Tower Hill Trust Trustees' Annual Report And

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TOWER HILL TRUST

TRUSTEES' ANNUAL REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 30`h APRIL 2018 TOWER HILL TRUST

Trustees' Annual Report and Financial Statements for the year ended 30t" April 2018

Contents

Page

Trustees' Report 3-12

Auditors' Report 13-15

Statement of Financial Activities 16

Balance Sheet 17

Statement of Cash Flows 18

Notes to the Financial Statements 19-26

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TRUSTEES' REPORT FOR THE YEAR ENDED 30th APRIL 2018

Reference and Administrative Details

Registered address Oxford House Derbyshire Street London E2 6HG

Trust deed made: 7th February 1938 (subsequently varied by Schemes approved by the Charity Commissioners on 23`d October 1973 and 23`d April 1987)

Registered charity number: 206225

Trustees: Mrs. Susan M. Wood (Chairman)(from 26th July 2017) John R. Polk (Chairman)(until 25th July 2017) Les Chapman Kenneth E. Clunie Major General Geoffrey Field CB CVO OBE (resigned 19th October 2017) Jonathan D. Solomon Mrs. Davina J. Walter

Bankers: National Westminster Bank Liverpool Street Station Branch 216 Bishopsgate London EC2M 4Q6

Solicitors: Wedlake Bell 71 Queen Victoria Street London EC4V 4AY

Auditors: Moore Stephens LLP Chartered Accountants 150 Aldersgate Street London EC1A4AB

Investment managers Newton Investment Management Limited Mellon Financial Centre 160 Queen Victoria Street London EC4V 4LA

Principal Officers: Secretary and Treasurer Roland H. Smith CMG (retired 10th April 2018) Cherry Bushell (from 11th April 2018)

Grant Officer: Elaine Crush

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TRUSTEES' REPORT FOR THE YEAR ENDED 30~h APRIL 2018

Statement of 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 its financial activities for that period. In preparing those financial statements, the Trustees are required to:

a) select suitable accounting policies and then apply them consistently; b) make judgements and estimates that are reasonable and prudent; c) state whether the policies adopted are in accordance with the Charities Act 2011, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), subject to any material departures disclosed and explained in the financial statements; d) prepare the financial statements on going concern basis, unless it is inappropriate to assume that the charity will continue in business.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity, and enable them to ensure that the financial statements comply with relevant legislation. They are also responsible for safeguarding the assets of the Charity, and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities. The Trustees confirm that the accounting policies adopted are in accordance with the Charities Act 2011, and with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The financial statements have been prepared on a going concern basis.

Structure, Governance and Management

The Trust was established as the Tower Hill Improvement Trust in 1938. The original Trust Deed of the Tower Hill Improvement Trust, dated 7th February 1938, was subsequently varied by Schemes approved by the Charity Commissioners on 23~d October 1973 and 23~d April 1987. On the 8th February 2005, the Charity Commissioners made an Order giving the Trustees general authority to amend the Trust Deed of the charity, subject to certain limitations, including the need on some matters to obtain the prior written approval of the Charity Commissioners. This power has been used four times. On the 16'h March 2005, the maximum number of Trustees was increased from five to eight. On the 215 June 2006, with the approval of the Charity Commission, the name of the Trust was changed from Tower Hill Improvement Trust to Tower Hill Trust. Again with the approval of the Charity Commission, on the 14th March 2007, the Trusts area of benefit was enlarged, and now comprises the Tower Hill area and the whole of the London Borough of Tower Hamlets. Finally, on 17th September 2008, the period for which the Chairman is elected by the Trustees was increased from one to three years.

The Charity is governed by a Board of not more than eight Trustees. As at 30th April 2018, there were six Trustees. Major General Geoffrey Field CB CVO OBE resigned during the year and Trustees are grateful for his service and contribution over many years. Trustees are also thankful to John Polk for his Chairmanship and he is succeeded by Susan Wood for a term of three years. New Trustees are appointed by the existing Board of Trustees, and are invited to serve for as long as they feel they can commit. In recruiting, choosing and appointing new Trustees, the Trustees seek to ensure that the Board as a whole contains a suitable balance of experience, expertise, and knowledge of the Trusts area of benefit. Before new Trustees are appointed, they are provided with documentation about the Trust, and are invited to meet the existing Trustees and to familiarise themselves with the work of the Trust. Trustees are encouraged to attend relevant courses and seminars in order to improve their knowledge of charity law and of good practice. The Board meets quarterly (or more frequently as required) to discuss Trust matters, and to consider applications for grants.

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TRUSTEES' REPORT FOR THE YEAR ENDED 30th APRIL 2018(Continued)

The Trust's office is located at Oxford House, Derbyshire Street, Bethnal Green. The Trust shares its office with the Wakefield &Tetley Trust. This office is staffed by a part-time Secretary and Treasurer and a part- time Grant Officer. Roland Smith retired as Secretary and Treasurer on 10th April and Trustees are grateful for his thirteen years of service to the Trust. He was succeeded by Cherry Bushell on 11th April and Elaine Crush remains as Grants Officer. Both members of staff are actually employed and paid by the Wakefield & Tetley Trust, and a service charge is paid to the Wakefield &Tetley Trust for the provision of staff and services. The Secretary and Treasurer is responsible for administration and book-keeping. The Grant Officer is charged with keeping up-to-date with local charitable activity and funding needs, providing satisfactory information to support applications to the Trustees, and with monitoring the expenditure of grants by beneficiaries. Staff are responsible for all day-to-day matters, and for making recommendations to the Trustees, but all significant decisions are taken by the Board of Trustees.

Objectives and Activities for the Public Benefit

The Trustees confirm that they have referred to the Charity Commission's general guidance on public benefit when reviewing the Trusts aims and objectives, and in planning future activities. The Trust's objectives are to use Trust income for the promotion of charitable purposes for the general benefit of the inhabitants in the Trust's area of operation in any or all of the following ways:

i) The provision of gardens and open spaces for the general benefit of the inhabitants; ii) The provision and support of facilities for recreation and leisure-time occupation; iii) The provision and support of educational facilities; iv) The relief of the aged, handicapped and poor.

These objects are listed in the order of priority determined by the Trustees. The Trust seeks to do these things not by giving money to individuals or by carrying out programmes of its own, but by making grants to registered charities and other bodies for activities and projects which in the view of the Trustees will help to advance the objects. In making grants, the Trust always looks at the question of who will be the ultimate beneficiaries, and what will be the benefit to them. The Trustees insist that all activities or projects must be open to anyone who qualifies as a potential beneficiary, and that people in poverty are not excluded from the opportunity to benefit.

The chief restriction on the Trusts grant-making is geographical. The guidance on public benefit published by the Charity Commission recognises that: "it is generally reasonable for a charity's aims to be intended to benefit people living in a particular geographical area, such as a village, town, city, county or country". The Trust's area of benefit comprises the area of Great Tower Hill, Tower Hill and the London Borough of Tower Hamlets. The Trustees particularly welcome proposals for equipment or capital costs, and proposals having a link with the Trusts original area of benefit, i.e. the area around Tower Hill, and the former St Katharine's ward in the borough of Tower Hamlets.

The public benefit of funding by the Trust is measured against the achievements of the organisations and projects that are funded. Grant recipients are required to provide regular or one-off progress reports, depending on the nature of the project and the size of grant awarded. The monitoring process aims to be `light touch', and there is no formal monitoring or evaluation form to complete, since organisations and projects can struggle under the burden of monitoring requirements.

Grant recipients can devise their own reports, and may submit information that has been prepared for another funder if this is appropriate (many of the Trusts grants are contributions to projects also supported by one or several other donors). Recipients are asked to reflect on the progress that they have made in relation to the aims, objectives and outcomes which they identified at the beginning of a project, and any learning that has taken place.

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TRUSTEES' REPORT FOR THE YEAR ENDED 30t" APRIL 2018(Continued)

The Trusts income is derived partly from an investment portfolio managed by Newton Investment Management Limited, and partly from the head rent of the Tower Hill Wine Vaults, of which the Trust owns the freehold.

Achievements and Performance

The Trust aims to maintain a high level of grant-giving, while ensuring that funds are available when needed for new projects, that reserves are maintained to generate income for the future, and that adequate funds are available for the proper administration of the charity. During 2017-18, the Trust awarded £220,672 under its Main Grant Programme, and a further £30,000 to top-up a Bio-diversity Small Grant Programme. A total of £171,004 was actually paid out during the year to grant recipients. A considerable proportion of the amount paid out in grants during the year reflected the continuation of grants awarded in previous years. Similarly, a considerable proportion of grants awarded in 2017-18 will actually be paid out in subsequent years. The Trustees have decided that grants payable should be charged in the year when they are awarded, irrespective of when they are paid, as Trustees regard them as financial obligations. For this reason, the amount shown in the Statement of Financial Activities under charitable activities does not represent the grants actually paid in 2017-18, but the grants awarded during the year. Details of both grants paid and grants awarded during the year are contained in note 13.

In 2017-18, a total of 32 Main Programme applications were received, of these 23 were awarded grants (a success rate of 70°/o, which compares very favourably with other charitable trusts). Of the 23 grants awarded, 7 were to recipients whom the Trust had not previously assisted. The majority of projects met two or more of the Trusts priorities. The development and 'provision of gardens and open spaces' across the London Borough of Tower Hamlets is the main priority of the Trust, and when considering the principal purpose of each grant we can see that of the total awarded in the year, 40% was targeted at this priority. Of the remaining grants, 40% was awarded to support 'facilities for recreation and leisure' 8°/o focused on the provision and support of `educational facilities' and 8% focused on `the relief of poverty'. 70% of all projects also benefited people who are in poverty or disadvantaged due to homelessness, ill health and /or disability.

Grants that were awarded during the year included the following:

All Hallows by the Tower Church: £20,000 towards capital works to upgrade the first-floor hall (Porch Room) and kitchen, creating a new office and increasing the availability of facilities to community groups and charities working and meeting in the Tower Hill area.

Cavlev Primary School: £4,106 to purchase equipment to allow pupils to study wildlife, and help to enhance the science curriculum at the school.

Duke of Edinburgh's Award Scheme: £8,500 to expand the Award Scheme in schools with low participation, and to deliver the Award in non-participating schools. The expansion should enable around 200 young people to take part in their Doff Award and earn the benefits of undertaking volunteering, physical activity, learning a new skill and taking part in an outdoor expedition. The grant will also provide expedition equipment for the Urban Adventure Base; more young people than ever before are taking part in Doff in Tower Hamlets and the majority are not from families who could afford expedition gear.

Friends of Arnold Circus: £9,000 over one year to employ a part time gardener for Arnold Circus from September 2017. In addition to the upkeep of the gardens around Arnold Circus, the gardener engages and organises volunteers on a regular basis throughout the year, creates an interest in gardening, gives advice and trains others in gardening skills, and provides assistance to gardening projects in nearby courtyards.

Globe Community Food Garden: £1,125 to support the "Growing Together" project, to extend this gardening group's membership, provide training, and raise the community garden's profile amongst local people. TOWER HILL TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 30~h APRIL 2018(Continued)

Ninth Tower Hamlets Scout Group: £4,500 towards the purchase of a fleet of kayaks and related equipment for the Scout Group to extend the programme on offer to young people; enabling qualified volunteers to take them out on the canals and rivers in London.

Spitalfields City Farm: £7,900 towards the construction of a new timber building to serve as a farm shed and shop.

St Peter's Community Wellbeing Project: £2,500 to support the St. Peters Women's Community Gardening Club, offering a safe and secure environment where at least 45 local women aged 50+ can actively take part in community gardening activities, meet their neighbours, and relax without fear of intimidation.

Thames 21: £12,000 match funding towards the installation of further 280 metres of floating reed beds into the Lea Navigation and Limehouse Cut. Following the successes of the Tower Hill Trust funded reed beds; Thames21 has been awarded funding by the Greater London Authority and Environment Agency to extend the beds. Research conducted by Thames21 has shown that the water quality of the canal is poor, and it suffers from eutrophication, where the levels of nutrients from pollutants allow an excessive growth of weed, which covers the surface of the affecting the vegetation below. This waterway also suffers from fish deaths due to pollutants, and there is a distinct lack of vegetation above the water meaning a lack of habitats for wildlife as well as a poor visual amenity value. Reed beds are important habitats for wildlife; they aesthetically improve areas and break down pollutants within a watercourse. This new reed bed will be installed using local volunteers, who will also be offered free accredited training to safely maintain the reed bed in the future.

Whitechapel Mission: £6,000 to support the work of the daycentre, which has witnessed a 30% rise in the numbers of homeless people looking for a hot meal and a shower each morning; 5,332 different people used the Mission's services last year.

Biodiversity Grant Programme The Trust established this new Small Grant Programme in 2016, working in partnership with the Biodiversity Officer at Tower Hamlets Council. The Biodiversity Programme awards grants from £100 to £2,000 to fund biodiversity enhancements by schools and community groups in school grounds, around housing estates or in community gardens. Projects must directly contribute to objectives and targets in the Tower Hamlets Local Biodiversity Action Plan. During the year, fifteen grants were awarded totalling £18,740. Grants awarded during the year included: Consortium 50: £800 to support the Burcham Street Gardeners (a social group for adults experiencing loneliness and isolation) to reinstate a pond and develop a wildlife garden.

Lower Regents Coalition: £2,000 towards bio-diversity improvements on the Lower Regents Canal, to include the purchase and planting of wildflower seeds, bulbs and shrubs, and refreshments/ travel expenses for volunteer events.

Poglar HARCA: £1,800 to support bio-diversity improvements on the Teviot Estate, specifically towards the planting of mixed native hedgerows and the installation of nest boxes.

St Luke's Primary School: £2,000 to fund bio-diversity improvements in the school garden, to include nest boxes, bat boxes, bulbs, seeds and hedging plants.

St Paul's Shadwell: £750 to plant native bulbs, wildflowers and perennial plants in a corner of the churchyard and hold workshops for young people.

Patriot Square and Mayfield Tenants and Residents Association: £1,500 to support the development of a 'green corridor' of trees and planting on the estate.

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TRUSTEES' REPORT FOR THE YEAR ENDED 30~h APRIL 2018 (Continued)

Yarling West Tenants and Residents Association: £2,000 to support the installation of nest boxes, raised beds and bio-diverse planting on the estate and in the gardens of the community centre.

Grants that were spent during the year included:

Friends of Tower Hamlets Cemetery Park (FOTHCP): £20,000 was awarded to upgrade and enhance facilities within Tower Hamlets Cemetery Park and associated land at Cantrell Road and Ackroyd Drive, including interpretation boards and a heritage trail leaflet. FOTHCP is an award-winning charity; however, park infrastructure has become dated in recent years and the project also aimed to address concerns that were raised following a recent Green Flag visit. The grant helped to significantly improve visitors' experience of the park. Three new interpretation boards were designed and installed, each with a separate theme covering Heritage, Woodlands and the Meadows of THCP. All existing 13 metal wayfinding totems and entrance signs were also updated with maps, location information and contact/visitor information. Three new metal bins have been installed and planting has been enhanced at the entrance nearest Knapp Road/ Cantrell Road. Tree surgery was also carried out in the winter to enhance light levels onto the meadows along Ackroyd Drive Greenlink. To prevent visitors and school children slipping on the dipping platform around the educational pond, outside the Soanes Centre classroom, a gripper rod was added into the grooves of the decking. Planters are also due to be installed either side of the main gates on Southern Grove in 2018, these will be built with the support of horticulture well-being group 'Ecotherapy'.

Spitalfields Crypt Trust: £5,000 was awarded to purchase materials and equipment for the Gardening and Horticultural Course at St Leonards Church, Shoreditch, targeted at people recovering from drug and alcohol additions and those experiencing homelessness. As well as maintaining the gardens for public benefit, the course helps students to increase their self-worth and feel positive about themselves and what they can achieve. Benefits include the development of practical skills, outdoor exercise, making new friends and teamwork. Around 60% of participants have never worked, and most have experience of poverty and extreme isolation. Last year 21 students benefited from the course, which provides a safe space to learn, work in a team, rebuild relationships and gain work experience.

SSAFA: The Trust contributed £10,000 towards £100,000 of emergency grants made by the East London Division in 2017. The fund provides emergency support for ex-service personnel in need, and the grant from the Tower Hill Trust is used to top this up or meet emergency needs that cannot be supported through military benevolent funds. The Division has seen increased demand in recent years; in addition, the profile of veterans requiring assistance has changed. In 2006, 99% of cases were WW2 Veterans and dependents; these Veterans have now fallen below 50% of the total workload. Veterans now tend to be single and often face issues such as alcohol &drug dependency, PTSD, anxiety attacks, and mental disorders. The bulk of the support is provided to homeless Veterans, who, for a variety of reasons, are living life on the streets. SSAFA now works closely with the Queen Victoria Seamen's Rest hostel in East India Dock Road, to place and provide ongoing support to residents, and they have recently set up a monthly advice surgery in the hostel.

Trees for Cities: £10,000 was awarded towards the development of two "Edible Playgrounds" in Marner Primary School and Cubitt Town Junior School, transforming the schools' grounds, and creating food- growing and outdoor learning resources for teachers to run fun and engaging lessons across the school curriculum.

Marner Primary School is a much larger than average school which caters to over 700 pupils of ages 3-11 (including nursery). Over 50°/o of the school's pupils are eligible for the Pupil Premium, which is double the national average and the school is located less than 120 metres from the busy and heavily polluted Al2 road in East London. The school is surrounded by high-rise flats, and the original outdoor spaces were dominated by concrete. A small afterschool gardening club had been running at the back of the playground in a wildlife area, however, this was too small to benefit the entire school and parts of it were completely overgrown with brambles and weeds, making it difficult for teachers to supervise children. Cubitt Town Junior School is located on the Isle of Dogs, with nearly 400 pupils, many who come from homes where support for their

r~ TOWER HILL TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 30th APRIL 2018 (Continued) learning is limited by resources, space, parental experience and language. The school has a larger than average outside area, which was poorly utilised before this project.

Both Edible Playgrounds were designed in collaboration with the school community and based on re- occurring patterns in nature, such as hexagons and octagons. Beautiful `honeycomb' archways have been installed to connect the variously sized raised beds and support climbing plants whilst introducing extra colour and depth into the spaces. The Edible Playgrounds accommodate around 30 pupils at a time, who are able to comfortably sit on the edge of the raised oak beds during lessons. Whiteboards have also been installed to aid teaching. New greenhouses allow pupils to grow fruit and vegetables from seed year-round. With the use of the compost bins and wormery, children will also be able to learn about the complete food growing and waste cycle, and be inspired to think about the wider environment and how their individual contribution to recycle or compost waste can make huge difference. Teachers and pupils have been receiving support from the Edible Playgrounds team this growing season to raise teachers' skills and confidence levels and ensure they are able to teach a variety of subjects such as Science, Maths, English and DT. The most popular lessons held outside in the Edible Playground are: Maths and Science (100%) followed by Literacy and Art(93%) and DT (77%).

Schools have also reported that their Edible Playground has had the following impacts: 69% say it has assisted their work with SEN children or those with challenging behaviour; 100% report it has had a moderate/significant impact on knowledge of where food comes from; 92% report it has had a moderate/significant impact on a child's willingness to try new fruit and vegetables and 92% rate a moderate/significant impact on knowledge of the natural world (84% positive impact on science in particular).

Tower Hamlets Council Green Team: Match funding of £11,000 was awarded to significantly improve the bio-diversity of Wapping Canal. Funding enabled the installation of rafts with wetland vegetation to enhance wildlife habitats, visual appearance and water quality. A total of 55 rafts, each 4 x 2 metres in area, were installed in March 2018. Most of the rafts were placed along the southern edge of the canal at Spirit Quay, between Vaughan Way and the steps opposite the divergence of the two branches of the canal, a distance of about 200 metres. Further rafts were installed around the Tobacco Dock area to extend and supplement the planting from 2016.

High quality BioHaven floating islands were used, planted with a mix of native wetland vegetation. The vegetation is now well established on most of the rafts; along Spirit Quay they already give the impression of a continuous green edge to the otherwise stark canal. The flowers of purple loosestrife adding colour. Earlier in the spring, yellow iris and marsh marigold also flowered. Moorhens, Coots and Canada Geese have all nested on the new rafts, and they are used for resting by these species and Mallards.

Educational Bursaries

During 2017-18 the Trust funded two bursaries for pupils from Tower Hamlets at the City of London School for Girls, and a total of £16,381 was spent during the year. Two further bursaries were also awarded during the year, one a full seven year bursary and the other being for two years of sixth form only, both for pupils resident in the London Borough of Tower Hamlets.

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TRUSTEES' REPORT FOR THE YEAR ENDED 30th APRIL 2018 (Continued)

Financial Review

The Trustees' investment policy aims to provide revenue for the current purposes of the Trust, and to enhance income and capital growth over the longer term, thereby enabling the Trust to meet its current and future objectives. The Trusts assets consist of one freehold property, the Tower Hill Wine Vaults, and investments currently managed by Newton Investment Management Limited. The Wine Vaults were originally acquired because of the Trusts overall interest in the Tower Hill area, but are now a commercial investment, let on a lease of 150 years (from 1991). The investment in the property is justified both by the return which it provides and by the contribution which it makes to the Trusts objectives.

The headlease is held by the Fishmongers' Company, one of the Great Twelve Livery Companies of the City of London, with whom the Trust has established a good co-operative relationship.

Income from the Wine Vaults has been stable. The property was revalued by Lambert Smith Hampton in January 2017, at £2,070,000. It is shown at that valuation in the accounts.

In respect of the investment portfolio, the Trustees have adopted a total return approach. They set the annual grants budget based on a sustainable withdrawal, taking into account current market conditions and advice from the investment manager. The Trustees recognise that inflation is a key risk to the long term sustainability of the Trust, and accordingly the investment assets need to be invested to mitigate this risk over the longer term. The Trustees understand that this is likely to mean that investment will be concentrated in real assets and that the capital value will fluctuate. The Trustees are able to tolerate volatility of the capital value of the investment portfolio, as long as the Trust is able to meet its short term grant-making commitments through either income or liquid capital assets. The Trustees have considered matters of ethical and socially responsible investing, and place no particular restrictions on their investment manager. The Trusts investments are managed by Newton Investment Management Limited. The Trustees would like to thank Newton Investment Management for its work for the Trust over the year. Review meetings are held with Newton Investment Management once a year. At present, all the investments are in the Global Growth and Income Fund for Charities, which is a pooled managed fund for charities. The portfolio produced income totalling £145,158 during the year, and its value stood at £5,502,220 at the end of the year.

Other Assets

A plot of land close to Tower Hill underground station with the property title number LN15711 is vested in the Official Custodian for Charities on behalf of Tower Hill Trust. It is valued at a nominal figure of £1,000.

Reserves Policy

The Trust holds reserves, in the form of tangible assets and investments, in order to produce income which can be used, after payment of management expenses, for grant-giving. The Trust aims to sustain and increase its grant-making capability over the long term. At the year end the free reserves of the Trust (unrestricted reserves less fixed assets) amounted to £275,395.

At the same time, if and when particular needs arise, the Trustees are prepared if appropriate to draw on the Trusts reserves in order to contribute to the financing of particular special projects. The financial position of the Trust is such that all future plans and commitments can be carried out, and the Trust will be able to fulfil its charitable obligations.

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TRUSTEES' REPORT FOR THE YEAR ENDED 30~h APRIL 2018 (Continued)

Risks and Uncertainties

The Trustees have assessed the major risks to which the Trust is exposed, particularly those relating to the operations and finances of the Trust, and are satisfied in general that systems are in place to protect its grant- making activities and to guard against the possibility of fraud. The Trustees review the Risk Assessment annually. The financial risks to the Trust are assessed as low, since the Trust has large and diversified endowments which produce a secure and regular income, while most of the Trusts expenditure is on grants, and can therefore be relatively easily and quickly adjusted if at any time there is a reduction in income. However, like any grant-giving charity, the Trust has to face the possible risk of fraud, and the risk that grants might be used for purposes outside the Trusts objects. Procedures are in place to guard against these risks so far as possible, and the Trust is not aware of any actual cases in recent years of fraud or of inappropriate use of the Trusts grants.

Having only two staff, both actually employed by the Wakefield &Tetley Trust (www.wakefieldtrust.orq.uk), the Trust is inevitably always at risk of losing key skills and experience when staff leave. The Trust consults closely with the Wakefield &Tetley Trust on staff matters and there is a longstanding association between the two Trusts. Staff are encouraged to give as much notice as they can before leaving, and the Trustees have agreed with the Trustees of the Wakefield &Tetley Trust that where possible, new appointments will be made in time to allow ahand-over of responsibilities. The Trustees also insist that good records are kept, particularly in relation to the awarding of grants, so that new staff can easily familiarise themselves with all matters.

There is also a risk that, if the Trust's office were to suffer any kind of disaster, vital information might be lost. To reduce this risk, cloud-based storage is now used for all information, and the Trust has ensured electronic storage of all the information in its archives.

Plans for Future Periods

The Trust aims in the future, income permitting, to maintain the level of its grant-giving; at least to maintain the level of its reserves in real terms; and to continue to engage with charities, schools, community groups and other organisations working in its area of benefit, in order to ensure that its grants are as well-directed as possible.

For 2018-19, the budget for grant-making has been set at £178,748. In order to deal sensibly and coherently with grant applications, the Trust has developed focused grant priorities and criteria for funding. These priorities and criteria will be kept under review, and will be used in assessing grant applications during the coming year.

In addition, discussions with Tower Hamlets Council, Historic Royal Palaces, the Fishmongers' Company, All Hallows Church, and the Tower Hill Management Group, has led to an agreement for the enhancement of Tower Hill Terrace, an area of land above the Wine Vaults and located between All Hallows Church, a grade 1 listed building, and the Tower of London, a World Heritage Site. All parties have supported the London Borough of Tower Hamlets, which owns the freehold of this area, with a proposal aimed at transforming the Terrace into a pleasant and attractive garden space which will be used and appreciated by visitors to the Tower Hill area and will enhance the overall Tower Hill environment for all to enjoy. This will be an exciting development for the public space in Tower Hill, where the numbers of tourist visitors and local office workers continues to grow each year. The Trust has agreed to contribute towards the realisation of this objective the amount of £290,000 which will be taken from the Trusts reserves during 2018-19 rather than from the regular grants budget, in order to avoid any impact on normal grant-giving.

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TRUSTEES' REPORT FOR THE YEAR ENDED 30`h APRIL 2018(Continued)

The Trust holds in trust a contribution of £30,000 from the Tower Hill Management Group to the project and this contribution will also be passed to Tower Hamlets Council during 2018-19 prior to works to be commissioned.

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

~,/a~ .

Chairman Trustee

12 Independent Auditor's Report to the Trustees of Tower Hill Trust

Opinion

We have audited the financial statements of Tower Hill Trust (the `charity') for the year ended 30 April 2018 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"(United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charity's affairs as at 30 April 2018 and of its incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our 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 audit opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in which the ISAs (UK) require us to report to you where:

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate, or

• the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. 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.

13 Independent Auditor's Report to the Trustees of Tower Hill Trust (continued)

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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 in the Trustees' Annual Report is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• 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.

Responsibilities of trustees

As explained more fully in the trustees' responsibilities Statement set out on page 4, the trustees 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity 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 Financial Reporting Councils website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

14 Independent Auditor's Report to the Trustees of Tower Hill Trust (continued)

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 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 it's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

~OOr~ S}aph~n~ ~~-P

Philip Clark, Senior Statutory Auditor

For and on behalf of Moore Stephens LLP, Statutory Auditor

Moore Stephens LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 150 Aldersgate Street London EC1 A 4A6

Date: 2b tJO.lv`nb~r :2~~~

15 Tower Hill Trust

Statement of Financial Activities For the year ended 30~h April 2018

Unrestricted Funds

Note 2018 2017 £ £

Income from:

Investment income 3a 254,889 242,574 Other income 3b 30,000 -

Total Income 284,889 242,574

Expenditure on:

Charitable activities 4 278,226 207,118

Total Expenditure 278,226 207,118

Net income before net gains on investments 6,663 35,456

Gains /(losses) on investments 7 293,654 1,454,232

Net Income /(Expenditure) for the year 300,317 1,489,688

Reconciliation of Funds

Unrestricted Funds at 15t May 2017 7,547,298 6,057,610

Unrestricted Funds at 30th April 2018 7,847,615 7,547,298

The notes on pages 19 to 26 form part of these financial statements.

The charity's activities are all of a continuing nature.

16 Tower Hill Trust

Balance Sheet - 30th April 2018

Note 2018 2017 £ £ £ £ Fixed Assets

Tangible assets 8 2,070,000 2,070,000 Investments 9 5,502,220 5,208,566

7,572,220 7,278,566

Current Assets

Bank accounts 150,511 93,969 COIF deposit account 253,937 253,335 Other Debtors 49,129 30,995

453,577 378,299

Less: Creditors -amounts falling due within one year 10 (108,010) (92,854)

Net Current Assets 345,567 285,445

Total Assets less Current Liabilities 7,917,787 7,564,011

Less: Creditors -amounts falling due after more than one year 10 (70,172) (16,713)

7,847,615 7,547,298

Capital Employed Fixed asset fund 7,572,220 7,278,566 Free reserves

Total unrestricted funds 11 7,847,615 7,547,298

The financial statements were approved by the Trustees on ~ ~~~~~ ~~2018 and signed on their behalf by

~~"~ John R. Polk ) Trustees Susan Wood )

The notes on pages 19 to 26 form part of these financial statements.

17 Tower Hill Trust

Statement of cash flows for the year ended 30 April 2018

2018 2017

Cash flows from operating activities Net cash provided by /(used in) operating activities 57,144 19,523

Cash flows from investing activities Purchase of tangible fixed assets

Change in cash and cash equivalents in the reporting period 57,144 19,523

Cash and cash equivalents at the beginning of the reporting period 347,304 327,781 Cash and cash equivalents at the end of the reporting period 404,448 347,304

Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income for the reporting period 300,317 1,489,688

Adjustments for: Gains / (losses) on investments (293,654) (1,454,232) (Increase) in debtors (18,134) (9,529) Increase/(Decrease) in creditors 68,615 (6,404)

Net cash provided by /(used in) operating activities 57,144 19,523

18 Tower Hill Trust

Financial Statements for the year ended 30t" April 2018

Notes

Background Information

The Tower Hill Trust is an unincorporated charity registered under number 206225 with the Charities Commission in England and Wales. It is a public benefit entity, it is domiciled in England and Wales and its principal office is at Oxford House, Derbyshire Street, London E26HG.

The object of the charity is the benefit of people in the area of Great Tower Hill, Tower Hill and the London Borough of Tower Hamlets, through the provision of gardens and open spaces, support of education, recreation and leisure facilities, and the relief of the aged handicapped and poor.

Accounting Policies

These financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies selected for use by the Charity. Use of available information and application of judgement are inherent in the formation of estimates. Actual outcomes in the future could differ from such estimates.

The charity meets the definition of a public benefit entity as defined by FRS 102.

The particular accounting policies adopted, which have been applied consistently in the current year and prior year, are described below.

(a) Investment properties and investments

Investments and investment properties are included in the financial statements at market value at the balance sheet date, and the realised and unrealised gains or losses are taken to the Statement of Financial Activities.

(b) Depreciation

Depreciation of fixed assets, other than the freehold investment property is calculated to write off the cost of the assets over their estimated useful lives as follows:-

Office furniture and equipment - 15% of written down value per annum.

Interest and dividends, including associated tax credits where recoverable, are included in the financial statements when they are due.

19 Tower Hill Trust

Financial Statements for the year ended 30th April 2018

Notes (Continued)

(d) Donations receivable

Donations are credited to the Statement of Financial Activities when received or when the amount is probable and can be quantified with reasonable accuracy, if earlier.

(e) Rent receivable

Rent receivable is included in the financial statements on the basis of the amounts receivable within the Trust's accounting period.

(f) Grants payable

Grants to beneficiaries are charged on the date approved by the Trustees or on the date of the requirements of the grant being met, if later.

(g) Management and administration costs

Management and administration costs are included in the financial statements on the accruals basis.

(h) Going concern

The Trustees have considered the financial position and resources of the charity for the foreseeable future. Given the charity's net assets position and expected net incoming resources, the Trustees deem that the charity will be able to meet its future obligations as they fall due. Therefore, the Trustees have concluded that the going concern basis of accounting continues to be appropriate.

(i) Financial instruments

The financial instruments held by the charity are investments, debtors and creditors. These are categorised as `basic' in accordance with Section 11 of FRS 102 and are initially recognised at transaction price. Investments are subsequently measured at fair value, based upon market price, and changes in fair value recognised in the Statement of Financial Activities. Other financial instruments are subsequently measured at their transaction price less any impairment.

(j) Critical judgements and estimates

The property is carried at valuation and as such this is only an estimate of the value of this property.

No other critical judgements or estimates have been made by the Trustees in applying the charity's accounting policies.

20 Tower Hill Trust

Financial Statements for the year ended 30th April 2018

Notes (Continued)

3. Income a)Investment income 2018 2017 £ £

Rent receivable from investment properties 109,129 90,995 Dividends received 145,158 150,601 Other interest received 602 978

254,889 242,574

b)Other income The Trust holds in trust a £30,000 contribution from the Tower Hill Management Group to the future Tower Hill Terrace refurbishment project. The contribution will be passed to Tower Hamlets Council during 2018-19.

4 Expenditure —charitable activities 2018 2017 £ £

Total grant expenditure 250,672 163,284 Grants revised /withdrawn (10,753) - Costs of charitable activities 19,157 18,022 Management and administration 19,150 25,812

Total charitable activities 278,226 207,118

The total office expenditure amounted to £28,593 (2017: £26,898), this balance was split into 67% for 'Costs of charitable activities' - £19,157 (2017: £18,022)and 33% for `Management charges' - £9,436 (2017: £8,876).

5 Management and Administration 2018 2017 £ £

Management charges 9,436 8,876 Office expenses (see below) 1,998 4,278 Audit and accountancy fees 7,380 7,042 Legal and professional (Note 6) 336 5,616

19,150 25,812

Included as office expenses is the following expenditure: 2018 2017 £ £

Bank charges 66 90 Travel, entertainment, lunches and conferences 1,907 1,779 Other expenditure 25 2.409

~ ,yyti 4,~ ~tf

21 Tower Hill Trust

Financial Statements for the year ended 30th April 2018

Notes (Continued)

6. Legal and Professional Expenses 2018 2017 £ £

Solicitor's fees 336 2,016 Surveyor's Fees - 3,600

336 5,616

7. Gains /(Losses) on Investments 2018 2017 £ £

Net gains / (losses) on revaluation of investments 293,654 641,314 Net gains on revaluation of investment property - 812,918

293,654 1,454,232

8. Tangible Fixed Assets Freehold UK Fixtures Investment Fittings and Property Equipment Total £ £ £ CosWaluation At 1St May 2017 2,070,000 3,281 2,073,281 Additions - - - Revaluation - - -

At 30~h April 2018 2,070,000 3,281 2,073,281

Depreciation At 1 St May 2017 and 30th April 2018 - (3,281) (3,281)

Net book value At 30th April 2018 2,070,000 - 2,070,000

At 30th April 2017 2,070,000 - 2,070,000

The Trusts principal freehold investment property was re-valued at 17 October 2016 by Lambert Smith Hampton, external valuers, in accordance with the Royal Institution of Chartered Surveyors Valuation —Professional Standards UK January 2014 (revised April 2015), also known as the 'Red Book'. The historical cost of the freehold UK investment property is £257,608(2017 - £257,608).

22 Tower Hill Trust

Financial Statements for the year ended 30~h April 2018

Notes (Continued)

9. Investments Market Value Market Value at at 1St May Additions Disposals Net gains on 30th April 2017 During Year During Year Revaluation 2018 £ £ £ £ £

5,208,566 - - 293,654 5,502,220

The net profits on revaluation comprise all increases and decreases in the market value of the investments held at any time during the year, including profits and losses realised on the sale of investments during the year. The historical cost of quoted investments held at the year-end is £3,890,881 (2017 - £3,890,881).

Investments comprise:

Newton Global Growth &Income Fund for Charities 5,502,220

10. Creditors: amounts falling due within one year 2018 2017 £ £

Grants payable 102,060 86,604 Accruals 5,950 6,250

108,010 92,854

Creditors: amounts falling due after more than one year

Grants payable 70,172 16,713

70,172 16,713

23 Tower Hill Trust

Financial Statements for the year ended 30th April 2018

Notes (Continued)

11 Reconciliation of Funds

2018 2017

Unrestricted as at 1St May 2017 7,547,298 6,057,610 Net income 300,317 1,489,688

Unrestricted as at 30 April 2018 7,847,615 7,547, 298

12. Reimbursed Expenses/Trustees' Remuneration

Nil expenses were reimbursed to the Trustees. The Trustees received no remuneration for the year, (2017 - £nil).

24 TOWER HILL TRUST Financial Statements for the year ended 30`h April 2018

Notes

1 3. Grants Payable

Committed at 1st May Revised or Committed at 30 Grantee Name Awarded in the Year paid in the Year 2017 Withdrawn April 2018

Cit of London School for Girls -Bursaries 31,401.00 82,728.00 - 16,381.00 97,748.00 Biodiversit Small Grants Scheme 9,713.00 30,000.00 6,363.00 20,740.00 2,897.00 Oxford House in Bethnal Green 9,210.00 - - - 9,210.00 Tower Hamlets Council -Green Team 7,000.00 4,000.00 - 11,000.00 - SPLASH Pla 8,000.00 - - - 8,000.00 The Ro al London Societ for Blind Peo le 3,500.00 - - 3,500.00 - Bromle B Bow Centre 10,400.00 - - 10,400 - Ci of London School for Girls 800.00 - - - 800.00 Irene Ta for Trust 4,000.00 - - 4,000.00 - Look Ahead Housin 483.00 - 483.00 - - Rachel Keelin Nurse 2,560.00 - - 2,560.00 - Shadwell Communi Pro'ect 9,500.00 - - - 9,500.00 St Katherine's Trust 4,750.00 - - 4,750.00 - Ninth Tower Hamlets Scout Grou 2,000.00 - 2,000 - - Ca le Prima School - 4,106.00 4,106.00 - Connau ht O era - 1,100.00 1,100.00 - Globe Communi Food Garden - 1,500.00 375.00 1,125.00 - Half Moon Theatre - 1,872.00 1,872.00 - Ocean Youth Connections - 2,500.00 2,500.00 - SirJohn Cass Seconda School - 1,300.00 1,300.00 - -

St St

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Duke Duke

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Nei Nei

SAFA SAFA

t t

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t t

aliance aliance

riends riends

inth inth

Peters Peters Paul's Paul's Katherine's Katherine's

italfields italfields

Hallows Hallows

hbours hbours

rants rants

of of

Tower Tower

Arts

Central, Central,

of of

Edinbur Edinbur

Communit Communit Communit Communit

Church Church

Communit Communit

el el

Arnold Arnold

withdrawn withdrawn

C C

Ci Ci

b b

in in

Hamlets Hamlets

Mission

Trust

Po Po

the the

Farm

t t

Cit Cit

Shadwell

h's h's

Trust

Circus

Tower Tower

lar

arise arise

, ,

Award Award

Sorts Sorts Sorts Sorts

Scout Scout

NE NE

Wellbein Wellbein

from from

Church

Division

Scheme

Grou

Association Association

projects projects

Pro'ects

not not

going going

ahead, ahead,

or or

where where

the the

funding funding

required required

03,317.00 03,317.00

is is

less less

- -

than than

originally originally

250,672.00 250,672.00

envisaged. envisaged.

20,000.00

12,000.00

10,000.00

6,000.00

8,000.00

8,500.00

6,864.00

4,500.00

8,132.00

2,500.00

2,340.00 6,230.00

5,000.00

9,000.00

1,500.00

Grants Grants

may may

also also

(10,753.00) (10,753.00)

be be

232.00

withdrawn withdrawn

if if

the the

conditions conditions

(171,004.32) (171,004.32)

20,000.00

12,000.00

8,500.00

4,500.00

5,000.00

2,500.00

4,500.00

2,340.00 6,230.00

7,900.00

5,000.00

4,500.00 2,500.00

1,500.00

of of

the the

grant grant

are are

not not

met.

172,231.68

6,000.00

8,000.00

6,864.00

4,000.00

5,000.00

4,500.00

- -