CHARITY REGISTrATION NUMBER: 1102415 THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONAL AWARDS FUND TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONALAWARDS FUND FOR THE YEAR ENDED 31 DECEMBER 2023 INDEX Page Trustees, Report Report of the Independ8nt Auditors 10-13 Statement of Flnanclal Actlvltles 14 Balance Sh88t 15 Notes to the Accounts 18-19 THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONAL AWARDS FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 CHARITY REGISTRATION NUMBER: 1102415 PRINCIPAL ADDRESS: The Honourable Socièty of Lincoln's Inn Treasury Office Lincoln's Inn London WC2A3TL NAMES OF CHARrrY TRUSTEES: Mr A G Boyle KC ICh8lrrnanl MrDHDayKC Mr J M Jarvis KC Mr P Jon8s KC BANKERS: C. Ho8re & Co 37 Fleet Str88t London EC4P 4DQ AUDITORS: Haysmaclnlryre LLP 10 Queen Street Plac& London EC4R 1AG INVESTMENT MANAGERS: Legal & General Group PIC Leg81 & General Inve$lm8nt Management Onè Colèman Street London EC2R SAA THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONAL AWARDS FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report and the audlted flnanclal stateTn8nts for the year ended 31 December 2023. The financial statements have been prepared on the basls of the accounting policies sel out on page 12 of the financial slalemgnts and comply with the charitls governing scheme, appllcable law and the requirements of the Statement of Recommended Practice - 'Accounting and Reporting by Charities. issued in October 2019. CONSTITUTION AND PURPOSE OF THE CHARITY On 9 December 2003 the Trustees merged a number of existing charities in accordance with charity Commission Scheme. These were: . The Bennett Fund The Bernard Sunley (Waller Wiggl8SWOrth} Memorfal The Brigid Cotter Fund The Buchanan Prize (3142411 The Cassel Scholarship Trust13139941 The Droop Scholarshlp Trust13135681 the Hubert Greenland Fund The Isaac Wolfson Fund The Kennedy Fund13135421 The Megarry Scholarship Fund The Morton of Henryton Prlze13139901 The Sir Thomas Eastham13139901 The Stiebel Trust The Thoma5 More Fund The Walter Wl8glesworth Scholarship The merged charity Ss called: THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONALAWARDS FUND The Charity CommissSon Scheme is now the merged charlty's governing document under which tha Trusloes are empow8red lo allrlbule particular awards, at their discretion, lo any of the names of the merged charities. On 1 April 2011 the assets of the 1946 Fund. a small charity wlth Slmilar objectives lo those of the Educational Awards Fund, were transferred into the Educational Award8 Fund after agreement with the charity Commission under 5.26 of the Charities Act 2011. The Transfer value amounted to £270,519. THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONAL AWARDS FUND REPORT OF THE TRUSTEES {cont...) FOR THE YEAR ENDED 31 DECEMBER 2023 OBJECTS, OBJECTIVES AND PRINCIPAL ACTIVITIES Thé oblecl of Ihe charity is the advancement of the education ol the students and pupil barristers of Llncoln's Inn In the field of law. The prfnclpal 8Ctivity of the Trustees is to use the InGoffle generated and Fund capital to assist In the provision of the scholarships or other 8wards to promote or aid the legal education of members of LSncoln's Inn and in parkncular sludents or pupils who intend lo become practising members ofthe Bar of England and Wales. The purposes of the charitles have not changed. The merger was undertaken to improve adminlslration processes, make cost savings and consolidate investments to offer the potentlal for hlgh8r Investment returns. ACHIEVEMENTS AND PERFORMANCE Awards are made to candidates on merit lo assist Ihern with thelr fundlng throughout the common professional examination, bar vocational Course and puplllage years because it is Ihe Inn's view that Ih8s8 are the years when studénts need the most financial support. MerSt Is assèssed In terms of the candldat8'8 intellectual quallties. which is of the hlghest Importance at Ihe modern Bar. together wlth quallll88 of personality and pr858ntation also regarded as being of the greatest Importance in anyone aiming at life as a barrister. Mèrlt Is assessed by a consideration of all the material placed before the Inn by the candidate in hig or her written applicatlon and references tog8th8r, whère a candidate Is invited for inteNiew, wlth consideration of the candidate by a panal of Interviewers. Candidates whose writtgn applications do not, upon c8raful consideration, dlsclose the r8qUlSlte quality. will not be Invited for interview. Lincoln's Inn advertlses the qualities il is looking for on its website. Once stholars have been selected their financial award is calculated on th8 basls of th&ir individual means. The 5chola¢s means are calculated on the b8sls of Ihelr assets, savings. debt. other sources of financial support and projected exp8n5es for the duration of their course or period of training. The Scholarships Cornmittee sets the formulas to be applied - e.g. only tsking into account savings above a certain level and capping monlhly expenses- and reviews thls regulady. All Scholar's will be awarded a minimum of £1.000. Linco5n's Inn does not discriminate unlawfully against any person on the grounds of that person's sex, colour, race, nationality or ethnic or national origin, disability, sexual orientation, religion or belief. or ag&. or in any oth8r way that is unlawful. The Trustees of the Educational Awards Fund believe that these application criteria do not create Un￿8$Onable ￿$triCt10n$ on access by candidates to the scholarships available. Inv6stm8nls thls year have shown a gain of £291 k (2022.. loss of £514kl. Investrnents are shown on Ihg Balance Sheet al market value in acGordan¢e with charity accounting ru18S. THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONALAWARDS FUND REPORT OF THE TRUSTEES {¢ont...) FOR THE YEAR ENDED 31 DECEMBER 2023 During the year the charlty's reserves increased by £298 from £7,002k to £7,300k. FUNDRAISING Whilst we do not acttvely fundralsè, we are fortunate lo rec8lv8 dOna￿OnS and bequests from tlme to time. We are grateful for the generosity of the donors. GRANT MAKING POLICY Tha Educational Awards Fund makes grants towards the overall level of individual awards made by Llncoln's Inn. Income earned from inv9Stments in th8 form of dlvldends and Interest is transferred as roceived from the investsnent manager lo the Honourable Society of Lincoln's Inn. Al the end of eath financial year the Trustees assess the value of th8 total transfer of funds that has b88n made for the year and pay a balancing amount lo the Inn as an annual adjustment based on set crlteria. Having revlewod th8 Criteria for this ac¢ountSng period thgre Is no additional amount due to the Inn. In making 8 grant the Educational Awards Fund Trustees expect the responsible Committ88 to supeNlse th8 sp8ndlng of the monles granted. The Edueational Aw8rds Fund Trustees are not themselves In a pog11ion to do so. Expenditure by Lincoln's Inn is controlled and managed by its varlous officers 8nd monStored by the Flnanc8, Educatlon and Scholarshlp Committees. Lln¢oln's Inn pays the individual in question on approval from the relevant Committees and on productlon of properly approvod applicallons for scholarship payments. Once 8 payment has been made by the Inn, the Inn requests part or all of the promised contribution from tha fund. The value of contributions is never more than the totsl valu8 of scholarships., Lincoln's Inn makes up any shortfall. The Trustees agr88d Ihal the grant making pollcy and procedure achleves the oblectlves of the Fund. RESERVE8 POLICY The Trustees have reviewed the reserves of the charity, which comprise of £4.768k unrestricted funds, £51 k rostricled funds and £2,481 k endowment funds. The review encompassed the nature of the incomo streams and the policy adopted by the Trustees. This resulted in a change in approach where the Trustees fell it was no longer prudent to distribute only the annual investment income of the Charity. The Iruslees recognised that they have significant rèserves and agreed to approach spending down their serv95 in a way that aligns with a total return investment slralggy and still ansures the end beneficiaries are not in any way deprived frorll the benefit of the Charity's objectives. As the Charity holds a significant amount of unrestricted reserves, the Trustees declded lo start to spend down Ihis fund before applying 8 total retum policy to the permanent endowed funds. The investsnent strategy adopted is detailed below. THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONAL AWARDS FUND REPORT OF THE TRUSTEES (cont...} FOR THE YEAR ENDED 31 DECEMBER 2023 INVESTMENT POWERS AND POLICY During the year the trustees agreed to adopt an approach similar to total return investment management. Th8 Trustees agreed to operate a disinvostment level of 4% pa, including Income dislributian, based on a portfolio retum of 7V* p.a. and long-term CPI of 3010. Th8 Trustees agrèèd to apply the dlsinvèslment criterla on a rolling historic thrge-year b8515. In accordance with thelr powers under the Trust D86d. the Trusteès have delegated the m8nagement of thé portfolio and the invastment powers to the Lincoln's Inn Inv8stment Committee. The Trustees with asslstsnce from th8 Inn's Investment commlttee and its advisors have reviewed th& performanc8 of the fund managers and wlll continuè to do so at regulaf InteNals. The Investment Committee meets with the fund managers annually and holds thrée addillonal meetings to consider the invèslm8nl managels reports. Advi¢& is also regulady received from the Inn's investment consultants. INVESTMENT PERFORMANCE Having revi8wed the historlc three-year period. the trustees have agreed Ihat no further disinvestm8nl of capital is required in this year. Thè relum on the investments was 3.1Vo and after taking account of inflation (measured by CPI) was 0.20h. The inv8slmenl portfolio struclure was reviewed durin9 the year and changes made to the allocalSon of funds h81d by Legal & General. The fund5 ar8 Snvesled 730/0 wlth Legal & General and 27Y• ￿th Ruffers. The Legal & General 816m6nt of the portfolio is under passive management In pooled funds that Iiack the market; whil& doing no better than the market, the fund has done no worse. Leg81 & Gen8ral18vy charges that cansist ol a flai par scheme Chargé, plus an ad-valorem charge and a man8gement charge. The Ruffers element of the portfolio 15 under acllve m8n8gement In a pooled diversified growth fund. Ruffers charge a fea of 1.11 Oh of the portfolio value. LEGAL & GENERAL'S INVESTMENT MANDATE Legal & General manage the Fund's assets on a passive basis in their pooled index funds. The distribution of the Scheme's assets is to be maintained in predetemiined proportions. L&G's objective is to provide growth by tracking the performance of the markets reflecled In the pooled funds select8d by the Trustees. THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONALAWARDS FUND REPORT OF THE TRUSTEES (cont...) FOR THE YEAR ENDED 31 DECEMBER 2023 L&G's purpose is to create a better future through responsible Snvestlng. Allgned lo this purpos8, ESG is a central underpinning to all of L&G'$ activities and especlally within stralaglc Inltiatives. L&G h85 developed and publicly disclosed its pollcies for stewardship activities. Their policies are revlew&d annually and updated where necessary to ensure théy remain aligned wSth the various evolving regulations, best practlce and client feedback. Where possible, cashflows into or out of the fund will be used to maintaln the asset dislrlbulion within the specified ianges. In addition, switches be￿£an asset classes will be Implemented should any asset desses move outside their rang8S. RUFFERS INVESTMENT MANDATE The Trustees have decided lo invest in Ruffers Absolute Relum Fund, a diversified growth fund. The obJecllve of the fund its not to lose mongy in any rolling 12 months period and lo grow funds al a rate of 1% per quarter over what would be achièved by depositing them In Cash. FUNDS The funds of the Charlty comprise ot. Unrestricted funds, which are expendable at the discrellon of the Trustees Sn the furtherancè of the Fund's objectives. Permanent endowment funds comprfjs5ng èndowed funds donated to the ch8rlty for g&n8fdl educallon purposes. Incom8 Is treated as un￿StrICted income. Restricted funds in¢lud8 the European Awards Fund established In 2003 with a balance of £4.5k, this fund including the interest has now been fully awarded. The Malaysian Book Award for which a donation of £1 Ok was received in De￿rnber 2009. Also Include8 £59k r8C8ived in 2020 for Tancred scholarships. In the opinion of the Trustees the charity's assets are suiTicient lo meet its ￿MmItMents. TRUSTEES. TRAINING AND REMUNERATION New Tru51ees are offered approprlat8 induction and training procedures. Conslderalion is glven to the skills required and 811 the appoint8d Tru5t8es 8re experienced lawyers. The Charity has no employees and no Trustee received remuneralion for their servlces. TRUSTEES, RESPONSIBILITIES The Trustee9 are responsible for preparing the Annual Report and th8 FinancSal Ststemenls in accordance with applicable law and United Kingdom Generally Accepted Accounting Practices (UK-GAAPI. THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONALAWARDS FUND REPORT OF THE TRUSTEES (cont...) FOR THE YEAR ENDED 31 DECEMBER 2023 Law applicable lo charities in England and Wales requires the Trustees to prepare financial statements for each financial year which giv85 a true and fair view of the charity's financial activities during the year and of its financial posilion 8t the end of the year. In preparing accounts glvlng a true and fair view, the Trustees should follow best pracliGe and.. i) select suilable accounting policles and apply them consistently. 11) make judgements and estim8t88 th81 are r8asonable and prudent. iii) slate wh81her applicable accounting standards have been followed, sublect to any materfal departures dlsdosed and explainéd in the accounts, and Iv) pr8par8 the accounts on the going concern basis unless11 is inappropriate to assume that the charity will continue in op8ralion. The Trustee$ are responslble for keeping acwunting records which dlsclose wllh reasonable accuracy the financial position of the charity, and which enable them to ascertain the financial position of the charlty, and which allow them to ensure that the accounts comply wlth applicable law. They are also responsiblè for safeguarding the essels of the charity and hence for laklng reasonable steps for the prevenllon and d8t8ction of error. The Trustees are responsible for the maint8nanc8 and Integrity of the corporate 8nd financial information Included an the Charity Comml$sion's website and r8celve no remuneration. The Trustees have compil8d with the duty In s.17 of the Charllies Act 2011 to have due regard to th8 Charfty CommlssSon's published general and rel8vant sub-seclor guldance concerning the operation of thè Publlc 8en8fit r8quir8ment under Ihat Act. Approved by the Trustees on: fj912W and slgned on thelr behalf by: MrAlan Boyle KC Chairman of the Trustees INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONAL AWARDS FUND FOR THE YEAR ENDED 31 DECEMBER 2023 OPINION We have audited tha financial statements of The Honourable Society of Lincoln's Inn Educational Awards Fund for lh8 year 8nded 31 December 2023 which comprfse the Slalement of Flnancial Activities. Balance Sheet and notes to the financial statements, Including a summary of signlficant accounting policies. The financial reporting fram8work that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, applicable in the UK and Republic of Ireland (United Kingdom G8nerally Accept8d Accountlng Pradc81. IN OUR OPINION, THE FINANCIAL STATEMENTS give a true and fair view of the state of the charity's affalrs as al 31 December 2023and of the Charity's net movement in funds for the year then ended; have been properly prepar8d in accordance wllh Unlted Kingdom Generally Accepted Accounting Pra¢ti¢e,' and have beèn prépared In accordance with the requirements of the Charllles Acl 2011. BA81S FOR OPINION We hav8 been appointed 88 auditor under sectlon 144 of the Charitles Act 2011 and report Sn accordance with the Act and relevant regulallons made or having effect thereunder. We conducted our audlt in accordance with International Standards on Auditing (UK) (ISAS {UKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responslbililies for the audit of th8 financlal statements section of our report. We ar8 Indepéndent of the charity in accordance with the ethical réquirements that are relevant to our audit of the financlal slalements In the UK, including the FRC'S Ethical Standard, and we havè fulfllled our other ethical rèsponsibilities in accordance wllh thes8 requirements. We believe that the audit evSdencé we have obtained is sufficient and appropriate lo provide a basis for our oplnlon. CONCLUSIONS RELATING TO GOING CONCERN In audlting the financial statements, we have concluded that the trustees, use of the going ¢oncem basis of accounting in the preparatSon of the financial statements is appropriate. Based on the work we have performed, w& have not identified any material unc&rtainlies relating to events or conditions that, individu811y or collectively, may casl significant doubt on the Charfty's ability to continue as a going Concern for a period of at leasl twelve months from when the financial statements are aulhorised for issue. Our resr)onsibilitles and the responsSbilities of the trustees with respect lo going concern are degcribed in the relevant sections of this report. INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONAL AWARDS FUND FOR THE YEAR ENDED 31 DECEMBER 2023 OTHER INFORMATION The Trustees are responsible for the other Infomiation. The other infomiation comprises the Infomation included in the Trustees, Annual Report. Our opinion on the financial statements does not cover the other infomialion and, except to the extent otherwise &xplicilly staled In our report, we do not express any form of assurance concluslon thereon. In conn8ction with our audSt of the financial statements, our responsiblllty is to read the other Information and, in dolng so, consSder whether the other Information Is materially inconslstent wilh the financial 5tstements. or our knowledge obtained in the audit or oth8rwlse appears to be rnalerially misstated. If we identify such material incon3istencies or 8PP8rent material misstatements, we are required to detemine whelh8r th8re Ss a material misstalament in the financial ststaments or a material misstatement of the other information. If, based on the work we have perfomied, wè conclude that there is a material misstat8ment of this other infomiabon, we are requlred to report that fact. We have nothing to rèport In IhSs regard. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nolhlng to report in respect of the following matter5 in relats'on to which the Charltie5 (Accounts and Reports) Regulations 2008 require us lo report to you if, in our opinlon.. gdequate accounting records have not been kept by the charty., or sufficlent accountlng records have not been kepl,. or the charity financial statements are not In agreemenl wlth the accountlng records and retums" or we have not received all the Snformallon and explanations we requlre for our audlt. RESPONSIBILITES OF THE TRUSTEESFOR THE FINANCIAL STATEMENTS As explained mor8 fully In the trustees, responsibilitles statement set oul on pages 3 10 7, the truste8s are responsible for the preparation of the financial statements and for belng Satisfied that they glve a true and fair view, and for such inlemal control as the Iruslees determine is necessary to enable the preparallon of flnanclal slalements that are free from material misstatement, whether due to fraud or error. In preparing the financial $18temenls, the trustees are responsible for assessing the charity's ability to continue a5 a going concem. disclosing. as applicable. matters related to going concem and using the going concern basls of accounting unless the trustees either intend lo Ilquidate the charity or to cease operation5, or have no realistic altemative but to do sa. INDEPENDENT AUDITOR8. REPORT TO THE TRUSTEESOF THE HONOURABLE SOCIETY OF LINCOLN'S INN (cont...) EDUCATIONAL AWARDS FUND FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR'S RESPNSIBILITES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtsin reasonable assuranc8 aboul whether the financlal statèments as whole are free from material misstatement, whether due to fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance bul Is not a guarantee that an audit conducted in accordance with ISAS (UK) will always delect a material misststemenl when it éxists. Misstatements can arise from fraud or error and are nsldered matedal If, Indlvidually or in the a9greg8te, they could reasonably be expected lo influence the economlc declsions of users taken on the basis of thes& financial slatemenls. Irragularftles, Includlng fraud, are Instances of non-compliance with laws and regulations. We design procedures In linè with our responsibilities. outlined above, to delect material misslalemenls In respect of irregularlties. includlng fraud. Th8 exlenl lo which our proc6dures are capable of dete￿ing irregularlties, including fraud Ss détailed below: a$ed on our unders18ndlng of the charity and the environment In which It operal8s, we identified that the princip81 rlsks of non-compllanc8 with laws and regulafjons relat8d to rev8nu8 recognition, and w6 consldered the extent lo whlch non-compllanc8 might have material effect on the financial slalemenls. W6 also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act2011. e evalu8t8d management's incentives and opportunities for fraudu18nt manipul8lion of the financial statements lincluding the rlsk of override of controls) and detemiined that thé prlncipal risks were related to management override of ￿ntrOlS. Audit proc&dures performed by the engagement team included: DiscussSons with managem8nl including considerallon of known or suspected Instances of non-compliance wlth laws and regulation and fraud. Evaluating management's controls designed to prevent and detect irregularities. Identifylng and lesling journals, in particular joumal entriès posted wlth unusLral account combinations, postings by unusual users or with unusual dos¢riplions. 88cause of the Inherent limitations of an audit, there is a risk that we will not delect all irregularities, including those leading to a material misslalement in the financial statements or non-compliance with regulation. This rfsk increases the more that compliance with a law or regulation is removed from the events and transa¢b'ons reflected in the financial ststements, as we will be less likely to become aware of Instances of non-compliance. The rfsk Is also greater regarding irregularities occurring due to fraud r8ther than error. as fraud involves Inlenllonal concealment. forg8ry, collusion. ornission, or misrepresentation. INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF THE HONOURABLE SOCIEfY OF LINCOLN'S INN (¢ont...} EDUCATIONALAWARDS FUND FOR THE YEAR ENDED 31 DECEMBER 2023 A fvrther description of our responsiblllties for th8 audlt of the financlal statements is located on the Financial Reporting Council's website at.. ￿￿.frC.org.￿kIaudlt0rsreSponSlb1lItI&5. This description forms part of our auditor's report. USE OF OUR REPORT Thls report Is mad8 soSely lo the charity's trustees, as a body, in accordance vmth section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that W8 mlght stale to thè chartty's trustees those matt&rs'w8 are required to stste to them in an Audltorfg report and for no other purpose. To the fullest extènt permitted by law, we do not accept or assume r&sponsibility to anyone other than thè charlty's Irustees as a body for our audit work, for thls report. or for the oplnlons we have formad. 2811012024 Haysmacintrye LLP Statutory Auditors 10 Queen Street Place London EC4R 1AG Haysmacintyre LLP Is eliglble to act as an auditor in lamis of section 1212 of the Companies Act 2006 THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONAL AWARDS FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Note Unr•8trl¢tod Funds R•strlct•d Fund¥ Expondablg Endowmont Fund$ 2023 2022 Incomè from: Donations and Legacles Investingnl income - Fee rebates Investment Income Interest Totsl Incom• 5.3C#) 11,300 728 143,318 728 143,318 3,288 153.755 15 168 3Sg 150.923 Exp•ndlture on: Educational Awards Totsl Exp•ndltur•: 143318 143,318 143 318 143,318 160088 160088 N•t Galnlllossl on Invo¥tmonts 290.519 513 610 NET MOVEMENT IN FUNDS 298 123 S03,339 Fund bal•ncM carrf•d fon*ard at 1 January 4 767 662 2.481,400 7 300 423 7 507 640 Fund balanc•s carf•d forward 31 Doc•mb•r 4,767 662 2 481,400 7 300 423 7,002.301 All the activities of the fund a￿ contsnuing In both Ihls year and the previous year. The 2022 movement of funds Is split by loss on Investments £333k unrestricted, £175k restricted 8nd £Sk axpendable endowment. Th• notes on pages 15 to 18 fomi part of these finanGial statements THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONALAWARDS FUND BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2023 Notes 2022 2022 FIXED ASSETS Inv8sknents 7,268,504 8,976,034 CURRENT ASSET8 DebtOf8 Owed from Llncolns Inn TOTAL CURRENT A88ETS 1,224 25,043 26,267 31,919 31,919 NET CURRENT ASSETS NET ASSETS 31.919 7.300,423 26.267 7,002,301 FUNDS Restricted Unrestrfcted Pomianenl Endowment 51,362 4.767,662 2 481400 7,300,423 69,479 4,550,272 2 382 550 7 002,301 Approved by the Trustees on.. end slgned on their behalf by: /Jfrku, / Mr Alan Boyle KC Chaiman of the Trusl8es 0111012024 The notes on pages 15 to 18 form part of the$• financlal statements THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONAL AWARDS FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 1. ACCOUNTING POLICIES a) Accounting Convontlon Charites preparing their accounts in accordance wlth the financial Reporting standard applicabl8 In th8 UK and Republic of Ireland IFRS 1021 effectlva 1 January 20191- (Charities SORP IFRS 1021), the Financial Reporting Standard appllcable in the UK and Republic of Ireland (FRS 1021 and the Companle5 Act 2006. b) Golng Concern accountlng pollGy The Trustees are confident that the Fund will have sufficient resources to meet ils liabilities for at lèast 12 months from the date of signing Ihls report and as such the accounts have b8an prepared on a golng Concern basis. cl Incoma All incoming resourcés are recognlsed In the Statement of Fln8ndal A¢t5vitles when th& charlty has entitlement to the funds, il is probable that the income will be recelved and the amount can be measured rellably. Forlggacles, entitlement is taken as the earlier of the date on which elther: The charity is awar8 that probate has been granled. The Eslal8 has been ffnallsed and nolificalion has been made by the executor{sl to the Tnjst that a dislrlbution will be made. Whèn a distribution Is received from the estate. Receipt of a legacy In whole or part. is only considered probable when the amount can be measured reliably, and the Charity has been notified of the executor's Intention to make a distribution. Unrestricted funds are available lo spend on activities that further any of the purposes of th8 Charity. Designated funds are unrestricted funds of the Charity whSch the Trustees have decided al their discretion to set aside to use for specific purpose. Restricted fund5 are donations which the donor has specified are solely used for particular areas of the Trust's work or for a specific project. Donations required to be retained as capital in accordance wlth the donorfs wishes are accounted for when probable as "endowmenls" permanent or expendable according lo the nature of the restriction. THE HONOURABLE SOCIETY OF LINCOLN'S INN EDUCATIONALAWARDS FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 d) Expondlture Expendlture is accounted for on an accruals basis and has been classified under headings that aggregate all costs relatèd to the category. The irrecoverable element of VAT Is Included with the item of expenditure to which it relates. Wh8r8 costs rannot be dlreclly attributable to particular acliviti&s, they have been allocated to activltles on a basls consistent with the use of the resources. Gharilable expenditure is comprised of expenditure donaled lo LSncoln's Inn towards the awards of The Educational Awards Funds Scholarships. e) Funds Unrestricted funds, which a￿ expendable et the discretion of the Trusle8s in the furtherancé of the Fund's obj8¢tivos. Permanent endowment funds comprising endowed fund5 donated to the charity for genéral 6ducatlon purposes. R8slricled funds. conslstlng of donations 2nd18gaci8s receivèd which the donor has earmarked for a specific purpose. fj Investments Investments aré slated at mid-mark&t value at the balance sheet date. The Slalem8nt of Financial Activlties includes the net gains and lossas adsing on revaluation and disposals throughout the year. 2. GOVERNANCE The Inn maels the rJJst of ￿MUneratIOn for advice and services by the Audltors. 3. TRANSACTIONS WITH TRUSTEES No Trustee, or person related or connected to them has received any remuneration or reimbursement of expenses from the Fund durfng the current or previous yèar. 4. EDUCATIONAL AWARDS During the year grants lotalling: £143k 12022.. £154kl were made lo Lincoln's Inn as contributions towards awards and Scholarships granted by the Inn and made in accordance with the objects of this Fund. The Fund pays over dividend income on an as ￿CeIved basls to the Honourable Society of Lincoln's Inn which broadly colncldes with the payment by Lincoln's Inn to pupil barristers and sludents of scholarshlps and awards made. THE HONOURABLE SOCIE￿ OF LINCOLN'S INN EDUCATIONAL AWARDS FUND NOTES TO THE ACCOUNTS (cont...) FOR THE YEAR ENDED 31 DECEMBER 2023 Thè Honourable Society of Lincoln's Inn pays the majority of its grants in two main tranches In Sopl8mber and December to accommodate students paying fees during the academic year. 5. INVESTMENT8 2023 2022 Inv8strnenl holdings based on market value were as follows.. Market Value 1 January 6,976,034 7,846.061 Addltlons at cost 2.825,843 2.011,193 Proceeds of dlsposals {2,283.8911 {2,007,610) Gains/(Loss) on Investments 290,519 {513,610) Market Value 31 Deeemb8r 7.268 505 6 976 034 Hlstorlcal cost 31 December 4,000,854 3.998.902 Indirect transactlon costs are Incurred through the bid-offer Spread on Inv8stments wlthin pooled Investment vehicles. The amount of indirect costs is not separately provided lo the schem8. nv slment hol in ark8t value ecember 2023 2023 2022 2022 L&G UK Equitrack Fund Trust L&G Inlemational Index L&G Fixed Interest Trust L&G Emerglng Mart(8ts Ruffers absolute relum H acc TOTAL 1.872,815 2,383,240 26.85 34.16 3.293.447 1,104.053 926,067 1 941938 7 268,505 45.31 15.19 12.78 26.72 100 592,993 2 126 985 6,976 034 30.49 100 6. DEBTORS 2023 2022 Accrued Income Owed by Lincoln's Inn 1,224 25,043 26.267 31,919 31.919 THE HONOURABLE SOCIEry OF LINCOLN'S INN EDUCATIONAL AWARDS FUND NOTES TO THE ACCOUNTS {cont...} FOR THE YEAR ENDED 31 DECEMBER 2023 7. SPLIT OF NET ASSETS BETWEEN FUNDS Unre5trlGted Funds Pe￿anent Endowed Funds Re$tricted Funds Total 2023 Investments N8t current assets 4,735,743 31,919 4 767,662 2,481,400 51,362 7,268,504 31,919 7.300.423 2 481.400 Unrostrlct•d Funds Pormanent Endowed Funds Rostrlctèd Funds Total 2022 Investments Net current assets 4.524,005 2,382,550 69,479 6,976,034 4 550.272 2,382 550 6g.479 7 002 301 8. RELATED PARTY TRANSACTIONS The Honourable Soclely of Llncoln's Inn Is onè of the four Inns of Court. It is an ancient unSncorporaled body of lawyers which for six cenlurles and more have had the power to C811 to the Bar those of Ihelr rnembers who havè duly quallfied for thg rank or degree of Barrister-at-law. The Fund was establlshed by members or former members ofThe Honourable Sociaty of Llncoln's Inn and as laid out In ils objectives when vacanci88 arise in the body of Trustees the Council of Benchers of The Honourable Soclety of Lincoln's Inn hold thè power lo appO￿t rèplacements. The TTUSte8s are otherwise autonomous. During 2020 we received funds from Tancred into the Inn's bank account where we have transfe￿ed £561 k th8 remainlng balance of £114k was transferred to th6 Educatlonal awards fund investment portfolio during 2021. There are no further related partlas. During 2022 we awarded one Tancrod scholarship.