THE INNER TEMPLE BENEFACTORS’ SCHOLARSHIP FUND
Financial Statements
31 December 2022
Registered Charity No 1056609
The Inner Temple Benefactors’ Scholarship Fund
Index to the financial statements for the year ended 31 December 2022
| Pages | |
|---|---|
| Report of the Trustees | 2 – 6 |
| Report of the independent auditors | 7 |
| Statement of financial activities | 10 |
| Balance sheet | 11 |
| Cash flow statement | 12 |
| Notes to the financial statements | 13 - 21 |
1
The Inner Temple Benefactors’ Scholarship Fund
Report of the Trustees for the year ended 31 December 2022
Objectives and activities
The Inner Temple Benefactors’ Scholarship Fund is a registered charity comprising four individual funds: The Inner Temple Benefactors’ Scholarship Fund, The Pegasus Scholarship Trust Fund, The Woolfe Summerfield Bequest Fund and The Peter Taylor Scholarship Fund. Each of the four funds was established by gifts or legacies for the purpose of paying scholarships or purchasing Library books. The specific objectives of each fund are as follows:
The Inner Temple Benefactors’ Scholarship Fund:
The advancement of education in the law, and in particular the provision of scholarships, prizes, grants and awards to persons who are studying the law, being students or young barrister members of the Society.
The Pegasus Scholarship Trust Fund:
The advancement of legal education among students and young barristers whether or not being members of the Honourable Society of the Inner Temple and among any other persons by such means as are charitable and particularly by the means of the award of scholarships and grants.
The Woolfe Summerfield Bequest Fund:
The purchase of library books.
The Peter Taylor Scholarship Fund:
The provision of a scholarship for an outstanding student member of the Honourable Society of the Inner Temple who either has entered or undertakes to enter for the Bar Professional Training Course which commences during the year in which the scholarship is awarded or, at the discretion of the Scholarships Committee of the Society, during the next following year.
The funds are all invested with Veritas Investment Management. Investment policy is supervised on behalf of the Trustees by the Investment Sub-Committee of the Honourable Society of the Inner Temple. Decisions about the award of scholarships are made by the Scholarships Committee of the Honourable Society of the Inner Temple and, in the case of the Pegasus Scholarship Trust, by a committee of all four Inns.
The Trustees have given due regard to the Charity Commission guidance on Public Benefit.
Achievements and performance
There were no significant changes to the eligibility criteria or the application process for scholarships, prizes and awards for any of the charities in the year. Awards made during the year were as follows:
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The Inner Temple Benefactors’ Scholarship Fund awarded 24 scholarships and prizes to individuals during the year totalling £20,680 (2021 - £21,670).
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The Pegasus Scholarship Trust Fund awarded 22 outgoing scholarships and prizes in the year, of which one was deferred to 2023 and one was declined. Five awards deferred from 2020, and four awards deferred from 2021, were paid in the reporting period. Total awards paid in 2022 were £77,884 (2021 - £13,218).
-
The Peter Taylor Scholarship Fund awarded one scholarship of £22,000 which was deferred to 2023 (2021 - £22,000).
Financial review
All revenues are used for charitable activities.
Investments generated an overall negative return in 2022, net of fees, of 8.5% (2021 positive return: 19.4%).
2
The Inner Temple Benefactors’ Scholarship Fund
Report of the Trustees for the year ended 31 December 2022 (continued)
In 2022 the Benefactors’ Fund received the following generous donations: £43,001 from Evan Stone, £5,000 from the Monica Rabagliati Trust and £279 from A&J Parsons. The Charity also received £10,616 from the Inner Temple Scholarship Fund.
Principal risks and uncertainties
The Trustees have identified the major risks to which the fund is exposed and have satisfied themselves that adequate systems are in place to mitigate those risks.
The major risks are set out as follows:
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Currency risk: this is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in foreign exchange rate;
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Interest rate risk: this is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in the market interest rate;
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Other price risk: this is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risks), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.
Reserves policy
The Trustees aim to apply income as fully as possible in the year in which it arises, maintaining only a modest surplus each year to deal with adverse fluctuations in the returns from investments. The level of funds at the year-end was £5,128,662 (2021 – £5,635,886) including restricted income reserves of £106,556 (2021 - £88,976).
There are no free unrestricted reserves at the year-end for the Charity due to the nature of how the Charity operates. All income is generated and recognised within restricted funds from endowed investments during the year and subsequently this is spent on underlying activities of the Charity. The Charity’s spend is adjusted to the income level generated in the year.
Transfer between funds
Transfer between funds represents the movement between restricted income and endowment funds, relating to the investment income and fees paid to the investment managers.
Investments policy and performance
The Trustees aim to maximise real return on a rolling five-year view with emphasis on capital growth with income. Investment performance during the year equated to a loss of 8.5% net of fees. Investment income on the Charity’s funds is paid out by the manager (Veritas) to generate funds for the payment of scholarships.
Structure governance and management
The Charity’s Trustees are the four Governing Benchers elected by the Treasurer and Masters of the Bench of the Honourable Society of the Inner Temple to act as Trustees of the Honourable Society. Legal title to the Charity’s investments is vested in the four Trustees. They act in accordance with decisions made by the appropriate committees of the Bench, provided they are satisfied that those decisions have been properly reached and are within the power of the committee. The committees which make decisions affecting the Charity are the Investment Sub-Committee, the Scholarships and Outreach Committee and the Council of Management for the Pegasus Scholarship Trust.
3
The Inner Temple Benefactors’ Scholarship Fund
Report of the Trustees for the year ended 31 December 2022 (continued)
New Trustees are advised of their role, duties and responsibilities on appointment, by reference to the Bench Table Orders of the Honourable Society of the Inner Temple.
Day-to-day management of the Charity is undertaken by the staff of the Honourable Society of the Inner Temple, acting in accordance with policies and procedures laid down by the Honourable Society.
The Charity’s Trustees recognise the legal obligation to oversee and report on the Inner Temple Benefactors’ Scholarship Fund’s fundraising activities.
The Inner Temple Benefactors’ Scholarship Fund does not use Direct Marketing for its fundraising activities and is not therefore registered with the Fundraising Regulator. It does not have any direct contact with vulnerable people hence no Vulnerable People Protection Policy is currently in place.
Any donations or bequests are welcome and given voluntarily, usually by members of the Inner Temple. Any Gift Aid forms are securely stored in order to protect donors’ personal data. The personal data is used only for Gift Aid tax claims and is not used for mailing, distribution or other fundraising purposes. No Personal Data is sold to third parties.
Currently no third parties are used for fundraising purposes but if they are used in future the third parties would be expected to maintain a high standard of fundraising practice.
There were no fundraising complaints from donors or the general public in 2022 or any prior years. Any complaint would be taken seriously and investigated thoroughly.
Investment Sub-Committee
This sub-committee comprises Benchers and other members of the Honourable Society of the Inner Temple. Among the Bencher members are Honorary Benchers chosen for their particular expertise in investment matters. The Sub-Committee meets quarterly to review investment performance and to consider changes to policy. It is advised by an independent investment manager.
Scholarships and Outreach Committee
This Committee comprises Benchers and other members of the Honourable Society of the Inner Temple. It meets throughout the year to set policy for the awarding of scholarships and to assess applications. Awards are made to students and junior barristers by the Honourable Society of the Inner Temple. The Charity makes grants to the Inn in accordance with the terms of the bequests of which it is comprised.
4
The Inner Temple Benefactors’ Scholarship Fund
Report of the Trustees for the year ended 31 December 2022 (continued)
References and administration
Charity Name & No: The Inner Temple Benefactors’ Scholarship Fund includes the following charities registered under the charity number 1056609: The Inner Temple Benefactors’ Scholarship Fund (comprising the funds listed in Note 1(g) to the accounts) The Pegasus Scholarship Trust Fund The Woolfe Summerfield Bequest Fund The Peter Taylor Fund
Governing Instruments: The Inner Temple Benefactors’ Scholarship Fund: scheme made by the Charity Commissioners dated 14 August 1995
The Woolfe Summerfield Bequest Fund is governed by the terms of the will of Woolfe Summerfield The Pegasus Scholarship Trust Fund: trust deed dated 13 March 1988 The Peter Taylor Scholarship Fund is governed by regulations dated 23 July 1997 Trustees: The Trustees of the Inner Temple Benefactors’ Scholarship Fund are: The Rt Hon Sir Stephen Tomlinson The Rt Hon Lord Justice Nugee David Pittaway KC Penelope Reed KC as nominees of the Treasurer and Masters of the Bench of the Honourable Society of the Inner Temple, who act in accordance with their usual procedure.
The Trustees of the Pegasus Scholarship Trust Fund, set up by the trust deed, are: The Rt Hon Sir Stephen Tomlinson The Rt Hon Lord Justice Nugee David Pittaway KC Penelope Reed KC Principal Address: Inner Temple London EC4Y 7HL Bankers: Royal Bank of Scotland 9-13 Paternoster Row London EC4M 7EJ Solicitors: Forsters LLP Lewis Silkin LLP 31 Hill Street 5 Chancery Lane, Clifford’s Inn London W1J 5LS London EC4A 1BL Auditors: Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Investment Managers: Veritas Investment Management LLP Riverside House 2A Southwark Bridge Road London SE1 9HA
Investment Powers: The Trustees have wide powers of investment.
5
The Inner Temple Benefactors’ Scholarship Fund
Report of the Trustees
for the year ended 31 December 2022 (continued)
Council of Management for the Pegasus Scholarship Trust
The Council of Management comprises Benchers and other members of all four Inns of Court; the Honourable Societies of Gray’s Inn, the Inner Temple, Lincoln’s Inn and Middle Temple.
The Council makes awards from the Pegasus Scholarship Fund to finance UK and overseas barristers in gaining international work experience.
Statement of Trustees’ responsibilities
The Trustees are responsible for preparing the Annual Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions, disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the Charity’s constitution. 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.
Approved for the Trustees on 26 October 2023 and signed on their behalf:
The Rt Hon Lord Justice Nugee Trustee
6
The Inner Temple Benefactors’ Scholarship Fund
Independent Auditor’s Report to the Trustees of the Inner Temple Benefactors’ Scholarship Fund
Opinion
We have audited the financial statements of the Inner Temple Benefactors’ Scholarship Fund (‘the charity’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 financial statements:
-
give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its
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income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
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Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
7
The Inner Temple Benefactors’ Scholarship Fund
Independent Auditor’s Report to the Trustees of the Inner Temple Benefactors’ Scholarship Fund (continued)
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 (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the
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trustees’ report; or
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sufficient and proper accounting records have not been kept by the charity; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section of the Charities Act 2011, and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this
8
The Inner Temple Benefactors’ Scholarship Fund
Independent Auditor’s Report to the Trustees of the Inner Temple Benefactors’ Scholarship Fund (continued)
context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. We noted no additional laws and regulations in this context for the UK operations.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Board about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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.
Crowe U.K. LLP Statutory Auditor London
Date: 30 October 2023
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
9
The Inner Temple Benefactors’ Scholarship Fund Statement of Financial Activities for the year ended 31 December 2022
Notes Income endowments from Donations and legacies Other trading activities 2(a) Income from investments 2(b) Total income and endowments Expenditure on raising funds Investment managers’ charges Bank charges and office costs Expenditure on charitable activities Scholarships payable 3 Contribution to purchase of library books Support cost 4 Total expenditure Net gains on investments 5d Net (expenditure)/ income Transfer between funds Net movement in funds Fund balances brought forward At 1 January 2022 Fund balances carried forward At 31 December 2022 |
Restricted Expendable Income Endowment £ 58,896 - 78,000 - 53,633 - 190,529 - 33,179 - 56 - 33,235 - 120,564 - 3,232 - 123,796 - 48,979 - 206,010 - - (336,583) (15,481) (336,583) 33,061 (29,869) 17,580 (366,452) 88,976 3,806,768 106,556 3,440,316 |
Restricted Expendable Income Endowment £ 58,896 - 78,000 - 53,633 - 190,529 - 33,179 - 56 - 33,235 - 120,564 - 3,232 - 123,796 - 48,979 - 206,010 - - (336,583) (15,481) (336,583) 33,061 (29,869) 17,580 (366,452) 88,976 3,806,768 106,556 3,440,316 |
Permanent Endowment £ - - - |
Total 2022 £ 58,896 78,000 53,633 190,529 33,179 56 33,235 120,564 3,232 123,796 48,979 206,010 (491,743) (507,224) - (507,224) 5,635,886 5,128,662 |
Restricted Income 3,500 78,000 48,120 129,620 32,476 3 32,479 56,888 3,374 60,262 48,005 |
Expendable Endowment - - - - - - - - - - - - 652,345 652,345 (30,282) 622,063 3,184,705 3,806,768 |
Permanent Endowment - - - - - - - - - - - - 235,928 235,928 (3,565) 232,363 1,507,779 1,740,142 |
Total 2021 £ 3,500 78,000 48,120 129,620 32,476 3 |
|
|---|---|---|---|---|---|---|---|---|---|
| - | |||||||||
| - - - - - |
|||||||||
| 32,479 56,888 3,374 60,262 48,005 140,746 888,273 877,147 - |
|||||||||
- - - (155,160) (155,160) (3,192) (158,352) 1,740,142 1,581,790 |
|||||||||
| 140,746 - |
|||||||||
| (336,583) (336,583) (29,869) (366,452) 3,806,768 3,440,316 |
|||||||||
| (11,126) 33,847 22,721 66,255 |
|||||||||
| 877,147 4,758,739 5,635,886 |
|||||||||
| 88,976 | |||||||||
All the above amounts relate to continuing activities. The notes on pages 13 to 21 form part of these financial statements.
10
The Inner Temple Benefactors’ Scholarship Fund
Balance Sheet as at 31 December 2022
| Restricted Expendable Permanent Notes Income Endowment Endowment £ £ £ Fixed assets Investments 5 - 3,440,316 1,581,790 Current assets Debtors 6 34,111 - - Cash at bank and in hand 7 137,475 - - 171,586 - - Creditors:amounts falling due Within one year 8 (65,030) - - Net current assets/ (liabilities) 106,556 - - - - Total assets less current liabilities 10 106,556 3,440,316 1,581,790 Represented by: The Benefactors’ Fund 57,933 - 794,662 The Peter Taylor Fund - - 492,519 The Woolfe Summerfield Fund - - 294,609 The Pegasus Scholarship Trust Fund: The Pegasus Fund ‘A’ 28,463 3,096,284 - The Pegasus Fund ‘B’ 20,160 344,032 - 10 & 11 106,556 3,440,316 1,581,790 |
Total 2022 £ 5,022,106 34,111 137,475 171,586 (65,030) 106,556 5,128,662 852,595 492,519 294,609 3,124,747 364,192 5,128,662 |
Total 2021 £ 5,546,910 |
|---|---|---|
23,111 147,467 170,578 (81,602) 88,976 5,635,886 894,924 548,681 323,996 3,471,051 397,234 5,635,886 |
The financial statements on pages 10 to 21 were approved and authorised for issue by the Trustees on 26 October 2023 and signed on their behalf:
The Rt Hon Lord Justice Nugee Trustee
The notes on pages 13 to 21 form part of these financial statements
11
The Inner Temple Benefactors’ Scholarship Fund
Cash flow statement
For the year ended 31 December 2022
| Net cash outflow provided by operating activities Cash flow from investment activities Dividends and interest from investments Proceeds of sale of investments Purchase of investments Net cash provided by investing activities Cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
Note 14 15 15 |
2022 (96,303) 53,250 807,092 (774,031) 86,311 (9,992) 147,467 137,475 |
2021 (148,015) |
|---|---|---|---|
| 47,596 797,738 (763,891) |
|||
| 81,443 | |||
| (66,572) | |||
| 214,039 | |||
| 147,467 |
The notes on pages 13 to 21 form part of these financial statements.
12
The Inner Temple Benefactors’ Scholarship Fund
Notes to the financial statements for the year ended 31 December 2022
1.Accounting policies
a) Basis of accounting
The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The Inner Temple Benefactors’ Scholarship Fund constitutes a public benefit entity as defined by FRS 102.
After making enquires, the Trustees have a reasonable expectation that the Charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trustees Responsibilities on page 5.
Having regard to the above, the current cash position, and expected cashflow over the following twelve months the Trustees believe it is appropriate to adopt the going concern basis of accounting in preparing the financial statements.
b) Critical accounting judgements and key sources of estimation uncertainty
Sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies. No specific accounting judgements and uncertainties have been identified for the current year.
c) Investments
Investments are included in the accounts at fair value. Net realised and unrealised gains and losses are reflected in the Statement of Financial Activities as net gains/losses on investments.
d) Financial instruments
The Inner Temple Benefactors’ Scholarship Fund has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors.
Investments, including bonds held as part of an investment portfolio are held at market value at the Balance Sheet date, with gains and losses being recognised within income and expenditure.
13
The Inner Temple Benefactors’ Scholarship Fund
Notes to the financial statements for the year ended 31 December 2022
e) Income
Donations, interest and investment income are accounted for when receivable. Legacies are accounted for when received or otherwise if amounts are known as probable and measurable.
f) Expenditure
Direct charitable expenditure comprises services supplied and activities undertaken, which are identifiable as wholly or mainly in support of the Charity’s objectives. Grants, prizes and scholarships are accounted for when awarded. The costs of generating funds relate to the management of the Charity’s assets.
g) The Inner Temple Benefactors' Scholarship Fund
The Inner Temple Benefactors' Scholarship Fund is an approved scheme whereby the charities listed below are administered and managed together as one charity. The Charity Commissioners approved the scheme in 1995.
Charities included in scheme: Jardine Studentship Cecile Yahuda Scholarship Poland Prize Elfreda Edwards Scholarship Struben Bequest Peta Fordham Scholarship Ashworth Charity Sweet & Maxwell Prize Horace Avory Scholarship The Joseph Priestley Scholarship Wilfred Clothier Scholarship Solk Scholarship Frank and Burris Gahan Scholarship Yarborough-Anderson Scholarship Michael Hodge Scholarship Trust Fund Profumo Scholarship Neville Laski Scholarship Charity Allan Levy Awards The Inner Temple Law Scholarships Philip Teichman Award David Hughes Parry Prize Paul Methven Scholarship Basil Nield Scholarship Charity The Rachel Lawrence Scholarship Otto Rix Scholarship Leonard Woodley Scholarship Geoffrey Veale Scholarship Fund
h) Taxation
The Inner Temple Benefactors’ Scholarship Fund is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
2(a) Contributions from the Inns
The four Inns of Court (The Honourable Society of Gray’s Inn, The Honourable Society of the Inner Temple, The Honourable Society of the Middle Temple and The Honourable Society of Lincoln’s Inn) each made an annual donation of £19,500 (2021 - £19,500) towards The Pegasus Scholarship Trust Fund.
The Honourable Society of the Inner Temple also pays the Charity’s audit fees.
14
The Inner Temple Benefactors’ Scholarship Fund
Notes to the financial statements for the year ended 31 December 2022
| 2(b) Investment income 2022 £ The Inner Temple Benefactors’ Scholarship Fund UK equities 7,091 Foreign equities 5 Fixed interest 1,856 The Woolfe Summerfield Bequest Fund UK equities 2,477 Foreign equities 3 Fixed interest 792 The Peter Taylor Fund UK equities 4,519 Foreign equities 5 Fixed interest 914 The Pegasus Scholarship Trust Fund UK equities 4,790 Foreign equities 18,096 Fixed interest 12,977 53,525 3. Scholarships payable,awarded to individuals 2022 £ The Inner Temple Benefactors’ Scholarship Fund: 24 (2021: 25) 20,680 The Peter Taylor Scholarship Fund: 1 (2021: 1) 22,000 The Pegasus Scholarship Trust Fund: 22 (2021: 3) 77,884 120,564 4. Support cost 2022 £ Administration costs allocated by the Inner Temple 43,410 Other costs 5,569 48,979 5. Investments (a) Reconciliation of movement in investment assets 2022 £ Market value at 1 January 2022 5,546,910 Additions to investments at cost 576,65 Less: Disposals at carrying value (635,116) Net (loss)/ gain on revaluation (466,345) Market value at 31 December 2022 5,022,106 |
2021 £ 7,597 394 1,260 2,812 191 395 4,839 172 619 3,076 20,724 6,034 48,113 2021 £ 21,670 22,000 13,218 56,888 2021 £ 47,155 850 48,005 2021 £ 4,692,484 438,469 (383,525) 799,482 5,546,910 |
|---|---|
15
The Inner Temple Benefactors’ Scholarship Fund
Notes to the financial statements for the year ended 31 December 2022 (continued)
| (b) | Analysis of Investments: | 2022 | 2021 |
|---|---|---|---|
| £ | £ | ||
| The | Inner Temple Benefactors’ Scholarship Fund | ||
| UK equities |
688,318 | 765,597 | |
| Foreign equities |
- | - | |
| Fixed interest |
61,219 | 90,548 | |
| Cash |
45,125 | 17,232 | |
| The | Woolfe Summerfield Bequest Fund | ||
| UK equities |
261,901 | 290,786 | |
| Foreign equities |
- | - | |
| Fixed interest |
21,419 | 23,931 | |
| Cash |
11,289 | 9,279 | |
| The | Peter Taylor Fund | ||
| UK equities |
439,146 | 488,630 | |
| Foreign equities |
- | - | |
| Fixed interest |
32,540 | 36,060 | |
| Cash |
20,833 | 18,079 | |
| The | Pegasus Scholarship Trust Fund | ||
| UK equities |
273,163 | 273,096 | |
| Foreign equities |
2,007,323 | 2,227,636 | |
| Fixed interest |
916,934 | 917,535 | |
| Cash |
242,896 | 388,501 | |
| 5,022,106 | 5,546,910 | ||
| Historical cost at 31 December | 4,036,276 | 3,897,858 | |
| (c) | Reconciliation of movements in unrealised gains on investment assets | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Unrealised gain at 1 January 2022 | 1,649,052 | 1,174,991 | |
| Write back loss on disposal of investments | (192,590) | (325,421) | |
| Unrealised (loss) / gain for the year | (466,843) | 799,482 | |
989,619 |
1,649,052 | ||
| (d) | Net gains / (losses) on investment | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Unrealised (loss) / gain | (466,843) | 799,482 | |
| Realised (loss) / gain | (24,900) | 88,791 | |
| Net (loss) / gain on investment at 31 December 2022 | (491,743) |
888,273 | |
16
The Inner Temple Benefactors’ Scholarship Fund
Notes to the financial statements for the year ended 31 December 2022 (continued)
6. Debtors
| Dividend income Amounts due from the Inns of Court Amount due from the Scholarship Fund 7. Cash at bank and in hand Current account Deposit account 8. Creditors: amounts falling due within one year Note Accrued expenditure Other creditors Amount due to Inner Temple 16 9. Financial instruments Financial assets and liabilities Financial assets measured at fair value |
2022 2021 £ £ 3,994 3,611 19,500 19,500 10,617 - 34,111 23,111 2022 2021 £ £ 122,336 93,810 15,139 53,657 137,475 147,467 2022 2021 £ £ 9,766 10,268 12,364 23,578 42,900 47,756 65,030 81,602 2022 2021 £ £ 5,022,106 5,546,910 |
2021 £ 3,611 19,500 - |
|
|---|---|---|---|
| 23,111 2021 £ 93,810 53,657 |
|||
| 147,467 2021 £ 10,268 23,578 47,756 |
|||
| 81,602 |
The Charity’s income, expense, gains and losses in respect of these financial instruments are summarised below:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Total income for financial assets held at fair value | 3,994 | 3,611 |
| Total gains for financial assets held at fair value | 1,120,980 | 1,654,496 |
| Total losses for financial assets held at fair value | 110,769 | 5,445 |
17
The Inner Temple Benefactors’ Scholarship Fund
Notes to the financial statements for the year ended 31 December 2022 (continued)
10. Funds
(a) Permanent Endowment Funds
| Balance at | Capital | Balance at | |||
|---|---|---|---|---|---|
| 1 Jan 2022 | Additions | Losses | Transfers | 31 Dec 2022 | |
| £ | £ | £ | £ | £ | |
| The Inner Temple Benefactors’ Scholarship | |||||
| Fund | 873,377 | - | (77,092) | (1,623) | 794,662 |
| The Peter Taylor Fund | 542,769 | - | (49,304) | (946) | 492,519 |
| The Woolfe Summerfield Bequest Fund | 323,996 | - | (28,764) | (623) | 294,609 |
| 1,740,142 | - | (155,160) | (3,192) | 1,581,790 | |
| Balance at | Capital | Balance at | |||
| 1 Jan 2021 | Additions | Gains | Transfers | 31 Dec 2021 | |
| £ | £ | £ | £ | £ | |
| The Inner Temple Benefactors’ Scholarship | |||||
| Fund | 758,510 | - | 116,596 | (1,729) | 873,377 |
| The Peter Taylor Fund | 468,891 | - | 75,078 | (1,200) | 542,769 |
| The Woolfe Summerfield Bequest Fund | 280,378 | - | 44,254 | (636) | 323,996 |
| 1,507,779 | - | 235,928 | (3,565) | 1,740,142 |
(b) Expendable Endowment Funds
| The Pegasus Scholarship Trust Fund The Pegasus Scholarship Trust Fund |
Balance at 1 Jan 2022 Capital Additions Losses Transfers Balance at 31 Dec 2022 £ £ £ £ £ 3,806,768 - (336,583) (29,869) 3,440,316 Balance at 1 Jan 2021 Capital Additions Gains Transfers Balance at 31 Dec 2021 £ £ £ £ £ 3,184,705 - 652,345 (30,282) 3,806,768 |
|---|---|
18
The Inner Temple Benefactors’ Scholarship Fund
Notes to the financial statements for the year ended 31 December 2022 (continued)
(c) Restricted Income Funds
| The Inner Temple Benefactors’ Scholarship Fund The Peter Taylor Fund The Woolfe Summerfield Bequest Fund The Pegasus Scholarship Trust Fund |
Balance at 1 Jan 2022 Incoming resources Expenditure Transfers Balance at 31 Dec 2022 £ £ £ £ £ 21,547 57,232 (22,469) 1,623 57,933 5,912 16,162 (23,020) 946 - - 3,272 (3,895) 623 - 61,517 113,863 (156,626) 29,869 48,623 |
|---|---|
| 88,976 190,529 (206,010) 33,061 106,556 |
| The Inner Temple Benefactors’ Scholarship Fund The Peter Taylor Fund The Woolfe Summerfield Bequest Fund The Pegasus Scholarship Trust Fund ¤ 11. Analysis of net assets Fixed assets: Investments Current assets: Debtors Cash at bank and in hand Creditors: amounts falling due within one year |
Balance at 1 Jan 2021 Incoming resources Expenditure Transfers Balance at 31 Dec 2021 £ £ £ £ £ 30,519 12,751 (23,452) 1,729 21,547 22,090 5,637 (23,015) 1,200 5,912 - 3,398 (4,034) 636 - 13,646 107,834 (90,245) 30,282 61,517 66,255 129,620 (140,746) 33,847 88,976 Inner Temple Benefactors’ Scholarship Fund Peter Taylor Fund Woolfe Summerfield Bequest Fund Pegasus Scholarship Trust Fund Total 2022 £ £ £ £ £ 794,662 492,519 294,609 3,440,316 5,022,106 111 10,673 39 23,288 34,111 74,216 11,736 3,452 48,071 137,475 (16,394) (22,409) (3,491) (22,736) (65,030) |
Balance at 1 Jan 2021 Incoming resources Expenditure Transfers Balance at 31 Dec 2021 £ £ £ £ £ 30,519 12,751 (23,452) 1,729 21,547 22,090 5,637 (23,015) 1,200 5,912 - 3,398 (4,034) 636 - 13,646 107,834 (90,245) 30,282 61,517 |
|---|---|---|
| 66,255 129,620 (140,746) 33,847 88,976 |
||
| 852,595 492,519 294,609 3,488,939 5,128,662 |
19
The Inner Temple Benefactors’ Scholarship Fund
Notes to the financial statements
for the year ended 31 December 2022 (continued)
| Fixed assets: Investments Current assets: Debtors Cash at bank and in hand Creditors: amounts falling due within one year |
Inner Temple Benefactors’ Scholarship Fund Peter Taylor Fund Woolfe Summerfield Bequest Fund Pegasus Scholarship Trust Fund Total 2021 £ £ £ £ £ 873,377 542,769 323,996 3,806,768 5,546,910 192 76 51 22,792 23,111 43,721 28,257 3,588 71,901 147,467 (22,366) (22,421) (3,639) (33,176) (81,602) |
|---|---|
| 894,924 548,681 323,996 3,868,285 5,635,886 |
12. Trustees
None of the Trustees received any reimbursement of expenses or remuneration for their services during the year.
13. Audit fees
The Charity’s audit fees are paid by the Honourable Society of the Inner Temple. The Society paid £4,890 on account of the audit fees in 2022 (2021 - £4,290).
14. Reconciliation of cash inflow from operating activities
| Net (expenditure)/ income for the reporting period Losses / (gains) on investments Dividends Other income Operating deficit Increase in debtors Decrease in creditors Net cash outflow provided by operating activities |
2022 £ (507,224) 491,743 (53,633) (69,114) (10,617) (16,572) (96,303) |
2021 £ 877,147 (888,273) (48,120) |
|---|---|---|
| (59,246) (18,000) (70,769) |
||
| (148,015) |
20
The Inner Temple Benefactors’ Scholarship Fund
Notes to the financial statements
for the year ended 31 December 2022 (continued)
15. (a) Analysis of short-term deposits and cash at bank as shown in the balance sheet
| Short-term deposits Cash at bank Cash and bank balances |
At 1 Jan 2022 £ 53,657 93,810 147,467 |
Cashflow £ (38,518) 28,526 (9,992) |
At 31 Dec 2022 £ 15,139 122,336 |
|||
|---|---|---|---|---|---|---|
| 137,475 |
(b) Reconciliation of net cash flow to movement in net cash
| Decrease in cash and short-term deposits Net cash at 1 January 2022 Net cash at 31 December 2022 |
£ (9,992) |
|---|---|
| 147,467 | |
| 137,475 |
16. Related party transactions
The Honourable Society of the Inner Temple paid £78,000 towards the Pegasus Trust scholarships awarded in 2022 (2021 - £78,000). The Inner Temple also paid the Benefactors’ Scholarship Fund’s audit fees of £4,890 (2021 - £4,290).
The Pegasus Scholarship Trust paid £43,410 with regards to staff costs administered by the Inner Temple in 2022 (2021 - £47,156).
In 2022 The Inner Temple Benefactors’ Scholarship Fund contributed the following amounts to the cost of the Inn’s scholarship awards:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Benefactors’ Scholarship Fund | 20,680 | 21,670 |
| Woolfe Summerfield Bequest Fund | 2,891 | 2,102 |
| Peter Taylor Fund | 22,000 | 22,000 |
The amount of £42,900 in creditors (Note 8) represents the contributions due to the Inner Temple as at 31 December 2022 (2021 - £47,756). This balance is unsecured, interest -free and payable on demand.
The Inner Temple Scholarship Fund transferred £10,617 to the Inner Temple Benefactors’ Scholarship Fund to meet the balance of the cost of the Peter Taylor Scholarship in 2022 (2021 – £NIL). The amount of £10,617 in debtors (Note 6) represents the contribution due to the Peter Taylor Fund (2021 - £NIL).
21