guernsey
Alderney
Discretionary grants
Total Grants
15
13
29 1,071,643
33 966,638
Other actlvities
Matched Givin
14
18
Total Granls and Matched Glvlng awarded in
the year
1,076,812
972,437
Less grants cancell8d or refunded In the
ear
Grants payable (Note 4c)
(28,728)
(30,9281
941,509
1,048,084
A full li?t ofApproved Grants for 2021 is set out in Note 12 on page 37 and 38.
Page 31 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS (cont.)
3. ANALYSIS OF EXPENDITURE Icont.)
c) Grants payable
The table below shows reconclliation between grant amounts approved during the year and
amounts paid during the year.
2021
2020
Reconciliatlon of grants payabl8
Amounts outstanding at 1 January
395 021
567 825
Grants approvedlcancelled In year
Grants approved in the year
Grants cancelled
Grants payable in the year
1,078,812
14,364
1,062,448
972,437
10,765
961,672
Grants paid during the year
1,233,848
1,134476
Due within one year (Note 7)
Due afier more Ihan one
ear
Note 8
Amounts oulstandin
at 31 December
191,221
32,400
223 621
340,221
54,800
395,021
Cancellations in 2021 relate to one Jersey grant (2020-. Jersey grants)-
d) Support costs
Note
2021
2020
Staff costs
Governance costs
Other costs
3e
3f
65,492
22,171
56,720
21.464
40,622
Total
124,172
118806
e} Staff costs
2021
2020
Wages and $81aries
Social Security Costs
Other Costs
60,000
3,960
51,700
4,025
995
Total
The monthly average number of persons employed by the Foundation during the year was
one (2020.. one) who is the full time Executive Director.
Page 32 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS (cont.)
3. ANALYSIS OF EXPENDITURE {cont.)
One employee received emoluments of£60,000.
fj Governance Costs
2021
2020
Company Secretary, Finance and Administration
Audit fee
Trustee costs
Total
10,532
9,300
10,442
8,925
2,097
Company Secretary and Finan￿ costs include £8,526 payable to the Lloyds Bank Foundation
for England & Wales in respect of time spent by that Foundation's Company Secretary and
Finance department for administration of the Foundation for the Channel Islands (2020-
£8,442). The remaining £2,006 (2020.. £2,000) largely represents general administration
support given by one individual.
The auditors were remunerated with an allocation from the Lloyds Banking Group audit fee.
As a result, the external audit fee has been treated as a benefit in kind from the Lloyds Banking
Group. The amount recognised is the fair value Ihat the Foundation believes they would pay
for external audit services if the Lloyds Banking Group did not pay for the amounts on their
behalf.
The Trustees, who are also the directors of the Company, received no remuneration during
the year. Five of the Trustees received £2,339 in reimbursed expenses relating to travel,
subsistence and other expenses {2020.' £2.097 four Trustees).
4. TANGIBLE FIXED ASSETS
Computer
equlpment and
software
Total
2021
Total
2020
Cost
At beginning of the year
Dis
osals
At end of the
6,054
6,054
6,054
ear
6,054
Accumulated Dapreciation
At beginning of the year
Depreciation
Dis
osals
At end of Ihe
6,054
6,054
6,054
ear
Net book value at beginning of the year
Net book value at end of the
ear
The fixed asset is ￿llY depreciated. and still in use.
Page33 of 38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENOED 31 DECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS (cont.)
5. INVESTMENTS
2021
2020
Investments listed or traded on a recognised stock exchange
Derivative financial instruments
Cash held b
inveslment mana
Total
1,674,049 1,943.153
74,083
61,671
ers
1,791.499 2.062,961
Movement in the year
As at 1 January
Additions
Disposals
Net unrealised gainsl(losses)
Net realised gainsl{losses}
Reinvested net income
Cash movements
As at 31 December
2,062,961 2,032,374
586,827
641,128
{976,103) (635,620)
109,998
100,246
18,614
55,734
9,926
9,608
(20,724)_.-.---(140,509
1791499 2 062,961
2021
2020
Investment Income
Bank interest
Dividends
Total
579
21,912
The historical cost of the Foundalion investments (excluding cash) as at 31 December 2021
was £1,496,161 {2020= £1,773.425)- Details of the nature of the investment assets, valuation
methods and risk management are included in the trustees, report.
6. DEBTORS
2021
2020
Prepayment
Total
917
917
1,157
7, CREDITORS: amounts falllng duo wlthln one yoar
2021
2020
Grants oulstanding {Note 3c}
Accruals
Other creditors
Total
191,221
5,500
729
97 450
340,221
4,500
3,242
347 963
CREDITORS: amounts falling due after more than one year
2021
2020
Grants outstandin
Total
Note 3c
54,800
54,800
Page 34 of 38
32,400

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS (cont.)
MOVEMENT IN FUNDS
Balance at
Total
1Jan
Incoming
2021 r6sour¢e8
Total
Change In Balanc8 at
resources market value
31 Dec
expended
of
2021
Investments
Unrestrlctod funds
Total
1,814 862
1,814,862
892 273
1,186,971
892,273 (1,186,971)
128 612 1,648,776
128,612 1,648,776
Balance at
Total
lJan
incoming
2020 re8our¢e5
Total
Change In Balance at
resources market value
31 Dec
QXP8nded
of
2020
investments
Unrestrlcted funds
Total
1,842,827
1,842,827
890,784
1,074.728
890,784 {1,074,728)
155,979 1,814,862
155,979 1,814,862
10. GUARANTEE COMPANY
Th8 Foundation is a company limited by guarantee not havlng a share capital. The liability of
the members is limited by the Memorandum of Association to £1 each. The number of
Trustees who are also members at 31 December 2021 was nlne (2020.. nine).
11. RELATED PARTY TRANSACTIONS
a) Conn&ctod Foundatlons
The following Foundations are connected, having common and related objects..
Lloyd8 Bank Foundation for England & Wal8S
Society Building
8 All Saints Street
London N19RL
The Foundation paid £8.526 (2020.. £8,442) to Lloyds Bank Foundation for England & Wales
in respect of time spent by that Foundation's staff for administration of the Foundalion for the
Channel Islands. In 2020 the Foundation paid £1,715 to the Lloyds Bank Foundation for
England & Wales towards Ihe Cost of developing IT systems for use by both organisations in
grant administration. In 2021 Ihere was no such payment.
Halifax Foundation for Northern Ireland
Clifton House Heritage Centre
2 North Queen Street
Belfast
BT15 1ES
Page 35 of 3B

LLOYDS BANK FOUNDATION FOR THE GHANNEL ISLANDS
YEAR ENOED 31 CIECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS (cont.)
11. RELATED PARTY TRANSACTIONS Continued
Bank of Scotland Foundation
The Mound
Edinburgh
EH1 IYZ
b) Related company
The Foundation is related to Lloyds Banking Group plc as it derives its revenue primarily from
Lloyds Banking Group plc. In December 2013 a new funding agreement was entered into with
Lloyds Banking Group plc and from 2014 the Foundation annually receives a share of Lloyds
Banking Group plc profits, subject to a minimum amountof£614,000 and a maximum amount
of £1,535,000.
In addition to the covenant income of £784,390 {2020- £784,368) the Foundation received
£75,000 (2020: £75,000) to cover a proportion of operating expenses.
The Foundation's principal bank is Lloyds Banking Group Plc. At 31 Detsmber 2021 the
Foundation held a cash balance with Lloyds Banking Group plc of £86,210. At 31 De￿rnber
2020 there was a cash balance of £153,507.
The Foundation received interest income of £3 (2020- £579) from cash balances held with
Lloyds Banking Group plc.
In August 2018 the Foundation entered into an agreement for Cazenove Capital to manage
the investment portfolio. Trustee David Hodgetts's close family member is a Client Director
in the organisation, however, does not manage the Foundation's portfolio. David Hodgetts
was not involved in the tender process to appoint an investment manager and was not a
member of the Audit and Investment Committee which monitors the investment managers
performance during his tenure as a Trustee.
c} Transactlons
All Trustees must declare any potential confiicts of interest concerning funding requests and
must leave the Board Meeting until the decision on the relevant funding request has been
concluded.
During the year a number of grants and payments were made where a Trustee of the
Foundation is affiliated to a connected organisation.
Brian Heath Is a Board Member and Non-8xecutlve Director of Myvolce Independent
Advocacy Jersey. In the year ended 31 December 2020 the Foundation made a donation of
£30,600 which was paid in full in the year. In the year ended 31 December 2021 there were
no donations made to the charity. Myvoice also benefited from a Lloyds Bank mentor in
2021.
Page 36 of38

LLOYOS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
NOTES TO THE FINANCIAL STA TEMENTS (conl.)
12.
LIST OF APPROVED GRANTS FOR 2021
Alderne
rants 2021
35 Grant Pro
ramme - COVID Recove
Alderne
Mind
Unrestricted for
eneral charitable
ur
oses
Tolal a
roved for Alderne
rant
Guernse
rants 2021
Towards the salary of the Autism Wellbeing and
Enablement Facilitator
20th anniversary communication and
awareness raisin
cam
ai
Towards the ¢harit
'$ overall strate
ic
lan
Re-development of Ihe site including new
glasshouses and training, workshop and
administrative buildin
Develo
menl of Disabili
Confidence Trainin
Towards the sala
of the Centre Mana
er
Toward staffing costs for the running of the
Guernse
Centre
Towards the cost of the Community Lead for six
months
Towards the salary for a Senior Youth Worker
to deliver child sexual exploitation and
advocac
workstreams
Autism Guernse
Bowel Cancer Guernse
Guernse
Mind
20,000
GROW
Ron Short Centre
St x Centre
100,000
30,000
Trauma Recove
Centre
14,115
Vive La Vallette
Youth Commission
Total
397,907
ramme - COVID Recove
35 Grant Pro
Carers Guernse
Guernsey Carlng for Ex-
Offenders
Unrestricted for
eneral charitable
ur
ses
35,OCrf)
Unrestricted for
eneral charitable
ur
oses
Guernse
Safer
Ern
ment Trust
35,000
Unrestricted for
Unrestricted for
eneral charitable
eneral charitable
ur
oses
ur
oses
Total
140 000
Total a
roved for Guernse
537 907
13
rants
Page 37 of 38

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS
YEAR ENDED 31 DECEMBER 2021
NOTES TO THE FINANCIAL STATEMENTS (cont.)
12. LIST OF APPROVED GRANTS FOR 2021
Jerse
rants 2021
Towards the salary of the Family Events Co-
ordinator
Towards the Learning for Life eclucation
ro
ramme
Towards the sala
of the Co-ordinator
Running costs for an after-school club for
children with additionallcom
lex needs
Towards the salary of the Family Liaison
Mana
er
50/0
Autism Jerse
17,500
Beresford Street Kitchen
Bri
hti
24,367
Centre Point Trust
28,900
Famil First
Jersey Action Against Rape
25,000
33,000
59,400
Sala
of the Lead Counsellor
Towards a
eri
at8tic Senior Su
Jerse
Childcare Trust
Jersey Eating Disorder
Su
ort
ort Worker
25.000
Toward salaries and core o
eratin
costs
Towards the Support Worker for the Acorn
Trainin
and Develo
ment SeNice
Towards the salary of the ftjll-time member of
staff
Jerse
ment Trust
38.294
Word and Numbers Matter
37,275
Totsl
323.736
35 Grant Pro
ramme - COVID Recove
Beresford Street Kitchen
Jerse
Recove
Colle
Jerse
Women's Refu
NSPCC Jerse
The Shelter Tru8t
Unrestricted for
Unrestricted for
Unrestricted for
Unrestricted for
Unrestricted for
eneral charitable purpose5
eneral charitable purposes
eneral charitable
ur
oses
eneral charitable
eneral charitable
35,000
35,000
35.000
175 000
ur
oses
ur
oses
Total
Total a
roved for Jorso
498,736
15
rants
Pagè 38 of38