Docugn Envelope ID.. 69FDEF03_28C64C9F_93224CDACBDCZ427 The Horlock Educational Trust ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JANUARY 2024
Docugn Envelope ID.. 69FDEF03_28C64C9F_93224CDACBDCZ427 Contents Page REFERENCE AND ADMINISTRATIVE INFORMATION REPORT OF THE TRUSTEES Structure, governance and management Risk Management Objectives and activities for the public benefit Grant making policy Monitoring achievement Financial review Investment policy and perfonnance Reserves policy Plans for the future Trustees. Responsibilities Statement INDEPENDENT EXAMINERS. REPORT TO THE TRUSTEES STATEMENT OF FINANCIAL ACTIVITIES BALANCE SHEET 10 Notes to the accounts 11-13
Docugn Envelope ID.. 69FDEF03_28C64C9F_93224CDACBDCZ427 REFERENCE AND ADMINISTRATIVE INFORMATION The Horlock Educational Trust (Charttable Trust, established by Deed. 26th July 2005) Registered Charity Number 1117166 Trustees The Viscount Gough (Deceased 14 April 2023> William Fraser OBE William Dyson-Laurie Richard Davies Prof Owen Darbishire (Chair) Clive Parsons Dr Benjamin Powell Sarah Miles Thomas Hardy (from 26 February 2024) Principal Office Kendall & Davies Station Road Bourton-on-the Water Cheltenham GL54 2AA Independent Examlners Hazlewoods LLP Staverton Court Staverton, Cheltenham GL51 OUX Investment Portfolio Manager J.M. Finn 25 Copthall Avenue London, EC2R 7AH
Docugn Envelope ID.. 69FDEF03_28C64C9F_93224CDACBDCZ427 REPORT OF THE TRUSTEES FOR THE YEAR TO 31ST JANUARY 2024 Structure, governance and management Histo The Horlock Educational Trust (HET) was set up in 2005 by Wimbum and Robin Horlock. Robin had established a highly successful pre-preparatory school in North London in the earty 1960s. Wimbum had a close connection with the City of London. where he was elected Sheriff in 1972. In later life they retired to their home in Gloucestershire. Having no children, they decided to establish an educational charity. The Trust was initially endowed with capital sufficient to provide an income for grants totalling about £4.000 annually and this enabled the trustees to explore how best to carry out the Horlock's wishes wilhin the defined objects of the charity. From this there developed a particular interest in preparing disadvantaged young people for (and to find) work. Grants were often linked to personal development and trade skills rather than academic studies. Wimbum Horlock died in 2009 and Robin in 2020. Their home was left to The Horfock Educational Trust. The proceeds of its sale were received in March 2021 and were immediately invested. Meetin The trustees normally meet lce a year in March and September. These meetings are usually in person, though may also be online if required. Between meetings communication is continued by email where necessary and for the circulation of reports. Administrator The trustees rely on an Administrator, Neil Hewitt, of Kendall and Davies, to advise them on their responsibilities, distribute the grants, manage the banking and circulate the papers. He is the linchpin of the organisation and the trustees are very grateful for his hard work, pats-ence and reliability. Induction and trainin of trustees New trustees are introduced by personal recommendation, subject to interview, which Lakes into account their professional experien and proven interest in the objectives of HET. Trustee training from a relevant professional is provided as an extension to trustees, meetings Risk Management The trustees considered the major risks to which the charity is exposed. HET has investments which are the source of funds for the grants it gives. As such. HET depends on the investment market for maintaining its grant budget, though it has over 20 years of grant making capacity at the current level without any market growih. The long temi expectation is that grants will be funded from a combination of dividend yield and capital grovrth. While dividend yield is reasonably predictable, capital growth is far less certain. To mitigate these risks, HET established an investment sub-committee. comprising William Fraser (Chair), William Dyson-Laurie, Dr Benjamin Powell and Viscount Gough, and appointed a team within J M Finn which specialises in advising clients in the Charity Sector. They receive regular performance
Docusign Envglcrf)g ID: 69FOEF0&28CfAC9F.93224CDAC8DC2A27 figures from Flnns. vh)ose investrnent managers report In person to all the trustees annually. (Very sadly, Viscount Gough died during the year.) The grant budget is reviewed at least twice a year, at the March and September meetlngs. Bearlng in mind the intention normalty to have inttial three year arrangements with beneficiaries, to continue on a rolling basis subject to regular reviews by the trustees. adjustments are made rf the trustees judge that HET'S Capital is beMIng excessively eroded. Objectives and activities for the public benefit ectives of the Cha ' as sel out in the Twst Deed Awarding scholarships exhibitions bursaries or maintenance allowances tenable at any school university or other educational establishment approved by the trustees to persons under 25 years ol age who the Irustees deem lo be in need ol financial assistance Providing financial assislance outfits ck)thing tools instruments or books lo such persons on leaving school university or other educats'onal establishment to prepare them for or assist their entry into trade profession or serrfice In Otherlse furthering the educatK)n of such persons Grant making policy The tru51ees have decided Ihal while HET wli I generally distribute its grant budget in support of educational and vttatsonal needs via chanties and other organisations with similar interests. il will consider applications from individuals, including descendants of Frederick and Gwenooline Tanner, (Robin Horlock's parents) as and when they occur. on their own merits and alignmenl to Ihe charitable aims of the TrusL Followng the substsntial in¢8$e in HET'S assets in March 2021. the truslees raised the annual grants budget to £400.C>QO, although Ihis is subject lo wular review. Grants to charities and other organisations will generally be for an inltial perlod of three years to continue on a rolling basis so that rf one of the grants is to be reduced or cease Ihe beneficiary receives at I&1 One dear year's nolice. These are 'core granls,. In addition. trustees may. as appropriate. distribute 'ad Ix)c' grants- for a single F>eriod - when suitable beneficiaries come to our attention and funds perTnit Develo ments in the ar to 31st Janua 2024 HET has developed relationships with eighteen partner organisations who have alne(l goals and thfough which it seeks io achieve tts objectives. Ottasional ad hoc grants can also be made. During the year to 3151 January 2024, the following have received grants of £10.000 or mo. QEST RNLI Future Gardeners XLP Treloar Trust Prisoners. Education Trusl Saddlers. Company Charilable Fund Sylva Hugh WestWOLMJ Educational Trust Fund apprenticeships ALC apprentice scheme - single apprentice Participants up to 25 years old Ready for Work project Outdoor Learning Cenl Distance leaming for undef 25 year okls Walsall Leather Sknlls Centre Wood School Unrestricted £35.0(h) £15.223 £10,000 £SO.O(K) £50.000 £10.000 £20.000 £10.0(YJ £10.000
Docugn Envelope ID.. 69FDEF03_28C64C9F_93224CDACBDCZ427 Ruskin Mill College Wool Bam Leaming Area £10,000 Trinity Winchester SKILL programme £50,000 Ebony Horse Club RIDE programme £10,000 King's College London Extended Medical Degree Programme £38,000 The Roberts Centre BOOST programme £25,000 City of London Academy Tutoring-tO-Thrive programme £15,000 Greater Change Employment & educations support for homeless £15.000 Pembroke College, University of Oxford Bursaries for in-need graduates £15,000 Mary Chan Watson Completion of education at ISPP. Cambodia £10,000 Royal Agricultural College Bursaries for in-need undergraduates £25 000 £423,223 Having relatively few beneficiaries, a trustee has been nominated to be the point of contact with each. The trustees thus lend lo be invited by 'their' beneficiary to attend special events or briefings. Their reports are then circulated. Monitoring achievement Each beneficiary has a Trustee who serves as the primary point of contact and who monitors the effectiveness of the grants given through visits and the receipt of reports. Reports are circulated to all trustees, who review progress at their meetings in March and September to check that the grants accord with the Horlocks, wishes and to ensure that the funds provided by HET are properly used for the benefit of deserving young people. Financial review HET'S principal income, other than at the time of the original endowment in 2005 and the bequest in 2021. has been from its investments. It d$ not raise funds from the general public. The trustees. aspiration is that, after sufficient funds to pay grants and operating expenses are paid out, the fund should remain in the region of £10 million. However. the decline in the financial markets did result in the value of the investments falling to £8.2m at 31 January 2024.While invested capiial yielded 2.13 %, the value of the capital itself reduced by 40/0. The trustees agreed that, regrettably. some reductions in grants were necessary in 2025 to reflect the reduced income. and the affected beneficiaries duly received over 12 months notice. Investment policy and performance Investment mana ement HET'S assets are invested through J M Finn on a discretionary management basis, to achieve a combined return from income and capital growth. Trustees decided that the risk profile is medium, with no minimum percentage in low risk investments. Environmental Social and Governan considerations The trustees discussed ESG considerations wtth our Inveslment Portfolio Managers. J. M. Finn confirmed that they apply generally accepted standards when reviewing investments. The trustees did not ask for any special restrictions.
Docusign Envglcrf)g ID: 69FOEF0&28CfAC9F.93224CDAC8DC2A27 Perfomiance The value of the Charity's investments dedined over the past year to £8.2m at year end. This resulted primarily from the declinlng equty markel. wthile expenditure was sustsined and was just over £410k. Performance was slighty below the bespoke benchmark selected. as well as below the Inflation (CPI) + 4% benchmark. Reserves policy The charity'5 invested assets are tts sole reserves. The trustees note that these are SLrfficient to pay grants at the existing budgeted levels for which HET is committed, for over 20 years without any financial rnaat growth. Plans for the future Having Identified eighteen organisations whictt already provide the sort of direct support, trdining and care for young people to which HET grants would make a SignifnI difference. we are now building those relationships. Our grant budget is now largely. rf rt fully, committed. Four of the existing eh1 trustees were appolnted frfxn the slart. in 2005. All the Iruslees recognise the Importance of properly managed succession and are actively looking for nèw trustèès with appropriatèly diverse expertise. Sarah Miles was appointed as a new trustee dunng the year. Trustees, Responsibilities Statement The Trustèes are responsible for preparing lh8 Trustees. Rep(xt afKI the financial stalements in accordance with applicable law and United Kingdom accounts'ng stsndards (United Kingdom Generally Accepted Accounting Practice), inclu¢Jing FRS102. The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a Irue and fair view of the state of affairs of the charty and of movement in funds for that penod. In preparing Ihese financial statements. the trustees are required to: select suitable accounting policies and then appty them consistently: observe the methods and principles in the Charities, SORP: make Judgements and estimates that are reasonable and pwdent-. state whether applicable accounting standards have been followed. subject to any material departures disdosed and explained in the financial slalements,. prepare the financial statements on the going conc8m basis unless it is inappropriat8 to presume that the charity will continue in busine5S. Th8 trus18es are reSpJnSib for keeping proper accounting records that disdos8 wilh reasonable atturacy at any ts'me the financial position of the Chantse5 and enable them to ensure that the financial statemenls comply with the Charities Act 2011. the Charity (Accounts and Rewrtsl Regulations and the provisions of the trust deed and Chanty Commission Scheme. They are also responsible for safeguarding Ihe asseis of the Charity and herKe for taking reasonable steps for the prevention and detection of fraud and other iiregularities. Signed by the Chair of Trustees on behaN of all the Trustees: Owen Darblshire Date: 26/10/2024
Docusign Envglcrf)g ID: 69FOEF0&28CfAC9F.93224CDAC8DC2A27 The Horlock Edu&itional Trust INDEPENDENT EXAMINERS. REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2024 I report on the a¢Unts of The Hoflock Educational Trust for the period ended 31 J8nu8ry 2024, which are set out below. Respective responslbilities of trustees and examiner The trustees a spOnSible for the preparatw of the accounts. The trusiees consider Ihat an audil is not required for this year {under section 144 of the Charities Act 2011 (the Act)) and thal an independent examination is needed.11 is my responsibility to: exarnine Ihe accounts (under section 145 of the Act): to follow the applicable d1ctionS given by the Charity CMISsion (under section 1495)(b) of the Act); and to slate whether particular matters have come to my attention. Basis of independent examlnefs, report My examination was carried oul in accor(Jance with the General Directions glven by the Charity Commission. An examinalion includes a review of Ihe accounting records kepi by the charity and a comparison of the accounts presenled with those records. It also includes consideration of any unusual items or disdosures in the accounts and seeking explanations from the trustees conceming any such matters. The procedures undertaken do not provide all the evidence Ihat would be required in an audil, and consequenlty no opinion is gNen as to whether the accounis present a 'true and fair. vlew and the report is Ilmlted to those matter5 set out in the statement below. Independent •xaminers' statemenl In connectlon with my examination. no material matter has come to ry attentlon ¥thlch gNes me cause to believe that, in any material respecL' the accounting records were rK)t kept in accordance wrth Section 130 of the Acl: or Ihe accounts did not accord with the accounting records: or Ihe accounts did not comply with Ihe accounting requirements concerning the forni and Itent of accounts set out in the Charities (Accounts and Reports) Regulation5 2008, other Ihan any requirement that the accounts give a 'true and fair, view, which is not a matter considered as part of an independent examinatKM. I have no concerns and have come across no other matters in connection wTrth the examination to which attention should be drawn in this report in order to enable a proper underslanding of the accounts to be reached. 26/10/2024 Date: .......-......... Martln Howard FCA Hazlewoods LLP Chartered Accountants
Docugn Envelope ID.. 69FDEF03_28C64C9F_93224CDACBDCZ427 STATEMENT OF FINANCIAL ACTIVITIES Notes Year to 31101124 Year to 31101123 (£) (£) Incoming Resources Investments Total Resources Expended Raising funds Charitable activities Other Total Net incomel(expenditure) before investment gainsl(losses) Net gainsl(losses) on investments Net incomel(expenditure) Net movement in funds 210,154 210,154 246,001 246,001 39,233 438.282 1,020 478,535 (268,381) 43,437 422.960 840 467,367 (221.366) (173,331) (441,712) (441,712) {1,139,725) {1,361,091) {1,361.091) Reconciliation of funds Total funds brought forward Total funds carried forward 8,693.171 8.251,459 10.054,262 8,693,171
Docusign Envglcrf)g ID: 69FOEF0&28CfAC9F.93224CDAC8DC2A27 BALANCE SHEET Notes Unrestrlcted Unrestrlcted funds funds 311011241£) 31101123 (£) Flxed assels Investments Tolal fixed assets 8.154.794 8,154,794 8.407,113 8.407,113 Current assets Accrued income Cash at band and in hand Total current assets 6,122 96.853 102.975 20,209 274,731 294,940 Creditors: amounts falling due within one year (6,310) (8,881> Net current assets 96.665 286,OS9 Total assets less Current liabilities 8,251.459 8.693,171 Total net assets ,251.459 8.693,171 Funds of the Charity Total funds 8,251,459 8,693.171 Signed by the Chair of Trustees on behalf of all the Trustees: Owen Darbishire 26/10/2024 Date: 10
Docugn Envelope ID.. 69FDEF03_28C64C9F_93224CDACBDCZ427 Notes to the accounts 1. Accounting policies Basis of accounting These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note{s) to these accounts. The accounts 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 on 16 July 2014 The accounts have been prepared on the going concern basis. The Trustees do not believe that there are material uncertainties related to events or conditions that cast significant doubt on the charity's ability to continue as a going concem. Recognition of legacy income Legacies are included in the SOFA when receipt is probable, that is, when there has been grant of probate, Ihe executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met. Recognition of income from interest and dividends This is included in the accounts when receipt is probable and the amount receivable can be measured reliably. Investment gains and losses This includes any realised or unrealised gains or losses on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year. Liabilities Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable rtainty. Govemance and support costs Governance and support costs are presented as a single cost incurred while conducting charitable activities. It is not possible to disaggregate these costs and to classify them. Multl-year grants Some grants are awarded to cover several years and are paid in instalments. The payment of instalments after the first is contingent on the receipt by the Trustees of a report from the grant recipient outlining how the funds granted to date have been used while achieving the aims forwhich they applied. Such grants are only recognised in the SOFA when this performance condition is salisfied. Investments Fixed asset investments in quoted shares, traded bonds and similar investments are valued at initially at cost and subsequently at fair value (their market value) at the year end.
Docugn Envelope ID.. 69FDEF03_28C64C9F_93224CDACBDCZ427 2. Incoming resources Year to 31101124 (£) Year to 31101123 (£) Investments Interest income Dividend income 31,084 179.070 210,154 14,702 231,299 246,001 Total 3. Resources expended Year to 31101124 (£) Year to 31101123 (£) Expenditure on raising funds Investment management costs Total expendlture on ralslng funds 39,233 43,437 43,437 Expendlture on charltable activltles Grants made Governance and support costs Total expenditure on charitable activities 428,723 9,559 438,282 411,869 11,221 423,090 Other expenditure Statutory assurance fees Total other expenditure 1,020 1,020 1,000 1.000 4. Grant making Analysis of grants paid (included in expenditure on charitable activities) by nature of recipient. Grants are made in the furtheran of HET'S general charitable aims and are not categorised according to activity type. Govemance and support costs relating to individual grants are not identified or allocaled. Year to 311011241£) Year to 31101123 (£) 418,723 410,369 10,000 1,500 428,723 411.869 Grants to institutions Grants to individuals Total HET has made grants to particular instilutions in the year lo 3110112024 that are malerial in the context of its grant making by virtue of the amounts granted relative to total expenditure on grants. Names of institution Purpose Total amount of grants paid (£) 50,000 XLP. a company limited by Supporting the "Ready for Work guarantee, registered in England Programme" which helps young and Wales. number 4959458, and a people from challenging backgrounds registered charity, number 1101095 gain access to intensive courses, workshops, 1-2-1 coaching session, work experien. volunteering opportunities. job application and interview support. Supporting the 'Learning 4 Life" programme. a collection of initiatives designed to help young people cope with life and find employment. Trinity Winchester. a registered charity, number 1074604 50,000 Treloar Trust, a registered charity. number 1092857 Supporting the Outdoor Leaming Centre, Outdoor Leaming Technician and Learning Technology for severely disabled children to equip them for independent lives. 50,000 12
Docugn Envelope ID.. 69FDEF03_28C64C9F_93224CDACBDCZ427 Total materlal grants to Institutlons Sn the reportlng perlod Other unanalysed grants Total grants paid 150,000 268,723 418,723 5. Fixed asset investments All fixed asset investments are listed investments Year to 31101124 (£) Year to 31101123(£) Fair value at beginning of period Additions Disposals Net gainl(loss) Fair value at end of year 8,407,113 1,953,340 {2,032,327) (173,331) ,154,794 9,980,908 648,136 (1,082.207) (1,139,725) 8,407.113 6. Cash at bank and in hand 31101124 {£) 31101123 {£) Short term deposits Current account Cash on hand at investment manager Total cash at bank and on hand 7.443 471 88,940 96,853 70,063 906 203,762 274,731 7. Creditors: amounts falling due within one year 31101124 {£) 31101123 (£) 2.340 Trade creditors Accruals Total creditors falling due wlthin one year 6.310 6,310 6,541 8,881 8. Transactions with Trustees and related parties No Trustees have been paid any remuneration or benefits in the reporting period, or prior reporting period. Trustee expenses totalling £369 have been reimbursed to Mr Clive Parsons and to Mr Richard Davies, expenses of £130 were reimbursed in the prior reporting period. Mr Richard Davies. a Trustee of HET, is a partner of Kendall & Davies Limited who provide govemance and support services. An expense of £8,946 to Kendal & Davies Limited was recognised for services rendered in the year to 31101124 (£11,091, in the year to 31101123). 13