THE BAY TFiEE CHARITABLE TRUST ANNUAL REPORT AND A OUNTS 31ST DECEMBER 2020 PA YNE HICKS BEACH SolicilDfs 10 New Square Lincoln's Inn London WC2A 3QG
THE BAY TREE CHARITABLE TRUST CONTENTS Re Adminislralive information about the charity. the trustees and Iheif advisors Trustees. Teport 9-12 Independent audilorfs report Accounts 13 Slalemenl of financial activities 14 Balance sheel 15-18 Principal accounting policies 19-22 Notes lo the accounts endix 23 Grants made
THE BAY TREE CHARITABLE TRUST Pa ADMINISTRATIVE INFORMATION ABOUT THE CHARITY THE TRUSTEESAND THEIR ADVISORS TRUSTEES 1.M.P. Benton Miss E.L. Benton P.H. Benton PRINCIPAL ADDRESS The Bay Tree Charitable Trust PO Box 53983 London SW15 11 CHARITY REGISTRATION NUMBER 1044091 AUDITOR Buzzacoll LLP 130 Wood Street London EC2V 6DL BANKERS Quilter ChevM)t Sènator House 85 Queen Victoria Street London EC4V 4AB INVESTMENT MANAGERS Quilter Cheviot One Kingsway London WC2B 6AN SOLICITORS AND ADMINISTRATORS Payne Hicks Beach 10 New Square Lincoln's Inn London WC2A 3QG
THE BAY TREE CHARITABLE TRUST TRUSTEES. REPORT- 31ST DECEMBER 2020 The Iruslees présent their stalulory report together with tho accounts of The Bay Tre Charitable Trust for Ihe year ended 31st December 2020. The accoullls have been pfftpared in accordarFce with the accounting policies sel out on pages 15 10 18 of the attached accounts and comply with Ihe charity's trust deed, applicable laws, accounting standards (United Kingdom GenerallyAccepl*d Accounting PraGlicBI, and Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo charities preparing their aountS in accordance with the Financial Reporting Standard applicable in the Unilecl Kingdom and Republlc of Ireland IFRS 1021, second edition IO¢lober 2Q191. GOVERNANCE, STRUCTURE AND MANAGEMENT Governance The Bay Tree Charitable Trust is governed by a trust deed dated 1$1 December 1994. The charity is registered under the Charsties Act 2011, Charity Regisliation Number 1044091. The statutory power of appointment of Iruslees by the continuing trustees applies. The names of the trustees who served during the year are sel out as part of the administr81ive information on page 1 of thi5 Annual Report and Aceounls. Briet biographical dètails are given below.. l.M.P. Benton Mr. Benton Is related lo the sèlllor and was appointed a Iruslee on 15th December 1994. Miss E.L. Benton Miss Benton is related lo the settltsr and was appointed a trustee on 22nd Oelober 2QO2. P.H. Benton Mr. Benton is related lo the settlor and was appointed a trustee on 22nd October 2002. On agreeing to thèir appoinlm&nt, the trustees are thoroughly briefed by their ¢o-Iruslees on the history of the trust, the day-to-day management, the responsibilities of the Iruslees, the cufnI objectives and lulure pl8llS. Trustees. responsibilities statement The trustees are responsible for preparing the Iruslees, ieport and accounts In accordance with applicable law and United Kingdom Accounting Standards Iuniled Kingdorn Generally Accepted Accounting Practice). Charity law in England and Walès requires Ihe Iruslees to prepare accounls for each financial year which give a true and fair view of the slate of affairs ol the charity al the year end and of ils income and expenditure during that year. In preparing acGounls, giving a true and fair view the trustees are required lo.. Select suitable accounting Policies and then apply Ih6m consislenlly," Observe the methods and principles of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021.,
THE BAY TREE CHARITABLE TRUST Pa TRUSTEES, REPORT- 31ST OECEMBER 2020 GOVERNANCE. STRUCTURE AND MANAGEMENT Iconlinuedl Make judgements and eslimales that are reasonable and piudenl-, Slate whether applicable United Kingdom Accounting Standards have been followed, subject lo any material departures discbsed and explained in the accounts,. and Prepare the accounts on the going concern basis unless il is inappropriate to presume that the charity will continue to operate. The Iruslees are responsible for keeping proper accounting records which disclose with reasonable accuracy al any lime the financial position of the charity and which enable them lo ensure that the accounts comply with the Charities Act 2011. applicable Charity (Accounts and Reports) Regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the ¢harily and hence for taking reasonable steps for the prevenlio)n and detection of fraud and other irregularities. structure and management reporting The Iiustees are ultimately responsible for the po5icies, actsvities and assets of the ¢haTIIy. They meet annually to review the developments with regard lo the ¢h8rily, ils grant giving activities and make any important decisions. When necessary, the Iruslees seek advice and support from the ch8riiYs professional advisers including investment managers, solicitors and acGounlanls. The day to day management of the Charity's activities, and the implemenlalion of policies, is delegated to the Private Client Department of Payn6 Hicks Beach. The Department ensures that grant applications are processed and presented to thè Iruslee5 as appropriate,. il administers payments and keeps the books and records of the charily. Al their meetings the tiuslees review the investment performance, and the inveslmenl managers allend the meetings lo update the Iruslees in clelail on the portfolio. The Ifuslees review the proposals for grants lo be made and approve such grants as appropriate. Risk management In line with the requirement lor charity Iruslees lo undertake a risk assessment exeicise and report on the same in their annual report, the trustees hav& looked at the iisks the charity currently faces and have reviewed the measuies in place. or needing lo be pul in plaGe, lo deal with them. In addilK)n lo the risks associated with COVID-19 (see below), tha Iruslees have identified three maln areas where risks may occur.. - Governance Operational Financial Governanco looks at the ¢onlinuily of trusteeship, the skills and ba¢kgrotJnd of the trustees and the policies of regular meetings of the trustees lo review their aims and aclivilies. Opèrational looks al the risk inherent in the delegation of slatulory and legal requirements of the ¢ha¥ily, ils management and secretarial functions and delegation of certain of those functions, and ils gTanl giving aclivilies.
THE BAY TREE CHARITABLE TRUST TRUSTEES, REPORT- 31ST DECEMBER 2020 GOVERNANCE, STRUCTURE AND MANAGEMENT {continued) Financlal risks include those inherent in delegation ol investmènt management and Custody lo an independent investment managei, the fi'nancial lecord keeping of the charity, ils investment policy, atsdil and review procedures. Having assessed the major risks lo which the charity is exposed. in particular those relating lo ils investments and ils finantss, the trustees believe that by ensuring controls exist over key finanGial syslems. incorporating thè systems and controls implemented by Payne Hicks Beach, and by delegating the investment management function lo inveslmenl managers. subject to regular monitoring. including periodic reViS of performance against benchmarks, they have established effeGliv¥ systems lo miligale those risks. In reaching this conclusion, the Iruslees have consideied the impact on the charity of the COVID-19 pandemic. The keys risks faced by the charity, as identified by the trustees, are described below together with the principal ways in which they 8re miligalerl. The charity's principal asset comprises listed investments. thè value of which is dependent on movements in UK and world stOGk markets. The investments are managed k)y repLSlable investment managers who adhere to a policy agreed by the trustees. The trustees meet twice a year with the investment manageis and the manager's performance and that of the portfolio are monitored. The investment strategy is assessed regularly lo ensure il remains appropriate lo the Gharily's needs both now and in the future. The charity cairies out ils objectives by providing grants lo inslilulions that are also UK legislered charities, whose objects comply with thè charity's criteria. There is a risk that a grant provided by the charity may nol reach the intended recipient andloi may be used lor purposes not consistent with the Gharills objects. Whilst the Irusl&es are mindful of their own obligation lo ensure that the charity benefits the public genèralty, they lake some assurance from the fact Ihal recipients of grants are themselves Tegulated lo ensure that they opprale for the public benefit. ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES Activities and specific objectives The tiuslees operate a granl giving policy, providing funds for such charitable oblect or inslilulion as the Iruslees think fil. All appeals should be by letter containing the following.. Aims and objectives of the chaiily Nature of appeal Total targel rf for a specific project Contributions received against target Registered Charity Number
THE BAY TREE CHARITABLE TRUST TRU TEES, REPORT- 31ST DECEM8ER 2020 ACTIVITIES. SPECIFIC OBJECTIVES AND RELEVANT POLICIES Icontlnuedl Any other relevant factors LelleTS should be accompanied by a sel of the Charitable organisalion's latest report 8nd fu51 accounts and should be addressed lo.. The Bay Tree Charitable Trust P.0. Box 53983 London SW15 1VT No applications from indivtduals are consid&red. The Iruslees aim to make grants lolalling a minimum of £120,000 per annum in accordance with the guidelines sel out in the grant giving policy above. Objectlves and activities for the public benefit The tiuslees confirm that Ihtty have referred lo the guidance contained in the Chaiily Commission's guidance on pub1iG benefil when reviewing the Trust's aims and Dbjeclives and in planning future activities and selling the granl making policy for the yeai. The Trusl carrie5 Out these objeGtives by providing grants to inslilulions that are also UK registered charities. whose objects comply with the Trusvs criteria. Whilst the trustees are mindful of their own obligation lo ensure that the Trust benefits the public generally, they tske some assurance from the fact that recipients of grants are Ihemsglves regLElaled lo ensure Ihal they operate for the public benefit. Potential roGipienls ol grants 8re identifd by the Injsteey Individually in aieas wher8 il is perceived that public benefit will be achieved. The opportunity lo benefit is not reslricled in any way except th81 grants are reslricled lo k)odies registered in the UK, not least lo facililale the Iru51ees being able to follow up on the efficacy of thè grants made. In all other respects grants are not limited in any way except that the recipients should have a charrtable need. The trustees therefore consider that the Trust's aclimlies are tor the benefrt of the public geneT81. Key management The trustees comprise the key managemenl personnel of the charity In Gharge of directing and onlrolling, running and operating the charity on a day to day basis. All trustees give of their lime freely and no trustee received any remuneraln in the year. Details of trustees, expenses and remuneration and any related party transactions are disclosed in note 5 to the accounts. As noted above, the day or day management of the charity's aclivilies, and the implemenlalion of policies, is delegated to the PrÉvale Client Department of Payne Hicks Beach. Investment policy The Charity has a portfolio of listed investments with a market value as al 31st December 2020 of £6.426,142.
THE BAY TREE CHARITABLE TRUST TRUSTEES, RE RT- 31ST DECEMBER 2020 ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES Icontinuedl There are no restrictions on the charilY5 y)w8r to invest. The Iruslees have instructed the investment managers lo refrain from purch88ing investments in companies connected with armament manufacture or distribution. The investment slralegy is agreed between the Iruslees and the investment managers. and is regularly reviewed. This is the stjbjecl of a policy slalement which has been ¢ompleled by the trustees and lomis an integral part of the agreement wth the investment manager lo provide investment management services. The more signilic8nl principles in the slalemenl are-. that the investment manager sh811 maintain a balance of capthl and income groTArth which over the long term Mill endeavour lo maintain the real value of assets. that the performan will be reviewed by reference lo a cuslomised benchmark of 20% FT Gov8rnmenl All Stock5, 10°h IPD Property, 100/0 Hedge Funds and 600A FTSE 'A' Vvorld Isleiling Based}. The ITuslees feel the portfolio Is 51ruclured approximately in line with the benchmark. The investment manager is invited to allend each formal meeting of the Iruslees to provide report on the performance of the portfolio, comparison against the benchmark and genèral market issues. The Iruslees. investment policy was fully updated on 16th DeGomber 2013 and reviewed on the 10th October 2019 and required no amendment. ACHIEVEMENTS AND PERFORMANCE Revlw of activities Total investment income received in the year amounts to £87.157, which equates to a yield of 1.35¢A Ibased on the markel valuation of the investment assets at the year endl. The Iruslees awarded grants lotalling £150,000 during the year in accordance with the charity's grant giving policy set out abové. A detailed list of all grants made in the yèar Is included in the Appendix on page 23. The trustees feel Ihal their objectivès have been adequately mel this year. However, the Iruslees are aware that there are external factors, which ¢OLJld affect the achievements of their objectives as a significant part of the Gharills assets are made up of investments and cash, the result of which are dependent on the general performance of the UK and overseas slo¢k markets. As noted above under risk management, in order lo minimise this, the trustees have sel prLKJenl invèsth)ent policies and place reliance on th@ investment manager lo monitor and advise on the necessary investment changes and suitable asset allocation. These actions have been particularly relevant given the issues arislng from COVID-19. Investment perforniance During the year the ¢hariVs investment assets achieved an income yield of 1.350A (based on the valuation ol investment assels al the year end} and 8 capital increase of 7.72QA. The investment managers continued lo invest in accordance with the Iruslees. investment policy as reviewed and sel out earlier in this report. At the end of the year the charitls portfolio of investments comprised of 1 OOA UK fixed interest stocks. 20A charity and property funds, 88•h UK equities and unit trusts.
THE BAY TREE CFIAR5TABLE TRUST TR TEES, REPORT- 31ST DECEMBER 2020 ACHIEVEMENTS AND PERFORMANCE Icontlnued} n view of the current VDlalilily in financial markets, the trustèes are satisfied with the perfoirllan¢e ol the investménts and are satisfied that their investment objectives will be mel over the medium term. FINANCIAL REVIEW Results for the year A summary of the year's results ¢an be found on page 12 of this report and accounts. During Ihe year ended 31 st December 2020, total income amounted lo £87,157 {2019- £150,121), being income arising from the charity's investments and cash deposits. The Iruslees made grants lo 6 inslilulions tolalling £150,00012019 - £140.000}. After accounting for grant adminislraliDn costs 01 £12.15012019 - £8,482) and the govérnance sts of £2,35212019 - £2,280), this brought lolal expenditure to £164,50212019~ £150,762). There weré investment gains during the year of £461,046 {2019 - £941,318). This Tesulls in a nel increase in funds during the year of £383.701 (2019 - £940.6771, Reserves policy and financlal position Res¢eS policy The charity is operated as a grant giving charity, and the Iruslees, ptsli¢y is lo administer the investment assets on an absolute return basis and seek to distribute approximate £120,000 in each financial year (subject lo regular revièw). Finanelalposition The balance sheel shows total funds of £6.409,105. The un¥estricled fund comprises amounts which ultimately are free reserves bul which are held by the trustees for investment so as to ensure the continued generation of income in lulure periods, thereby helping to safeguard the long term existence of the charity and the achievement of ils objectives. The size of th8 unrestricted lund sustains and supports the levels ol donations which the Iriislees wish to maintain and enhance over lime. The Iruslees consider free resetves lo be adequate bul not excessive in the light of the Gharills reserve policy sel out above. FUTURE PLANS The Irusle8s do not anticipate any significant Chates to the charity or ils activities over the next bNo to five years. It is their intention to meet the following objeclives.. To ensure the investment perfomancè achieves the ctileria sel by them so that there are sufficient funds lo meel their grant giving policies. TO continue lo make grants al a similar, if not hlgher level. In response lo the COVID-19 outbreak, the charity is proactively reviewing grant making act(vilies lo ensLsre continued support lo beneficiaries.
THE BA E CHARITABLE TRUST TR EES, REPO T-31 T DECE ER 2020 FUTURE PLANS {continued) The trust*s have reviewed the rtsks th8t COVID-19 poses to Ihe ¢haiity 8nd ojncluded that the chority is ITh a strong finBncAal and operational posKion and can conlnue to Support beneficiarlas now 8nd for thè foreseeable fuluts. Slgned on behalf of the trustees: Trust Trustee Tru8teo Approved by the trustees on.. .2021
THE BAY TREE CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT- 31ST DEGEMBER 2020 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BAY TREE CHARITABLE TRUST OPINION We have audited the accounts of The Bay Tree Charitable Trust Ithe'charily'l for the year ended 31 sl December 2020 which comprise the slalemenl of financial a¢tivities, the balance sheet. the principal accounting policies and the notes lo the accounts. The fin8ncial reporting framework Ihal has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Finaricial Reporting Standard applicable in the UK and Republi¢ of Ireland, (United Kingdom Generally Accepted Accounting Practice}. In our opinion, the accounts.. give a true and fair view of the state of the charity's affairs as al 31st December 2020 and of ils income and expenditure for the year then ended", have properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practi. and have been prepared in accordan with the r6quiremenls of the Chariltes Act 2011. BASIS FOR OPINION We conducted our audll in accordance with Internationa1 Standards on Auditing IUKI IISAS (UK)) ancl applicable law. Our Tesponsibililies under those standards are further desGribed in the aurlilor's iesponsibililies lor the audit ol the a¢counts section of our reFK)rt. We afft independent of the charity in accordance with the ethical requirements that are relevant lo our audit of the accounts in the UK. including the FRC'S Ethical Standard, and we have fulfilled our otlier ethical responsibililies in accordance wilh these requirements. We believe that the audit evidence we have oblained is sufficient and appropriate to provide a basis foi our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing Ihe accounts. we have Concluded that the Iruslees, use of the going wncern basis of accounting in the preparation of the accounts is appropriate. Based on the work we hav8 performed, we have nol identified any material uncertainties relating lo evènts or conditions that. individually or collectively, may cast significant doubl on the charity's ability lo conlinutr as a going concern for a peiitxj of at least twelve months from when the accounts are aulhorised for issue. Our responsibilities and the responsibilities of Ihe trustees with respgd lo going concern are descrtbed in the relevant sections of this report. OTHER INFORMATION The trustees are rasponsible for Ihe other infomiation. Thé other information comprises the infomialion included in the annual report and accounts, other than the accounts and our auditor's report Ihereon. Our opinion on the accounts does not cover the other information and we do not express any form of assuran corsclusion Ihereon.
THE BAY TREE CHARITABLE TRUST e10 INDEPENDENT AUDITOR'S REPORT- 31ST DECEM8ER 2020 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BAY TREE CHARITABLE TRUST OTHER INFORMATION (Continued In connection with our audit ol thè accounts, our respot)sibilily Is lo read the other information and, in doing so. consider whether the other information is materially inconsislenl with th& accounts 01 our knowledge obtained in the audit or olhetwise appears lo be materially misslaled. If we idèntify such material inconsistencies or apparent material misslalemenls, we are requirod lo determine whether there is a materi81 misslalemenl In the accounts OT a material misslatemenl of the other information. If, based on the work we have performed, we conclude that there is a materi81 misstatemEnt of this other information, we are required lo report Ihal fact. We have nothing to Teport in this regard. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing lo report in respect of the following matters in relation lo which the Charities Act 2011 requires us to report to you il, in our opinion-. the information given in the trustees. report is inconsislenl in any rnalerial respect with the accounts., or suffiGienl accounting recc>rds have not been kept., or the aountS are not in agreement with the accounting records and returns. or we have not received all the information and explanations we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the Iruslees, responsibilities $18lemenl. the Iruslees are responsible lor the pieparalion of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the Iruslees determine is necessary to enable the preparation of accounts that are free from material misslalemenl, whether due lo fraud or error. In preparing the accounts, the trustees are responsible for assessing the charity's ability to continue as a going concem, disclosing, as applicable, mallers related to going concern and using the going concern basis ol accounting unless the Iruslees either irilend lo liquidate tho charity or ID cease operations, or have no realistic aematiVe bul lo do 80. AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE ACCOUNTS Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misslalement, whether due lo fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high leval of assuianG6, bul is not a guarantee that an audit conducled in accordance with ISAS {UKI will aKvays deleGt a material misslalement when il exists. Misslatemenls can arise from fraud or error and are considered material if, individualty or in the aggregate, Ihgy could reasonably be expected to influence the economic decisions of user8 taken on the basis of these accounts. Irregularities, including fraud, are instances of non-compliance with laws and regulations. Wa design procedures in line with our responsibilities. out5inèd above, lo detect malerial fflisslalements in respect of irregularities. incluéing fraud. The exlenl lo which our proGedures are capable of dele¢ling irregularities, including fraud is detailed bebw.
THE BAY TREE CHARITABLE TRUST e11 INDEPE DENT AUDITOR'S REPORT- 31ST DECEMBER 2020 INDEPENDENT AUDITOR'S REPORTTO THE TRUSTEES OF THE BAY TREE CHARITABLE TRUST AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE ACCOUNTS Icontinuedl Our approach lo identifying and assessing the risks of material misstatement in respect of irregularities, including fraud 8nd non-compliance with laws and regulations, was as follows". W8 ensured that the engagement team collectively had the appropriate compelence, capabilities and skills lo identify or recognise non-¢ompliance with applicable laws and regul81ions', We obtained an understsnding of the legal and re9ulalory frameworks that are applicable lo the charity and determined that thè mosl significant frameworks which are directly relevant 10 specific assertions in the financial slalemen15 are Ihose that relate to the reporting framework Islatemenl of Recommended Practice.. AG¢ounling and Reporting by Charilies preparing their accounts in accordan with the Financial Reporting Standard applicabte in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Acl 20111 anol those Ihal relate lo data protection {General Data Protection Regulalionl. We lden1rfd laws and regulalions were communicated within the audit team regularly and the team remained alert lo instances of non-compliance throughout the audil. We assessed the susceptibilily ol the charity's financial slalemen15 to material misslalement, including obtaining an understanding of how fraud might occur, by.. Making enquiries of the ¢har¢Lls adminislralors a¥ lo their knowledge of actual, suspacted and alleged fraud., ancj Considering the internal controls in place lo miligale rÉsks of fraud and non-compliance with law8 and regulations. To address the risk of fraucl through management bias and override of controls, we-. Performed anatyts'cal procedures to iLlenlily any unusual or unexpected rel81ionships.. Assessed whether judgements and assumpl¢ons made in dèlerminino the accounting eslimales were indicative of potential bias- Tested aulhorisalion controls on expenditure items, ensuring all expenditure was approved in line with the charitls financial pr(Kedures,' and Performed substantive lesling on grant expenditure lo ensure the 8xpendilure incurred complied with the funding agreements In response to the risk of irregularities and non-compliance with laws and regulations. we designed proceduTes which included. but were not limited lo.. Agreeing financial statement disclosufes lo underlying supporting documentation,. Reading the minutes of meelings of those charged with governance.. Enquiring of the Charity's adminislralors as lo actual and potential litigation and claims.
THE BAY TREE CHARITABLE TRUST Pa e12 INDEPENDENT AUDITOR'S REPORT- 31ST DECEMBER 2020 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BAY TREE CHARITABLE TRUST AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE ACCOUNTS Icontinu8dl There are inherent limitations in our audti procedures described above. The more removed that laws and regulations are from financial Iransaclions, the less likely il is that we would become aware of noll-compliance. Auditing standards also limit the audit procedures required lo idenlily non-compliancts with laws and regulations lo enquiry of the Iruslees and adminislralors and the inspection of regulatory and legal correspondellce, if any. Material misslalemenls Ihal aTise due lo fraud can be harder lo delecl than those that arise from error as they may involvo dèliberate concealment or collusion. A further description of our responsibilities for the audit of the accounts 15 located on the Financial Reporting Council's website al www.frc.org.uklaudilorsresponsibilitses. This descriplion forms part of our audiloi's report. USE OF OUR REPORT This report is made solely lo the ¢hartty's Iruslaes, as a body, in accordanc@ with seclion 145 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might slate to the Gharily's trustees those mallers we are required lo stale lo them in an audilorfs report and for no other purpose. To the fullest exlenl permilled by law. we do not accept or assume responsibility to anyone other than the charity and the charity's Iruslees as a body. for our audit work, for this report, or lor the opinions we have formed. BuzzacDII LLP Stalulory Auditor 130 Wood SITeet London EC2V 6DL 21 October 2021 Buzzacott LLP is eligiblo lo act as an auditor in lemis of Se¢lion 1212 of the Companies Act 2006.
THE BAY TREE CHARITABLE TRUST e13 STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2020 Total 2019 Total 2020 Notes INCOME FROM.. Investments Investment Income Interest receivable Donations Tax repayment supplement 119,979 17 30,125 87,059 74 24 150,121 TOTAL INCOME 87,157 EXPENDITURE ON: Charitable activities Piomoling and enhancing charitable work 15D,762 164,502 150,762 TOTAL EXPENDITURE 164,502 NET EXPENDITURE BEFORE INVESTMENT ILOSSES} 16411 177,3451 Inveslmenl gainslllosse51 Realised Unreali5ed 11,3321 942.650 19,6351 470,68fj 940,677 NET INCOME AND NET MOVEMENT IN FUNDS 383,701 RECONCILIATION OF FUNDS Total funds b¥oughl fOnard al 1st January 2020 5.084,727 6,025,404 Total funds carried fonN8rd at 31st December 2020 6,025.404 6,409,105 All wognised gains and losses are included in the above statement of financial aclivilies. All of th& charity's activities derived from continuing operations during the above two financial years.
THE BAY TREE CWRITABLE TRU Pa e14 SHEE - 31ST DECEMBER 2 2019 20 FIXED ASSETS 6,032,490 Ll8tod Inveslments 6,428.142 15,320 92,504 DebtOTS Cosh at bank and in hand 93.501 107,824 Tot81 currwl assets 93,565 LL4 Creditors.. Amounts folling duo within on8 yaar (114,9101 10 (110,6021 17,086> T LIABILITIES 117,037} 6,025.404 6,409.105 HE Rl Unr&strtcled Incom8 Funds Genaral Fund 8,025.404 6.409,105 Approved by th8 truste and signed on Ihelr behabY.. Trusteq Trusteo Trnst88 Dalè of Aoproval.. .2021
THE BAY TREE CHARITABLE TRUST e15 PR IPAL ACCOUNTING POLICIES- 31ST DECEMBER 2020 The principal a¢¢ounting policies adopted. judgements and key sources of estimation uncertainly in the preparation of the accounts are laid out below. Basis of preparation These accounts havé been PTepar8d for the year to 31 sl December 2020 with comparative infomialion presented in Fespecl lo the year lo 31st December 20fj9. The accounts have been prepared under Ihe historical ¢osl convenlw)n with items recognised al C051 or transaction value unless otherwse slated in the relevant accounting poticies below Dr the notes of these accounts. The accounts have been prepared in accordance wllh Accounting and Reporting by Charities: Statement of Recommended Reporting Practi applicable lo charities pr&p3ring IheiT aGGounls in accordanGe with the Financial Reporting Standard applicable in the Uniled Kingdom and Republic of Ireland (Charities SORP FRS 102}, second edition (October 20191 the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011, The charity conslilules a public benefit entity as defined by FRS 102. The accounts are pfesenled in sterling and are rounded to the nearest pound. Critical ac¢ounting èstlmates and areas of judgement Prepaiation of the accounts reqlsires the Irus18es lo make signifiGanl judgements and estimates. The items in the accounts where these judgements and eslimales have been made include.. estimating the Itability for mulli-year grant commilrllenls. eslimaling future income and expenditure flows for the purpose of assessing going concern (see below). Assessment of going Concern The trustees have assessed whethei the use of Ihe going concern agsumplron is appropriatè in preparing these accounts. The Iruslees have made this assessment in respect lo a perw)d of one year from the date of approval of these accounts. The Iruslees of the charity have concluded that there are no material un¢ert8inlies related lo events or cc>nditions that may cast significant doubl on the ability of the charity lo continue as a going concern. The full impact folltswing the renI emergence of the global Goronavirus pandemic is St41 unknown. Therefore, il is not possible to evaluate currently all the potential implications for the charity's activities, benefi¢i8ries and the wider economy. Estimates used in the a¢counls. particularly with respect lo the impact on future income and expenditure flows are subject lo a greater degree of uncertainly and volatility. As sel out in these accounling policies under °going Goncern. the Iruslees have considwed the impact of the pandemic on the charity an have concluded that although there may be some negative consequences, il is appropriate for the charity lo Continue lo Ppare ils accounts on the soing concern basis. The trustees are of the opinion that the charity will have sufficient resources lo meet its liabilitie5 as they fall due and Iherefore despite the global uncertainly in relation lo COVID-19, there are no concerns regarding the charily's ability lo continue as a going concern. The most significant areas of judgemenl that affect items In the account are detailed above. With regard lo the next accounting pericxj, the yeaf ending 31$1 December 2021. the most significant aieas that affect
THE BAY TREE CHARITABLE TRUST Pa 216 PRINCIPAL ACCOUNTING POLICIES- 31ST DECEMBER 2020 Assessment of going concern Icontinuedl the carrying value of Ihe as5els held by the charity are the level of investment return and the performan of the investment markets (see the investment policy and the risk management sections of the Iruslees, report for more informalionl. Income r8cognition Income is recognised in the period in which the charity has enlillemenl lo the income, the amount of income can be measijred reliably and il is probable that the inc(e will be received. Income comprises donations. investment income from investments and interest from deposits. Donations are recognised when the ¢harily has confirmalK)n Df both the amount and settlement dale and Include related Gift Aid tax reclaims. Dividends are recognised once the dividend has been declared and nolificalion has been reGeived of the diVend due. Interest on funds held on deposit is included when receivable and the arnounl can be measured reliably by the charity, this is normally upon nolificalion of the interest paid or payable by the bank. Expendlture r8cognltion Liabilities are recognised as expendilure as soon as there is a legal or conslruGlive obligation commilling the charity to make a payTn&nt to a third party. il is probable that a transfer ol econorlllc benefits will be required in selllemenl and the amount of the obligations can be measured relHbly. All expendkture is accounted for on an accru81s basis. Expenditure comprises direct costs and support costs. All expenses, includin9 SUPPOrt costs, are allocated or apportioned lo the applicable expenditure headings. The classification between the activities is as foll¢iws." la} Expenditure on raising funds includes all expenditure associated with raising funds for the chaiily. This includes the fees paid lo the investment manager in connection wbth the management of the charity's listed inveslmenls. Ibl Expenditure on charitable a¢livilies includes all costs associated with furthering the charitable purposes of the charity through the provision of ils charitable aclivilies. Such ¢osls include Charitable grants payable in promoting and enhancing charitable work carried out by other charitable oroanisalions, and related support costs inclLJding the cosl of admlnislering the activities of the charity and govemance Gosts, Grants payable are included in the slalemenl of financial activities when approved and when the intended recipient has either re1Ve the funds or been informed of the decision lo make the donation and has satisfied all related condition5. Grants approved bul not paid al the end of the financial year are aGcrued for. Grants whère the beneliciary has not been informed or has lo meet certain Conditions before the grant is released are not accrued for bul are noted 8 financial commitments iri the notes to the accounts. All expendilufe is slated inclusive of irrecoverable VAT.
THE BAY TREE CHARITABLE TRUST e17 PRINCIPAL ACCOUNTING POLICIES- 31ST DECEMBER 2020 Allocation of support and governance costs Support costs represent indirect charitable expenditure. In order to ¢8rry out Ihe primary purposes of the charity il is ne¢essary ID provide support in the form of adminislralion services. Governance costs compTise the costs involving the public accounlabilily ol the charity lincluding audit costsl and Gosts in respect of its compliancè with Tegulalion and good pra¢tice. Support costs and governance costs are apportioned directly to the one Charitable aclivily. Flxed asset investments Fixed asset investments are included on the b8lance sheet at their market valuè 81 the end ol Ihe financial period. Realised and unrealised gains lor losses) are credited lor debiledl, lo the slatemellt of financial aclivilies in the year in which they arise. Listed investments are a form of basic financial instrument and are initially recognised al their transaction value and subsequently measured al their fair value as al the b81ance sheel dale using the closing quoted market price. The charity does not acquire put options. derivatives or other complex financial inslrumenls. As noted above the main form of finan¢tal risk faeed by the ¢harily is that a volatility in equity markets and investment markets due lo wider economic conditions, Ihe attitude of investors to investment risk, and changes in sentiment concerning 4uilies and within particular se¢lors or sub sectors. Realised gains lor losses) on investment assets are calculated as the difference betwe8n disposal proceeds and Ihoir opening carryTng value or their purchase value is acquired stjbsequenl to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value al the year end and their carrying value al that dale. Realised and unre81ised investment gains {or losses} are crèdited lor debiled} lo the slalement of finanGial activities in the ye8r in which they arise. Debtors Debtors are recognised al their selllement amount, less any provision for non-recoverabilily. They have been discounted lo the present value of the future Eash receipt where such discounting is maleiial. Cash in bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on dernand or have a malurily of less than Ihree months from tha date of acquisition. Concessionary loans Concessionary108ns initially recogni8e and measure the loans al the amount received or paid, with the carrying amount adjusted in sub8equ8nt years lo reflect repayments and any accrued interest.
THE BAY TREE CHARITABLE TRUST è18 PRINCIPALACCOUNTING POLICIES- 31ST DECEMBER 2020 Creditors and provisions Credilors and provisions are recognised when there is an obligation al the balan¢e sheet dale as a result of a past event, il is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the selllemenl c8n be eslimaled reliably. Creditors and provisions are recogni5ed 81 the amount the Gharily anlicipales il will pay lo sellle the debt. They have been discoL¢nled to the present value ol the future cash payment where such discounting is material. Fund accounting The general fund represent funds available for the general Qharitsble purposes of the charity which may be applied al the discretion of the Iruslees. Cash flow The accounts ilo not include a cash fbw slalemenl because the charity is exempt from the requirement to prepare such a slalemenl under the Char41ies SORP {FRS 1021.
THE BAY TREE CHARITABLE TRUST Pa e19 NOTES TO THE ACCOUNTS- 31ST DECEMBER 2C>20 1 INVESTMENT INCOME 2019 2020 90,341 UK equities and unil trusts 21,843 UK GoveTnmenl and fixed interest securities 3,468 Overseas 7,207 Charity and property funds 12,8801 Gills accrued inl8rest 68,284 12,872 3,276 6,283 3,656} 119,979 87,059 2 DONATIONS 2019 2020 24,100 Gift Aid donation {see note 51 6,025 Tax repayment 30,125 3 PROMOTING AND ENHANCING CHARITABLE WORK 2019 2020 140,000 Grants payable lo inslilulions 8,482 Grant adminislralion costs 2,28D Governance costs {see note 41 150.OOD 12.150 2,352 150.762 164,502 A detailed list of the grants paysble to inslilulions is given in the Appendix {page 241 to these aGcounls.
THE BAY TREE CHARITABLE TRUST Pa e20 NOTES T THEACCOUNTS- 31ST DECEMBER 2020 3 PROMOTING AND ENHANCING CHARITABLE WORK (continued A reconciliation of the grants pay8ble and grant commilmenls figures shown in these sccounts is as fo11ows'. 2019 2020 Giant commrtmenls al 1st Janvary 2020 140,000 Granls agreed during the year 150,000 140,000 Grants payable {140,0001 Grants paid during Ihe year 150,000 1150.000) Grant commitments al 31st December 2020 4 GOVERNANCE COSTS 2019 2020 2,280 Statutory audit lee 2,352 5 STAFF COSTS AND TRUSTEES. REMUNERATION The charity employed no staff during the year12019- None). No Iruslee received any remuneration in respect of their services during the year12019- £nill. The key management personnel of the charity in charge of directing and Gonlrolling, the eharily omprise the Iruslees. The lolal remuneration (including taxable beneftts bul exclLFding employer's pensK)n conlribulionsl of the key management personnel for the year was £nil12019- £nil}. Therg is no gift aid donation to the Charity this year12019 £24.100 nell (see note 2}. 6 TAXATION The Bay Tree Chantable Trust is a registered charity and, therefore, is not liable lo income lax or corporation lax on Income or gains derived from its charitable a¢livilies as they fall within the exemptions available to registered charities.
THE BAY TREE CHARITABLE TRUST Pa e21 NOTES TO THE ACCO NTS- 31ST DECEMBER 20 7 INVESTMENTS 2019 2020 LISTED INVESTMENTS Movements in listed inveslm?nts during the year were as follows.. 5,128,391 Market value al Isl January 2020 162,781 Additions al cost 1201,3321 Dispos81s at book value {praceeds'. £343,894,. 108s £9,635) 942.650 Nel unrealised Ilosses}Igains in yeaf 6,032,490 276,300 1353,3291 470,681 6,032,490 Matkel value al 3181 December 2020 6,426,142 2.674,319 Cost of listed investments 31 yt December 2020 2,578,401 All investments were dealt in on a recognised stock exchange.. 2019 2020 Listed investments held a131 st December 2020 comprise the following investment all listèd on a UK stk ex¢h8nge'. 5,198,204 UK equities and unil trusts 595,171 UK government and fixed inter8St securities 239,115 Charity and property funds 5,655,936 620,510 149.696 6.032,490 6,426.142 Al 31$1 December 2020 Ihe following individual holdings had a market value in excess of 5Q/o of the entire portfolio.. %of PortfDIio Value Smith & Vvilliamson Bay Fund Income Units 88.01 5,655,936 8 DEBTORS 2019 2020 11,600 Tax repayment 3.720 Gitts accrued illterest 64 15,320 64
THE BAY TREE CHARITABLE TRUST e22 NOTE TO THE ACCOUNTS- 31ST DECEMBER 2020 9 CASH AT BANK AND IN HAND 2019 2020 92,504 Quilter Cheviot PHB Client Account 81,877 11,624 92.504 93,SC)1 10 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2019 2020 4,650 Grant adminislralion ctssls 6,660 Slalulory audit fee 103,600 Loan from Settlor 4.650 2,352 103,600 114,910 110,602 11 UNREALISED GAINS Unrealised gains on listed investments 3,&47,741 Reconciliation of movemen15 in unrealised gains on investment assets Unrealised gains al 1 sl January 2020 Adjusted in asset of disposals in year 3.358,171 18,889 3,377,060 Add.. Net gains arising on Investment revaluation in year 470,651 Uniealised gains al 31st December 2020 3,847,741 12 RELATED PARTY TRANSACTIONS There are no related party transactions during the year12019- £5.CIQOI.
THE BAY TREE CHARITABLE TRUST Pa e23 APPENDIX TO THE ACCOUNTS- 31ST DECEMBER 2020 GRANTS PAYABLE: Amount Institutions Fareshare Age UK Medecins Sans Fronlieres UK National Society for the Prevention of Crue51y to Children Royal Mencap Society The Trusso11 Trust 10,000 20,000 20,000 30,000 30,000 40,000 150,000 Total gr8nts and donations made lo inslilulions during 2019 amounted lo £laQQQQ