Ref: H18
Registered Charity Number 1086811
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
REPORT AND FINANCIAL STATEMENTS
For the year ended 5 April 2022
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Information | 1 |
| Trustees’ Annual Report | 2 - 4 |
| Report of the Independent Examiner | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 - 15 |
THE ROBERT FLEMING HANNAY FLEMING MEMORIAL CHARITY
REFERENCE AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 5 APRIL 2022
The Robert Fleming Hannay Memorial Charity was established under a Trust Deed dated 1 August 2000, which determined the objects and powers. The Robert Fleming Hannay Memorial Charity is registered with the Charity Commission for England and Wales as Charity Number 1086811.
TRUSTEES
Fiona Elizabeth Hannay Geoffrey Adrian Richards Christian Alison Kathleen Ward
PRINCIPAL OFFICE
The Robert Fleming Hannay Memorial Charity c/o RFT Management Services Limited 14 Buckingham Street London WC2N 6DF
INDEPENDENT EXAMINER
N Finlayson FCA Moore Kingston Smith LLP 9 Appold Street London EC2A AAP
SOLICITORS
Bircham Dyson Bell LLP 50 Broadway Westminster London SW1H 0BL
REGISTERED CHARITY NUMBER
1086811
Page 1
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
TRUSTEES’ ANNUAL REPORT FOR YEAR ENDED 5 APRIL 2022
The Trustees present their report along with the financial statements of the charity for the year ended 5 April 2022. The financial statements have been prepared in accordance with the Charity’s Trust Deed, the Charities Act 2011, as amended, and the reviewed Statement of Recommended Practice – Accounting and Reporting by Charities (SORP 2015).
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Trustees who held office throughout the year are shown on page 1.
The Trust Deed stipulates that there shall be no less than two Trustees. New Trustees, when required, are selected by the serving Trustees and are appointed by a Resolution of existing Trustees. New Trustees undergo an induction to acquaint them with the activities of the charity.
No Trustee receives a fee for the service they provide to the charity, all time spent is donated free of charge.
The Trustees meet a minimum of two times a year.
RFT Management Services Limited provides the charity with charity administration and financial reporting services.
OBJECTS AND ACTIVITIES
The Charity’s objects are the support such institutions and purposes which are charitable according to the law of England and Wales, in such manner and such proportions as the Trustees shall from time to time at their discretion decide.
The Trustees have been granted wide powers in furtherance of the Charity’s objects.
GRANT MAKING POLICY
The Trustees consider applications and make grants they receive from various sources at the Trustee meetings. However, due to constraints on income, unsolicited applications can no longer be considered. Although some donations may be made to the same charities each year none shall be either promised or guaranteed.
The Trustees have considered the Charity Commission’s general guidance on public benefit including the guidance ‘public benefit: running a charity (PB2)’. In particular, the Trustees consider how grants can be made to ensure maximum benefit flows through to the intended ultimate beneficiaries.
Page 2
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
TRUSTEES’ ANNUAL REPORT FOR YEAR ENDED 5 APRIL 2022 (CONT’D)
ACHIEVEMENTS AND PERFORMANCE
During the year the Trustees made donations totalling £129,000 (2021 - £144,000) to other charitable organisations, as detailed in note 6.
In addition, the Trustees made donations totalling £184,000 in respect of ongoing grants agreed in prior years (and accrued in prior year accounts) to other charitable organisations.
The Trustees look forward to being able to continue their charitable work in the coming years in accordance with the grant making policy.
FINANCIAL REVIEW AND INVESTMENT POLICY
The Charity’s principal source of income is from its investments which totalled £33,933 (2021 - £53,295). During the year the Trustees spent £138,326 (2021 - £152,605) on charitable activities and the governance and administration of the Charity.
The Trustees have an agreed an investment policy for the Charity’s investment portfolio and have instructed the investment managers that the portfolio is to be invested to produce a suitable mixture of income and capital growth. The Trustees continue to monitor the performance of the portfolio with regular investment reports
To meet these objectives, the Charity’s investments are managed across a range of asset classes, maintaining diversification, to produce an appropriate balance between risk and return.
FUTURE PLANS
The Trustees do not envisage any material changes to the operation of the Charity.
RESERVES POLICY
The capital is an expendable endowment, and, at this time, the Trustees do not consider a specific Reserve Policy necessary. However, to ensure there is cash available for any emergency the Trustees have instructed that £50,000 of the investment portfolio is held as “cash not for investment”. At the Balance Sheet date, the reserves of the charity, including the expendable endowment, amounted to £2,142,342.
RISK MANAGEMENT
The Trustees have reviewed the major risks to which the Charity is exposed and are satisfied that systems are in place to mitigate those risks. The principal risk faced by the Charity is an investment risk. This risk could be the reduction in the capital value of the investments and the income derived from the investments, required by the Trustees in meeting their charitable objectives. This risk has been addressed by the appointment of professional advisors to monitor investment performance and to decide on acquisitions and disposals
Page 3
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY TRUSTEES, ANNUAL REPORT FOR YEAR ENDED 5 APRIL 2022 ICONT'DI KEY MANAGEMENT PERSONNEL The Trustees aiE conbidered to be l.he Key Manageent Personnel of thc. chaity- 'fhe Trustees are not remunerat¢.d for their services and there are no paid staff emploved. RFT Management Services Limited prowdes the Trustees with charity adtninistrabon and finaNcial reporting Servi$. STAI'EMENT OF TRUSTEES, RESPONSIB TLTIES FOR THE FINANCIAL STATEMENTS lThe Trustees are re.sponsible for preparing the Trnstees, Report and the financial statement5 in acLra3 with applicable law and United Kinsdom Accounting Standards (United Kingdom Generally Acpted Accounting PraLticc). The law applicable to charities in England and Wales requires the Trustees to prepare Einancial statements for each Einanaal y&ir which give a tswe. and fair view of the statc of affaiis of the Charity and of the incoming resources and application of resourw for that period. In prepwing those financial statements the Trustees are reqUa to.. lect suitable accounting policies and then apply thern LOnS15tently,' Observe the methods and principles in the CharKties SORP,. Make iudsments and estiinates that are reasonable and prudent,. Prepare the fiTkninaal statemcnts on a going concern basis unless it is inappTOPTiate to presume that the charity will continue itl business. The Trustees are Te5ponsible for keepins proper accouThtin8 record5 that disclose with reas(Jnable aLLracY al any time the financial position of the charity and to enablc them to ensuTe the financial btatements comply with the Charities Act 2011, the Charitieb SORP and the provisions of the trust deed5. They are also respi>nsible fot safeguarding the abbets of the Charity and hence for taking reasonable steps for the prevention and detection of traud and other irre.gularities. Approved by the Trustees and signed on their behalf by.. C A RICHARDS Trustee Dated Page 4
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
INDEPENDENT EXAMINER’S REPORT
TO THE TRUSTEES OF THE ROBERT FLEMING HANNAY MEMORIAL CHARITY FOR THE YEAR ENDED 5 APRIL 2022
I report to the trustees on my examination of the accounts of the Robert Fleming Hannay Memorial Charity for the year ended 5 April 2022.
Responsibilities and basis of report
As the trustees of the charity 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 Charity’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:
-
accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
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.
Neil Finlayson
Moore Kingston Smith LLP, Chartered Accountants 9 Appold Street London EC2A 2AP
Date:
Page 5
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2022
| NOTE INCOME Investment Income 3 Rental Income 3 TOTAL INCOME EXPENDITURE Cost of Generating Funds 4 Charitable activities 5 TOTAL EXPENDITURE Gains on investments Realised 9 Unrealised 9 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS Gross transfers between funds 8 NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS Total funds brought forward BALANCE CARRIED FORWARD |
Expendable Endowment £ Income £ 2022 Total Unrestricted Funds £ - 32,746 32,746 - 1,187 1,187 |
2021 Total Unrestricted Funds £ 51,795 1,500 |
|---|---|---|
| - 33,933 33,933 |
53,295 | |
| 15,348 - 15,348 8,346 129,980 138,326 |
24,970 152,605 |
|
| 23,694 129,980 153,674 |
177,575 | |
| 9,091 - 9,091 72,461 - 72,461 |
28,943 317,210 |
|
| 57,858 (96,047) (38,189) (96,047) 96,047 - |
221,873 - |
|
| (38,189) - (38,189) 2,180,531 - 2,180,531 |
221,873 1,958,658 |
|
| 2,142,342 - 2,142,342 |
2,180,531 |
CONTINUING OPERATIONS: all of the charity’s activities relate to continuing operations.
TOTAL RECOGNISED GAINS AND LOSSES: the charity has no recognised gains and losses other than those shown in the statement of financial activities.
Page 6
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY BALANCE SHEET AS AT 5 APRIL 2022 NOTE 2()22 2021 FIXED ASSE.TS Investment property vestments 225,002 1,937,342 2,162,344 225.002 1014,981 2,239,983 CUIIRENT ASSETS Debtors Cath at Bank io 10,846 I6,s 27.084 31,(X)6 31.006 LIABILInES Creditors.. Ealling due wthin one year li {26,IX)8) 1615361 NET CURRENf ASSETSI ILIABILITXESI 4,998 (3£4521 Creditors- falling due after one year 125,WOI 125.0001 NET ASSETS 12 2.142J42 2.180531 ReFre5enting'. UNRE5TR1CTED FUNDS Endowment lund Income 2,142,342 2,180.531 2,142,342 1180,531 Approved by the Twstees and sisned on their behalt by.. G A RICHARDS Trustee Dated Pa8e7
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022
1. ACCOUNTING POLICIES
(a) Basis of Preparation
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charity is a public benefit entity for the purposes of FRS 102 and a registered charity and therefore has also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), and Charities Act 2011, as amended. The financial statements are prepared in sterling, which is the functional currency of the Charity and rounded to the nearest pound.
(b) Going Concern
The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. The most significant areas of uncertainty that affect the carrying value of assets held by the Charity are the level of investment return and the performance of investment markets (see the investment policy and risk management sections of the Trustees’ annual report for more information).
(c) Fund Structure
Unrestricted Funds comprise those funds which the Trustees are free to use in accordance with the charitable objects.
The Expendable Endowment Fund represents those assets which are held for the longer term for the Charity, in accordance with the terms of the Trust Deed. Income arising on the Expendable Endowment Fund can be used in the Unrestricted Income Fund. As an Expendable Endowment Fund can be used in accordance with the objects of the Charity and is included in the unrestricted funds, capital can also be spent in certain circumstances in fulfilment of the Trust’s objects. Any capital gains or losses arising on the investments held in the Expendable Endowment Fund form part of that Fund.
(d) Income
All income is recognised in the Statement of Financial Activities (SOFA) when the conditions for receipt have been met and there is reasonable assurance of receipt. Where a claim for repayment of income tax has or will be made such income is grossed up for the tax recoverable. The following accounting policies are applied to different categories of income:
Investment Income
Investment income is accounted for when receivable and is stated gross of any reclaimable taxation relief.
Rental Income
Rental income is accounted for when receivable and is stated gross of any reclaimable taxation relief.
Page 8
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 (CONT’D)
1. ACCOUNTING POLICIES (CONT’D)
(e) Expenditure
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The following accounting policies are applied to the different categories of expenditure:
Costs of generating funds
The costs of generating funds consist of investment management and related costs.
Charitable Activities
Costs of charitable activities include grants made and support and governance costs. Donations payable are recognised when they are approved by the trustees and the recipient of the grant has been informed of the amount to be paid.
Support & Governance Costs
Support and Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include expenses related to the independent examiner’s fee, professional fees, and support costs.
(f) Investment Property
Property is stated at market value at the balance sheet date. It is the policy of the trustees to revalue the property every 5 years, where they believe that a significant difference to carrying value has arisen.
(g) Fixed Asset Investments
Investments are valued at market value at the balance sheet date. The SOFA includes the net gains and losses on revaluation and disposals throughout the year.
(h) Foreign Currencies
Transactions in foreign currencies are recognised at the rate of exchange at the date of transaction. Monetary assets and liabilities are translated into sterling at the rate of exchange on the balance sheet date. Exchange differences are recognised through the statement of financial activities.
(i) Realised and Unrealised Gains and Losses
All gains and losses are taken to the SOFA as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).
(j) Critical accounting estimates and areas of judgement
In preparing financial statements, it is necessary to make certain adjustments, estimates and assumptions that affect the amounts recognised in the financial statements. In the view of the Trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
Page 9
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 (CONT’D)
1. ACCOUNTING POLICIES (CONT’D)
(k) Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand and short term deposits with a maturity date of three months or less.
(l) Financial Instruments
The charity has elected to apply the provisions of Section 11 Basic Financial Instruments of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
2. INFORMATION REGARDING TRUSTEES AND EMPLOYEES
In the financial year ended 5 April 2022 none of the trustees received any remuneration for their services in the year (2021- Nil). The Charity has no employees.
In the financial year ended 5 April 2022 one trustee had expenses totalling £580 reimbursed by the Charity in respect of meeting costs (2021 £nil).
The trustees are considered to comprise the Charity’s key management.
3. INVESTMENT INCOME
| Income from Investments Interest on cash deposits Rental Incomee 4. COSTS OF GENERATING FUNDS Investment Management Fees (after rebates) Custody & Administration Fees Investment Advisor Fees |
2022 £ 2021 £ 32,715 51,763 31 32 1,187 1,500 |
|---|---|
| 33,933 53,295 |
|
| 2022 £ 2021 £ (68) (41) 3,416 4,731 12,000 20,280 15,348 24,970 |
Page 10
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 (CONT’D)
5. CHARITABLE ACTIVITIES
The charity undertook no direct charitable activities but awarded donations to in furtherance of its charitable activities as follows:-
| Cobbe Collection Holy Trinity Church, Brompton Hampshire Medical Macmillian Cancer Support The Children Society The Purcell School Downs Sydrome Association Help Musician UK Hardship Fund The Klosters Apline Concerts Verin We hear you Why Anti-Slavery International Christian Aid N.S.P.C.C Tear Fund (The) Save the Children Fund UNICEF -UK Support and governance costs (see note 7) |
2022 £ 25,000 20,000 10,000 10,000 10,000 10,000 5,000 5,000 5,000 5,000 4,000 4,000 4,000 4,000 4,000 4,000 |
|---|---|
| 129,000 9,326 |
|
| 138,326 |
6. ANALYSIS OF DONATIONS MADE
| The prevention of relief of poverty The advancement of religion The advancement of education The advancement of health or the saving of lives The advancement of the arts, culture, heritage or science The advancement of human rights, conflict resolution or reconciliation, or the promotion of religious or racial harmony or equality or diversity The relief of those in need by reason of youth, age, ill- health, disability, financial hardship or other disadvantage |
2022 No. 2021 No. 2022 £ 3 3 12,000 3 1 45,000 1 4 20,000 4 3 28,000 4 5 15,000 1 1 4,000 1 1 5,000 |
2021 £ 12,000 15,000 50,000 18,000 40,000 4,000 5,000 |
|---|---|---|
| 17 18 129,000 |
144,000 |
Page 11
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 (CONT’D)
7. SUPPORT AND GOVERNANCE COSTS
| Independent Examiner’s Fee- Current Year Independent Examiner’s Fee -prior year under accrual Legal and Professional Fees Travel Expenses Bank Charges |
Unrestricted Expendable Endowment £ Unrestricted Income £ 2022 Total £ 4,000 - 4,000 (220) - (220) 4,566 - 4,566 - 580 580 - 400 400 |
2021 Total £ 4,000 (340) 4,563 - 382 |
|---|---|---|
| 8,346 980 9,326 |
8,605 |
8. FUND TRANSFERS
The Trustees made a transfer of £96,047 (2021 - £91,087) from the Expendable Endowment Fund to the Income Fund in respect of the charitable activities.
9. FIXED ASSET INVESTMENTS
Investment property
| Value brought forward Value carried forward |
2022 £ 2021 £ 225,002 225,002 |
|---|---|
| 225,002 225,002 |
The Charity owns a 50% share of the property known as 10 Home Farm, Heddington, Wiltshire, from which rental income is receivable (note 3). The valuation of the property represents 50% of the initial purchase price paid in December 2013. The Trustees are of the opinion that the current market value is not materially different from the cost shown above.
Page 12
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 (CONT’D)
9. FIXED ASSET INVESTMENTS (CONT’D)
Movement in fixed asset investments
| Market Value Brought Forward Acquisitions at Cost Less Disposal Proceeds Realised gain on disposals Net (loss)/gain on revaluation Market Value Carried Forward Historical Costs Geographical Analysis United Kingdom investments Overseas investments |
Unquoted Investments Quoted Investments Total 2022 £ 2021 £ 2022 £ 2021 £ 2022 £ 21,158 28,583 1,993,823 1,816,661 2,014,981 - (1,224) 103,000 44,243 103,000 (10,277) - (251,914) (219,435) (262,191) 837 - 8,254 28,943 9,091 (8,118) (6,201) 80,579 323,411 72,461 |
Total 2021 £ 1,845,244 43,019 (219,435) 28,943 317,210 |
|---|---|---|
| 3,600 21,158 1,933,742 1,993,823 1,937,342 |
2,014,981 | |
| 34,433 45,587 1,811,097 1,885,180 1,845,530 35 7,951 1,886,910 1,914,152 1,886,945 3,565 13,207 46,832 79,671 50,397 |
1,930,767 1,922,103 92,878 |
|
| 3,600 21,158 1,933,742 1,993,823 1,937,342 |
2,014,981 |
The following investments comprise in excess of 5% of the value of the portfolio:
| Holding | Value | |
|---|---|---|
| (£) | ||
| Thesis Unit Management Ltd Northern Lights | 1,377,710 | 1,723,766 |
| TM Stonehage Fleming GBL Equities A INC | 27,036 | 113,144 |
10. DEBTORS
| Rent Due Income Due |
2022 £ 2021 £ - 1,813 - 9,033 |
|---|---|
| - 10,846 |
Page 13
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 (CONT’D)
11. CREDITORS
Creditors Falling Due within one Year
| Accruals Grant Creditors Accruals Grant Creditors |
Unrestricted Expendable Endowment £ Unrestricted Income £ 2022 Total £ 6,008 - 6,008 - 20,000 20,000 |
|---|---|
| 6,008 20,000 26,008 |
|
| Unrestricted Expendable Endowment £ Unrestricted Income £ 2021 Total £ 6,536 - 6,536 - 55,000 55,000 |
|
| 6,536 55,000 61,536 |
Creditors falling due after one year
| Grant Creditors Grant Creditors |
Unrestricted Expendable Endowment £ Unrestricted Income £ - 25,000 |
2022 Total £ 25,000 |
|---|---|---|
| - 25,000 |
25,000 | |
| Unrestricted Expendable Endowment £ Unrestricted Income £ - 25,000 |
2021 Total £ 25,000 |
|
| - 25,000 |
25,000 |
Page 14
THE ROBERT FLEMING HANNAY MEMORIAL CHARITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 (CONT’D)
12. ANALYSIS OF CHARITABLE FUNDS
| Investments Cash at bank Creditors Investments Debtors Cash at bank Creditors |
Unrestricted Expendable Endowment £ Unrestricted Income £ 2,162,344 - 16,616 14,390 (36,618) (14,390) |
2022 Total £ 2,162,344 31,006 (51,008) |
|---|---|---|
| 2,142,342 - |
2,142,342 | |
| Unrestricted Expendable Endowment £ Unrestricted Income £ 2,239,983 - 10,846 - 9,756 6,482 (80,054) (6,482) |
2021 Total £ 2,239,983 10,846 16,238 (86,536) |
|
| 2,180,531 - |
2,180,531 |
13. FUTURE COMMITMENTS
The Trustees have indicated an ongoing pledge of £15,000 per year to Holy Trinity Church, Brompton for the foreseeable future. This will be recognised each year as the amounts are paid.
14. RELATED PARTY TRANSACTIONS
Mr G A Richards is a member of the Council for The Royal College of Music to whom donations totalling £nil were paid during the year (2021: £30,000).
Page 15