THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND Financial statements for the year to 31 December 2020 Registered Charity No. 1014798
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 51 DECEMBER 2020 Index to the Finsncial Statements Page5 Trustees. Report Independent Auditor's Report 10 -11 Ststement of Financial Activities 12 8alance Sheet 13 Statement of Cash Flows Notes to the Accounts
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 Trv5tees' Report Reference and Admini5tratiY¢ D•tail$ TRUSTEÉS The Hon Hugo Keith QC (Retired 30 April 20201 Michael Napier CBE, QC The Hon James Lewi5 QC Clive Osborne JP simon clements IAppointed l May 20201 PRINCIPAL ADDRESS 8 South Square Gray's Inn Londo WCIR SET CHARITY REGISTRATION NO. 1014798 AUDITORS Haysmacintyre LLP 10 Queen Street place London EC4R 41G PRINCIPAL BANKERS C Hoare & Co 37 Fleet StFeet Londo EC4P 4DQ SOLICITORS Hunters 9 New Squsre Lincoln's Inn Londo WC2A 3QN SENIOR MANAGEMENT Chief Executive.. Anthony Haiking Director of Finance.. Dermot Doughty ACA
THE HONOURABLE SOCIETY OF GRAY'S INN TRVST FUND YEAR TO 31 DECEMBER 2020 Trust•eJ' Report (continued) structurt. Gov¢rnanc• •nd Mana9•ment The Trustees who acted throughout the year are as disclosed on p3ge 3. The Trustees are kept conversant with the law 2nd the requirements of the Charity Commission, as required, by professional aclviser5. Trustees are selected by the Management Committee of The Honourable Soeiety of Gray's Inn I'The Society'l and their appointment5 are confirmed by Pension. the ultimate policy making body ol The 50¢iety. Day to day managemerit ol the activities of The Honourable Society of Gray'5 Inri Trust Fund (the 'Charitable Trust'l is delegated to the management statt of The Society. Gov•rnlng Doeum•nt The Charity is governed by a Deed of Covenant dated 31. January 1972. obj¢¢tiv¢J and Artivities The objects of the Charitable Trust Fund are the advancement ol legal education, by, inter alia, the king ol donations to the Scholarships Trust lor the aw3rd of 5cholar5hip5, bv15arie5 ancl grants and by the provision of library laeilities lor the purpose of enabling students of The Society from all parts tsl the world to study law and lulfil the condition5 requisite for ¢onlerment ol the degiee ol Barrister at law,. the promotion ol religion by maintenance of the chapel,. and such other charitable object5 a5 the Trustees shall direct. Grant Poli¢y Grants are made on an annual basis to the Honourable Society of Gray's Inn Scholarships Trust I'the Scholarships Trvst") to fund s¢holar5hips and •re made at level which is as high a5 is affordable. No Grant was made to the Scholarships Trust during the year since the annual grant from The Society to the Charitable wa5 reduced as a result of the Coronavirus pandemic. The Trustees understand that The Society made a loan of £600k to the Scholarships Trvst to fund immediate ¢ash requirements. Public Benefit The Trustees confirm that they have considered the charity Commission's guidance on public benefit and are mindlul of their obligations to ensure that the aetivities of the Trust are demonstrably for public benefit. All student5 wishing to pursue careeTS a5 barristers must become member5 01 one of the four Inns of Court and, after passing the requisite exams and meeting other requirements, be called by their Inn. No Individual with the appropriate academic qualifications who applies to an Inn ol Court can be refused membership to partake of the legal educational facilitie5 offered. The grant made to the Scholarships Trust each year funds scholarships to students. Members of the public are welcome to attend the chapel's services, the dates and time5 of which are on public notice boards within the Inn and on the Inn's website. The Library is 8vailable to all barristers and student barristers for study and researeh. In 2ddition, the Library vnclertake5 numerou5 historical and genealo9ic31 enquirie5 on behalf of member5 of the public for which no charge is made. A¢hievtmtnt$ and ptrformanc• in the Ytar The Coronavirus pandemic h85 had a 51griilicant disruptive influence on the Trust's operational activities. Notwithstanding this the major aims have been achieved and are detailed in thi5 report. Staff and volunteers have shown considerable adaptability and diligence throughout this period and the Trustees would like to extend their thanks lor the work undertaken.
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 Truste•$' R•port (Continuèd) The Chapel Whi15t the pandemic, Social distancing and the re5triction5 imposed on collective worship at different times were certainly felt, Chapel strove to provicle as full a calendar of worship and event5 as it could in 2020. 3 Mattins, 4 Holy Communions, I Sung Eucharist and 2 Evensong services took place. Social distancing and no congregational singing became necessary and Services were made available online via Zoom as much as possible. Although the Mulligan Sermon, to be preached by The Very Rev'd Dr. Jeffrey John. Dean of St. Alban5, had to be cancelled. the Remembrance Sunday Service was socially distanced and the Carol Service took place online. A benefit to the in¢rea51ng amount of online activity is of course that it can be seen and heard by those who would normally not be able to attend chapel. Other than dvring the tightest periods ol lockdown, the Chapel has remained open vpon request a5 place lor quiet prayer and reflection and the Preacher ha5 made himself available, in complete confidence, for those Members, Students and Staff who need someone to listen to them. The four Summer Concerts were all pre-recorded all took place online were then available on the Inn's website for a limited time afterw2rds. Master Sill clegg QC read the 'Banned chapter, from his book Under The Wig and took questions afterwards. Music for Organ, Christopher Bowers-Broadbent. Music for Voice5. the Choir ol Grays InD with additional material frow the CD 'M(Jttins Music - The choir Orgun of Gruy's Chupel,. Music lor Piano, Paul Wee. One memorial service took place. Library Services Following the outbreak of the COVID-Tg pandemic, the Library c105ed on 20 March. Staff worked from home providing a rernote enquiry and document 5vpply service to members. Staff had remote a¢¢ess to the Library's online services and Carried out searches on behalf of barristers, providing material to them by email. The usual charges lor document supply were waived. Three members of the Libr>ry team were furloughed between mid-April and mid-July. A nutnber activitie5 had to be 5U5pended for all or part of the year, included virtually all purchasing and receipt of new book5 and serials (resumed in mid-julyl, work on the Lauterpacht Collection, and the project to di5P05e of non-essential hardcopy stock. It was also not possible to maintain all the vsual record-keeping and statistlcs relating to Library services. The Library worked closely with the other Inns of Court Libraries, pooling expertise and resources by operating a referral system. A few weeks into lockdown, the Library was also able to bring staff on-site one day a week in order to deal with requests lor materials only available in hardcopy. This was done in rotation with the other Inn Librarie5. The 'on-51te' days proved extremely busy and it was nece55ary to priorit15e reque5t5 lor material needed for use in court. The pandetnic led to an increase in members applying lor remote access to 8ltsom5bury Professional Online. The number of users rose to 265, with more than 6Q% ol these based outside London, in keeping with the original aim of being able to provide library rNateria15 to members practicing on the Circuits. Since the March lockdown, over 70% of enqviries h)ve been to provide material for Use in courts and tribunals, while 60% ol all requests have been lor rnaterial only available in hardcopy within the Library. The majority of requests were for textbook5, old or obscvre fflaterials or IOT the Library's specialist international law materials. This illustrated the enduring usefulness of the Libr3ry'5 hard¢opy and historic collections and also its role in helping barristers to continue working during the pandemic.
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMP4ER 2020 Trv$tees' Report Icontinvedl Library Services (Continved) In advarice ol re-opening, the Director of Library Services prepared a detailed series of Covid measure5 covering all aspects of Library use. The Library is now considered to be a highly Covid- secure environrnent. The Library re-opened to member5 on 20 July, on 3 weekly rota ba515 Wlth the other Inn Libraries. This arrangement ended on I September when all four Inn Libraries re-opened lull-time. Saturday openings resumed on 19 September. stsff working patterns were revised to 3llow some continued home-working and later start times to avoid peak hour5 for commuting. With these arrangements in place it was not possible to resume late night opening. Library opening hours were reduced to 10am to 4pm, with the documerit Supply Service available until 6pm. Following re-opening, there was a consistent flow ol visitors, though attendance was reduced compared to pre-covid levels. There wa5 noticeable attendance by students prior to the re- scheduled Bar exams. However, use of the document supply service increased by 700% as many barristers continued to work Temotely and had an ongoing need for access to Library service5. It was agreed in February that the four Inn Libraries would collaborate in delivering legal research training for students on Part 2 of the ICCA Bar Course, due to commence in March 2021. The Director ol Library Services will be involved in this and work is underway to cle5ign the training. The Director ol Education and the Director ol Library Services agreed to cancel the Practical Legal Re5ear¢h Qualifying Session$ that had been scheduled lor June and September. Iri the circumstance5 there were insufficient resources to create an online alternative to the usual lace to face workshop in the Library. This will be re-visited in 2021. There wa5 no postgraduate welcome fair at City Law school, normally attended by Library staff. The Director ol Library services took part in the Inn's Introductory Talk5 lor riew student5. coriducted via Zoom webinar. The event wa5 very successlvl, with the Q&A function encouraging a high level of interaction from 5tudent5, including many qvestions about the Library. The publi¢ation and supply ol law books and periodicals was 5igriilicantly impacted by the pandemic, leading to a backlog in library acqui51tions which gradually reduced from September. PublicatlDn of many international law titles, the Library's key specialism, was delayed until next year. Approximately 500 books were catalogued and more than 1.000 serials received. Despite the pandemic, a number of doriations were still received from members. The final portion of the Lauterpacht Library was collected and shelved with the rest of the Collection in the Library's closed stack. 560 book5 from the Collection have now been catalogued. Regular updates were posted on the Inn's social media channels, generating a favourable response. summary progress report was also made available in J3nU3ry and a commemorative bookplate was prodvced to identify items from the Collection. The projeet to dispose of non-essential hardcopy Stock resumed in July, with some 600 item5 identified lor disposal via donation to tsther libraries or to members. The exercise had been undertaken partly to free up spaee in the basement of the Treasury office in anticipation of Project Griffin. Although the latter ha5 now been postponed, it is still an aim to reduce unneeded stock and consolidate the remaining basement stock with the rest of the Library's closed access material. On l May the law changed to allow certain electronic pvbli¢ations to become zero-rated lor VAT. This should lead to Cost savings in 2021. As the Library is part of the Charitable Trust, it wa5 not entitled to reclaim VAT paid on online subscriptions, thus signific8rTrtly increasing the cost of services such as Westlaw and Lexis Library. The Director of Library Service5 began investigating the feasibility and cost of digitising the Inn's 24 medieval martvscripts. The intention is to make digital copie5 of the manv5cripts available via the Inn's website. From a conservation perspective, thi5 would also greatly reduce any need to h8ndle the mariuscripts. Library staff worked hard and with great flexibility throughout the year in challenging circumstances, for which they are to be congratulated.
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 Trustees. R•port (Continued) The Education Department Thi5 report cover5 the activitie5 and training for the period from 1 January to 31 December 2020 although the academic year lor the Inn begin5 in September and ends in August. A5 a result of the pandemic physical training and education withir) the Inn and at residential training venues stopped in micl-mafch. A5 a result, the Inn's Education Department rapidly pulled together an online programme, with the result that all training and education continued with only minimal disrvption. Student5 who commenced their Bar Courses in September 2020 have only experienced tsnline delivery and have not physically visited the Inn. M05t events within the programme have been delivered in an adapted online format, in¢ludin9 adclitional events which were initially postponed in early 2020. Students, trainers and staff have adapted well to online delivery and there have been some notable benefits, such as the increased involvement ol Circuit trainers and student5 in the delivery of the programme. The Education Department has undergone a review and subsequent re-organisation in this reporting period. Thi5 is dve, in pJrt, to the implementation OF a T)ew quality assurance framework for the delivery ol (Lualifying Sessions Ilisi and to prepare the Department for the administration of the Di5¢1osure and Barring Service IDBSI check for student members prior to Call. from spring 2021. A total of 349 student members were admitted to the Inn in 2020 and a total of 81 were called to the Bar. In 2020 the Inn provided 1.918 individual trainirTrg places at student, Pupil and New Practitioner level. The delivery of this lull and varied programme relie5 heavily tsn Gray's Inn members providing guidance and training on a pro bonts basis with over 300 members contributing. The Education Department ran four advoeacy and ethics courses for students, one of which was adapted to an online Format. One couise incSuded the 5e¢ond round ol the moot competition, mock trial at the Rtsyal Courts of Justice and careers advice. 121 students attended the mock trial, One residential course took place on Circuit IBirminghaml in February 166 5tudent51. The Education Department eontinues to engage actively in internal and external mooting with an emphasis on training novice mooters ancl offering advanced opportunities for experienced otsters. The Inn ran 3 practice moots for students at all leve15. We a150 trained and prepared a team for the Vi5 Arbitration Moot competititsn, which was unfortunately cancelled in 2020 due to the Pandemic. The team is selected from the Inn's Student Arbitration Course which commenced in August 2020 and a new team has been select lor the 2021 lonlinel Vis Moot. The Inn, Moot Competition had 91 entrants and, after a postponement, was concluded lon line) in March 2021. A total of 7 prison debates were undertaken by Vocali5e rnentor5 in 2020. The ability to go ahead with arranged debates was significantly impacted by the pandemic which Suddenly halted mentors going into the prisons to teach. Teaching wa5 Stopped mid-way throvgh training cycles in March. Thi5 deci510rt was t3ken for the safety of both mentors and the prisoners thernselve5. Griffin LAW is Gray's Inn'5 vehicle for promoting social mobility at the Bar. Inn student5 introduce secondary and sixth form students to the legal profe55ion, build their knowledge of the rule of law and develop their skills in advocacy and persuasion. The programme was urilortunately cancelled due to the pandemic. New mentors for both Griffin LAW and Vocalise progrHfflme5 were recruited in September 2020 and online programme is now being delivered. The Inn also launched the Griffin Access Programme IGAPI with 27 students from Newnham Colleglate 6th Form. GAP is a two-year programme with Year 12 students interested in a career at the Bar who are keen to learn about the type ol work at the Bar and experience the training, education and mentoring opportunities available through the Inn. The Inn'5 Outreach PrOgrarne with universities adapted well to online delivery. Ten online events were held with university 8Jr Societies, featuring Barristers and Judges ol the Inn and 696 students attended. The Inn's popular University Advocacy Day programme5 were temporarily suspended in 2020 due to the pandemic. 130 students attended an online advocacy taster dJy in September and this new format will continue in to 2021.
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 51 DECEMP*ER 2020 Trvstee5' Report (Cpntinuedl Risk Review The Trustees have assessed the major risks faced by the charity and keep them under review. All the operational activitie5 01 the Trust are undertaken by The 50¢iety and the Trustees rely on the risk control proce55es implemented by The Society. Specific reference 15 made in these processes to the risk management requirernent5 of the Ch3ritable Trust. The major risk is the continuation of support from The Society which is built into the Inn's annual budgeting proce55. and confirmations of support svfficient for the charity to adopt a going concern basi5 have been received. plans for Futvr• P•riods The Trustees have no plans to change the current policy of the charity which will continue to supptsrt the Chapel, the Education Oepartment and the Library. Senior executive pay All employees are jointly employed by the Trust and The Society. Trustees rely on The Society to determine the appropriate remuneration of senior execvtives taking into consideration industry and sector comparative benchmarks. Financial R•vi•w All revenues, supplemented by significant grant5 from The Society, are used for direct charitable activities. Administrative Services are provided by The Society without charge. Pension, the ultimate policy making body ol The Society, has provided undertakings to the Charitable Trust Fund to enable it to continue its activitie5. During the year the Charitable Trust received doriations from The Society tota11ing £l.9m 12019.. È2.Sml. As a result of this reduction the budgeted annuJl grant to the Scholarships Trust was not made. Operational expenditUTe during the year fell by 5.7%. This was primarily dve to a reduction in the cost of education events, the majority of which were cancelled due to the pand&mic. At the end of the year total funds were £452.832 12019.. £434,149), A comparison with the previous year 15 set out below.. Expenditure 2020 2019 The Chapel Education (excluding scholarships) Library, archives and modern records Operational Expenditvre Grant to Gray's Inn Scholarships Trust 64,053 815,788 1,090,317 1,970.157 75,942 1,009,941 1,004,709 2,090,593 675,000 Total Expenditure 21970 157 22 765 593 Reserves Policy The Trustees have considered forecasts of future expenditure of the Trust together with the commitment of The Society to provide annual donations to meet this expenditure. They are satisfied that the current level of reserves is adequate to support ongoing expenditure. The policy of the Trvst 15 to rnJintain a modest level of reserves reflectirig The Society's financial Strength and formally stated comniitment to fund the Trust. The trv5tÈes aim to maintain a minimum of É200,000 in unrestricted reserve5. At 31$1 December the Trust held E374,428 in unrestricted reserves. The assets ol the Trust consist of cash. which is held at a level to at least equal the Trust's endowment. and a current account with The Society.
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 Trv5tee5' Report {Continvedl statement of Tiust•e$' R¢sponsibiliti¢s The Trustees of the Charity are required to prepare for each financial year financial Statements which observe the prineiples and methods of the Charities SORP and which give a true and lair view of the state of affair5 01 the Charity and of the incorning resources and application of resources ol the Charity for that period. In preparing those financial statement5, the Tru5tee5 are required to.. select 5Ultable accountin9 policie5 and then apply them con515tentlyi make judgements and estimates that are reasonable and prudent- state whether applicable accounting 5tandard5 have been folltswed, 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 this basis applies. The Trustees are responsible for keeping proper accounting record5 which disclose with reasonable accuracy at any time the lin3rFcial position ol the charity and to enable them to ensure that the financial statements comply with statutory requirement5. They are also Fe5pon5ible for 5alegvarding the 255ets of the Charity and hence for taking reasonable Steps for the prevention and detection of fraud and other irregularitie5. Approved by the Trustees on 8TH June 2021 and Signed as authorised on their behalf by= Trustee
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 Independent auditor's report to the TfU5tees ot The Honourable Society of Gray'5 Inn Trust Fund Opinion We have audited the financial statement5 of The Honourable Society of Gray'5 Inn Trust Funds for the year ended 31 December 2020 which comprise Statement of Financial Activities, Balanee sheet, cash flow statement and notes to the financial 5tatement5. including a summary of significant accounting policies. The financial repoitlllg frarnework that has been applied in their preparation 15 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 A¢ceptecl Accountln9 Practice). In our opinion, the financial statements.. give a true and fair view ol the state of the charity's affairs a5 at 31 December 2020 and ol the charity's net movement in funds for the yejr then ended", have been properly prepared in accord8nce with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accord3nce with the requirement5 01 the charitie5 Act 2011. Ba515 for opinion We have been appointed as auditor under section 144 01 the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our Jvdit in accordance with International standards on Avditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit ol the financial statement5 section of our report. We are independent of the charity in a¢¢ordan¢e with the ethi¢Èl requirements that are relevant to our audit of the Iinan¢i31 statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirement5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating tg going concern In auditing the financial 5taternent5, we have concluded that the Trustee5' V5e ol the going concern basis o18ccounting in the preparation of the financial statements is appropriate. Based on the work we have performecl. we have not identified any material un¢ertaintie5 relating to events or conditions that, individvally or collectively, may east significant doubt on the Charity's ability to continue as a going concerr) lor a period of at least twelve month5 from when the financial Statements are authorised for issue. Qvr responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Other information The Trustee5 are responsible lor the other information. The other inftsrmation comprises the information inclvded in the Trustees, Annval Report. 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 assvrance conclusion thereon. In connection with our audit ol 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 tnisstatements, we are requirecj 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. Matter5 on which we 8re required to report by •x¢option We have nothing to report in respect ol the following Matters in relation to which the charities IAccovnts and Reports) Regulations 2008 require us to report to you if, in our opinion.. adequate accounting record5 have not been kept by the charity. or sufficient accounting records have not been kept., or the charity Financial statements are not in agreement with the accounting records and returns. or we have not received all the information and explanations we require lor our audit. io
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 Ind•p•nd•nt auditor'5 report to th• Trustees of Tht Honovrable Society of Gray's Inn Trust Fund l¢ont'd) Responsibilitie5 of Trustees for the finaneial statements As explained more fully in the Trustees, responsibilities statement Set out on page 9, the Trv5tee5 are responsible for the preparation of the financial statements and for being Satisfied that they give a true and fair view, arid for such internal control a5 the Trustees determine is nece5saiy to enable the preparation of financi315tatements that are free from material mi5Statement, whether due to fraud or error. In preparing the fin3n¢ial statements, the Trustees are responsible for asse551ng the charity's 2bility to continue a5 a going concern, disclosing, as applicable, matters related to going Concern and using the going concern basi5 of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realisti¢ alternative but to do so. Auditor's responsibilities for th• avdit of the financial statements OUT objective5 are to obtain reasonable assurance Jbout whether the financial statement5 a5 a whole 8re free from material rni55tatement. whether due to fraud or error, and to 155ue an auditor's report that inclucles our opinion. Reasonable assurance 15 a high level of assurance, but is not a guarantee that an audit condu¢ted in accordance with ISAS IUKI will always detect a material misstatement when it exist5. Misstatements can arise from Ifsud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decision5 01 users taken on the basis of these financial statements. Irregularities, including fraud, are in5t3nces of non-compliance with laws and regulations. We design procedures in line with our re5ponsibilitie5. Outlined above, to dete¢t material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Based on our understanding of the charity Ènd the environTnent in which it operates. we identified that the principal risks ol norF-compliance with laws and regulation5 related to compliance with the Charity SORP in the preparation ol the Jccounts and we considered the extent to which non- compliance might h3ve a material effect on the financi21 statements. We a150 corisidered those laws and regulations that have a direct impact on the prepaT8tion ol the financial statement5 such as Charities Act 2011. We evaluated management's in¢entive5 and opportunities for Iravdulent manipulation of the financial statements (including the risk of override of controls), and deterrnined that there were no such risks. Our procedures included the following.. Inspecting correspondence with regulators and tax authorities, and minutes ol trustee meetings,. Discussions with manJgement including consideration ol known or suspected instances ol non- compliance with laws and regulation and Iravd both at planning and at completion., Evaluating management's controls designed to prevent and detect irregularities., Identifying and testing journa15 process by management in the preparation of the financial 5tatements,' and Challengln9 3SSUmPtions and judgements made by mana9ement in their critical accounting estimates. A further description of our responsibilities for the audit of the financial statements 15 located on the Financial Reporting Council's website at.. www.Irc.org.uk/auditorsrespon5ibilities. This description forms part ol our auditor'5 report. Use of our report This report is made solely to the charity'5 Tru5tee5, as 3 bocly, in accordance with section 144 01 the charities Act 2011 and regulations made under section 15L ol that Act. Our audit work has been undertaken so that we might State to the charity'5 Trustees those m8tters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by IJW. we do not accept or 355ume respoT)sibility to anyone other than the charity's Trustees as a body for our audit work, for this report, or for the opinioris we have formed. Haysmacintyre LLP 10 tlueen Street Place Statutory Auditors London EC4R 1AG Datt.. 22 luly2021 li
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 STATEMENT OF FINANCIAL ACTIVITIES 2020 2019 Total Endowment Restrictsd UfflrestrKted Not•s INCONE ANPENDOWNENTS FROM Oon*ion5 and Legacies The Honourable Societyof Gragi Govemmeni Giant5 Other9rants and donations 1,880,000 39.580 50.812 1,3BO.QOO 59.580 50,812 2,5,000 32,1)01 Sub-total dts)atiOn5 and Iggacigs 1 910392 1 970 392 532.Q01 2,707 15.081 2,767 15,681 7.516 43.898 Course Fees 18,44B 18.448 S1,414 TOTAIINCOME É1 988 84Q El,988.8ao É2 $84 929 EXPENDrruRE ON cHARABLE ACmVrnE5.' Running enhancing Graw's Inn Chapel Advancemeni olLegal Educatien 6fj,053 815,188 1.090,317 64.053 815,788 .090,317 75.942 .684.941 1,004.709 TCSTAL EXPENOITVAE £2 705 S93 NETINCOME/EXPENIXTVRE 18.683 18,683 1180.6041 RECONCIUAfQN OFFIJNDS Total funds brought larward 78,404 n.883 285.862 434,149 614.813 rot•lhmds Girrl•d IDrward É78 404 E502 54S £1? 852 £&54,149 There were no recognised gains or losses other than those shown in the above Statement of Financial Activities. The note5 on poges 15-19form port of thefinonciol stutement5. 12
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 8ALANCE SHEET AT 31 DECEMBER 2029. Note5 2020 2019 FIXED Assrrs Silver ornaments (Millar beque5tl 3,200 3,200 URRENT ASSETS Sundry debtor5 05,350 241,579 Bank balance 123,699 78,219 329,049 319,798 CURRENT ACCOUNT The Honourable Society of Gray's Inn 205,597 196.365 CURRENT LIABILfflE$ Creditors 185.0141 185,2141 NET CURRENT ASSETS 1449,633 430,95D NET ASSETS £452 832 £434,149 FUNDS Endowment 78,404 78,404 Vnrestricted 71,883 71,883 Unrestricted 302,545 283,862 £452,832 £434,149 Approved by the Trustee5 on 8th June 2021 and signed a5 authorised on their behalf by.. Trustee.. 13
THE HONOVRABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 STATEMENT OF CASH FLOWS FOR YEAR ENDING 31 DECEMBER 2020. 2020 2019 Net movetnent in funds 18,683 1180,6641 11.5141 166,3461 112,2581 9,017 Deduct.. interest income shown in investing activities Decrea5e/lin¢rea5el in debttsrs Increase in current account with GTry5 Inn In¢rease/ldecreasel in creditors 36,229 19,2321 12001 Net cash provided by operating activites 45.480 1251,7651 Cash flows from investing activities 1,514 Iricrea5e in cash and cash equivalents in the year 45,480 1250,2511 Cash and cash equivalents at the st8rt of the year 78,219 328,470 Total cash and cash eqvivalents at the end ol the year £123,699 É78,219 14
THE HONOURAE+LE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 Note$ to the A¢covnts 1. ACCOUNTING POLICIES 181 Gener81 Information The Gray's Inn Trust Fund 15 a Charitable Trvst registered with the Ch3ritie5 Commission. It is incorporated in the United Kingdom and its fegi5tered address 15.. Treasury Office, 8 South Square, Gray's Inn, London WCIR SET. Ibl Basis Of preparation and a5$855mgnt Of 90in9 eon¢•rn The ac¢ovnts (financial statementsl have been prepared under the historical cost convention with items recognised at cost or transaction value unless Otherwise stated in the relevant notel51 to these 3ccount5. The fin3ncial statements have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Chaiities prepJring their a¢¢tsunts in accordance with the Financial Reporting Stand$rd applicable in the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014 and the Financial Reportiri9 Standard applicable in the UTrited Kingdom and Republic of Ireland IFRS 1021 and the Charitie5 Act 2011, The Trust ¢onstitutes a public benefit Èntity a5 defined by FRS 102. The Tru5tee5 consider that there are no material uncertaintie5 about the Trust's ability to Continue as a going concern. The Trustees have obtained confirmation from The Society that they have the mean5 and intention ol fund the operations of the Trust lor at least 12 months from the dJte these finan¢iJl 5tJtements are signed. In preparation ol the Jccount5 there are estimates relating to prepayments and accruals which are non-complex in nature. None of the estimates are material to the accounts. (cl Grants Grarits are charged as expenditvre in the year they are awarded. Idl Expenditvre The expenditure of the charity is directly allocated to the charitable èetivity to which it relates or to the cost of generatln9 funds or governance, a5 appropriate. Where support costs are incurred these are apportioned to the appropriate he2dings (see Note 2 below). (•) Financial Instrum¢nt$ The Trust only enters into basic financial instruments transactions that result in the recognition ol financi31 assets and liabilitie5 like trade ancl other debtors and creditors, loan5 from barik5 and other third parties, loans to related parties and investments in non- puttable ordinary shares. (fl Creditor5 short term creditors are measured at the transaction price. Other financial liabilities are me3sured initially 3t fail v3lue, net of tran5ÈCtion costs, and are measured subsequently at amortised cost using the effective interest method. Ig) Debtors Short term debtor5 are measured at the transaction price. le55 any impairment. Loans receivable are measured initially at fail value, net ol tr3risaction costs, and are fneasured subsequently at amortised cost Using the effective interest method, less any impairment. Ihl Provisions Provisions are made where an event ha5 taken place that gives the Charitable Trust a leg31 or constructive obligation that probably require5 Settlement by a transfer of economi benefit. and a reliable estimate can be made of the amount ol the obligation. Provisions are charged as an expense to the Statement ol Financial Activities in the year that The Stsciety becomes aw>re of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet. li) Government Grants The Trust has Claimed fvnds under the Government's Coronavirus Job Retention Scheme. 15
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 Not•$ to th• Aecovnts (Continutd) HARITABLE EXPENDITURE 2020 Total chap•l Edvcation Library Direct C0515 Staff costs Books 2nd publications Event Costs Other 22,990 505,588 355,862 519,800 884,440 519,800 165,523 101,990 1,6n.753 165,523 42,171 713,282 22,097 45.086 37,723 913,385 Grant Fvnding The Gray's Inn Scholarships Trvst Other grants and awards 4,950 4,950 10,950 10.950 6,000 Support ¢osts InforTnation Technology Space Costs 28,004 51,700 119,232 170,951 79,704 207 750 18.966 18.966 97.556 287,454 £014,053 £815 788 ,090,317 £1,970,157 2019 Total chapel Education Libr8ry Dir¢¢t ¢osts Staff costs Books and publicat10nS Event Costs other 23,027 469.174 347,L08 446,863 839.609 446,863 355,967 131,044 1.773,483 355,967 63,408 888,549 ,97 57,001 33,663 827,933 Grant Funding The Gray's Inn Scholarships Trust Other grant$ and awards 675,000 23.926 698,926 675.000 29.926 704.926 6,000 6,000 Support ¢ost$ Information Technology Space Costs 28,004 51,700 119,076 170,776 79,704 207.480 287,183 18,942 97,1465 £75,942 £1.684,9&1 ,0114,709 £2,765,593 Staff costs are more fully detailed in note 7. Educational events are undertaken both within the Gray's Inn site and at external venues. The Trustees Report includes details ol event5 undertaken in 2020. Additional disclosvres regarding grant funding are given in note 6. Support costs are allocated on the basis of the numbers of compvters in use for IT and on the basis of square footage lor Space c05t5. 16
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMP*ER 2020 Notes to the Accounts (Continued) MOVEMENT IN FUNDS Millar Boquest R Hare G•noral Fund Beqvest Totsl alance at l Jan 2020 Total Income Trust running Costs Scholarship donation 78,404 71,883 283.862 1,988.840 11,970.1571 434.149 1,988,840 11.970.1571 alance at 31 Dec 2020 £78 404 £Th,883 £302,545 £452,832 R Hare Bequest General Fund Bequest Total alance at l Jan 2019 Total Income Trust running costs Scholarship donation 78,40 71.883 464,526 2.584,929 12,090,593) 1675,0001 61&,813 2,584,929 12.090,5931 1675,0001 Balance at 31 Dec 2019 £78,404 £71 883 £283,862 £434,149 This was created with a beqve5t from the estate of Williarn James Kinnear Millar to benefit the chapel. EIDThiS was created as a bequest from the estate of Rosina Hare QC. TAXATION A5 a registered charity, the Charitable Trust is exempt from taxation. TRUSTEES. REMUNÉRATION AND RELATED PARTY TRANSACTIONS During the year no trustee received any remuneration or expenses from the Charitable Trust Fund 12019.. £nill. There were no related party transactions in the year12019.. £nill GRANTS PAYABLE No grant was made to the Scholarships Trust to fvnd the award of scholarships to 5tudent5 12019.. £675,000). 17
THE HONOIJRABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECEMBER 2020 Not•s to the Accounts (Continued} STAFF COSTS 2020 Total chapèl Education Library Salaries National Insurance Pension Costs Other costs 19,945 968 1,367 no 377.352 38,792 38,817 50.627 280,297 25,562 27,762 22,241 677,594 65,322 67,946 73,578 £22,990 £505,588 £355,862 £884,440 2019 Tgt•l chapel Education Library Salaries National Insurance Pension Costs Other costs 20,160 1.028 1,274 565 339,335 36,399 25,449 67,992 263.432 26,474 22,519 34,983 622,927 63,900 49.242 103,540 £23,027 £469 174 £347 408 £859,609 The Average number of employees in 2020 was 19 12019.. 17). The tot81 compensation of key management personnel was £211,183 12019.. £203,1611. One employee received total employee benefits in excess of £40,000 but below £50,000. A further employee received employee benefits in excess 01 É50,000 but below £60,000. A further employee received benefit5 in excess of £60.000 but below £70,000. These benefits exclude employer pension contributic>ns. Pension costs represent the Charitsble Trust's share ol cash paid by The Society in respect ol pen510ns For staff wholly employed on charitable Trust activities. These sums are paid either to the Honovrable 50¢iety ol Gray's Inn Pension and Life Assurance Scheme or to 8 third party pension provider. DEEITORS 2020 2019 Prepayment5 and accrued income Sundry Debtors 139.924 65.426 £205,350 172,729 68,850 £162,118 CREDITORS 2020 2019 Sundry creditors and accrua15 £85,014 E85,214 18
THE HONOURABLE SOCIETY OF GRAY'S INN TRUST FUND YEAR TO 31 DECE148ER 2020 Not95 to the Accounts (Continued) 10. FINANCIAL INSTRUMENTS 2020 2019 Winancial A55et5 ¥inancial Assets measured at amortised cost £65,426 £68,850 Kinaneial knabilitie5 Financial Liabilities measured at amortised Cost E85,014 £85,214 Financial a55ets lat amortised costl comprise accrved income and sundry debtors. Financial liabilities lat amortised ¢05tl comprise accrua15 and sundry creditor5. PENSIONS Employees whose employment comrnenced before 1st April 2006 are members ol The Honovrable Society of Gray's Inn Pension & Life Assurance Scheme which 15 3 defined benefit, non-eontributory pension scheme. (Employee5 whose employment cotnmenced after 1st April 2006 ber)efit from defined contribution pension arrangements). Employees have a joint contiact ol emploiyment with The Society and the Charitable Trust. The charitable Trust has no liability to make contribvtlOn5 or tts make good any deficit in the scheme, this being the liability of The Society. The requirement to di5c105e information. as required by FRS102, is therefore unnece55ary and not provided. The allocated pension contribution charge for the year is disclosed within note 7. 12. SUPPORT & GOVERNANCE COSTS The Society provide5 all support ar)d governance services but makes no charge. practical to quantify the value of these donated services. On the basis that the valve 15 ntst likely to be material, a value of nil ha5 been ascribed to the donated services these accounts. 13. POST BALANCE SHEET EVENTS The Trustees have received eonlirmation from The Society that they can and will meet all operational c05t5 of the Trusts for the foreseeable future. 19