CHARITY COMMISSION Michael Robertson Scholarship Fund Reglstrdtlon numbor. 1014388 Annual Report and Financlal Statements 31 December 2023 dOdd&co
Michael Robertson Scholarship Fund Contents Reference and Administrative Detsils Trustees, report Trustees, responsibilities Independent examinefs report Statement of financial activities Balan sheet Notes to the financial ststements
Michael Robertson Scholarship Fund Reference and Administrative Details Charity name Michael Robertson Scholarship Fund Charity regi8tratson number 1014388 Principal office Rosebank 15A Scotby Village CARLISLE CA4 8BS Registsred office Rosebank 15A Scotby Village CARLISLE CA4 8BS Trustees J V Light S Ellis N J Martin J A C Whittle Msward (Appointed 6 March 2024) Bankerd Barclays Bank PIC 9 Highgate KENDAL LA9 4DA Accountant Dodd & Co Limited FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA12RW Investment Advisor JM Finn 4 Copthall Avenue LONDON EC2R 7AH CCLA Mansfield Traquair Centre 15 Mansfield Place EDINBURGH EH3 6BB Page 1
Mlchael Robertson S¢holapJhlp Fund Trustees. Report for the Year Ended 31 December 2023 The financial statements have been prepared in accordance with the 8ccounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 as amènded by the Charities Act 2022, and Accounting and Reporting by Charities: Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland. Structure. Governance and Management Governin Document The Charity's goveming doGurnent is its settlement deed, which is dated 14 September 1992. as amended by a deed of variation dated 16 April 2003. The charity is an unincorporated tnjst. inlment of Trustees and O qaoi4ail Decision-makin Polic The Trustees, who meet fomially on a minimum of occasions during the year, administer the affairs of the Charity. Applications are considered at these meetings. Newly appointed Trustees are given induction training when first appointed and all Twstees are offered ongoing training. as appropriale. Risk Polic The Trustees have assessed the major risks to which the Charity is exposed. in particular. those relating to the operations and finances of the tnjst and are satisfied that systems are in place to mitigate our exposure to Ihe major risks. Objectlves and Activities The Trustees are empowered to pay or apply the nel income of the trust fund and any part of the capital at their absolute discretion in furtherance of the objects of the Charity. The main objects of the Charity are.. To further thè education {including social and physical training) of the thildren attending Sedbergh School, Cumbria and with a view to furthering this object; - To award scholarships, exhibitions. bursaries or maintenance allowances to persons under 25 years of age who are attending or have for not less than three years attended Winder House at Sedbergh School and vtho need finan¢i81 assistance., To provide financial assistsnce. tools, instruments or books to such persons to enable them to study Italian architecture or history" To award to such persons grants or maintenance allowances to enable them to travel whether in the United Kingdom or abroad in fvrtherance of their education; - To otherwise further the education of such persons. The Chariiy met these objectives during the year by awdrding scholarship grants to students attending Sedbergh School. The Trustees have been carefvl to encourage applications for scholarship grants from Ihose new pupils from the mainlained sector. in order to ensure that it continue5 to meet the requirement that it5 charbtable activities pass the public benefft tests. For many years the restriction to Winder House pupils has not been applied. Firstly, Sedbergh Schol cannot demand that pupils attend a specific house. Secondly, Winder House is rrentty a boys•only house. Achievements and Perfonnance During the year, the Trustees awarded scholarships totalling £173,496 {2022 - £380,976} to pupils of Sedbergh School, enabling them to fijrther their education. The trustees. intention is to provide futlher awards in 2024 and 2025 amounting to £82,572. Page 2
Michael Robertson Scholarshlp Fund Trustses. Roport for the Year Ended 31 December 2023 The Trustees, investrnent objective has been to retum ènough capital to generate the income required to meet the anticipated costs of the main objects of the Charity. The overall value of thè Charity's endonent funds has décrèased by 13.58% over the 2 year peri¢xI January 2022 to December 2023. However furKI values have increased by 3.56¥0 over last 12 months. Flnanclal Review The Trustses are salisfied Vth the financial posltion of the Charity and confimi that théy have adequate assets available to fijffil their obligations. We approve the record of transactions set out herein. We have wntinued to make awards along th8 lines ld down in our guideline$ to applicants. The amounts awarded are shoNvn in these statéménts. All cash is held on current and interest bearing accounts. The Trustees have wide investmont powers, namely.. To invest in such securities or other investrnents or propoty whether involvtng liabillty or not arKI whether producing income or not as the Trustees shall in their absoluts di$uetion think f4t. The Trustees may also hold any assets in nominee names providing that any land shall b8 assured to the Trustees upon trust for sa. The Trusteès retain sufficiént capital to generate the income réquired to meet the anticipated costs of the main oblects of the Charity. At the year end, the Charity had free reserves of £59,175 (2022 - £90,856). This is an appropriate level of reseNes, as it enables the Trustees to be confidènt of the Charivs ability to meèt th8 forthcoming scholarship obligation of the next year without realising any investments. InsImOnt Poll¢y and Perfomianeè The trusvs investrnent assets are managed by extemal fijnd managers, J M Finn. There were no restrictions on the d)aritys power to invest and the frjnds are invested in a portfolio of investsnent fijnds. It is the objéclive of the trustees to invest the Trust fvnds to produce a distributsble amount that. over time, grows, at a minimum, in line with infiallon (as measured by CPI). To achieve this, they need to ensure that the real value of thé endowment fvnd is maintained over the longer tém. On 12 Decembèr 2022 the trustees made a resolution under section 104(A) of the Charities Art 2011 to adopt a total retum on investment approach to the pemianent endowTnent fund. The board idenlified the value of gifts of pem)anent end¢)vmient reived since the fvnd was established to be £3,643,SS7. This set tho base line value of the gift compont of tho endowmenl. The differen beeen the total of endowment funds as at 12 December 2022 and the value of the gift componént represèntsd the opening balance of thé unapplled total retum. The power of total return pennits thé trustees to invest pemanently investsd fvnds to maximlse totsl retum and to appty an appropriate Portion of the unapplied totsl retum to income eath year. UntS1 this power is exercised, the unapplled totsl retum remain$ invested as part of the pemanent endowment. During th8 accounting poriod ended 31 December 2023 £150.000 was transferred into unrestricted fijnds. Thè twstees, having t8ken adviee from the Investment Manager, will detsmiine, from time to time, the amount of the total retum that can be distributed without compromising tha investment objective. Approved by the Tnjsteés and signed on their behalf by: N J Martin Trustee Date.. Pag8 3
Michael Robertson Scholarshlp Fund Trustses. Responsibilitles In relatlon to the Financial Statements The tmstees are responsible for preparing the Trustees, Report and the financial statsments in accordance with applicable law and United Kingdom Accounting Standards. The law applicable to chariiies in England and Wales requires Ihe trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that peri(Ml. In preparing financial statements, the trustees are required to: select suitsble a¢UntIng policie$ and then apply them consistently: observe the methods and princyples in the Charitiés SORP", make judgements and estimates that are reasonab arKI prudent: state vthether applicable accounting standards have been follod. subject to any matsrial departures dis(aosed and explained in the financial statements.. and prepare the financial statements on the goin9 concem basis unkss it is inappropriate to presume that the charity will continue in business. The tnjstees are responsible for keeping proper accounting records that disdose wth Teasonable accuracy at any time the financial position of the tharity and enable them to ensure that the financial ststsments comply with the Charities Act 2011 as amended by the Charitie$ Act 2022, the Charity (A¢¢ounts and Reports) Regulations and the provisions of the trust deed. They gre responsible for safeguayding the assets of the charity and henc for tsking reasonable stsps for the prevention and detection fraud and other irregularities. Page 4
Independent ExamlneVs Report to the Trust of Mlchael Robertson Scholarship Fund I report on thé accounts of the charity for th8 year ended 31 Decémbèr 2023, whith are set out on pages 6 to 14. Your attention is to dra to the fact that the Charity has preparèd thè financial ststements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance wtih the Financial Reporling Standard applicable in the UK and Republic of Ireland {FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 véhich is ferred to in the extant regulations l)ut has sints been withdrawn. We underntsnd that this has been done in order for the accounts to provide a tn and fair view in accordan with the GeneIlY Accepted Accounting Practi effective for reporting periods beginning on or after 1 January 2019. Respectlve responslbllltl8s of trustees and examiner The Chatitys trustses are responsible for the prepar8tion of the accounts. The trustee8 consider that an audit is not required for this year under section 144(2) of the Charitr8s Act 2011 {the 2011 Act) and that an independent examination is needed. It is my responsibilty to= examine the accounts under section 145 of the 2011 Act., follow thè procedures laid dovm in the General Directions given by the Charity Commission under section 145 (5) (b) ofthe 2011 A¢t', and stste whether particulor matters have come to my attention. Basis of indepgndent oxamln•f8 report My examination was carrièd out in accordance with the General Directions glven by the Charity Commi$$ion. An examinatlon indudes a review of the accounting rècords kept by the charity and a comparison of the accounts presented with those record$. It also Includes consideration of any unusual items or disclosures in thè accounts. and seeking ewlanalions from you as trustee$ ¢onceming any such mattels. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whethèr the accounts present a 'true and fair vievl and the report is limited to those matters set out in the statement below. Indopond•nt oxamingrfs •tstement In Connection with my axamination. no matter has come to my attention: (1) which gÈves me reasonable cause to believe that in any material resp8d the requirements: to keep accounting records in accordanco with section 130 of the Chaiities Act 2011,. and to prepare accounts which a¢¢or(I the accounting records. compty with the accA)unling requirements ofthe 2011 Act have not been met.. or {2) to véhich. in my opinion. attention should be drawn in ord6r to enable a proper understsnding of the accounts to be reached. FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA12RW nne Thomlinson FCA odd & Co Limited Chartered AC ntsnts Page 5
Michael Robertson Scholarship Fund ststement of Financial Activities for the Year Ended 31 December 2023 Unrestrlcted Endowment Total Funds Total Funds Funds Funds 2023 2022 Note Income Invesknents 200,749 201.237 232.434 200 Other income Total income 200,749 201,237 232.634 Expendlture Raising funds Charitable activities 22,477 22.477 182,169 204,646 22.854 389,393 412.247 182.169 182.169 Total expenditure 22.477 Gross transfers betsveen funds 150.000 (150.000} Gainsl(losses) on investment assets 165,939 165.939 (1,138,212) Net incomel(expenditurel (31,681) 194.211 162.530 {1,317,825} Re¢onclllation of funds Total funds brought forward Total funds carried foThYard 90.856 59.175 5.757,250 5.951.461 5.848,106 6,010,636 7,165,931 5,848,106 The notes on pages 8 to 14 form an integral part of Ihese financial stst&ments. Page 6
Michael Robertson Scholarshlp Fund Balan¢e Sheet as at 31 December 2023 2023 2022 Not¢ Fixed a88ets Investments 5.901.400 5,698.505 Current assets Cash at bank and in hand 112.512 152,877 Creditors: Amounts falling duo withln one year {3.278) (3,276) Not currnnt assèts 109.236 149.601 Not a•sets 6.010,636 5,848,106 The funds of th• charlty: Endowment funds 5,951,461 5,757,250 Unrestiicted fund8 unrestn.cted income fijnds 59.175 90,856 Total ¢harlty funds The finanGial statements have beén prepared in accordanca with thè Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 6.010.636 5.848, 106 Approved by the Board on .. Z.&.. and Signed on Its behalf by. NJMarti Trustee The notes on pages 8 to 14 form an integral part ofthese finanaal statements. Page 7
Michael Robertson Scholarshlp Fund Notes to the Finan¢ial Statements for the Yaar Ended 31 Decomber 2023 Accounting policies Statement of complian¢• The accounts {finan¢ial statements} have been prepared under Ihe historical cost convention wth items rerxignised at cost or transaction value unle$$ otherwise stated in the relevant nots{s) to these accounts. The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practi issued in October 2019, tha Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Chariiies Act 2011 as amended by the Charities Act 2022. The accounts (financial statements) ha been prepared to give a 'true and fairf view and have departed from the Charities {A¢unts 8nd Reports) Regulations 2008 only to the extent required to provide a 'true and fair view. This departure has involved following Ac¢ounting and Reporting by Charities preparing their accounts in accordan the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102} rather than the Accounting and Reporting by Charities.'Statement of Recommended Practice tffociive from 1 April 2005 which has since b8en withdrawn. Basls of preparation The charity meets the definition of 8 public b8nefit entity under FRS 102. Assets arKI liabilities are initi'ally recognise(l at histori1 wst or transaction value unless othemse stated in the relevant accounting wlicy notes. Golng concem These financial statèments have been prepared on a going concem basis. Fund accountlng polley Unrestricted income funds are general funds that arè available for use at the trustees, discretion in furtherance of the objeclives of the charity. Further details of each fund are disdosed in rte 12. Incomo and endowmonts Income from Govemment and other grants. vA)ether 'capital' grants or'rev8nue' grants. is recognised when the chaiity has entrtlement to the funds, any perf0mlan conditions attached to the grants have been me( it is probable that the income will be received and the amount can be measured reliabty and is not defeffgJ. Investment income is recognrsed on a re(*ivable basis. Income received from endowTnents is tsated as unrestricted. Expenditur• Liabilities are re¢ogni$ed as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classffied under headings that aggregate all costs related to the calegory. Costs of raising fvnd5 are investment mana9ementfees. Charitabte expenditure comprises those costs incurred by the charlty in the delivery of its activities and 5eNces for its beneficiaries. tt includes both costs that can be allocated directy to such activities and those CQ5ts of an indirect natu necessary to support them. Support costs Support costs include e£ntral fvnctions and havo been allocated to 8¢tivity cost catsgories on a basis consistent with the use of resources. Page 8
Mlchael Robertson Scholarshlp Fund Notes to the Flnancial Ststsmonts for the Ywdr Ended 31 Decemb•r 2023 .. continued Ca8h and Cash Equlvalonts Cash and cash equivalents comprise cash on hand and call deposits, and other short4emi highly liquid investments that are readily convertible to a known amount of cash and are subject to an instgnificant risk of change in value. Inv•$lmonts Fixèd asset investments are included at market value atthe balance sheét date. Realised gains and lossès on invesbnents are calculated as the differen befvRen sales proceeds and their market value at the stsrt of the year, or their subsequent cost, and ar8 charged or credited to the statement of the financial activities in the period of disposal. Unrealised gains and losses represent th8 moTr•ement in market values during the year and are credited or charged to th& statement of financial activities based on the market value at tho yèar end. Investment in¢ome Unre$trl¢ted Endowmont Total Fund8 Total Fund8 Fund• Funds 2023 2022 Diwdend income Gross bond interest Gross bank interest 189.360 11.389 189,360 11,389 488 219,181 13.165 200,749 201,237 232,434 Of the investsnent income in 2022 £73 related to unrestricted funds and £232.361 related to restrided funds. Othor Incomè Unro9tri¢tèd Endowment Total Fund8 Totsl Funds Funds Funds 2023 2022 Other Income Other income 200 All ofthe other income arising in 2022 r81ated to unrestricted funds. Page 9
Michael Robertson Scholarshlp Fund Notss to the Flnancial Ststements for the Year Ended 31 DeCeMr 2023 .. continued Expendlture Inve*tments Furtherance of edueatlon Total 2023 Total 2022 Diro¢t costs Scholarships Administration of invesknents 173,496 173,496 22,477 195,973 380.976 22.854 403,830 22,477 22,477 173,496 Support costs Insurance Trustees, expenses Accountancy fees Independent examinerfs fee Lggal and professional fe8$ 557 376 3,160 557 376 3.160 5QO 4,080 8.673 546 251 2,620 4,080 8.673 4.500 8,417 22,477 182.169 2(14.646 412,247 £389,393 of the e>¥Jenditure in 2022 related to permanent end0vent funds and £22.854 related to unrestricted funds. Governance costs 2023 2022 Legal and professional fees Accountancy fees Independent examinerfs fee 3.160 2.620 7,740 7.620 Truste•$' r•munoratlon and oxponses During the year expenses were paid to one of the trustees for out of pocket expenses incurred in their service as a bustee (one trustee received expenses re1mbueMent in 2022>. A total of £376 (2022 - £251 > as paid to or on behalf of the trustees. No trustee or any person connected to a Trustee received remuneration in respect of their seNces as trustee during the year. Page 10
Michael Robertson Scholarshlp Fund Notes to the Financial Statements for the Year Ended 31 Decombor 2023 .. continued Taxatlon The regislered Charity is exempt from taxation on inoome and gains. Invoslments held as fixed assets Llfyted Inv¢stm?nts Markot valuo As at 1 January 2023 Revaluation Additions Disposals As at 31 December 2023 5.698.505 185,939 733.425 (696.469) 5.901,400 Not book value As at 31 December 2023 As at 31 D8cemb•r 2022 5,901,400 5.698.505 Inveslmenl assets can be further analys8d as follows". UK Over80as Listed invèstrnents 3,550,228 3,550,228 2,351.172 2,351,172 Credltor8: Amounts falllng due wlthln ono ar 2023 2022 Accrual$ and deferred income 3,276 3,276 10 Other flnan¢lal ¢ommllments At the start of the year the Charrty had pledged £256.068 to scholars. During the year £173,496 was paid out for scholarships. At the year end the Charity had pl8dgad the following awards to be made to scholars after the year end.. 2024125 academic year- £46,671 2025126 academic year- £35,901 Page 11
Mlchael Robertson Scholarship Fund Notes to the FSnancial Statements for the Year Ended 31 December 2023 continued 11 Related partles Controlling enlity The chaiity is controlled by the trustees. 12 Anatygis of fund8 Other recognised gains I losses At1 January 2023 At31 December 2023 Incomlng Resources resource8 expended Transfers Genéral Funds Unrestricted income fund 90.856 488 (182,169) 150,000 59,175 Pernian•nt Endowment Pemianent endowment 5,757,250 200,749 (22,477) (150,fyJo) 165.939 5,951,461 5,848,106 201,237 (204,646) 165,939 6,010,636 General Funds- the general funds receive investment income and are used to pay out scholarships. Pemianent Endowment- th8 peaent endowments are used to gen8rats the funds needed to perfonn the ¢hariWs obJe¢tives and are revalued annually. P8ge 12
Mlchael Robertson Scholarship Fund Notes to the Financlal Statements for the Year Ended 31 December 2023 .. confrnued Prfor porlod At1 January 2022 Othèr recognised gain91 Iles In¢oming resourc Resourcès oxpendod At31 December 2022 TransferyJ Goneral Funds Unrestricted income fund 321.446 273 {389,393) 158,530 90.856 Pomian•nt Endowment Pennanent endowment 6,844.485 232,361 (22.854) (412,247) (158,530) 11,138,212) {1,138,212} 5.757.250 5.848.106 7,165,931 232,634 13 Transfers Investment incom• received for the year of £150.000 was transferred from pemianent endowment to income. 14 Total leM on inveslrnents Trust for Investment Unappligd total Total endowmènt At 1 January 2023 Movements in reporting perlod.. Invèstment income Inv8Stment retum.. realised and unrealised gainsllosses Less." inveslment MaTragent costs Total Unapplied total retum allorAted to incorne in the reporting period Net movements in th8 reporting period As at 31 December 2023 3,643,557 2,113.693 5,757,250 200,749 165,939 200,749 165.939 (22,477) 344.211 (150.000) 194.211 2.307.904 (22,477) 344,211 {150,000) 194,211 5.951,461 3,643.557 Page 13
Michael Robertson Scholarshlp Fund Notss to the Financial Statements for the Year Ended 31 December 2023 . conlinued 15 Net assets by fund Unrestrletsd Funds Endowment Funds Totsl Funds 2023 Total Fund8 2022 Investsments Current assets Creditors.. Amounts falling due thin one year Net assets 5,901,400 50.061 5,901.400 112,512 5.698.505 152,877 62.451 {3,276) 59,175 13,276} 6,010,636 (3,276) 5,848,106 5.951,461 Prior period Unre8trf¢ted Funds Restrl¢tsd Funds Total Funds 2022 Total Fundg 2021 Investments Current assets Creditors.. Amounts falling due wthin one year Net assets 5,698,505 58.745 5,698,505 152,877 13,276) 5,848,106 6,828,620 340.587 {3,276) 7,165,931 94.132 (3,276) 90,856 5.757,250 Page 14