1o99q-1-1 3iAar~s No 2 ACCOUNTS 2 3 MAY 2006 RECEIVED BY POST TEAM, COMPLIANCE DIVISION Cornwall Community Foundation Trustees' report and financial statements For the year ended 31 December 2005 Charity registration number 1099977 Company registration number 4816191 Contents Legal and administrative details Report of the Board of Trustees Chairman's review Independent auditors' report Statement of financial activities Balance sheet Notes to the accounts Cornwall Community Foundation Report of the Board of Trustees For the year ended 31 December 2005 Legal and Administrative Details Name of Charity: Cornwall Community Foundation Charity registration number: 1099977 Company registration number: 4816191 Governing instrument: Memorandum and Articles of Association dated 1 July 2003 Principal address and registered office: The Orchard, Market Street, Launceston, Cornwall, PL15 8AU Patron: HRH The Duchess of Cornwall Presidents: Lord St Levan DSC DL OBE The Rt Revd William Ind Officers : Mr A Chesney - Secretary to the Board (resigned 21 Jan 2005) Mr PS Davies - Secretary to the Board (appointed 21 Jan 2005) Mr A Middleton - Executive Director Mr KA Wellington - Hon Treasurer Board of Directors/Trustees : Lady Mary C Holborow (Chair) Mr Oliver H Baines OBE Mr David J Bishop The Hon Evelyn AH Boscawen Mr Paul S Davies Lord George of St Tudy PC, GBE, DL Dr Clive W Gronow The Rt Revd William Ind Mr Christopher L Perkins Mrs Jean Redfearn The Rt Revd Donald G Snelgrove Mr P Stethridge (appointed 7 October 2005) Mr James P Williams (Deputy Chair) Future trustees will be appointed by a resolution of the trustees. Adviser: Mr P Hodgson (High Sheriff's Award) Auditors: Robinson Reed Layton, Peat House, Newham Road, Truro, Cornwall Solicitors: Stephens & Scown, Osprey House, Malpas Road, Truro, Cornwall Bankers: National Westminster Bank Plc, 3 St Nicholas Street, Truro, Cornwall Cornwall Community Foundation Report of the Board of Trustees For the year ended 31 December 2005 The Board of Trustees are pleased to present their annual report and audited financial statements for the year ended 31 December 2005. The legal and administrative details on page 1 form part of this report. Objects of the Charity The objects of the charity are: The promotion of any charitable purposes for the benefit of the community in the county of Cornwall and the Isles of Scilly and in particular the advancement of education, the protection of good health, both mental and physical and the relief of poverty and sickness. " Other exclusively charitable purposes in the United Kingdom and elsewhere which are in the opinion of the trustees beneficial to the community including those in the area of benefit. Organisation The Foundation is constituted as a company limited by guarantee and was registered as a Charity on 10 October 2003 . The Charity is administered by a board of 13 members which meets a minimum of four times a year. An Executive Director who is not a trustee is appointed by the board to manage the day-to-day operations of the Charity. Investment powers and policy Under the Memorandum and Articles of Association, the Charity has the power to make any investments which the trustees see fit. The trustees regularly review internal financial information to ensure their financial position is such that it is adequate to provide sufficient resources to perform the Charity's objects in all types of conditions and to act accordingly . During the previous period the Trustees reflected on the need to balance risk and return on its reserves and decided to transfer away from primarily equity based investments and moved to interest bearing accounts. Grant making policy The Charity considers applications for funding support on a regular basis. Applications are reviewed against specific criteria and the amount granted is based on available funds. Reserves policy It is the trustees' view that it is prudent to accumulate free reserves to be able to cover one year's anticipated administration costs (which are approximately £135,000) to sustain its operations, when income generating activities may temporarily cease. The trustees have initially set aside a substantial proportion of the free reserves as a development fund for the early years building of the Foundation. Risk assessment The trustees have assessed the major risks to which the charity is exposed, as identified by the trustees, and have established systems to mitigate those risks. This is an ongoing procedure and will be subject to regular review. Auditors In accordance with Section 385 of the Companies Act 1985 a resolution proposing that Robinson Reed Layton be reappointed as auditors' will be submitted to the Annual General Meeting. Cornwall Community Foundation Statement of trustees' responsibilities For the year ended 31 December 2005 Company law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the company and of the net incoming resources for the period then ended. In preparing those financial statements, the trustees are required to: • select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent", and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charily and which enable them to ensure that the financial statements comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities. Statement of disclosure to auditor (a) so far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and (b) they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. Signed on behalf of the Board of Directors of Cornwall Community Foundation on The Orchard Market Street LAUNCESTON PaulSDavies Cornwa11 27 March 2006 Secretary Cornwall Community Foundation Chairman's Review of activities and future developments This year has proved to be one of solid progress and growth . I am pleased to report that £455,000 was given to 181 local projects tackling a wide range of issues affecting the most disadvantaged people in our communities . The detailed results are set out in pages 7 to 21 and show a net increase of funds for the period of £93,669. Management income and expenditure were both within budget producing a satisfactory overall performance . The most significant activity was the income of £463,442 from the DFES for the administration of the Local Network Fund for Children and Young People, which enabled grants of in excess of £412K to be distributed throughout Cornwall. I am delighted that Her Royal Highness the Duchess of Cornwall has become our Patron for the next five years. The significance of the Foundation being the only Cornwall based charity of which the Duchess is Patron should not be underestimated. This year has seen a programme of events to increase our profile within the county. The charity dinner and auction of promises held at the Watergate Bay Hotel in May was a tremendous success, attracting nearly 100 guests and raising just under £8,000 for the Lord Lieutenant's Fund for Youth in Cornwall and the Cornwall Community Foundation . The CCF were also at the Royal Cornwall Show in June thanks to the support of BBC Radio Cornwall who kindly provided space in their marquee for the public to find out about the work of the Foundation and meet the team. In October we held an event to celebrate the work of the Foundation over the last year. The aim was to recognise the outstanding projects that have been supported and to say thank you to the individuals who have worked tirelessly for their communities . I am pleased to say that, despite the weather, the event was a success and has helped inform people of the work of the Foundation. Since the October event, the Foundation has doubled the number of `Friends' who pledge an annual donation. We now have over 160 people giving regularly to support the Foundation's work in Cornwall and the Isles of Scilly. The participation in the Government's ChangeUp programme has also given us the opportunity to increase the number and range of causes we are able to support. Coutts, the international private banking arm of The Royal Bank of Scotland Group, has entered into a partnership agreement with the Foundation in providing advice and facilitation for their private clients with an interest in charitable giving in Cornwall and the Isles of Scilly which provides further potential growth for the Foundation. During 2006 the Foundation will focus on continuing to increase the value of the endowment funds and building the visibility of the Foundation both within Cornwall and with interested parties outside of the county. The staff deserve recognition once again for their extremely hard work to ensure consistently that the Foundation continues to maintain high standards. We must also recognise the input of our Trustees, our volunteer supporters, our donors and the local volunteer groups and charities whose work is so critical to the future of our communities . Finally, I am stepping down as Chairman of the Board of Trustees at the AGM in July this year. i intend to keep a close involvement with the Foundation but I am delighted that James Williams has agreed to become Chairman.