**Charity Registration No. 1002267** **SCOTT (EREDINE) CHARITABLE TRUST TRUSTEES' REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **CONTENTS** **----- Start of picture text -----**
Page
Trustees' report 1-2
Trustees' responsibilities in relation to the accounts 3
Independent Auditors' report 4-6
Statement of financial activities 7
Balance sheet 8
Notes to the accounts 9-12
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## **SCOTT (EREDINE) CHARITABLE TRUST** ## **TRUSTEES'REPORT** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ The trustees present their report and accounts for the year ended 31 December 2020. The accounts comply with the Charities Act 2011, the charity's Trust Deed 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 (FRS102) (effective 1 January 2015). ## **Our purposes and activities** The trust exists for such charitable objects as directed by the settler or as the trustees shall from time to time determine. The Charity's principal activity continues to be to generate investment income in order to provide grants to various charities in accordance with the trustees' wishes. In shaping the objectives for the year and planning its activities, the trustees have considered the Charity Commission's guidance on public benefit, including the guidance 'Public Benefit: Running A Charity (PB2)'. ## **Achievements and Performance (Including Financial Review)** Income for the year was £461,269 (2019: £466,901). In 2020, the Trust made grants totalling £371,500 (2019: £6,725,660). The overall deficit for the year was £3,734,234 (2019: deficit of £7,351,951) after accounting for unrealised losses on investments of £3,819,282 (2019: unrealised losses on investments of £1,088,924). Unrealised gains and losses are not cash items and solely reflect the movement of the investments with regard to the value of the investments at the year end. Total funds carried forward total £7,003,372 (2019: £10,737,606) which are all unrestricted funds. Under paragraph 5.2 of the trust deed the trustees have power to retain shares in John Swire and Sons Limited and are not under any duty to diversify to the extent that the trust fund comprises those shares. The shares are in the names of trustees K J Bruce-Smith and A J Scott who hold them as custodian trustees. However, the trustees have also noted the statutory duty of care required by the Trustee Act 2000, in relation to their holding suitable investments and the need for diversification of investments so far as is appropriate to the circumstances of the trust. The trustees' overall investment objective is to achieve a level of investment income growth which at least matches the rate of inflation, while protecting the value of the charity's capital in real terms. Where investments have been donated to the charity, the trustees also consider whether a disposal of such investments could discourage similar donations in the future. The trustees recognise that particular investment risks arise from lack of diversification where substantial holdings in unquoted companies are donated to the charity and retained. The trustees seek to mitigate the risks through the regular monitoring of such investments on receipt of published financial information. The charity does not operate an "ethical investment policy". **Reference and administrative details** Charity number: 1002267 Principal office: c/o Sinclair Gibson, 3 Lincoln's Inn Fields, London, WC2A 3AA **Our advisers** Auditors TC Group The Courtyard, Shoreham Road, Upper Seeding, West Sussex, BN44 3TN Bankers C Hoare & Co 37 Fleet Street, London, EC4Y 4DQ Solicitors Sinclair Gibson 3 Lincoln's Inn Fields, London, WC2A 3M **1** ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **Structure, Governance and Management** ## **Trustees** The trustees serving during the year and since the year end were as follows: A J Scott K J Bruce-Smith N H CWills J L Gibson ## **Governing Document** The trust was established by a charitable trust deed on 19 July 1990. It is registered as a charity with the Charity Commission. ## **Appointment of trustees** Trustees are appointed by existing trustees when it is thought necessary to do so. Training is provided by existina trustees. ## **Risk management** The major risks to which the trust may be exposed, as identified by the trustees, have been reviewed to confirm that systems, where appropriate, exist to manage those risks. The trustees recognise that the majority of the trust's investments are shares in a private company that were settled upon the trustees with the power contained in the Deed to retain and not to diversify those shares. ## **Grant making policy** Scott[(] Eredine) Charitable Trust look to support charities operating in the following areas: - a. Physical or mental handicaps through accidents of birth, injury, wounds, illness old age etc. - b. Adventurous challenge for the young - c. Wildlife conservancy ## **Reserves policy** The charity look to hold reserves in order to provide a sufficient capital base to generate income to cover administrative expenditure and grants payable as documented in the trust deed. The charity held reserves of £7,003,372 at the balance sheet date (2019: £10,737,606) which is considered in line with the set policy. ## **Future plans** Scott (Eredine[) ] Charitable Trust will continue to seek opportunities to assist beneficiaries with grants to support the charity's aims and objectives. ## **Statement as to disclosure to our auditors** In so far as the trustees are aware at the time of approving our trustees' annual report: - there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the auditor is unaware; and - the trustees, having made enquiries of fellow trustees and the auditor that they ought to have individually taken, have each taken steps that they are obliged to take as a trustee in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. By order of the board of trustees **K J Bruce-Smith (Trustee)** Dated: .........[� ] .... ) _°\_ \ **'2-\** 2 ## **SCOTT (ERE0INE) CHARITABLE TRUST** ## **TRUSTEES' RESPONSIBILITIES IN RELATION TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ **The charity trustees are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity law requires the trustees to prepare accounts for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year.** **In preparing accounts giving a true and fair view, the trustees should follow best practice and:** **- select suitable accounting policies and then apply them consistently;** **- observe the methods and principles in the Charites SORP;** - **make judgements and estimates that are reasonable and prudent;** **- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the accounts; and** **- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.** **The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ensure that the accounts comply with the applicable law. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.** **3** ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **INDEPENDENT AUDITORS' REPORT** ## **TO THE TRUSTEES' OF SCOTT (EREDINE) CHARITABLE TRUST** ## **Opinion** We have audited the financial statements of Scott (Eredine) Charitable Trust (the 'charitable trust') for the year ended 31 December 2020 on pages 7 to 12. 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 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, 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 charitable company 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** We have nothing to report in respect of the following matters in relation to 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 charitable company'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. **4** ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **INDEPENDENT AUDITORS' REPORT (CONTINUED)** ## **TO THE TRUSTEES' OF SCOTT (EREDINE) CHARITABLE TRUST** ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the trustees' 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. 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by us; 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 3, 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 charitable company'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 charitable trust or to cease operations, or have no realistic alternative but to do so. 5 ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **INDEPENDENT AUDITORS' REPORT (CONTINUED)** ## **TO THE TRUSTEES OF SCOTT (EREDINE) CHARITABLE TRUST** ## **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 Council's website at: https://www.frc.org.uk/Our-Work/AudiUAudit-and-assurance/Standards-and-guidance/Standards-and-guidance -for-auditors/Auditors-responsibilities-for-audiUDescription-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report. ## **Extent to which the audit was considered capable of detecting irregularities, including fraud** The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. Our approach was as follows: - We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general sector experience, and through discussion with the trustees and other management (as required by auditing standards), and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations (see below); - We identified the following areas as those most likely to have such an effect: General Data Protection Regulation (GDPR); fraud; bribery and corruption and the Financial Conduct Authority (FCA). 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. The identified actual or suspected non-compliance was not sufficiently significant to our audit to result in our response being identified as a key audit matter. - We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102, the Charities Act 2011) and the relevant tax compliance regulations in the UK; - We considered the nature of the charity's operations, the control environment and financial performance. - We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit; - We considered the procedures and controls that the charity has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error. 6 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance 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 members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Out audit work has been undertaken so that we might state to the charity's members 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 member as a bod[y] , for our audit work, for this report, or for the opinions we have formed. **Mr Mark Cummins FCCA (Senior Statutory Auditor) For and on behalf of TC Group Statutory Auditor Office: Steynlng, West Sussex** Dated: ........................ . 7 ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ |**Income from:**
**Investment income**
**Total Income**
**Expenditure on:**
**Charitable activities**
**Total expenditure**
**Net movement in funds before gains/ (losses) on**
**investments**
**Net gains/(losses) on investments**
**Net movement In funds**
**Reconciliation of funds**
**Total funds brought forward**
**Total funds carried forard**
**Notes**
**4**
**5**
**8**
|**2020**
**£**
**461,269**
**461,269**
**376,221**
**376,221**
**85,04**

**(3,819,282)**

**(3,734,234)**
**10,737,606**
**7,003,372**|**2019**
**£**
**466,901**
**466,901**
**6,729,928**| |---|---|---| |||**6,729,928**
**(6,263,027)**
**(1,088,924)**
**(7,351,951)**
**18,089,557**
**10,737,606**| **All income, expenditure and investment movements are unrestricted for both years.** **8** ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **BALANCE SHEET** ## _**AS AT 31 DECEMBER 2020**_ **----- Start of picture text -----**
2020 2019
Notes £ £ £ £
Fixed assets
Investments 8 6,797,122 10,616,404
Current assets
Cash at bank and in hand 211,137 126,089
211,137 126,089
Creditors: amounts falling due
within one year 9 (4,887) (4,887)
Net current assets 206,250 121,202
Net assets 7,003,372 10,737,606
The funds of the charity
Unrestricted income funds 7,003,372 10,737,606
7,003,372 10,737,606
The acco,nls we,e apprnved by the T'"stees on
1:'.'\/-'\l-:;i1/I
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�-� K J Bruce-Smith **Trustee** **9** ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **1 Legal Status** The Trust is an unincorporated charity registered in England and Wales Number 1002267. Its principal office is shown in the trustee report. ## **2 Accounting policies** ## **2.1 Basis of preparation** The accounts 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) (effective 1 January 2015) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Scott (Eredine) Charitable Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). There are no material uncertainties about Scott (Eredine) Charitable Trust's ability to continue as a going concern. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound. ## **2.2 Income** Investment income is accounted for when receivable. ## **2.3 Expenditure** Expenditure is accounted for on an accruals basis with the irrecoverable element of VAT included with the item of expense to which it relates. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. Grants payable are charged in the year when the commitment is made by the trustees to make the donation. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees and costs linked to the strategic management of the charity. These are included within support costs. All costs are allocated between expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned based on estimated usage as a proportion of directly attributable expenditure. ## **2.4 Fund accounting** Funds held by the Trust are Unrestricted general funds. These are funds which can be used in accordance with the charitable objects at the discretion of the trustees. ## **2.5 Investments** Investments are included at fair value at the balance sheet date. Any gain or loss on revaluation is taken to the Statement of Financial Activities. ## **2.6 Debtors** Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due. **10** ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **2. 7 Cash at bank and in hand** **Cash at bank and in hand includes cash and short term highly liquid investments. The Trustees seek to use short term deposits where possible to maximise the return on monies held at the bank and to manage cash flow.** ## **2.8 Creditors and provisions** **Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.** ## **2.9 Critical accounting estimates and judgements** **In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.** **The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.** **The trustees do not consider that there are any critical estimates or areas of judgement that need to be brought to the attention of the readers of the financial statements.** ## **3 Taxation** **The charitable company is registered as a charity and all of its income falls within the exemptions under Part 11 of the Corporation Tax Act 201 0.** ## **4 Investment income** |**Dividends from unlisted investments**|**2020**
**2019**
**£**
**£**
**461,269**
**466,901**
**461,269**
**466,901**| |---|---| 11 ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **5 Total expenditure** |**Admin**
**costs**
**£**
**Charitable activities**
Grants payable
Support costs
417
**417**|**Other**
**costs**
**£**
4,304
**4,304**|**Grant**
**funding**
**£**
371,500
**371,500**|**Total**
Total
**2020**
2019
**£**
£
**371,500**
6,725,660
**4,721**
4,268
**376,221**
6,729,928| |---|---|---|---| Grants payable includes £Nil (2019: £6,269,660) in respect of a transfer of shares in John Swire and Sons Ltd and associated dividend income. Further details can be found in note 8. Grants were paid to 81 institutions during the year (2019: 90 institutions). ## **Analysis of support costs (including Governance costs)** |Administrative expenses
Governance costs:
Audit and accountancy
**2020**
**641**
**4,080**
**4,721**|2019
£
308
3,960
4,268| |---|---| Governance costs includes £4,080 (2019: £3,960) of audit fees. ## **6 Trustees** None of the trustees (or any persons connected with them) were reimbursed expenses or received any remuneration during the year. ## **7 Employees** There were no employees during the year 12 .. ## **SCOTT (EREDINE) CHARITABLE TRUST** ## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_ ## **8 Fixed asset Investments** |**Fair value at 1 January 2020**|**10,616,404**| |---|---| |**Unrealised losses**|**(3,819,282)**| |**Fair value at 31 December 2020**|**6,797,122**| |**Historical cost:**|| |**At 31 December 2020**|**3,938,275**| |**At 31 December 2019**|**3,938,275**| **The investments are held in the names of K J Bruce-Smith and A J Scott as custodian trustees.** **In the prior year the trustees in exercise of their discretionary powers resolved to donate the John Swire and Sons Ltd shareholdings derived from Edward Scott's Will Trust to Fieldrose Charitable Trust. The holdings (ie 282,944 ordinary shares and 169,796 8% preference shares) were duly transferred and a payment in the sum of £97,562 made to Fieldrose Charitable Trust on 15 March 2019 being dividends received in respect of these shares and not yet transferred.** **The loss on investments of £3,819,282 (2019: loss of £1,088,924) as shown in the Statement of Financial Activities comprises unrealised losses on investments held at the year end.** |**Creditors: amounts falling due within one year**|**2020**|**2019**| |---|---|---| |||**£**| |**Accruals**|**4,887**|**4,887**| ||**4,887**|**4,887**| ## **9 Creditors: amounts falling due within one year** ## **10 Related parties** **No one party has overall control of the Trust.** **N Wills OBE (trustee) is a trustee of The Royal Lancers Charitable Trust. The charity made of grant of £3,000 to The Royal Lancers Charitable Trust during the year (2019: £4,000).** 13 tc accounts . rax . le931 financial planning Scott (Eredine) Charitable Trust Audit Year Ended 31 December 2020 Contents Introduction Independence Audit Status Audit Findings Audit Misstatements Letter of Representation 10- 12 YOUR CONTACT8 AT TC GROUP IN CONNe¢TION WITH TH18 REPORT ARE.. Mark Cummins - Charities & Education Partner markcummins@tC-gmp.com Introduction Purpose of this Report The purpose of this report is to set out certain Matters that came lo our attention during the course ol the audit of Scott (Eredinel Ch8rilable Trust for the year ended 31 December 2020. In ord8r to comply wilh the provisions of lntèrnat￿naI Standards on Audillng we are required lo report to you our audit findings and in particular.. Vws about the qualitative aspèels of your accounting practices and finanLyal rePo￿ng., Adjusted and unadjusted misstatements.. Matters spealically required by Audthng Standards lo be communicated lo those chofgad with governanc8 (such as fraud and error),. Expeetad modrflcalions to our audltor5' report., Matènal weaknesses in th• a￿untIng and internal control systems., and Any other relevant and rnal&dal matters relating lo thè audft. Responsibilities The Trust8•5 are responsibl• for pffjparing tho Trust8è$' Report and Fin8nc181 Slalemenls. TC Group, as auditor ol Scott (Eredinel Charitab18 Trust, is ra$ponsible for forming an Lplnion on the Finanelal Slalements. Limitations Our audit procedures, which have been designed to enable us lo express an opinion on the financial slatèmenls, have includgd ¥n examination ol the tran58¢1ions and th& controls Ihereon ol the chanly The work th81 we have done wa5 not primarily dlr8cted towards id8ntifwng weaknesses in the charity's accounting systems other than thosè that would affect our 8iJdit ¢¥Jinion. nor lo the dotection of liaud. Introduction Limitations (continued) Wa have included in this report only those rnallers that have come lo our attenlion ¥$ a result of oui normal audit procedures and, consequently, wr comrnenls should not be r8garded as a cornwehenSi￿ rècord ol all weaknesses that may oxisl or Improvements that could be made. To a certain ext8nl the conlant ol Ihls paper comprises general inlormolKJn that has been prOV￿ed by, or 15 based on discuss￿n$ with. managèment and stsff. Except lo the •xtenl necessary for the purposes of the audit, this Inform8tirm has not been ind8pendenlly venfied. Thls report Is to be reg8rdèd as confidential lo the Trustees and is inl*nded lor use by them and staff ol th& ch$rily only. No responsibilrty is aceaplgd lo any olh8r person in Te8pecl ol the whol8 or part of ils contenls. Befor8 this report, or any part of it. is disclosed to a third party our eons•nl musl be obtained. Independence Auditsng Standards require us to eommunicale al loa5t once 8 year regardiThJ all relationships between TC Grwp and the charity that may ieasonably be thought to have a bearing on ow independence. W• have reviewed our independence and conlirrn that TC Group is independent within the me8ning of regulatory and professional raquirements. In particular the objectivity of our partn8r, Mark Cumrnins and h15 audit le8m is not impaired. Our rèview induded eonsideralion of wh8ther". The film is depandenl on Ihe ch8rily 88 a client du8 to the significance ol thè audit fee lo the firm The firm is owed significant ovardue fee5 There is any aclual or threatened litigawon bebNe8n lh8 fim and the charity Any benefits ha￿ been receivad by the audit team whi¢h am not modest The firm has any mulual business intèrèst with Ihe charity Any members of Ihe audll team ha￿ any personal or IAmlly connections with thè ¢harily or officèrs,, or Independon¢• Is impaired throwJh the provision of services Other than the statutory audit. Audit Status Scope As auditors of th8 charity lor the y8ar 8ndèd 31 December 2020 we are responsible for reporting on the financial statements of the charity. Progress Wa would like lo take this opportunlly lo thank you for your 5UPPOrt and Assistance during the audit. Tha audil work on the finaneiql statements is now substontlally complete and we anticlpale Issuing an unqualified audit opinion for the year ended 31 Oeeémber 2020 lor the charity, following". Reetipt of approved financi81 slalèments signed by th8 Board., and Receipt of o signed leller ol represenl81ion. Thore are no matters arising from our audit Ihal we wish to bring lo your attention. Audlt Misstaternants A5 part ol the requir¢mant5 of Inlornalion81 Auditing Standards on Audlling we are required to report any adiu8t8d #udll misslaternants ar1$￿9 Ircm our work. Wè are also required lo report any unadjusted audll misslalernents and why Ihey are unadjustèd, olhw than thosè Ihal are 'clearly trivial. Again thère are none lo report. Risk of Fraud and Error in the Financial Statements We are requir8d under Inlernalional Auditing Standards to considar IraLKI iisk throughout the audit. In particular we must consider management arrang8ments ft)r preventing and detecllng fraud and error. Fr8ud risks may include asset sales 81 under value, suppliers ovw billing lor good5 or services, misappropnation of asse15 and cheque Irauds. as well as manipulation of finanaal fèsults. This work 15 now complete and h8s nol klenlified any mattèrs which we wish lo draw to your attention. Audit Findings QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES AND FINANCIAL REPORTING RELATED PARTY TRANSACTIONS W¥ are required lo locus on the Identification and assassmènl of the risks of matèrial mlsstalement assoclgled wfth related paty rel8lionshlps and tr8n58clions. We gre required as an audit team lo discuss the risks of Ir8ud as60ciated with felaled parties and to perform specific procedures on any ielated party transact￿5 Outside the normal course ol busines$. The relatèd party Irans8Ctlons hav6 been listed in the letter of i&presentalion. ACCOUNTING ESTIMATES As auditors, wè arè 8ware that the selecled basi5 01 an accounting èstim81• may have a significant impAcl on the financial statements 50 In our work w• need lo Identify all accounting e51imal8s And th# ba515 ol the estimate and. whére we consider there to be a high eslimalion un¢&rt8inly. we musl 8nsur8 our audit work challang&$ Ihe basis of thè eslimale. We &re also required to consider the outcom8 of accounting eslimales In prior periods as a b9$1$ for our risk assessmènt In the current year Tho most significant ac¢ounlln9 esllmates concern d&preclalion ol fimed ssèts. classification ol funds. co$1 allocation, and the ba515 and calculation ol tho provision lor bod 8nd doubllul debts. We have reviewed these actounting èstimates lor the charbly and conclude that they have been ealculated on a basis that Is ¢onsislenl with our knowledge of Ihe charity and the serlor a5 a whole. Audit Findings GOING CONCERN We have nothing to Teport in respect of the follwng matters lo whi(* the ISAS IUKI require us lo reporl to you wh$fe". the committees, use of the going concem basis of Accountlng in the prepara140n ol Ihe flnanci81 statements is not approk¥iate.' or the committ¢e have not disclosèd in the financial stat8m8nts any id&nts"fièd material uncartaintio$ that may cast signifl¢onl doubl about the club's ability lo continue to adopt the going concern basis of accounting for a p￿r0d ol at least tsyelve months trom the d8le when Ihe financial statements are aulhorised lor Issue. ACCOUNTING AND INTERNAL CONTROL SYSTEMS We have no rèeommendalions to m8k8 from work compleled on V)1$ year, audit. Audit Misstatements A summary of the unadiustedlAdlusted misstatem•nts id•ntffied during Iho c￿r5e of our wuk is set out belthv. Wtr have not dis¢k)8ed below those itoms tst we considw to b• 'clo8rfy trivial. in th& contsxt of our audit. For this wrpjsg we conSKler'd8aily lthilal, to b8 any unadlusted matter le86 Ihan £S.000. Thwe are no •dlu$t•d misstslements to r•port. Unadjusled m*Jstalements we 0$ fdltrws.. (Increa$el or decrease to daflclt Increa58 or (decrease) to Nal A•s•t8 ] Unadjustod Audit Mlsstatements . Drl(Crl Drl{Cr) I Cr•dltor• ov•rst*t•d- 81ncl•lr cr•dlW from prlor y••r 807 Ov•r•ll effect of unadJu•t•d ml••tAtement• 807 Letter of Representation TC Group The Courtyard Shoreham Rc>ad Upper Beeding Steyning Wesl Sussex 8N44 3TN Dear Sirs The lollowing representations are made on the ba515 of enquiries of managemenl and staff with r81evanl knowledge and èxperience such as we con51der necessary In conn8cl￿n with your audit of the company's financi81 slalemenls lor the year ended 31 O&cÈmb&T 2020 These enquiries have included Inspection ol supporting documenlalion. where appropriate. and are suflicienl lo satisfy ourselves that WÈ can make each ol thè followlng representalions All representations arè made lo the best ol our knowledge and belief. We have luifilled our responsibililies as trustees un¢J6r the Charities Act 2011 for preparing financial slaleménts. In 8ccoidance with thè applicable financial rep(￿lIng framework ol thè Charili8s SORP and FRS 102. and for making accurate r8pres8nlalions lo you as auditors. We confirm Ihal In our opinion the financial $18lemenls glvo a truè and fair view and in particular that where any addilion81 Inlorrnalion musl bè disclosed in oidor to giv• É Iruo and fair view that inlorm8lion has in lact been disclosed Wo confirm that all accounting record5 have been wade available lo you lor Ihe PLJrpose ol your audit, in accordancè with your loims of engagement, and th81 811 transactions undertaken by the charity have been properly reflected and recorded in thè accounting rèeoids. All othgr records and related inlormalion. Including minutes ol all management and truslees, meeting5. have been made av8ilable to you We havè given you unrestricted ac￿53 to persons within the charity In order lo obtain audit evidence Bnd have provided any 8dditional Information that you hav¢ roquesled lor the purpose5 of your audit The mèlhods, ¢Jala and significant 95surnplions used by u$ in making accounting astimal8S, and their related disc105ures, gre appropriat8 to achieve recognition. measurement and disclosure that Is reasonable in the ¢onlexl of the applicable financial reporting framework We confirm that all known actual or possible liligalion and claims W￿)Se effects should bè onsidered when preparing the financ￿al statements have been disclosèd lo the auditor Bnd ccounled lor and disclosed in 8ccordance with the applicablo finan￿31 reporting framework ol the Charities SORP and FRS 102. We confirm that there have begn no even15 since the balance sheet dale whieh require disclosing or which would malerially affect *he amounts in thè financial stalemenls. other than those already disclosed or Included ￿ the financial slalements We c8n confirm that WE are aware that a relateij party of the charity Is a person or organisation which either (directly or Indirectly) contio15, has joint control of. or significantly influences the charity or v￿8 versa and, as a result. will Include shareholder5 las a guide, ore than 20% of the voting righlsl, Irustee5. Dlher key managomènl. tl(>sÈ family and other business inleiests of the previous. We confirm that the related party relationships and transactions set out bélow are a o)mplete list of such relationships and tionsaclions and that we are not awaie of any fui(her rdaled parts'e5 or transactions 10 Letter of Representation Party Relationship Nature of transactlon AJScott Trustee Custtsdian Iruslee ol John Swre shares Able lo allocate 5% ol gross Inctsmè discretionally to charities ol choice so long as not hostsle lo Armed Foreès or Field Sports K J Bruce-smilh Trustee Custodian Iruslèe of John Swir* shares. NHCWills Trustae No transactions J L Gibson Trusteè No Iransaclions. We confirm that all related party relationships and tran58clions hava been accounled for and disclosed in accordance with thè applicabl8 financAal reporting framework ol Ihe Charities SORP and FRS 102 Wtr confirm that the charity has had, al no lime during thè ya8r, any arrangement, trans8Ction or 8greemenl to provide credit facilities (including advances and crèdi15 granled by the charity) lor tiuslees. nrx to provide 9uar8ntees of any kind Dn behalf of Ihe trustees. We confirm that thè eharily has not contracted lor any capital expenditure other than as disclosed In the financial slalemenls. 10 We confirm that we arg not aware ol any possible or actual Instanc8 ol non-compliance with those laws and regulalions whlch provide a legal Iramewoik wilhin which the charity conduc15 Its business and which are central lo the charity's 8bility lo corKlu¢l Ils busine55. Wo acknowledge our rosponsibilily for the design and Implementation ol controls la prevent and delect fraud Wè eonfirm that we havé disclosed lo you the iesult5 91 our risk assessment ol the iisk of Iraud In the business. 12. We confirm that there have been no actual or suspected Instances ol fraud involving managemenl 01 empbyeès who have a significant role in inlernal control of that cwld have a n181er181 eflecl on the financial slalements Wp also confirm that we are not aware of any allegations of fraLKI by former employees. regulators or others We believe that the company5 finanual slalemenls should be prepared on a going cone2rn basis on the grounds that currènt and future sourees of funding or support will be more than adequate loi the cornpaiiy's needs We alsc confirm our plans for future aclion required Its enable the company lo eonlinue as a going CDncern are feasible We have considered a penod of twelve months from the dale of approv81 of the financial statements We believe that no lurth8r disclosures relating to the company's ability lo Continue as a going concern need lo be made In the financial statements 11 Letter of Representation 14. We c4Jnfirm th8t in our tsplnion the effects of unadjusted misstatements are immaterial, both individually and in aggregate, to the financial statements as a wholè. 15 The tharily has sa*'sfa¢lory lille lo all assets and there are no liens or èncumbrances on the charity's assets, except lor those ¢Jiselosed in the notes lo the financial statements. 18 All grants, donations and other income. Ihg receipt ol which is subject to Specffj￿ terms or condititsns, have been nolified to you. There have b••n no breaches of t8rms or COnd￿lon5 in the application of such income We acknowledge our 18gal rosponsibilities regarding disclosure of information lo you as auditors and conllm that. so far as each Iruslee is awar8, theitr is no relevant audit Information of which you os auditors are unaware, ond è8¢h trustee has taken all the 51ep5 Ihal they ought tts have taken as a Iruslèe lo Fnake themselves aware ol any relevant audit inlormalion and lo establish that you are aware th81 information. We confirm Ihal tha above representations are made on the basis of ènquiri¢5 of managemènt and staff with relevant knowledge and expert15e land, wherè approprlale ol supporting documenlationl sufficient lo ¥allsfy ourselves that we can properly makè Imess rgpresenlalions Its you and that lo the best ol our knowl&dg• And bèllel they accurately rel￿¢1 th8 representation5 made lo you by the Iruslees during thè course of your audit Yours faithfully Signed on behalf of the t)oard of trustees by.. Dale Truslee. 12