COIF Charities Deposit Fund - CCLA

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Notes to the accounts3. TaxationThe Fund is exempt from UK income and capital gains tax due to its charitable status pursuantto Part 11 Chapter 3 of the Corporation Tax Act 2010 and Section 256 of the Taxation ofChargeable Gains Act 1992. Distributions are paid and reinvested revenue credited gross todepositors.4. Debtors 31.12.2011£’00031.12.2010£'000Interest receivable 1,731 1,421Prepayments 13 271,744 1,4485. Current deposits 31.12.2011£’00031.12.2010£'000Charities and Trusts 910,668 1,078,411COIF Charities Investment Fund 1,213 18,933COIF Charities Ethical Investment Fund 187 6,349COIF Charities Fixed Interest Fund 211 1,348COIF Charities Property Fund 3,035 1,295COIF Charities Global Equity Income Fund 859 1,174916,173 1,107,510Deposits are repayable to clients on demand.6. Creditors 31.12.2011£’00031.12.2010£'000Interest payable 390 1,659Accrued expenses 8 22398 1,68114
Notes to the accounts7. Income ReserveThe Fund utilises a reserve which is accumulated out of revenue and held by the Board ontrust for depositors for the time being. The principal purpose of the income reserve is tofacilitate the payment of interest to depositors at each quarter end even though a proportion ofthe revenue earned by the Fund over the quarter will not be received until the maturity date ofindividual deposits.The reserve is also available as a provision against potential default of counterparties and isavailable to augment the Fund’s deposit rate.31.12.2011£’00031.12.2010£'000Income reserve at the start of the year 5,626 6,213Transfer from income reserve (101) (587)Income reserve at the end of the year 5,525 5,6268. Financial instrumentsThe main risks arising from the Fund’s financial instruments and the Manager’s policies formanaging these risks are summarised below.Currency riskThere was no foreign currency exposure within the Fund at 31 December 2011 (31.12.2010,£nil).Credit riskThe Fund is exposed to the risk regarding the repayment of deposits from the counterparty. Tominimise this, the assets of the Fund are strictly placed within agreed limits with a diversifiedlist of quality counterparties in order to achieve a very low overall level of risk and high securityof capital. The list of approved counterparties is constantly monitored and credit limitsimmediately amended following credit rating upgrades and downgrades.Interest rate riskThe Fund invests in fixed rate and floating rate deposits. Changes in the interest rate will resultin revenue either increasing or decreasing.15
Page 3 and 4: Report of the Boardfor the year end
Page 5 and 6: Report of the Investment Managerfor
Page 8 and 9: Report of the Independent Auditorto
Page 10 and 11: Interest paid tablefor the year end
Page 12 and 13: Balance sheetat 31 December 201131.
Page 16 and 17: Notes to the accountsThe interest r
Page 18 and 19: Statement of Board and Managerrespo
Page 20: CCLA INVESTMENT MANAGEMENT LIMITEDC

COIF Charities Deposit Fund - CCLA

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