COIF Charity Funds - CCLA

COIF Charities Fixed Interest FundNotes to the Accounts(unaudited)1. Accounting policies(a) Basis of accountingThe accounts have been prepared under the historical cost basis, as modified by therevaluation of investments, and in accordance with the Statement of Recommended Practice(Accounting and Reporting by Charities) issued by the Charity Commission in March 2005and the Statement of Recommended Practice for Authorised Funds issued by the InvestmentManagement Association (IMA) in December 2005.(b) Income recognitionInterest on Government stocks, debentures, eurosterling bonds, other fixed interest stocks andbank and COIF Charities Deposit Fund balances is accrued on a daily basis.(c) Management expensesThe Manager’s periodic charge paid to CCLA Investment Management Limited is charged tothe income of the Fund before distribution. The fee is based on a fixed percentage of the valueof the Fund, which is currently 0.22% p.a. plus VAT, less a management fee rebate for theFund’s deposits in COIF Charities Deposit Fund. Each month, the value at the end of theprevious month is taken to calculate the fee due. This fee covers the provision of staff andinvestment services and other expenses incurred by the Manager. The Corporate Trustee fee,audit, legal, safe custody fees and transaction charges and insurance are charged separately tothe income of the Fund before distribution.(d) DistributionsDistributions are paid quarterly. The Fund utilises an income reserve to even out thefluctuations in income which arise over the years (see Note 10).(e) Basis of valuationListed investments are valued at bid-market values at the close of business on the last businessday of the accounting period. Any unquoted, unlisted, delisted or suspended investments arestated at cost or valuation by CCLA Investment Management Limited and reviewed by theBoard.Suspended securities are valued by the Manager having regard to the last dealing price on thedate of suspension and subsequent available information. Suspended securities are written offafter they have been carried at nil value for two years.2. Net (losses)/gains on investments 30.6.2006 30.6.2005£’000 £’000The net (losses)/ gains on investments during the period comprise:Non-derivative securities (7,156) 2,411Net (losses)/gains on investments (7,156) 2,41140