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2020-10-31-accounts

Registered as a charity: 1150037

Worcester College Oxford Endowment Trust

FINANCIAL STATEMENTS for the year ended 31[st] October 2020

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

INDEX

Page
Charity information 2
Trustees’ report 3
Report of the auditor 6
Principal accounting policies 8
Statement of Financial Activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13

1

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

CHARITY INFORMATION

Trustees: Rt Hon. Sir Timothy Sainsbury
Mr M Paisner
Dr J Scott Scullion
Mr B Wigmore
Mr D Kemper
Sir Lindsay Owen-Jones KBE
Professor Kate Tunstall
Mr David Loevner (from Feb-20)
Charity Address: Worcester College
Walton Street
Oxford
OX1 2HB
Charity Registration Number: 1150037
Bankers: The Royal Bank of Scotland
Customer Service Centre
Drummond House
1 Redheughs Avenue
Edinburgh
EH12 9JN
Auditor: Critchleys Audit LLP
Chartered Accountants
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP

2

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

TRUSTEES’ REPORT

The Trustees present their report together with financial statements for the year ended 31 October 2020. Worcester College Oxford Endowment Trust is a registered charity governed by its Trust Deed dated 29 October 2012.

Principal activities and objectives

The principal objectives of the charity are:

  1. to provide financial and material assistance, encouragement and support to and for the advancement of education, religion, learning and research, at Worcester College;

  2. to preserve and maintain the fabric and contents of any buildings, grounds and land held by Worcester College; and

  3. such other charitable purposes as are connected with the advancement of education, religion, learning and research as shall in the opinion of the Trustees from time to time be conducive or complementary to the advancement and support of Worcester College.

Organisation

The Trustees have met once in the period. Administration and accounting support is provided to the charity by Worcester College. The day-to-day management is delegated to Gareth Prior.

Related parties

Worcester College will be the main beneficiary from the Trust and the Trust’s principal objective is to provide grants to the College for various activities.

Business and financial review

The principal activity of the Trust is the provision of grants to Worcester College, for various activities. Each year the Trustees of Worcester College Oxford Endowment Trust will make a grant to the College for activities which are worthy of support and are in accordance with the Trust’s objects. The Trustees will approve the grant for the year taking into account the projected income for the year and brought forward reserves which are available for distribution.

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Achievements and performance

The Trust’s principal funding sources are donations.

During the year the Trust received donations of £79 (2019: £588,426). The total market value of the Trust’s investments was £13,322,039 at 31 October 2020 (2019: £13,236,777).

Public benefit reporting

The Trustees confirm that they have complied with the duty in Section 17(5) of the 2011 Charities Act to have due regard to public benefit guidance published by the Charity Commission.

3

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

TRUSTEES’ REPORT

Trustee Induction and Training

Trustees are fully briefed when appointed and if further training is required this is arranged as necessary.

Investment Performance

The objective of the Trust’s investment policy is to achieve a rising level of income which increases sufficiently to counteract the impact of inflation and to meet the Trust's principal activity of the provision of grants to Worcester College, while at the same time ensuring long term capital growth of the Trust's investment portfolio.

Risk statement

The Trustees have identified the main risks to which the Charity is exposed. Systems and procedures are being developed to mitigate these risks.

Financial risk assessment

At present the financial risks to which the charity is exposed are minimal, as the majority of the financial assets are cash funds held at the bank and investments with MFS Meridian Global Equity Fund and Oxford University Endowment Management. The Charity seeks to ensure sufficient liquidity is available to meet foreseeable needs. The Charity aims to hold cash deposits which are adequate to ensure that volatility in short term income should not impact on expenditure and to ensure that the Charity is able to continue in its current manner should unforeseen events arise.

Reserves policy

The trustees have reviewed the charity's need for reserves in line with the Charity Commission guidelines. The normal policy is to hold unrestricted reserves to protect against the risks of shortfalls in cash balances due to uncertainties in the timing of fundraising opportunities for unrestricted funds.

On 31 October 2020 the charity held the following Reserves:

Unrestricted general funds
Restricted funds
Reserves at 31 October 2020		 £
8,006,065
4,584,192
12,590,257

Funding

The charity’s assets are available and adequate to fulfil its obligations.

Trustees

The trustees, who have served during the year are listed below. Rt Hon. Sir Timothy Sainsbury Mr M Paisner Dr J Scott Scullion Mr B Wigmore Mr D Kemper Sir Lindsay Owen-Jones KBE Professor Kate Tunstall Mr David Loevner (from Feb-20)

4

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

TRUSTEES’ REPORT

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements, for each financial year, which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the Trust Deed. 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.

Approved by the trustees and signed on their behalf by:

Dr J Scott Scullion Trustee 27 July 2021

5

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

Opinion

We have audited the financial statements of Worcester College Oxford Endowment Trust (‘the charity’) for the year ended 31 October 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the 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).

In our opinion, the financial statements:

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 charity 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 other 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 opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

6

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, 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 charity’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 charity 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 Section 144 Charities Act 2011 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities

This description forms part of our auditor’s report.

Critchleys Audit LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the 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 charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Critchleys Audit LLP, Statutory Auditor Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP

20 August 2021

7

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

PRINCIPAL ACCOUNTING POLICIES

Basis of preparation and assessment of going concern

The financial statements have been prepared under the historical cost convention, in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Trust is a public benefit entity under FRS102.

The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. With respect to the next reporting period, 2020-21, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets.

Income recognition

All income is recognised once the Trust has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations are recognised when the Trust has been notified in writing of both the amount and settlement date. In the event that there are donor-imposed restrictions, recognition is deferred until the pre-condition has been met.

Legacy gifts are recognised on a case-by-case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date.

In the event that the gift is in the form of an asset other than cash, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Intangible income is valued and included in income to the extent that it represents goods or services which would otherwise be purchased. An equivalent amount is charged as expenditure. Voluntary help is not included in income.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and is inclusive of any irrecoverable VAT. All expenses (including support costs and governance costs) are allocated or apportioned to the following applicable expenditure headings:-

Items of expenditure involving more than one cost category are apportioned on the basis of the estimated costs relating to each category as appropriate.

8

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

PRINCIPAL ACCOUNTING POLICIES

Governance costs are costs associated with the governance arrangements of the charity which relate to the general running of the charity as opposed to those costs associated with fundraising or charitable activity. Governance costs include external audit, legal and professional fees, remuneration to trustees and costs associated with constitutional and statutory requirements. Also included within this category are any costs associated with the strategic management of the charity's activities.

Corporation tax and VAT

The charity has charitable status and is exempt from corporation tax on the income it has received. The charity is not registered for VAT.

Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for expenditure on the general objectives of the charity. The Restricted funds are to endow three fellowships at Worcester College: the Asa Briggs Humanities Fellowship, the Loevner Fellowship in Statistics and the David Woods Kemper Family Fellowship in English Literature.

Investments

Investments are included in the balance sheet at market valuation. Realised gains and losses on investments are calculated as the difference between sale proceeds and market value at the start of the year or subsequent cost and are credited or charged to the statement of financial activities in the year of disposal. Unrealised gains and losses represent the movement in the market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end.

9

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 OCTOBER 2020

Unrestricted
Funds
Note
£
INCOME AND ENDOWMENTS
FROM:
Donations and legacies
1
79
Investment income
2
188,626
00
Total income
188,705
EXPENDITURE ON:
Generating funds
Investment management costs
3
72
0
Charitable activities
0
Grants to institutions
4
699,583
Governance and support costs
5
3,390
Total expenditure
703,045
Net income / (expenditure) before
gains
(514,340)
Net gain on investments
54,225
Net income / (expenditure)
(460,115)
Transfers between funds
0
Net movement in funds for the year
(460,115)
0
Fund balances brought forward
10 8,466,180
0
Funds carried forward at 31 October
10 8,006,065		 Unrestricted
Funds
Note
£
INCOME AND ENDOWMENTS
FROM:
Donations and legacies
1
79
Investment income
2
188,626
00
Total income
188,705
EXPENDITURE ON:
Generating funds
Investment management costs
3
72
0
Charitable activities
0
Grants to institutions
4
699,583
Governance and support costs
5
3,390
Total expenditure
703,045
Net income / (expenditure) before
gains
(514,340)
Net gain on investments
54,225
Net income / (expenditure)
(460,115)
Transfers between funds
0
Net movement in funds for the year
(460,115)
0
Fund balances brought forward
10 8,466,180
0
Funds carried forward at 31 October
10 8,006,065		 Restricted
Endowed
2020
Funds
Funds
Total
£
£
£
00
0 0
79
107,830
0
296,456
0
0
0		 Restricted
Endowed
2020
Funds
Funds
Total
£
£
£
00
0 0
79
107,830
0
296,456
0
0
0		 Restricted
Endowed
2020
Funds
Funds
Total
£
£
£
00
0 0
79
107,830
0
296,456
0
0
0		 2019
Total
£
588,426
264,120
0
188,705 107,830 0 296,535 852,546

72
0
0

699,583

3,390		 0
0
0
400,417
0
0		 0
0
0		 72
0
0
1,100,000
3,390
0		 88
570,000
2,745
703,045 400,417 0 1,103,462 572,833
(514,340)
54,225
(292,587)
0
31,037
0		 0
0		 (806,927)
0
85,262
0		 279,713
1,354,492
(460,115)
0
(261,550)
0		 0
0		 (721,665)
0		 1,634,204
0
(460,115)
0
8,466,180
0
(261,550)
0
4,845,742
0		 0 (721,665)
0
13,311,922
0		 1,634,204
11,677,718
8,006,065 4,584,192 0 12,590,257 13,311,922

10

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

BALANCE SHEET AS AT 31 OCTOBER 2020

Notes
FIXED ASSETS
Investments
7
CURRENT ASSETS
Investments
8
Debtors
Cash at bank
LIABILITIES
Creditors: amounts falling due within one year
9
NET CURRENT (LIABILITIES)/ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
FUNDS
Unrestricted
10
Restricted
10
Endowed
TOTAL FUNDS		 31 October

2020
£
12,653,464
668,575
0
371,218
1,039,793
(1,103,000)
(63,207)
12,590,257
8,006,065
4,584,192
0
12,590,257		 31 October
2019
£
13,236,777
0
0
80,635
80,635
(5,490)
75,145
13,311,922
8,466,180
4,845,742
0
13,311,922

The financial statements were approved by the Trustees on 27 July 2021.

Dr J Scott Scullion, Trustee Charity number: 1150037

The accompanying accounting policies and notes form an integral part of these financial statements.

11

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2020


Net (expenditure)/ income for the reporting period (as per the statement
of financial activities)
Adjusted for:
Non-operating cash flows: investment income
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash (used in) / provided by operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of investments
Net cash provided by / (used in) investing activities
Cash flows from financing activities
Change in cash and cash equivalents in the reporting period
Reconciliation of net cash flows to movement in net funds
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
All of the cash flows are derived from continuing operations.
Analysis of cash and cash equivalents
At 1 Nov
2019
£
Cash at bank and in hand
80,635		 2020
£
(806,927)
(296,456)
0
1,097,510
(5,873)
296,456
0
296,456
0
290,583
80,635
371,218
Cash Flows
£
290,583		 2019
£
279,713
(264,120)
0
2,744
18,337
264,120
(500,000)
(235,880)
0
(217,543)
298,178
80,635
At 31 Oct
2020
£
371,218

12

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2020

1 DONATIONS AND LEGACIES

Unrestricted
Restricted
2
INVESTMENT INCOME
Unrestricted
Bank interest received
Other investment income
Restricted
Other investment income
3
INVESTMENT MANAGEMENT COSTS
Unrestricted
Bank charges
4
GRANTS TO INSTITUTIONS
Grant to Worcester College
Unrestricted
Restricted
5
GOVERNANCE COSTS
Unrestricted
Audit fee
Support costs		 2020
Total
£

79
0
79
2020
Total
£

234
188,392
188,626

107,830
296,456
2020
Total
£

72
2020
Total
£

699,583
400,417
1,100,000
2020
Total
£
3,390
0
3,390		 2019
Total
£
588,426
0
588,426
2019
Total
£
2,192
162,178
164,370
99,750
264,120
2019
Total
£
88
2019
Total
£
352,926
217,074
570,000
2019
Total
£
2,745
0
2,745

Costs that are allocated on a “Direct” basis are charged directly to the project or programme to which they relate, no apportionment of those costs is required.

13

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2020

6 PAYMENTS TO TRUSTEES AND CONNECTED PERSONS

No trustee or person with a family or business connection with a trustee received remuneration or expenses in the period directly or indirectly, from either the charity or an institution or company controlled by the charity.

7 FIXED ASSETS: INVESTMENTS

Listed Investments and cash
Market value at 1 November 2019
Acquisitions at cost
Transfer to current assets
Net gain on revaluation
Market value at 31 October 2020
Historical Cost
An analysis of the location of the listed investments of the Trust is as follows:
UK
Non-UK
£
£
1,646,546
11,006,918
CURRENT ASSETS: INVESTMENTS
Listed investments
CREDITORS
Amounts falling due within 1 year
Grant to Worcester College
Audit fee		 2020
Total
£
13,236,777
0
(668,575)
85,262
12,653,464

9,319,705
2020
Total
£
12,653,464
2020
Total
£
668,575
2020
Total
£
1,100,000
3,000
1,103,000		 2019
Total
£
11,382,285
500,000
0
1,354,492
13,236,777
9,319,705
2019
Total
£
13,236,777
2019
Total
£
0
2019
Total
£
0
5,490
5,490

8 CURRENT ASSETS: INVESTMENTS

9 CREDITORS

14

WORCESTER COLLEGE OXFORD ENDOWMENT TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2020

10 FUNDS
Balance at 1 November 2019
Incoming resources
Resources expended
Other gains and losses
Balance at 31 October 2020		 Unrestricted
Funds
8,466,180
188,705
(703,045)
54,225
8,006,065		 Restricted
Funds
£

4,845,742

107,830

(400,417)

31,037

4,584,192		 Endowed
Funds

£

0

0

0

0

0		 2020
Total

£
13,311,922

296,535
(1,103,462)

85,262
12,590,257
 2019
Total
£
11,677,718
852,546
(572,833)
1,354,491
13,311,922

Unrestricted funds comprise those funds which the charity is free to use in the furtherance of the charity’s principal activities. The Restricted funds are to endow three fellowships at Worcester College; Asa Briggs Humanities Fellowship, the Loevner Tutor & Fellow in Statistics and the David Woods Kemper Family Fellowship in English Literature.

Investments
Current assets
Current liabilities
Total net assets		 Unrestricted
Funds
8,069,272
639,376
(702,583)
8,006,065		 Restricted
Funds
£

4,584,192

400,417

(400,417)

4,584,192		 Endowed
Funds

£

0

0

0

0		 2020
Total

£
12,653,464

1,039,793
(1,103,000)
12,590,257
 2019
Total
£
13,236,777
80,635
(5,490)
13,311,922

11 RELATED PARTIES

During the year the Trust made £1,100,000 (2019: £570,000) in grants to Worcester College, Oxford. During the year a trustee, Mr B Wigmore donated £0 (2019: £580,375).

12 CONTINGENT LIABILITIES

There were no contingent liabilities as at 31 October 2020.

13 CAPITAL COMMITMENTS

There were no capital commitments as at 31 October 2020.

14 POST BALANCE SHEET EVENTS

There are no post balance sheet events to report.

15