RUTH SMART FOUNDATION ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 HUNTERS Hunters Law LLP 9 New Square Lincoln's Inn London WC2A 3QN KKS.WVM.35490-1
RUTH SMART FOUNDATION ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 CONTENTS Page Statement of the Trustees. Responsibilities Trustees, Report Independent Examinerfs Report Statement of Financial Activities Balance Sheet 10 Notes to the Accounts 11-15
RUTH SMART FOUNDATION STATEMENT OF TRUSTEES. RESPONSIBLITIES IN RESPECT OF THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 In accordance with the Charity Commission's Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP {FRS 102)). Accounting for Charities, The Foundation trustees are responsible for preparing a trustees, annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted AGcounting Practice). The law applicable to charities in England and Wales requires the Foundation trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements, the trustees are required to: select suitable accounting policies and apply them consistently- observe the methods and principles in the applicable Charities SORP. make suitable judgements and estimates that are reasonable and prudent" state whether applicable accounting standards and statements of recommended practice have been followed subject to any material departures disclosed in the accounts" and prepare the financial slatements on the going concern basis unless it is inappropriate to presume that this basis applies. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. the applicable Charities {Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information in accordance with legislation in the United Kingdom goveming the preparation and dissemination of financial statements.
RUTH SMART FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Reference and Administratlve Detail Charity registration number 1080021 Principal address 9 New Square Lincoln's Inn London WC2A 3QN Trustees Wilfrid Edward Vemor-miles John Crosfield Vernor-miles Independent Examiners Burgess Hodgson LLP Chartered Accountants 27 New Dover Road Canterbury Kent CT1 3DN Solicitors Hunters Law LLP 9 New Square Lincoln's Inn London WC2A 3QN Bankers Child & Co 1 Fleet Street London EC4Y 1 BD Investment managers Quilter Cheviot Senator House 85 Queen Victoria Street London EC4V 4AB Pictet et Cie Route des Acacias 60 1211 Geneva 73 Switzedand Evelyn Partners Group Limited 45 Gresham Street London EC2V 7BG
RUTH SMART FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Structure Governance and Mana ement Governing document The Trust (hereinafter called the "Foundation") was established by the Will dated 11th October 1994 and Codicil dated 13th October 1997 of Ruth Elizabeth Smart (hereinafter called the "Testatrix") who died on 16th March 1999 and whose said Will and Codicil were proved in the Principal Registry of the Family Division of the High Courl of Justice on 2nd June 1999. The trusts of the Foundation were amended by a Charity Commission Scheme (hereinafter called -the Scheme") which caTne into effect on 11th August 2000. Method of appointment of new trustees The power of appointing new trustees is vested in the trustees. Organisational structure of the charity The trustees manage the Foundation generally and meet at least four times each year to take all decisions necessary jointly with regard to the review of the Foundation's activities and achievement of objectives. Certain day-to-day administrative tasks are delegated to the charity's legal and investment advisers and to Wilfrid Vernor-miles who acts as Chairman of the Board of Trustees. Volunteers Aside from the trustees the Foundation receives no assistsnce from volunteers. Wider Network The Foundation acts indepenijenuy and is not part of a wider network. Donations The Foundation is not involved in fundraising or publicity and rarely receives donations, other than from the Kinnoull Foundation with which the Ruth Smart Foundation shares an interest in rtain charitable beneficiaries. Related Parties The Foundation has no subsidiaries and is not connected with any other Foundation. Risk policy The trustees have a duty to identify and review the risks to which the Foundation is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. At each trustees, meeting any significant risks of the Foundation are discussed Where appropriate, risks are reported on and discussed in subsequent meetings. The trustees have reviewed the risks to which the Foundation is exposed and consider that they have established sufficient systems and ProdureS lo mitigate those risks.
RUTH SMART FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Ob ectlves and Activities for the Publlc Beneflt Objects and significant activities The Foundation maintains an investrnent portfolio and operates as a grant making Foundation. The Foundation is not involved in fundraising. The Foundation's governing documents provide that the trustees shall apply "the income and all or such part or parts of the capital for or towards such charitable purposes for the relief of the suffering of animals of any species who are in need of care and attention and towards the Maintenan of refuges, rescue homes. animal hospitals, sanctuaries and other facilities for the reception and care of unwanted animals and the treatment of sick or ill-treated animals and to make donations to such charitable institution or institutions whose purposes include any of the foregoing at such time or times and in such manner as my Trustees may in their absolute discretion think fit provided that my Trustees may in their absolute discretion for the period of twenty one years from the date of my death instead of applying the income of the Trust Fund in the year accumulate all or any part of such income at compound interest by investing the same and the resulting income in any authorised investment and hold the same as an accretion to and as part of Ihe capitsl of the Trust Fund wilhout prejudice to their right lo apply the whole or any part of such accurnulated income in any subsequenl year as if the same were income of the Trust Fund arising in the then current yearf.. The Foundation's governing documents state that Monies liable to be invested under the trusts hereof may be applied or invested in the purchase of or at interest upon the security of such shares, stock, funds, securities. land, buildings, chattels or other inveslments or propety of whatsoever nature or wheresoever (including the purchase of and making improvements, alterations, repairs and decorations to premises for use in connection with the charitable purposes of these trusts) whether producing income or not and whether involving liabilities or not or upon such personal credit with or without security as my Trustees shall in their absolute discretion think fit to the intent that my Trustees shall have the same powers in all respects as if they were absolute owners beneficially entitled" The Testatrix was an American lady who married an Englishman. The Foundation's governing documents record that, without fettering the trustees. absolute discretion, the Testatrix and her late husband were primarily interested in those animals accustomed lo Ihe companionship of, and dependent for their welfare upon, human beings. The trustees, policy is therefore to concentrate upon charitable organisations which directly benefit domestic animals in the United Kingdom and the United States of America. However, the trustees do not limit support to these two countries or to domestic animals but are a150 interested in domestic animal, conservation and wildlife organisations throughout Ihe world. It is the policy of the trustee5 to respond to every appeal reived. However, the trustees support a number of charities on a regular basis and in practi find that their income is fully committed and there is little, if any, surplus income available for distribution in response to unsoliciled appeals. As well as the geographical location and the charitable objeclives of an applicant, when considering applications for funding the trustees concenlrate on the following factors= (a) At existing levels of expendilure, how many years. reserves the appli(3nt's balance sheet shows. (b) The long term prospects of SucsS of the applicant's proposals.
RUTH SMART FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 (c) The dependence of the applicant upon any single source (induding the Foundation) of future funding. (d) The proportionate costs of administration and fundraising of the applicant. (e) The degree of relevant infomiation disclosed in appeals and accounts material. (f) The degree to which the trustees have been informed of progress made sin, and the use of Foundation funds from. previous grants. Public Benefit Staternent The trustees consider that the Foundation's activities. as set out in its Objectives and Activities detailed above, are for the public benefit. The trustees confirm that they have complied wilh their duty under s17(5) of the Charities Act 2011 to have due regard io the gu1(jan publlshed Dy Ihe cnarlty Commission for England and Wales. Achievements and Performance Charitable activities During the year to 31st December 2023 the Foundation received income from its investments of £102,742.99 (£96,584.57 in 2022) and a donation of £56.306.31 (£56,024.29 in 2022) .The trustees made charitable donations totalSing £159,546.98 (£163.444.42 in 2022) The largest donation was £20.109.40 and the smallest Was £1,608.75. Investment Performance The Foundation has professional investment advisers and brokers who generally manage the charity's investments during the year, subject to the review of the trustees. After accounting for all investments sold and purchased during the year, the value of the Foundation increased during the year by £332,180.54 (it decreased by £1,046,603.29 in 2022) Therefore. having spent £114.418.40 (£121,111.61 in 2022) more than the total income received during the year. the charity increased in value during the year by +5.390/0 (it decreased by -14.51 /0 in 2022) to £6,497,348.31 (£6,165.167.77 in 2022). Without accounting for total expenditure (including donations). the total retu on the FoundatlOfl'5 investments during the year (including income and realised and unrealised gains and losses} was a credit of £549.341.93 (decrease of £828,907.11 in 2022)- This equates to an overall increase in the value of the Foundation of +8.91 % (decrease of -11.49 % in 2022) which is less favourable compared to the first of the following relevant indices (being the one m05t relevant to the Foundation's portfolio structure).. 1.1.2023 to 31.12.2023 MSCI PIMFA Private Inveslor Global MSCI UK Large companies MSCI UK Large and Medium companies +15.8% +7.7% +8.0¥0 Calculation of Realised gains and Losses The average cost method has been used to calculate realised gains or losses on investment sales.
RUTH SMART FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Financial Review Reserves policy The trustees consider it prudent that unrestricted reserves should be retained to produce an overall return (including income and long-term capital appreciation) sufficient to maintain the current level of expendilure, including donations and all expenses. The trustees are currently holding a reserve of £6,497,348.31. Principal funding sources The Foundation's income is derived mainly from its investment portfolios. All investment income is accounted for when received. All income is received gross. Investment policy and objectives The Foundation's governing document places no restrictions on the discretion of the trustees in investing the Foundation's assets. It is the policy of the trustees to invest its funds in a mixture of bonds (Government-issued or corporate) and worldwide equities (including collective investments) lo achieve a balanced return in the long term between accumulated income and capital appreciation. Aside from cash on deposit. the Foundation's financial investments are held by the Foundation's investment advisers The trustees take advice from their investment advisers on their investmenl strategy and on all investment decisions. The trustees must exercise care and skill when making investment decisions and select investments that are right for the Foundation, including Ihe need to diversify the Foundalion's investments. The investments are reviewed by correspondence at least four times a year and at each trustees, meeting. Each review of the Foundation. investments includes a review of the investment advisor's advice, how the Foundation's investments are performing and of the Servi provided by the Foundation's investment advisors. The Foundation does not follow an ethical investment policy. Future dèvelo ments The Trustees expect to be able to continue at approximately the same level of activity in 2024 as in previous years. The Foundalion will continue to operate solely as a grant-making charity.
RUTH SMART FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 We declare that in our capacity as the charity's trustees. that we have approved the report above. Wilfrid Edward Vernor-miles John Crosfield Vernor es
Independent Examiners Report to the Trustees of Ruth Smart Foundation I report on the accounts of the Trust for the year ended 31 December 2023 Respective responsibilities of trustees and examiner The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required forthis year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to- examine the accounts under section 145 of the 2011 Act. to follow the procedures laid down in the General Directions given by the Charity Commissioner under section 145(5)(b) of the 2011 Act,. and to state whether particular matters have come to my attention. Basis of independent examinerfs report My examination was carried out in accordance with the General Directions given by the Charity Commissioner. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and the seeking of explanations from you as trustees conmIng any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and, consequently no opinion 15 given as to whether the accounts present a 'true and fair view, and the report is limited to those matters set out in the statement below. Independent examinerts statement In connection with my examinats"on, no matter has come to my attention: which gives me reasonable cause to believe that, in any material respect, the requirements: (a) (b) to keep accounting records in accordance with seclion 130 of the 2011 Act., and to prepare accounts which accord wrth the accounting records and to comply with the accounting requirements of the 2011 Act have not been met.. or to which, in my opinion. attention should be drawn in order to enable a proper understanding of the accounts to be reached. Colin Reid FCA Burgess Hodgson LLP Chartered Accountants 27 New Dover Road Canterbury Kent CT1 3DN September 2024
RUTH SMART FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notes Incoming resources Incomin9 resources from generated funds Investment Income 102,742.99 96,584.57 Donations Received 56,306.31 56, 024.29 Total incoming resources 159,049.30 152,608.86 Resources Expended Investment Management cost 44.829.07 46,621.62 Charitable activities Governance costs Other resources expended 159.546.98 67.801.40 1.290.25 163.444.42 62.36g. 20 1,285.23 Total resources expended 273,467.70 273.720.47 Net incomingl(outgoing) resources before other recognised gainsl(losses) (114,418.40) (121,111.61) Realised and Unrealised Gains Currency Exchange Gainsl(Losses) 441,205.51 5,393.43 (943, 037. 70) 17,546.02 Net movement in funds 332,180.54 (1,046,603.29) Tolal funds brought forward 6,165,167.77 7,211,771.06 Total funds carried forward 6,497,348.31 6, 165,167.77 Please note that there are no Restricted or Endowment Funds
RUTH SMART FOUNDATION BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Fixed assets Quoted stocks and shares 6.175.765.78 5,913,457.05 Total fixed assets 6,175,765.78 5,913,457.05 Current assets Cash at bank Debtors and prepayments 355,475.33 72.00 277,664.03 218.89 Total current assets 355,547.33 277, 882. 92 Creditors: amounts falling due within one year (33,964.80) (26, 172. 20J Net current assetsl (liabilities) 321,582.53 251,710.72 Net assets 6,497,348.31 6, 165,167.77 Unrestricted Funds (Page 9) 6,497,348.31 6,165,167.77 -10-
RUTH SMART FOUNDATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 Basis of Preparation Basis of Accountin The accounts (financial slatements) have been prepared under the historical cost convention with ilems recognised al cost or transaction value unless otherwise stated in the relevant note{sl to these account5. The financial statements have been prepared in accordance with the Statement of Recommended Practice= Accounting and Reporting by Charities preparing their account5 Iri accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 102) and the Charities Act 2011. Chan e in Basis of Accountin There has been no change to the accounting policies (valuation rules and methods of accounting) since last year. Chan eto vious Accounts No Changes have been made to accounts for previous years. Accounting Policies Incoming resources are included in the Statement of Financial Activities (SoFA} when.. the charity becomes entitled to the resources- the trustees are virtually certain they will receive the resources,. and the monetary value can be measured with sufficient reliability. Where incoming resources have related expenditure. the incoming resources and related expenditure are reporled gross in the SOFA. Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources. Incoming resources from tax reclaims are included in the SOFA at the same ts.me as the income to which they relate. Investment income is included in the accounts when ceivable. Investment gains and losses include any gain or loss on ihe sale of investments and any gain or loss resulting from revaluing the investments to market value at the end of ihe year. Liabilities are recognised as soon as there is a legal or constructive obligation Gommitting the charity lo pay out resources. Govemance costs include the cost of the preparation and examination of statutory accounts, the cost of trustee meets'ngs and cost of any legal advice to the trustees on governance or constitutional matters.
RUTH SMART FOUNDATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 Grants payable are paymenls made to third parties in the furtherance of the charitable objectives of the trust. The grants are accounted for where eiiher the trustees have agreed to pay the grant without condition and Ihe recipient has a reasonable expectation that they will receive the grant, or any condition attaching to Ihe grant is outside the control of the trust. 2.10 Investments quoted on a recognised stock exchange are valued at market value at the year end. 2.11 The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amount reported. Accounting estimales and assumptions are made concerning Ihe future and, by Iheir nature. will rarely equal the related actual outcome. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 2.12 Financial liabilities and equity instruments are dassified according to the substance of the contractual arrangement entered into. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at transaction price induding transaction Gosts. Subsequently. they are measured al amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. Investment Assets 2023 2022 Quoted investments Market value brought forward Additions Disposals Net realisedlunrealised investment gainsl {losses) 5.913,457.05 538,602.30 (717,499.08) 441,205.51 7,094, 773.13 707,670.29 (974,237.67) (914,748. 70) Investments Listed on a recognised stock exchange 6,175.765.78 5,913,457.05 Investments at Market Value Comprised:. 2023 2022 Equities Fixed Interest securities 5.333,845.04 841,920.74 5,104.819.86 808,637. 19 6,175,765.78 5,913,457.05 All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in comtnon investmenl funds. unit trusts and openended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value. using the bid price. Asset sales and purchases are recognised al the date of trade at cost (that is their transaction value)_ -12-
RUTH SMART FOUNDATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 Chattels 2023 2022 Value brought forward Disposals Net realisedlunrealised investment gainsl (105ses) 48.189.00 (19,900.OOJ (28,289.OOJ Remaining value of chattels During the previous year, the trustees disposed of the remaining chattels held as investments since the settlor's death. At 31 December 2022. the book value of the chattels was reduced to Cash account balances 2023 2022 Pictet Euro account Pictet US Dollar account Pictet GBP account Pictet CHF account Evelyn account Quilter Cheviol Capital account Quilter Cheviol Income account Child & Co Hunters client account 20.616.05 11.365.50 1.309.77 177.747.67 65,376.45 76.376.77 16,370.24 5,830. 72 3.49 162, 746.39 2,468.98 8,353. 65 15,361.45 35,324. 55 31204.56 277. 664. 03 2 683.12 355 475.33 Debtors and Prepayments 2023 2022 LSE - LEI Renewal fee 2023 Dividends Receivable 72.00 72.00 146.89 72.00 218.89 Creditors: Amounts Falling Due Within One Year 2023 2022 Legal, Secretarial and Administration Fees Independent Examination Fees 32,974.80 990.00 25,297.20 875.00 33,964. Transactions With Trustees No Trustee is or has been entitled lo any fee or salary (2022 - NIL)_ No Trustees incurred or were reimbursed for travel expenses {2022 - NIL). -13-
RUTH SMART FOUNDATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 Wilfrid Vernor-miles was reimbursed expenses for a Trustees. meeting held during the year of £148 ( NIL). There were no transactions with Trustees or connected persons (2022 - NIL). Wilfrid Vernor-miles is a Trustee of the Foundation and also a profit sharing Member of Hunters Law LLP. Provision is included in the accounts for Hunters to receive fees of £55,457 plus VAT for legal, secretarial and administration services. Analysis of incoming Resources 2023 2022 Investment Income Interest on Bonds, Gills & Loan Notes Dividends on UK Equities Foreign Savings Inlere5t Dividends on European Equities Dividends on US Equities Interest on Bank Deposits 8,571.19 50.496.78 1.085.21 25,377.74 15,193.49 2,018.58 2,817.05 51.302.90 264. 14 29,109.34 12,943. 55 147.59 102 742.99 96 584.57 2023 2022 Donations Received Kinnoull Foundation 56,306.31 56,024.29 Analysis of Resources Expended 2023 2022 Investment Management fees Piclel Quilter Cheviot Evelyn 14.254.89 16.666.68 13,907.50 14,568.03 17,496. 76 14, 556.83 44,829.07 46,621.62 Charitable Activities 2023 2022 Animals Asia Foundation Belize Zoo Blue Marine Foundation Brooke Hospital for Anima15 4.000.00 1,608.75 4,000.00 2.000.00 4,000.00 1,600.69 4,000.00 2,000.00 -14-
RUTH SMART FOUNDATION NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Clearwater Marine Aquarium David Shepherd Wildlife Durrell Wildlife Conservation Endangered Species Protection Agency Fauna & Flora International Friends of Cotnmunity Animal Services Hugs Foundation Internalional Animal Rescue Marine Conservation Society Mauritian Wildlife Foundation Middlebury Institute of Inlemational Studies Monterey County SPCA Muttville Peace of Mind Dog Rescue Pine Ridge Dog Sanctuary Reef Conservation Royal Veterinary College San Francisco Zoo Spay Neuter Imperative Project The Shanti Project Ventana Wildlife Society Wildfowl & Wetlands Trust Wildlife Conservation Society Wonder Dog Rescue Woddwide Veterinary Service 4,021.88 5,000.LKI 4.001. 74 5.000.00 2,000.00 4,000.00 10,000.00 3.201.39 4.000.00 10.000.00 3,217.50 2,000.00 2.000.00 2.000.00 12.000.00 9,652.51 20.109.40 4.021.88 7.239.38 2,000.00 2, 000.00 3, 000.00 12, 000.00 9,604.16 20, 008.68 2,401.04 7,203.12 2, 000.00 2, 000.00 3, 000.00 16, 006.94 2,401.04 6,402.78 18,407.98 3, 000.00 7,203. 12 4,001.74 3 000.00 163,444.42 4,000.00 16,087.52 2.413.13 6,435.01 18,500.64 3.000.00 7,239.38 3.000.00 159,546.98 Governance Costs 2023 2022 Independent Examination Fees Legal, Secretarial and Administration Fees Trustee Meeting Expenses 1,105.00 66,548.40 148.00 67 801.40 1,051.00 61,318.20 62,369. 20 Other Resources Expended 2023 2022 Bank Charges Foreign Custody Charges 292.11 998.14 1.290.25 345.45 939.78 1285. 23 The Trust employed no staff during Ihe year ended 31 December 2023 {2022 - none). -15-