2022-08-31-accounts - The Chess Trust

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Trustees’ Annual Report and

Financial Statements for the Year Ended 31 August 2022

For

The Chess Trust

Charitable Incorporated Organisation

The Chess Trust A Charitable Incorporated Organisation The Chess Trust is a Registered Charity No. 1160881

The Chess Trust

Contents of the Financial Statements for the year ended 31 August 2022

	Page
Charity Information	1
Report of the Trustees	2
Statement of Financial Activities	7
Balance Sheet	8
Notes to the Financial Statements	9
Report of the Independent Examiner	15

The Chess Trust

Charity Information for the year ended 31 August 2022

Reference & Administrative Details

TRUSTEES: A. Ashton S. Brown (appointed 24/01/22) D. Eustace S. Greep S. Longson M. Pein (appointed 24/01/22) M. Truran ADDRESS: The Watch Oak Chain Lane Battle East Sussex TN33 0YD CHARITY REGISTRATION NUMBER: 1160881 INDEPENDENT EXAMINERS: Watson Associates (Professional Services) Ltd Chartered Accountants 30 – 34 North Street Hailsham East Sussex BN27 1DW BANKERS: NatWest Bank PLC Hastings Branch Havelock Road Hastings East Sussex TN34 1GW

INVESTMENT MANAGERS:	Evelyn Partners
	45 Gresham Street
	London
	EC2V 7BG

The Chess Trust

Report of the Trustees for the year ended 31 August 2022

The Trustees present their annual report together with the unaudited financial statements of the charity for the year ended 31 August 2022 under the Charities Act 2011.

Having considered the guidance of the Charity Commission and the Charities Act 2011, the Trustees have considered that an audit is not required and that an independent examination of the financial statements will provide assurance to trustees, funders, beneficiaries, stakeholders and the public that the accounts of the charity have been reviewed by an independent person.

Legal and administrative information set out on page 1 forms part of this report.

The financial statements comply with current statutory requirements, the memorandum and articles of association, and the Charities SORP (FRS 102).

The charity is constituted as a Charitable Incorporated Organisation and was registered with the Charity Commission under charity number 1160881 on 13 March 2015.

The charity is governed by its constitution, last amended on 13 March 2015.

Charity’s Objectives and Activities

The charity was established to raise and apply funds to promote the development and furtherance of chess by:

The advancement of amateur sport by promoting the study and practice of chess in all its forms, principally, but not exclusively for the benefit of the residents of England; and
The advancement of education by promoting the development of young people through the teaching and practice of chess.

In setting out the objectives and planning activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

Trustees

The charity’s operations were administered by the following, who formed the Board of Trustees:

A. Ashton, S. Brown (appointed 24/01/2022) R. Edwards (resigned 26/07/2022), D. Eustace, S. Greep, S. Longson, N. Regan (resigned 12/05/2022), S. Marsh (appointed 24/01/2022, resigned 23/08/2022), M. Pein (appointed 24/01/2022) M. Truran.

The Trustees shown above have held office during the whole of the period from 1 September 2021 to the date of this report, apart from where noted above.

The Chess Trust

Report of the Trustees for the year ended 31 August 2022

Achievements and Performance

The Trust is now well established. It now has funds to support junior activities, the British Chess Championships, and other activities.

Accelerator Programme

During 2021/22 the Trust continued to develop its Accelerator Programme which is designed to develop young players to become the titled and international players of the future. The Trust appointed a Programme Director who provides the direction, management and mentoring skills required to make the Programme a success. In addition to the Programme Director the Trust has funded support for coaching by top international players and attendance at agreed events. Approximately ten candidates are invited to join the Programme by a Selection Committee, and progress is reviewed regularly. This has been the fourth year of the Programme, and the Trustees regard this as a long-term initiative over several years; performance has been and will be assessed in that light.

The Covid 19 pandemic and the resulting lockdowns have restricted many of the Programme’s activities in supporting attendance at coaching and training events, but the Programme has continued with online tutoring and coaching as circumstances allowed. The Trustees have also formalised the Selection Committee with a Trustee chairing the meeting.

Glorney Bloodworth and British Chess Education Trusts (BCET)

During the year the Trust made annual awards to schools (previously BCET awards) which had been selected by independent assessors. The Trust also supports the Glorney Bloodworth event.

British Chess Championships

The Trust along with the John Robinson Youth Chess Trust donated £10,000 to support the British Chess Championships in August 2022.

Other Grants

The Trustees are also pleased to have provided support to the following events:

World Seniors Team Championship (Open and Women’s)
World Schools Championship
Vera Menchik Memorial Tournament
Hull 4NCL Tournament
Northumbrian Masters
Wood Green Invitational Players
Mindsports GM/IM Norm Tournament

Support for Ukrainian Players

The Trustees agreed to provide support for Ukrainian players who had become refugees in England. This would be funded with £10,000 over two years, 2022 and 2023.

Financial Review

The charity has continued to generate income from its investment assets which has been utilised to meet its obligations, additionally, some capital has been used to support the funding of its Accelerator Programme and other activities.

The Chess Trust

Report of the Trustees for the year ended 31 August 2022

The funds of the Trust are invested with Evelyn Partners (formerly Smith & Williamson) and their market value has increased by £51,786 in the financial year.

At the balance sheet date, the charity had restricted reserves of £696,148 (2021 £827,444) and unrestricted reserves of £183,057 (2021 -£572).

Total reserves held at the year-end were £879,205.

Income and Reserves Policy

Income is derived from investment income, donations, and legacies that the charity holds with its investment advisers, Evelyn Partners. The Trustees have agreed that all dividend and interest income will be credited to the Trust’s General Fund in order to further support a wide range of initiatives to enhance chess development and education. At the time of the report, it also held cash at bank of £40,698 representing restricted and unrestricted funds unspent which are to be applied over future years to deliver the charity’s objectives.

Restricted funds totalling £696,148 are held comprising the balance of the Richard Haddrell bequest, the Championship Fund which is part of the John Robinson bequest for the British Chess Championships, the Neil Carr bursary, and the funds from the Bloodworth/Glorney and British Chess Education Trusts.

These funds will be used to promote the development and furtherance of chess in England for junior players under the age of 18, support the objectives of the former Glorney/Bloodworth and British Chess Education Trusts and to support the British Chess Championships.

The Trust also received substantial donation from the British Chess Federation which is held in the unrestricted General Fund. These funds will be utilised to enable further development of chess initiatives beyond that currently undertaken through use of the Junior and Championship Funds. This enables the Trust to provide its support to a wider range of developmental and educational activities.

Investment Policy

The Trustees have instructed their investment managers, Evelyn Partners, to allocate the Trust’s funds on a balanced portfolio basis to provide income and growth over the long term.

Adequate cash reserves are held in the charity’s NatWest account to meet the Trust’s commitments over future years for designated purposes (restricted) and for any unrestricted purposes.

Risk Management and Going Concern

The Trustees have instructed to their investment managers, Evelyn Partners, to manage the Trust’s investment portfolio on a medium risk basis to deliver income and capital growth over the long term.

The Trustees have agreed to retain adequate levels of liquid funds to meet their planned expenditure over the forthcoming years.

The Trust’s Accelerator Programme and its other support activities will require the use of some of the Trust’s capital funds in addition to anticipated income. The Trustees intend to diligently monitor

The Chess Trust

Report of the Trustees for the year ended 31 August 2022

the utilisation of capital reserves to ensure that adequate funds are available to support the Trust’s objectives for future years and have agreed that capital funds will not fall below £600,000.

The Trust’s commitment to support the British Chess Championships is covered by a separate, designated fund.

Plans for Future Developments

The Trustees plan to continue:

To support the Trust’s Accelerator Programme for the medium term and to monitor its results
To support FIDE Norm tournaments
To support women’s only tournaments and enable more women to play chess
To consider allocating further funds for Junior development activities
To support the British Championships in accordance with the original donor’s (John Robinson’s) wishes
To present the Neil Carr Award annually
To meet the objectives of the former Bloodworth Glorney Trust
To meet the objectives of the former British Chess Education Trust

The Trustees intend to develop the Trust’s website and to focus on establishing a wider presence amongst chess communities to develop awareness of its activities and pursue income-raising opportunities.

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and the Charities SORP (FRS 102).

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Accounting Standards and applicable law.

Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charity and of the incoming/outgoing resources for that period.

In preparing the 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
Make judgements and accounting estimates which 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

The Chess Trust

Report of the Trustees for the year ended 31 August 2022

Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the provisions of the charity’s constitution and the Charities SORP (FRS 102). They are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

As far as the Trustees are aware:

There is no relevant information of which the charity’s independent examiners are unaware
They have taken all steps that they ought to have taken to make themselves aware of any relevant information and to establish that the independent examiners are aware of that information
They have had due regard to guidance by the Charity Commission in respect of public benefit.

Approval

29 Jun 2023

This report was approved by the Trustees on ……………………… and signed on the charity’s behalf by: -

----- Start of picture text -----
..................................................
----- End of picture text -----

.................................................. .................................................. D. Eustace S. Brown Trustee Trustee

The Chess Trust

Statement of Financial Activities (Incorporating the Income and Expenditure Account) for the year ended 31 August 2022


	Notes	Unrestricted Funds	Restricted Funds	2022 Total	2021 Total
		£	£	£	£


Income and endowments from:
Donations and legacies	2	175,995	-	175,995	335
Investments	3	14,094	-	14,094	11,337

Total Income		190,089	-	190,089	11,672

Expenditure on:
Raisingfunds	4	6,460	-	6,460	6,094
Charitable activities	4	-	85,214	85,214	57,114

Total expenditure		6,460	85,214	91,674	63,208

Netgains/(losses)on investments		-	(46,082)	(46,082)	116,463

Net income/(expenditure)		183,629	(131,296)	52,333	64,927

Transfers between funds		-	-	-	-

Net movement in funds		183,629	(131,296)	52,333	64,927


Reconciliation of funds:

Total funds brought forward
1 September 2021		(572)	827,444	826,872	761,945

Transfer/reclassification		-	-	-	-

Total funds carried forward
31 August 2022	12	183,057	696,148	879,205	826,872

The Chess Trust (Registered number: 1160881)

Balance Sheet 31 August 2022

	31	August 2022

	Notes		2022		2021
		£	£	£	£


Fixed Assets
Investments - Junior	9		506,784		578,949
Investments - Championship	9		172,030		193,888
Investments - General	9		145,809		-
General			-		-

			824,623		772,837

Current Assets
Debtors	10	30,711		-
Cash at bank and in hand		40,698		55,625

		71,409		55,625

Current Liabilities
Creditors : amounts fallingdue	11
within oneyear		(16,828)		(1,590)

Net current assets			54,581		54,035

Total assets less current liabilities			879,205		826,872


The funds of the charity:
Restricted funds	12		696,148		827,444
Unrestricted funds	12		183,057		(572)

Total charity funds	13		879,205		826,872

29 Jun 2023

The financial statements were approved by the Trustees on ……………………………and were signed on the charity’s behalf by:

.................................................. …………………………………….

D. Eustace Trustee

S. Brown Trustee

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2022

1. ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective January 2015 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Assets and liabilities are recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note(s).

The financial statements comply with the Charities (Accounts and Reports) Regulations 2008 issued under the Charities Act 2011.

Public benefit entity

The charity meets the definition of a public benefit entity under the Charities SORP (FRS 102).

Exemption from preparing a cash flow statement

Exemption has been taken from preparing a cash flow statement on the grounds that the charity is a small charity.

Income

Income is included in the Statement of Financial Activities when:

The charity becomes entitled to the resources;
It is more likely than not that the Trustees will receive the resources; and
- The monetary value can be measured with sufficient reliability.

Investment income

Income from interest, royalties and dividends is accounted for in the Statement of Financial Activities on an accruals basis.

Grants and donations

Grants and donations are only included in the Statement of Financial Activities when the general income recognition criteria are met.

Legacies

Legacies are included in the Statement of Financial Activities on receipt of funds or when receipt is probable. Entitlement is taken to be when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the charity or have been met.

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2022

1. ACCOUNTING POLICIES (Continued)

Expenditure

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 can be measured reliably.

Irrecoverable VAT is included within the item of expenditure to which it relates.

Governance costs include other charitable costs incurred in complying with constitutional and statutory requirements of the charity.

Staff costs

The charity has no staff costs. The Trustees provide their services on a voluntary basis and do not receive any payment or remuneration.

Investment gains and losses

Unrealised gains or losses on the sale of investments and any gain or loss arising on the revaluation of investments to market value at the year end are credited or charged to the Statement of Financial Activities.

Investments

Fixed asset investments in quoted shares, traded bonds and similar investments are valued initially at cost and subsequently at fair value (their market value) at the year end. The same treatment is applied to unlisted investments unless fair value cannot be measured reliably in which case it is measured at cost less impairment.

Investments are held in a managed portfolio by Evelyn Partners and included in the financial statements at their market value at the balance sheet date. Any unrealised gain or loss is taken to the Statement of Financial Activities.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount is offered. Prepayments are valued at the amount prepaid net of any trade discount.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement date after allowing for any trade discounts due.

Fund accounting

The funds of the charity are accounted for as unrestricted or restricted income or as endowment capital in accordance with the terms of trust imposed by the donors or the Charity Commission.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and to provide short term financial stability.

Restricted funds comprise gifts, legacies and grants which are subject to trust law restrictions on their expenditure, or a specific purpose imposed by the donor or through the terms of the appeal.

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2022

2. INCOME FROM DONATIONS AND LEGACIES


	Unrestricted Funds	Restricted Funds	2022 Total	2021 Total
	£	£	£	£

Donations	162,913	-	162,913	335
Legacies	13,082	-	-	-

	175,995	-	162,913	335

3. INVESTMENT INCOME

3. INVESTMENT INCOME

	Unrestricted Funds	Restricted Funds	2022 Total	2021 Total
	£	£	£	£

Junior Fund - Interest	1,781	-	1,781	1,266
Junior Fund - Dividends	8,439	-	8,439	7,055
ChampionshipFund - Interest	660	-	660	402
ChampionshipFund - Dividends	2,860	-	2,860	2,614
General Fund - Interest	240	-	240	-
General Fund - Dividends	114	-	114	-

	14,094	-	14,094	11,337

4. EXPENDITURE ANALYSIS

	Charitable Direct Costs	Charitable Direct Costs
	Unrestricted Funds	Restricted Funds	2022 Total	2021 Total
	£	£	£	£

Investment management fees	6,460	-	6,460	6,094
Sponsorshipandgrants	-	45,744	45,744	23,500
Acceleratorprogramme fees	-	30,167	30,167	27,720
Coachingfees	-	4,937	4,937	3,094
Independent examiners fees	-	-	-	-
Accountancyfees	-	3,666	3,666	2,650
Trustee meetings and expenses	-	-	-	150
Administration costs	-	700	700	-

	6,460	85,214	91,674	63,208

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2022

5. TRUSTEE REMUNERATION

No Trustee received any remuneration for services provided to the charity in the year (2021: Nil)

No Trustee received payment for professional or other services supplied to the charity during the year (2021: Nil)

6. CAPITAL COMMITMENTS

There were no capital commitments not provided for in the financial statements for the year ended 31 August 2022 (2021: Nil)

7. RELATED PARTIES

There were no related party transactions in the period under review that require disclosure in the financial statements.

8. ULTIMATE CONTROLLING PARTY

The Board of Trustees control the charity.

9. FIXED ASSET INVESTMENTS

D ASSET INVESTMENTS
	Total	Total
	2022	2021
	£	£

At 1 September 2021	772,837	651,131
Additions to investments at cost	345,173	69,962
Disposals from investments at value	(250,921)	(41,541)
Realisedgains	11,583	28,421
Increase/(decrease)in value of investments	(54,049)	64,864

At 31 August 2022	824,623	772,837




Cash or cash equivalents	23,672	31,638
Listed investments	800,951	741,199

	824,623	772,837

All investments are carried at their fair value. Investments in equities and fixed asset securities are all traded in quoted public markets and listed on the London Stock Exchange. Asset sales and purchases are recognised at the date of trade at cost (their transaction value). All investments are held for charitable use.

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2022

10. DEBTORS

TORS
	Total	Total
	2022	2021
	£	£

Accrued income	30,711	-

	30,711	-

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

	Total	Total
	2022	2021
	£	£

Accruals	16,828	1,590

	16,828	1,590

12. ANALYSIS OF CHARITABLE FUNDS


		Balance						Balance
	1	September 2021	Income	Expenditure	Transfers	Gains/Losses	31 August 2022

Restricted Funds :
Neil Carr Donation		3,800	-	-	-	-		3,800
Legacies		800,144	-	(61,714)	-	(46,082)		692,348
BCF		23,500	-	(23,500)	-	-		-

Total Restricted Funds		827,444	-	(85,214)		(46,082)		696,148


Unrestricted Funds :
General Funds		(572)	190,089	(6,460)	-	-		183,057

Total Unrestricted Funds		(572)	190,089	(6,460)	-	-		183,057

Total Funds		826,872	190,089	(91,674)	-	(46,082)		879,205

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2022

Purposes of restricted funds

Restricted funds are used as follows: -

To promote and support chess playing in England among junior players under the age of 18, and for the advancement and encouragement of English junior chess players. The Accelerator Programme is currently the primary vehicle to achieve this goal.

To provide annual funding to the British Chess Championships in accordance with the original donor’s (John Robinson’s) wishes.

To provide an annual sum for the award of the Neil Carr bursary to a selected junior player to attend the ECF Chess Academy.

To provide funds to meet the objectives of the Bloodworth Glorney Trust.

To provide funds to meet the objectives of the former British Chess Education Trust.

Purpose of unrestricted funds

Unrestricted funds are used for the general purposes of the charity and represent accumulated income and donations from the charity’s activities.

The Chess Trust

Independent Examiner’s Report to the Trustees of The Chess Trust

I report to the charity’s Trustees on my examination of the accounts of the charity for the year ended 31 August 2022, which are set out on pages 7 to 16.

Respective Responsibilities of Trustees and Examiner

The charity's Trustees are responsible for the preparation of the accounts. The charity’s Trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (“the Charities Act”) and that an independent examination is sufficient.

Having been satisfied that the charity is not subject to audit under charity law and is eligible for independent examination, it is my responsibility to:

examine the accounts under section 145 of the Charities Act;
follow the procedures laid down in the general directions given by the Charity Commission (under section 145(5)(b) of the Charities Act; and
state whether particular matters have come to my attention.

Basis of Independent Examiner's Report

My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the trustees concerning any such matters.

The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view, and the report is limited to those matters set out in the statement below.

Independent Examiner's Statement

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

the accounting records were not kept in accordance with section 130 of the Charities Act; or
the accounts did not accord with the accounting records; or
the accounts did 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 an independent examination.

The Chess Trust

Independent Examiners Report to the Trustees of The Chess Trust

(…Continued)

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 to enable a proper understanding of the accounts to be reached.

John C. Males BA (Hons) FCA

Watson Associates (Professional Services) Ltd

Chartered Accountants 30 – 34 North Street Hailsham East Sussex BN27 1DW

29 Jun 2023 Date………………………….