Registered Charity No: 251021 PATRON: HER MAJESTY THE QUEEN 3 Mount Mews, High Street, Hampton, Middlesex, TW12 2SH Tel: 0208 941 6907 Fax: 0208 979 4323 www.pdtrust.org ANNUAL REPORT & FINANCIAL STATEMENTS 2012-2013 Page Introduction to the Trust 2 Trustees Annual Report 5 Independent Auditors Report 12 Statement of Financial Activities 14 Balance Sheet 15 Notes to the Financial Statements 16 Board of Trustees 27
INTRODUCTION TO THE TRUST Origins The Police Dependants Trust was founded in 1966 as a response to the deaths of three police officers who were shot while on duty in London. In August 1966, three plain-clothes police officers, Sergeant Christopher Head and Constables David Wombwell and Geoffrey Fox, stopped their unmarked car in Shepherds Bush. Sergeant Head and Constable Wombwell went to check out the occupants of a Standard Vanguard while Geoffrey Fox remained at the wheel of the police car. The Vanguard was occupied by three small-time criminals: Harry Roberts was sitting in the front with the driver, John Witney, while John Duddy was in the back of the car. The three were intent on stealing a car for use in a robbery. Roberts was carrying a gun and there were two other weapons in a bag next to Duddy. Witnesses reported what happened next. As Constable Wombwell took the details of the men in the front of the car, Sergeant Head went to the back of the car and asked Duddy about the contents of the bag. Without warning, Roberts fired his Luger pistol at Constable Wombwell's head killing him instantly. The next shot missed its target but a third shot fatally wounded Sergeant Head as he tried to run for cover behind the police car. Moments later, Constable Fox fell victim to Roberts and Duddy who both fired several shots as he attempted to reverse the police car at them. The public was appalled by this terrible tragedy which demonstrated the dangers police officers face in the line of duty. An anonymous donation of 100,000 was offered to a Home Office Minister to establish a permanent trust to assist in cases where police officers were killed or injured on duty. Later it was made public that the anonymous donor was in fact Sir Billy Butlin, of the famous Butlin s holiday camps. A public appeal was launched and more than 1 million was raised. The Police Dependants' Trust was founded and continues its vital work today. In its first year the Trust paid a total of 33,985 in grants. This year, grants totalling 1,067,892 have been paid. Since its inception the Trust has paid out in excess of 47 million to almost seven thousand beneficiaries. Objects of the Trust The promotion of the efficiency of the police service in the United Kingdom by: (a) (b) (c) (d) (e) the relief of beneficiaries in cases of need, hardship or distress; the relief of mental or physical sickness, disability or infirmity among beneficiaries; the relief of old age among beneficiaries; the provision of support of facilities for sports or recreation and other forms of leisure time occupation for beneficiaries; and otherwise promoting the efficiency of the police in the United Kingdom and assisting beneficiaries in cases of need. - 2 -
Beneficiaries refers to any serving or retired police officer from any police force in the United Kingdom and the dependants of such a serving or retired police officer, or any deceased serving or retired police officer. To avoid any doubt, the term police officer includes: (a) (b) (c) (d) Members of the British Transport Police; Persons performing temporary overseas or central police force who enjoy a statutory right of reversion to such a police force; Special Constables appointed for any such police area; and Police cadets appointed to undergo training with a view to becoming members of such police forces. Dependants refers to any spouse, former spouse, civil partner, unmarried partner (of either sex), child, step-child, grandchild and/or any other member of an officer s family who, in the opinion of the Trustees, is or was financially reliant upon the officer. How the Trust helps The Trust provides grants in a variety of circumstances to those most in need: 1 Assistance Grants awarded to those whose income (after accommodation costs) falls below a defined level, enabling incapacitated officers and police dependants to enjoy a reasonable standard of living; 2 Education Grants not just to cover essentials such as clothing but also for the purchase of sports or computer equipment, musical instruments or other educational facilities; 3 Special Purpose Grants made in a variety of situations but most commonly to incapacitated officers for customised adaptations to their car or for special equipment to ease their disability and enable them to remain in their own homes; 4 Bereavement Grants these can also be made where necessary to assist with the immediate costs that arise when a police officer is killed on duty. 5 Residential Care Grants are also considered to assist with incidental expenses associated with residential care. How the Trust operates The Trust relies on the support of partners in each police force area to identify potential beneficiaries who can then register with the Trust, whether they are in need of financial support that that time or not. The Trust encourages potential beneficiaries to register with the Trust at the time of their injury/incident as this helps the Trust to plan for its future commitments. The Management Committee, acting on the authority delegated by the Board of Trustees, considers applications for assistance, which are made through the police area in which the applicant lives. The Committee normally meets six times each year but urgent cases can be fast-tracked if necessary. Since it was founded the Trust has relied heavily on local police force welfare departments processing registration/grant applications and providing informative reports which help the Committee s decisionmaking. These reports are often compiled following a personal visit to the applicant s home or based on prior knowledge of the applicant and form an integral part of the application. - 3 -
More recently financial restraints within the police service have led to a reduction in the number of police force welfare departments. As a consequence the Trust has begun working more closely with bodies associated with the police service, such as the Police Federations and Retired Police Officer s Associations to assist in processing applications. Those who assist the Trust in processing applications also keep in touch with beneficiaries whose cases the Trust has decided to monitor in order that additional assistance can be provided when needed. The Trust is grateful to all those individuals who help to identify beneficiaries and assist the Trust in providing appropriate support to those officers and families. The Trust would also like to thank chief officers for making these services available, but is concerned that the trend for these services to be restricted or withdrawn has continued. The Trust s income and commitments The Trust s income comes from four principal sources: Donations from police officers (payroll giving/give As You Earn/individual fundraising); Donations from the wider public; Legacies; and Investment and interest income. Every year, hundreds of police officers suffer serious injuries in the line of duty which affect their ability to work and which in some cases result in a permanent disability. Tragically, some officers lose their lives and for their families, life changes in an instant. The Trust has to raise around 2.5 million each year to meet existing commitments to beneficiaries and to take on board new requests for support. The Trust continues to register more and more potential beneficiaries each year and maintain a high rate of grant support with the year s expenditure exceeding income by 275,249. In order that the Trust can close this gap it is working hard to raise more money in a variety of different ways. More information on how donations can be made to support the work of the Trust can be found in the Get Involved section at www.pdtrust.org - 4 -
TRUSTEES REPORT The Trustees are pleased to present their annual report on the work of the Police Dependants Trust. Board of Trustees The membership of the Board on 31 March 2013 is set out on page 27. The Trustees met twice during the year to consider the Trust s investment matters and to plan for its short, medium and long term future. Management Committee The Management Committee met 6 times during the year and considered a total of 362 applications for assistance, including 51 new applications. During the year 5 applications were classed as urgent and given special attention resulting in them being dealt with immediately. Grants awarded The numbers of grants awarded by the Management Committee, or under the emergency procedure, were as follows: Assistance grants 106 Special purpose grants 59 Education grants 11 Other grants (i.e. bereavement, residential care) 14 Total 190 Value of grants Grants awarded ranged from to 147 to 10,000. - 5 -
Distribution of grants The value of grants awarded to applicants from each force is shown below: Force Applications Value Force Applications Value Avon and Somerset - - Lincolnshire - - Bedfordshire 2 650.00 Lothian and - - Borders BTP - - Merseyside 16 21,126.00 Cambridgeshire 1 980.00 Metropolitan 22 17,799.00 Central Scotland 3 2,500.00 Norfolk 2 4,000.00 Cheshire 3 8,270.00 Northamptonshire - - City of London - - Northern - - Cleveland 6 1,995.00 Northumbria 3 4,000.00 Derbyshire 2 2,249.00 North Wales 1 2,000.00 Devon and Cornwall 4 4,000.00 North Yorkshire - - Dorset 5 6,000.00 Nottinghamshire 4 12,000.00 Dumfries and 4 9,249.00 PSNI 109 155,018.20 Galloway Durham 1 4,000.00 South Wales 5 5,000.00 Dyfed Powys - - South Yorkshire - - Essex 17 29,086.00 Staffordshire 1 1,000.00 Fife Constabulary - - Strathclyde 42 47,163.11 Gloucestershire - - Suffolk 3 - Grampian - - Surrey 3 2,249.00 GMP 37 53,486.63 Sussex 9 5,282.00 Gwent - - Tayside 1 - Hampshire 19 32,442.84 Thames Valley 1 - Hertfordshire - - Warwickshire 0 - Humberside - - West Mercia 2 1,057.94 Kent 2 6,500.00 West Midlands 0 - Lancashire 4 7,390.00 West Yorkshire 11 1,556.00 Leicestershire 5 1,490.00 Wiltshire 1 - Please note that Applications includes registration applications, unsuccessful and successful applications for grants. - 6 -
Awareness and Fundraising Activities During the year the Trust implemented its first PR strategy to increase awareness of the Trust and the grants it provides. The activities ranged from having a visible presence at a number of high-profile police conferences, to delivering inputs at Police Federation and Occupational Health team meetings, to meeting with key partners from within the police service and the wider police family, as well as the charity sector. Putting resources into social media and wider communications has been particularly successful in helping us to engage with our supporters and to build relationships we feel will benefit our beneficiaries. Social media has also helped to attract new fundraisers to the Trust. The majority of groups and individuals who chose to fundraise for us this year did so as a result of hearing more about our work and our need to generate more funds to support officers and families. This increase in community fundraising is really encouraging and we are extremely grateful to the many people who have given up their time to support us by taking on unique, and in many cases, gruelling challenges. Next year we are looking to get some of our wider fundraising plans underway. We appreciate that times are tough for many people, but equally demand for support from injured officers and families who have lost a loved one remains very high. We can only continue to help so many families with the support of the police family and the wider public More information on this work can be found in the Get Involved section at www.thepdtrust.org - 7 -
WITH THANKS The Trust relies on donations to continue its work and we would particularly like to thank the following individuals, Trusts and Foundations, and companies for their support: M and P Alton Barings Gerald Bentall Charitable Trust P Bouclier J Caine J Cawthorne Charnes Estate A Chandler A Chatfield P Cook G Craig Cranbury Foundation Culford Lodge Evelyn Drysdale Trust H Van der Elst Excel Fund The late Margaret E Garfield Davies The late Patricia Gates FC Graves OBE DL JHF Green Trust D Greenwood Lady Hadfield Hampshire Constabulary P Holdridge Mr and Mrs Jones G Langley Edgar Lee Foundation M MacGregor P Martin R McBeth G Miller Morrisons Solicitors Linder Myers Newtons Solicitors Mr Christopher Palmer-Tomkinson Annette and Margarite Pierre The late Gilbert C Pollard C Prime P Reilly SC Sayer LA Smart Trust Mr and Mrs Southward The late Eric W Spurgeon Thames Valley Police Federation CBB Mr VJ Thompson and Mrs SM Higgins Mrs Tirbutt The late Brian E Wallace Western Police Sports and Social Club K Wilson The late Edward J Worth - 8 -
Staff The Trust employed five members of staff (3 1/2 FTEs) Auditors Bankers Chief Executive Position vacant (to August 2012) Richard Moule (from August 2012) Claims Manager Heather Martingell Claims/Admin Assistant Susan Callan Finance Officers Hannah Mueller and Pippa Butterfield Alliotts Chartered Accountants & Auditors Friary Court 13-21 High Street, Guildford GU1 3DL The Royal Bank of Scotland plc Drummonds Branch 49 Charing Cross London SW1A 2DX Investment Managers Solicitors Barings Investment Management Limited 155 Bishopsgate, London EC2M 3XY Bircham Dyson Bell LLP 50 Briadway LONDON SW1H0BL - 9 -
Investment policy and performance The Trustees have the power to invest in such stocks, shares and investments as they see fit. The Trust s policy is to seek a total positive return over time on the Trust s portfolio by means of balancing the growth and income characteristics of the portfolio of investments. Reserves policy Whilst the balance sheet shows net assets in excess of 24m, it should be noted under Note 19 to the financial statements that designated funds of 4m have been set aside. It is the policy of the Trust to maintain designated funds at a level which equates to approximately one to two years' costs of running the Trust. This provides sufficient funds to cover management, administration costs and support costs and to respond to emergency applications for grants, which arise from time to time. Thus there is a continuing need for new funds to be generated through fund raising to meet both existing demands and demands for assistance in the future. Results for the year The results of the Trust are set out in the financial statements on pages 15 to 27. The overall result for the year was a net movement in funds of 1,320,175 [2012 - (1,496,340)] after taking into account the net investment gains of 1,595,424 [2012 losses of 762,642]. The Trust continues to maintain a sound financial base, despite fluctuations in the value of its investment portfolio. 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 Trust and of the surplus or deficit of the Trust for that period. In preparing those financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation. The Trustees are responsible for the keeping of proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Charity. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Risk management The Trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to mitigate their exposure to major risks. - 10 -
Public Benefit In setting out their objectives and planning their activities the Trustees have given careful consideration to the Charity Commission s general guidance on public benefit. The Trust provides a significant public benefit given the relatively wide section of people who have the opportunity to apply and be considered as a potential beneficiary. The Trust provides a diverse range of means-tested grants that are available to those who qualify. In particular the Trustees have provided grants which have been used for the purpose of making extensive adaptations to the home of a disabled officer. The Trustees are continually reviewing the range of services and assistance offered by the Trust together with the opportunity of potential beneficiaries to access the grants available. Approval The Trustees approved this report on 30 September 2013. Terry Spence QPM Chairman - 11 -
INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF THE We have audited the financial statements of The Police Dependants Trust for the year ended 31 March 2013, which comprises the Statement of Financial Activities, the Balance Sheet and related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the Charity s Trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under section 154 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 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 Charity and its Trustees as a body, for our audit work, for this report or for the opinions we have formed. Respective Responsibilities of the Trustees and Auditors As explained more fully in the Trustees Responsibilities Statement, the Trustees are responsible for the preparation of financial statements that give a true and fair view. We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s (APB s) Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the Charity s circumstances and have been consistently applied and adequately disclosed. The reasonableness of significant accounting estimates made by the Trustees, and the overall presentation of the financial statements. Opinion on financial statements In our opinion the financial statements: give a true and fair view of the Charity s affairs as at 31 March 2013 and of its incoming resources and application of resources for the year then ended; has been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been properly prepared in accordance with the Charities Act 2011. - 12 -
INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF THE (CONT) Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: the information given by the Trustees Annual Report is inconsistent in any material respect with the financial statements, sufficient accounting records have not been kept, the financial statements are not in agreement with the accounting records and returns, or we have not received all the information and explanations we require for our audit. Alliotts Statutory Auditor Friary Court 13-21 High Street Guildford Surrey GU1 3DL 30 September 2013 Alliotts is eligible to act as auditor in terms of section 1212 of the Companies Act 2006. - 13 -
STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted Total Funds Total Funds Notes Funds Funds 2013 2012 Incoming resources: Incoming resources from generated funds: Voluntary income 2 424,639-424,639 768,942 Activities for generating funds - - - - Investment income 3 646,806-646,806 901,899 Other incoming resources 4 6,001-6,001 6,001 Total incoming resources 1,077,446-1,077,446 1,676,842 Resources expended: Cost of generating funds: Costs of generating voluntary income 6 93,958-93,958 88,487 Investment management costs 7 115,800-115,800 24,638 Charitable activities: Grantmaking 8 1,067,892-1,067,892 2,041,799 Governance costs: 9 75,045-75,045 162,255 Total resources expended 1,352,695-1,352,695 2,317,179 Net (outgoing) resources 13 (275,249) - (275,249) (640,337) Gains/( Losses) on investment assets: Realised 15 10,983-10,983 (148,659) Unrealised 15 1,540,721-1,540,721 (707,344) Net movement in funds 1,276,455-1,276,455 (1,496,340) Balance brought forward at 1 April 2012 Balance carried forward at 31 March 2013 23,651,471-23,651,471 25,147,811 24,927,926-24,927,926 23,651,471 All incoming resources and resources expended are derived from continuing activities. There are no other gains and losses other than those noted above and therefore no separate statement of total recognised gains and losses has been prepared. The accompanying accounting policies and notes form an integral part of these financial statements. - 14 -
BALANCE SHEET 2013 2012 Notes Fixed assets Tangible assets 14 424,328 419,484 Investments 15 23,759,072 22,618,567 24,183,400 23,038,051 Current assets Debtors 16 502,473 532,889 Cash at bank and in hand 17 326,676 245,081 829,149 777,970 Creditors: amounts falling due within one year 18 (84,623) (164,550) Net current assets 744,526 613,420 Net assets 24,927,926 23,651,471 Unrestricted 24,927,926 23,651,471 Restricted - - Total Funds 19 24,927,926 23,651,471 Approved by the Board of Trustees on 30 September 2013 and signed on its behalf by Terry Spence QPM Chairman - 15 -
NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES a) Basis of preparation The financial statements are prepared under the historical 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 (SORP 2005) issued in March 2005 and applicable UK Accounting Standards and the Charities Act 2011. b) Funds structure General funds are an unrestricted fund available for use at the discretion of the Trustees in furtherance of the general objectives of the Trust. Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purpose and use of the designated funds is set out in note 19 in the Statement of Financial Activities. Restricted Funds are subject to restrictions on their expenditure by the donor. The purpose and use of the restricted funds is set out in note 19 of the notes to Financial Statements. c) Incoming resources All incoming resources are recognised once the Trust 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. Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is virtually certain; this will be once confirmation has been received from the representatives of the estate(s) that payment of the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled and a reasonable estimate of the amount of incoming resources is possible. Subscriptions are the amounts collected by the individual forces through their payroll schemes. Donations are where individuals send monies directly to the Trust. Investment income is recognised on a accrual basis. d) Resources expended Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Trust to the expenditure and it can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. - 16 -
NOTES TO THE FINANCIAL STATEMENTS (contd) Costs of generating funds are those costs incurred in attracting voluntary income, the costs of trading for fundraising purposes, investment management and certain legal fees. Grants payable are payments made to third parties in furtherance of the charitable objectives of the Trust. The grants are accounted for where either the Trustees have agreed to pay the grant without condition or the recipient has a reasonable expectation that they will receive a grant. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Trust and include the audit fees and costs linked to the strategic management of the Trust. Irrecoverable VAT is charged against the category or resources expended for which it was incurred. Tax recovered from voluntary income received under gift aid is recognised in the Statement of Financial Activities when the income is receivable and is allocated to the income category to which the income relates. e) Tangible fixed assets Individual fixed assets costing 100 or more are capitalised at cost. Tangible fixed assets are depreciated over their estimated useful lives as follows: Asset category Leasehold Property Computer Equipment Furniture and Fittings Annual Rate over 50 years on a straight line basis on the estimated cost of the building over 3 years on a straight line basis over 4 years on a straight line basis f) Fixed asset investments Investments are stated at market value as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. Quoted stocks and shares are included at the balance sheet date at mid-market price, excluding dividends. g) Investment properties Investment properties are accounted for in accordance with the Statement of Standard Accounting Practice (SSAP) 19. Investment properties are stated at estimated market value. Formal valuations are only carried out, when trustees deem it necessary. - 17 -
NOTES TO THE FINANCIAL STATEMENTS (contd) h) Investment 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 the carrying value at the year end and the opening market value (or purchase date if later). i) Pension contributions The Trust operates a defined contribution pension scheme whereby the assets of the scheme are held separately from those of the Charity in an independently administered fund. Contributions are taken to the Statement of Financial Activities as they are incurred. j) Operating leases Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight line basis over the lease term. The title to the equipment remains with the lessor. 2. VOLUNTARY INCOME Unrestricted Restricted Total Total Funds Funds 2013 2012 Donations 35,296-35,296 28,946 Legacies 132,513-132,513 197,227 Home Office grant - - - 285,893 Subscriptions from police forces in: England 108,659-108,659 102,274 Scotland 108,249-108,249 112,420 Northern Ireland 35,116-35,116 36,731 Wales 4,806-4,806 5,451 424,639-424,639 768,942 There was Nil (2012-1,200) for the cost of printing the Trust s Annual Report donated by the Police Federation of England and Wales. Subscriptions are the amounts collected by the individual forces through their payroll schemes. Donations are where individuals send monies directly to the Trust. - 18 -
NOTES TO THE FINANCIAL STATEMENTS (contd) 3. INVESTMENT INCOME Unrestricted Restricted Total Total Funds Funds 2013 2012 Dividends - UK equities 1,982-1,982 22,340 Dividends - Overseas equities - - - 164,333 Interest - UK fixed interest - - - 26,933 securities Managed Fund Income- 643,241-643,241 685,389 Interest on cash deposits 1,583-1,583 2,904 646,806-646,806 901,899 4. OTHER INCOMING RESOURCES Unrestricted Restricted Total Total Funds Funds 2012 2011 Management charge 6,001-6,001 6,001 During the year the Trust received 6,001 (2012-6,001) for the provision of management services to the National Police Fund, a related party. 5. ALLOCATION OF SUPPORT COSTS AND OVERHEADS The breakdown of support costs and how these were allocated between Cost of Generating Funds, Charitable Activities and Governance is shown in the table below. Cost Type Basis of Cost of Charitable Governance Total Total Allocation Generating Activities Costs Allocated Allocated Funds Funds 2013 2012 Staff costs Staff time 22,118 103,220 22,118 147,456 197,317 Office costs Staff time 10,397 48,519 10,397 69,313 37,859 Travel costs Staff time 5,248 24,490 5,248 34,986 38,903 Bank charges Staff time 133 620 133 886 1,220 Depreciation Staff time 309 1,443 309 2,061 1,186 38,205 178,292 38,205 254,702 276,485 The total support costs attributable to charitable activities is then apportioned pro rata to the number of grants awarded as shown in the table in note 8. - 19 -
NOTES TO THE FINANCIAL STATEMENTS (contd) 6. COSTS OF GENERATING FUNDS Unrestricted Restricted Total Total Funds Funds 2013 2012 Advertising & publicity 55,753-55,753 47,015 Support costs 38,205-38,205 41,472 93,958-93,958 88,487 7. INVESTMENT MANAGEMENT COSTS Unrestricted Restricted Total Total Funds Funds 2013 2012 Investment management 111,200-111,200 20,038 Depreciation of investment properties 4,600-4,600 4,600 115,800-115,800 24,638 8. GRANTMAKING Unrestricted Restricted Total Total Funds Funds 2013 2012 Grants to individuals: Special purpose grants 838,818-838,818 1,695,122 Children support grants 50,782-50,782 153,136 Support costs 178,292-178,292 193,541 1,067,892-1,067,892 2,041,799 Number of Grants made during the year to individuals: 2013 2012 Assistance, special purpose, education etc 190 584-20 -
NOTES TO THE FINANCIAL STATEMENTS (contd) 9. GOVERNANCE COSTS Unrestricted Restricted Total Total Funds Funds 2013 2012 Legal fees 21,254-21,254 85,250 Audit and accountancy 15,129-15,129 24,258 Professional charges ( inc 457-457 11,275 NCVO in 2012) Support costs 38,205-38,205 41,472 75,045-75,045 162,255 Included within administration charges is 1,607 (2012-970) relating to the cost of Trustee indemnity insurance. 10. TRUSTEES REMUNERATION AND RELATED PARTY TRANSACTIONS 2013 2013 2012 2012 Number Number Trustees expenses 2 24,255 5 25,675 No Trustee received any remuneration during this year or the previous year. Travel and accommodation expenses of 24,255 (2012-29,675) were reimbursed to 2 (2012-5) Trustees. During the year ex-gratia gift of 5,000 was made to Arthur Donaldson for the services provided in the absence of a Chief Executive. No Trustee or other person connected to the Charity had any personal interest in any contract or transaction entered into by the Charity during this year or the previous year. - 21 -
NOTES TO THE FINANCIAL STATEMENTS (contd) 11. STAFF COSTS AND NUMBERS 2013 2012 Salaries and wages 126,329 173,933 Social security costs 16,066 15,148 Pension contributions 5,061 8,236 147,456 197,317 Employees earning over 60,000 during the year were as follows: 85,001-90,000 0 1 The average number of employees during the year was as follows: 2013 2012 Number Number Chief Executive 1 1 Administration and support staff 4 4 12. TAXATION The Trust is a registered charity and accordingly is exempt from taxation on its income and gains where they are applied for charitable purposes. 13. NET (OUTGOING) RESOURCES IS STATED AFTER CHARGING 2013 2012 Depreciation 6,663 5,786 Auditors remuneration: Audit fee 7,245 6,750 Non audit services 7,884 12,536-22 -
NOTES TO THE FINANCIAL STATEMENTS (contd) 14. TANGIBLE FIXED ASSETS Leasehold Computer Furniture Unrestricted Property Equipment & Fittings Total Cost At 1 April 2012 458,345 19,810 9,055 487,210 Additions - 10,351 1,156 11,507 Disposals - - - - At 31 March 2013 458,345 30,161 10,211 498,717 Depreciation At 1 April 2012 41,545 17,126 9,055 67,726 Charge for the year 4,600 1,774 289 6,663 Elimination on disposals - - - - At 31 March 2013 46,145 18,900 9,344 74,389 Net book value At 31 March 2013 412,200 11,261 867 424,328 At 31 March 2012 416,800 2,684-419,484 15. INVESTMENTS Unrestricted Restricted Total Total Funds Funds 2013 2012 Market Value At 1 April 2012 22,618,567-22,618,567 24,204,334 Additions - - - 23,381,053 Disposals (300,000) - (300,000) (24,110,817) Realised net gain/ (loss) 10,983-10,983 (148,659) Investment management (111,199) (111,199) - charges Unrealised net gain/ (loss) 1,540,721-1,540,721 (707,344) on revaluation At 31 March 2013 23,759,072-23,759,072 22,618,567 Investments at market value comprise: UK equities 23,196,773 22,056,268 UK fixed interest securities - - Overseas equities - - Freehold property 562,299 562,299 23,759,072 22,618,567-23 -
NOTES TO THE FINANCIAL STATEMENTS (contd) INVESTMENTS (contd) 2013 2012 Historical cost as at 31 March 22,474,594 22,763,611 The following investments individually make up more than 5% of the portfolio: Barings Targeted Return Fund 98% 16. DEBTORS Unrestricted Restricted Total Total Funds Funds 2013 2012 Other debtors 93,511-93,511 108,768 Prepayments and accrued 322,266-322,266 343,426 income National Police Fund 86,696-86,696 80,695 502,473-502,473 532,889 17. CASH AT BANK AND IN HAND Unrestricted Restricted Total Total Funds Funds 2013 2012 Bank deposit accounts 326,176-326,176 244,817 Cash in hand 500-500 264 Deposit with - - - - stockbrokers 326,676-326,676 245,081 18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Unrestricted Restricted Total Total Funds Funds 2013 2012 Accruals and deferred 13,168-13,168 126,873 income Other creditors 51,455 20,000 71,455 37,677 64,623 20,000 84,623 164,550-24 -
19. FUNDS NOTES TO THE FINANCIAL STATEMENTS (contd) Analysis of fund Balance at Incoming Resources Gains Balance movements 1 April Resources Expended & Losses 31 March b/fwd c/fwd a) General funds 19,651,471 1,077,446 (1,352,695) 1,551,704 20,927,926 b) Designated funds 4,000,000 - - - 4,000,000 c) Restricted fund - - - - - 23,651,471 1,077,446 (1,352,695) 1,551,704 24,927,926 Name of the fund, description, nature and purposes of the fund: a) General funds comprise those funds which the Trustees are free to use in accordance with the charitable objects. b) Designated funds are funds set aside out of general funds by the Trustees for specific purposes of the Trust. It is the policy of the Trust to maintain designated funds at a level, which equates to approximately one to two years of costs to running the Trust. c) Restricted funds are subject to restrictions on their expenditure by the donor. The Home Office grant is a restricted fund and is available to surviving spouses of a police officer who dies as a result of their injuries suffered in the line of duty. Funding by the Home Office in the year has also been made available for the set up of the grant scheme covering legal fees and other related admin costs. At the year end there was a commitment for the Home Office to provide funding for a number of the legal fees already incurred and the funding was received post year end 20. OPERATING LEASE COMMITMENTS The annual amounts payable in respect of operating leases shown below are analysed according to the expiry of the leases. 2013 2012 Expiring: Between one and five years 12,514 2,232 In more than five years - - 12,514 2,232-25 -
21. CONTINGENT ASSETS NOTES TO THE FINANCIAL STATEMENTS (contd) The Charity has attached a number of liens to the special grants awarded to dependants; these expire within 10 years of issue of the grant awarded. 22. RELATED PARTIES The Charity has a very close relationship with the National Police Fund (Registered Charity Number: 207608). The Charity and the National Police Fund share common Trustees and the majority of the Trustees of each Charity are appointed from the same organisations. During the year the Charity charged 6,000 (2012-6,000) for staff costs as an administration re-charge of payroll costs from the Charity for services provided to the National Police Fund. The Charity also charged 1 for rent. The National Police Fund also received a donation in kind, from the Police Dependants Trust, for the rent of premises and use of equipment, the value of which could not be quantified and therefore has not been included in these financial statements. At the year end the Charity was owed 86,696 (2012: 80,695) by the National Police fund. The Charity has a close relationship with The Police Treatment Centres (Registered Charity Number: 220956). During the year Charity donated 250,000 (2012-250,000) to the Police Treatment Centres, which is a related party as Paul Barker is a trustee of both charities. - 26 -
BOARD OF TRUSTEES at 31 March 2013 The Board of Trustees is representative of all parts of the police service and retired officers. An amendment to the Trust Deed has allowed the Commissioner to appoint a proxy member to serve on the Board in his place. The following were members of the Board at 31 March 2013. Paul Barker Police Federation England and Wales Simon Bray Association of Chief Police Officers Graham Cassidy Superintendents Association of England and Wales Arthur Donaldson MBE Retired Police Officers Association (Scotland) Brian Docherty (appointed February 2012) Scottish Police Federation George Graham Association of Chief Police Officers (Scotland) Andrew Marsh (appointed December 2012) Association of Chief Police Officers Terry Spence QPM (Chairman) Police Federation for Northern Ireland Ian Trueman (appointed May 2012) Police Federation of England and Wales Martin Whittle RUC PSNI Benevolent Fund Sandie Wilde MA National Association of Retired Police Officers (England and Wales) The following were members of the Board who resigned during the course of the year to 31 March 2013: Sue Akers (retired September 2012) Metropolitan Police Patricia Gallon (appointed September 2012 and stood down January 2013) Association of Chief Police Officers Martin Richards LLB (retired December 2012) Association of Chief Police Officers This Annual Report was kindly printed by the Police Federation of England and Wales. - 27 -