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2022-12-31-accounts

THE BAY TREE CHARITABLE TRUST

ANNUAL REPORT AND ACCOUNTS

31 December 2022

PAYNE HICKS BEACH LLP

Solicitors 10 New Square Lincoln's Inn London WC2A 3QG

THE BAY TREE CHARITABLE TRUST

CONTENTS

Reports

Accounts

Appendix

23 Grants made

Page 1

THE BAY TREE CHARITABLE TRUST

ADMINISTRATIVE INFORMATION ABOUT THE CHARITY, THE TRUSTEES AND THEIR ADVISORS ADMINISTRATIVE INFORMATION ABOUT THE CHARITY, THE TRUSTEES AND THEIR ADVISORS
TRUSTEES
:
I.M.P. Benton
Miss E.L. Benton
P.H. Benton
PRINCIPAL ADDRESS
:
The Bay Tree Charitable Trust
10 New Square
Lincoln's Inn
London WC2A 3QG
CHARITY REGISTRATION NUMBER
:
1044091
AUDITOR
:
Buzzacott LLP
130 Wood Street
London EC2V 6DL
BANKERS
:
Quilter Cheviot
Senator House
85 Queen Victoria Street
London EC4V 4AB
INVESTMENT MANAGERS
:
Quilter Cheviot
One Kingsway
London WC2B 6AN
SOLICITORS AND ADMINISTRATORS
:
Payne Hicks Beach LLP
10 New Square
Lincoln's Inn
London WC2A 3QG

Page 2

THE BAY TREE CHARITABLE TRUST

TRUSTEE'S REPORT 31 DECEMBER 2022

The trustees present their statutory report together with the accounts of The Bay Tree Charitable Trust for the year ended 31 December 2022

The accounts have been prepared in accordance with the accounting policies set out on pages 15 to 18 of the attached accounts and comply with the charity's trust deed, applicable laws, accounting standards (United Kingdom Generally Accepted Accounting Practice), and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), second edition (October 2019).

GOVERNANCE, STRUCTURE AND MANAGEMENT

Governance

The Bay Tree Charitable Trust is governed by a trust deed dated 1 December 1994. The charity is registered under the Charities Act 2011, Charity Registration Number 1044091.

The statutory power of appointment of trustees by the continuing trustees applies.

The names of the trustees who served during the year are set out as part of the administrative information on page 1 of this Annual Report and Accounts. Brief biographical details are given below:

I.M.P. Benton

Mr. Benton is related to the settlor and was appointed a trustee on 15 December 1994.

Miss E.L. Benton

Miss Benton is related to the settlor and was appointed a trustee on 22 October 2002.

P.H. Benton

Mr. Benton is related to the settlor and was appointed a trustee on 22 October 2002.

On agreeing to their appointment, the trustees are thoroughly briefed by their co-trustees on the history of the trust, the day-to-day management, the responsibilities of the trustees, the current objectives and future plans.

Trustees' responsibilities statement

The trustees are responsible for preparing the trustees' report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity at the year end and of its income and expenditure during that year. In preparing accounts, giving a true and fair view the trustees are required to:

Page 3

THE BAY TREE CHARITABLE TRUST

TRUSTEE'S REPORT 31 DECEMBER 2022

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet annually to review the developments with regard to the charity, its grant giving activities and make any important decisions. When necessary, the trustees seek advice and support from the charity's professional advisers including investment managers, solicitors and accountants. The day to day management of the charity's activities, and the implementation of policies, is delegated to the Private Client Department of Payne Hicks Beach LLP. The Department ensures that grant applications are processed and presented to the trustees as appropriate; it administers payments and keeps the books and records of the charity.

At their meetings the trustees review the investment performance, and the investment managers attend the meetings to update the trustees in detail on the portfolio. The trustees review the proposals for grants to be made and approve such grants as appropriate.

Risk management

In line with the requirement for charity trustees to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks the charity currently faces and have reviewed the measures in place, or needing to be put in place, to deal with them. In addition to the risks associated with COVID-19 (see below), the trustees have identified three main areas where risks may occur:

Governance looks at the continuity of trusteeship, the skills and background of the trustees and the policies of regular meetings of the trustees to review their aims and activities.

Operational looks at the risk inherent in the delegation of statutory and legal requirements of the charity, its management and secretarial functions and delegation of certain of those functions, and its grant giving activities.

Page 4

THE BAY TREE CHARITABLE TRUST

TRUSTEE'S REPORT 31 DECEMBER 2022

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Financial risks include those inherent in delegation of investment management and custody to an independent investment manager, the financial record keeping of the charity, its investment policy, audit and review procedures.

Having assessed the major risks to which the charity is exposed, in particular those relating to its investments and its finances, the trustees believe that by ensuring controls exist over key financial systems, incorporating the systems and controls implemented by Payne Hicks Beach LLP, and by delegating the investment management function to investment managers, subject to regular monitoring, including periodic reviews of performance against benchmarks, they have established effective systems to mitigate those risks. In reaching this conclusion, the trustees have considered 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 are mitigated.

The charity's principal asset comprises listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed by reputable investment managers who adhere to a policy agreed by the trustees. The trustees meet annually with the investment managers and the managers' performance and that of the portfolio are monitored. The investment strategy is assessed regularly to ensure it remains appropriate to the charity's needs - both now and in the future.

The charity carries out its objectives by providing grants to institutions that are also UK registered charities, whose objects comply with the charity's criteria. There is a risk that a grant provided by the charity may not reach the intended recipient and/or may be used for purposes not consistent with the charity's objects. Whilst the trustees are mindful of their own obligation to ensure that the charity benefits the public generally, they take some assurance from the fact that recipients of grants are themselves regulated to ensure that they operate for the public benefit.

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES

Activities and specific objectives

The trustees operate a grant giving policy, providing funds for such charitable object or institution as the trustees think fit.

All appeals should be by email containing the following:

Page 5

THE BAY TREE CHARITABLE TRUST

TRUSTEE'S REPORT 31 DECEMBER 2022

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

Emails should be accompanied by a set of the charitable organisation's latest report and full accounts and should be addressed to:

appeals@baytreecharity.org

No applications from individuals are considered.

The trustees aim to make grants totalling a minimum of £120,000 per annum in accordance with the guidelines set out in the grant giving policy above.

Objectives and activities for the public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting the grant making policy for the year.

The Trust carries out these objectives by providing grants to institutions that are also UK registered charities, whose objects comply with the Trust's criteria. Whilst the trustees are mindful of their own obligation to ensure that the Trust benefits the public generally, they take some assurance from the fact that recipients of grants are themselves regulated to ensure that they operate for the public benefit.

Potential recipients of grants are identified by the trustees individually in areas where it is perceived that public benefit will be achieved. The opportunity to benefit is not restricted in any way except that grants are restricted to bodies registered in the UK, not least to facilitate the trustees being able to follow up on the efficacy of the grants made. In all other respects grants are not limited in any way except that the recipients should have a charitable need.

The trustees therefore consider that the Trust's activities are for the benefit of the public generally.

Key management

The trustees comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All trustees give of their time freely and no trustee received any remuneration 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 activities, and the implementation of policies, is delegated to the Private Client Department of Payne Hicks Beach LLP.

Investment policy

The Charity has a portfolio of listed investments with a market value as at 31 December 2022 of £6,903,782.

Page 6

THE BAY TREE CHARITABLE TRUST

TRUSTEE'S REPORT 31 DECEMBER 2022

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)

There are no restrictions on the charity's power to invest. The trustees have instructed the investment managers to refrain from purchasing investments in companies connected with armament manufacture or distribution. The investment strategy is agreed between the trustees and the investment managers, and is regularly reviewed. This is the subject of a policy statement which has been completed by the trustees and forms an integral part of the agreement with the investment manager to provide investment management services.

The more significant principles in the statement are:

The investment manager is invited to attend each formal meeting of the trustees to provide a report on the performance of the portfolio, comparison against the benchmark and general market issues. The trustees' investment policy was fully updated on 16 December 2013 and reviewed on the 10 October 2019 and required no amendment.

ACHIEVEMENTS AND PERFORMANCE

Review of activities

Total investment income received in the year amounts to £77,890, which equates to a yield. of 1.13%, (based on the market valuation of the investment assets at the year end).

The trustees awarded grants totalling £90,000 during the year in accordance with the charity's grant giving policy set out above. A detailed list of all grants made in the year is included in the Appendix on page 24.

The trustees feel that their objectives have been adequately met this year.

However, the trustees are aware that there are external factors, which could affect the achievements of their objectives as a significant part of the charity's assets are made up of investments and cash, the result of which are dependent on the general performance of the UK and overseas stock markets. As noted above under risk management, in order to minimise this, the trustees have set prudent investment policies and place reliance on the investment manager to monitor and advise on the necessary investment changes and suitable asset allocation.

Investment performance

During the year charity's investment assets achieved an income yield of 1.13%, (based on the valuation of investment assets at the year end) and capital decrease of -10.68%. The investment managers continued to invest in accordance with the trustees' investment policy as reviewed and set out earlier in this report. At the end of the year the charity's portfolio of investments comprised 7.07% UK fixed interest stocks, 2.46% charity and property funds, 90.47% UK equities and units trusts.

Page 7

THE BAY TREE CHARITABLE TRUST

TRUSTEE'S REPORT 31 DECEMBER 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

In view of the current volatility in financial markets, the trustees are satisfied with the performance of the investments and are satisfied that their investment objectives will be met over the medium term.

FINANCIAL REVIEW

Results for the year

A summary of the year's results can be found on page 13 of this report and accounts.

During the year ended 31 December 2022 total income amounted £168,484 (2021 - £104,575) being income arising from the charity's investments and cash deposits and donations.

The trustees made grants to 5 institutions totalling £90,000 (2021 - £110,000) accounting for grant administration costs of £14,995 (2021 - £12,100) and the governance costs of £9,000 (2021 - £2,352) this brought total expenditure to £113,995 (2021 - £124,452)

There were investment losses during the year of £1,021,814 (2021 Gains - £1,303,410)

This results in a net decrease in funds during the year of £967,325 (2021 increase - £1,128,533)

Reserves policy and financial position

Reserves policy

The charity is operated as a grant giving charity, and the trustees' policy is to administer the investment assets on an absolute return basis and seek to distribute approximately £120,000 in each financial year (subject to regular review).

Financial position

The balance sheet shows total funds of £6,725,313 The unrestricted fund comprises amounts which ultimately are free reserves but which are held by the trustees for investment so as to ensure the continued generation of income in future periods, thereby helping to safeguard the long term existence of the charity and the achievement of its objectives. The size of the unrestricted fund sustains and supports the levels of donations which the trustees wish to maintain and enhance over time. The trustees consider free reserves to be adequate but not excessive in the light of the charity's reserve policy set out above.

Pa THE BAY TREE CHARITABL FUTURE PLANS The Iruslees do not anllcipale any significant changgs to Ihg chanty or its activf¢ies ovgr the next to five years. It is their intention to meet the following obje¢tives.' To ensure the investment performanGe achieves the Cfileria sel by them so that there are sufficient funds to meet their grant giw7ng policies. To continu8 to make grants at a similar, if not higher lev81. ned on behalf of the Irusteè8- lee Trust88 TruBle8 Apprtsvéd by the Trustèes on........ . 2023

Page 9

THE BAY TREE CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT 31 DECEMBER 2022

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 (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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 trustees are responsible for the other information. The other information comprises the information included in the annual report and accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

Page 10

THE BAY TREE CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT 31 DECEMBER 2022

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BAY TREE CHARITABLE TRUST

OTHER INFORMATION (Continued)

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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 ACCOUNTS

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Page 11

THE BAY TREE CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT 31 DECEMBER 2022

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BAY TREE CHARITABLE TRUST

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE ACCOUNTS (Continued)

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Page 12

THE BAY TREE CHARITABLE TRUST

INDEPENDENT AUDITOR'S REPORT 31 DECEMBER 2022

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE BAY TREE CHARITABLE TRUST

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE ACCOUNTS (Continued)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and administrators and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

USE OF OUR REPORT

This report is made solely to the charity's trustees, as a body, in accordance with section 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 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.

Date: 31 October 2023

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.

Page 13

THE BAY TREE CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

Total Total
2021 Notes 2022
£ £
INCOME FROM:
Investments
70,887 Investment income 1 77,890
33,688 Donations 2 90,594
104,575 TOTAL INCOME 168,484
EXPENDITURE ON:
Charitable activities
Promoting and enhancing
124,452 charitable work 3 113,995
124,452 TOTAL EXPENDITURE 113,995
NET (EXPENDITURE)/INCOME BEFORE
(19,877) INVESTMENT GAINS(LOSSES) 54,489
Investment gains/(losses)
1,303,410 Realised/Unrealised 7 (1,021,814)
1,283,533 NET INCOME/(EXPENDITURE) AND NET MOVEMENT IN FUNDS (967,325)
RECONCILIATION OF FUNDS
Total funds brought forward
6,409,105 at 1st January 2022 7,692,638
Total funds carried forward
7,692,638 at 31st December 2022 6,725,313
All recognised gains and losses are included in the above statement of financial activities.
All of the charity's activities derived from continuing operations during the above two
financial years.

7,729,552 Listed Investments 6,903,782 6.760 141.624 Debtors Cash at bank and In hand 89,409 148,584 Total current a88e18 89,409 Creditors.. Amounts falllng due within one year 1185,4981 10 1287,8781 1178,4691 7.692,638 8.725.313 Unrestricted Income Funds General Fund 7,692,838 6,725,313 Approved by the Iruslee$ and sSgned on their bghalf by.. Trustee Trustee TN8lee Dale of Approval... Q.. 2023

Page 15

THE BAY TREE CHARITABLE TRUST

PRINCIPAL ACCOUNTING POLICIES - 31 DECEMBER 2022

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 31 December 2022 with comparative information presented in respect to the year to 31 December 2021.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes of these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Reporting Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), second edition (October 2019) the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due and therefore there are no concerns regarding the charity’s ability to continue as a going concern. The most significant areas of judgement that affect items in the account are detailed above. With regard to the next accounting period, the year ending 31 December 2022, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees' report for more information).

Page 16

THE BAY TREE CHARITABLE TRUST

PRINCIPAL ACCOUNTING POLICIES - 31 DECEMBER 2022

Assessment of going concern (continued)

The current liabilties shown on the Balance Sheet can be repaid at anyitme as the trustees' can utilise the sale of investments to support cash flow if needed.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, investment income from investments and interest from deposits.

Donations are recognised when the charity has confirmation of both the amount and settlement date and include related Gift Aid tax reclaims.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligations can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between the activities is as follows:

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued for but are noted a financial commitments in the notes to the accounts.

All expenditure is stated inclusive of irrecoverable VAT.

Page 17

THE BAY TREE CHARITABLE TRUST

PRINCIPAL ACCOUNTING POLICIES - 31 DECEMBER 2022

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of administration services.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect of its compliance with regulation and good practice.

Support costs and governance costs are apportioned directly to the one charitable activity.

Fixed asset investments

Fixed asset investments are included on the balance sheet at their market value at the end of the financial period. Realised and unrealised gains (or losses) are credited (or debited), to the statement of financial activities in the year in which they arise.

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the charity is that a volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash in bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Concessionary loans

Concessionary loans initially recognise and measure the loans at the amount received or paid, with the carrying amount adjusted in subsequent years to reflect repayments and any accrued interest.

Page 18

THE BAY TREE CHARITABLE TRUST

PRINCIPAL ACCOUNTING POLICIES - 31 DECEMBER 2022

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund accounting

The general fund represent funds available for the general charitable purposes of the charity which may be applied at the discretion of the trustees.

Cash flow

The accounts do not include a cash flow statement because the charity is exempt from the requirement to prepare such a statement under the Charities SORP (FRS 102).

Page 19

THE BAY TREE CHARITABLE TRUST

NOTES TO THE ACCOUNTS - 31 DECEMBER 2022

1 INVESTMENT INCOME

2021
£
62,733
UK equities and unit trusts
5,210
UK Government and fixed interest securities
2,986
Overseas
(42)
Gilts accrued interest
70,887
DONATIONS
2021
£
26,950
Gift Aid donation (see note 5)
6,738
Tax repayment
33,688		 2022
£
73,772
170
3,745
203
77,890
2022
£
72,475
18,119
90,594

2 DONATIONS

3 PROMOTING AND ENHANCING CHARITABLE WORK

2021
£
110,000
Grants payable to institutions
12,100
Grant administration costs
2,352
Governance costs (see note 4)
124,452		 2022
£
90,000
14,995
9,000
113,995

A detailed list of the grants payable to institutions is given in the Appendix (page 24) to these accounts.

Page 20

THE BAY TREE CHARITABLE TRUST

NOTES TO THE ACCOUNTS - 31 DECEMBER 2022

3 PROMOTING AND ENHANCING CHARITABLE WORK (continued)

A reconciliation of the grants payable and grant commitments figures shown in these accounts is as follows:

2021
£
-
Grant commitments 1st January 2021
110,000
Grants agreed during the year
110,000
Grants payable
(10,000)
Grants paid during the year
100,000
Grant commitments at 31st December 2022		 2022
£
100,000
90,000
190,000
(190,000)
-

4 GOVERNANCE COSTS

2021
£
2,352
Statutory audit fee
2,352		 2022
£
9,000
9,000

5 STAFF COSTS, TRUSTEES' REMUNERATION AND OTHER RELATED PARTY TRANSACTIONS

The charity employed no staff during the year (2021 - none).

No trustee received any remuneration in respect of their services during the year (2021 - £nil.)

The key management personnel of the charity in charge of directing and controlling, the charity comprise the trustees.

The total remuneration (including taxable benefits but excluding employer's pension contributions) of key management personnel for the year was £nil (2021 - £nil.)

During the year repayments of £22,475 (2021 - £26,950) made by the charity in relation to a loan previously advanced by the settlor, a close relative of the trustees, was donated back to the charity as a Gift Aid donation. The balance outstanding on the loan amounted to £54,175 (2021 - £76,650) - see note 10. In addition, Ian Benton, a trustee also advanced a £200,000 interest free loan (repayable on demand), Ar 31 December 2022, £200,000 remains outstanding - see note 10.

There were no other related party transactions in the period of report (2021 - none).

Page 21

THE BAY TREE CHARITABLE TRUST

NOTES TO THE ACCOUNTS - 31 DECEMBER 2022

6 TAXATION

The Bay Tree Charitable Trust is a registered charity and, therefore, is not liable to income tax or corporation tax on income or gains derived from its charitable activities as they fall within the exemptions available to registered charities.

7 INVESTMENTS

2021 2022
£ £
LISTED INVESTMENTS
Movements in listed investments during the year were as follows:
6,426,142 Market value at 1st January 2022 7,729,552
- Additions at cost 196,044
- Disposals at book value -
(proceeds: £0; loss £0)
1,303,410 Net unrealised (losses)/gains in year (1,021,814)
___
7,729,552 Market value at 31st December 2022 6,903,782
2,578,401 Cost of listed investments 31st December 2022 2,774,445
All investments were dealt in on a recognised stock exchange:
2021 2022
£ £
Listed investments held at 31 December 2022 comprise the
following investment all listed on a UK stock exchange:
6,981,546 UK equities and unit trusts 6,245,784
584,014 UK government and fixed interest securities 488,056
163,992 Charity and property funds 170,042
7,729,552 6,903,882
At 31st December 2022 the following individual holdings had a market value
in excess of 5% of the entire portfolio:
% of Value
Portfolio £
New Square Investment Funds
Bay Distribution Units 90% 6,245,784

Page 22

THE BAY TREE CHARITABLE TRUST

NOTES TO THE ACCOUNTS - 31 DECEMBER 2022

8 DEBTORS

2021
£
6,738
Tax repayment
22
Gilts accrued interest
6,760
CASH AT BANK AND IN HAND
2021
£
141,824
Quilter Cheviot
-
PHB Client Account
141,824		 2022
£
-
-
-
2022
£
89,409
-
89,409

9 CASH AT BANK AND IN HAND

10 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021
£
4,144
Grant administration costs
4,704
Statutory audit fees
76,650
Loan from Settlor (see note 5)
-
Loan from Ian Benton (see note 5)
100,000
Grants payable (see note 3)
185,498		 2022
£
-
13,703
54,175
200,000
-
267,878

Page 23

THE BAY TREE CHARITABLE TRUST

APPENDIX TO THE ACCOUNTS - 31 DECEMBER 2022

GRANTS PAYABLE:
Institutions
DEC Afghanistan Crisis Appeal
Medecins Sans Frontieres UK
DEC Ukraine Humanitarian Appeal
Surfers Against Sewage
DEC Pakistan Flood Appeal		 Amount
£
10,000
25,000
30,000
5,000
20,000
_
90,000

Total grants and donations made to institutions during 2021 amounted to £110,000