**Charity Registration No. 1000000** 

## **THE ROYAL ANNIVERSARY TRUST** 

# **REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022** 



## **THE ROYAL ANNIVERSARY TRUST** 

## **LEGAL AND ADMINISTRATIVE DETAILS** 

## **Trustees** 

Sir Damon Buffini, Chairman Sir Martin Donnelly KCB CMG Professor Sir Peter John Gregson FREng (appointed 04 October 2021) Miss Tracey-Joy Harrison Dame Lin Homer DBE Sir Frank McLoughlin, CBE Mrs Heidi Mottram CBE Sir Richard Mottram GCB (resigned 4 July 2022) Professor Dame Shirley Pearce DBE 

## **Chief Executive** 

Ms Kristina Murrin CBE 

## **Principal Office** 

First Floor Sanctuary Buildings 20 Great Smith Street London SW1P 3BT 

**Charity Number:** 1000000 

## **Auditors** 

Crowe U.K.  LLP 55 Ludgate Hill London EC4M 7JW 

## **Bankers** 

CAF Bank Ltd PO Box 289 West Malling Kent ME19 4TA 

## **Solicitors** 

Bates Wells 10 Queen Street Place London EC4R 1BE 

1 



## **THE ROYAL ANNIVERSARY TRUST REPORT OF THE TRUSTEES** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

The Trustees present their annual report and financial statements of the charity for the year ended 5[th] April 2022.  The financial statements have been prepared in accordance with the principal accounting policies set out in Note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and the Statement of Recommended Practice: Accounting and Reporting by Charities SORP FRS102. 

## **Structure, governance and management** 

The Trust is a registered charity created by a trust deed dated 24[th] July 1990 and amended by a scheme defining the Trust’s role in respect of The Queen’s Anniversary Prizes for Higher and Further Education (“the Prizes scheme”) dated 12[th] January 1994. The Prizes are granted biennially. The Trust was established with four principal objects: delivering an official programme in 1992 to mark the 40[th] anniversary of Her Majesty The Queen’s accession to the throne; making educational awards; advancing public education regarding the constitutional monarchy of the United Kingdom; and promoting education, economic prosperity and human progress for public benefit.  The Trust has been supported by funding from business, private sources and charitable trusts.  From 2005-6 to 2017-18, the Trust received an annual grant towards the operating costs of the Prizes scheme from government (the former Department for Business Industry and Skills and latterly by the Department for Education). This enabled the Trust to derive a proportion of its income from the investment of donations.  The Trust is supported in delivering the Prizes scheme by substantial and significant pro bono help and advice from a wide range of experts and specialists. 

Trustees are appointed by current Trustees, following professional search processes commissioned from time to time. Trustee appointments, re-appointments and retirements are governed by the Trust’s trustee rotation policy set out in the Trust Deed.  New trustees are appointed after consultation and with the agreement of the Private Secretary to The Sovereign. The induction of new trustees includes introductory meetings with the Chair and trustees, followed by briefing meetings with the Chief Executive and the Trust Secretary.  Written briefing is provided on the Trust’s history, objectives and activity and in trustee and sub-committee minutes for the previous twelve-month period, the two most recent annual reports and financial statements and the Trust Deed. Trustees are also referred to current Charity Commission guidance on the role and responsibilities of trustees and the requirements of a charity in relation to public benefit. 

Trustees give their time freely and no trustee remuneration was paid in the year.  Details of trustee expenses and related party transactions are disclosed in Note 2 to the accounts.  Trustees are required to disclose all relevant interests and register them with the Secretary, and to withdraw from decisions where a conflict of interest arises. 

Trustees meet regularly to oversee and guide the overall strategic direction and activities of the Trust, to approve the executive’s proposals for investment of the Trust’s funds, to note risk management issues and policies and to receive management accounts prepared by the Trust Secretary. Day to day management of the business of the Trust, including the operating budget and the biennial Queen’s Anniversary Prizes scheme, is delegated to the Chief Executive. 

Remuneration for key management staff is regularly reviewed by the Trustees and set at an appropriate level for the size of the organisation, taking into account the position and profile of the Prizes scheme within the national honours system, and day to day responsibilities. 

2 



## **THE ROYAL ANNIVERSARY TRUST REPORT OF THE TRUSTEES (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

The Charity has not undertaken any fundraising activities in the year as defined by Section 13 of the Charities (Protection and Social Investment) Act 2016. 

## **Risk management** 

Trustees have considered and reviewed the major risks to which the charity is exposed and have established systems and procedures to manage them.  The main area of risk during the year continued to be security of the Trust’s capital and obtaining a satisfactory return on the Trust’s investments.  As a protection against risk, the Trust’s investments are held in a combination of  a mixed UK bond and UK and foreign equity portfolio managed by brokers (Brewin Dolphin) under a ‘progressive risk’ classification, and appropriate fixed term deposits with the major deposit takers. 

## **Objectives and activities for the public benefit** 

The main long-term object of the Trust is the encouragement and advancement of UK education, through a programme of national awards – The Queen’s Anniversary Prizes for Higher and Further Education - granted by HM The Queen and recognising excellence, innovation and public and economic benefit in the UK and more widely. The history and scope of the Prizes scheme is summarised below: 

Following the completion of the 1992 programme marking the 40[th] anniversary of the Queen’s accession, and with Her Majesty’s approval, it was agreed that the Trust’s remaining funds should be used to institute a national award within the honours system for outstanding, innovative and beneficial work by United Kingdom universities and colleges.  It was determined that the award would be conferred every other year on a limited number of institutions according to their achievement under criteria relating to these broad requirements.  Benefit was defined as benefit to the institution itself, and thus for UK education, and in wider society, the economy and for humanity. The creation of the honour was announced by the Prime Minister in Parliament 1993 with all party support.  The Prizes scheme was approved by the Charity Commission in 1994 and the inaugural biennial round was completed in 1995. Fourteen biennial rounds have been completed to date (March 2022). 

As required under the Charities Act 2011 Trustees have given appropriate attention to the public benefit guidance published by the Charity Commission. Trustees are satisfied that the Trust’s activity, which is principally concerned with delivery of the Prizes scheme, enables and encourages Prize-winning institutions to promote their achievements and enhance the quality and range of their programmes for teaching, learning and research, for the overall benefit of UK education and consequent public benefit. The award of a Prize may also, and frequently does, open the door to new sources of funding and support for the Prize-winning institution.  Up to and including the fourteenth biennial round a total of  296 Prizes have been awarded to fifty-four further and eighty-three individual higher education institutions [a number of institutions have been multiple winners in the scheme]. 

3 



## **THE ROYAL ANNIVERSARY TRUST REPORT OF THE TRUSTEES (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

Every two years, UK universities and colleges offering full-time courses leading to recognised qualifications are invited to submit an entry (one per institution) for review and assessment by the Trust against the criteria of the Prizes scheme. The criteria are sent to institutions with the invitation to enter and are published on the Trust’s website. It is for the institution to decide whether it wishes to enter and with what aspect of its work. Entries may be in any field or discipline and consist of a (ten-page) narrative description of the particular area of work. Entries are subject to rigorous independent review involving assessment by members of the Trust’s national panel of about 250 Readers (experienced professional, academic and specialist advisers covering a wide range of subjects), reference to appropriate technical sources and comment from relevant UK government departments including the devolved governments as applicable. The Awards Council of the Trust (the Trustees plus others appointed by the Trust who may include permanent secretaries of UK governments and the Department primarily concerned with education) makes recommendations for the award of Prizes from a short-list prepared by the Trust executive on the basis of evidence provided by reviewers and other sources.  The recommendations are submitted for the approval of Her Majesty The Queen on the advice of the Prime Minister.  Readers and other reviewers and advisers provide their services on a pro bono basis and the Trust records its appreciation of this invaluable help. 

The Prizes are non-monetary and are unique in the honours system in being awarded to an institution as a whole (irrespective of the subject submitted and not to particular individuals).  They are presented by senior members of the royal family at an honours ceremony on the lines of an investiture and usually held in the ballroom at Buckingham Palace. With effect from the eleventh round (2014-16) the presentations have been made on The Queen’s behalf by His Royal Highness The Prince of Wales with Her Royal Highness The Duchess of Cornwall. The Prize consists of a silver-gilt medallion and a certificate of award inscribed to the institution and signed by The Queen. Prize-winning institutions are entitled to use the logo of the Prizes scheme for a period of four years from the date of presentation. 

The Prizes scheme confers national recognition granted by the head of state. It provides an opportunity for institutions to review the quality, strategic direction and ultimate practical value of their work, and submit aspects of it to examination in an evaluation process which is distinct from other forms of review used from time to time by government or official bodies. Universities and colleges make their own judgements as to whether to enter a round of the scheme, and with what topic.  They regularly refer to the value of this internal review process, whether or not an entry goes on to win a Prize.  A Prize-winning institution will also benefit from enhanced recognition and reputational profile, the motivational effect on staff and students and the opportunity to attract new contacts, business and funding.  The UK’s global reputation in education is also directly and indirectly enhanced through the status of the Prizes, which are widely regarded internationally as a distinguished ‘kitemark’ of excellence.  These and other outcomes are regularly attested to by the wide range of institutions which have participated in the scheme over the years, and whose work contributes to the UK’s educational, scientific, economic and social progress. 

4 



## **THE ROYAL ANNIVERSARY TRUST REPORT OF THE TRUSTEES (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **Achievements and performance** 

The Trust’s main activity during the year has been the completion of the fourteenth biennial round of the Prizes scheme 2020-22. The Trust received one hundred and fourteen entries from UK universities and colleges by the due date 10 May 2021.  Entries were reviewed by the Trust executive and assessed over a period of four months by the Trust’s panel of Readers and a wide range of specialist and technical assessors and advisers, and by relevant UK government departments. Fifteen universities and six colleges of further education were recommended to HM The Queen by the Awards Council of the Trust, on the advice of the Prime Minister, for the award of Queen’s Anniversary Prizes.  The twenty-one Prizewinning institutions were officially announced at a reception hosted by the Trust at St James’s Palace on 25 November 2021 by kind permission of The Queen. The Trust recorded its thanks at the event to the many Readers, assessors and advisers who provided pro bono support and assistance to the Trust during the round.  The Prizes were presented on behalf of The Queen to the heads of the Prize-winning institutions by Their Royal Highnesses The Prince of Wales and The Princess Royal at a ceremony also held at St James’s Palace on 17 February 2022. The previous evening, 16 February, the Trust hosted a Prize-winners Dinner at the Guildhall attended by the heads and senior staff of the institutions and guests representing many areas of national life.  Baroness Kennedy of the Shaws QC gave the keynote address. Ceremonial support was provided by a fanfare team from The Band of the Irish Guards and by the Piper to the Sovereign through the good offices of the Army Ceremonial Branch. Music was provided by the De Beauvoir Singers from the Guildhall School of Music and Drama.  Front of house and support services were provided by the Front Line Service students from Mid Kent College. The Trust records its thanks and appreciation for the help and support received from many other organisations and individuals during the round. 

The start of the fourteenth Prizes round coincided almost to the day with the onset and most severe effects of the Covid-19 pandemic in the UK.  The Trust consulted informally with various sources, including the Palace, shortly after the first ‘lockdown’ was imposed on 23 March 2020 and decided to proceed with the delivery of the round in line with the normal two-year calendar for inviting and assessing entries and making recommendations to the Queen for the award of Prizes.  Adjustments to the entry deadline and the assessment timetable during 2021 were made to take account of the severe pressures faced by all educational (and other) bodies to enable this to be done.  The high number of entries  - the largest number for ten years – and the quality of the work submitted was a testament to the respect in which the Prizes are held and the opportunity they offered for expressing a positive view of the future and the key role of education, skills training and research in a post-Covid world.  The Trust records appreciation of the understanding and flexibility shown by entrants and assessors in enabling the Trust to complete a very successful round of the scheme. 

In particular, the Trust expresses warmest thanks the Royal Household and staff at Buckingham Palace and Clarence House for the excellent and unreserved support, advice and collaboration provided to the Trust executive in the planning and delivery of the key events, notably the presentation ceremony which was held for the first time at St James’s Palace (due to the reservicing work in progress at Buckingham Palace). 

In other areas, the Trust further developed its social media activity and outreach which included an Instagram takeover of the Royal.com web site in February 2022.  The Trust also launched the Platinum Jubilee Challenge, with support from the Department for Education, aiming to bring together the Prizewinning universities in this round to exchange ideas and formulate relevant strategies for achieving net zero carbon in their sectors. 

5 



## **THE ROYAL ANNIVERSARY TRUST REPORT OF THE TRUSTEES (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **Financial review** 

During the year the Trust received income of £154,155 (2021: £101,992).  After expenditure of £720,907 (2021: £349,277) on its general purposes and a £184,052 gain (2021: £948,905) on investments the Trust’s capital decreased from £3,637,857 to £3,255,157.  The Trust’s principal financial management policy is to safeguard its assets, derive income under agreed investment policies and have regard to its capacity to meet future obligations as regards delivery of the Prizes scheme. 

Charitable expenditure during the year was principally directed to funding the staffing and operating costs of the Prizes scheme. 

The majority of the Trust's investments are held in a portfolio managed on a discretionary basis by professional investment managers.  These managers have been instructed to adopt a moderate risk approach to the portfolio management giving due regard to the liquidity requirements of the Trust.  Sixmonthly reviews are held with the investment managers. 

Having assessed the Charity’s financial position and plans for the foreseeable future, the trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis. 

## **Reserves Policy** 

At the year end the Trust held funds totalling £3,255,157 (2021: £3,637,857) all of which were held within the General Fund Endowment. The General Fund Endowment is an expendable endowment which makes it unnecessary for the Trust to carry income reserves. 

## **Future plans** 

In February, this year the Trust was delighted to announce the launch of The Queen’s Platinum Jubilee Challenge which, with the support of the Department for education, will bring together the Prize-winning institutions from Round 14 of the Queen’s Anniversary Prizes to exchange ideas and formulate relevant strategies for achieving net zero carbon in their sectors.  This is the first time the Trust has extended its remit beyond the Prizes scheme remit since that’s inception and has been well received by both educational institutions and funders alike. The Challenge programme is taking place throughout 2022 and includes carbon assessment plans and visits to each institution.  In addition, the Trust will deliver a number of online seminars together with a three-day summer residential programme.  Students of the Prize-winning institutions are also being encouraged to get involved and a trial fund has been established to support up to five live trials.  Ultimately, the Trust will deliver a report to the Department of Education in December 2022 wherein the prize-winners will present their nett zero plans for the entire sector. 

The Trust’s other principal concern in the immediate future is to steer and manage the action needed to prepare for the fifteenth round of the Prizes scheme, 2022-24. 

6 



## **THE ROYAL ANNIVERSARY TRUST REPORT OF THE TRUSTEES (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022** 

## **Statement of Trustees’ responsibilities** 

Charity law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. 

Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its net incoming/outgoing resources for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgments and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

So far as the trustees are aware, there is no relevant audit information of which the Charity’s auditors are unaware. The trustees have taken all the steps that ought to have been taken by trustees in order to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information. 

## **Auditors** 

The Trustees thank Crowe U.K. LLP (formerly Crowe Clark Whitehill LLP), the Trust’s auditors, who were appointed in 2007. 

Approved by the Trustees on 4 July 2022 and signed on their behalf by: 



7 



## **THE ROYAL ANNIVERSARY TRUST INDEPENDENT AUDITOR’S REPORT** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **Opinion** 

We have audited the financial statements of The Royal Anniversary Trust for the year ended 5 April 2022 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement 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 Financial Reporting Standard 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 5 April 2022 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 other 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 opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information contained within the annual report. 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. 

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 this gives rise to a material misstatement in the financial statements themselves. 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. 

8 



## **THE ROYAL ANNIVERSARY TRUST INDEPENDENT AUDITOR’S REPORT** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or 

- sufficient and proper accounting records have not been kept by the charity; 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 7, 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 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** 

We have been appointed as auditor under section 151 of the Charities Act 2011, and report in accordance with the Acts and relevant regulations made or having effect thereunder. 

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. 

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. 

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 

9 



## **THE ROYAL ANNIVERSARY TRUST INDEPENDENT AUDITOR’S REPORT** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Registration. 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. 

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations. 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 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 the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. 


**Crowe U.K. LLP** Statutory Auditor 

London 

3 November 2022 

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 

10 



## **THE ROYAL ANNIVERSARY TRUST STATEMENT OF FINANCIAL ACTIVITIES** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

|**Notes**<br>**INCOME FROM**<br>Donations and legacies<br>Investments<br>3<br>Charitable activities<br>**Total income**<br>**EXPENDITURE ON**<br>**Raising funds**<br>4<br>**Charitable activities:**<br>Promotion of excellence in higher and further education:<br>Queen’s Prizes scheme<br>5<br>**Total expenditure**<br>Net gains on investments<br>**Net income/ (expenditure)**<br>Total Funds brought forward at 6 April 2021<br>**Total Funds carried forward at 5 April 2022**|**Total**<br>**Funds**<br>**2022**<br>**£**<br>**-**<br>**84,155**<br>**70,000**<br>**154,155**<br>**48,673**<br>**672,234**<br>**720,907**<br>**184,052**<br>**(382,700)**<br>**3,637,857**<br>**3,255,157**|_Total_<br>_Funds_<br>_2021_<br>_£_<br>_5,406_<br>_96,586_<br>_-_|
|---|---|---|
|||_101,992_|
|||_46,714_<br>_302,563_|
|||_349,277_|
|||_948,905_|
|||_701,620_<br>_2,936,237_|
|||_3,637,857_|



All the activities above arise from continuing operations 

## _**The notes on pages 14 to 21 form part of these financial statements**_ 

11 



## **THE ROYAL ANNIVERSARY TRUST** 

## **BALANCE SHEET** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

|**Notes**<br>**FIXED ASSETS**<br>Investments<br>8<br>**CURRENT ASSETS**<br>Debtors<br>9<br>Cash at bank and in hand<br>**CREDITORS:**amounts falling due within one year<br>10<br>**NET CURRENT ASSETS**<br>**TOTAL ASSETS LESS CURRENT LIABILITIES**<br>**THE FUNDS OF THE CHARITY**<br>**General Fund Endowment**|**2022**<br>**£**<br>**3,187,444**<br>**73,791**<br>**101,941**<br>**175,732**<br>**(108,019)**<br>**67,713**<br>**3,255,157**<br>**3,255,157**|_2021_<br>_£_<br>_3,501,095_<br>_69,881_<br>_93,853_|
|---|---|---|
|||_163,734_<br>_(26,972)_|
|||_136,762_|
|||_3,637,857_|
|||_3,637,857_|



Approved by the trustees on 4 July 2022 and signed on their behalf by: 



_**The notes on pages 14 to 21 form part of these financial statements**_ 

12 



## **THE ROYAL ANNIVERSARY TRUST** 

## **CASH FLOW STATEMENT** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

||Notes|**2022**|_2021_|
|---|---|---|---|
|||**£**|_£_|
|**Cash flows from operating activities**||||
|Net cash provided by operating activities|(a)|**(551,066)**|_(401,460)_|
|**Cash flows from investing activities**||||
|Investment income||**84,155**|_96,586_|
|Cash withdrawn from fixed asset investments||**470,000**|_-_|
|Net cash provided by/(used in) investing activities||**559,155**|_96,586_|
|**Change in cash and cash equivalents in the**||||
|**period**||**8,089**|_(304,874)_|
|Cash and cash equivalents as at 6 April 2021||**93,853**|_398,727_|
|**Cash and cash equivalents as at 5 April 2022**||**101,942**|_93,853_|
|**NOTES TO THE CASHFLOW STATEMENT**||||
|**YEAR ENDED 5 APRIL 2022**||||
|**(a) Reconciliation of net Income to net cash flow**|**from operating**|**activities**||
|Net (expenditure)/income for the year||**(382,700)**|_701,620_|
|Investment income||**(84,155)**|_(96,586)_|
|Investment manager expenses||**22,704**|_19,430_|
|Net losses/(gains) on investments||**(184,052)**|_(948,905)_|
|Decrease/(increase) in debtors||**(3,910)**|_(58,764)_|
|Increase/(decrease) in creditors||**81,047**|_(18,255)_|
|Net cash (outflow) from operating activities||**(551,066)**|_(401,460)_|



_**The notes on pages 14 to 21 form part of the financial statements**_ 

13 



**THE ROYAL ANNIVERSARY TRUST NOTES TO THE FINANCIAL STATEMENTS** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **1. PRINCIPAL ACCOUNTING POLICIES** 

## **a) Charity Information** 

Royal Anniversary Trust is a registered charity (charity number 1000000). Its registered office is First Floor, Sanctuary Buildings, 20 Great Smith Street, London, SW1P 3BT. 

## **b) Basis of preparation** 

The accounts (financial statements) have been prepared in accordance with the Charities SORP (FRS102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland, FRS 102, the Charities Act 2011 and UK Generally Accepted Practice. 

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. 

The Royal Anniversary Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). 

Having assessed the Charity’s financial position and plans for the foreseeable future and taking into account the impact of Covid-19, the trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis. 

The principal accounting policies adopted in the preparation of the financial statement are set out below. 

## **c) Critical accounting judgements and key sources of estimation uncertainty** 

In the application of the charity’s accounting policies, which are described in Note 1, Trustees are required to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

14 



## **THE ROYAL ANNIVERSARY TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **1. PRINCIPAL ACCOUNTING POLICIES (CONTINUED)** 

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods. 

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. 

## **d) Income** 

Voluntary income comprises gifts, grants and donations that provide core funding or are general in nature and are recognised where there is entitlement, receipt is probable and the amount can be measured with sufficient reliability. Investment income is recognised on a receivable basis. Income from charitable activities comprises contributions received towards the printing costs of additional manuals and brochures purchased from the Trust. 

## **e) Volunteers and donated services and facilities** 

Donated services and gifts in kind to the Charity are recognised as incoming resources where the benefit to the Charity is reasonably quantifiable and measurable. They are valued at open market value, i.e. what it would have cost the organisation to acquire the same or similar products or services on the open market. An equivalent amount is also included as either expenditure under the appropriate heading in the Statement of Financial Activities.  As required by the SORP, the value of services provided by volunteers is not incorporated into these financial statements.  Further details of the contribution made by volunteers can be found in the Trustees' annual report where appropriate. 

## **f) Expenditure and irrecoverable VAT** 

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. VAT is charged against the category of resources expended for which it was incurred. The Charity is unable to recover any VAT paid. 

Costs of generating funds comprise staff costs and support costs of those staff members involved in fund raising activities. 

Charitable activities comprise the costs of delivering the charitable objectives through The Queen’s Anniversary Prizes scheme. It includes directly attributable costs and a proportion of support costs. 

15 



## **THE ROYAL ANNIVERSARY TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **1. PRINCIPAL ACCOUNTING POLICIES (CONTINUED)** 

Governance costs include those costs in connection with meeting the constitutional and statutory requirements of the Charity and include the audit fees and costs linked to strategic management of the Charity. 

Support costs are allocated based on the estimated staff time spent on each category. 

## **g) Investments** 

Investments are included in the accounts at their market value at the balance sheet date. Any gains and losses on revaluation or disposal are reported in the Statement of Financial Activities. 

Realised gains and losses on investment disposals are accounted for in the period the disposal takes place as the difference between the net sale proceeds and the opening market value, or cost if purchased in the year. 

## **h) Funds structure** 

Under the terms of the Trust Deed, the Trust Fund is an expendable endowment and unless donors intend otherwise, all gifts, grants and donations are automatically accrued to the Trust Fund and are treated as expendable endowment funds. The Trustees are empowered to capitalise unspent income, but when expenditure exceeds income a corresponding amount of capital is converted to income to cover the deficit.  For simplicity of presentation in these circumstances, all general purpose income and expenditure is shown in the General Fund Endowment column of the Statement of Financial Activities. 

## **i) Financial instruments** 

The Royal Anniversary Trust has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash and bank and in hand, current asset investments and accrued income. Financial liabilities held at amortised cost comprise accruals. 

Investments, including bonds held as part of an investment portfolio are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. 

16 



## **THE ROYAL ANNIVERSARY TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **2. RELATED PARTY TRANSACTIONS** 

The Trustees do not receive any remuneration. During the year no trustees (2021: no trustees) claimed travel expenses (2021: £nil). 

There were no additional costs borne by the Trust for Trustee meetings (2021: ££nil). 

There were no related party transactions during the current year. 

## **3. INVESTMENT INCOME** 

|Dividends and investment income<br>Bank deposit interest<br>**4.**<br>**ANALYSIS OF COSTS OF GENERATING FUNDS**<br>Staff costs<br>Investment managers fees<br>Rent and office overheads<br>Brochures, supplements and other costs|**2022**<br>**Total**<br>**£**<br>**84,141**<br>**14**<br>**84,155**<br>**2022**<br>**Total**<br>**£**<br>**11,920**<br>**22,870**<br>**4,081**<br>**9,131**<br>**48,001**|_2021_<br>_Total_<br>_£_<br>_96,433_<br>_153_|
|---|---|---|
|||_96,586_|
|||_2021_<br>_Total_<br>_£_<br>_8,828_<br>_21,419_<br>_8,318_<br>_8,149_|
|||_46,714_|



17 



## **THE ROYAL ANNIVERSARY TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022** 

## **5. ANALYSIS OF COSTS OF CHARITABLE EXPENDITURE** 

|Staff costs<br>Consultancy fees and secretarial<br>support<br>Rent & office overheads<br>Assessment costs<br>Printing & photography<br>Travel & expenses<br>Website design<br>Announcement costs<br>Prize giving ceremony & event costs<br>Medals and certificates<br>Entry Costs<br>Governance costs<br>**Total charitable activities**|Support<br>Costs<br>£<br>95,357<br>70,000<br>32,646<br>-<br>13,675<br>-<br>-<br>-<br>-<br>-<br>-<br>41,712<br>253,390|The<br>Queen’s<br>Anniver<br>sary<br>Prizes<br>Scheme<br>£<br>-<br>112,757<br>-<br>1,367<br>-<br>575<br>97,847<br>31,423<br>104,764<br>70,783<br>-<br>-<br>419,516|**2022**<br>**Total**<br>**£**<br>95,357<br>182,757<br>32,646<br>1,367<br>13,675<br>575<br>97,847<br>31,423<br>104,764<br>70,783<br>-<br>41,712<br>**672,906**|_2021_<br>_Total_<br>_£_<br>_70,639_<br>_54,494_<br>_68,615_<br>_-_<br>_-_<br>_-_<br>_66,844_<br>_-_<br>_-_<br>_-_<br>_6,520_<br>_35,451_|
|---|---|---|---|---|
|||||_300,563_|



Support costs are allocated on the basis of the estimated staff time spent on each activity. 

18 



## **THE ROYAL ANNIVERSARY TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **6. ANALYSIS OF GOVERNANCE COSTS** 

|**ANALYSIS OF GOVERNANCE COSTS**|||
|---|---|---|
|Staff costs<br>Rent and office overheads<br>Accountancy and professional fees<br>Auditor’s Remuneration|**2022**<br>**£**<br>**11,920**<br>**4,753**<br>**18,992**<br>**6,720**<br>**42,385**|_2021_<br>_£_<br>_8,828_<br>_8,318_<br>_12,899_<br>_5,406_|
|||_35,451_|



. 

## **7. STAFF COSTS** 

|**STAFF COSTS**|||
|---|---|---|
|Wages and salaries<br>Social security costs<br>Pension costs|**2022**<br>**£**<br>**102,862**<br>**13,267**<br>**3,068**<br>**119,197**|_2021_<br>_£_<br>_80,061_<br>_5,836_<br>_2,402_|
|||_88,299_|



During the year, one individual was paid between £80,000 and £90,000 (2021: one individual was paid between £80,000 and £90,000). Contribution amounts totalling £3,068 (2021: £2,402) were made to a defined contribution pension scheme on behalf of these individuals. 

During the year, total remuneration (including employer's NI and Pension) of two (2021: one) key management personnel totalled £119,196 (2021: £88,299). 

The average number of employees during the year was one (2021: one). 

19 



## **THE ROYAL ANNIVERSARY TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **8. FIXED ASSETS INVESTMENTS** 

|Market value as at 6 April 2021<br>Additions<br>Withdrawals<br>Investment Manager Fees<br>Gain on valuation<br>Market value at 5 April 2022<br>Historical cost at 5 April 2022<br>Historical cost at 5 April 2021<br>Investments are represented by (at market value):<br>**2022**<br>**£**<br>UK equity shares<br>**767,009**<br>UK bonds<br>**179,410**<br>Overseas equity shares<br>**1,477,915**<br>Overseas bonds<br>**125,041**<br>Absolute Return bonds<br>**48,199**<br>Property<br>**118,222**<br>Private equity<br>**96,886**<br>Other investments<br>**119,320**<br>Cash product<br>**255,442**<br>**9.**<br>**DEBTORS**<br>**2022**<br>**£**<br>Prepayments and accrued income<br>**73,791**|**Total**<br>**£**<br>_3,501,095_<br>-<br>(475,000)<br>(22,704)<br>184,052|
|---|---|
||**3,187,443**|
||**2,605,079**|
||_2,972,778_|
||_2021_<br>_£_<br>_892,711_<br>_181,822_<br>_1,437,424_<br>_90,277_<br>_50,630_<br>_101,444_<br>_107,763_<br>_111,200_<br>_527,824_<br>_2021_<br>_£_<br>_69,881_|



20 



## **THE ROYAL ANNIVERSARY TRUST** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 5 APRIL 2022** 

## **10. CREDITORS** 

|**CREDITORS**|||
|---|---|---|
|PAYE<br>Accruals|**2022**<br>**£**<br>**6,120**<br>**101,899**<br>**108,019**|_2021_<br>_£_<br>_2,839_<br>_24,133_|
|||_26,972_|



## **11. FINANCIAL INSTRUMENTS** 

At the balance sheet date, the charity held financial assets at amortised cost, comprising cash and short-term deposits, current asset investments, and accrued income of £175,732 (2021: £163,734) and financial liabilities at amortised cost, comprising accruals of £101,899 (2021: £24,134). Total interest income received in respect of financial assets held at amortised cost totalled £14 (2021: £153). 

The charity held assets at fair value through income and expenditure of £3,187,444 (2021: £3,501,095). Movements in the year through the statement of financial activities comprised income of £84,141 (2021: £96,586) and gains of £184,053 (2021: Gain £948,906). 

21