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2023-07-31-accounts

UNIVERSITY OF SUNDERLAND DEVELOPMENT TRUST

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

Registered charity No. 1041658

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University of Sunderland Development Trust (Registered charity number: 1041658)

Contents

Page
Reference and administrative details 2
Trustees’ report 3 - 8
Statement of Trustees’ responsibilities in respect of the Trustees’ Report and the financial 9
statements
Independent auditor’s report to the Trustees of University of Sunderland Development Trust 10 – 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the financial statements 17 - 28

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University of Sunderland Development Trust (Registered charity number: 1041658)

Reference and administrative details

Trustees Mrs M Fay CBE DL Hon J D A Ramsbotham, CBE DL (retired 20 November 2023) Sir D R Bell, KCB DL Mr M McArdle, BEng (Hons) Ms S Forster (Treasurer) Mr A Hallimond

Charity registered office

The Trust's registered office is:

Edinburgh Building University of Sunderland Chester Road SUNDERLAND SR1 3SD

Trust Secretary Mrs D Reveley

Independent Auditor

RSM UK Audit LLP 1 St James Gate Newcastle upon Tyne NE1 4AD

Bankers

Barclays Bank plc 53 Fawcett Street SUNDERLAND SR1 1SD

Investment Managers

Brewin Dolphin Ltd Time Central Gallowgate NEWCASTLE UPON TYNE NE1 4SR CCLA Fund Managers Limited Senator House 85 Queen Victoria Street LONDON EC4V 4ET

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University of Sunderland Development Trust (Registered charity number: 1041658)

Trustees’ Report

The Trustees present their annual report for the year ended 31 July 2023. The accounts have been prepared in accordance with the Charities Act 2011 and the Statement of Recommended Practice (SORP) 2019: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Structure, Governance and Management of the Trust

Trust Objectives

The University of Sunderland Development Trust is a charitable trust established by deed dated 9 August 1994. Its objective is to assist and promote the development of the University of Sunderland. It seeks to achieve this objective by raising funds from donations, giving and gift agreements, sponsorships, legacies and other gifts and applying them for appropriate purposes.

The Trust Deed is currently being updated and a draft has been approved by the Board of Trustees. Once it has been approved by the Charities Commission it will come into force, but this is not expected to be before these accounts are signed.

Recruitment and appointment of Trustees

Trustees are recruited as required from the University of Sunderland’s stakeholder groups. These include the Board of Governors, staff, alumni, patrons of the City of Sunderland and the local business community.

Trustees are appointed for a term not exceeding three years, for a maximum of three successive terms.

The Development Trust is required to have a minimum of three, and no more than nine, Trustees. Should the number of Trustees fall below three due to events beyond the control of the Trustees, any Trustee who ought to be retiring, or is ineligible for further re-appointment due to terms already served, will be granted a further 12 months term of office to enable new Trustees to be recruited.

The power of appointment and removal as to three of the Trustees (excluding the Vice-Chancellor) is vested in the Board of Governors of the University and as to any additional number of Trustees in the surviving or continuing Trustees (excluding any retiring Trustees). All new Trustees have an induction meeting with the Honorary Secretary or the Governance Officer. The authority to make decisions such as grants is made by awarding panels. The verification of fundraising projects is agreed by the University and reported back to the Trust quarterly. For gift / grant / donation acceptance:

Relationship with the University of Sunderland

The Trust exists to support the University of Sunderland and its students and as such co-operates with the University in pursuit of its aims and objectives. To this end the University makes a gift in kind of staff and resources to the Trust to pursue its objectives and the Trust reimburses the University for a proportion of these expenses. The University and its students are the beneficiaries of the Trust’s grant-making activities.

Relationships with external bodies

The Trust is registered with the Fundraising Regulator and as such must meet certain minimum requirements as to its ethical behaviour. These are encapsulated in the Trust’s ethical policy, a copy of which is available upon request. No third parties have undertaken any fundraising on behalf of the Trust or the University.

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University of Sunderland Development Trust (Registered charity number: 1041658)

Organisational Structure

Day to day operational issues relating to the Development Trust are managed by the University’s Development and Alumni Office, which comes under the portfolio of the Director of External Relations, reporting to the University Secretary. The Board met on three occasions during the financial year.

Public Benefit

The Board of Trustees has referred to the Charity Commission general guidance on public benefit when reviewing the aims and objectives of the University of Sunderland Development Trust and is satisfied that it meets the public benefit requirements.

Aims, Activities and Performance of the Trust

Aims of the Trust

The Development Trust seeks to support the University’s ambitions to be regarded as a high-quality civic university, in a city and region that is re-inventing itself, offering life-changing opportunities and transformation.

Fundraising Activities

The Development Trust supports three key areas of fundraising activity:

Achievements and Performance during the year

The Development Office manages a number of philanthropic scholarships available for undergraduates, masters and recently graduated students.

Over the past year, we have raised £5,475,228 for The University of Sunderland Development Trust and the University itself, for the purpose of supporting The University of Sunderland. £3,872,295 has been received directly into the Trust, £1,500,000 was received from John Dawson directly into the University and there was £102,933 received into the University of Sunderland for restricted programme activities and a gift in kind in the form of equipment.

A number of donations and grants have been received in support of scholarships, projects and capital work. The funds raised have enabled the University to meet its objectives to be student focussed, professions facing and society shaping.

Notable gifts include:

£5,000,000 - the largest donation ever received to the University from alumni John Dawson. This gift will establish the John Dawson Drug Discovery and Development Research Institute, as well as making a permanent endowment to support bi-annual PhD scholarships in perpetuity. £3.5m of the donation is recognised in this set of accounts and £1.5m is in the University 2022/23 accounts.

£75,000 from three Trusts and Foundations to support the Giant Mars and Moons Project in partnership with The Aldrin Family Foundation, to support the Widening and Participation Team’s outreach work in local primary schools; and

Our ‘We Care at Christmas’ appeal ran for the third time in December 2022 helping the University’s strategic widening participation goals to support care-experienced and estranged students at its Sunderland and London campuses, raising over £5,000 .

The Development and Alumni office continues to manage over 31 scholarships available for undergraduates, masters and alumni and this year awarded 53 scholarships and awards totalling £47,961 . The scholarships include established funds such as The Futures Fund (supporting excellence and opportunity) and the Sir Tom Cowie Scholarships (honouring the wishes of Sir Tom Cowie, a major

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University of Sunderland Development Trust

(Registered charity number: 1041658)

Achievements and Performance during the year (continued)

benefactor to the University) as well as new gifts including The Global Challenges Scholarships and the Sir Bob Murray Health Scholarships.

The Trustees encourage feedback from beneficiaries, and they have received a number of letters and reports from students who have received scholarships or bursaries from the Trust, all of which were very appreciative. Extracts from a few of these are included here:

“ I had been experiencing financial hardship, forcing me to work even on the days that I had to attend classes at the university. After receiving the funds, I made the decision to give my whole attention to university instead of working physically and mentally exhausting shifts in factories, keeping only my Saturday part-time job in a pharmacy to get additional experience. The scholarship has also given me the peace of mind and stability I need to fully enjoy my academic pursuits. I no longer worry about whether I will be able to afford my rent or pay for the necessities of life ”. Hope Winch Scholarship Recipient 2022

“ Attaining this award has strongly impacted my studies and business plan. My confidence, resilience, motivation, and skills have grown immensely. I am so grateful for the opportunities the University of Sunderland have given me. ” Mike Davies Innovation scholar 2022

“ Santander’s Funding is not just funding. It is not just digits in my bank account. It is time… and more. To earn one thousand pounds, one may have to work even up to one hundred hours. Job applications are significantly more stressful and time consuming, in comparison to a Santander Funding application. Never mind the preparation needed prior to work, or the nightmare of commuting. Uniform maintenance and potential work training that need to be done in our free time. Commuting is not cheap, often the necessary work uniform is not provided, or is incomplete. Thanks to Santander, I was spared all of this during a very uncertain and sometimes volatile first year of Medicine. I didn’t have to worry about looking for a part time job. I was saved the stress of being torn between responsibilities. I could save my attendance and days off from university for more important family and health matters. ” Santander scholarship recipient 2022.

This year also established the Circle of Benefactors to thank our donors. The circle is an expansion of the existing Vice Chancellor’s circle and provides a stewardship plan to thank all donors giving more than £5,000 in their lifetime.

Financial Review 2022/23

Income from Donations to the Trust

For the financial year ended 31 July 2023, donations of £3,872,295 were recognised. A one-off donation of £3,500,000 was committed from John Dawson to the Trust to set up the John Dawson Drug Discovery and Development Research Institute. Other donations totalled £372,295 which is an increase of £256,045 on the previous year and some of these have been detailed above. This demonstrates that the Trust maintains a reliable recurrent income stream in addition to the income generated from larger fundraising campaigns.

Donations have increased by £3,756,045 from the previous financial year, which is mainly due to the very generous donation from John Dawson. This is to be made up of two endowments: one for the set-up of the Drug Discovery Institute and the other (when received in December 2023) will fund PhD students biannually. All endowments are held in the accounts of the University Investment Managers, CCLA and Brewin Dolphin and will generate investment income in future years.

Expenditure

Expenditure on charitable activities has reduced by £163,620 from the previous financial year but the Trust is looking to better promote the grants available to students and staff, and to simplify the application process, which should increase the number awarded.

The Trust has no employees and receives in-kind support from the University to cover the majority of its running costs. The Development Trust makes a payment of £3,850 to the University per annum as a contribution towards administrative costs.

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University of Sunderland Development Trust (Registered charity number: 1041658)

Investment Performance

Under the provisions of the Trust Deed, the Trustees have discretionary powers to invest or apply monies in investments or property of any nature. All investments are made in accordance with those powers. The Trustees consider that the performance of the Investment Managers is satisfactory given the current market conditions.

Investment income of £59,783 is a decrease of £3,262 as compared to the previous financial year, with the fair value of investments held declining during the financial year by £28,512 in total. For the endowments the decrease was £33,683, with £33,799 of the decline attributable to the investment held with CCLA, which has been offset by a gain on the Brewin Dolphin investment of £116. Restricted funds benefitted from an increase in value of £2,813 and the unrestricted funds increased in value by £2,358. Both of these investment funds are held with Brewin Dolphin.

The market conditions are improving, and it is anticipated that there will be a positive return on the investments in both companies. The decline in the fair value of investments is disappointing but is less than in the previous financial year, and the Trustees acknowledge that it is to be expected in the short term given the current economic climate. It is also important to note that the reduction in fair value is an unrealised loss and because the Trust’s investment strategy is to hold these funds long-term, there is currently no adverse impact on the Trust’s financial position as a result of this. The Trustees are cautiously optimistic that the value of investments will stabilise and improve over the longer-term.

Overall Financial Position

The overall result for the year is a net gain in funds of £3,574,950, in comparison to the net loss in funds of £414,417 recorded in the previous financial year. This is mainly due to the donation from John Dawson.

When non-recurrent transactions are removed from the respective financial years, the result is a net gain of £74,950 in the current financial year, compared with a net loss of £79,417 in the previous financial year. The improvement in the overall result of £154,367 between the current and previous financial year is primarily due to increased donations, offset by the unrealised loss on investments, however this does not impact on the ability of the Trust to continue to meet its charitable objectives.

Overall, the financial performance of the Trust is positive and comparable with the previous financial year, demonstrating the Trust’s resilience and providing confidence in the ability of the Trust to meet its charitable objectives.

Investment policy

The Trust’s Investment Managers, currently CCLA and Brewin Dolphin, are instructed to produce the best financial return within an acceptable level of risk. The Trust holds assets to fund income and capital expenditure with the intention that existing assets will be applied as such over the next five years. Therefore, assets are invested to limit risk to capital although some volatility in both capital and income can be tolerated if consistent with expectations.

The Trust's assets can be invested widely in accordance with the Trust’s general power of investment as set out above but are deposited with institutions with a minimum Standard & Poor long-term credit rating of A‐ or diversified by asset class which can include cash, bonds, equities and any other asset that the Trustees deem suitable.

Reserves Policy

The Trust aims to work with the University to develop unrestricted reserves in support of major strategic projects at the University. The Trust acknowledges that it must also respond to donor wishes and that some funds may be restricted for specific purposes. The primary focus of fundraising activity in the coming years will be to raise funds to provide undergraduate and postgraduate students with a transformational education, and also ongoing support for capital developments, which will enhance the student experience and support the University’s strategic ambitions.

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University of Sunderland Development Trust (Registered charity number: 1041658)

Reserves Policy (continued)

There are three types of reserves: unrestricted (£471,027), restricted (£2,046,588) and endowments (£3,845,711). The unrestricted reserves are available at the discretion of the Trustees to support the University activities. Details of the individual funds that constitute the restricted and endowments reserves are given in note 9 of the financial statements.

Risk Assessment

The main risks to the Development Trust are loss of investment value and reduction in donation income. Rising inflation and decreasing household income in real terms have continued to contribute to a decline in market confidence, which negatively impacts the value of investments held. The Trust’s investment strategy is to invest long-term and therefore the Trustees expect that the adverse impact on investments caused by current market conditions will be ameliorated in the long-term. Although donation income was relatively high in 2022/23, this was primarily due to a single donation of several million pounds to the Trust and the University. Donations of such generosity are relatively rare, and the Trust takes a cautious approach to reliance on donation income when planning its financial forecasts and future spend.

The Trust has a risk register in place, which feeds into the University’s wider risk management process. The risk assessment from the register is reported to the Trustees annually to enable them to review risk. The day-to-day risks are managed in line with the University’s own risk management procedures.

Future plans

The Vice Chancellor provides a regular briefing to the Trustees at each meeting about current development at the University to ensure the Trust is well placed to decide on where it can best support future activities.

In June 2022, a piece of consultancy work was carried out by Cairney and Company looking at producing a compelling “Case for Support” within the context of the University Strategy. This consultancy followed a previous project by the same company in 2021, looking at how the processes of the Development and Alumni Office could be enhanced to improve fundraising for the Trust.

In the shorter-term, the team are working with the Executive and the new Director of External Relations to embed the verification of fundraising projects into the planning processes to help with cross-organisational collaboration.

Going Concern policy

The financial statements have been prepared on a going concern basis which the Trustees consider to be appropriate. The Charity has funds available in the unrestricted reserves to meet the awards the Trustees have planned, and the restricted fund and endowments are monitored on a regular basis, with quarterly reports produced for the Trustees. Awards and payments out are governed by a panel, with Trustees oversight and are only made where money is already held so there is no risk of the Trust becoming insolvent.

The Charity is in a net asset position of £6.4m at the year-end and is in a strong cash position, with longer term investments made with well-established investment managers.

Consequently, the Trustees are confident that the Charity will have sufficient funds to continue to meet its liabilities as they fall due until at least 31 July 2026 and consequently have prepared the financial statements on a going concern basis.

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University of Sunderland Development Trust (Registered charity number: 1041658)

External Auditor

In so far as the Trustees are aware:

RSM UK Audit LLP were appointed as auditor on 5 June 2023 and offer themselves for re-appointment.

Approved by the Trustees and signed on their behalf

Trustee Signature

Name & Position Margaret Fay CBE DL, Chair of the Trustees

Date: 24 November 2023

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University of Sunderland Development Trust (Registered charity number: 1041658)

Statement of Trustees’ responsibilities in respect of the Trustees’ Report and the financial statements

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with 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).

The law applicable to charities in England and Wales requires the 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 income and expenditure of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. 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.

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Independent Auditors’ Report to the Trustees of University of Sunderland Development Trust

Opinion

We have audited the financial statements of The University of Sunderland Development Trust (the ‘charity’) for the year ended 31 July 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

Basis for opinion

We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Trustees’ Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.

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Independent Auditors’ Report to the Trustees of University of Sunderland Development Trust

Other information (continued)

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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in

the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 9, 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

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.

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Independent Auditors’ Report to the Trustees of University of Sunderland Development Trust

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk 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, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011 and the charity’s trust deed. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing journal entries throughout the period and other adjustments and evaluating the impact of significant exceptional transactions.

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

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Independent Auditors’ Report to the Trustees of University of Sunderland Development Trust

Use of our report

This report is made solely to the charity’s trustees as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RSM UK AUDIT LLP

RSM UK Audit LLP Statutory Auditor Chartered Accountants 1 St James’ Gate Newcastle upon Tyne NE1 4AD

11/12/23 Date: ___

RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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University of Sunderland Development Trust (Registered charity number: 1041658)

Statement of Financial Activities Year ended 31 July 2023

Unrestricted
funds		 Restricted
funds		 Endowment
funds		 Total funds
2023		 Total
funds
2022
£ £ £ £ £
Note
Income:
Donations 158,225 1,714,070 2,000,000 3,872,295 116,250
Investment income 3,840 4,583 51,360 59,783 63,045
Total income 2 162,065 1,718,653 2,051,360 3,932,078 179,295
Expenditure:
Cost of raising funds 3 (3,835) (2,331) (96) (6,262) (8,136)
Expenditure on charitable
activities		 4 (129,596) (162,290) (30,468) (322,354) (485,974)
Total expenditure (133,431) (164,621) (30,564) (328,616) (494,110)
Net income/(expenditure)
before gains and losses on
investments		 28,634 1,554,032 2,020,796 3,603,462 (314,815)
Net gain/(loss) on investments 5 2,358 2,813 (33,683) (28,512) (99,602)
Transfers between funds 9 - - - - -
Net movements in funds 9 30,992 1,556,845 1,987,113 3,574,950 (414,417)
Reconciliation of funds:
Total funds brought forward 9 440,035 489,743 1,858,598 2,788,376 3,202,793
Total funds carried forward 9 471,027 2,046,588 3,845,711 6,363,326 2,788,376
All operations are continuing.

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University of Sunderland Development Trust (Registered charity number: 1041658)

Balance Sheet As at 31 July 2023

Balance Sheet
As at 31 July 2023
2023 2022
£ £
Note
Fixed assets
Investments 5 2,557,468 2,581,734
Current assets
Debtors 6 16,313 16,403
Amounts Due from the University 6 11,030 -
Prepayments and Accrued Income 7 2,022,500 -
Cash at bank and in hand 1,792,107 232,786
3,841,950 249,189
Creditors:amounts falling due within one
year 8 (36,092) (42,547)
Net current assets 3,805,858 206,642
Total net assets 6,363,326 2,788,376
Funds
Unrestricted funds 9 471,027 471,027 440,035
Restricted funds 9 2,046,588 489,743
Endowment funds 9 3,845,711 1,858,598
9 6,363,326 2,788,376

The notes at pages 17 to 28 form part of these accounts.

Approved by the Trustees and signed on their behalf by

Trustees Signature

Name & Position Margaret Fay CBE DL, Chair of Trustees Date 24 November 2023

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University of Sunderland Development Trust (Registered charity number: 1041658)

Statement of Cash Flows
Year ended 31 July 2023
Year ended
31 July 2023		 Year ended
31 July 2022
£ £
Note
Cash flow from operating activities
Net income before losses and gains on investments 3,574,950 (414,417)
Adjustment for non-cash items
Loss on investments 9 28,512 99,602
Decrease in debtors 6 90 8,642
Increase in Intercompany balance 6 (11,030) -
Increase in Prepayments and Accrued Income 7 (2,022,500) -
Decrease in creditors 8 (6,455) (4,132)
Adjustment for investing or financing activities
Endowment income 9 51,360 49,318
Net cash inflow from operating activities 1,614,927 (260,987)
Cash flows from investing activities
Payments made for fixed asset investments 5 (8,611) (33,848)
Disposal of fixed asset investments 5 4,365 6,229
Endowment payments 9 (30,564) (20,732)
Endowment income 9 (51,360) (49,318)
(86,170) (97,669)
Cash flows from financing activities
Endowment payments 9 30,564 20,732
30,564 20,732
Increase in cash and cash equivalents in the year 1,559,321 (337,924)
Cash and cash equivalents at beginning of the year 232,786 570,710
Cash and cash equivalents at the end of theyear **1,792,107 ** 232,786

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University of Sunderland Development Trust (Registered charity number: 1041658)

Notes to the Financial Statements

1 Accounting Policies

Basis of accounting

The entity is registered as a Charity with the Charities Commission (registered number 1041658). Details of its registered office can be found on page 2 and details of its key operations and activities can be found in the Trustees’ Report starting on page 3.

The accounts have been prepared under the historical cost convention as modified by the inclusion of investments at fair value. The financial statement have been prepared in accordance with the Statement of Recommended Practice (SORP) 2019: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Trust constitutes a public benefit entity as defined by FRS 102.

Going concern

The financial statements have been prepared on a going concern basis, which the Trustees consider to be appropriate for the following reasons.

The Trust continues to have a steady income stream supported by “regular giving” donations, alongside plans in place for future fundraising campaigns, which will create larger, “one-off” donations to support specific initiatives. Payments are made from existing funds held, and are not made in anticipation of any monies to be received, so there will never be a deficit.

Cash flow forecasts are reviewed on an ongoing basis and are based on known regular giving donations and committed expenditure, alongside uncommitted anticipated student awards. This prudent approach to forecasting ensures that the Trust will always have sufficient cash to meet its expenditure needs. The forecasts do not include predictions of any larger, one-off donations or donations from planned fundraising campaigns; as such the cash flow forecasts are considered to be a worst-case scenario and it is considered that in reality the income will be higher than forecast. The forecasts are made in relation to the unrestricted funds only.

The current cash flow forecasts to 31 July 2026, show a closing cash balance of £110,000, in the unrestricted funds, which is around the Trust’s average annual expenditure.

The Trustees review the investments held on a continuous basis and make necessary changes to investment fund managers to ensure that all funds are held in optimal portfolios, which are anticipated to provide a sustainable future income stream despite the disruption to global markets. The Trustees remain committed to reviewing investments proactively to mitigate risks as they arise.

The nature of the Trust means that it has a low fixed cost base and has the ability to flex its expenditure based on the amount of income received, by reducing awards made to students if necessary; however, the Trustees do not envisage that this will be necessary based on the most recent performance as noted above.

Based on the above, the Trustees consider that the Trust is a going concern to at least 31 July 2026.

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University of Sunderland Development Trust (Registered charity number: 1041658)

1 Accounting Policies (continued)

Income

All income is accounted for once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Investment income represents amounts receivable from cash deposits and equity shares (dividends received) and is allocated to restricted and unrestricted funds according to the nature of the investment from which it is derived.

Resources expended

Resources expended comprise the costs of supporting charitable activities and projects. Applications for funding for a particular project are made by the University and approved by the Trustees prior to a major fundraising campaign beginning. Grants payable are accounted for when approved.

Costs of generating funds include bank charges and publicity costs. They also include the charity’s office running costs. These are borne by the University of Sunderland and a recharge is made to the charity to represent a notional charge for these services which is a flat rate of £3,850 per annum.

Costs of charitable activities consist of grants made by the charity to support its charitable aims and objectives. They also include the charity’s governance costs. Governance costs comprise statutory audit fees and the costs of accounts preparation. The costs of preparing the accounts are borne by the University of Sunderland, and an agreed sum is charged to the charity for this service. The allocation of governance costs is analysed in note 4.

Grants payable

Grants payable are payments made to the University of Sunderland or its students, in furtherance of the charitable objectives of the funds held on trust, primarily to assist and promote the University.

Grant payments are recognised as expenditure when the conditions for their payment have been met or where there is a constructive obligation to make a payment.

A constructive obligation arises when:

The Trustees have control over the amount and timing of grant payments and consequently where approval has been given by the Trustees and any of the above criteria have been met then a liability is recognised. Grants are not usually awarded with conditions attached. However, when they are then those conditions have to be met before the liability is recognised.

Where an intention has not been communicated, then no expenditure is recognised but an appropriate designation is made in the appropriate fund. If a grant has been offered but there is uncertainty as to whether it will be accepted or whether conditions will be met then no liability is recognised but a contingent liability is disclosed.

18

University of Sunderland Development Trust (Registered charity number: 1041658)

1 Accounting Policies (continued)

Cash flow

Because the income of the Trust exceeds £500,000 ,under FRS 102, the Trust is required to prepare a cash flow statement. This has been included in the accounts with the comparative year included.

Fixed Asset Investments

Investment assets are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value at the year end, being their market value. Movements in the value of investments are shown in the Statement of Financial Activities. Realised gains or losses on fixed asset investments comprise the difference between sales proceeds and opening market value (or purchase price if later). Unrealised gains or losses comprise the increase or decrease in value between the year-end and the opening balance sheet date (or purchase price if later). Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Short term investments

Short term investments comprise deposit accounts in which funds are invested up to a maximum of three months.

Debtors

Debtors are amounts owed to the Trust. They are measured on the basis of their recoverable amount.

Prepayments and Accrued Income

Where a donation is promised, but not yet received, the amount is recognised as accrued income in the year of the confirmed donation, in line with the latest financial reporting standards.

Creditors

Creditors are amounts owed by the Trust. They are measured at the amount the Trust expects to have to pay to settle the debt. Amounts which are owed in more than one year are shown as longterm liabilities.

Taxation

No provision has been made for taxation as the Development Trust's charitable status renders it exempt from UK direct taxation. Gift aid tax reclaimable from HM Revenue and Customs is shown as a debtor in the accounts.

Gifts in kind

Where gifts in kind can be reasonably quantified, they are included within the income and expenditure.

Funds structure

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Restricted funds are subjected to restrictions on their expenditure, imposed by the donor, or through the terms of an appeal.

Permanent endowments are held as a permanent capital fund to generate future income. The capital element cannot be utilised for any other purpose other than income generation. The use of the future income is restricted by the donor and is documented in a permanent endowment agreement, which has been authorised by the donor and Trustees.

19

University of Sunderland Development Trust (Registered charity number: 1041658)

1 Accounting Policies (continued)

Funds structure (continued)

Expendable endowments are held as a capital fund to generate income, until the Trustees decide to expend it. At the point at which the Trustees exercise the power to spend or apply the capital of the expendable endowment, the relevant funds become unrestricted funds or restricted income funds depending on whether the terms of the gift permit expenditure for any of the Trust’s purposes, or only for specific purposes.

Judgements and key sources of estimation uncertainty

The Trustees consider that there are no key areas of judgement or estimation in respect of preparation of these financial statements.

2 Income

In total, donations for the year were £3,872,295 (2022: £116,250), of which £1,714,070 was restricted (2022: £69,994); £158,225 was unrestricted (2022: £46,256); and £2,000,000 (2022: £nil) was in the form of an endowment, some of which will be received post year end.

Investment income totalled £59,783 (2022: £63,045), of which £4,583 (2022: £7,468) was restricted; £3,840 (2022: £6,259) was unrestricted; and £51,360 (2022: £49,318) was from endowment funds.

3 Cost of raising funds

Office running costs
Investment Manager Fees
Bank charges		 2023
£
1,850
4,366
46
______
6,262
_		 2022
£
1,850
6,163
123
______
8,136
______

There were no employees during the period. Management, development, treasury and administrative services have been provided by the University of Sunderland and £1,850 (2022: £1,850) was recharged to the charity as office running costs in respect of this. These were charged to the unrestricted funds.

4 Expenditure on charitable activities

The total support cost attributable to charitable activities is apportioned pro rata to the value of grants awarded. All governance costs were unrestricted (2022: all).

These are detailed in the table below:

20

University of Sunderland Development Trust (Registered charity number: 1041658)

4 Expenditure on charitable activities (continued)

Grants
Support and governance costs:
Preparation of accounts
Audit fee		 Grants:
student
£
188,597
1,235
9,187
_
199,019
_		 Grants:
staff
£
Grants:
University
£
4,162
112,715
27
738
203
5,490
_
_
4,392
118,943
_
_		 Total
2023
£

305,474
2,000
14,880
_
322,354
_		 Total
2022
£
476,174
2,000
7,800
_
485,974
_

Grants: student represent grants provided by the Trust to students of the University of Sunderland. Grants: staff represent grants provided by the Trust to the employees of the University of Sunderland.

Grants: University represent grants provided by the Trust to the University of Sunderland.

The costs are allocated on the percentage of the total cost of grants paid out split between students, staff and the University. For 2022/23 this was 61.7% to students, 1.4% to staff and 36.9% to the University. In 2021/22 the costs were split with 22.0% to students, 0.8% to staff and 77.2% to the University.

There were no employees during the period. Accountancy services have been provided by the University of Sunderland and £2,000 (2022: £2,000) was recharged to the charity in respect of this.

The auditor’s remuneration of £14,880 (2022: £7,800) related solely to the external audit. No nonaudit services were provided by the External Auditors. Audit fees are shown inclusive of irrecoverable VAT. The University will bear the cost of the external audit.

5 Fixed asset investments

Movement in fixed asset investments 2023 2022
£ £
Existing fixed asset investments at 1 August 2,581,734 2,653,717
Fixed asset investments purchased at cost 8,611 33,848
Net loss on market value of investments (28,512) (99,602)
Fixed asset investment disposals (4,365) (6,229)
_ _
Market value at 31 July 2,557,468 2,581,734
_ _

The fixed asset investments held at 31 July 2023 stated at their market value were:

2023 2022
£ £
CCLA COIF Charities Investment Fund 1,715,062
 1,748,862
Brewin Dolphin Limited 842,406 832,872
_ _

21

University of Sunderland Development Trust (Registered charity number: 1041658)

Market value at 31 July
5
Fixed asset investments (continued)		 2,557,468
 2,581,734

All fixed asset investments are classified as assets within the United Kingdom.

All fixed asset investments are stated at their fair value at 31 July 2023. Valuations are supplied by the external investment managers, Brewin Dolphin Limited, and CCLA Fund Managers Limited. All fixed asset investments are listed on a recognised stock exchange.

The significance of financial instruments to the ongoing financial sustainability of the Trust is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report.

The main risk to the Trust from financial instruments lies in capital markets, which can cause the capital value of the Trust’s portfolio to fluctuate. Such fluctuations are normal for portfolios designed to maintain their spending power in the face of inflation over the long term, because investments will be focused on assets such as company shares, that can go down as well as up, in value. These fluctuations in capital value do not directly affect the portfolio’s ability to generate a reliable income distribution for charitable expenditure from year to year.

The Trust’s investment strategy is to invest long-term and therefore the Trustees expect that the unrealised loss will be reversed in the future, when markets improve.

The Trust manages investment risks by retaining expert advisers, and it does not make use of derivatives or similar complex financial instruments.

6 Debtors

Accrued interest
Amounts Due from the University
7
Prepayments and Accrued Income
Accrued Income – Dawson Donation		 2023
£
16,313
11,030
______
27,343
______
2023
£
2,022,500		 2022
£
16,403
-
______
16,403
______
2022
£
-

This relates to a donation for a permanent endowment to be received in December 2023 and a tax rebate due from HMRC on the initial donation.

22

University of Sunderland Development Trust (Registered charity number: 1041658)

8 Creditors

Amounts due to University of Sunderland
Accruals
Accrued grants payable to students		 2023
£
-
14,880
21,212
______
36,092		 2022
£
11,050
7,800
23,697
______
42,547

9 Analysis of funds

Restricted funds relate to donations received which the donor has requested to be applied in support of specific activities or academic departments of the University.

Analysis of fund movements for the year ended 31 July 2023

Unrestricted
Restricted
Endowment		 Opening
fund balance
Incoming
resources
Outgoing
resources
Gains
and
losses
Closing fund
balance
£
£
£
£
£
440,035
162,065
(133,431)
2,358
471,027
489,743
1,718,653

(164,621)
2,813
2,046,588
1,858,598
2,051,360

(30,564)
(33,683)
3,845,711
2,788,376
3,932,078

(328,616)
(28,512)
6,363,326

Analysis of fund movements for the year ended 31 July 2022

Unrestricted
Restricted
Endowment		 Opening
fund balance
Incoming
resources
Outgoing
resources
Gains
and
losses
Closing fund
balance
£
£
£
£
£
478,959
52,515
(55,778)
(35,661)
440,035
872,428
77,462
(417,600)
(42,547)
489,743
1,851,406
49,318
(20,732)
(21,394)
1,858,598
3,202,793
179,295
(494,110)
(99,602)
2,788,376

23

University of Sunderland Development Trust (Registered charity number: 1041658)

9 Analysis of funds (continued)

Unrestricted Restricted Endowment Total
£ £ £ £
Fund balances as at 31July 2023 471,027 2,046,588 3,845,711 6,363,326
Represented by:
Fixed asset investments 259,356 519,162 1,778,950 2,557,468
Cash at bank and in hand 215,521 1,548,638 27,948 1,792,107
Debtors 11,030 - 2,038,813 2,049,843
Creditors (14,880) (21,212) - (36,092)
471,027 2,046,588 3,845,711 6,363,326
Fund balances as at 31July 2022 440,035 489,743 1,858,598 2,788,376
Represented by:
Fixed asset investments 371,425 443,149 1,767,160 2,581,734
Cash at bank and in hand 89,710 68,041 75,035 232,786
Debtors - - 16,403 16,403
Creditors (21,100) (21,447) - (42,547)
440,035 489,743 1,858,598 2,788,376

Endowment funds relate to:

Restricted funds include donations to:

Futures Fund - a fund set up to support students by providing access grants, bursaries and scholarships, as well as grants to alleviate student hardship and awards for initial career and personal development. This fund has accumulated to a high value over the years, and as such a selection of donors granted permission for their original donations to be designated to the wider unrestricted purposes of the Trust during the financial year. Furthermore the Trustees have increased the value of the awards available to students under this fund.

24

University of Sunderland Development Trust (Registered charity number: 1041658)

9 Analysis of funds (continued)

Silver Fund - set up in 2016/17 to enhance and enrich the University, and the life of its students, with a resource which can be allocated to priority areas, in line with the broader objectives of the Trust.

Hope Winch Benevolence Fund - The Hope Winch Society is the Alumni association for graduates from the University’s School of Pharmacy. The fund was established to support Pharmacy and Pharmacology students who face financial hardship, and is supported by donations from Alumni.

Mike Davies Charitable Trust Scholarship Fund - A fund to provide scholarship opportunities to those students studying glass and ceramics and to provide a rolling programme of Master Class activity promoting excellence in the Arts. This fund is supported by a pledged gift over a 5 year period.

Sir Tom Cowie Young Innovators Fund – the Young Innovators programme, supports utilisation of the FabLab, at Hope Street XChange.

Sir Tom Cowie Scholarship Fund - The Cowie scholarship fund provides support for two excellence awards in the fields of education, engineering or business. This Fund is supported by a three year pledged gift from the Cowie Charitable Trust.

The Horace Robson Fund – This fund support students in the areas of Glass and Ceramics, Fine Art, Photography, and Curating and Foundation Courses, making annual awards to students undertaking a live project or opportunity which compliments their current studies, and to students undertaking Masters level of study.

University of Sunderland Building Projects –Income in this fund is transferred to the University of Sunderland to support various building projects within the University. No building projects were supported in 2022/23.

The Dovre Alumni Excellence Scholarship – The Dovre Alumni Community agrees to donate funds to support this scholarship. This programme provides one or two awards per year in the sum of £1,000 in support of two penultimate year undergraduate students. Preference is given to Norwegian students studying on Sunderland campus and to students studying in subject areas linked to the Department of Engineering.

Emeli Sande Award – This scholarship supports two University of Sunderland School of Medicine students. A cash scholarship of £5,000 is awarded as ££1,000 over five years of study for the students who already hold an undergraduate degree. This scholarship is awarded in recognition of the additional costs of studying medicine for students who already hold an undergraduate degree.

Archer Award – To provide support for twenty students to receive the “Mary & Brian Archer Opportunity Scholarship”. This programme of scholarships will provide four scholarships per year with each award being the sum of £750. The programme will run for a period of five years.

Sanderson Foundation – to support artist’s time, clay materials and kiln costs, along with refreshments for each of the engagement and workshops and for the celebration event as part of the Warm Spaces project running from February - June 2023.

Aziz Foundation – to establish Masters scholarships to support students who are actively engaged in British Muslim communities, and who wish to study at the University. In doing so, the Parties wish to improve access for individuals from social groupings who historically have been underrepresented at the University.

25

University of Sunderland Development Trust (Registered charity number: 1041658)

9 Analysis of funds (continued)

Douglas Clasper Awards Programme – The programme will run for a period of six years (6) from September 2023 – July 2029. The donation will provide support for undergraduate students in the chosen subject areas of Arts, Business and Sport.

Dawson Drug Discovery Institute – Income in this fund is to be used for the set up of the John Dawson Drug Discovery, Development and Delivery Research Institute, including support for staff and research projects.

The movement on restricted funds are as follows:

For the year ended 31 July 2022:
Movement on restricted funds
Futures Fund
Silver Fund
Hope Winch Benevolence Fund
Mike Davies Charitable Trust Scholarship Fund
Sir Tom Cowie Memorial Scholarship Fund
Horace Robson Fund
The Dovre Alumni Excellence Scholarship
Emeli Sande Award
Archer Award
Sanderson Foundation
Aziz Foundation
Clasper
Dawson Drug Discovery Institute		 Opening
fund balance
Incoming
resources
Outgoing
resources
Gains
and
losses
Closing fund
balance
£
£
£
£
£
369,321
32,495
(33,676)
2,813
370,953
3,068
10,333
(4,162)
-
9,239
49,827
26,470
(38,250)
-
38,047
34,094
18,000
(13,232)
-
38,862
(3,821)
47,821
(44,000)
-
-
15,254
15,734
(13,796)
-
17,192
-
2,000
(2,000)
-
-
10,000
-
(2,000)
-
8,000
12,000
-
(2,705)
-
9,295
-
5,000
-
-
5,000
-
10,800
(10,800)
-
-
-
50,000
-
-
50,000
-
1,500,000
-
-
1,500,000
489,743
1,718,653
(164,621)
2,813
2,046,588
Movement on restricted funds
Futures Fund
Silver Fund
Hope Winch Benevolence Fund
Mike Davies Charitable Trust Scholarship Fund
Sir Tom Cowie Memorial Scholarship Fund
Horace Robson Fund
University of Sunderland Building Projects
The Dovre Alumni Excellence Scholarship
Emeli Sande Award
Archer Award
Sanderson Foundation
Aziz Foundation
Clasper
Dawson Drug Discovery Institute		 Opening
fund balance
Incoming
resources
Outgoing
resources
Gains
and
losses
Closing fund
balance
£
£
£
£
£
432,141
10,681
(30,954)
(42,547)
369,321
(3,166)
10,000
(3,766)
-
3,068
47,146
4,681
(2,000)
-
49,827
35,794
15,100
(16,800)
-
34,094
(7,821)
20,000
(16,000)
-
3,821
-
18,334
5,000
(8,080)
-
15,254
335,000
0
(335,000)
-
0
-
2,000
(2,000)
-
-
-
10,000
0
-
10,000
15,000
-
(3,000)
-
12,000
-
0
-
-
-
0
0
-
-
0
-
-
-
0
-
-
872,428
77,462
(417,600)
(42,547)
489,743

26

University of Sunderland Development Trust (Registered charity number: 1041658)

9 Analysis of funds (continued)

The endowment funds balance of £5,345,711 (2022: £1,858,598) at the year-end (of which £2,000,000 is committed but not yet received (2022: £nil)), together with an analysis of movements on the endowment funds during the year, are as follows:

Movement on endowment funds
McArdle endowment
Peter Rushton endowment
Dawson endowment		 Opening
fund balance
Incoming
resources
Outgoing
resources
Gains
and
losses
Closing fund
balance
£
£
£
£
£
1,840,233
51,360
(29,969)
(33,799)
1,827,825
18,365
-
(595)
116
17,886
-
2,000,000
-
-
2,000,000
1,858,598
2,051,360
(30,564)
(33,683)
3,845,711

10 Trustees remuneration

No Trustees were entitled to, or received, any remuneration or expenses for their services to the Charity during the year (2022: £nil).

11 Related Parties

The Trust works closely with the University, from whom it received many services at no cost. In addition, the University benefits from the Trust, being the main beneficiary of its fundraising and grant making. During the year the Trust paid the University of Sunderland £3,850 (2021/22: £3,850) towards office running costs. The University of Sunderland paid the Trust £14,880 (2021/22: £18,850) to cover the audit fees.

The University of Sunderland students also benefitted from the grants paid out in year of £305,475, split between unrestricted funds of £112,716, restricted funds of £162,291 and from the endowments of £30,468. In 2021/22 the grants paid out totalled £476,173, split between unrestricted funds of £41,287, restricted funds of £414,220 and from the endowments of £20,666. There were no outstanding balances at the year end (2021/22: £nil).

The University is considered to exercise control (as the ultimate controlling party), by being the sole beneficiary of the work of the Trust, exercising operational oversight as described above and through the Vice Chancellor of the University being a Trustee, and a further three Trustees being appointed by the Board of Governors of the University as described on page 3. The officers who support the Trust are University employed and ensure good coordination between the University and the Trust.

The purpose of the University is to provide higher education and further education, and to carry out and publish research. A number of the Trustees are or have been members of the University’s Board of Governors. The Vice-Chancellor is an ex-officio member of the Board of Governors.

No donations were made from Trustees to the year ended 31 July 2023.

Donations from Trustees are shown net of associated gift-aid claims, where applicable. Grants are awarded to students of the University by reference to their eligibility for such support.

12 Events after the reporting date

There were no events to report.

27

University of Sunderland Development Trust (Registered charity number: 1041658)

13 Parent entity

The parent entity is the University of Sunderland and is a registered Higher Education Institution regulated by the Office for Students, classified as an Exempt Charity. It is registered as a UK Learning Provider under number 10007159.

The consolidated financial statements of the University are available on the University website www.sunderland.ac.uk or a copy can be obtained from:

University of Sunderland Edinburgh Building City Campus Chester Road Sunderland SR1 3SD Telephone +44 (0) 191 515 2463

28