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← Lloyds Bank Foundation For The Channel Islands

2023-12-31-accounts

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LLOYDSFOUNDATION BANK Aga _ .

_ LLOYDS BANK FOUNDATION _. FORTHE CHANNELISLANDS. |.

ANNUAL REPORT AND FINANCIAL STATEMENTS. ’ |

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2023

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

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YEAR ENDED 31 DECEMBER 2023

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||||| |---|---|---|---| |Contents| |REFERENCE AND ADMINISTRATIVE DETAILS|3| |CHAIR’S REVIEW|OF THE YEAR|5| |TRUSTEES’ REPORT|AND|THE STRATEGIC REPORT| |(incorporating|the Directors’s|Report)|CCC“‘(‘O;™CCO‘Bss| |INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF| |LLOYDS BANK FOUNDATION FOR|THE CHANNEL ISLANDS_|20| |STATEMENT OF FINANCIAL|ACTIVITIES|(incorporating Income| |and Expenditure|Report)||24| |BALANCE SHEET|7|25| ||STATEMENT OF CASH FLOWS|26| |NOTES TO|THE FINANCIAL STATEMENTS|_|27|

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LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

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YEAR ENDED 31 DECEMBER 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity Number 327113 Company Limited by Guarantee 1971241 Registered office Society Building 8 All Saints Street London N1 9RL

Correspondence Address (UK)

Society Building 8 All Saints Street London Ni 9RL

Correspondence Address (Cl)

1 Smith Street, St Peter Port Guernsey GY1 4BD

Email

Website

Bankers

JLePoidevin@lloydsbankfoundation.org.uk

www.lloydsbankfoundationci.org.uk

Lloyds Bank International 9 Broad Street St Helier Jersey, JE2 3RR

Independent Auditor

Deloitte LLP. 2 New Street Square London, EC4A 3BZ

Investment Managers

Cazenove Capital Regency Court Glategny Esplanade St. Peter Port Guernsey, GY1 3UF

Page 3 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

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YEAR ENDED 31 DECEMBER 2023

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:

Philippa Stahelin

Chair

Chair of Nomination Committee Chair of Remuneration Committee

Brian Heath MBE

Heather MacCallum Hana Atkinson (from 1 August 2023) Adele Bohlen (from 1 February 2024) Neil Fellows Gavin Ferguson (until 9 July 2023) Alasdair Gardner (until 30 November 2023) Tracey Johnson , Poppy Murray David Pirouet (from 2 January 2023)

Deputy Chair Chair of Audit & Investment Committee

Executive Director

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Johanna Le Poidevin

Page 4 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

CHAIR’S REVIEW OF THE YEAR

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Welcome to my annual Review for the Lloyds Bank Foundation for the Channel Islands as we reflect on the year past and look ahead, outlining our aims, priorities, ambitions and objectives for 2024. :

As is always the case, underpinning all our work is our constant pledge to support charitable organisations which help people, especially those who are disadvantaged, supporting them as they help islanders play a fuller role within their local communities throughout the Channel Islands. Our funding and support are an investment to enable these charities to makea real difference to the lives of local people.

In 2023 we are proud to record that we provided funding of £798,873 (2022: £686,214, including cost of living grant of £61,375).

Grants totalling £781,421 to the following charities:

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The Foundation provided the following additional funding; -

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We continue to be incredibly proud and privileged to be able to provide funding year after year, thanks to the generosity of the covenant from Lloyds Banking Group (LBG). We operate with complete independence from LBG but benefit from our strategic partnership, where we are so fortunate for the support we receive at Group level as well as through our local bank colleagues. The support given through colleagues volunteering their time, skills and expertise . is threefold: for the Foundation itself, the charities we fund and support, and our events throughout the year.

The Foundation’s unique offer of developmental support including our mentoring programme, charity response forums, the skills exchange, and training and events are ongoing and well used. We have mentoring relationships with 11 charities to really maximise impact beyond pure funding. A real demonstration of the benefit of funds with appropriate support to maximise impact. There is a renewed commitment from the Foundation, hand in hand with : LBG, to maintain and continue to offer this unique support programme into 2024 and beyond.

Building on the successful end of year evening receptions in both islands in 2022, we repeated them in 2023. Once again this enabled us to showcase the work of a charity in each island. The purpose of this is not only to remind the community and charities of the funding and support available from the Foundation but also, most importantly, to really show how having a mentor from the Bank working alongside a charity leader helps to strengthen an organisation, making a real difference to the people they support. We are always delighted to celebrate the incredible work of our partner charities and to share this with other local charities, Foundation trustees, Lloyds Bank colleagues, local politicians, and other funders,

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LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

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encouraging interaction, sharing learning and networking. | would like to recognise and thank GROW in Guernsey and Jersey Recovery College and our bank colleague mentors for demonstrating their outstanding work.

_ As announced in last year’s review, 2023 was the second year where the annual seminars focussed on the topic of Lived Experience and from them, we launched our Lived Experience leadership pilot programme, inviting a number of charities across the islands to work together to bring Lived Experience into the heart of their organisation. This programme is being delivered face to face and online, and the co-production and partnership learning has been exceptional. Once again, we are indebted to Paula Harriott, Head of Prisoner Engagement at the Prison Reform Trust for her help in co-designing and delivering the programme with us, as well as the other speakers from charities in the UK and Channel Islands. | would also like to extend thanks to the charities from both Guernsey and Jersey who have also contributed to . sessions across the year. This programme will run through until June 2024.

Collaboration and co-production will continue to be a focus for much of the Foundation’s ambitions and work this year. We believe that a shared vision of supporting those in greatest need is key to everything we do. We already know that by supporting those charities best placed to deliver that need, is the most effective way of achieving this. We will carry on working with all parties in this space — politicians, charities and fellow funders across the islands as the best way forward.

Through our communications during 2024, you will see the Foundation maintaining awareness of our aims and highlighting the incredible work being done in our islands. We especially want to celebrate how support from the Foundation has enabled those at the front line to do what they do best. We will always strive to partner with those who make the real difference and where the need is greatest.

"| must acknowledge the contribution, passion and professionalism of our Executive Director, Jo Le Poidevin who remains the very heart of the Foundation, guiding the Board.in our decision-making and continuing to be a crucial link between the charities and the Board. As our sole employee she handles everything at the Foundation with enormous skill, and | thank her on behalf of myself and the Board of Trustees. | also recognise the hard work of the Board with thanks to them, to those departing and a welcome to our new trustees who all share the Foundation’s passion and vision. A special welcome to the Foundation for Adele Bohlin, Island Director and Chief Executive Officer of Lloyds Bank International who joins the board as one of our bank Trustees. We are delighted to harness her energy and commitment to the charitable sector in our islands.

It promises to be another busy year as our incredible charities in both the Bailiwick of Guernsey and Jersey will be working tirelessly to make people’s lives better in an environment where funds and resources are stretched, and charities are having to take on more. Supporting these organisations with funding and developmental support, celebrating their extraordinary work and highlighting the challenges and value of our incredible charity wed i be a large part of our priorities into 2024.. Philippa Staheln — Chair of Trustees 21 March 2024

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LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

Grants approved in 2023

All grants during 2023 fell within one or other of the two main objects’ of the Foundation: Education and Training, or Social and Community Needs.

Issue 2023 2023 2022 2022
No. of
Grants		 Grants
£		 No. of
Grants		 Grants
£
SupportforChildrenandYoung People
Health including Mental Health
Community Support
Training, employmentand lifelong		 2
8
1
2		 42,462
340,622
50,000
99,932		 1
5
2
-		 66,000
233,850
73,500
-
learning
SupportforOlder People
Advice and advocacy
DomesticViolence		 ”
2
1		 -
39,400
100,000		 2
1
-		 109,501
40,000
-
Homelessness
Costofliving grants
Total grantfunding		 1
17		 109,005
-
781,421		 1
12		 90,000
61,375
674,226
Lived experience leadership programme
Matched givingdonations
Totalfunding		 7,231
10,221
798,873		 -
11,988
686,214

Page7of39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

_ TRUSTEES’ REPORT AND STRATEGIC 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 2023, which have been prepared in accordance with Charities "Statement of Recommended Practice" applicable to charities preparing their accounts in accordance with FRS 102 (‘the SORP’), 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

Governing document and constitution

Lloyds Bank Foundation for the Channel Islands (the Foundation) 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, there is representation from the two main Islands, plus the Chair. The names and roles of Trustees are provided on page4 of this report.

The legal and accounting records are maintained in London. Details of the auditor, investment managers, bankers and location of registered office are included on page 3.

Recruitment, appointment, induction and training of Trustees

The list of Trustees covers the year to 31 December 2023 and up to the date of signing the financial statements. Their appointments are ratified by Lloyds Banking Group Pic's Nomination and Governance Committee on the recommendation of the Foundation's Board of Trustees.

Applications for Trusteeship are sought both through Island-wide networks and open competition. The Nomination Committee, which operates under specific terms of reference delegated from the Board of Trustees, comprises at least three serving 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 threeyear term. Trustees’ skills and outside interests are regularly reviewed, and prior to seeking a new Trustee the Nomination Committee reviews the composition of the Board to identify any specific skills 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.

The 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 between Board meetings but apart from those, all grant decisions are made by the full Board of Trustees.

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LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

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YEAR ENDED 31 DECEMBER 2023

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TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

The Board (cont.)

The Board meets four times a year (or more frequently if required), normally in January, March (incorporating the AGM), July and November. Meeting venues normally alternate between Guernsey and Jersey. The Board meets virtually if required.

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 travel between the Islands. The Executive Director will conduct visits virtually if border restrictions or government guidance is in place.

Board Committees

There are three permanent Committees of the Board, which report fully on their meetings and other activities - the Nomination Committee, Audit and Investment Committee and Remuneration 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 Audit and Investment Committee 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 position. 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 LBG internal audit function. The Committee’s remit also includes overseeing the Foundation’s risk management procedures and monitoring investments held by the Foundation.

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The Committee meets four times a year, normally January, March, July and November, including once a year, to consider the report of the auditors and the annual report and financial statements prior to their presentation to the full Board. The Committee satisfies itself as to the auditors’ independence. The July meeting will include the attendance of Cazenove Capitalto present on the performance of the investment portfolio and their investment outlook. All members of the Committee normally attend meetings.

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The role of the Remuneration Committee is to make recommendations to 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 calculatedby research on market indicators and broadly follows Lloyds Banking Group.

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_ The role of the Nomination Committee 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 of the Board of Trustees.

Page 9 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

Board Committees (cont.)

The process for the appointment of new Trustees is described, above, in the section headed “Recruitment, appointment, induction and training 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:

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In respect of operational practices, a review of risks facing the Foundation is undertaken by the Board. Risks identified are prioritised in terms of potential impact and likelihood of occurrence, and the Trustees confirm that systems or procedures are in place 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 full Board and Audit and Investment Committee at each of the four meetings.

The principal risks are as follows;

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Page 10 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

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Related parties The Foundation is related to Lloyds Banking Group plc and connected to the Lloyds Bank Foundation for England & Wales, Halifax Foundation for Northern Ireland and the Bank of Scotland Foundation. See Note 12 for details of transactions with these connected charities and related parties. ;

Each Foundation is directed by its own independent Board of Trustees.

OBJECTIVES AND ACTIVITIES

The objects of the Foundation, as set out in the Memorandum of Association, are as follows:

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):

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Alms, objectives, strategies and significant activities The aims of the Foundation are encapsulated in the mission statement:

The Foundation’s mission is to support charitable organisations which help people, especially those who are disadvantaged, to play a fuller role in communities throughout 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 accordance with the Foundation’s objects and through the following grant-making programmes: Jersey A responsive grant-making programme to support charities with beneficiaries in the Bailiwick of Jersey. Guernsey A responsive grant-making programme to support charities with beneficiaries in the Bailiwick of Guernsey, including Alderney and Sark. Channel A responsive grant-making programme to support charities working Islands-wide across the Channel Islands as a whole and, normally in conjunction with and UK the sister Lloyds Bank Foundations, in the UK.

Page 11 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

Aims, objectives, strategies and significant activities (cont.)

Matched Giving A scheme open to members of staff of Lloyds Banking Group plc Scheme 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.

A review of the activities of the Foundation during the financial year is presented in the Chair's Review of the Year (page 5).

The Foundation’s performance in respect of the primary objective was as follows;

The Foundation’s performance in respect of the Second objective was as follows:

Public benefit

We havea duty to have due regard to the Charity Commission's public benefit guidance, under Section 17 of the Charities Act 2011. We are confident that we meet those public benefit requirements having taken Charity Commission guidance into consideration.

FINANCIAL REVIEW

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Income

In December 2013 the Foundation entered into a new nine-year rolling agreement, the covenant, with LBG. From 2014, the Foundation receives 0.01535% of the Group's profits, averaged over three years, subject to a minimum amount of 3.07% of £20 million (£614,000) and a maximum amount of 3.07% of £50 million (£1,535,000). This secures the Foundation’s funding over the long term.

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Page 12 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

Income (cont.)

The Foundation received £758,043 under the covenant agreement (2022: £626,885) and £91,274 from LBG towards the Foundation’s operating costs (2022: £151,965).

The other source of income was interest and dividends of £47,624 (2022: £24,043). The Foundation's investments generated unrealised gains of £21,270 (2022: losses of £149,342).

Expenditure

Charitable expenditure for the year by the Foundation was £961,366 (2022: £822,292). In addition, there was £25,347 of capital expenditure (2022: Nil) spent on development of a new database for the administration of the grants.

The deficit for the year before investment gains and losses was £70,862 compared to the deficit for 2022 of £30,970.

Grants ; The Foundation’s policy is to support registered charities or those accorded charitable status by the Guernsey Registry, Jersey's Charity Commission and the Charity Commission for England & Wales to help disabled or disadvantaged people to play a fuller role in communities throughout the Islands.

Page 13 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2023

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TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

Grants (cont.) 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.

The Foundation has adopted a policy 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 future income (because provision has been made up-front for payments due in years two. 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 current reserves level principally arose from the one-off gift of shares from LBG in 2017 and the Foundation generally seeks to award grants using its covenant income from LBG in the year it is received. The Foundation is conscious of the risk of a single source of funding and the wide range of events that can impact on this income. 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 has historically managed its reserves within an upper and lower reserve limit, or ‘reserves corridor’.

In January 2024 the Trustees reviewed the reserves policy in light of the increasing needs of the charitable sector in the Channel Islands and have decided to amend the current policy to gradually reduce the reserves over a period of time but still retain a buffer of funds for emergency grant giving and a reserve covering an estimated future 24 months operating costs on a cash flow basis. At January 2024 the Trustees have decided that the reserves for emergency or creative grant giving should be £500,000 and that the amount required for operating costs is estimated at £400,000 making the total reserve requirement in the region of £900,000.

As at 31 December 2023 the Foundation’s unrestricted reserves were £1,418,872 (2022: £1,468,464). The trustees will align the level of reserves with the minimum reserves requirement over the next five years. ;

The above reserves 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 its investment manager.

The investment criteria reflect the ethical policies and risk appetite of the Foundation. The Foundation aims to follow Lloyds Banking Group’s Responsible Investment Framework. Its exclusions policy focuses on companies that have failed to meet ESG standards. In support of this the Foundation wishes to exclude the following investments:

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LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

Investments (continued)

(i) manufacturers of controversial weapons (ii) UN Global Compact violators (iii) those companies deriving more than 10% of their revenue from thermal coal and tar sands extraction. The Trustees aim to keep at least 70% of the assets in investments that can be realised within three months.

The Foundation’s principal funds are invested in a diverse portfolio with a low to medium risk appetite which is focussed on capital growth, comprising of multi class assets and currencies. The asset allocation at 31 December and performance for the year was as follows (subject to audit);

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Performance benchmarks are established by the Audit and Investment Committee and agreed with the investment manager. Performance against the agreed benchmarks are reviewed quarterly by the Audit and Investment Committee. Cazenove Capital present on investment performance and market outlook to the Audit and Investment Committee annually.

The performance compared to benchmark (ARC Sterling Balanced Asset ACI Index) was;

[—Ss—«d Fund performance | Benchmark | PSSCSC*~«dC2023—=—« 2023 | 2022 | 2022 _ [Totalfund [6.1% [5.4% 1(7.6)% __[(7.0)% } Financial risk 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 investment managers, Cazenove Capital. - (i) Market risk Exposure - The portfolio is well diversified with holdings in a wide range of asset classes. The Foundations’ investments are made up from holdings in over 32 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.

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LLOYDS BANK FOUNDATION FOR THE GHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

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TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

Investments (cont.)

Sensitivity - The largest market risk is a fall in the value of equity markets. Based on the position at 31 December 2023, in the event that there was a general 10% fall in equity markets there would be a reduction in net income and the value of investments of £32,436 (2022: £74,619). fallCurrency— 94% of the Foundation’s investments are held in GBP with 6% in US $. A 10% in US $ would result in a reduction in net income and the value of investments of £3,854 (2022: £7,533).

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Fundraising Activities

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 undertake fundraising from the general public and does not 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 fundraising activities nor do we consider it necessary to design specific policies and procedures to monitor activities.

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_ PLANS FOR FUTURE PERIODS

Future activities : The Foundation will continue to make grants to charities helping disadvantaged and disabled people playa 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 sustainability.

The Foundation is committed to delivery of its core objectives and supporting those charities with sustainable activities, measured against identifiable outcomes.

The Trustees have agreed the following objectives:

Page 16 of 39 ,

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

Business continuity

.

The Trustees have considered the risks facing the Foundation, including its connected foundations, grantees and investments and the potential for significant impact on its activities. The trustees note that;

The Foundation is closely monitoring the value of its investments. The value of investments has increased in value in 2023, recovering some of the losses from the previous year. 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 a significant fall in value may affect future grant giving.

Going 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 2023 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 at least until March 2025.

Page 17 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

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’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the 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;

The Trustees are responsible for keeping adequate accounting records that 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities,

In so far as the Trustees are aware:

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(a) there is no relevant audit information of which the charitable company's auditor is unaware; and , (b) the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Page 18 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

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TRUSTEES’ REPORT AND STRATEGIC REPORT (cont.)

INDEPENDENT AUDITORS

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included in the Charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

A resolution concerning the appointment of Deloitte LLP as auditors to the Foundation will be proposed at the annual general meeting.

This report, including the Strategic Report was approved by the Board of Trustees on 21 March 2024 and signed on their behalf by: ,

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Page 19 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

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Independent auditor’s report to the members of Lloyds Bank Foundation for the Channel Islands

Report on the audit of the financial statements

Opinion

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In our opinion the financial statements of Lloyds Bank Foundation for the Channel Islands (the ‘charitable company’):

We have audited the financial statements which comprise:

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate - to provide a basis for our opinion. ‘

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Page 20 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Our responsibility is to read the other. information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company 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 internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate - the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion, Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the ~ aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Page 21 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the charitable company’s industry and its control environment and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations.We also enquired of management and the trustees about their own identification and assessment of the risks of irregularities, including those that are specific to the charitable company’s business sector.

We obtained an understanding of the legal and regulatory framework that the charitable company operates in, and identified the key laws and regulations that:

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our procedures performed to address it are described below:

;

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 tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

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Page 22 of 39

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LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

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 strategic report and the directors’ report included within the trustees’ report.

Matters on which we are required to report by exception

We have nothing to report In réspéct 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.

Helen Perkins, CA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor *

"Reading, United Kingdom

Date Di merch «=32O2Y |

Page 23 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

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STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income & Expenditure account) YEAR ENDED 31 DECEMBER 2023

Note Unrest- Total Unrest- Total
ricted ricted
2023 2023 2022 2022
£ £ £ £
Income from:
Donations
Investments		 3
6		 849,317
47,624		 849.317
47,624		 778,650
24,043		 778,650
24,043
__ Other 4,506 4,506 - -
Total income 901,447 901,447 802,693 802,693
Expenditure on:
Investmentfees 10,943 10,943 11,371 41,371
Charitable activities 4a 963,841 963,841 822,292 822,292
Totalexpenditure 974,785 974,785 833,663 833,663
Net (expenditure)
before.investment
gains/(losses) (73,338) (73,338) (30,970) (30,970)
Netgain/(loss) on
- investments 6 21,270 21,270 (149,342) (149,342)
Net(expenditure) (52,068) (52,068) (180,312) (180,312)
Netmovement in
funds
;		 (52,068) (52,068) (180,312) (180,312)
,
Reconciliation of
funds ;
Funds brought forward
1,468,464
1,468,464
1,648,776
1,648,776
“Funds
carried.
,araanqaaaaanauandahAd@RUAA
focuara
10
1,416,396
1,416,396
1,468,464
1,468,464

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 39 form part of these financial statements.

Page 24 of 39

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LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

,

BALANCE SHEET
Company number 1971241
AS AT 31 DECEMBER 2023
Note Total Total
2023 2022
£ £
Fixed assets:
Tangible assets
Investments
Total fixed assets		 ; 5
6		 25,346
692,483
717,829		 -
1,654,798
1,654,798
Current assets:
Debtors
Currentasset investments
Cash atbankand in hand		 7
6		 21,215
1,000,000
195,977		 9,503
.
209,126
Total current assets 1,217,192 218,629
Liabilities:
Creditors: Amounts falling due within one year 8 (407,290) (346,124)
Netcurrentassets/(liabilities) 809,902 (127,495)
Total assets less current liabllities 1,527,731 1,527,303
Creditors: Amounts falling due aftermore than 9 (111,335) (58,839)
one year
Totalnetassets 1,416,396 1,468,464
The funds ofthe charity:
Unrestricted funds 10 1,416,396 1,468,464
Totalcharityfunds 1,416,396 1,468,464

The financial statements including the notes on 27 to 39 were approved and authorised for issue by the Trustees on 21 March 2024 and signed on their behalf by:

Philippa Stahelin Chair of Trustees

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Page 26 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2023

,

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Notes|2023|2022| |g|£| |Cash|flows|from|operating|activities| |Net cash|generated|(used|in)/from|operating|activities|(A)|(19,011)|111,514| |Cash|flows|from|investing|activities:| |Income|from|investments|47,624|24,043| |New investment|and|reinvested|income|(419,262)|(382,244)| |Proceeds from|sales|of investments|4,306,264|443,637| |Movements on|term|deposits|-|71,236|(74,034)| |Net cash|generated from|investing|activities|5,862|11,402| |Change|in cash and cash equivalents|in the reporting|(13,149)|122,916| |year| |Cashreportingand|yearcash equivalentsat the beginning of the|:|209,126|86,210| |Cash|and|cash|equivalents|at the|end|of the|reporting|(B)|195,977|209,126| |year|,| |(A)NET CASH|FLOWS|USED|IN OPERATING|ACTIVITIES| |2023|2022| |£|£| |Net (expenditure)|for the|reporting year|—|(52,068)|(180,312)| |Adjustments|for:| |Income|from|investments|(47,624)|(24,043)| |(Increase)|in|debtors|(11,711)|(8,586)| |Increase|in|creditors|113,662|175,113| |(Gains)/losses on|investments|(21,270)|149,342| |Net cash generated|(used|in)/from|operating|activities|(19,011)|111,514| |(B)ANALYSIS|OF CASH AND CASH|EQUIVALENTS| |2023|2022| |;|£|£| |Cash|in|hand|195,977|209,126| |Total cash and cash equivalents|195,977|209,126|

----- End of picture text -----

The notes on pages 27 to 39 form part of these financial statements.

Page 26 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

"YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS

4. ACCOUNTING POLICIES

Basis of preparation

The Foundation 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 concern basis 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 transaction value unless otherwise stated in the relevant accounting policy note(s).

Going Concern .

The Trustees have adopted the going concern basis of accounting in preparing the financial statements having assessed the principal risks relating to the: Foundation’s income. The Foundation receives virtually all its income under a covenant with Lloyds Banking Group Plc which requires nine years notice to be given which contains provision for a minimum £614,000. The covenant income for the full year is received early in the financial year prior to the signing of the financial statements. The Foundation holds a level of reservesto enable its activities to continue for more than one year from the balance sheet date in the event that no further funding was received. Accordingly, the Foundation expects to continue to have access to sufficient liquid resources to meet its obligations for a period of at least 12 months after the approval of these financial statements, namely the period to March 2025.

Fund accounting

Unrestricted funds

The Foundation's unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Investments a Listed investments are included in the Balance Sheet at fair value whichis their closing bid price on the current or previous trading day. Details of the nature of the investment assets, valuation methods and risk management are included in the trustees’ 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 gains 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.

Page 27 of 39

LLOYDS BANK FOUNDATION FOR THE GHANNEL ISLANDS YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (cont.)

----- Start of picture text -----
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----- End of picture text -----

1. ACCOUNTING POLICIES (cont.)

Cash and cash equivalents

Cash and cash equivalents include cash and short-term highly liquid investments with a maturity of one year or less from the date of acquisition or opening of the deposit or similar account.

Debtors

Trade and other debtors are recognised at their settlement value. Prepayments are valued at the amount prepaid.

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Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Financial 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.

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Valuation of assets . Tangible fixed assets are included at historic cost less accumulated depreciation. Capitalisation and depreciation The minimum value for the capitalisation of tangible fixed assets is £1,000. Depreciation is calculated so as to write off the cost of tangible fixed assets on a straight-line basis over the expected useful lives of the assets concerned. The principal rates used are: |

Computer software

33% per annum

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 the 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 recognised on a receivable basis using the effective interest method.

Dividend income represents the Foundation’s share of dividends received from holdings in investment funds. The income recognised represents the amount credited to the investment fund.

Donated services

Donated services and facilities 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.

Page 28 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (cont.)

----- Start of picture text -----
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  1. ACCOUNTING POLICIES (cont.)

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 constructive obligation to pay. Grants, both single and multi-year, are recognised in the financial statements as liabilities after they have been approved by the Trustees, the recipients have been notified and there are no further terms and conditions to be fulfilled which are within the control of the Foundation.

For the majority of multi-year grants the 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.

Pension costs The Foundation also participates in a defined contribution scheme. Contributions in respect of the year are charged to the Statement of Financial Activities in the year to which they relate.

Allocation of expenditure Charitable activities include the direct costs of the grant awards and the indirect support costs of delivering the grant programmes. Support costs (including governance costs) are allocated across charitable activities on the basis of estimated time spent by staff.

Taxation The Foundation is a registered charity, 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, if these profits are applied solely for charitable purposes.

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Page 29 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (cont.)

2. CRITICAL ACCOUNTING JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY

Accounting estimates and judgements In the application of the Foundation’s accounting policies, which are described in note 4 , the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.

There are no critical accounting judgements at the reporting date.

Key sources of estimation uncertainty are detailed below.

The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

a) Multi-year grants.

)

The Foundation recognises the majority of grants on award. In practice some organisations will not continue with the funded project resulting in the cancellation of the grant. Given the uncertainty of estimating the value of grants that will not be completed and the relatively small sums that are typically involved the financial statements are based on the assumption that all grants awarded will be fully utilised by the recipients.

Page 30 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (cont.)

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |3.|DONATIONS| |Unres-|Total|Unres-|Total| |tricted|2023|_—stricted|2022| |£|£|E|3| |Donations|from|Lloyds|Banking|Group| |-|Covenant|income|758,043|758,043|626,685|626,685| |-|Cost of living|supplement|-|-|61,400|61,400| |-|Operating|costs contribution|75,000|75,000|75,000|75,000| |-|Events and|publications|6,574|6,574|6,265|6,265| |Donated|services| |-|External|audit fees|paid|by|Lloyds|9,700|9,700|9,300|9,300| |Banking Group|849,317|849,317|778,650|778,650|

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----- Start of picture text -----
||||||| |---|---|---|---|---|---| |4,|ANALYSIS|OF EXPENDITURE| |a)|Charitable activities|Grants|Other|Support|2023| |Charitable|Costs| |activities| |£|£|£-|£| |,|Grants|Programmes|o| |Jersey|487,189|-|90,276|577,465| |Guernsey|294,232|-|54,521|348,753| |781,421|-|144,797|926,218| |Other activities| |Matched|Giving|10,221|-|1,894|12,115| |Training and events|:|25,508|-|25,508| |10,221|25,508|1,891|37,623| |Total|791,642|25,508|_—-146,691|963,841|

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Support costs have been allocated on the basis of expenditure on charitable activities.

)

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Page 31 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (cont.)

4. ANALYSIS OF EXPENDITURE (cont.)

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||||||||| |---|---|---|---|---|---|---|---| |a)|Charitable|activities|(cont.)|Grants|Other|Support|2022.| |Charitable|Costs| |,|activities| |Grants|Programmes|£|£|£|£| |Jersey|411,611|-|89,341|500,952| |Guernsey|177,900|-|36,542|214,442| |Cost of living|grants|61,375|-|12,607|73,982| |Other|activities|650,886|-|138,490|789,376| |Matched|Giving|11,988|-|2,463|14,451| |Training|and|Events|-|18,465|-|18,465| |11,988|18,465|2,463|32,916| |Total|662,874|18,465|140,953|822,292| |enrn|Dg ne,| |b)|Grant awards| |2023|2022| |Grants|awarded|No.|£|No.|£| |Grants|in|Jersey|11|487,189|8|434,951| |Grants|in|Guernsey|6|294,232|4|177,900| |Cost|of living|grants|:|61,375| |Total|Grants|17|781,421|12|674,226| |Other activities| |Matched|Giving|19|10,221|19|11,988| |Total Grants|and|Matched|Giving awarded|in| |the year|791,642|686,214| |IeaaNe grants cancelled ora refundedet in the|.|(23,340)| |Grants|payable (Note 4c)|791,642|662,874| |erencenieirmrmen|ec eg|Looe|pemmamummanmnamenaa|ee|ea|

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A full list of Approved Grants for 2023 is set out in Note 12 on page 37 and 38. _ Further details on categories of Grants are set out on page 7.

Page 32 of 39

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LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (cont.)

.

4, ANALYSIS OF EXPENDITURE (cont.)

c) Grants payable

----- Start of picture text -----
|||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---| |The|table|below|shows|reconciliation|between|grant|amounts|approved|during|the|year|and| |amounts paid during|the year.|2023|2022| |£|£| |Reconciliation|of grants|payable| |Amounts|outstanding|at|1|January|387,515|223,621| |Grants|approved/cancelled|in|year| |Grants approved|in|the year|||791,642|686,214| |Grants|cancelled|-|-| |Grants payable|in|the year|791,642|686,214| |Grants|paid during|the year|(692,264)|(622,320)| |Due within|one year|(Note|8)|375,558|328,676| |Due|after more|than one|year (Note|9)|111,335|58,839| |Amounts outstanding|at 31|December|486,893|387,515|

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There were no cancellations in 2023. One grant was cancelled in 2022 and the amount paid refunded.

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||||||| |---|---|---|---|---|---| |d)|Support costs|Note|2023|2022| |£|£.| |Staff costs|4e|70,716|64,266| |Governance|costs|4f|28,992|29,159| |Communications|24,440|23,941| |Other costs|22,543|23,586| |Total|__|146,691|140,952| |||Staff costs|2023|2022| |£|£| |Wages|and|salaries|66,651|60,000| |Social|Security|costs|4,532|4,020| |Pension|cost|2i2|-| |Movement on|holiday|pay|accrual|(739)|246| |Total|)|70,746|64,266|

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The monthly average number of persons employed by the Foundation during the year was one (2022: one) who is the full time Executive Director. The total employee benefits received by the key management personnel (Executive Director) is included in the table above.

Page 33 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

,

:

;

NOTES TO THE FINANCIAL STATEMENTS (cont.)

4, ANALYSIS OF EXPENDITURE (cont.) The number of employees whose total employee benefits (excluding employer pension and national insurance costs) for the reporting period amounted to over £60,000 was one £60,001 — 70,000 (2022: one £60,001 — 70,000).

national insurance costs) for thethe reporting period amounted
£60,001 — 70,00070,000 (2022: one £60,001£60,001 — 70,000).70,000).		 to over £60,000 wasover £60,000 was£60,000 waswas to over £60,000 wasover £60,000 was£60,000 waswas one
e) Governance costs 2023 2022
£ £
Company Secretary, Finance and Administration
11,837
10,781
Auditfee
9,700
9,300
Liability insurance
2,688
2,379
_Ttusteecosts
CD
Total
28,992
29,159

Company Secretary and Finance costs include £9,221 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 (2022: £8,782). The balance largely represents general administration support including minute taking 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 that the Foundation believes they would pay for external audit services if the Lloyds Banking Group did not pay for the amounts on their behalf.

TheTrustees, whoarealsothe directorsoftheCompany, receivedno remuneration
year. Seven of the Trustees received £2,477 in reimbursed expenses relating
subsistence and otherexpenses (2022: £2,523 five Trustees).		 TheTrustees, whoarealsothe directorsoftheCompany, receivedno remuneration
year. Seven of the Trustees received £2,477 in reimbursed expenses relating
subsistence and otherexpenses (2022: £2,523 five Trustees).		 TheTrustees, whoarealsothe directorsoftheCompany, receivedno remuneration
year. Seven of the Trustees received £2,477 in reimbursed expenses relating
subsistence and otherexpenses (2022: £2,523 five Trustees).		 TheTrustees, whoarealsothe directorsoftheCompany, receivedno remuneration
year. Seven of the Trustees received £2,477 in reimbursed expenses relating
subsistence and otherexpenses (2022: £2,523 five Trustees).		 during the
to travel,
5, TANGIBLE FIXEDASSETS ,
Computer
equipmentand		 Total
2023		 Total
2022
software
£ € ° £
Cost
Atbeginning of the year
Additions
Disposals
Atend oftheyear		 6,054
25,346
(6,054)
25,346		 6,054
25,346
(6,054)
—s_25,346		 6,054
-
-
6,054.
Accumulated Depreciation
Atbeginning oftheyear
Depreciation
Disposals		 6,054
-
(6,054)		 6,054
-
(6,054)		 6,054
-
-
_Atend oftheyear - : -
Netbookvalue atbeginning oftheyear - - -
Netbookvalueatend oftheyear 25,346 25,346 -
,

Page 34 of 39

LLOYDS BANK FOUNDATION FOR THE GHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (cont.)

  1. TANGIBLE FIXED ASSETS (continued)

The additions comprised the acquisition of grant administration software for the Foundation.

_.

6.
INVESTMENTS
2023 2022
Fixed asset investments £ £
Investments listed or traded on a recognised stock exchange 592,429 1,441,137
Derivative financial instruments 62,951 79,125
Cash held by investmentmanagers 37,103 134,536
Total 692,483 1,654,798
Movement in the year
As at 1 January
Additions		 1,654,798
419,262		 1,791,499
369,602
Disposals (1,306,264) (443,637)
Netunrealised (losses) (10,276) (182,050)
Netrealised gains 31,836 32,707
Reinvested net income 16,125 12,642
Netcash movements 112,998 74,034
As at 31 December 692,483 1,654,798
Current asset investments £ £
Term deposit maturing within oneyear 1,000,000 -
Total 1,000,000 -
2023 2022
Investment income £ £
Bank interest 20,265 31
Dividends 27,359 24,012
Total 47,624 24,043

Investments within the portfolio comprises investments in equity, bonds, alternative investments, or structured products. The portfolio does not contain any direct investment in ‘equity or bonds. Equity and bond investments are made through collective investment funds (such as OIECs, SICAVs and UCITSs). In accordance with FRS 102, exchange traded funds and commodities have been classified as FVH Level 1, all other PlVs and the structured products are classified as FVH Level 2. For each investment, the valuations have been provided by the fund manager based on the fair value of each security. The alternative investments are regarded as Level 2 instruments except for the commodities which are regarded as Level 3 as they are exchange traded, are made up as follows; . | Alternative investments |2023=| 2022 | Hedge Funds |[19,991] | 80,598 Commodities Diversified Asset Fund 34,405 108,147 Structured Products |62,951| 79,125 £157,574 _| £357,764

Page 35 of 39

"LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

|

NOTES TO THE FINANCIAL STATEMENTS (cont.)

6. INVESTMENTS (continued)

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 Asset 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.

The historical cost of the Foundation investments (excluding cash) as at 31 December 2023 was £578,590 (2022: £1,433,122). Details of the nature of the investment assets, valuation methods and risk management are included in the trustees’ report.

_

.

7.
DEBTORS
2023 2022
£ £
Other debtors 6,575 6,265
Prepayments and accrued income
_		 14,640 3,238
Total 21,215 9,503
8. CREDITORS: amounts falling due within oneyear
2023 2022
; £ £
Grants outstanding (Note 4c)
Accruals		 375,558
7,476		 © 328,676
6,239
Taxes and social security 4,790 - 4,372
Amountdue to Lloyds Bank Foundation for England &Wales 15,319 -
Trade creditors 4,147 7,837
Total 407,290 346,124
9.
CREDITORS: amounts falling due aftermore than		 oneyear
2023 2022
£ £
Grants outstanding (Note 4c) 111,335 58,839
Total 111,335 58,839

None of the outstanding grants were payable after more than five years.

10. MOVEMENT IN FUNDS MOVEMENT IN FUNDS MOVEMENT IN FUNDS
; Balance at Total Total Netgainor Balanceat
1Jan incoming resources loss on 31 Dec
2023 resources expended investments 2023
£ £ £ £ an
Unrestricted funds _ 1,468,464 901,447 (974,785) 21,270 1,416,396
Total 1,468,464 901,447 (974,785) 21,270 1,416,396

Page 36 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (cont.)

10.MOVEMENT IN FUNDS

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Balance|at|Total|Total|Netgainor|Balance|at| |,||1Jan2022£|resourcesincoming'|£|resourcesexpended£|investmentsloss‘VE.on|312022Dec£| |Unrestricted|funds|_1,648,776|‘802,693'|(833,663)|(149,342)|1,468,464| |Total|1,648,776|802,693|(833,663)|(149,342)|1,468,464| |-|41.|GUARANTEE|COMPANY|[=|;|| |The|Foundation|is a company|limited|by guarantee|not having|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 2023 was|nine|(2022:|nine).;|-|.| |42,|RELATEDPARTY TRANSACTIONS|=|=—ss_—s|So|

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a) Connected Foundations

, The following Foundations are connected, having common and related objects: CliftonHalifaxHouse FoundationHeritageforCentre Northern Ireland:or: ~ A. ® ———E pe . 2North Queen.Street . “Be 48 . , Belfast BT15 1ES ; see Bank of Scotland Foundation The Mound oO Lloyds Bank Foundation for England&Wales «= - eg the 3 ue Society Building oO 8 All Saints Street ‘LondonN19RL pa) UM Fe be th ha A ot a Su[«] The Foundation paid £9,221 (2022: £8,782) to Lloyds Bank Foundation for England & Wales (LBFEW) in respect of time spent by that Foundation’s stafffor administration of the Foundation forthe Crennel isiands..6— 52925) 6 ggg cgs Go ep higeee6 pepe aoe

To provide the grant administration and financial services the LBFEW and the Fouridation - agreed to adopt common financial system and grants database. The Foundation implemented the Salesforce grants database in 2023 following LBFEW's earlier adoption. LBFEW coordinated the implementation for the Foundation and provided funding to the Foundation to meet the implementation costs which totalled £22,882.50. The Foundation are repaying this funding over three years.

“No interest is payable on this arrangement. Based on LBG overnight deposit rates this represents interest foregone of around £60 (2022: Nil).

.

Page 37 of 39

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS (cont.)

12.RELATED PARTY TRANSACTIONS Continued

At 31 December 2023 there was £15,319 due to the Foundation to LBFEW under this arrangement (2022: Nil).

.

b) Related company

The Foundation is related to Lloyds Banking Group pic as it derives its revenue primarily from Ltoyds Banking Group plc. In December 2013 a new funding agreement was entered into with Lloyds Banking Group pic and from 2014 the Foundation annually receives a share of Lloyds ‘Banking Group plc profits, subject to a minimum amount of £614,000 and a maximum amount ' Of£1,535,000. In 2023 the Foundation received £758,043 (2022: £626,685) in accordance with the funding agreement.

.

Trustee Neil Fellows and Alasdair Gardner (who retired as a trustee in July 2023) were employed by Lloyds Banking Group plein 2023. a. oe 7 In 2023 in addition to the sum payable under the funding agreement the Foundation received £75,000 (2022: £75,000) to cover a proportion of operating expenses and £6,574 (2022: £6,265) to cover the cost of publications and events. In 2022 the Foundation received a oneoff sum of £61,400 to enable it to make additional grants to charities to cover the increased cost of living. ee eeee re The Fotindation’s principal bank is Lloyds Banking Group Plc. At 31 December 2023 the Foundation held a £1 million term deposits and a bank account with a balance of £195,977 with Lloyds Banking Group pic. At 31 December 2022 there was a cash balance of £209,126.

The Foundation earned interest income of £20,265 (2022: £31) from cash balances held with Lloyds Banking Group Plc. oe c) Transactions ore aie : All Trustees must declare any potential conflicts of interest concerning funding requests and must leave the Board Meeting until the decision on the relevant funding request has been concluded. agin as gag During the year a number of grants and payments were made where a Trustee of the Foundation Is affilatedto aconnected organisation, “theNeilFoundation’sFellows, worksMatchedas SeniorGiving Manager Scheme at to Lloyds support Bank GROW International: Ltd with £500 In'that (2022: capacity, £500). he Growused Ltd received another £642 under the same scheme in 2023, (2022: £2,000). In 2023 the Foundation awarded a grant of £70,000 to Grow Ltd, of which £40,000 was paid-in the same year'and £30,000 was‘outstanding at 31 December 2023." FP

LLOYDS BANK FOUNDATION FOR THE CHANNEL ISLANDS

YEAR ENDED 31 DECEMBER 2023

’ NOTES TO THE FINANCIAL STATEMENTS (cont.)

13.LIST OF APPROVED GRANTS FOR 2023

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |FGuernseygrants2023,| |Guernse|46,332|| and|Enablement|Facilitator| |atncanenAutism||=| sos]£|| eta|Sd| |GROW|70,000||Manager| |crow||manlimsere-mrrvenonrerneel||| |Guernsey| |ont|oacancessena|| ao|[ve]|ise| |Street Community|Cafe|50,000||Development Manager| |istennMill|conmnyBereavementcsService|| suoi40,000|| Sona Liaison Officer| |fotwtaumewsdioetsuemeorVesesal@gens| |Jerseygrants2023..| |Street|Kitchen|65,000||Academ| |euntevBeresford|setter||=||osgo|€ |sone| |Bright!|27,462 ||ordinator|.| |ow,|||selec|[reer]| |Caritas|Jerse|Officer| |||cans|meer|| aol|gage” "seen eS| |Every|Child|Our Future|15,000 | Officer| |eon aiosran|||[oul]| |FREEDA|100,000 ||Officer| |recon|[roamal ga” ere|ES| |Support|20,000 ||Officer and|Deputy|Chief Executive|Officer| |Same|saul|tao|Sere onee| |Jersey|Employment Trust|Co-ordinator| |uy spp|ton|||tag|eaceaeen|

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