## **QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED**
**(A Company Limited by Guarantee) ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
Registered Charity No: 1152032 Registered Company No: 08339899 (England & Wales)
Azets Audit Services Greytown House 221 – 227 High Street Orpington Kent BR6 0NZ
## **QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **CONTENTS**
||**Page**|
|---|---|
|Company Information|1|
|Chairman’s Report|2|
|Report of the Trustees|3|
|Independent Auditor’s Report|8|
|Consolidated Statement of the Financial Activities|11|
|Consolidated and Charity Balance Sheets|13|
|Statement of Consolidated Cash Flows|14|
|Notes to the financial statements|15|
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **COMPANY INFORMATION**
|**Trustees**|M Henderson|
|---|---|
||Prof S Macleod|
||I Maclean MBE|
||Dr N Morgan|
||D Carre|
||J Hosseini (k/a J Smith)|
||P Ting|
||C Satterthwaite CBE|
|**Key management**|D Pocock LVO – CEO|
||Trustees (as above)|
|**Principal Office**|1 Buckingham Place|
||London|
||SW1E 6HR|
|**Registered Charity Number**|1152032|
|**Company Registration Number**|08339899|
|**Independent Auditors**|Azets Audit Services|
||Greytown House|
||221-227 High Street|
||Orpington|
||Kent|
||BR6 0NZ|
|**Solicitors**|Farrer & Co|
||66 Lincoln’s Inn Fields|
||London WC2A 3LH|
|**Investment Portfolio Manager**|Cazenove Capital Management|
||12 Moorgate|
||London|
||ER2R 6DA|
1
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED**
**(Company Limited by Guarantee)**
## **CHAIRMAN’S REPORT**
Despite the on-going challenges of Covid-19, QEST had a strong fundraising performance in terms of restricted income to be spent on grant-giving, receiving pledges of £830,338 in the year, and enabling the charity to grant £444,901, some 51 awards - the largest number in any one year since the charity was formed in 1990. The alumni now total some 650 scholars and apprentices, working across the UK, in a broad range of craft skills, with a significant impact on the creative and craft industries. Crucially, they are also passing on their skills to the next generation, with 72% actively engaged in teaching and training.
This strong performance gives us a firm base on which to build: with the aim of spending £600,000 in 2022 on scholarships and apprenticeships, as well as the Building Arts Programme, the joint initiative with the Prince’s Foundation on a 9-month long programme which explores the interdisciplinary nature of architecture, traditional craft skills and the applied arts, and how these practices and trades inform the built environment. In addition to being able to support more scholars and apprentices, this increased grant-giving will be spent on a new programme we are developing for 2023 focusing on young people and diversity, ensuring that we provide opportunities to inspire, nurture and train future generations of professional craftspeople, whatever their background.
During the year, QEST was unable to deliver the planned Fundraising Dinner due to restrictions arising from the pandemic, which led to an operating deficit of £103,930. However, this gap was partially filled by drawing down £90,000 from the charity’s investment portfolio and which is in line with the trustee’s policy to actively use the investment funds at our disposal in any way that facilitates the sustainability of QEST over the long term.
Whilst the operating income was affected by the Fundraising Dinner not taking place, costs were well-managed on a day-to-day basis, with strong financial controls in place; and the trustees welcomed the appointment of a new Head of Finance in August.
Whilst many live events were not able to take place during the year, we were able to keep in touch with our alumni, supporters and wider networks with a series of virtual activities, exhibitions, talks and webinars across the UK, reinforcing the importance of geographical reach and community.
In 2021, we piloted a new initiative with Cockpit Arts, the studios and business incubation centre for craftspeople, to create a Professional Development Programme for all new Scholars focused on building sustainable businesses. This proved to be hugely successful, and the programme is now fully-funded for three years.
The QEST Award for Excellence winner in 2021 was Annemarie O’Sullivan, basket weaver, sponsored by Thomas Fattorini Ltd. We also announced that three QEST Scholars, Tom Brown and Tom Nicholls of London Stone Carving and Poppy Field had been chosen to create new sculptures of Queen Victoria and Prince Albert and The Queen and The Duke of Edinburgh for niches on the external façade of the Royal Albert Hall, to be unveiled in 2022: a highly appropriate contribution to the Platinum Jubilee year.
On behalf of the trustees, I would like to thank all those who have continued to support QEST through these difficult times. It is very much appreciated and we look forward to reporting on the continuing impact of that support.
**Mark Henderson** _Chairman_
2
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **REPORT OF THE TRUSTEES**
The Trustees, who are also directors for the purposes of company law, present their report and the financial statements of the company for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s trust deed, the Charities Act 2011 and 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 published on 16 July 2014 updated for bulletin 1&2.
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and Aims**
The main objective of the Trust is to support the training and education of talented and aspiring craftspeople in the United Kingdom through traditional college courses, vocational training or one-on-one training with master craftsmen. QEST grants Scholarships and Apprenticeships in a wide variety of skills in both contemporary and traditional crafts, thus sustaining excellence in British craftsmanship.
## **Public Benefit**
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aim and objectives and in planning future activities and setting the grant making policy for the year.
## **Grant making**
The Grant Policy of the Trust is to fund the education and training activities in the field of craftsmanship. Scholarships and Apprenticeships are open to talented craftspeople from across the UK regardless of socio-economic background, age, race, gender, sexual orientation, religion, nationality or disability.
## **STRATEGIC REPORT**
## **ACHIEVEMENTS AND PERFORMANCE**
## **Charitable Activities**
Since 1990 QEST has granted £5.3 million to 650 talented craftspeople in around 130 different skills providing funds for training and education in their chosen craft skill, many of who would have been unable to complete this training due to insufficient finances at a crucial time in their career.
During the year £444,901 (2020: £309,992) of Scholarships and Apprenticeships were awarded.
QEST remains committed to providing this support helping to sustain vital skills in traditional and contemporary crafts; striving to fund those that show the excellence and drive to become leaders in their field. These are just a few of the beneficiaries’ comments:
- Sarah Baldi, QEST William Parker Scholar “This is one of the biggest honours of my life. I am really happy and grateful; I thank you with all my heart. This is a dream that comes true!”
- Rachel Spelling, QEST Sanderson Design Co. Scholar “Having worked alone for many years, I instantly felt the benefits, as much psychological as practical, of being part of the QEST family. The support, the feeling that other people have confidence in, and respect for, my craft, and the opportunity to ask other QEST scholars for practical, informal advice have all had a very positive impact on me and my work.”
- Bex Simon, QEST Howdens Scholar “The Scholarship gave me a broader understanding on how to mix the ancient beauty of Islamic art with traditional blacksmithing techniques and contemporary metalwork design, from which I have developed a body of sculptural wall art and public commissions.”
QEST Enterprises Ltd was incorporated to enable commercial activity in the form of Special Edition Products. These items were produced by companies enabling them to display the QEST logo, in return for a donation and/or percentage of sales to QEST.
3
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
**REPORT OF THE TRUSTEES**
## **FINANCIAL REVIEW**
During the year the group raised funds totalling £1,113,874 (2020: £660,817), expenditure totalled £832,367 (2020: £817,900) with a net gain on investment of £204,468 (2020: £19,154). This resulted in a net surplus of £485,975 (2020: £137,928 deficit).
The Charity raised funds totalling £1,111,273 (2020: £665,030), expenditure totalled £830,461 (2020: £815,951) with a net gain on investment of £204,468 (2020: £19,154 gain). This resulted in a net surplus, after investment gains, of £485,280 (2019: £131,767 deficit).
The wholly owned subsidiary QEST Enterprises Ltd had turnover of £16,164 (2020: £15,512) and expenditure totalled £ 1,906 (2020: £1,949). The gift aid payment paid to QEST during the year totalled £13,563 (2020: £19,725). This resulted in a profit before tax for the year of £695 (2020: £6,162 loss).
The fund balances carried forward for the group at 31 December 2021 were £5,828,095 (2020: £5,342,120).
## **Reserves Policy**
The Charity aims to maintain unrestricted funds in perpetuity and at a level that will provide income for the Charity’s sustainable and long-term future.
Included in designated funds are the fixed assets and the investment funds. The property asset is not available to spend as the Charity operates on its premises and earned rent is used for the operating activities. Designated funds at 31 December 2021 were £4,161,000 (2020: £4,258,000). This decrease is due to £7,000 depreciation on the property asset and the release of part of the investment reserve as set out in note 20.
The Trustees have established a prudent stance of ensuring the investment fund is maintained in perpetuity and at a level that will generate income sufficient to contribute to the ongoing operating and charitable activities. It is the policy of the Charity that unrestricted funds may be made available for any emergency/crisis situation and to support the ongoing Scholarship and Apprenticeship programme at a level equivalent to eighteen months’ operating expenditure excluding events and special project costs being £522,000 (2020: £522,000). Unrestricted funds at 31 December 2021 were £637,037 (2020: £440,194).
Restricted funds at 31 December 2021 were £1,015,784 (2020: £630,347).
QEST Enterprises Ltd non charitable funds at 31 December 2021 were £14,274 (2020: £13,579).
The Reserves Policy will be reviewed on an annual basis.
## **Investment Policy**
The investment fund was managed independently by Cazenove Capital Management throughout the year.
There are no restrictions on the Trust’s power to invest. The overall strategy within which the Fund Manager operates is to maximise total return whilst meeting the income requirements agreed annually with the Trustees. Capital appreciation is expected to be no less, and ideally substantially better, than inflation over the long-term. Asset allocation is agreed during regular meetings between the Finance Sub-Committee and the Fund Manager.
The strategy is reviewed annually with the Fund Manager.
## **Plans for future periods**
The Trust aims to continue to award Scholarships and Apprenticeships in line with the governing documents. The Trustees were mindful of the circumstances and continued impact of the Covid-19 pandemic and this is commented on further in the Going Concern note on pages 6 and 16.
4
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
**REPORT OF THE TRUSTEES**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Document**
The Queen Elizabeth Scholarship Trust (the Trust) is a company limited by guarantee, and not having any share capital. The Charity is governed by its Articles of Association and was incorporated on 21 December 2012. The Articles of Association were updated and approved by the Trustees on 5 May 2020.
The Trust commenced operations on 1 September 2013 when the Queen Elizabeth Scholarship Trust, a registered Charity (No: 0802557), transferred its funds to the Queen Elizabeth Scholarship Trust Limited under a transfer agreement dated 30 July 2013.
## **Trustees of the Charity**
The Directors of the charitable company are its Trustees for the purposes of Charity law. The Trustees who have served during the year and since the year end were as follows:
D Carre M Henderson (Chairman) J Hosseini k/a J Smith I Maclean MBE (Honorary Treasurer) Prof. S Macleod (Deputy Chairman) Dr N Morgan P Ting C Satterthwaite CBE - appointed May 2021
Unless otherwise determined by Ordinary Resolution the maximum number of Trustees shall be twelve and the minimum number shall be seven. A Trustee may not appoint an alternate director or anyone to act on their behalf at meetings of the Trustees.
Any grantee, or senior employee of a Royal Warrant-holding company, or QEST Alumni, who is willing to act as a Trustee, and is permitted by law to do so, may be appointed to be a Trustee:
- by Ordinary Resolution; or
- by a simple majority of all the Trustees entitled to attend and vote at any meeting of the Trustees.
Trustees may from time to time co-opt up to three persons who are not from Royal Warrant-holding companies but who are willing to act as Trustees, and are permitted by law to do so, to be Trustees.
Subject to Articles 24 and 25 of the Articles of Association a Trustee shall hold office until his retirement in accordance with Article 26. A Trustee shall be appointed for a term of three years, at the end of which time they shall retire. A person retiring, or who has retired, from the office of Trustee shall be eligible for re-election. No Trustee shall serve for a period of more than six years save with the unanimous approval of the Trustees, who, in exceptional circumstances, may approve a further extension of up to three years.
Trustees shall meet formally at least three times a year.
5
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
**REPORT OF THE TRUSTEES**
## **Membership**
All Trustees by agreeing to become a Trustee, agree to become a Member of the Charity and accordingly shall be admitted to membership of the Charity on their appointment as Trustee. No-one other than a Trustee shall be admitted to Membership.
Membership is terminated if
- the Member dies or organisation ceases to exist;
- the Member retires by written notice to the Charity provided that after such retirement the number of Members is not less than seven;
- any sum due from the Member to the Charity has been wholly or partly outstanding for at least six months and the Charity serves notice in writing on the Member terminating the membership.
- the Member is removed from membership by a resolution of the Trustees that it is in the best interest of the Charity that their membership is terminated.
- In the case of a Trustee of the Charity, the Member ceases to be a Trustee.
## **Key management personnel remuneration**
The Trustees consider the board of Trustees and the CEO as comprising the key management personnel of the Charity in charge of directing and controlling the Charity and running and operating the Charity on a day to day basis. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in notes 11 & 23 to the accounts.
Trustees are required to disclose all relevant interests and register them with the CEO and in accordance with the Trust’s policy; and withdraw from decisions where a conflict of interest arises.
The pay of the Charity’s CEO is reviewed annually and normally increased in accordance with average earnings. The remuneration is also bench-marked with grant-making charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.
## **Risk Management**
The Trustees have considered the risks faced by the Charity and have put in place systems to manage them, which they monitor. In addition, the CEO (with the Finance Sub-committee) undertakes an annual risk assessment (and review of the Risk Register) and presents this for consideration to the Trustees following which the Charity amends systems/processes as necessary. The Trustees also undertook a review against the seven key principles of the Charity Governance Code; and which will be reviewed annually.
The Trustees consider the following to be the principal risks that the Charity faces:
- Major loss of income from donors or investments – risk mitigated by maintaining good donor stewardship and due diligence of new donors; developing and building an effective fundraising plan; regularly reviewing the investment strategy and monitoring of finances.
- Reputational damage – risk mitigated by a comprehensive communications plan both internally and externally; maintaining good working relationships with all appropriate parties
## **Going Concern**
The financial statements have been prepared on a going concern basis. At the beginning of 2021, the Trustees recognised the continued uncertainties around the Covid-19 pandemic which could have affected the value of the Charity’s assets, its ability to raise funds and, therefore, its ability to make award, and had appropriate measures in place to mitigate these concerns. The Trustees considered the level of funds held; the expected level of income and expenditure for 12 months prior to authorising these financial statements. They consider that with the level of reserves, and with strong fundraising, the Charity is able to continue as a going concern.
6
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **REPORT OF THE TRUSTEES**
## **STATEMENT OF TRUSTEES RESPONSIBILITIES**
The Trustees (who are also directors of the Queen Elizabeth Scholarship Trust Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS 102) ;
- make judgements and 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 charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
Approved by the Board and signed on their behalf:
**M Henderson Chairman**
Date: 16th March 2022
7
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS REPORT TO THE MEMBERS**
## **Opinion**
We have audited the financial statements of Queen Elizabeth Scholarship Trust Limited (the ‘parent charitable company’) and its subsidiaries (the ‘Group’) for the year ended 31 December 2021 which comprise the Group Statement of Financial Activities, including the Group Summary Income and Expenditure Account, the Group and Charity Balance Sheets, 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).
In our opinion the financial statements:
- give a true and fair view of the state of the Group and parent charitable company’s affairs as at 31 December 2021, and of the Group’s 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.
## **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 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 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**
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 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 other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
8
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS REPORT TO THE MEMBERS**
## **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 and Strategic Report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees’ report has been prepared in accordance with applicable legal requirements.
## **Matters on Which we are Required to Report by Exception**
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 Trustees’ 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, 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 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 Trustees’ responsibilities statement set out on page 7, 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 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 group and 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 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
9
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **INDEPENDENT AUDITORS REPORT TO THE MEMBERS**
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
- Reviewing the reports of any regulatory inspections carried out in the year;
- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
- Reviewing minutes of meetings of those charged with governance;
- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and- guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for- audit.aspx.
This description forms part of our auditor’s report.
## **Use of our Report**
This report is made solely to the Group and 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.
**Michelle Wilkes** (Senior Statutory Auditor) for and on behalf of Azets Audit Services Statutory Auditor Greytown House 221-227 High Street Orpington Kent BR6 0NZ
Date: 1 April 2022
10
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED**
## **(Company Limited by Guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES**
## **YEAR ENDED 31 DECEMBER 2021**
|**Note**
**Unrestricted**
**funds**
**Restricted**
**Fund**
**£**
**£**
**Income from:**
Donations
2
70,499
830,338
Investments
3
196,873
-
Other trading activities
4
16,164
-
Other income
-
-
**Total income**
283,536
830,338
**Expenditure on:**
Raising funds
6
201,134
-
Charitable activities
7
184,426
444,901
Trading operations
4
1,906
-
**Total expenditure**
5
387,466
444,901
**Net income/(expenditure) and net**
**movement in funds before gains and**
**losses on investments**
(103,930)
385,437
Net gains on investments
14
204,468
-
**Net movement in funds**
100,538
385,437
Total funds at 1 January 2021
4,711,773
630,347
**Total funds at 31 December 2021**
4,812,311
1,015,784
|**Total**
**2021**
**£**
900,837
196,873
16,164
-
1,113,874
201,134
629,327
1,906
832,367
281,507
204,468
485,975
5,342,120
5,828,095
|**Total**
**2020**
**£**
424,063
216,971
15,512
4,271|
|---|---|---|
|||660,817|
|||211,560
604,391
1,949|
|||817,900|
|||(157,083)
19,154|
|||(137,928)
5,480,049|
|||5,342,120
|
All transactions are derived from continuing activities.
All recognised gains and losses are included in the Statement of Financial Activities.
11
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED**
## **(Company Limited by Guarantee)**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES**
## **YEAR ENDED 31 DECEMBER 2021**
|**Comparative year information**||**Unrestricted**|**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|---|
|**Year ended 31 December 2020**|
**Note**|**funds**||**Fund**|**2020**|
|||**£**||**£**|**£**|
|**Income from:**||||||
|Donations|2||52,687|371,376|424,063|
|Investments|3||216,971|-|216,971|
|Other trading activities|4||15,512|-|15,512|
|Other income|||4,271|-
|4,271|
|**Total income**|||289,441|371,376
|660,817|
|**Expenditure on:**||||||
|Raising funds|6||211,560|-|211,560|
|Charitable activities|7||318,815|285,576|604,391|
|Trading operations|4||1,949|-
|1,949|
|**Total expenditure**|5||532,324|285,576
|817,900|
|**Net expenditure and net movement in funds**
**before gains and losses on investments**||(242,883)||85,800|(157,083)|
|Net gains / (losses) on investments|14||19,154|-
|19,154|
|**Net movement in funds**||(223,729)||85,800|(137,928)|
|Total funds at 1 January 2020||4,935,502||544,547
|5,480,049|
|**Total funds at 31 December 2020**||||||
|||4,711,773||630,347|5,342,120|
|||____________||____________|____________|
12
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **CONSOLIDATED BALANCE SHEET**
## **AS AT 31 DECEMBER 2021**
|**REGISTERED COMPANY NUMBER: 08339899**
**Group**
**Group**
**Charity**
**2021**
**2020**
**2021**
**Notes**
**£**
**£**
**£**
**Fixed assets**
Tangible assets
13
2,751,000
2,758,000
2,751,000
Investments
14
2,467,475
2,344,370
2,467,476
_____________
_____________
_____________
**Current assets**
5,218,475
5,102,370
5,218,476
Debtors
15
553,136
299,644
551,411
Cash at bank and in hand
798,199
626,321
796,591
_____________
_____________
_____________
1,351,335
925,965
1,348,002
**Creditors:**Amounts falling
due within one year
16
(741,715)
(686,215)
(752,657)
____________
____________
_____________
**Net current assets**
609,620
239,750
595,345
_____________
_____________
_____________
**Net assets**
5,828,095
5,342,120
5,813,821
_____________
_____________
_____________
**Funds**
Designated funds
20
4,161,000
4,258,000
4,161,000
Unrestricted funds
637,037
440,194
637,037
Restricted funds
19
1,015,784
630,347
1,015,784
Non-charitable funds
14,274
13,579
-
_____________
_____________
_____________
21
5,828,095
5,342,120
5,813,821
|
|**Charity**
**2020**
**£**
2,758,000
2,344,371
_____________
5,102,371
298,506
609,911
_____________
908,417
(682,247)
_____________
226,170
_____________
5,328,541
|
|---|---|---|
||
|_____________
4,258,000
440,194
630,347
-
_____________
5,328,541
|
Approved by the Board of Trustees on 16th March 2022 and signed on their behalf by:
**M Henderson Chairman**
**I Maclean MBE Treasurer**
13
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **STATEMENT OF CONSOLIDATED CASH FLOWS**
## **YEAR ENDED 31 DECEMBER 2021**
|**Notes**
**Cash flow from operating activities**
24
**Net cash flow from operating activities**
**Cash flow from investing activities**
Payments to acquire investments
Receipts from sales of investments
Decrease/(increase) in cash held for investments
Interest received
Dividends received
Rents received from investment properties
**Net cash flow from investing activities**
**Net increase in cash and cash equivalents**
**Cash and cash equivalents at 1 January 2021**
**Cash and cash equivalents at 31 December 2021**
**Cash and cash equivalents consist of:**
Cash at bank and in hand
**Cash and cash equivalents at 31 December 2021**|**Group**
**2021**
**£**
(106,358)
________________
(106,358)
________________
(1,035,960)
1,056,222
61,101
67
26,806
170,000
________________
278,236
________________
171,878
626,321
________________
798,199
_______________
798,199
________________
798,199
|**Group**
**2020**
**£**
12,274
________________
12,274
________________
(1,310,905)
1,458,317
(87,217)
616
46,356
170,000
________________
277,167
________________
289,441
336,880
________________
626,321|
|---|---|---|
|||_______________
626,321
________________
626,321
|
14
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES**
## **1.1** _**Basis of Accounting and Preparation**_
The Queen Elizabeth Scholarship Trust Limited is governed under its Memorandum and Articles of Association dated 21 December 2012 (updated in May 2020). The address of the principal office is given in the information on page 1 of these financial statements. The nature of the Charity’s operations and principal activities are set out on page 2.
The Charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared 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), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015, updated for bulletin 1.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the Charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **1.2** _**Group financial statements**_
The financial statements consolidate the results of the Charity and its wholly owned subsidiary QEST Enterprises Ltd on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the Charity has not been presented because the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
## **1.3**
## _**Income**_
All income is included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.
For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the Charity’s right to receive payment is established.
## **1.4**
## _**Expenditure**_
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Costs of raising funds includes the cost of publicising the Charity to obtain applications for future Scholarships and Apprenticeships.
- Expenditure on charitable activities includes the Scholarships and Apprenticeships awarded to individuals.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the Charity.
15
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
## _**1.5 Support costs allocation**_
Support costs are those that assist the work of the Charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the Charity and include project management carried out at Headquarters. Where support costs cannot be directly attributed to particular headings, they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
The analysis of these costs is included in note 5.
## **1.6** _**Funds**_
Unrestricted funds are those funds which can be used at the discretion of the Trustees in accordance with the charitable objectives.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund.
## **1.7** _**Tangible Fixed Assets and Depreciation**_
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is charged on a straight-line basis as follows:
Property – 1% straight line Land – no depreciation
## **1.8** _**Fixed Asset Investments**_
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
## **1.9** _**Debtors and creditors receivable / payable within one year**_
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **1.10** _**Taxation**_
The company is a registered Charity and is therefore entitled to the exemptions from corporation tax afforded by section 505 of the Income and Corporation Taxes Act 1988. Accordingly, there is no corporation tax charge in these financial statements.
## **1.11**
## _**Going Concern**_
The financial statements have been prepared on a going concern basis as the Trustees believe that the Charity is relatively well-placed to weather any on-going impact of the pandemic (if any). The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern.
16
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
## **1.12** _**Judgements and key sources of estimation uncertainty**_
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:
## _Useful economic lives of tangible assets_
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the tangible fixed assets and note 1.7 for the useful economic lives for each class of assets.
## _Bad debts_
Trade debtors are regularly reviewed for recoverability, any debts which in the opinion of management are not recoverable are provided for as a specific bad debt.
There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
## **2. DONATIONS**
|**Unrestricted**
**funds**
**£**
Donations
48,619
Gift aid
495
QEST magazine donations
10,800
Scholarship pledges
-
Cockpit Arts/QEST Professional
Development Programme
-
Other events income
5,395
Book income
5,190
_______________
70,499
|**Restricted**
**fund**
**£**
-
-
-
815,338
15,000
-
-
_______________
830,338
|**2021**
**£**
48,619
495
10,800
815,338
15,000
5,395
5,190
_______________
900,837
|**2020**
**£**
44,594
-
2,500
371,376
-
5,593
-
_______________
424,063
|
|---|---|---|---|
## **3. INVESTMENT INCOME**
|**Unrestricted**
**funds**
**£**
Income from property
170,000
Income from investments
26,806
Bank interest receivable
67
_______________
196,873
|**Restricted**
**fund**
**£**
-
-
-
_______________
-
|**2021**
**£**
170,000
26,806
67
_______________
196,873
|**2020**
**£**
170,000
46,356
615
_______________
216,971
|
|---|---|---|---|
17
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
## **4. TRADING ACTIVITIES**
## **SUBSIDIARY RESULTS**
The wholly owned trading subsidiary QEST Enterprises Ltd is incorporated in the United Kingdom (company number 07801254) and pays all of its profits to the Charity under the gift aid scheme. A summary of the trading results is shown below.
## **5.**
|**Summary profit and loss account**
Turnover
Cost of sales and administration costs and donations
Net Profit
Amount Gift aided to the Charity
Corporation Tax
Net (loss)/profit for the year
**Summary balance sheet**
Debtors
Cash at bank
Current assets
Current liabilities - Creditors
Total net assets
Share capital
Retained earnings
Aggregate share capital and reserves
**ANALYSIS OF EXPENDITURE**
Raising funds (note 6)
Charitable activities (notes 7&8)
Trading operations
**Total expenditure**|**Staff**
**costs**
**£**
67,394
157,369
-
___________
224,763|**Direct**
**costs**
**£**
74,763
444,901
1,906
__________
521,570|**2021**
**£**
16,164
(1,906)
_______________
14,258
(13,563)
-
_______________
695
_______________
14,498
1,606
_______________
16,104
(1,830)
_______________
14,275
_______________
1
14,274
_______________
14,275
_______________
**Support**
**Total**
**costs**
**2021**
**£**
**£**
58,977
201,134
27,057
629,327
-
1,906
__________
**__________**
86,034
832,367|**2021**
**£**
16,164
(1,906)
_______________
14,258
(13,563)
-
_______________
695
_______________
14,498
1,606
_______________
16,104
(1,830)
_______________
14,275
_______________
1
14,274
_______________
14,275
_______________
**Support**
**Total**
**costs**
**2021**
**£**
**£**
58,977
201,134
27,057
629,327
-
1,906
__________
**__________**
86,034
832,367|____
____
|**2020**
**£**
15,512
(1,949)
___________
13,563
(19,725)
-
___________
(6,162)
___________
4,889
16,410
___________
21,299
(7,719)
___________
13,580
___________
1
13,579
___________
13,580
___________
**Total**
**2020**
**£**
211,560
604,391
1,949
__________
817,900|
|---|---|---|---|---|---|---|
||||||____
____
____
||
||||||____
____
||
||||||____||
|||||201,134|||
|||||629,327
1,906
**__________**
832,367|||
Support costs have been allocated on the basis of staff time.
18
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED**
**(Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
## **6. RAISING FUNDS**
|**Events**
Other event costs
**General Fundraising**
Magazine costs
30THAnniversary costs – Commemorative Publication
Excellence award
Investment management fees
Project development/Marketing
**Other**
Staff cost allocation
Support cost allocation|**2021**
**£**
-
_____________
-
_____________
33,365
-
-
17,129
24,269
_____________
74,763
_____________
67,394
58,977
_____________
126,371
_____________
201,134
**_____________**|**2020**
**£**
12,950
_____________
12,950
_____________
11,645
27,040
1,000
16,296
12,915
_____________
68,895
_____________
60,000
69,715
_____________
129,715
_____________
211,560
**_____________**|
|---|---|---|
Due to the on-going pandemic, we were not able to hold a full-scale fundraising dinner in 2021, but this will, hopefully, take place in 2022.
## **7.**
|**CHARITABLE ACTIVITIES**
Scholarships awarded
Apprenticeships awarded
Prince’s Foundation/QEST Building Arts Programme
Queen’s Bindery Apprenticeship
Cockpit Arts/QEST Professional Development Programme (restricted)
Staff cost allocation
Support cost allocation|**2021**
**£**
342,501
92,000
-
-
10,400
157,369
27,057
__________
629,327
|**2020**
**£**
241,492
68,500
86,306
24,000
-
140,106
43,987
__________
690,599
|
|---|---|---|
19
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
## **8. APPRENTICESHIPS AND SCHOLARSHIPS TO INDIVIDUALS**
During the year Scholarships were awarded to the following individuals:
|**Scholar**
**Craft**
Abby Hobbs
Children's Book Illustration
Abigail Carter
Hand Embroidery
Andrew Braund
Arms & Armour Conservation
Attilio Medda
Calligraphy & Heraldic Art
Bethan Wyn Williams
Textiles & Design
Carolyn Truss
Saddle & Harness Making
Charlie Calder-Potts
Painting
Christian Mueller
Luthiery
Daniel Freyne
Metal Art
Deborah Wilding
Hand Embroidery
Dora Lam
Contemporary Art
Estella Castle
Straw Work
Felicity Bristow
Bookbinding
Gold Maria Akanbi
Fine Art: Multidisciplinary
Isabelle Davies
Stained Glass & Glass Conservation
Isidoro Rodriguez
Ceramics
Jacqui Ramrayka
Ceramics
Joseph Stokes
Sculpture & Stonemasonry
Kate Rochester
Bookbinding
Kieren Berry
Hand Papermaking
Kurtis Scott
Luthiery
Laura Thomas
Textile Dying (top up)
Lucy May Schofield
Paper Artistry & Printmaking
Mandy Coppes-Martin
Paper Artistry & Lace Making
Mariam Syed
Textile Design
Nico Conti
Ceramics & 3D Printing
Oliver Hymans
Puppet Making
Phyllis Smith
Decorative & Mural Artistry
Rachael Clunie
Millinery
Rachael Colley
Silversmithing & Jewellery
Rauni Higson
Silversmithing
River Jean Nash
Artistic Wood Based Fabrication
Robert Walker
Sign Writing
Rosie Haine
Lithography and Illustration
Sam Laing
Musical Instrument Making
Samantha Wilson
Figurative Art
Susannah Weiland
Hand Embroidery
Suzanna James
Knitted Textiles
Terry Mann
Musical Instrument Making
Valerie Wartelle
Wet Felting
Vicky Price
Printmaking
Virna Pasquinelli
Millinery
Yeena Yoon
Jewellry Design|**Award**
**£**
11,800
13,000
8,860
13,500
1,282
3,385
2,936
6,540
10,400
14,000
9,750
4,169
10,625
13,600
2,640
5,000
14,625
8,000
7,200
12,550
12,000
696
10,108
4,506
6,925
5,000
5,000
14,000
2,000
7,917
11,670
12,300
5,700
3,500
10,425
14,000
4,626
9,750
1,960
3,400
3,680
7,476
12,000
_____________
342,501
**_____________**|
|---|---|
20
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
## **8. APPRENTICESHIPS AND SCHOLARSHIPS TO INDIVIDUALS**
During the year Apprenticeships were awarded to the following individuals:
|**Apprentice**
**Craft**
Alistair Lewis
Horology
Billy Cave
Ceramics
Ethan Coulton
Bee Farming
Grant Nelson
Farriery
Jack Richardson
Thatching
James Eaton
Stonework
Liam Cartmel-Walker
Slate Masonry
Mark Robinson
See below *
Marlene lagnado
Stonemasonry
William Rapley
Glasswork
Apprenticeship incomplete
**SUPPORT COSTS**
Office, travel & sundry
Website & database costs
PR consultancy
Accountancy
Bank charges
Governance costs (note 10)
Depreciation
Staff training
Recruitment
Executive expenses
Trading operation
Other costs
**GOVERNANCE COSTS**
Auditor’s remuneration
- Audit
- Other services
Trustee expenses
Legal costs|**Award**
**£**
9,000
9,000
12,000
12,000
12,000
6,000
12,000
(4,000)
12,000
12,000
_________
92,000
**_________**
**2021**
**2020**
**£**
**£**
6,986
10,119
19,866
25,947
-
15
17,602
31,074
198
1
15,286
25,148
7,000
7,000
2,145
1,556
5,462
-
2,154
-
1,906
1,949
7,429
12,842
_________
_________
86,034
115,651
**_________**
**_________**
**2021**
**2020**
**£**
**£**
8,955
8,925
660
453
532
5,139
1,000
14,770
_________
_________
15,286
25,148
**_________**
**_________**|**Award**
**£**
9,000
9,000
12,000
12,000
12,000
6,000
12,000
(4,000)
12,000
12,000
_________
92,000|
|---|---|---|
|||**_________**
**2020**
**£**
8,925
453
1,000
14,770
_________
25,148
**_________**|
*Apprenticeship incomplete
## **9.**
## **10.**
## **11. TRUSTEES' AND KEY MANAGEMENT PERSONNEL REMUNERATION AND EXPENSES**
The Trustees did not receive any remuneration during the year (2020: £nil). Three Trustees incurred expenses during the year of £522 (2020: £1,000 to three) for travelling, training, and subsistence.
The total amount of employee benefits received by key management personnel is £54,533 (2020: £48,870). The Trust considers its key management personnel to comprise those individuals listed on page 1.
21
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED**
**(Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
|**12.**
**STAFF COSTS AND EMPLOYEE BENEFITS**
Wages and salaries
Social security
Defined contribution pension costs|**2021**
**£**
204,641
15,043
5,079
_____________
224,763
**_____________**|**2020**
**£**
188,710
8,009
3,387
_____________
200,106
**_____________**|
|---|---|---|
The average number of employees, by headcount, during the year was 7 (2020: 5).
No employee received remuneration of more than £60,000 during the year £Nil (2020: £nil), from the Charity, during the year.
|**TANGIBLE FIXED ASSETS**
**GROUP AND CHARITY**
**Cost**
At 1 January 2021 and 31 December 2021
**Depreciation**
At 1 January 2021
Charge for year
At 31 December 2021
**Net Book Value**
At 31 December 2021
At 31 December 2020|**Freehold**
**Land and**
**Property**
**£**
2,800,000
_______________
42,000
7,000
_______________
49,000
_______________
2,751,000
_______________
2,758,000
|
|---|---|
## **13. TANGIBLE FIXED ASSETS**
The property is disclosed as a tangible fixed asset as the building has mixed usage as office space for the Trust and rental income received from the Royal Warrant Holders Association in relation to the remaining office space. The Royal Warrant Holders Association is considered to be a related party of the Trust and hence classified as a fixed asset of the Trust. The rental agreement is considered to be at arm's length. The Trustees have not valued the components of the mixed used assets as they feel the cost of acquiring an accurate valuation are disproportional to the value this would add to the accounts.
## **14.**
## **INVESTMENTS**
|**INVESTMENTS**
**GROUP**
**Market Value**
At 1 January 2021
Additions
Disposals
Realised/Unrealised gains / (losses)
Funds before cash
Cash for reinvestment
At 31 December 2021
**Historical cost**|**2021**
**£**
2,344,370
1,035,960
(1,160,806)
204,468
_______________
2,423,992
43,483
_______________
2,467,475
_______________
2,116,394
|**2020**
**£**
2,385,412
1,310,905
(1,475,685)
19,154
_______________
2,239,786
104,584
_______________
2,344,370
_______________
2,079,223
|
|---|---|---|
22
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED**
**(Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
|**14.**
**INVESTMENTS - continued**
**GROUP**
**Investments at fair value comprise**
Equities
Bonds
Multi-Asset Funds
Alternatives
UK cash held as part of Portfolio|**2021**
**£**
1,885,105
266,081
42,597
230,209
43,483
_______________
2,467,475
_______________|**2020**
**£**
1,708,429
269,207
76,303
185,847
104,585
_______________
2,344,371
_______________|
|---|---|---|
All investments are carried at their fair value. Investments in equities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
Investments individually representing greater than 5% of the portfolio held are:
|Fidelity GI Dividend –W-GBP-Inc
Schroder Global Sustainable
iShares physical Gold
Polar UK Value Opportunities Fund
HSBC FTSE All-World Index Fund|**2021**
**£**
157,271
229,622
108,339
145,253
176,490
|**2020**
**£**
206,332
192,337
110,788
121,673
229,452
|
|---|---|---|
## **CHARITY**
The charities investments are as above plus £1 representing the share in the wholly owned subsidiary QEST Enterprises Ltd.
|**15.**
**DEBTORS**
Trade debtors
Amounts due from QEST Enterprises Limited
Other debtor
Apprenticeship & scholarship debtors
Prepayments and accrued income|**Group**
**2021**
**£**
73,250
-
-
470,112
9,774
______________
553,136
|**Group**
**2020**
**£**
15,140
-
2,562
274,712
7,230
______________
299,644
|**Charity**
**2021**
**£**
71,525
-
-
470,112
9,774
_____________
551,411
|**Charity**
**2020**
**£**
10,250
3,751
2,562
274,713
7,230
_____________
298,506
|
|---|---|---|---|---|
23
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED**
## **(Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
|**16.**
**CREDITORS: Amounts falling due within one**
**year**
**Group**
**2021**
**£**
Trade creditors
3,005
Amounts due to QEST Enterprises Limited
-
Other taxes and social security
15,297
Apprenticeship & scholarship creditors (note 17)
500,666
Accruals and deferred income
222,747
___________
741,715
___________
**17.**
**APPRENTICESHIP & SCHOLARSHIP CREDITORS**
At 1 January 2021
New scholarship and apprenticeship grants committed (note 8)
Scholarship grants paid in year
At 31 December 2021
**18.**
**DEFERRED INCOME**
At 1 January 2021
Additions during the year
Amounts released to income
At 31 December 2021|**Group**
**2020**
**£**
3,852
-
13,669
417,692
251,002
___________
686,215
___________
|_|**Charity**
**Charity**
**2021**
**2020**
**£**
**£**
3,005
3,852
12,774
-
15,254
10,964
500,666
417,692
220,958
249,739
____________
_____________
752,657
682,247
____________
_____________
**Group & Charity**
**2021**
**2020**
**£**
**£**
417,692
423,077
434,501
309,992
(351,527)
(315,377)
_____________
_____________
500,666
417,692
______ ______
______ ______
**Group & Charity**
**2021**
**2020**
**£**
**£**
208,780
-
-
208,780
(280)
-
_____________
_______________
208,500
208,780
|
|---|---|---|---|
|||_
__
||
## **19. RESTRICTED FUND**
|**As at 1**
**January 2021**
**Current Year**
**£**
Apprenticeship & Scholarship fund
630,347
Cockpit Arts/QEST professional development
programme
-
______________
630,347
|**Income**
**Expenditure**
**As at 31**
**December 2021**
**£**
**£**
**£**
815,338
(434,501)
1,011,184
15,000
(10,400)
4,600
__________
_____________
_____________
830,338
(444,901)
1,015,784
|
|---|---|
Apprenticeship & Scholarship fund – these funds are used to meet scholarship and apprentice grant applications.
Cockpit Arts/QEST professional development programme provided to all new Scholars – fully funded by a donor until 2023.
24
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED**
**(Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
|**19.**|**RESTRICTED FUND - continued**|**RESTRICTED FUND - continued**||||||
|---|---|---|---|---|---|---|---|
||||**As at 1**||||**As at 31**|
||||**January 2020**||**Income**|**Expenditure**|**December 2020**|
||**Prior Year**||**£**||**£**|**£**|**£**|
||Apprenticeship & Scholarship fund||544,547||371,376|(285,576)|630,347|
|||||||||
||||_____________|____________||_______________|___________|
|**20.**|**DESIGNATED FUND**|||||||
|||**As at 1 January**||**New**||**Designations**|**As at 31**|
|||**2021**|**Designations**|||**Released**|**December 2021**|
||**Current Year**|**£**||**£**||**£**|**£**|
||Fixed asset fund|2,758,000|||-|(7,000)|2,751,000|
||Investment fund|1,500,000|||-|(90,000)|1,410,000|
|||___________|_____________|||_____________|___________|
|||4,258,000|||-|(97,000)|4,161,000|
|||___________|_____________|||_____________|___________|
Fixed asset fund – this fund holds the freehold property which is used as the main premises of the Charity and for income generation.
Investment fund – these funds are invested to maximise total return and generate income. Funds were released in the year in line with the trustee’s policy to actively use the investment funds at their disposal in any way that facilitates the sustainability of QEST over the long term
||**As at 1 January**|**New**|**Designations**|**As at 31**|
|---|---|---|---|---|
||**2020**|**Designations**|**Released**|**December 2020**|
|**Prior Year**|**£**|**£**|**£**|**£**|
|Fixed asset fund|2,765,000|-|(7,000)|2,758,000|
|Investment fund|1,600,000|10,306|(110,306)|1,500,000|
|Special Project fund|1,854|-|(1,854)|-|
||___________|_____________|_____________|___________|
||4,366,854|10,306|(117,306)|4,258,000|
||___________|_____________|_____________|___________|
## **21. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
||**Unrestricted**|**Restricted**|**Designated**|**Total**|
|---|---|---|---|---|
||**funds**|**funds**|**funds**|**Funds**|
||**2021**|**2021**|**2021**|**2021**|
|**Current Year**|**£**|**£**|**£**|**£**|
|Fixed assets|1,057,475|-|4,161,000|5,218,475|
|Current assets/liabilities|(406,164)|1,015,384|-|609,620|
||___________|___________|____________|___________|
|Total|651,311
___________|1,015,384
___________|4,161,000
____________|5,828,095
___________|
25
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
## **21. ANALYSIS OF NET ASSETS BETWEEN**
## **FUNDS - continued**
|**FUNDS - continued**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Designated**|**Total**|
||**funds**|**funds**|**funds**|**Funds**|
||**2020**|**2020**|**2020**|**2020**|
|**Prior Year**|**£**|**£**|**£**|**£**|
|Fixed assets|844,370|-|4,258,000|5,102,370|
|Current assets/liabilities|(390,597)|630,347|-|239,750|
||___________|___________|____________|___________|
|Total|453,773
___________|630,347
___________|4,258,000
____________|5,342,120
___________|
## **22. COMPANY LIMITED BY GUARANTEE**
The Trust is a company limited by guarantee and therefore has no share capital. The liability of the guarantors, who are the members is limited to £1 each.
## **23. RELATED PARTY TRANSACTIONS**
The Trust owns property and granted a head lease to The Royal Warrant Holders Association for 10 years until March 2023 at a rate of £170,000 per annum.
The Royal Warrant Holders Association provides various office supplies and equipment to the Trust free of charge. It has not been possible to quantify the value of these supplies at present; however it is under review.
The Royal Warrant Holders Associations made donations of £20,000 (2020: £20,000).
The Royal Warrant Holders Association owes the Trust £NIL (2020: £2,562 owed by the Trust) at the year end in relation to various recharges.
QEST Enterprise Limited, the 100% owned subsidiary, is owed by the Trust £12,774 (2020: owed the Trust £17,314) at the year end in relation to expenditure incurred by the trust on behalf of QEST Enterprise Limited. QEST Enterprises Limited made donations totalling £13,563 (2020: £19,725) to QEST during the year.
## **24. RECONCILIATION OF NET INCOME / (EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES**
||**Group**|**Group**|
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Net surplus/(deficit) for 31 December 2021|485,975|(137,928)|
|Dividends received|(26,806)|(46,356)|
|Rents received from investment properties|(170,000)|(170,000)|
|Bank interest|(67)|(616)|
|Depreciation of tangible fixed assets|7,000|7,000|
|Net (gains) on investments|(204,468)|(19,154)|
|(Increase)/decrease in debtors|(253,492)|150,690|
|Increase in creditors|55,500|228,683|
||___________|___________|
|Net cash flow from operating activities|(106,358)
**____________**|12,274
**____________**|
26
**QUEEN ELIZABETH SCHOLARSHIP TRUST LIMITED (Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2021**
## **25. CONTINGENT LIABILITY**
In 2018 the Charity received underwriting of £100,000 towards the costs of the book project this income is included in donations. This is to be repaid from the proceeds of future book sales. The balance at the end of 2021 is £94,539 (2020: £95,784).
27