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2021-07-31-accounts

CHARITY OF FREDERICK PEARSON FISHER Registered Charity Number: 503463

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 JULY 2021

Charity of Frederick Pearson Fisher

Index to the Financial Statements

Year Ended 31 July 2021

Page

Charity of Frederick Pearson Fisher

Page 1

Reference and Administrative Information

Year Ended 31 July 2021

Governing Documents The Charity is governed by Charity Commission Schemes dated 28 March 1974 and 25 January 1980 as amended by a resolution of the Trustees under section 74(2) of the Charities Act 1993 dated 6 March 2007, two resolutions of the Trustees under section 280 of the Charities Act 2011 and a Scheme of the Charity Commission of 24 February 2021.

The Charity is registered with the Charity Commission under registered charity number 503463. Trustees Gillian Cooper (Chair) Simon Archer Marian Davidson David Higgs David John Nightingale Beryl Pritchett Margaret Titmus Clerk to the Trustees Ms Kirsty McEwen Solicitors Higgs LLP 3 Waterfront Business Park Brierley Hill West Midlands DY5 1LX Investment Managers EFG Harris Allday 33 Great Charles Street Birmingham B3 3JN Bankers HSBC 114 High Street Stourbridge West Midlands DY8 1DZ Independent Examiner Churchill Taxation 835 Birmingham New Road DY4 8AS

Charity of Frederick Pearson Fisher

Page 2

Trustees Annual Report

Year Ended 31 July 2021

The Trustees present their annual report and financial statements of the Charity for the year ended 31 July 2021. The financial statements have been prepared in accordance with the accounting policies set out in the accounts and comply with the Charity’s Governing Document, the Charities Act 2011 and the Statement of Recommended Practice applicable to the charities preparing their accounts with the Financial Reporting Standard applicable on 16 July 2014.

Structure, Governance and Management

The Charity was registered with the Charity Commission on 11 July 1974 under registered charity number 503463 and is governed by Charity Commission Schemes dated 28 March 1974 and 25 January 1980, a resolution of the Trustees under section 74(2) of the Charities Act 1993 dated 6 March 2007, two resolutions of the Trustees under section 280 of the Charities Act 2011 and a Scheme of the Charity Commission of 24 February 2021 (“the Governing Documents”).

The Charity does not actively fundraise and seeks to continue the charitable work desired by the Settlor through the careful stewardship of its existing resources.

The Governing Documents provide for there to be five Trustees.

Trustees are appointed for a term of office for five years, with no maximum number of terms of office. Trustees terms of office took effect from their current term of office as served at the date of resolution passed on 18 September 2012.

The Trustees must hold two meetings each year. The quorum at any meeting is at least one third of the total number of Trustees at the time, or two, whichever is the greater.

At the Trustees’ meetings, the Trustees agree the broad strategy and areas of activities for the Charity, including consideration of grant making, investment policy, level of reserves and risk management.

The day to day administration of grants and the processing and handling of applications prior to consideration by the Trustees is delegated to the Clerk. The Clerk will consider the monitoring information concerning the performance of grants to date and make recommendations to the Trustees concerning the extension, cessation or suspension of existing grant approvals.

The Trustees would consider the recommendations of the ICSA best practice guide ‘Recruitment, Appointment and Induction of Charity Trustees’ and should the need to recruit new Trustees arise. The Trustees would propose to consider the recruitment of new Trustees based on their experience, empathy and knowledge of the Charity and to keep the skills and composition of the Trustee body and succession planning under review. New Trustees may be sought by open advertisement or through a dialogue or local community groups respecting the ethos of the Charity. To continue the charitable work intended by the Settlor, the Trustees actively seek those with a knowledge of the local area when considering any prospective candidate. The ultimate decision on selection is a matter for the Trustees.

Charity of Frederick Pearson Fisher

Page 3

Trustees Annual Report

Year Ended 31 July 2021

On appointment new Trustees sign a model trustee declaration statement committing them to the giving of their time and expertise. The induction process has been changed to follow the ICSA good practice guide with a formal induction programme for any newly appointed trustee being led by the Clerk, to include an initial meeting with the Chair, followed by a series of short meetings with the Clerk on investments, the grant making process, power and responsibilities of the trustee board and the sub committees. The welcome pack includes, amongst other information and guidance, a brief history of the Trust, copy trustee board and sub committee minutes (if any), a copy of the last three years of annual reports and accounts, a copy of the Governing Document and a copy of the Charity Commission’s guidance ‘The Essential Trustee: What You Need to Know’ and ‘Charities and Public Benefit’.

The Trustees remain committed, with the support of the Clerk, to developing a code of conduct for Trustees including formal statements of roles and responsibilities and to undertake informal trustee training.

All Trustees give of their time freely and no Trustee remuneration was paid in the year. Trustees are required to disclose all relevant interests and register them with the Clerk and in accordance with the Trust’s written conflicts of interest policy, withdraw from decisions where a conflict of interest arises.

All Trustees give of their time freely and no Trustees remuneration was paid in the year.

Risk Management

The Trustees have considered the major risks to which the Charity is exposed and have reviewed those risks and established systems and procedures to manage those risks.

The major financial risk is the variability of investment returns on the portfolio and its impact on income levels and capital growth. The Trustees have actively sought to manage this risk by appointing Charles Phipps of EFG Harris Allday as Discretionary Manager of the investment portfolio. His role is to monitor the performance of the portfolio, to take appropriate action to mitigate any loss to the portfolio, and to ensure that the objectives as detailed in the Investment Policy Statement are following and reviewed annually.

The major operational risk is the extent to which the grant awarded to individuals and charitable or not for profit organisations advances the objects of the Charity and demonstrates sufficient public benefit. The Charity has managed its risk by retaining Trustees of sufficient skill and expertise and through the quality of institutions and the people who they support. In addition, the Trustees rely on the Clerk to ensure any review process retains a focus on the public benefit derived from the funding of the individuals and projects.

The major regulatory risk is the impact of the Common Reporting Standard (‘the CRS’), on the operation of the Trust. CRS is being an international tax transparency regime aimed at preventing tax evasion. CRS came into force from 1 January 2016 and the Charity is now required to provide information about their beneficiaries, tax residency status to HMRC, who will then share this information with the appropriate tax authority in other jurisdictions.

Charity of Frederick Pearson Fisher

Page 4

Trustees Annual Report

Year Ended 31 July 2021

The Charity is subject to this regime because it relies on investments for more than 50% of its income and those investments are professionally managed by a financial institution under discretionary mandate. This means the Trustees are required to carry out due diligence to establish a tax residency status of all beneficiaries, keep records of efforts to comply with the regime, register with HMRC as a financial institution (“Financial Institution”) if they have reporting requirements and report to HMRC if required.

The grant application process is reviewed annually and the grant application form expanded to collect the necessary due diligence information that is required in order to establish tax residency status of all grant recipients, both individuals and charity and not for profit organisations. This includes additional information including tax resident jurisdiction, tax identification number (for individuals) and entity status (for organisations). The new process has been implemented and no significant difficulties have been experienced. The Trustees will keep this under review.

Objects and Activities for the Public Benefit

The objects of the Charity were amended by Scheme of the Charity Commission on 24 February 2021 as follows:

  1. The Objects of the Charity are to make grants for such charitable purposes as the Trustees shall in their absolute discretion decide, in particular by:

  2. 1.1 advancing the religious and other charitable work of the Church of England for the benefit of the public in the West Midlands;

  3. 1.2 relieving sickness and preserving the health of those people residing permanently or temporarily in the West Midlands;

with a preference being given to inhabitants of the Ecclesiastical Parishes of St. Michael, Brierley Hill and St John, Brockmoor.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s objects and purposes and in planning future activities and setting the grant making policy for the year.

The Charity carries out its objects by providing grants to individuals (for exclusively charitable purposes) and to charitable and not for profit organisations within the area of benefit (for exclusively charitable purposes).

By focusing on these areas, the Charity achieves its strategic priorities of maintaining a stable grant making programme, with balancing support to individuals and to charities and voluntary organisations (for exclusively charitable purposes).

By focusing on these areas, the Charity achieves its strategic priorities of maintaining a stable grant making programme.

Charity of Frederick Pearson Fisher

Page 5

Trustees Annual Report

Year Ended 31 July 2021

Grant Making Policy

The Trustees have power to spend the income and capital in furtherance of the objects.

The Charity has established its grant making policy to achieve its objects for the public benefit, to improve the lives of individuals and to support charitable and not for profit organisations operating within the geographical area of benefit which the Trustees have established and which they review on an annual basis. The Trustees review the grant making policy annually to ensure it reflects the Charity’s objects and thereby advances public benefit.

The Trustees have power to spend or retain both capital and income, but in their absolute discretion, exercise that discretion by spending the income on an annual basis in furtherance of the objects.

The Trustees review the grant making policy annually to ensure that it reflects the Trust’s objects and thereby advance its public benefit.

The Trust’s beneficiaries are individuals and charitable or not for profit organisations operating within the West Midlands, with a preference being given to individuals resident, or charitable or not for profit organisations operating in, the Ecclesiastical Parishes of St. Michael, Brierley Hill and St John, Brockmoor.

The general policy of the Trustees is not to give retrospective grants and the Trustees will only consider one application per year from any applicant.

Grant Making Procedure

Applications can only be considered if they are on the Charity’s standard application form. The application form must be completed and returned (together with a copy of any supporting information relevant to the application) to the Clerk at least four weeks before the meeting at which the application is to be considered.

The Trustees meet two times a year to consider applications.

It is the policy of the Trustees is to consider grants on an equal opportunities basis, regardless of gender, religion and ethnic background.

Public Benefit

The Trustees confirm that they have referred to the information contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s objects and activities, their grant making policy and plans for future period. The objects and activities of the Charity are largely determined by the provisions of the Governing Documents, and from there the Trustees exercise a discretion in considering how best to meet the public benefit test and ensure that as many individuals and charitable and not for profit organisations (for exclusively charitable purposes) with particular needs will gain advantage.

The Trustees confirm that they have referred to the information contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s objects and

Charity of Frederick Pearson Fisher

Page 6

Trustees Annual Report

Year Ended 31 July 2021

activities, their grant making policy and plans for future period. The objects and activities of the Trust are largely determined by the provisions of the Governing Documents, and from there the Trustees exercise a discretion in considering how best to meet the public benefit test and ensure that as many individuals and charitable and not for profit organisations with particular needs will gain advantage.

Monitoring and Achievement

The Trustees have continued with an aspiration to seek a reasonable return over the long term. In recent years the portfolio has shown a welcomed recovery and it is considered that the long-term objectives to meet income needs and grow the capital remain obtainable.

During the year the performance of the principal investment portfolio was managed by EFG Harris Allday and was considered satisfactory with all benchmarks being largely achieved.

Grants awarded during the period are listed on page 13 in the accounts.

Financial Review

The Charity’s work is entirely reliant on income and investment returns from its capital. As at 31 July 2021, the value of the capital fund stood at £474,533. During the year the investment income of the Trust amounted to £15,432.

Investment Policy and Performance

The investment powers of the Trustees are wide and allow the Trustees to invest funds in any matter (after taking such advice as they consider necessary) and having regard to the suitability of investments and need for diversification.

The principal investment holdings of the Charity comprise funds and portfolios of quoted securities. As at 31 July 2021, the value represented 100% of the Charity’s investments. The management of the portfolio is undertaken on a discretionary management basis by EFG Harris Allday and the written investment policy is reviewed on at least an annual basis by the Clerk in conjunction with the investment managers and ultimately approved by the Trustees.

Following investment advice, the Trustees agreed to retain cash with EFG Harris Allday of £4,708 and cash in bank with HSBC Bank of £5,354.

The Discretionary Managers are instructed to maximise the income on the portfolio whilst preserving the capital, within the constraints of a medium risk investment portfolio.

Reserves Policy

The whole of the Charity’s capital is expendable and this distinction between capital and income is not relevant. The Trustees appreciate that the general principles of charity law require Trustees to spend their income within a reasonable period of receipt.

Page 7

Charity of Frederick Pearson Fisher

Trustees Annual Report

Year Ended 31 July 2021

The Trustees have set and agreed a reserves policy which broadly identifies the framework within which the Trust will operate. The intention is that the Charity will retain an appropriate and reasonable level of reserves whilst concurrently ensuring that it uses the income in a manner that is within the objects at the best interests of the Charity and its beneficiaries.

Since the Charity receives all of its income from the investment portfolio, the Trustees are mindful that the source of income can be volatile and subject to sudden changes in the market. They are concerned that in any year there is a risk that they cannot meet their ongoing administration and professional expense commitments as and when they arise, due to any fluctuations in the market which may prevent or significantly reduce dividend payments.

The Trustees have therefore considered, in conjunction with the accountant, the level of reserves to retain from surplus unrestricted funds. They have decided to build up a pot of reserves equivalent to one year’s administrative and professional expenses but excluding grant commitments. This will ensure that should there be any fluctuations in the market which reduce the income available for distribution, the Charity can use its reserves to continue to meet its obligations and liabilities as and when they fall due.

Plan for Future Periods

The Trustees believe their grants have translated into significant public benefit. The Trust is a lasting testimony to the generosity and charitable concerns of the Settlor. In cementing the arrangements already in place, and continuing with its current activities as set out in this report, so that the many and varied charitable and not for profit organisations, and individuals may continue to benefit in real terms from its financial support, the Charity aims to provide a longer term commitment and thereby encourage and support individuals and charitable and not for profit organisations within the area of benefit.

The intention is to commence a programme of grant giving which will translate into significant public benefit. The Trustees will focus on those organisations who would benefit in real terms from its financial support, thus providing and ensuring a longer-term commitment in encouraging and supporting those organisations and the individuals they support.

Charity of Frederick Pearson Fisher

Page 8

Trustees Annual Report

Year Ended 31 July 2021

Trustees’ Responsibilities in Relation to the Financial Statements

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations and United Kingdom Accounting Standards. The law applicable to charities in England and Wales required the Trustees to give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including income and expenditure of the Charity for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the Governing Document.

They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud any other irregularities. The Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Register of Charities.

Approved by the Trustees and signed on their behalf by:

Mrs G C Cooper Chair of the Trustees

Charity of Frederlck Pearson Flsher Page 9 Independent Examiner's Statement Year Ended 31 July 2021 I report on the accounts of the Charity for the year ended 31 July 2021 whlch are set out on pages 10 to 15. Respective Responslbllltles of Trustees and Examlner As the Trustees you are responslble for the preparatlon of the accounts: you conslder that an audit is not requlred for this year under 5ertlon 122(2) of the Charities Act 2011 (the 2011 Act) and that an Independent examlnation Is needed. It is my responslbillty to: Examine the accounts under sectlon 145 of the 2011 Act. To follow the procedure5 lald down In the general Dlrectlons glven by the Charlty Commlsslon under sectlon 145(5)(b) of the 2011 Act; and To stste whether particular matters have come to my attentlon state. Basls of Independent Examlner's report My examlnatlon was carrled out In accordance wlth the General Dlrectlons glven by the Charlty Commlsslon. An examlnatlon Includes a revlew of the accounting records kept by the Charlty and a comparlson of the accounts presented wlth those records. It also Includes considerdtlon of any unusual Items or dlsd05ures in the accounts, and seeklng explanatlons from you as Trustees concernlng any such matters. The procedures undertaken do not provlde all the eVIden￿ that would be required In an audlt, and consequently I do not express an audlt opinion on the vlew glven by the accounts. Independ•nt Examlner's Statement In connectlon wlth my examlnation, no matter has come to my attentlon: (i) whlch glves me reasonable cause to belleve that In any materlal respect the requlrements to keep accountlng records in accordance with Sectlon 130 of the 2011 Act; and to prepare accounts which accord wlth the accountlng records and to comply with the accountlng requlrements of the 2011 Act have not been met; or (2) to whlch, In my opinlon, attentlon should be drawn In order to enable a proper understandlng of the accounts to be reached. Signed: Name: Stephanie Churchlll Relevant professional qualification or body: AAT Address: 835 Blrmingham New Road, DY4 8AS

Charity of Frederick Pearson Fisher

Page 10

Statement of Financial Activities

Year Ended 31 July 2021

Notes
Incoming resources:
Incoming
resources
from
generated funds
3
Total incoming resources
Resources expended:
Cost of generating funds
4
Charitable activities
Cost of grant making
Governance costs
Total resources expended
(Net) outgoing/incoming
resources before other
recognised gains and losses
Realised losses on
investment assets
Unrealised losses/gains on
investment assets
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried
forward		 Unrestricted
Funds
Total Funds
2021
2020
75,156
75,156
16,260
75,156
75,156
16,260
0
0
0
12,198
12,198
13,527
12,198
12,198
13,527
9,622
9,622
9,622
21,820
21,820
23,149
53,336
53,336
(6,889)
6,843
6,643
(37,524)
59,825
59,825
(23,959)
354,529
354,529
422,901
474,533
474,533
354,529

Charity of Frederick Pearson Fisher

Page 11

Balance Sheet

Year Ended 31 July 2021

Notes
Fixed Assets
Investments
7
Total Fixed Assets
Current Assets
Cash in bank and EFG
Harris Allday
Debtors
Total current assets
Liabilities
Creditors falling due within
one year
8
Net current assets
Total assets less current
liabilities
Net assets
The funds of the Charity
Unrestricted income fund
Total Charity Funds		 Unrestricted
Funds
Total Funds
2021
2020
472,259
340,595
472,259
340,595
10,062
15,434
-
-
10,062
15,434
7,788
1,500
2,274
13,934
474,533
354,529
474,533
354,529
474,533
354,529

The notes at pages 12 to 15 form part of these accounts

Approved by the Trustees on and signed on their behalf by:

…………………………..……

Mrs G C Cooper Chair of the Trustees

Page 12

Notes to the Accounts

Charity of Frederick Pearson Fisher

Year Ended 31 July 2021

1. Accounting Policies

(a) Basis of preparation

The financial statements have been prepared under the historic cost convention, with the exception that investments are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (FRSEE) issued in January 2015 and applicable UK Accounting Standards and the Charities Act 2011.

(b) Funds structure

The charity has one fund, an unrestricted income fund. This is a fund which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.

(c) Incoming resources

All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.

(d) Resources expended

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Grants payable are payments made to charitable organisations in the furtherance of the charitable objectives of the trust. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of the grant payable.

(e) Costs of generating funds

The costs of generating funds consists of investment management fees, legal fees, accountancy fees and other governance and regulatory fees.

(f) Charitable Activities

The costs of charitable activities include grants made.

Charity of Frederick Pearson Fisher

Page 13

Notes to the Accounts

Year Ended 31 July 2021

(g) Governance costs

Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to the preparation of the accounts, the independent examination fee and legal fees.

(h) Fixed asset investments

Investments are stated at market value as at the balance sheet date. The statement of financial activities includes the net gain and losses arising on revaluation and disposals throughout the year.

(i) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between and market value at the year end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities.

(j) Contingent liabilities and provisions

In accordance with the SORP, a contingent liability is disclosed for those grants, which do not represent liabilities, where the possible obligation, which arises from past events, will only be confirmed by the occurrence of one or more uncertain future events not wholly within the trustees’ control. Provisions are recognised for those grants where there is uncertainty as to the timing or amount, and any uncertainty regarding the amount is more than one of determining a basis for reasonable estimation of the liability arising from that constructive obligation.

2. Related party transactions and trustees’ remuneration

Trustees received no emoluments and claimed no expenses in the year.

3. Investment income

UK Equities – Dividends
Interest on cash deposits
Donation – Cash B Fisher Estate		 2021
£
15,432
0
59,724
75,156		 2020
£
16,245
15
-
16,260

Charity of Frederick Pearson Fisher

Page 14

Statement of Financial Activities

Year Ended 31 July 20214

4. Investment Manager’s cost

2021 2020 £ £ Investment Management fees - - - -

5. Analysis of charitable expenditure

The charity undertakes its charitable activities through grant making and awarded grants to a number of organisations in furtherance of its charitable activities.

Grant funded activity

2021
£
Grants awarded in respect of the advancement of religion and 3,698
other charitable work
Grants awarded in respect of the relief of sickness and preservation 8,500
of health
12,198
6. Governance costs
2021 2020
£ £
Accountancy charges -Independent Examiners Fee 0 1,500
Legal fees – Administration 6,950 5,818
Legal fees– Account preparation 950 950
VAT 1,580 1,354
Trustees Expenses 142 -
9,622 9,622

Charity of Frederick Pearson Fisher

Page 15

Statement of Financial Activities

Year Ended 31 July 2021

7. Fixed Asset Investments
Movement in fixed asset investments
Market value as at 1 August 2020
Additions to investments at cost
Disposals at carrying value
Net loss/gain on revaluation
Market value as at 31 July 2021
Investment at market value
Comprised:
8. Analysis of current liabilities and long term creditors
Creditors under 1 year
Accountancy charges - Independent Examiners Fee
Legal Fees
Unpaid grants
UK Equities
Cash
Total		 2021
£
340,595
284,686
(212,847)
59,825
472,259
2021
£
-
6,788
1,000
7,788
2021
£
472,259		 2020
£
361,663
287,334
(284,443)
(23,959)
340,595
2020
£
340,595
2020
£
1,500
-
-
1,500