2023-09-30-accounts

Charity Registration No. 1123305 Company Registration No. 06364897 (England and Wales)

THE NEU TRUST FUND LIMITED REPORT AND FINANCIAL STATEMENTS 30 SEPTEMBER 2023

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	6-8
Group statement of financial activities	9
Charity statement of financial activities	10
Group statement of financial position	11
Charity statement of financial position	12
Group statement of cash flows	13
Notes to the financial statements	14-19

THE NEU TRUST FUND LIMITED

Reference and administration information

Trustees	C. Cranmer
	J. Huckstep
	A. Robinson
	M. Lawes
	S. Ainger
	P. Gouveia
	J. Elderkin
	E. Glazier
	H. McKenzie
	L. Atkinson
Secretary	Wilsons (Company Secretaries)	Limited
Charity number	1123305
Company number	06364897
Principal address	Hamilton House
	Mabledon Place
	London
	WC1H 9BD
Auditors	Azets
	Regis House
	45 Kind William Street
	London
	EC4R 9AN
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	Rathbone Investment Management
	Senator House	8 Finsbury Circus
	85 Queen Victoria Street	London
	London	EC2M 7AZ
	EC4V 4AB

-1-

THE NEU TRUST FUND LIMITED

TRUSTEES’ REPORT (incorporating a Directors’ Report) FOR THE YEAR ENDED 30 SEPTEMBER 2023

The Trustees present their report and accounts for the year ended 30 September 2023.

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 L. Atkinson J. Huckstep E. Glazier H. McKenzie

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 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.

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 has received donations from members of the amalgamated union, as well as other bequests and legacies from time to time. The expansion of the charity has enabled more people to benefit from the charitable objects of the Trust Fund.

Recruitment and appointment of trustees

The Board comprises two Trustees who are Trustees of and appointed by the NEU (Appointed trustees), two elected by the Executive Committee of the NEU (Executive trustees) 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 2023 (continued)

Risk management (continued)

Following a monitoring process the trustees have concluded that the risk appetite adopted remains acceptable.

In particular, the directors have continued to review their ability to continue their charitable activities, i.e. grant-making, given the historically highest ever level of grants made – £274,900. 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 National Education Union 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. For clarity it has been decided that the Board will not make a grant unless the member has been in membership for more than 6 months. The Grants Committee may vary this at their discretion and such a variance will be reported back to the Board.

Achievements and Performance

The Trust Fund has achieved its aims in supporting members and their dependants by:

i) by making awards of £274,942 to 159 beneficiaries in the year, £201,065 to 122 beneficiaries in 2021/22; ii) publicising the work of the Trust Fund to NEU districts in order to raise the profile of the fund amongst members including a leaflet distribution and announcement to Annual Conference.

iii) using and updating the annual calendar to ensure that all essential tasks were completed on time. iv) reviewing the Awards and Complaints Policies.

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 further 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 & Rathbones);

iv) seeking to retain the services of Trust Fund Board members with appropriate expertise and skills and undertaking a recruitment process to appoint new Board members when existing ones retire from office;

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 2023

(continued)

Financial Review

The Trust’s work is reliant on income from the members of NEU and its investment income. The income for the year ending 30 September 2023 was £183,484 (2022: £281,472). The income from the NEU and its districts was £65,316 (2022: £159,441) and legacies left to the trust fund £33,143 (2022: £54,981). Grants issued in the year were £274,942 (2022: £201,065). Total group reserves at the year-end were £3,176,671 (2022: £3,261,585), of which £2,313,301 (2022: £2,400,398) were unrestricted. The capital value of the restricted reserves was £863,370 (2022: £861,187).

Investment Policy

The trustees rely on both the investment managers, Quilter Cheviot Ltd and Rathbones, to maximise the returns on the funds within the constraints set out by the trustees. The Board are to continue to monitor the performance of both QC and Rathbones regarding their meeting of the benchmarks and meeting the ethical criteria set out for investments.

Reserves policy

Consolidated reserves held at the year-end amounted to £3,176,671 (2022: £3,261,585). 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 2023, the unrestricted funds of the trust were £2,313,301 (2022: £2,400,398) 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.

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

J Huckstep Chairperson Date: 7 March 2024

• 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 MEMBERS AND TRUSTEES OF THE NEU TRUST FUND LIMITED

Opinion on the financial statements

In our opinion, the financial statements:

• give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 30 September 2023 and of the group’s incoming resources and application of resources and the parent charitable company’s incoming resources and application of resources 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.

We have audited the financial statements of The NEU Trust Fund Limited (the parent charitable company) and its linked charity (together the group”) for the year ended 30 September 2023 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the group and the parent charitable company in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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. The other information comprises: the Trustees’ Report, incorporating a Directors’ Report. 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. 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.

• 6 -

THE NEU TRUST FUND LIMITED

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS AND TRUSTEES OF THE NEU TRUST FUND LIMITED

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Report, which includes the Directors’ Report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors’ Report, which are included in the Trustees’ Report, has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustee’s report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion;

• adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Directors’ 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’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 determines 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 group’s and the parent 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 group or the parent 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

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• 7 -

THE NEU TRUST FUND LIMITED

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS AND TRUSTEES OF THE NEU TRUST FUND LIMITED

• As part of designing our audit, based on our understanding of the charitable company and the industry in which it operates, we assessed the risks of material misstatement in the financial statements, including how fraud may occur. We considered the charitable company’s own assessment of the risks that irregularities may occur either as a result of fraud or error and held discussions to consider whether there was any knowledge of actual, suspected or alleged fraud. We considered the extent to which non-compliance might have a material effect on the charitable company’s financial statements. As part of our discussions, we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes;

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company. These include, but are not limited to, compliance with the Charities Act 2011, United Kingdom Generally Accepted Accounting Practice and tax legislation.

We completed the following procedures:

• Reviewed the charitable company’s consideration of risks and associated mitigating actions and reviewed Trustee Board meeting minutes for any indication of fraud or non-compliance with laws and regulations;

• Made enquiries regarding any matters identified as a Serious Incident reportable to the Charity Commission. Note that auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of Those Charged with Governance and other management, and inspection of regulatory and legal correspondence if any;

• Performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• In addressing the risk of fraud through management override of controls, we tested journal entries and other adjustments for inappropriate or unusual journals outside of our expectations, as well as for any significant transactions outside the normal course of business, taking into consideration the scope for management to manipulate financial results through the timing of the recognition of income or grant commitments.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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. Our audit work has been undertaken so that we might state to the charitable company’s members 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 and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

J Howard FCA, Senior Statutory Auditor For and on behalf of Azets Audit Services, Statutory Auditor 45 King William Street, London, EC4R 9AN

Date: 15 April 2024

• 8 -

THE NEU TRUST FUND LIMITED

GROUP STATEMENT OF FINANCIAL ACTIVITIES [Incorporating the consolidated Income and Expenditure Account] FOR THE YEAR ENDED 30 SEPTEMBER 2023

		Unrestricted	Restricted	Total 2023	Total 2022
		Funds	Endowment
			Funds
	Notes	£	£	£	£
Income from:
Donations and Legacies	3	109,230	-	109,230	262,694
Investment income	4	74,254	-	74,254	61,575
		___	___	___	___
Total income		183,484	-	183,484	324,269
		___	___	___	___
Expenditure on:
Charitable activities	5	310,911	-	310,911	231,879
Raising funds		10,222	3,304	13,526	12,537
		___	___	___	___
Total expenditure		321,133	3,304	324,437	244,416
		___	___	___	___
Net (losses)/gains on investment assets	8a	7,755	5,487	13,242	(228,749)
		___	___	___	___
Net (expenditure)/income, being net
movement in funds		(129,894)	2,183	(127,711)	(148,896)
Fund balances at 1 October 2022		2,443,195	861,187	3,304,382	3,453,278
		___	___	____	____
Fund balances at 30 September		2,313,301	863,370	3,176,671	3,304,382
2023
		___	___	____	____

All the above amounts are derived from continuing operations.

The notes on pages 14 to 19 form part of these financial statements.

• 9 -

THE NEU TRUST FUND LIMITED

CHARITY STATEMENT OF FINANCIAL ACTIVITIES [Incorporating the Income and Expenditure Account] FOR THE YEAR ENDED 30 SEPTEMBER 2023

		Total 2023	Total 2022
	Notes	£	£
Income from:
Donations and Legacies	3	128,555	281,050
Investment income	4	54,929	43,219
		___	___
Total income		183,484	324,269
		___	___
Expenditure on:
Charitable activities	5	310,911	231,879
Raising funds		10,222	9,084
		___	___
Total expenditure		321,133	240,963
		___	___
Net (loss)/gains on investment assets	8b	(7,755)	(175,929)
		___	___
Net (expenditure)/income, being net movement in		(129,894)	(92,623)
funds
Fund balances at 1 October 2022		2,443,195	2,535,818
		___	___
Fund balances at 30 September 2023		2,313,301	2,443,195
		___	___

All the above amounts are derived from continuing operations.

The notes on pages 14 to 19 form part of these financial statements

• 10 -

THE NEU TRUST FUND LIMITED

GROUP STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2023

		2023	2023	2022
	Notes	£	£	£	£
Fixed assets
Investments	8a		2,758,830		2,248,291
Current assets
Debtors	9	-		117,771
Cash at bank and in hand		494,037		986,035
		____		____
		494,037		1,103,806
Creditors: amounts falling due within
one year	10	(76,196)		(47,715)
		____		____
Net current assets			417,841		1,056,091
			__		__
Total assets less current liabilities			3,176,671		3,304,382
			__		__
Capital funds
Endowment funds	11		863,370		861,187
Income funds
Unrestricted funds	11		2,313,301		2,443,195
			___		___
			3,176,671		3,304,382
			____		___

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 7 March 2024 and were signed on its behalf by:-

J. Huckstep Trustee

Company Registration No. 06364897

The notes on pages 14 to 19 form part of these financial statements.

• 11 -

THE NEU TRUST FUND LIMITED

CHARITY STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2023

		2023	2023	2022
	Notes	£	£	£	£
Fixed assets
Investments	8b		2,185,553		1,677,197
Current assets
Debtors	9	-		117,771
Cash at bank and in hand		494,037		986,035
		____		____
		494,037		1,103,806
Creditors:amounts falling due within
one year	10	(366,289)		(337,808)
		____		____
Net current assets			127,748		765,998
			__		__
			2,313,301		2,443,195
Total assets less current liabilities			__		__
Income funds
Unrestricted funds
			2,313,301		2,443,195
			___		___
			2,313,301		2,443,195
			____		___

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 7 March 2024 and were signed on its behalf by:-

J. Huckstep Trustee

Company Registration No. 06364897

The notes on pages 14 to 19 form part of these financial statements.

• 12 -

THE NEU TRUST FUND LIMITED

GROUP STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2023

		2023	2022
		£	£
Cash flows (used in) / from operating activities:
Net movement in funds		(127,711)	(148,896)
Losses/(gains) on investments		(13,242)	228,749
Dividends and interest from investments		(74,254)	(61,575)
Change in debtors		117,771	(98,667)
Change in creditors		28,481	18,611
Net cash flows (used in)/from operating activities		(68,955)	(61,778)
Net cash flows from investment activities:
Investment income		74,254	61,575
Proceeds from sale of investments		302,593	250,348
Purchase of investments		(813,011)	(185,855)
Decrease / (increase) in investment cash		13,121	161,269
Net cash flow from investment activities		(423,043)	287,337
Change in cash and cash equivalents		(491,998)	225,559
Cash and cash equivalents at beginning of year		986,035	760,476
Cash and cash equivalent at the end of year		494,037	986,035
Analysis of cash and cash equivalents:
Cash at bank and in hand		494,037	986,035
Analysis of changes in net debt:			30
	1 October	Non-cash	September
	2022	Cash flows movement	2023
	£	£ £	£
Cash at bank and in hand	986,035	(491,998) -	494,037

The notes on pages 14 to 19 form part of these financial statements.

• 13 -

THE NEU TRUST FUND LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

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 2023. 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 NEU Trust Fund Limited and has therefore been consolidated into these financial statements on a line by line basis. The Trustees have elected to prepare consolidated accounts for the linked charities, rather than use branch accounting as allowable under the Charities SORP, on the basis that they consider consolidated accounts to present the detail of the reporting charity and linked charity in a manner that is more understandable to users of the financial statements.

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.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in 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. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material (see note 3).

• 14 -

THE NEU TRUST FUND LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

Accounting policies (continued)

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 and are included as part of charitable activity expenditure.

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. Funds held on deposit in notice accounts or fixed term deposits are included within fixed asset investments where they are held specifically for investment purposes are not intended to be realised within 12 months of the reporting date.

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 or deposit accounts with a maturity date of less than three months, held for the purposes of meeting short-term cash commitments as they fall due.

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 ATL Trust Fund Limited (now called the NEU Trust Fund Ltd) 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 NEU Trust Fund, of which NEU Trust Fund Limited is the sole trustee.

• 15 -

THE NEU TRUST FUND LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

3 Donations and Legacies

nations and Legacies
	Charity		Group
	2023	2022	2023	2022
	£	£	£	£
Members Donations & gifts	25,393	19,970	6,068	1,614
General Donations	4,703	3,861	4,703	3,861
NEU & Districts	65,316	159,441	65,316	159,441
Legacies	33,143	97,778	33,143	97,778
	__	__	__	__
	128,555	281,050	109,230	262,694
	__	__	__	__

Income of £19,325 (2022: £18,356) generated by the unincorporated body is donated to the NEU Trust Fund Ltd (the charity). All donation income in both 2022 and 2023 related to unrestricted funds.

4

Investment Income

	Charity	Charity	Group	Group
	2023	2022	2023	2022
	£	£	£	£
Income from listed investments	48,681	40,971	68,006	59,327
Interest receivable	6,248	2,248	6,248	2,248
	__	__	__	__
	54,929	43,219	74,254	61,575
	__	__	__	__

All investment income in both 2023 and 2022 relates to unrestricted funds.

• 5

Charitable activities
Group and Charity	Other Costs	Grant Costs	Total	Total
			2023	2022
	£	£	£	£
Relief for members
Grant funding of activities to individuals	-	274,942	274,942	201,065
Support costs	29,069	-	29,069	23,307
Governance costs – auditor’s remuneration	6,900	-	6,900	7,507
	__	__	__	__
	35,969	274,942	310,911	231,879
	__	__	__	__

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 (2022: nil). Reimbursements of travel and subsistence for trustees amounted to £312, (2022: £772).

7 Employees

There were no employees during the year (2022: nil).

• 16 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

THE NEU TRUST FUND LIMITED

8 a) Fixed asset investment - Group

	Deposit Fund	Cash held for	Listed	Total
		investment	investments
	£	£	£	£
Market Value at 1 October 2022	190,303	72,348	1,985,640	2,248,291
Cash Movement	2,726	(15,847)	-	(13,121)
Disposal proceeds	-	-	(302,593)	(302,593)
Acquisitions	-	-	813,011	813,011
Change in value in the year	-	-	13,242	13,242
	___	___	___	___
Market Value at 30 September 2023	193,029	56,501	2,509,300	2,758,830
	__	__	__	___
Historic cost:
At 30 September 2023	193,029	56,501	2,337,337	2,586,867
	___	___	___	___
At 30 September 2022	190,303	72,348	1,828,442	2,091,093
	___	___	___	___

(£5,487) of the change in value of investments in the year relates to the restricted endowment fund (2022: £52,820).

Included within the total group investment balance is £563,779 (2022: £560,168) belonging to the endowment fund in addition to £9,498 (2022: £10,926) of Cash held within Investments.

Listed Investments at market value are held in the following classes:	2023	2022
	£	£
UK fixed interest	869,700	282,810
UK equities	480,772	477,847
Foreign equities	868,618	905,958
Other	290,210	319,025
	___	___
	2,509,300	1,985,640
	___	___

• 17 -

THE NEU TRUST FUND LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

8 b) Fixed asset investment Charity

	Deposit Fund	Cash held for	Listed	Total
		investment	investments
	£	£	£	£
Market Value at 1 October 2022	190,303	61,420	1,425,474	1,677,197
Cash Movement	2,726	(14,418)	-	(11,692)
Disposal proceeds	-	-	(250,232)	(250,232)
Acquisitions	-	-	762,525	762,525
Change in value in the year	-	-	7,755	7,755
	___	___	___	___
Market Value at 30 September 2023	193,029	47,002	1,945,522	2,185,553
	__	___	___	___
Historic cost:
At 30 September 2023	193,029	47,002	1,792,754	2,032,785
	___	___	___	___
At 30 September 2022	190,303	61,421	1,286,839	1,538,563
	___	___	___	___
Investments at market value are held in the following classes:			2023	2022
			£	£
UK fixed interest			775,984	202,780
UK equities			320,521	330,761
Foreign equities			642,256	671,293
Other			206,760	220,640
			__	__
			1,945,521	1,425,474
			___	___

9 Debtors

	2023	2022
	£	£
Group
Other Debtors	-	74,974
Accrued legacy income	-	42,797
	__	__
	-	117,771
Charity
Other Debtors	-	74,974
Accrued legacy income	-	42,797
	__	__
	-	117,771
	___	___

Debtor balances are funds due from the National Education Union

• 18 -

THE NEU TRUST FUND LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

10 Creditors: amounts due within one year

			2023	2022
			£	£
	Group
	Grant Creditors		64,400	38,600
	Other Creditors/Accruals		11,796	9,115
			___	___
			76,196	47,715
			___	___
	Charity
	Grant Creditors		64,400	38,600
	Other Creditors/Accruals		11,796	9,115
	Amounts due to the unincorporated fund		290,093	290,093
			___	___
			366,289	337,808
			___	___
11	Analysis of net assets between funds
		Unrestricted	Restricted	Total
			Endowment
	Group	£	£	£
	Fund balances at 30 September 2023 are represented by:
	Investments	2,185,553	573,277	2,758,830
	Current Assets	203,944	290,093	494,037
	Creditors: amounts falling due within one year	(76,196)	-	(76,196)
		__	__	__
		2,313,301	863,370	3,176,671
		___	___	__
	Charity
	Fund balances at 30 September 2023 are represented by:
	Investments	2,185,553	-	2,185,553
	Current Assets	494,037	-	494,037
	Creditors: amounts falling due within one year	(366,289)	-	(366,289)
		___	___	___
		2,313,301	-	2,313,301
		___	___	___

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.

	Unrestricted	Restricted	Total
		Endowment
Group	£	£	£
Fund balances at 30 September 2022 are represented by:
Investments	1,677,197	571,094	2,248,291
Current Assets	813,713	290,093	1,103,806
Creditors: amounts falling due within one year	(47,715)	-	(47,715)
	___	___	__
	2,443,195	861,187	3,304,382
	___	___	__
Charity
Fund balances at 30 September 2022 are represented by:
Investments	1,677,197	-	1,677,197
Current Assets	1,103,806	-	1,103,806
Creditors: amounts falling due within one year	(337,808)	-	(337,808)
	___	___	___
	2,443,195	-	2,443,195
	___	___	___

• 19 -