Annual Report

Financial statements 31 July 2008
together with trustees' and independent examiner's report

To download the Annual Report please click here
Registered number: 225659

Trustees
Mr Simon Swynfen Jervis FSA (Chairman)
Dr. Ian Bristow DPhil FSA ARIBA
Lady Greenstock
Mrs Felicity Guinness
Mrs Caroline Laing (appointed October 2007)
Mr Simon Wethered
Mr Martin Williams

Secretary
Louisa Lawson

Registered office
84 Cicada Road
London SW18 2NZ

Charity No: 225659
Telephone: 020 8870 6233
Website: www.lechetrust.org
Email: info@lechetrust.org

Accountants
JS2 Limited
One Crown Square
Church Street East
Woking, Surrey
GU21 6HR

Bankers
National Westminster Bank plc
123 – 127 Sheen Road
Richmond
Surrey TW9 1TJ

Investment managers
COIF Charity Funds
CCLA Investment Management Limited
2 Fore Street
London EC2Y 5AQ

Solicitors
Speechly Bircham
6 St Andrew Street
London
EC4A 3LX

Auditors
Nexia Smith & Williamson
Chartered Accountants
Registered Auditors
Prospect House
2 Athenaeum Road
London
N20 9YU

Financial Statements
The trustees present their report and financial statements for the year ended 31 July 2008.

Trustees' Responsibilities

Charity 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 charity and of the surplus or deficit of the charity for that period. In preparing those financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Structure, Governance and Management

Principal Activities

The Trust was founded in 1950 and endowed by the late Mr Angus Acworth, CBE. It operates under a Deed of Settlement, dated 1 February 1963.

Appointment of Trustees

On the retirement of a Trustees, the Trustees decide in which area they need to have additional expertise and recruit a Trustee from that field. The new Trustee is identified and appointed by the remaining Trustees. The main areas of expertise are the arts, and particularly music, and the field of conservation, with special interest in historic buildings and churches, together with knowledge of museums.

Trustee Training

The Trust is a member of the Association of Charitable Foundations which runs courses specifically for Trustees of grant-giving charities. The Trustees are encouraged to attend any of the sessions on offer.

Induction and training of Trustees

The Chair of Trustees is responsible for the induction of any new Trustee which involves awareness of a trustee’s responsibility, the governing document, administrative procedures, the history and philosophical approach of the charity. Under the auspices of the Association of Charitable Foundations, the Trustees are able to attend training sessions on various aspects of grant making. The new Trustees receive an information pack on the Trust and its grant giving policy, together with a copy of the last annual report and accounts.

Risk Review
In carrying out their risk review the Trustees considered that the respective risks to which the charity was exposed and the systems established to mitigate those risks were as follows:

Financial
The risk of the loss of (or drop in) the charity’s capital or income was mitigated by the Trustees having received the investment management of their portfolio of investments, as a result of which CCLA (who are respected in the field) were selected. The risk of misapplication of grants was mitigated by insisting on receipts and confirmation (in the case of students) from their university that the grant money had been received and forwarded to the student. In the case of projects of an uncertain nature, no money is forwarded until it is certain that the project is able to proceed according to plan. There have been very few instances of fraudulent applications, but checks have enabled these to be detected. The operation of the charity’s bank account required the signature of a Trustee on each movement of funds; the Secretary is only authorised to make transfers between the charity’s accounts.

Personnel
The risk of the Secretary administering the charity alone is an acknowledged one. However, access to her computer and the data on it could easily be arranged, and the trustees would be able to take executive action to keep the work of the charity functioning. There are good records which could be used to recover from any system crash, and the Chairman keeps a copy of all proceedings of the charity, as do the charity’s bankers and accountants.

Reputation
All applications for grants are sent to the Secretary. Those requests not suitable for the trust are rejected by her but the list of rejections is given to the Trustees at each meeting and they may query the rejection and ask for the application to be reinstated. Acceptable applications are considered by the Trustees at each meeting and grants are awarded according to favourable consensus so long as funds are available. The Trustees give careful thought on each occasion to whether accepting or declining any particular grant application which may damage the reputation of the charity.

Objectives and Activities

Objectives
The trustees aim to distribute the income on the capital each year and plan the amounts of their grants accordingly. The trustees met on 19th February 2008 to review the guidelines for applicants and agreed to adopt the following wording:

In furtherance of and for the purposes of implementing the charitable objects of The Leche Trust as set out in the Settlement dated 1st February 1963, The Leche Trustees have resolved that the following (which are not in order of precedence but which follow the particular wishes of the Settlor) shall be their non-exclusive guidelines for the purposes of determining whether favourable consideration should be given to applicants for financial assistance from the Trust:

the promotion of amity and good relations between Britain and third world countries by financing visits to such countries by teachers or other appropriate persons, or providing financial assistance to students from overseas especially those in financial hardship during the last six months of their postgraduate doctorate study in the UK or those engaged in activities consistent with the charitable objects of the Trust;
assistance to academic, educational or other organisations concerned with music, drama, dance and the arts;
the preservation of buildings and their contents and the repair and conservation of church furniture (including such items as monuments, but excluding structural repairs to the church fabric); preference is to be given to buildings and objects of the Georgian period;
assistance to conservation in all its aspects, including in particular museums and encouraging good practice in the art of conservation by supporting investigative and diagnostic reports; and
the support of charitable bodies or organisations associated with the preservation of the nation’s countryside, towns, villages and historic landscapes.

As a matter of present policy the Trustees are in general not minded to make grants for or to:-

religious bodies, overseas missions etc., schools or school buildings, social welfare, animals, medicine, expeditions or British students.

Achievements, Performance and Financial Review

Review of Activities
The Trustees met three times during the year to discuss grant applications and approved 75 grants amounting to £215,135 (2007: £303,150). Included in these, the Students Committee approved 19 grants to individual overseas students, totalling £25,050. Note 5 to the financial statements shows how the grants were distributed and includes grants approved and brought forward from previous years. The total payments amounted to £171,655 (2007: £167,843). Grants approved which were unpaid at the year end amounted to £314,810 (2007: £273,730).

Historic Buildings
The Trustees gave eleven grants towards the restoration of buildings which represented 20% of the total. The largest grant of £6,000 was made to the London Historic Parks and Gardens Trust to sponsor the 2009 edition of their publication “The London Gardener”. The Trustees gave two grants to Preservation Trusts in Scotland for the restoration of buildings which would enhance the local townscapes. These buildings would eventually be put to commercial use but it was imperative to help secure the buildings in the overall landscape concept, rather than concentrate on the eventual use of the individual buildings. The Trustees gave two grants towards the restoration of industrial buildings: the Eskdale Mill in Cumbria and the restoration of the windmill at Balsall Common in the West Midlands. The Trustees also gave a grant of £5,000 towards the reconstruction of an 18th century barn at Chawton House in Hampshire which would form part of the proposed recreation of a Georgian farm. The National Trust was helped with a grant of £4,000 towards the restoration of the caffoy window-cushion in the Saloon at Erdigg in North Wales.

Churches
The Trustees gave twenty three grants towards the restoration of monuments and furnishings in Churches which represented 29% of the total funding. The majority of the grants were made towards the restoration of monuments, both inside churches and in adjacent churchyards. The restoration of the two spectacular mausolea in the Knockbreda churchyard in Northern Ireland was given a grant of £5,000. The organ case of the Abraham Jordan organ, dating from 1723, at St George’s Church in Southall, London was given a grant of £5,000. A grant of £5,000 was also given to the restoration of another organ case, by Gray and dated 1793, in St Patrick’s Catholic Church in the centre of London. A grant of £5,000 was given to help restore the collection of monuments to the Harland family in All Hallows Church at Sutton on the Forest in Yorkshire. The restoration of the pulpit at St Mary’s Church in Molland, Devon was helped with a grant of £4,000.

Institutions and Museums
The Trustees gave ten grants to museums and institutions which represented 11% of the total. The largest grants were for the restoration of Queen Caroline’s Throne Canopy in the State Rooms at Hampton Court (£5,000) and for the restoration of picture frames at the Watts Gallery in Surrey (£5,000). A grant of £1,500 was given towards the restoration of furniture on display at Gainsborough House in Sudbury. The Courtauld Institute of Art received a grant of £2,350 for the construction of a new frame for Spinello Aretino’s “The Nativity” which enabled the panel to be put on display in the Institute’s Renaissance Gallery. The College of Arms received a further grant of £3,000 towards the rolling programme of restoration of their books and manuscripts.

Education
The Trustees gave two grants to individuals in order that they may pursue their careers in the field of conservation. Mr. Gray received a grant to undertake a course in photographic conservation and a student from Bulgaria was helped to complete a course on the Conservation of Ceramics and Related Materials at West Dean College. The Trustees also gave a grant of £2,000 to a Ukrainian student at the Guildhall School of Music who is studying the viola as a postgraduate student. The three grants represent 1% of the total spent on grants.

Overseas Students
The Trustees gave nineteen grants to overseas students who are in the final six months of their PhD courses. The students came from nine different countries. These grants represent approximately 12% of the total expenditure. The average grant was just over £1,300. The Trustees were encouraged to see a rise in the number of students applying for grants, after the decline in recent years.

Arts
The Trustees gave twenty seven grants to arts organisations which represented 26% of the total. Nearly all the grants were given towards the production costs of putting on concerts or opera performances. The largest grants was given to the English National Opera to support the costs of a répétiteur (£5,000) and to The Opera Group (£5,000) towards the production of “Street Scene”. The Trust supported several local music festivals around the country with grants towards specific concerts. The Trust also supported the Central School of Ballet and the English National Ballet School with grants towards masterclasses from professional overseas teachers, which were enjoyed by all the students.

Comparison

Grants

See Note 5 to the financial statements for further details of grants awarded.

Outstanding Grants
There are, as always, a small number of outstanding grants which have over-run the 2-year time limit for acceptance, beyond which the trust can decide to withdraw their contribution. The Secretary is closely monitoring the situation. Details are set out in Appendix A to the financial statements.

Grants not Taken Up
The grant of £2,400 to the Textile Conservation Centre towards their new MA Organics Conservation course was not taken up as the Centre is being forced to close by the University of Southampton in 2009 and they were unable to start the course.

Investment Performance
The principal objective of the Trust is to spend its income of grant giving to organisations and individuals as set out in the Trust Deed. To this end, the Trustees are keen to ensure that the income stream is not only maintained but rises year on year to ensure that the level of giving can slowly increase. The Trustees understand that the value of the capital may fluctuate but they are agreed that the level of income should at least remain constant. The Trustees are satisfied with the performance of the Charity’s investments during the year, in light of the difficult economic conditions.

Reserves Policy
The Trustees’ policy is that so far as possible the annual income of the Trust should be applied exclusively towards its charity grants and in administration of the Trust. However, it is thought prudent to establish some modest reserves from underspent income so as to ensure that should there be any unexpectedly substantial call upon the resources of the Trust, the Trustees would be in a position to respond. This has currently been set as £5,000 per annum.

Plans for Future Periods
The Trustees are committed to continuing to give grants to organisations and individuals in a similar way to the recent past, continuing the emphasis on the arts and heritage areas of giving but retaining flexibility as to the timing, and scale of grant making. They will endeavour to ensure that there is a spread of grants across the various areas and that no one area will have priority to the funding. They also recognise that a considerable number of their grants will constitute matching funding with other grant-giving bodies.

Approved by the Board of Trustees
Mr Simon Swynfen Jervis
Trustee

We have audited the accounts of The Leche Trust for the year ended 31 July 2008 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes 1 to 6. These accounts have been prepared under the accounting policies set out therein.

This report is made solely to the charity’s trustees, as a body, in accordance with section 43 of the Charities Act 1993 and regulations made under section 44 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors

The responsibilities of the trustees for preparing the Annual Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Trustees’ Responsibilities

We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit the accounts in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the accounts give a true and fair view and are properly prepared in accordance with the Charities Act 1993. We also report to you if, in our opinion, the Trustees Annual Report is not consistent with the accounts, if the charity has not kept proper accounting records, or if we have not received all the information and explanations we require for our audit.

We read the trustees’ annual report and consider the implications for our report if we become aware of any apparent misstatements within it.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the accounts. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the accounts, and of whether the accounting policies are appropriate to the charity’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the accounts.

Opinion

In our opinion the accounts give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the charity’s affairs as at 31 July 2008 and of its incoming resources and application of resources for the year then ended; and have been properly prepared in accordance with the Charities Act 1993.

NEXIA SMITH AND WILLIAMSON

Chartered Accountants
Registered Auditors

Prospect House
2 Athenaeum Road
Whetstone
London
N20 9YU

The Leche Trust