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2021-12-31-accounts

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31st DECEMBER 2021

incorporating

The Framlingham College Improvement Fund The Moreau Benevolent Fund Old Framlinghamian Scholarship Fund The Wallace Scholarship Fund The Alfred Pretty Memorial Fund The Mawby Memorial Fund

Charity Registration No. 1158435

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

CONTENTS

Page
Legal and Administrative Information 2
Trustees’ Report 3-7
Statement of Financial Activities 8
Balance Sheet 9
Cash Flow Statement 10-11
Notes to the Financial Statements 12-27
Report of the Independent Examiner 28

1

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

Legal and Administrative Information

CHARITY STATUS

The Society of Old Framlinghamians Charitable Trust was created by a Trust Deed dated the 3rd June 2014 and registered under the Charities Act 1990 ( Registered Number 1158435 ). The Charity Commission was then requested to transfer the link of the Society’s other restricted funds from the Albert Memorial College (known as Framlingham College) to the new charity, which they did with effect from the 17th December 2014.

The charity is a ‘Small Charity’ as defined by the Charity Commission and the Trustees have taken advantage of the limited reporting requirements.

TRUSTEES

The trustees who served during the year were

C R Essex Third term to 31st March 2022 M D Smy Second term to 31st March 2022 P C Howard-Dobson Second term to 20th April 2025 A C Henney First term to 10th May 2023

ADMINISTRATIVE OFFICES

Trustees: 12 Woodditton Road Newmarket Suffolk CB8 9BQ

BANKERS INVESTMENT ADVISERS

HSBC Bank plc 12 Tavern Street Ipswich Suffolk IP1 3AZ

Investec Wealth Management Limited 30 Gresham Street London EC2V 7QN

INDEPENDENT EXAMINERS

Ensors Accountants LLP Connexions 159 Princes Street Ipswich Suffolk IP1 1QJ

2

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

Trustees’ Report

The Trustees have pleasure in presenting their report and financial statements for the year ended 31st December 2021.

TRUSTEES

The Trustees of the Charity who served throughout the year are listed on page 2. As from 21st April 2017 when the founding deed was amended the Trustees, who shall normally be those individuals acting as trustees for the time being of the Society of Old Framlinghamians, are appointed for a term of four years with provision for re-appointment by the remaining Trustees for a further four year term. After a Trustee has served two consecutive terms in office, (s)he shall be eligible for re-appointment only after a year has elapsed since (s)he retired as a Trustee, unless the other Trustees consider it would be in the best interests of the charity for a Trustee to be eligible for re-appointment on the retirement date for such number of further terms as the Trustees shall resolve.

OBJECTS

The objects of the charity are:

any other charitable means deemed appropriate by the Trustees

In addition the Trustees are responsible for a number of legacy funds. These are

These funds provide scholarships to both pupils at and leavers from the College.

Provides a prize to a member of the College who has rendered good service.

Provides prizes for promising scholars in languages, particularly modern languages

3

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

Trustees’ Report - continued

OBJECTS - continued

Provides for the welfare of past and present members of the College and their families.

A further fund was established by the Trustees following a generous donation in the memory of Neville Bromage, a distinguished, former pupil and trustee.

(8) Bromage Fund

Provides prizes for sporting excellence to members of the College and bursaries for sporting activities to current and former students.

NB For the avoidance of doubt, the use of the word ‘College’ above covers both Framlingham College at Framlingham and the Framlingham College Prep School at Brandeston.

STATEMENT OF PUBLIC BENEFIT

The public benefits derived from the above objectives are:-

4

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

Trustees’ Report - continued

STATEMENT OF PUBLIC BENEFIT – continued

The Trustees in taking their charitable duties have had regard to the Charity Commission’s public benefit guidance. Details of awards made during the year can be found under the heading of Grants and Awards.

No harm has been identified as arising from the above objects; nor has any private benefit.

REVIEW OF THE YEAR

Covid 19 has continued to cast a shadow over the activities of the Charity, but despite this, we were able to provide significant support to the College.

As reported last year, the Trustees have had discussions with the College as to how the charity could best provide it with support. These coalesced around the College’s Vision 2025 programme, a principal aim of which is to fund bursaries for pupils who would not otherwise be able to attend the College. To augment the available funds, the Trustees asked the SOF for their support and at the Council meeting on 26th January 2021 approval was given for a payment of £300,000 to the Charity; £109,740 of this was a donation and £190,260 was provided under the loan facility negotiated in 2016.

Accounts

The Statement of Financial Activities ( SOFA ) at first glance looks alarming this year with a deficit of £254,385 in the restricted income fund and an overall deficit of £84,251 after taking account of expendable endowment. However, the deficit is covered by the long term loan from the Society of Old Framlinghamians ( SOF ) so the Trustees have no concern for the future of the charity. Furthermore the loan agreement permits annual repayments to be varied depending on the level of income in the year.

Donations were up considerably at £120,736 as a result of the Society’s enhanced contribution. On the other hand, donations from members continue to decline as time takes its toll. These now stand at £4,046 compared to £4,210 last year.

Investment income showed a modest gain from £2,299 to £2,328 and this was despite bank interest rates collapsing and company dividends being cut back because of covid.

Alas, the significant figure of £68,094 in the SOFA this year under the heading of ‘Other Income’ is not from some new, lucrative source of funding. As disclosed in Note 3, it is ‘finance income arising from a concessionary loan’. Because the latest loan tranche is interest free and for more than one year, the charity is deemed to have received a benefit which is quantified by calculating the net present value of the amount borrowed. The benefit, in plain English, is derived from the fact that the charity will repay the loan with money which is worth less and less with time. The loss in value is estimated using a notional rate of interest; in the present case the rate charged by HMRC for overdue payments has been selected as it is readily available. At 2.25%, the present value of the 25 year loan

5

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

REVIEW OF THE YEAR – continued

tranche is £122,166 so we have received a deemed benefit of £68,094.

No loan repayment was made this year. There was, therefore, no additional element in the Concessionary Loan Finance Charge.

Grants and awards are dealt with below.

The closing portfolio valuation reflects the steady improvement in the stock market during the year.

Whilst the Balance Sheet remains skewed by the loan, the Trustees consider the reserves are adequate for the level of activity currently undertaken.

Investments

Under their current investment policy, the Trustees seek a balanced return over a 10 year+ period between income and growth, based on Investec’s Medium Risk approach. There were no material changes made to the investment policy during the year.

Over the last year the portfolio, net of fees, grew 10.3% compared with a gross of fees benchmark of 12.5%. The five-year annualised return net of fees was 6.1%pa compared to a gross of fees benchmark of 6.6%. The value of our investments at 31 December 2021 had risen to £169,857. Investec had held a broadly neutral position in all assets classes during the year against their strategic asset allocation.

Grants and Awards

Grants and awards totalled £310,966 (2020: £12,037). In addition to the OF Prizes described in more detail below and the donation to the College of £300,000, the Charity gave financial assistance to a former staff member for care assistance and to a current pupil for singing lessons.

As in recent years the bulk of the individual awards were prizes. The charity now provides the following:

All these awards are in addition to those given for 2 Moreau Leaving Scholarships each year of £1,000 per annum for three years, making an outlay of £6,000 in total per annum.

6

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

Trustees’ Report - continued

Rules and Policies

The Trustees review the charity’s policies, procedures and objectives on a regular basis and implement any changes found necessary to comply with current legislation or improve the work of the charity.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Charity 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 Society and the results for the period. In preparing the financial statements the Trustees are required to :

The Trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Society.

The Trustees acknowledge their responsibility to take due care of the funds under their stewardship. They have established in conjunction with their Investment Advisers a broad strategy for keeping the balance between capital growth and income.

Approved by the Trustees and signed on their behalf

C R Essex Trustee 28[th] March 2022

7

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021 Statement of Financial Activities

Notes
INCOME and ENDOWMENT from
3
Donations and Legacies
Investments
Other
TOTAL INCOME
EXPENDITURE on
3
Raising Funds
Investment Management
Concessionary Loan Finance Charge
5
Charitable Activities
4
Other
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)before investment
gains or losses
3
OTHER RECOGNISED GAINS/(LOSSES)
Net Gains/(Losses) on Investments
NET INCOME/(EXPENDITURE)
TRANSFERS BETWEEN FUNDS
11
NET MOVEMENT IN FUNDS
Balances as at 1st January 2021
Balances as at 31st December 2021
12		 Unrestricted
Income
112,596
108
-

112,704

72
300,266
4

300,342

(187,638)
-

(187,638)
187,638

-
-

-		 Restricted
Income
8,140
2,220
68,094

78,454

1,532
5,008
10,700
1

17,241

61,213
-

61,213
(187,638)

(126,425)
(127,960)
(254,385)		 Expendable
Endowment
-
-
-

-

-
-
-

-

-
14,940

14,940

14,940
155,194
170,134		 2021
TOTAL
120,736
2,328
68,094

191,158

1,604
5,008
310,966
5

317,583

(126,425)
14,940

(111,485)
-

(111,485)
27,234

(84,251)		 2020
TOTAL
15,353
2,299
-

17,652

1,387
4,863
12,037
2

18,289

(637)
3,430

2,793
-

2,793
24,441

27,234

8

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

Balance Sheet

Notes Notes 2021 2020
£ £ £ £
ASSETS
FIXED ASSETS
Investments 6 169,857 155,195
CURRENT ASSETS
Cash at Bank 7 40,010 38,983
___ ___
40,010 38,983
___ _____
LIABILITIES
Creditors: Amounts falling due within one
year 8 - -
___ _____
- -
___ _____
NET CURRENT ASSETS 40,010 38,983
Creditors: Amounts falling due after more (294,118) (166,944)
than one year 9
_____ ____
TOTAL NET ASSETS/(LIABILITIES) (84,251) 27,234
====== ======
REPRESENTED BY:
CAPITAL
TRUST CAPITAL FUNDS
Expendable Endowment 10 139,962 138,917
Revaluation Reserve 11 30,172 16,277
_____ _______
170,134 155,194
TRUST INCOME FUNDS
Restricted (254,385) (127,960)
_____ ____
12 (84,251) 27,234
====== ======

The Financial Statements were approved on 28[th] March 2022 and signed on behalf of the Trustees by:-

C R Essex

9

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

Cash Flow Statement

Notes
Surplus/(deficit) for the year
Adjustments for:
Notional income arising from
concessionary loan
Notional finance charge arising from
concessionary loan
Investment income recognised in SOFA
Fair value (gains)/losses on investments
Accumulated income
CASH (ABSORBED BY)/ GENERATED
FROM OPERATING
INVESTING ACTIVITIES
Repayment from Investec
Dividends received
Interest received
FINANCING ACTIVITIES
Additional loan from Society of Old
Framlinghamians
NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS		 £
(68,094)
5,008
(2,328)
(14,940)

278
2,324
4
190,260		 2021
£
(111,485)
(80,354)
(191,839)
2,606
190,260
1,027		 £
-
4,863
(2,299)
(3,430)
(1)
-
2,269
30
-		 2020
£
2,793
(867)
1,926
2,299
-
4,225

10

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

Cash Flow Statement - continued

MOVEMENT IN NET DEBT
Deposit account
Current Account
Loans falling due after I year		 As at 01.01.2021
38,983
-
166,944

205,927		 Cash Flow
£
1,027
-

1,027		 Fair Value
Movements
£
-
127,174
127,174		 As at 31.12.2021
£
40,010
-
294,118
334,128

11

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

1 ACCOUNTING POLICIES

Basis of accounting

The Society of Old Framlinghamians Charitable Trust was created by a Trust Deed dated the 3rd June 2014 and registered in England and Wales under the Charities Act 1990 (Registered Number 1158435). The registered office is 12 Woodditton Road, Newmarket, Suffolk, CB8 9BQ.

The accounts have been prepared in accordance with FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. The charity is a Public Benefit Entity as defined by FRS 102.

The charity is a ‘Small Charity’ as defined by the Charity Commission and the Trustees have taken advantage of the limited reporting requirements.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The Trustees are responsible for seven other charitable funds which have a connection with the Society of Old Framlinghamians and which were linked on the 17th December 2014 to this registered charity by the Charity Commission. These accounts present the combined position of the various funds.

Preparation of the accounts on a going concern basis

The assets of the charity are greatly diminished by the large creditor falling due after more than one year, being a loan from the Society of Old Framlinghamians of £294,118 (2020: £166,944). As the loan agreement between the Society of Old Framlinghamians and the Charity is flexible in terms of repayments and length, the Trustees consider it appropriate for the accounts to be prepared on a going concern basis. Also, the Charity has significant endowment funds which could be converted to income if the charity did not have sufficient restricted income funds to meet their charitable expenditure. The Trustees would only commit to charitable expenditure if there were sufficient funds and therefore the accounts are prepared on a going concern basis.

12

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

ACCOUNTING POLICIES - continued

Funds Structure

Unrestricted funds are general funds that are available for use at the trustees’ discretion in the furtherance of any of the objectives of the charities.

Designated funds are unrestricted funds which the trustees have decided to set aside for a specific purpose.

Restricted funds are funds for use in a particular area or for specific purposes as specified by the donor or trust deed. These form the greater part of the charity’s funds. Restricted funds can be either income or endowment (capital) funds; the latter can be expendable or permanent.

Trust law requires the Trustees to invest the assets of endowment funds. However, if the fund is expendable, the capital can be spent if the Trustees so determine.

Donations are given to support one or more of the charity’s aims; those given to a fund other than the SOF Charitable Fund are treated as restricted income upon receipt unless the donor specifically indicates that it should be treated as endowment; donations to the SOF Charitable Fund are treated as unrestricted income following a change in the charity’s objects. If not required to cover immediate or imminent expenditure the money may be transferred to expendable endowment and invested to generate future income for a particular fund. Investment income is therefore treated in a similar manner; namely, as unrestricted income for the SOF Charitable Fund and restricted income for the other funds.

Recognition of Income

Investment income is recognised on a receivable basis.

Donations are recognised when received and if made under gift aid are recorded inclusive of the tax recoverable.

Legacies are accounted for on a receivable basis when the following conditions for their receipt have been met :

Where the recognition criteria of legacies is not met ie entitlement, certainty and measurement then legacies are not provided for within the accounts but noted as a contingent asset.

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred .

13

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

Investments

Investments are stated at market value. Any gain or loss on revaluation is taken to the Statement of Financial Activities.

From the 1st January 2015 the trustees have pooled the investments of the individual funds into a single investment fund in order to obtain efficiencies in the management of the investments and to allow the smaller funds to access a wider range of investments.

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Borrowings and Concessionary Loans

Borrowings including concessionary loans are initially recognised at the fair value of the proceeds and are subsequently amortised under the effective interest rate method through the Statement of Financial Activities ( SOFA ) as interest over the life of the loan, and which is added to the liability disclosed in the balance sheet. The benefit of repaying the loan in currency subject to inflation is calculated and credited to the SOFA as finance income.

No borrowings are shown as current liabilities as the charity has an unconditional right to defer settlement for at least 12 months after the balance sheet date.

Taxation

VAT is not recoverable and is charged to the expenditure to which it relates.

Tax recovered under gift aid is recognised when the donation is received and allocated to the income category to which the donation relates.

14

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

15

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

3 Detailed Statement of Financial Activities

INCOME
Donations from SOF General Funds
Donations and Legacies from Members
Amalgamated Investment Fund Distributions
Interest
Finance income arising from concessionary loan
EXPENDITURE
Grants and awards
Stockbroker fees
Finance charges
Bank charges
NET INCOME/(EXPENDITURE) before gains or losses
OTHER RECOGNISED GAINS
Net Gains/(Losses) on Investments
NET MOVEMENT IN FUNDS
Balances 1st January 2021
Transfers
Balances 31st December 2021
Represented by:-
Unrestricted Income
Restricted Income
Expendable Endowment
Revaluation Reserve		 SOF
Trust		 Charitable
Moreau
Benevolent
Restricted
£
£
-
-
-
223
-
322
-
-
68,094
-		 Mawby
Memorial
£
-
-
73
-
-		 Alfred
Pretty
Memorial
£
-
-
9
-
-		 O.F.
Scholarship
£
6,950
463
144
-
-		 Bromage
Memorial
£
-
-
490
-
-		 Wallace
Scholarship
£
-
-
709
-
-		 Framlingham
College
Improvement
£
-
504
472
1
-
977
-
326
-
1
327
650
3,038
3,688
37,408
-
41,096
-
6,087
28,872
6,137
41,096		 2021
TOTAL
£
116,690
4,046
2,324
4
68,094
191,158
310,966
1,604
5,008
5
317,583
(126,425)
14,940
(111,485)
27,234
-
(84,251)
-
(254,385)
139,962
30,172
(84,251)		 2020
TOTAL
£
11,143
4,210
2,269
30
-
Unrestricted
£
109,740
2,856
105
3
-
112,704 68,094
545		 73 9 7,557 490 709 17,652
300,266
72
-
4		 -
600
-
222
5,008
-
-
-		 125
50
-
-		 25
6
-
-		 8,700
100
-
-		 1,000
338
-
-		 250
490
-
-		 12,037
1,387
4,863
2
300,342 5,008
822		 175 31 8,800 1,338 740 18,289
(187,638)
-		 63,086
(277)
668
2,068		 (102)
464		 (22)
60		 (1,243)
926		 (848)
3,154		 (31)
4,562		 (637)
3,430
(187,638) 63,754
**1,791 **		 **362 ** 38 (317) 2,306 **4,531 ** 2,793
187,638 (134,572)
23,961
(187,638)
-		 5,292
-		 829
-		 8,423
-		 34,368
-		 51,525
-		 24,441
-
- (258,456)
25,752		 5,654 867 8,106 36,674 56,056 27,234
-
-
-
-		 -
-
(266,467)
926
6,660
20,650
1,351
4,176		 -
46
4,671
937		 -
171
575
121		 -
290
5,947
1,869		 -
277
30,028
6,369		 -
4,285
42,559
9,212		 (127,960)
138,917
16,277
- (258,456)
25,752		 5,654 867 8,106 36,674 56,056 27,234

16

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

4 GRANTS and AWARDS

Area
Educational support
Educational buildings
Research
Sporting Activities
Welfare
Other		 Grants to
Individuals
Institutions
£
£
9,075
300,000
-
-
-
-
1,025
-
600
-
266
-
10,966
300,000		 Support
Costs
£
-
-
-
-
-
-
-		 TOTAL
2021
2020
£
£
309,075
9,250
-
-
1,025
800
600
1,200
266
787
310,966
12,037		 TOTAL
2021
2020
£
£
309,075
9,250
-
-
1,025
800
600
1,200
266
787
310,966
12,037
12,037

The Trustees have relied on the exemption relating to the disclosure of information on grants to individuals.

5 INTEREST PAYABLE AND SIMILAR EXPENSES

Interest on financial liabilities measured at amortised cost:

2021 2020 £ £ Interest on other loans 5,008 4,863

In order to comply with the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, that part of the difference between the initial discounted value of the loan and the actual loan, which has to be written back each year through the SOFA and is calculated using the effective interest rate method, is identified as interest for the purpose of this note only. The Trustees wish to stress that the loan is interest free. See also note 9.

17

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

6 INVESTMENTS

2021
At Market Valuation
Opening
Additions
Disposals
Change in

Valuation
£
£
£
£
Amalgamated Investment Fund
Listed investments
151,063
6,792
(6,693)
14,794

Cash awaiting investment

Allocation between funds
SOF Charitable Trust
Moreau Benevolent
Mawby Memorial
Alfred Pretty Memorial
OF Scholarship
Bromage Memorial
Wallace Scholarship
Framlingham College Improvement
 Closing
£
165,956
3,901

169,857

8,009
24,815
5,605
696
7,808
36,204
51,735
34,985

169,857

AMALGAMATED INVESTMENT FUND – UNIT SUMMARY

SOF Charitable Trust
Moreau Benevolent
Mawby Memorial
Alfred Pretty Memorial
OF Scholarship
Bromage Memorial
Wallace Scholarship
Framlingham College
Improvement		 Opening
582
1,799
404
52
805
2,744
3,969
2,644
12,999		 Additions
Units
Cost £
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Disposals
-
-
-
-
-
-
-
-
-		 Transfers
-
-
-
-
-
-
-
-
-		 Closing
582
1,799
404
52
805
2,744
3,969
2,644
12,999

18

SOCIETY OF OLD FRAMLINGHAMIANS

CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

6 INVESTMENTS - continued

2020
At Market Valuation
Opening
Additions
Disposals
Change in
Valuation
£
£
£
£
Amalgamated Investment Fund
Listed Investments
147,952
29,685
(33,165)
6,591
Cash awaiting investment

Allocation between funds
SOF Charitable Trust
Moreau Benevolent
Mawby Memorial
Alfred Pretty Memorial
OF Scholarship
Bromage Memorial
Wallace Scholarship
Framlingham College Improvement		 Closing
£
151,063
4,132

155,195
7,343
22,758
5,144
636
6,891
33,243
47,210
31,970

155,195

19

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

6 INVESTMENTS - continued

The ten largest holdings by value were:

2021 2020
£ % £ %
Fundsmith LLP Equity Income 16,903 9.9 13,872 8.9
Vanguard FTSE All-World Ucits 16,529 9.7 13,990 9.0
Baillie Gifford Global Alpha Growth 13,581 8.0 14,596 9.4
Artisan Partners Global Value Fund 13,234 7.8 11,332 7.3
Liontrust Special Status 11,943 7.0 10,025 6.5
Man GLG Undervalued Assets 10,753 6.3 9,511 6.1
Lindsell Train UK Equity 10,113 5.9 9,142 5.9
Jupiter UK Special Situations 8,366 4.9 8,135 5.2
Invesco UK Corporate Bonds 8,174 4.8 5,328 3.4
Royal London Sterling Credit Fund 5,170 3.0 - -
iShares Core FTSE 100 Ucits - - 6,618 4.3

The asset allocation at value was:

2021 _202_0
% %
UK Fixed Interest 14.7 14.7
UK Equities 26.4 28.0
Foreign Fixed Interest 3.7 3.9
Foreign Equities 35.5 34.6
Property etc 4.8 4.8
Alternative Assets 12.6 11.3
Cash 2.3 2.7
_____ _______
100.0 100.0
_____ _____

Amongst the shares held are four (2020: 4) which produced no income. Their total value is £27,756 (2020: £23,484) which represents 16.3% (2020: 15.1%) of the portfolio.

20

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

7 CASH BALANCES

2021 2020
Current Deposit Total Total
SOF Charitable Trust - 27,654 27,654 25,028
Moreau Benevolent - 937 937 1,203
Mawby Memorial - 49 49 148
Alfred Pretty Memorial - 171 171 193
OF Scholarship - 298 298 1,533
Bromage - 470 470 1,125
Wallace Scholarship - 4,321 4,321 4,316
Framlingham College Improvement - 6,111 6,111 5,437
_____ _____ _____ _______
TOTAL - 40,010 40,010 38,983
_____ _____ _____ _______

8 CREDITORS: Amounts falling due within one year

Other Creditors UNRESTRICTED
2021
2020
-
-
-
-		 RESTRICTED
2021
2020
-
-
-
_- _		 TOTAL
2021
2020
-
-
-
-

21

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

9 CREDITORS: Amounts falling due after one year

Unsecured borrowing at amortised cost
Loan from related party		 UNRESTRICTED
2021
2020

294,118
166,944
294,118
166,944		 RESTRICTED
2021
2020
-
-
-
-		 TOTAL
2021
2020
294,118 166,944
294,118166,944

The Charity was provided in 2016 with a 25 year, interest free, unsecured loan facility of £500,000 by the Society of Old Framlinghamians to enable it to make an immediate grant to Framlingham College for the building of a new sports pavilion, but only £363,740 of the facility was used. £54,000 has since been repaid. This year in order to support Framlingham College with their Vision 2025 project, the Trustees availed themselves of the remaining facility and have drawn a further tranche of £190,260.

Because the loan is interest free, it is classed as a concessionary loan and has to be shown in the Balance Sheet at fair value, which is the net present value of the closing loan balance. The first tranche is being discounted at 3% and the second at 2.25%. The difference of £68,094 is deemed to be the benefit of repaying the latest loan in currency subject to inflation and has been credited to the SOFA as finance income. Each year part of this credit is written back in the SOFA as a finance charge and added to the loan balance above. The charge of £5,008 (2020: £4,863) relates to the first tranche only and does not include an additional amount this year because no loan repayment was made. When this happens in effect the discounted value of the repayment is added to the annual finance charge. The balance of the loans on an amortised cost basis is £500,000 (2020: £309,740).

No borrowings are shown as current liabilities as the Charity has an unconditional right to defer settlement for at least 12 months after the balance sheet date.

22

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Report and Financial Statements

For the year ended 31st December 2021

10 CAPITAL ACCOUNT MOVEMENTS

INCREASE
Transfers of unspent Restricted Income & restricted
donations
Net Gain on Sales of investments
REDUCTION
Net Loss on Sales of investments
NET MOVEMENT
Balances 1st January 2021
Balances 31st December 2021		 SOF
Moreau
Mawby
Alfred
O.F.
Bromage
Wallace
Framlingham
Charitable
Benevolent
Memorial
Pretty
Scholarship
Scholarship
College
Trust
Memorial
Improvement
£
£
£
£
£
£
£
£
46
145
32
4
65
221
320
212
46
145
32
4
65
221
320
212
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
46
145
32
4
65
221
320
212
6,614
20,505
4,638
571
5,882
29,807
42,240
28,660
6,660
20,650
4,670
575
5,947
30,028
42,560
28,872		 2021
TOTAL
£
1,045
1,045
-
-
1,045
138,917
**139,962 **		 2020
TOTAL
£
1
5,909
5,910
-
-
5,910
133,007
138,917

23

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

11 FUNDS

Endowment Funds
Revaluation Reserve
SOF Charitable Trust
Moreau Benevolent
Mawby Memorial
Alfred Pretty Memorial
OF Scholarship
Bromage
Wallace Scholarship
Framlingham College Improvement
TOTAL
Endowment Funds
excluding
Revaluation Reserve
SOF Charitable Trust
Moreau Benevolent
Mawby Memorial
Alfred Pretty Memorial
OF Scholarship
Bromage
Wallace Scholarship
Framlingham College Improvement		 Balance
01.01.21
729
2,252
506
65
1,008
3,436
4,970
3,311
16,277
Balance
01.01.21
6,614
20,505
4,638
571
5,882
29,807
42,240
28,660		 Realised
Reductions
in year
(40)
-
(125)
-
(28)
-
(4)
-
(56)
-
(190)
-
(274)
-
(183)
-
(900)
-
Income
Expenditure
46
-
145
-
32
-
4
-
65
-
221
-
320
-
212
-		 Increases
662
2,049
460
60
916
3,123
4,516
3,009
14,795
Transfers
-
-
-
-
-		 Balance
31.12.21
1,351
4,176
938
121
1,868
6,369
9,212
6,137
30,172
Balance
31.12.21
6,660
20,650
4,670
575
5,947
30,028
42,560
28,872
139,962
138,917 1,045
-		 -

Income is the fund’s share of realised gains made within the Amalgamated Investment Fund. Transfers are from/(to) restricted income funds and consist of accumulation income and income used to buy more investments.

The purpose for which each fund is held is explained within the Trustees’ Report – see page 3.

24

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

11 FUNDS - continued

Restricted Funds
Income
SOF Charitable Trust
Moreau Benevolent
Mawby Memorial
Alfred Pretty Memorial
OF Scholarship
Bromage
Wallace Scholarship
Framlingham College
Improvement		 Balance
Income
Expenditure
Transfers
Balance
01.01.21
31.12.21
(141,915)
68,094
(5,008)
(187,638)
(266,467)
1,203
545
(822)
-
926
148
73
(175)
-
46
193
9
(31)
-
171
1,533
7,557
(8,800)
-
290
1,125
490
(1,338)
-
277
4,316
709
(740)
-
4,285
5,437
977
(327)
-
6,087
(127,960)
78,454
(17,241)
(187,638)
(254,385)

The deficit on the SOF Charitable Trust arises from donations made to Framlingham College as explained in Note 9. The donations would not have been possible without the generous support of the Society of Old Framlinghamians, who made good the shortfall in our funds by giving the charity a twenty five year, interest free loan. The Trustees wish to reiterate that the deficit is covered by the long term loan from the Society of Old Framlinghamians and to point out that the deficit on the SOF Charitable Fund will have no effect on the administration of the other funds. It is the Trustees intention to repay the loan from future donations. That income can fluctuate from year to year is acknowledged in the loan agreement, which permits annual repayments to be varied depending on the level of income in the year, with the loan period extendable at no additional cost, if required.

12 ANALYSIS OF NET ASSETS BY FUND

Investments
Current Assets
Current Liabilities
Loan
Total net assets		 Restricted
Income
Funds
39,733
(294,118)
(254,385)		 Expendable
Endowment
Funds
169,857
277

170,134		 Balance
31.12.21
169,857
40,010
(294,118)

(84,251)

25

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

13 FINANCIAL INSTRUMENTS

Carrying amount of financial assets
Instruments measured at fair value through profit
or loss
Carrying amount of financial liabilities
Measured at amortised cost		 2021
£
169,857
294,118		 2020
£
155,195
166,944

14 FUTURE COMMITMENTS

MOREAU SCHOLARSHIPS

The Trustees agreed in 2004 to set up a maximum of two Moreau scholarships per year from 2006. Each scholarship was originally set up to run for three years at a level of £800 per year. However, in 2015 the award was increased to £1,000 per year. There is, therefore, a future commitment to pay £2,000 in 2022 and £2,000 in 2023 for awards already made, provided award conditions are met.

BROMAGE SCHOLARSHIP FUND

Provided all the conditions are met, the Trustees have a future commitment to pay the second tranche of the Bromage Scholarship of £500 in 2022.

15 TRUSTEES’ REMUNERATION AND EXPENSES

The trustees are not remunerated. They are entitled to be paid expenses for attending meetings and duties directly relating to their duties as trustees. In 2021 no trustee was paid (2020: £nil) for travel and other expenses.

16 RELATED PARTY TRANSACTIONS

An award of £300,000 (2020: £nil) was made during the year to Framlingham College, of which one trustee, Mr. P. Howard-Dobson, is governor.

A loan facility was granted to the charity in 2016 by the Society of Old Framlinghamians, which has trustees in common with the charity. Details of this are disclosed on Note 9.

26

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Notes to the Financial Statements

For the year ended 31st December 2021

17 INDEPENDENT EXAMINER’S FEE

Under the terms of the 2014 agreement between the Society and the College, the cost of the examination of these accounts is met by the College, for which the Trustees record their appreciation. The total amount of this is £2,175 (2020: £2,094).

18 POST BALANCE SHEET EVENTS

None.

27

INDEPENDENT EXAMINER’S REPORT

TO THE TRUSTEES OF THE

SOCIETY OF OLD FRAMLINGHAMIANS CHARITABLE TRUST

Independent examiner’s report to the Trustees of Society of Old Framlinghamians Charitable Trust

I report to the trustees on my examination of the accounts of the Society of Old Framlinghamians Charitable Trust (the Trust) for the year ended 31 December 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe in any material respect:

  1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of the independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Barry Gostling - FCCA Connexions, For and on behalf of ENSORS Accountants LLP 159 Princes Street, 29[th] March 2022 Ipswich, Suffolk,

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