Charity Number 1071220
THE C. & J. B. MORRELL TRUST
REPORT AND FINANCIAL STATEMENTS
for the year ended
5 April 2021
THE C. & J. B. MORRELL TRUST
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
| CONTENTS | page |
|---|---|
| Trustees' Report | 1 - 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Accounts | 9 - 14 |
THE C. & J. B. MORRELL TRUST
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021
Reference and Administrative Details of the Charity, its Trustees and Advisers
Charity name and number
The C. & J. B. Morrell Trust: registered charity number 1071220
Correspondence Address
54 Bootham, York, North Yorkshire, YO30 7XZ
Trustees
Mr N C Morrell (Chairman) Prof S L Mendus CBE Mrs M A Morrell Mr M S Wainwright MBE Prof M D Matravers
Secretary
Mr C M S Walker FCA
Professional Advisers
Accountants: HPH Chartered Accountants, 54 Bootham, York, YO30 7XZ
Bankers: HSBC Bank plc, 13 Parliament Street, York, YO1 8RS
Independent Examiner: Sarah Wearing FCA DChA, HPH Chartered Accountants, 54 Bootham, York, YO30 7XZ
Stockbrokers: Charles Stanley & Co Ltd., Windsor House, 6-10 Mount Ephraim Road, Tunbridge Wells, Kent, TN1 1EE
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THE C. & J. B. MORRELL TRUST
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021
The Trustees present their annual report together with the financial statements of the Trust for the year ended 5 April 2021. 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) issued in October 2019 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.
Structure, Governance and Management
The Trust is a charity created by a Declaration of Trust 29 June 1955 and a Deed of Trust dated 28 May 1956 supplemental to the earlier Declaration.
The Trust Deed provides for a maximum of six trustees. Where there is a requirement for new trustees, these would be identified and appointed by the remaining trustees. The Secretary is responsible for the induction of any new trustee which involves awareness of a trustee’s responsibilities, the governing documents, administrative procedures, the history and approach of the Trust. A new Trustee would receive copies of the previous year’s annual report and accounts and a copy of the Charity Commission leaflet ‘The Essential Trustee: What You Need to Know’. The existing trustees have held office for several years.
The Trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to mitigate the exposure to those risks. To date, these have related mainly to investment management and these have been mitigated by diversified portfolio management undertaken by the Trust’s stockbrokers. The Trustees are aware of the risks associated with making grants (for example fraud and charities seeking two grants for the same project) but these risks are managed by the Trustees’ own detailed knowledge of the relevant organisations and the careful assessment of any requests received.
The Trustees determine the general policy of the Trust. The day to day management of the trust is delegated to the Chairman and Secretary.
As disclosed elsewhere in this report (‘Achievements and Performance’), and in Note 6 to the accounts, the Trustees renewed their existing gift agreement with the University of York. Professor Matt Matravers (trustee) is also employed by the University but does not benefit personally from this grant arrangement. All of the Trustees give their time voluntarily and receive no benefits from the Trust. Any expenses reclaimed from the Trust are set out in Note 2 to the accounts.
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THE C. & J. B. MORRELL TRUST
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021
Objectives and Activities
The Trust was established to promote education. In particular, the promotion, development, improvement, maintenance or furtherance of any educational establishment which may have been founded with a view to the creation of the University of York, or for the benefit of such other educational bodies as the Trustees may think fit. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general 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 Founders expressed the wish that, if possible, the Trust should fund, or support the funding of, a Chair for the study of Toleration, preferably at the University of York, and that the Trustees should endeavour to support and encourage those charitable objectives which the general public would be less likely to support.
For many years, the Trustees have provided substantial funds for ‘The Morrell Centre on Toleration’ which is a “free standing” centre at the University of York. In recent years, funds have been used for; a grant to be administered by the University of York’s ‘Justice and Equality’ Research Champion; the University of York’s ‘Festival of Ideas’ to fund a day on toleration; the Ebor Lectures; and other applications as decided by the Trustees.
The Trustees meet annually to decide upon the financial support which they are able to provide to the University of York and to any other bodies that have requested grants.
Where funds permit, the Trustees also make grants to other charitable educational bodies which they consider fall within the provisions of the Trust Deed, and the Founders’ declared wishes. Financial circumstances are relevant only in determining the amount of a grant awarded.
The Trustees believe they have complied with the duty in section 17 of the 2011 Charities Act to have due regard to guidance published by the Charity Commission in respect of public benefit.
Achievements and Performance
In common with most charitable organisations, the restrictions introduced by the UK government in order to control the spread of the covid-19 coronavirus (‘the pandemic’) affected the Charity’s activities during the year under review. The effects on the Trust were largely financial, details of which are included elsewhere in this report.
Due to the pandemic-related social distancing restrictions in place, the Trustees met remotely for the purpose of initiating a strategic review of the Charity’s affairs in order to ensure that it remains fit for purpose in the coming years. It was decided that this review will include identifying any new causes worthy of support which are consistent with the Founders’ vision, the priorities for future grant-making and the recruitment of new trustees.
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THE C. & J. B. MORRELL TRUST
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021
Achievements and Performance (contd.)
The Trust agreed to an extension of the existing gift agreement for the academic years 2019/20 and 2020/21, subject to an annual review, for an annual grant of a total of £50,000 to fund the Morrell Centre for Legal and Political Theory (£20,000); research funded by the Justice and Equality Research Champion (£20,000); and the University of York’s ‘Festival of Ideas’ (£10,000). In light of the COVID-19 situation, the Trust agreed to a single year extension for 2021/22 of £10,000 only to fund the Festival of Ideas. In addition, the Trust agreed in 2020 to continue its annual funding of £4,000 for a period of four further years, to the Faculty of Education and Theology at York St John University of the Ebor Lectures Partnership.
Financial Review
The Trustees do not seek, nor do they normally expect to receive, further funding from outside sources. Therefore, the Trustees hold reserves primarily as an investment fund to generate income and ensure the stability of the grant-making programme funded by it. The recent level of grant-making activity required an annual income in the range of £60,000 to £80,000. The unrestricted reserves (regarded as ‘free reserves’) held at 5 April 2021 were £2,986,428, and the underlying investments and cash balances held by the Charity during the period review generated an annual income of £65,261. The Trustees consider the current level of free reserves held, therefore, to be sufficient but not excessive.
The investment powers are governed by the Trust Deed, which permits the funds to be invested at the absolute discretion of the Trustees. The Trustees have set a policy that the Unrestricted Funds (‘free reserves’) should be invested so as to retain a reasonable liquidity to meet grant requirements, and thereafter to keep a balance between income and capital growth with medium risk level.
The Trust’s Stockbrokers manage the Trust’s investments in accordance with a discretionary management agreement, reporting regularly to the Trustees. The Stockbrokers charge a fee, quarterly in arrears, based on the value of the investment portfolio ranging from 0.5% for the first £2,000,000 to 0.3% on the balance over £2 million.
Under the Stockbrokers’ management, the portfolio produced a total return of +32.4% during the year as the global stock markets continued to recover from the pandemic-related sell-off during February and March 2020. All of the reduction in capital value suffered by the Charity in 2020 had been recovered by April 2021. The Trustees have chosen not to adopt formal ethical investment policies.
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THE C. & J. B. MORRELL TRUST
TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 5 APRIL 2021
Plans for the Future
The Trustees continue to assess the impact of the ongoing pandemic on the future aims and activities of the Charity. The Trustees are cautiously optimistic that more dividends will be reinstated in the investment portfolio, as corporate earnings gradually return to pre-pandemic levels, which will enhance the scope for future grant-making.
As stated elsewhere in this report, the Trustees have started a strategic review of the Trust’s affairs which they hope to progress once the state of the pandemic allows for safer face-to face meetings to be held.
Statement of Trustees’ Responsibilities
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustees to prepare financial statements each financial year which give a true and fair view of the state of affairs of the Charity as at the end of the year and its financial activities during the year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). 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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make judgments and accounting estimates that are reasonable and prudent;
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follow applicable UK Accounting Standards and the Charities SORP, disclosing and explaining any departures in the accounts;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue to operate
The Trustees are responsible for ensuring that adequate accounting records are maintained that are sufficient to show and explain the Charity transactions and 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. They are also responsible for safeguarding the assets of the Charity and ensuring their proper application in accordance with charity law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the Trustees
N C Morrell Chairman 20 January 2022
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THE C. & J. B. MORRELL TRUST
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE C. & J. B. MORRELL TRUST
I report to the trustees on my examination of the accounts of The C. & J.B. Morrell Trust (the Trust) for the year ended 5 April 2021.
This report is made solely to the Charity's Trustees, as a body, in accordance with Section 154 of the Charities Act 2011. My independent examination work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my independent examination work, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
S B Wearing FCA DChA HPH, Chartered Accountants 54 Bootham York YO30 7XZ
20 January 2022
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THE C. & J. B. MORRELL TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021
| Notes Income and endowments from: Investments 3 Total Expenditure on: 4 Raising funds Investment management costs Charitable activities Total Net movement in funds before gains/ (losses) on investments Net gains/(losses) on investments 7 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Total Total Year ended Year ended 5 April 2021 5 April 2020 £ £ 65,261 78,903 65,261 78,903 14,560 14,826 3,114 134,781 17,674 149,607 47,587 (70,704) 674,959 (512,255) 722,546 (582,959) 2,263,882 2,846,841 £ 2,986,428 £ 2,263,882 Unrestricted Fund |
Total Total Year ended Year ended 5 April 2021 5 April 2020 £ £ 65,261 78,903 65,261 78,903 14,560 14,826 3,114 134,781 17,674 149,607 47,587 (70,704) 674,959 (512,255) 722,546 (582,959) 2,263,882 2,846,841 £ 2,986,428 £ 2,263,882 Unrestricted Fund |
|---|---|---|
| 78,903 | ||
| 14,826 134,781 |
||
| 149,607 | ||
| (70,704) (512,255) |
||
| (582,959) | ||
| 2,846,841 | ||
| £ 2,263,882 |
The notes on pages 9 to 14 form part of these accounts.
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THE C. & J. B. MORRELL TRUST
BALANCE SHEET AT 5 APRIL 2021
| Notes Fixed assets Investments 8 & 9 Current assets Cash at bank and in hand 10 Net current assets Total assets less current liabilities 11 Net assets Represented by: Unrestricted funds Funds Creditors: amounts falling due within one year Creditors: amounts falling due after one year |
Total Total 2021 2020 £ £ 2,847,406 2,219,625 171,073 122,487 24,051 70,230 147,022 52,257 2,994,428 2,271,882 8,000 8,000 £ 2,986,428 £ 2,263,882 2,986,428 2,263,882 £ 2,986,428 £ 2,263,882 Unrestricted Fund |
Total Total 2021 2020 £ £ 2,847,406 2,219,625 171,073 122,487 24,051 70,230 147,022 52,257 2,994,428 2,271,882 8,000 8,000 £ 2,986,428 £ 2,263,882 2,986,428 2,263,882 £ 2,986,428 £ 2,263,882 Unrestricted Fund |
|---|---|---|
| 122,487 70,230 |
||
| 52,257 | ||
| 2,271,882 8,000 |
||
| £ 2,263,882 | ||
| 2,263,882 | ||
| £ 2,263,882 |
Approved by the Trustees on 20 January 2022 and signed on their behalf by:
Mr N C Morrell Chairman
The notes on pages 9 to 14 form part of these accounts.
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THE C. & J. B. MORRELL TRUST
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 5 APRIL 2021
1. ACCOUNTING POLICIES
Legal entity
The C. & J. B. Morrell Trust is regulated by the Charities Commission (1071220). The registered address and principal place of business is 54 Bootham, York, YO30 7XZ.
Basis of preparation
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) issued in October 2019 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 Trust constitutes a public benefit entity as defined by FRS 102.
As described in the Trustees' Annual Report, special consideration has been given to the potential effects of the Covid-19 pandemic on the Charity. The Trustees have considered the future financial position, taking into account the current economic climate and its potential impact on sources of income and planned expenditure. They have a reasonable expectation that adequate financial resources are available to enable the Charity to continue in operational existence for the foreseeable future, and have adequate contingency plans in the event that income streams are reduced. Consequently, the financial statements have been prepared on the basis that the Charity is a going concern.
Funds structure
The unrestricted income fund comprises those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose.
Income recognition
All incoming resources are recognised once the Charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Expenditure
Raising funds
These are the costs incurred in the management of the Trust's investment portfolio.
Charitable activities
Grants are payments made to third parties in the furtherance of the charitable objectives of the Trust and are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside of the control of the Trust.
The other costs are associated directly with the management by the Trustees of the Trust's activities, including professional fees and costs of meetings.
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THE C. & J. B. MORRELL TRUST
NOTES TO THE ACCOUNTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2021
1. ACCOUNTING POLICIES (continued)
Irrecoverable VAT
The Trust is not VAT registered and accordingly all expenditure is shown gross of irrecoverable VAT where applicable.
Fixed asset investments
Investments are stated at market value as at the balance sheet date.
The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
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 between sale proceeds and opening market value.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Creditors and provisions
Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts due.
Financial instruments
The Trust only 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 their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2. REMUNERATION AND EXPENSES OF TRUSTEES
None of the Trustees received any remuneration or benefits by virtue of being a trustee of the Trust. Trustees were reimbursed £nil (2020 £501) for travelling expenses to trustee meetings. No expenses were reimbursed to Trustees (2020 three).
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THE C. & J. B. MORRELL TRUST
NOTES TO THE ACCOUNTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2021
3. INVESTMENTS
| INVESTMENTS | ||
|---|---|---|
| Property Alternatives Fixed income Interest on cash deposits UK equity International equity |
2021 £ 24,601 21,451 3,640 5,505 10,028 36 £ 65,261 |
2020 £ 31,375 27,404 3,588 6,264 10,134 138 |
| £ 78,903 |
4. ANALYSIS OF TOTAL EXPENDITURE
| Raising funds Stockbrokers' fees Charitable activities Grants (Note 6) Secretary's salary Trustee expenses Accountancy fees Administration fees Independent examiner's fee Insurance |
Support costs £ 14,560 - 1,500 - - 360 900 354 £ 17,674 |
Grants £ - - - - - - - £ - |
2021 £ 14,560 - 1,500 - - 360 900 354 £ 17,674 |
2020 £ 14,826 131,000 1,500 501 300 210 960 310 |
|---|---|---|---|---|
| £ 149,607 |
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THE C. & J. B. MORRELL TRUST
NOTES TO THE ACCOUNTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2021
5. STAFF COSTS AND NUMBERS
Payroll costs in respect of staff were:
| Wages and Salaries | 2021 £ 1,500 £ 1,500 |
2020 £ 1,500 |
|---|---|---|
| £ 1,500 |
No employee received employee benefits in excess of £60,000.
The average monthly head count was one (2020 one).
The key management personnel of the Trust comprise the Trustees and the Secretary (2020 the Trustees and the Secretary). The total employee benefits of the key management personnel of the Trust were £1,500 (2020 £1,500).
6. ANALYSIS OF GRANTS
| 2021 £ Recipients of institutional grants: To fund 'The Morrell Studies in Toleration': University of York - To fund a tractor collection project: The Yorkshire Museum of Farming - - £ - 7. GAINS/(LOSSES) ON INVESTMENT ASSETS 2021 £ Realised gains/(losses) on investment portfolio 24,614 Unrealised gains/(losses) on investment portfolio 650,345 £ 674,959 To fund a partnership with the Ebor Lectures Committee: York St John University |
2020 £ 100,000 15,000 16,000 |
|---|---|
| £ 131,000 | |
| 2020 £ (1,084) (511,171) |
|
| £ (512,255) |
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THE C. & J. B. MORRELL TRUST
NOTES TO THE ACCOUNTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2021
8. SCHEDULE OF INVESTMENTS
| Summary UK equity International equity Property Alternatives Fixed income |
Market Value 2021 £ 809,023 1,258,257 102,700 289,302 388,124 £ 2,847,406 |
Market Value 2020 £ 593,240 1,108,067 81,770 131,581 304,967 |
|---|---|---|
| £ 2,219,625 |
9. SUMMARY OF MOVEMENTS IN INVESTMENTS
| Opening market value at 6 April 2020 £ UK equity 593,240 International equity 1,108,067 Property 81,770 Alternatives 131,581 Fixed income 304,967 £ 2,219,625 |
Additions £ - - - 148,851 58,037 £ 206,888 |
Disposals £ - (229,453) - - - £ (229,453) |
Unrealised investment gains/(losses) £ 215,783 379,643 20,930 8,870 25,120 £ 650,346 |
Closing market value at 5 April 2021 £ 809,023 1,258,257 102,700 289,302 388,124 |
|---|---|---|---|---|
| £ 2,847,406 |
10. CREDITORS: amounts falling due within one year
| University of York - grant The Ebor Lectures Partnership - sponsorship The Yorkshire Museum of Farming - grant Accruals |
2021 £ - 4,000 15,000 5,051 £ 24,051 |
2020 £ 50,000 4,000 15,000 1,230 |
|---|---|---|
| £ 70,230 |
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THE C. & J. B. MORRELL TRUST
NOTES TO THE ACCOUNTS - CONTINUED FOR THE YEAR ENDED 5 APRIL 2021
11. CREDITORS: amounts falling due after one year
| The Ebor Lectures Partnership - sponsorship | 2021 £ 8,000 £ 8,000 |
2020 £ 8,000 |
|---|---|---|
| £ 8,000 |
12. RELATED PARTY TRANSACTIONS
Other than those disclosed in Note 2, there were no other related party transactions during the reporting period.
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