THE ANNANDALE CHARITABLE TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 Charity Number 1049193
THE ANNANDALE CHARITABLE TRUST CONTENTS PAGE Pages Reference and Administrative Details Report of the Trustee Independent Auditor's Report Statement of Financial Activities Balance Sheet 10 Notes to the Financial Slalements 11- 19
THE ANNANDALE CHARITABLE TRUST REFERENCE AND ADMINISTRATION DETAILS Corporate Trustee HSBC Trust Company {UKI Limited Current Dlrectors of Corporate Trustee J Coyle P M Spencer J Hewitson Trust Manager J Wiles Prlncipal Office Forum 1 The Forum Parkway Whileley Fareham Hampshire P015 7PA Auditors RSM UK Audit LLP Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire S053 3TY Bankers HSBC Bank plc Forum 1 The Forum Parkway Whileley Fareham Hampshire P015 7PA Investment Managers HSBC UK Bank plc 1 Centenary Square Birmingham B1 1HQ
THE ANNANDALE CHARITABLE TRUST REPORT OF THE TRUSTEE FOR THE YEAR ENDED 5 APRIL 2021 The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document, the Charities Act 2011 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 UK and Republic of Ireland published on 16 July 2014. The Annandale Charitable Trust is an unincorporated trust and is constituted under the terms of the Trust Deed dated 1 September 1995, set up by Ihe late Mrs Blofeld. The Trust is a registered charity {no. 1049193). Aims and objectives The objects of the charity are of general charitable purposes. The charitable activity is performed through the awarding of grants. in accordance with the terms of the governing document. Public benefit The trustee has considered the Commission's guidance on public benefit, and consider grant making to be an effective method of delivering these objeclives. Applications are reviewed as they are received, and awarded at the discretion of the trustee. Financial review The charity originally received funds under the temis of the deed of settlement. The fund generated income of £352.314 12020: £405.314) in the year, which together with brought forward reserves facilitated the expenditure on charitable activities of £81,223 12020.. £505,422) of which £nil {2020'. £412,139) was direct charitable expenditure in the foTm of grants lo charitable institutions. During the year there was 1 returned grant of £1,606 12020.. 1 returned grant of £3,043). Total charitable expenditure amounted to £145,72312020: £578,563}. The elosing level of endowment funds was £14,790,42012020.- £12,172,774) and unrestricted funds was £325,931 12020.. deficit of £7,130). The Trustee has considered Ihe impact of the COVID-19 outbreak and consider that it does not have a material impact on the charity given the value of investments held. A¢hlevement and performance During the year no grants 12020.. 186 grants totalling £412,139) were awarded to charitable inslilulions, in accordance with the terms of the governing document. 1 grant of £1,606 {2020.' 1 grant of £3,043} was returned in the year. Details of these grants are set oul in note 5 to the financial statements. The level of investment income generated in the year was considered satisfactory and the market value of the investments moved in the underlying securities. Investsnent policy In accordance with the governing document, the trustee has the power lo invest in such stocks, shares, investments and property as they see fit. The trustee engaged HSBC Global Asset Management {UKI Limited as Investment Managers. The policy is to adopt a low lo medium risk investment strategy lo protect, in absolute terms, the capital valLJe of the fund whilst producing a sustainable and growing level of income, and also providing the potential for longer term growth of capital in real terms.
THE ANNANDALE CHARITABLE TRUST REPORT OF THE TRUSTEE cont FOR THE YEAR ENDED 5 APRIL 2021 Reserves polity The unrestricted funds, which are the free reserves of the charity and are represented by the income arising, are paid over to beneficiaries throughout the year. The balance of unreslricted funds held at 5 April 2021 is £325,931 {2020' deficit of £7,130). 11 is not the policy of the charity to maintain specific reserves and the trustee is reviewing potenlial beneficiaries to whom these funds may be distributed in the next financial year. The unrestricted fijnd balan is in deficit at the year end but this relates to a timing issue at the balance sheet dale. The expendable endowment funds represent those assets, which are held permanently by the charrty, principally investments. Income arising on the endowment fijnd can be used in accordance with the objects of the charity and is included as unrestncted income. Any capital gains or losses arising on the investments form part of the fund. The trustee has Ihe power to convert this fund into income. Plans for the future The trustee intends to continue providing grants in a similar way to the recent past whilst retaining flexibility as to the liming and scale of grant making. Related parties The Corporate Trustee and the investment managers are both wholly owned subsidiaries of HSBC Holdings plc. In addition to those fees shown on pages 19, as a result of the acquisition and disposal of investments, the charity pays transaction charges to HSBC Bank plc. The charges are calculated on a sliding scale at a percentage of the transactions value plus VAT and are added lo or deducted from the cost of the investments or the disposal prOedS in accordance with UK standard accounting practice. A summary of the transacb'ons of the charity with the related parties is sel out in note 11 of the financial statements. Structure, governance and management The trustee has appointed a designated trust manager to look after the charity. The investment manager reviews the performance and provides recommendations on the structure of the investment Port110. The power to appoint additional trustee's is vested in the current trustee. The Trust Deed requires a minimum of three trustee's. unless a Irusl corporation is appointed. The Iruslee has examined the major strategic, business and operational risks which the charity faces and Confirm that systems have been established to enable regular reports lo be produced so that the necessary steps can be taken to lessen these risks. The main risk in the year was considered to be the variability of investment returns. The corporate trustee and the investment managers are both wholly owned subsidiaries of HSBC Holdings plc. A summary of the transactions of the charity with these parties is sel out in note 11 of the financial statements. Key management personnel Trust does not have any employees and all decisions are taken by the trustee. The only remuneration paid is that paid to the corporate trustee's as disclosed in note 11.
THE ANNANDALE CHARITABLE TRUST REPORT OF THE TRUSTEE cont. FOR THE YEAR ENDED 5 APRIL 2021 Statement of Trustee's responsibilities in relation to the financial statements The law 2ppli¢able to charities in England and Wales requires the trustee to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of rts financial position at the end of the year. In preparing ffnancial slatefflents giving a true and fair view. the trustee should follow best practise and.. select suitable accounting policies and then appty them consistently.. make judgements and estimates thal are reasonable and prudent., slate whether applicable accounting standards and slatements of recommended practsce have been followed, subject to any departures disclosed and explained in the financial statements.. and prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will continue in operation. The trustee 15 responsible for keeping accounting records which disclose with reasonable accuracy the financial posib.on of the charity and which enable them lo ascertain the financial position of Ihe charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) 2008 Regulations and the provisions of the trust deed. The trustee is responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevenbon and detection of fraud and other irregularities. Auditors In accordan with the Charities Act 2011. a resolution proposing that RSM UK Audit LLP be reappointed as Auditors of Ihe charity will be put to a general meeting. Approved by the twstee and signed on their behalf by.. HSBC Trust Company (UK) Limited Date..
THE ANNANDALE CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE ANNANDALE CHARITABLE TRUST Opinion We have audited the financial statements of The Annandale Charitable Trust for the year ended 5 April 2021 which comprise Statement of Financial Activities, the Balan Sheet and notes lo the financial statements, including a summary of significanl 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'luniled Kingdom Generally Accepted Accounting Practi). In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 5 April 2021 and of its incoming resources and application of iesources for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Act 2011. 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 Intemational Slandards on Auditing (UK) IISAS IUK}l and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalements section of our report. We are independent of the charity in accordan 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 appropriale to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustee's use of the going conrn 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 lo 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 ITUStee's with respect lo going concem are described in the relevant sections of this report. Other information The Iruslee is responsible for the other information. The other information comprises the information included in the Trustee Report other than the financial statements and our auditor's report thereon. Our opinion on the financial staternents does not cover the other information and, we do not express any form of assurance conclusion thereon.
THE ANNANDALE CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT cont. TO THE MEMBERS OF THE ANNANDALE CHARITABLE TRUST Our respon5ibilrty is to read the other informats'on and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misslaled. Sf we identify such material inconsistencies or apparent material misstatements, we are required to detemine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude Ihat 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 V are required to report by exception We have nothing lo report in respect of the following matters where the Charities Act 2011 requires us to report lo you if. in our opinion.. the information given in the financial statemenls is inconsistent in any material respect with the Trustee Report-, or sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns.. or we have not received all the information and explanaliorss we require for our audit. Responsibilities of the trustee As explained more fully in the Statement of Trustee's responsibilities set out on page 4, the trustee is 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 trustee determines is necessary to enable the preparation of financi21 statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the ttustee is responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters relaled to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charty or lo cease operations, or have no realistic allernalive 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 misslalement, whether due to fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaTanlee that an audit conducted in accordance with ISA5 IUKI will always detect a material misslalement when it exists. Misslatemenls can aiise frorll fraud or error and are considered material if, individually or in the aggregate, they Could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. The extent to which the audit was conSided capable of detecting irregularities, including fraud Irregularities are instances of non-cornplian¢e 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-complian with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected noncompliance with laws and regulations identified during the audrt.
THE ANNANDALE CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT conL TO THE MEMBERS OF THE ANNANDALE CHARITABLE TRUST In relation lo 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 garding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud idenlrfied during the audit. However, it is the primary responsibility of management, wilh the oversighl of those charged with governance, lo 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.. obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the Charty operates in and how the Charity is complying with Ihe legal and regulatory framework., inquired of management, and those charged with governan, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud", discussed matters about non-compliance with laws and regulations and howfraud might occur including assessment of how and where the financial statements may be susceptible lo fraud. 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 IFRS 1021, Charities Act 2011. and the charity's governing document. We performed audit procedures to detect non cotnpliances which may have a material impact on the financial statements. There were no significant laws and regulations that have an indirect impact on the financial statements. The audit engagement team identified the risk of management override of controls, as the area where the financial slalemenls were most SuSptib1e to material misstatement due to fraud. Audit prOdureS performed included but were not limited to testing manual joumal entries and other adjustments, evaluating the business rationale in relation to Significant, unusual transactions and transactions entered into outside the norrnal course of business and challenging judgments and estimates. A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council's website al http'.Ilwww.fr¢.org.uklaudilorsresponsibilities. This description forms part of our auditor's report. Use of our ptsrt This report is made solely to the charity's trustee as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state lo the charity's trustee those matters we are required to stale 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 lo anyone Dther than the charity and the charity's trustee as a body, for our audit work, for this report, or for the opinions we have formed.
THE ANNANDALE CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT cont. TO THE MEMBERS OF THE ANNANDALE CHARITABLE TRUST RSM UK Audit LLP Statutory Auditor Chartered Accountants Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire S053 3TY Date.. 02-Feb-2022 RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
THE ANNANDALE CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021 Notes Unr8strl¢ted Endo%fftnt funds funds Total 2021 Total 2020 Inco Investment income 352.314 352,314 405,314 Total incon 352,314 3S2,314 405.314 Expendlture Cost of generating ftjnds Charitsble aclivils 64,500 73,550 64,500 81,223 73,141 505,422 7,673 Total expenditure 7,673 138,D50 145,723 578,563 N9t Inconllexpenditurel incurred before transfer5 and other rocognffised gains and losses 344,841 1138,0501 206.S91 1173,2491 Realis and unrealised gainslllossesl on investments 2,744,116 1744,116 11,595,310) Net incon1(expendrture) for the year 344,641 2.6L%,066 2,950,707 11.768,5591 Transfer tetsveen ftjnds 111,5801 11,580 Funds invested at 8 Til 2020 17.1301 12.172,774 12,165,644 13.934,203 Funds invested at S April 2021 325.931 14,790,420 15116351 12.165.644
THE ANNANDALE CHARITABLE TRUST BALANCE SHEET AS AT 5 APRIL 2021 Notes Unrestricted En(fowment funds lunds Total 2021 Total 2020 Fixed assets Investmènts 335,136 14.890,842 15,225.978 12,189,044 Current assets Debtors 1,690 1,690 CredKor5." amounts falllng due withln one year 9,205 100.422 109,627 25,090 Net current assetsllllabilitiesl 19,205} 1100,4221 1109.627) 123.4001 Net assets 325,931 14.790,420 15,116,351 12,165,644 Funds 10 325.931 14,790,420 15,116,351 12 765,644 Approved by the trustee and aulhorised for issue on nd signed on their behalf by.. HSBC T st Company (UK) Limited 10
THE ANNANDALE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 Accounting policies A¢counting conventlon The financial statements have been prepared in accordance with the Statement of Recommended Practi.. Account'ng and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015_ The trust Is a public benefit entity and has therefore applied the relevant public benefit requirements of FRS 102. The financial statements have been prepared to give a 'true and fairf view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required lo provide a 'lrue and fair view,. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accoidance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 issued on 16 July 2014 rather than the Accounting and Reporting by Charities.. Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The accounts are prepared in sterling, which is the functional and presentational currency ofthe charity- Monetary amounts in these financial statements are rounded to the nearest £. Going concern At the time of approving the accounts, the Trustee has a reasonable expectation that the charity has adequate reSoUrS to continue in operational existence for the foreseeable future. Thus, the Trustee continues to adopt the going conrn basis ot accounting in preparing the accounts. The Trustee has reviewed the appropriateness of the adoplion of the going concern basis, including the impact of COVID-19 on the Trust. The Trust's investments are sufficient lo cover its fixed costs for a period of al least e1ve months even in the event of a significant fall in investment values. Therefore, the Trustee has concluded that the going concern basis remains appropriate. Income All incoming resources are recognised once the charity ha5 entitlement lo the resources, it is certain that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability. Investment income is accounted for in the period in which the charity is enti15ed lo Feceipt. Income is the gross value of dividends and inleiest received after reclaiming any tax credits that are available Dividends due on quoted investments that are ex-dividend at the balance sheet date are accrued as income. 11
THE ANNANDALE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 Accounting policies cont. Expenditure Expenditure is included on an accruals basis. Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity lo the expenditure. Costs of generating funds comprise those costs directly attributable to managing the investment portfolio and raising investment income. Charitable expendire inclLtdes granls payable in furtherance of the charitable objectives of the charity. It includes both costs that can be allocated diiectly lo such activities and those costs of an indirect nature necessary to support them. Support costs are those functions that assist the work of the charity but do not directly undertake charitable activity. Support costs include governance costs which are costs associated with meeting the constitutional and slalutory requirements of the charity. Fixed asset investments Investments are included at closing market value at the balance sheet date. Any gain or loss on revaluation or disposals throughout the period is taken to the Statement of Financial Activilies. Financial instruments The charity has elected lo apply the provisions of Section 11 'Basic Financial Instruments, of FRS 102 to all of its financial inslrumenls. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the nel amounts presented in the financial statements. when there is a legally enforceable right lo set off the recognised amounts and there is an intention to settle on a net basis or lo realise the asset and settle the liability simultaneously_ 12
THE ANNANDALE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 Accounting policies cont. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement Constilules a financing transaction, where the transaction is measured at the present value of the future receipts discounted al a market Tale of interest. Financial as5els classified as receivable wilhi one year are not amortJ"sed. Trade and other debtors are recognised at the settlement amount due after any trade discoLtnl offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Impairment offinancial assets Financial assets, other than those held al fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are Impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the eslimaled cash flows discounted at the asset's original effective interesl rate. The impairment loss is recognised in net incomellexpenditure) for the year. If there is a decrease in the impairment loss arising from an event OCCUTring after the impairmenl was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been. had the impairment not previously been recognised. The impairment reversal is recognised in net incomel{expenditure) for the year. Derecognition of financial assets Financial assets are derecognised only when the contractual rights lo the cash fflows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third paty. Basic financial liabilities Basic financial liabilities. including creditors are initially recognised at transaction price unless the arrangement conslilules a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable wrthin one year are not amortised. Liabilities are recognised within the financial statements in respect of all expenditure for which the entity has a measurable obligation, be it constructive or legal, at the balance sheet dale. Any expendilLJre which is committed to, but not measurable al this time. is disclosed wlhin the notes lo the financial statements as a contingent liability. Derecognition of financial liabilities Financial liabilities are derecognised when the charity's contractual obligations expire or are discharged or cancelled. 13
THE ANNANDALE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 Accounting policies cont. Realised gains and losses All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference beeen sale proceeds and opening market value lor purchase date if lalerl. Unrealised gains and losses are calculated as the difference between the market value al the year end and opening market value (or purchase date if laler). Realised and unrealised gains are not separated in the Statement of Financial Activities. Investment income 2021 2020 Dwidends - UK equi(ies Divklends- Foreign equrties Inleresl- UK fixed interest securrties Interest- Overseas uni( trusts Interest- Cash deposits Compensation payment 140,428 59,406 25,542 126,767 171 81,439 137,166 39,607 145,016 733 1,353 352.314 405,314 Costs of generating funds 2021 2020 Investment man2gemenl fees 73,141 14
THE ANNANDALE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 Charitable activities The charity undertakes ils charitable aclivtiies through grant making, and awards grants to a number of charities in accordance with ils charitable objectives. Other ated cos Grant fvnrted Support tosts Tot 2021 Tow 2020 General tharttable a1"eS 11.6061 9.279 73.550 81223 505.422 Other allocated costs of £73,550 (2020.. £84,553) principally comprise management fees charged by the Corporate Trustee. During the year no gfanls (2020.. 186 grants totalling £412,139) were awarded lo institutions in accordance with the terrns of the governing document. 1 grant totalling £1,606 was returned during the year12020'. 1 grant totalling £3,043). Analysis of grants During the year no grants 12020.. 186 grants lotalling £412,139) were awarded to charitable inslilulions in accordance with the terms of the governing document. No grants were awarded to individuals in either year. One grant of £1,606 was tUrned during the year (2020.. 1 grant lotalling £3,0431- The treatment of returned grants has been changed. Returned grants are now offset against grants payable within general charitable activities. For this reason, comparative disclosure has been presented differenuy. 15
THE ANNANDALE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 Support costs 2021 2020 countancy fees Allditor's remuneration 2.269 7,010 2,050 6.680 9,279 8.730 Support costs include those incurred in the govemance of the charity and its assets and are primarily associated with constitutional and statutory requirements. Governance costs are disclosed inclusive of VAT. 16
THE ANNANDALE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 Investments 2021 2020 SecUrits fair value at 6 April 2020 11.998,664 13,674.743 quisilions al cost Sales preedS from diswsals Change in fair value 18,113,092 118,243.9061 2,744.116 5,141,639 15,222.4081 11,595,310) SeCure$ fair value at 5 April 2021 14.611.966 11,998,664 Investments at fair value comprised of.. UK Fixed Interest securrties Overseas Fixed Interest Securrties UK Equ(£ies Overseas equf(ies Aternative Inveslmenl 4,934,692 6,754,558 1,399.269 109.899 1,413.548 1,606,048 4,975,666 203,930 2,464.710 2,748,310 14,611,966 11,998,664 Securities historical cost at 5 4)ri12021 13,434,873 9,167,488 The following individual investments are considered to be material lover 5•/4 of portfolio by value) in the context of the portfolio. HSBC Corporate Bond Inst Inc which has a portfolio weighting of 1.47 /D {2020.' 7.590/al, HSBC Global Emerging Market Local Debt which has a portfolio weighting of 5.19'/012020'. HSBC Global which has a portfolio weighting of 5.920/0 {2020. 5.86 % ) HSBC UK Gill Index which has a portfolio weighting of nil /0 {2020.' 8.00 /0), HSBC European Index which has a portfolio weighting of 3.34Q/o12020.' 5.81 % ), HSBC American Index which has a portfolio weighting of 7.140/012020.. 11.27 % }, HSBC GIF which has a portfolio weighting of 0.994/012020.. 5.910/01, HSBC GIG which has a porffolio weighting of 9.68Q/o {2020.' 5.78 /0). HSBC Mulli Factor Worldwide which has a portfolio weighting of 5.62Q/o {2020- 5.66°kl, ishares Core 8.220/012020.. nil /D}. All security investments held are listed investments. 17
THE ANNANDALE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 Inve3tments cont. 2021 2020 Socurity investmants Cash investments 14,611.966 614.012 11,998.664 190.380 15,225,978 12,189,044 Debtors 2021 2020 P£crued income 1,690 Creditors: amounts falling due within one year 2021 2020 Accnjals 109.627 25,090 109,627 25,090 10. Funds Unrestricted funds comprise those funds which the Injslee is free to use in accordance with the charitable objects. The expendable endowment funds represent those assets, which are held pemianently by the charity, principally investments. Income arising on the endowment fund can be used in accordance with the objects of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management fees and certain management and administration costs are charged against the fund in accordance with the lemis of the declaration of trust. The Iruslee has the power to pay or apply the whole or any part of this fund for or towards charitable purposes. The trustee has the power to transfer funds between unrestricted and endowment funds. 18
THE ANNANDALE CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021 11. Trustee remuneration and related parties The corporate trustee is a small wholly owned subsidiary of HSBC Holdings ple. The following is a summary of transactions with this entity.. 2021 2020 nagemenl fees - Corporate Trustee Investment management fees 73.550 64,500 84,553 73,141 At 5 April 2021, £82,16212020'. £15,550} was owed to HSBC Trust Company (UK) Limited. The above fees include VAT that is irrecoverable by the charity. In addition, as a result of the acquisition and disposal of investments, the charity pay transaction charges to HSBC Bank Plc. The charges are calculated on a sliding scale at a percentage of the transaction value plus VAT and are added lo or deducted trom the cost of the investments or the disposal proceeds in accordance with UK standard accounting practi. No truslee expenses have been incuried during the year or in the previous year. 19