Charity Registration No. 1123305 Company Registration No. 06364897 (England and Wales) THE NEU TRUST FUND LIMITED REPORT AND FINANCIAL STATEMENTS 30 SEPTEMBER 2020 ## THE NEU TRUST FUND LIMITED ## CONTENTS ||Page| |---|---| |Reference and administration information|1| |Trustees’ report (incorporating a Directors’ Report)|2-4| |Statement of Trustees’ responsibilities|5| |Independent auditor’s report|6-7| |Group statement of financial activities|8| |Charity statement of financial activities|9| |Group statement of financial position|10| |Charity statement of financial position|11| |Group statement of cash flows|12| |Notes to the financial statements|13-18| THE NEU TRUST FUND LIMITED ## Reference and administration information |Trustees|C. Cranmer|| |---|---|---| ||J. Huckstep|| ||A. Robinson|| ||M. Lawes|| ||S. Ainger|| ||P. Gouveia|| ||J. Elderkin|| ||P. Bhogal (resigned 31 August 2021)|| ||E. Glazier|| ||H. McKenzie (appointed 4 September 2021)|| |Secretary|Wilsons (Company Secretaries) Limited|| |Charity number|1123305|| |Company number|06364897|| |Principal address|Hamilton House|| ||Mabledon Place|| ||London|| ||WC1H 9BD|| |Auditors|BDO LLP|| ||55 Baker Street|| ||London|| ||W1U 7EU|| ||United Kingdom|| |Bankers|National Westminster Bank|Unity Trust Bank| ||Tavistock Square Branch|Four Brindleyplace| ||British Medical House|Birmingham| ||Tavistock Square|B1 2HB| ||London|| ||WC1H 9JA|| ||Scottish Widows Bank plc|Cambridge & Counties Bank| ||PO Box 12757|Charnwood Court| ||67 Morrison Street|New Walk| ||Edinburgh|Leicester| ||EH3 8YJ|LE1 6TE| |Solicitors|Wilsons|| ||Alexandra House|| ||St Johns Street|| ||Salisbury|| ||SP1 2SB|| |Investment manager|Quilter Cheviot|| ||Senator House|| ||85 Queen Victoria Street|| ||London|| ||EC4V 4AB|| -1- ## THE NEU TRUST FUND LIMITED TRUSTEES’ REPORT (incorporating a Directors’ Report) FOR THE YEAR ENDED 30 SEPTEMBER 2020 The Trustees present their report and accounts for the year ended 30 September 2020. The accounts have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the Company’s Memorandum and Articles of Association, the Charities Act 2011, the Companies Act 2006 and the Statement of Recommended Practice (SORP), applicable for charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **Structure and Governance** The trustees, who are also the directors for the purpose of company law, and who served during the year were: C. Cranmer A. Robinson S. Ainger M. Lawes J. Elderkin P. Gouveia P. Bhogal J. Huckstep E. Glazier None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of winding up. The trust is registered as an incorporated charity registered with the Charity Commission (number 1123305), having previously been registered as an unincorporated charity. The NEU Trust Fund Limited is also a company limited by guarantee (company number 6364897) and is governed by its Memorandum and Articles dated 30 July 2007, which were updated on 29 March 2019, on which date the name changed from the ATL Trust Fund Ltd. The incorporated trust is the sole corporate trustee and is a linked charity of the unincorporated trust, The NEU Trust Fund (1123305-1) that holds the William Mitchell Endowment. The endowment is therefore included within the Group Accounts of The NEU Trust Fund Limited as noted below. Where reference is made to the Charity, these figures do not include the capital of the William Mitchell Endowment as these are held in the unincorporated body. The income from this endowment was left to the Benevolent and Orphans Scholarship fund of the Association of Teachers and Lecturers of 7 Northumberland Street, London upon trust to apply the income thereof towards the general purpose of the said fund. All other assets for the trust were transferred to the incorporated trust on 5 December 2008 under agreement of the Charity Commission for England and Wales, and agreement from the Charity Commission was obtained to produce consolidated financial statements. During the prior year, and following the amalgamation of the Association of Teachers and Lecturers (ATL) and the National Union of Teachers (NUT) to form the National Education Union (NEU), the trust changed its name from The ATL Trust Fund Limited to The NEU Trust Fund Limited. Following this amalgamation, the trust will receive donations from members of the amalgamated union, as well as other bequests and legacies from time to time. The expansion of the charity enables more people to benefit from the charitable objects of the Trust Fund. ## **Recruitment and appointment of trustees** The Board now comprises two Trustees who are Trustees of the NEU, and two appointed by the Executive Committee of the NEU, with the remaining Trustees Board appointees, known as Ordinary Trustees. Ordinary Trustees are recruited from a wide range of relevant backgrounds of skills, expertise and qualifications. This ensures the Board has the skillset to meet the needs of the beneficiaries. ## **Risk management** The trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks. The trustees consider the variability of investment returns on the permanent endowment to constitute the charity’s major risk and recent volatility in the world financial markets. The trustees are guided by the expertise of the investment managers to maintain the target level of return. - 2 - ## THE NEU TRUST FUND LIMITED TRUSTEES’ REPORT (incorporating a Directors’ Report) FOR THE YEAR ENDED 30 SEPTEMBER 2020 (continued) ## **Risk management (continued)** Following a monitoring process the trustees have concluded that the risk appetite adopted remains acceptable. In particular, the directors have reviewed the risks in response to the Covid-19 pandemic and its impact on the operations and finances of the charity. This includes the potential impact on income and its ability to continue its charitable activities, i.e. grant-making. The conservative reserves policy and careful stewardship of finances means there are sufficient reserves to meet expenditure requirements during the period. ## **Objectives and activities for public benefit** The objects of the charity are:- the relief and prevention of poverty of persons who are: - a) members of the Association or persons who have been such members; - b) persons who were members of the Association of Teachers and Lecturers or the National Union of Teachers; and - c) widows, widowers, surviving civil partners, children and dependants of such persons referred to in Articles 2.1.1(a) and 2.1.1(b) who are completely or mainly dependant for financial support on them in the opinion of the Trustees. ## **Public Benefit** The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its future activities. ## **Grant making policy** The frequency and value of grants given is established by the trustees in an awards policy, but may also be varied on a case by case basis. The process is by application and approval by the Grants Committee, which reports to the Board. Complicated applications may be referred to a meeting of the Board. ## **Achievements and Performance** The Trust Fund has achieved its aims in supporting members and their dependants by: i) increasing the total value and number of awards made from £92,739 to 74 beneficiaries in 2018/19 to £168,464 to 139 beneficiaries in 2019/20; ii) publicising the work of the Trust fund to NEU districts in order to raise the profile of the fund amongst members as the planned leaflet distribution and announcement to Annual Conference was not able to take place as a result of the cancellation of Conference. iii) using and updating the annual calendar to ensure that all essential tasks were completed on time. iv) reviewing the Awards policy ## **Plans for the future** In order for the Trust Fund to be able to continue its work in the future we will be: i) developing strategies to secure income and increased member contributions to enable its charitable purpose to continue to be met; ii) reviewing policies according to the procedure; iii) continuing to scrutinise the work of the fund managers (Quilter Cheviot); iv) seeking to retain the services of Trust Fund Board members with appropriate expertise and skills; and v) continuing the development of an ethical investment policy in collaboration with the fund managers. - 3 - ## THE NEU TRUST FUND LIMITED TRUSTEES’ REPORT (incorporating a Directors’ Report) continued FOR THE YEAR ENDED 30 SEPTEMBER 2020 (continued) ## **Financial Review** The Trusts’ work is reliant on income from the members of NEU and its investment income. The income for the year ending 30 September 2020 was £164k (2019: £235k). The higher 2019 figure reflects the fact that in that year, following the amalgamation of the ATL Trust Fund Limited and the NUT Benevolent Fund, the monies remaining in the Benevolent Fund were transferred to the NEU Trust Fund Limited. Grants issued in the year were £168k (2019: £93k). Total group reserves at the year-end were £2,774k (2019: £2,949k), of which £1,934k (2019: £2,055k) were unrestricted. The capital value of the restricted reserves was £840k (2019: £894k). ## **Investment Policy** The trustees rely on the investment managers, Quilter Cheviot Ltd, to maximise the returns on the unrestricted funds within the constraints set out by the trustees. ## **Reserves policy** Consolidated reserves held at the year-end amounted to £2,774k (2019: £2,949k). It is the policy of The NEU Trust Fund to maintain unrestricted funds at levels of 4 years of operation or £800k. Should funds fall below this level then plans to replace funds should be taken in hand. Should the reserves be less than £400k then plans to wind up the trust should be put in place and the restricted funds transferred to another charity with similar aims. At 30 September 2020, the unrestricted funds of the trust were £1,934, k (2019: £2,055k) and therefore the current policy is being met. ## **Auditors** In so far as the trustees are aware: - there is no relevant audit information of which the charitable company’s auditor is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. A resolution will be proposed to the members to reappoint BDO as the auditors in accordance with section 485 of the Companies Act 2006. Subject to a satisfactory review of their role. Sundry Costs We monitor the costs of the administration of the charity. ## **Approval** In approving the Trustees’ Report, the Trustees are also approving the Directors’ Report in their capacity as company directors. ## **Small company provisions** The report has been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. Approved and signed on behalf of the Trustees ## Julie Huckstep J Huckstep Chairperson Date: 24 September 2021 - 4 - ## THE NEU TRUST FUND LIMITED ## STATEMENT OF TRUSTEES’ RESPONSIBILITIES The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - make judgements and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 5 - ## THE NEU TRUST FUND LIMITED ## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF THE NEU TRUST FUND LIMITED We have audited the financial statements of The NEU Trust Fund Limited for the year ended 30 September 2020 which comprise the Group Statement of Financial Activities, the Charity Statement of Financial Activities, the Group Statement of Financial Position, the Charity Statement of Financial Activities, the Group Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group and charitable company’s affairs as at 30 September 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. ## **Conclusions relating to going concern** We have nothing to report in respect of the following matters in which the ISAs (UK) require us to report to you where: - the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate, or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees’ Report (incorporating the Directors’ Report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Trustees’ Report (incorporating the Directors’ Report) has been prepared in accordance with applicable legal requirements. - 6 - ## THE NEU TRUST FUND LIMITED ## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF THE NEU TRUST FUND LIMITED (continued) ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ report. We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion: - adequate and sufficient accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the trustees’ report. ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees’ Responsibilities set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. ## **Use of our report** This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company’s members and the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body, and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councils website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Heather Wheelhouse _, Senior Statutory Auditor_ For and on behalf of BDO LLP, Statutory Auditor 55 Baker Street, London, W1U 7EU ## 28 September 2021 Date _______________________________ BDO LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 - 7 - ## THE NEU TRUST FUND LIMITED GROUP STATEMENT OF FINANCIAL ACTIVITIES [Incorporating the consolidated Income and Expenditure Account] FOR THE YEAR ENDED 30 SEPTEMBER 2020 |||Unrestricted|Restricted|Total 2020|Total 2019| |---|---|---|---|---|---| |||Funds|Endowment||| ||||Funds||| ||Notes|£|£|£|£| |Income from:|||||| |Donations|3|105,066|-|105,066|179,263| |Investment income|4|59,302|-|59,302|55,361| |||_________|_________|_________|_________| |Total income||164,368|-|164,368|234,624| |||_________|_________|_________|_________| |Expenditure on:|||||| |Charitable activities|5|202,780|-|202,780|133,858| |Raising funds||10,840|4,046|14,886|4,906| |||_________|_________|_________|_________| |Total expenditure||213,620|4,046|217,666|138,764| |||_________|_________|_________|_________| |Net (losses)/gains on investment assets|8a|(71,717)|(50,239)|(121,956)|69,781| |||_________|_________|_________|_________| |Net income, being net movement in|||||| |funds||(120,969)|(54,285)|(175,254)|165,641| |Fund balances at 1 October 2019||2,055,048|893,859|2,948,907|2,783,266| |||_________|_________|__________|__________| |Fund balances at 30 September 2020||1,934,079|839,574|2,773,654|2,948,907| |||_________|_________|__________|__________| All the above amounts are derived from continuing operations. The notes on pages 13 to 18 form part of these financial statements. - 8 - ## THE NEU TRUST FUND LIMITED CHARITY STATEMENT OF FINANCIAL ACTIVITIES [Incorporating the Income and Expenditure Account] FOR THE YEAR ENDED 30 SEPTEMBER 2020 |||Total 2020|Total 2019| |---|---|---|---| ||Notes|£|£| |Income from:|||| |Donations|3|123,465|193,923| |Investment income|4|40,903|40,701| |||_________|_________| |Total income||164,368|234,624| |||_________|_________| |Expenditure on:|||| |Charitable activities|5|202,780|133,858| |Raising funds||10,840|3,564| |||_________|_________| |Total expenditure||213,620|137,422| |||_________|_________| |Net (Loss)/gains on investment assets|8b|(71,717)|60,820| |||_________|_________| |Net expenditure/income, being net movement in||(120,969)|158,022| |funds|||| |Fund balances at 1 October 2019||2,055,048|1,897,026| |||_________|_________| |Fund balances at 30 September 2020||1,934,079|2,055,048| |||_________|_________| All the above amounts are derived from continuing operations. The notes on pages 13 to 18 form part of these financial statements - 9 - ## THE NEU TRUST FUND LIMITED ## GROUP STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2020 |||2020||2019|| |---|---|---|---|---|---| ||Notes|£|£|£|£| |Fixed assets|||||| |Investments|8a||2,457,937||2,591,063| |Current assets|||||| |Debtors|9|-||-|| |Cash at bank and in hand||359,753||363,244|| |||__________||__________|| |Creditors: amounts falling due within|||||| |one year|10|(44,037)||(5,400)|| |||__________||__________|| |Net current assets|||351,716||357,844| ||||________||________| |Total assets less current liabilities|||2,773,653||2,948,907| ||||________||________| |Capital funds|||||| |Endowment funds|||839,574||893,859| |Income funds|||||| |Unrestricted funds|||1,934,079||2,055,048| ||||_________||_________| ||||2,773,653||2,948,907| ||||_________||_________| These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. The financial statements were approved by the Board of Trustees on 24 September 2021 and were signed on its behalf by:- ## Julie Huckstep J. Huckstep Trustee Company Registration No. 06364897 The notes on pages 13 to 18 form part of these financial statements. - 10 - ## THE NEU TRUST FUND LIMITED ## CHARITY STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2020 |||2020||2019|| |---|---|---|---|---|---| ||Notes|£|£|£|£| |Fixed assets|||||| |Investments|8b||1,908,456||1,987,297| |Current assets|||||| |Debtors|9|-||-|| |Cash at bank and in hand||359,753||363,244|| |||__________||__________|| |Creditors: amounts falling due within|||||| |one year|10|(334,130)||(295,493)|| |||__________||__________|| |Net current assets|||25,623||67,751| ||||________||________| ||||1,934,079||2,055,048| |Total assets less current liabilities|||________||________| |Income funds|||||| |Unrestricted funds|||1,934,079||2,055,048| ||||_________||_________| ||||1,934,079||2,055,048| ||||_________||_________| These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006. The financial statements were approved by the Board of Trustees on 24 September 2021 and were signed on its behalf by:- ## Julie Huckstep J. Huckstep Trustee Company Registration No. 06364897 The notes on pages 13 to 18 form part of these financial statements. - 11 - ## THE NEU TRUST FUND LIMITED ## GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2020 |Cash flows (used in)/from operating activities:
Net movement in funds
Loss/(gains) on investments
Dividends and interest from investments
Increase in debtors
Decrease in creditors
Net cash flows (used in)/from operating activities
Net cash flows from/(used in) investment activities:
Investment income
Proceeds from sale of investments
Purchase of investments
Increase investment cash
Net cash flow from investment activities
Change in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalent at the end of year|2020
£
(175,254)
121,956
(59,302)
-
38,637
(73,963)
59,302
1,029,274
(1,029,234)
11,130
70,472
(3,491)
363,244
359,753|2019
£
165,641
(69,781)
(55,361)
2,320
-| |---|---|---| |||42,819
55,361
258,734
(267,404)
9,129| |||55,820
98,639
264,605| |||363,244| The notes on pages 13 to 18 form part of these financial statements. - 12 - ## THE NEU TRUST FUND LIMITED ## NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020 ## 1 **General Information** The NEU Trust Fund Limited is a charitable company limited by guarantee, registered in England and Wales (company no. 06364897, charity no. 1123305). It is governed by its Memorandum and Articles dated 30 June 2007. The address of the registered office is given on page 1. These financial statements are for the year ended 30 September 2020. The functional currency is GBP, which is the same as the presentational currency. The financial statements are rounded to the nearest pound. ## 2 **Accounting policies** ## 2.1 ## **Basis of accounting** The financial statements have been prepared under the historical cost convention, as modified by the revaluation of fixed asset investments, and in accordance with the Statement of Recommended Practice (SORP), applicable for charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) the Charities Act 2011, and the Companies Act 2006. The Charity constitutes a public benefit entity as defined by FRS 102. The Charity is the sole corporate trustee of The NEU Trust Fund (registered charity number 1123305-1), an unincorporated trust which holds the William Mitchell Endowment. The unincorporated trust is a linked charity of The ATL Trust Fund Limited and has therefore been consolidated into these financial statements on a line by line basis. The Trustees have reviewed the charity’s investments and operations in response to the impact of the COVID-19 pandemic. The budget for charitable activities in 2019-20 and 2020-21 is, at this time, unaffected. The charities hold reserves to supplement income requirements to meet charitable objectives as required. The Trustees consider that there are no material uncertainties over the charities’ ability to continue as a going concern for the foreseeable future, being a period of at least 12 months from the date of signing the financial statements. ## 2.2 **Judgements in applying accounting policies and key sources of estimation uncertainty** The preparation of the financial statements requires the Trustees to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on the Trustees' best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. The Trustees’ consider that there are no key sources of estimation uncertainty. ## 2.3 ## **Income** Donations, subscriptions and legacies are recognised when receivable. Income from the National Education Union members is recognised on an accrual’s basis. Dividend income is credited to the Statement of Financial Activities in the year in which it is receivable. ## 2.4 ## **Expenditure** Expenditure is recognised on an accruals basis, inclusive of value added tax. Expenditure relating to the charitable activities are those elements of expenditure directly and indirectly incurred in performing these activities. Costs of grant making are included in the Statement of Financial Activities in the year they are payable. Costs include grants made and support costs associated with the activity. Costs in support of grant making relates to the day-to-day administration of the affairs of the charities and are allocated based on the basis of time spent in that area. Governance costs include those costs incurred in the governance of the charity’s assets and are primarily associated with constitutional and statutory requirements. - 13 - THE NEU TRUST FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020 ## **Accounting policies (continued)** ## 2.5 **Gains/losses on investment assets** All gains and losses are taken to the Statement of Financial Activities as they arise. Unrealised gains and losses on investment assets represent the difference between their fair value at the end of the year and their fair value at the beginning of the year, or transaction value if acquired during the year. Realised gains and losses on disposal of investment assets represent the difference between the sale proceeds and the fair value at the beginning of the year, or transaction value if acquired during the year. ## 2.6 **Financial instruments** The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value ## 2.7 **Investments** Investments consist of funds held on deposit in notice accounts or fixed term deposits and listed investments. Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using their closing quoted market price. ## 2.8 **Debtors** Debtors are recognised at fair value. ## 2.9 **Cash and cash equivalents** Cash and cash equivalents consist of balances in bank accounts with instant access. ## 2.10 **Creditors** Creditors are recognised at fair value. ## 2.11 **Taxation** The charity benefits from the tax exemptions available to UK registered charities and accordingly is not liable for income tax or capital gains tax on income and gains derived from its investments. ## 2.12 **Accumulated funds** Unrestricted funds are general funds that are available for the use at the Trustees’ discretion in furtherance of the objectives of the charity. On 5[th] December 2008, the net assets of the unincorporated ATL Trust Fund (now called The NEU Trust Fund) were transferred to the incorporated NEU Trust Fund Limited with the exception of the Mitchell bequest which is still held by the unincorporated body. Under the terms of the Mitchell bequest, the capital value cannot be spent; only the interest received can be used for distribution. The Endowment Fund is the William Mitchell Endowment of the unincorporated ATL Trust Fund, of which ATL Trust Fund Limited is the sole trustee. - 3 **Donations** |**nations**||||| |---|---|---|---|---| ||Charity||Group|| ||2020|2019|2020|2019| ||£|£|£|£| |Members Donations & gifts|18,399|20,277|-|5,617| |General Donations|1,198|1,074|1,198|1,074| |NEU & Districts|89,740|172,572|89,740|172,572| |Legacies|14,128|-|14,128|-| ||________|________|________|________| ||123,465|193,923|105,066|179,263| ||________|________|________|________| Income of £18,399 (2019: £14,660) generated by the unincorporated body is donated to the NEU Trust Fund Ltd (the charity). All donation income in both 2020 and 2019 related to unrestricted funds. - 14 - ## THE NEU TRUST FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020 ## 4 **Investment Income** |**vestment Income**||||| |---|---|---|---|---| ||Charity||Group|| ||2020|2019|2020|2019| ||£|£|£|£| |Income from listed investments|36,759|35,544|55,158|50,204| |Interest receivable|4,144|5,157|4,144|5,157| ||________|________|________|________| ||40,903|40,701|55,361|55,361| ||________|________|________|________| |investment income in both 2020 and 2019 relates to unrestricted||funds.||| |**aritable activities**||||| |Group and Charity|Other Costs|Grant Costs|Total|Total| ||||2020|2019| ||£|£|£|£| |**_Relief for members_**||||| |Grant funding of activities to individuals|-|168,464|168,464|92,739| |Support costs|27,616|-|27,616|35,719| |Governance costs – auditors remuneration|6,700|-|6,700|5,400| ||________|________|________|________| ||34,316|168,464|202,780|133,858| ||________|________|________|________| All investment income in both 2020 and 2019 relates to unrestricted funds. - 5 **Charitable activities** - 6 ## **Trustees** The Trustees consider themselves to be the key management personnel of the charity, in charge of directing and controlling the charity. None of the trustees (or any person connected with them) received any remuneration during the year (2019:nil). Reimbursements of travel and subsistence were made to five trustees and amounted to £1,237 (2019: £3,671). In 2020 travel costs of the NEU appointed trustees were covered by the NEU. Also there were fewer physical meetings thus the costs were reduced. ## 7 **Employees** There were no employees during the year. - 8 ## **a) Fixed asset investment** |Group|Deposit Fund|Cash held for|Listed|Total| |---|---|---|---|---| |||investment|investments|| ||£|£|£|£| |Market Value at 1 October 2019|397,116|24,252|2,169,695|2,591,063| |Cash Movement|3,716|(14,846)|-|(11,130)| |Disposal proceeds|-|-|(1,029,274)|(1,029,274)| |Acquisitions|-|-|1,029,234|1,029,234| |Change in value in the year|-|-|(121,956)|(121,956)| ||_________|_________|_________|_________| |Market Value at 30 September 2020|400,832|9,406|2,047,699|2,457,937| ||_________|_________|_________|_________| |Historic cost:||||| |At 30 September 2020|400,832|9,406|1,840,947|2,251,185| ||_________|_________|_________|_________| |At 30 September 2019|397,116|24,252|1,463,946|1,885,314| ||_________|_________|_________|_________| £50,239 of the change in value of investments in the year relates to the restricted endowment fund (2019: £8,961) - 15 - ## THE NEU TRUST FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020 ## 8 **a) Fixed asset investments continued** Included within the total group investment balance is £549,482 (2019: £603,766) belonging to the endowment fund. |Listed Investments at market value are held in the following classes:|2020|2019| |---|---|---| ||£|£| |UK fixed interest|262,772|198,995| |UK equities|550,150|824,231| |Foreign equities|1,113,994|1,146,468| |Other|531,021|421,369| ||_________|_________| ||2,457,937|2,591,063| ||_________|_________| ## **b) Fixed asset investment Cont.** |Charity|Deposit Fund|Cash held for|Listed|Total| |---|---|---|---|---| |||investment|investments|| ||£|£|£|£| |Market Value at 1 October 2019|397,116|5,414|1,584,767|1,987,297| |Cash Movement|3,716|2,113|-|5,829| |Disposal proceeds|-|-|(789,174)|(789,174)| |Acquisitions|-|-|776,221|776,221| |Change in value in the year|-|-|(71,717)|(71,717)| ||_________|_________|_________|_________| |Market Value at 30 September 2019|400,832|7,527|1,500,097|1,908,456| ||_________|_________|_________|_________| |Historic cost:||||| |At 30 September 2020|400,832|7,527|1,296,891|1,705,250| ||_________|_________|_________|_________| |At 30 September 2019|397,116|5,414|930,384|1,332,915| ||_________|_________|_________|_________| |Investments at market value are held in the following classes:|||2020|2019| ||||£|£| |UK fixed interest|||184,161|120,431| |UK equities|||411,671|586,019| |Foreign equities|||812,900|878,315| |Other|||499,724|402,532| ||||_________|_________| ||||1,908,456|1,987,297| ||||_________|_________| - 16 - ## THE NEU TRUST FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020 ## 9 **Debtors** ||2020|2019| |---|---|---| ||£|£| |Group||| |Other Debtors|-|-| ||_________|_________| |Charity||| |Other Debtors|-|-| |Amounts due from the unincorporated fund|-|-| ||_________|_________| ||-|-| ||_________|_________| |**editors: amounts due within one year**||| ||2020|2019| ||£|£| |Group||| |Grant Creditors|25,700|-| |Other Creditors/Accruals|18,338|5,400| ||_________|_________| ||44,037|5,400| ||_________|_________| |Charity||| |Grant Creditors|25,700|-| |Other Creditors/Accruals|18,338|5,400| |Amounts due to the unincorporated fund|290,093|290,093| ||_________|_________| ||334,130|295,493| ||_________|_________| ## 10 **Creditors: amounts due within one year** ## 11 **Analysis of net assets between funds** ||Unrestricted|Restricted|Total| |---|---|---|---| |||Endowment|| |Group|£|£|£| |Fund balances at 30 September 2020 are represented by:|||| |Investments|1,908,456|549,481|2,457,937| |Current Assets|69,660|290,093|359,753| |Creditors: amounts falling due within one year|(44,037)|-|(44,037)| ||_________|_________|________| ||1,934,079|839,574|2,773,653| ||_________|_________|________| |Charity|||| |Fund balances at 30 September 2020 are represented by:|||| |Investments|1,908,456|-|1,908,456| |Current Assets|359,753|-|359,753| |Creditors: amounts falling due within one year|(334,130)|-|(334,130)| ||_________|_________|_________| ||1,934,079|-|1,959,854| ||_________|_________|_________| The unrestricted funds represent the free funds of the charity which are not designated for a particular purposes and are the funds of the incorporated charity, The NEU Trust Fund Limited. The restricted endowment represents the funds bestowed to the unincorporated charity, The NEU Trust Fund, by William Mitchell. The income from this endowment can be applied towards the general purpose charity. - 17 - ## THE NEU TRUST FUND LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020 ## **Analysis of net assets between funds (continued)** ||Unrestricted|Restricted|Total| |---|---|---|---| |||Endowment|| |Group|£|£|£| |Fund balances at 30 September 2019 are represented by:|||| |Investments|1,987,297|603,766|2,591,063| |Current Assets|73,151|290,093|363,244| |Creditors: amounts falling due within one year|(5,400)|-|(5,400)| ||_________|_________|________| ||2,055,048|893,859|2,948,907| ||_________|_________|________| |Charity|||| |Fund balances at 30 September 2019 are represented by:|||| |Investments|1,987,297|-|1,987,297| |Current Assets|363,244|-|363,244| |Creditors: amounts falling due within one year|(295,493)|-|(295,493)| ||_________|_________|_________| ||2,055,048|-|2,055,048| ||_________|_________|_________| - 18 -