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2023-08-31-accounts

Trustees’ Annual Report and

Financial Statements for the Year Ended 31 August 2023

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 2023

Page
Charity Information 3
Report of the Trustees 4
Statement of Financial Activities 9
Balance Sheet 10
Notes to the Financial Statements 11
Report of the Independent Examiner 17

The Chess Trust

Charity Information for the year ended 31 August 2023

Reference & Administrative Details

TRUSTEES: A. Ashton
S. Brown
D. Eustace
S. Greep
A. Longson
S. Longson
M. Pein
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 2023

The Trustees present their annual report together with the unaudited financial statements of the charity for the year ended 31 August 2023 under the Charities Act 2011.

Having considered the guidance of the Charity Commission and the Charities Act 2011, the Trustees have concluded 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 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:

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 are administered by the following, who form the Board of Trustees:

A. Ashton (appointed 15/10/2023), S. Brown, D. Eustace, S. Greep, A. Longson (appointed 26/10/2023) S. Longson, M, Pein, M. Truran.

The Trustees shown above have held office during the whole of the period from 1 September 2022 to the date of this report, apart from where noted above.

The Chess Trust

Report of the Trustees for the year ended 31 August 2023

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 2022/23 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 in 2018 to provide 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.

Glorney Bloodworth and British Chess Education Trusts (BCET)

During the year the Trust made annual awards to schools (previously the BCET awards) which had been selected by independent assessors.

British Chess Championships

The Trust donated £10,000 to support the British Chess Championships.

Support for Ukrainian Refugee junior Players

The Trust established a fund to support refugee junior Ukrainian players who had come to the UK. Grants were made to provide the costs of entry, travel and accommodation for chess tournaments. 25 grants were made.

Other Grants

The Trust made grants to the following activities, amongst other minor grants during the year:

Mindsport GM and IM Norm events Southend Masters April 2023 Northumbrian Masters August 2023 She Play to Win WIM event Wood Green All Play All GM Norm Event July 2023. Vera Menchik Memorial tournament World Seniors Team Championships (ECF team) European Seniors Team Championships (ECF team) UK Combined Services team at the NATO Chess Championships

The Chess Trust

Report of the Trustees for the year ended 31 August 2023

Financial Review

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

The funds of the Trust are invested with Evelyn Partners and their market value has reduced by £36,171 in the financial year.

At the balance sheet date, the Trust had restricted reserves of £589,113 (2022 £696,148) and unrestricted reserves of £235,159 (2022 £183,057)

Total reserves held at the end of the end year were £824,272 (2022 £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 the 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. .

Restricted funds totalling £589,113 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 England among junior players under the age of 18, to support the objectives of the former Glorney/Bloodworth and British Chess Education Trusts and to support the British Chess Championships.

The Trust also received a substantial donation from Chess Centre Limited, a company owned by the British Chess Federation. These funds are held in the Trust’s General Fund and 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 support a wider range of developmental and educational activities. Unrestricted funds totalled £235,159 as at 31[st] August 2023.

Investment Policy

The Trustees have instructed their Investment Managers, Evelyn Partners, to allocate its 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.

The Chess Trust

Report of the Trustees for the year ended 31 August 2023

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 its planned expenditure over the forthcoming years.

The Trust’s Accelerator Programme and other activities will require the use of some of the Trust’s capital in addition to anticipated income. The Trustees intend to diligently monitor the utilisation of capital reserves to ensure that adequate funds are available to support the Trust’s objectives 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:

The Trustees have developed a new website and to focus on establishing a wider presence amongst chess communities to develop awareness of its activities and pursue income-raising opportunities. The website will be further enhanced in coming years.

The Chess Trust

Report of the Trustees for the year ended 31 August 2023

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:

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; and

They have had due regard to guidance by the Charity Commission in respect of public benefit.

Approval

28 Jun 2024

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

SD Brown

.................................................. .................................................. 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 2023

Notes Unrestricted
Funds
Restricted
Funds
2023 Total 2022 Total
£ £ £ £
Income and endowments from:
Donations and legacies 2 39,574 - 39,574 175,995
Investments 3 20,232 - 20,232 14,094
Total Income 59,806 - 59,806 190,089
Expenditure on:
Raising funds 4 7,704 - 7,704 6,460
Charitable activities 4 - 78,554 78,554 85,214
Total expenditure 7,704 78,554 86,258 91,674
Net gains/(losses) on investments - (28,481) (28,481) (46,082)
Net income/(expenditure) 52,102 (107,035) (54,933) 52,333
Transfers between funds - - - -
Net movement in funds 52,102 (107,035) (54,933) 52,333
Reconciliation of funds:
Total funds brought forward
01-Sep-22 183,057 696,148 879,205 826,872
Transfer/reclassification - - - -
Total funds carried forward
31-Aug-23 12 235,159 589,113 824,272 879,205

The Chess Trust (Registered number: 1160881)

Balance Sheet 31 August 2023

Notes 2023 2022
£ £ £ £
Fixed Assets
Investments - Junior 9 468,002 506,784
Investments - Championship 9 157,820 172,030
Investments - General 9 162,630 145,809
788,452 824,623
Current Assets
Debtors 10 - 30,711
Cash at bank and in hand 38,680 40,699
38,680 71,410
Current Liabilities
Creditors : amounts falling due 11
within one year (2,859) (16,828)
Net current assets 35,821 54,582
Total assets less current liabilities 824,273 879,205
The funds of the charity:
Restricted funds 12 589,113 696,148
Unrestricted funds 12 235,159 183,057
Total charity funds 13 824,272 879,205

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

SD Brown .................................................. ……………………………………. D. Eustace S. Brown Trustee Trustee

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2023

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:

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 2023

1. ACCOUNTING POLICIES

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 with the exception of reimbursement of reasonable expenses.

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 Smith & Williamson 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.

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2023

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.

2. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
Funds
Restricted
Funds
2023 Total 2022 Total
£ £ £ £
Donations 39,574 - 39,574 162,913
Legacies - - - 13,082
39,574 - 39,574 175,995

3. INVESTMENT INCOME

Unrestricted
Funds
Restricted
Funds
2023 Total 2022 Total
£ £ £ £
Junior Fund - Interest - 2,294 2,294 1,781
Junior Fund - Dividends - 9,854 9,854 8,439
Championship Fund - Interest - 791 791 660
Championship Fund - Dividends - 3,439 3,439 2,860
General Fund - Interest - 470 470 240
General Fund - Dividends - 3,384 3,384 114
- 20,232 20,232 14,094

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2023

4. EXPENDITURE ANALYSIS

Charitable Direct Costs
Unrestricted
Funds
Restricted
Funds
2023 Total 2022 Total
£ £ £ £
Investment management fees 7,704 - 7,704 6,460
Sponsorship and grants - 31,319 31,319 45,744
Accelerator programme fees - 42,607 42,607 30,167
Coaching fees - 2,000 2,000 4,937
Independent examiners fees - - - -
Accountancy fees - 2,628 2,628 3,666
Trustee meetings and expenses - - - -
Administration costs - - - 700
7,704 78,554 86,258 91,674

5. TRUSTEE REMUNERATION

No Trustee received any remuneration for services provided to the charity in the year (2022: Nil)

No Trustee received payment for professional or other services supplied to the charity during the year (2022: Nil)

6. CAPITAL COMMITMENTS

There were no capital commitments not provided for in the financial statements for the year ended 31 August 2023 (2022: 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 charity is controlled by the Board of Trustees.

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2023

9. FIXED ASSET INVESTMENTS

Total Total
2023 2022
£ £
At 1 September 2022 824,623 772,837
Additions to investments at cost 319,875 345,173
Disposals from investments at value (323,194) (250,921)
Cash account movement (8,974) (7,966)
Increase/(decrease) in value of investments (23,878) (34,500)
At 31 August 2023 788,452 824,623
Cash or cash equivalents 14,698 23,672
Listed investments 773,754 800,951
788,452 824,623

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.

10. DEBTORS

Total Total
2023 2022
£ £
Accrued income - 30,711
- -

The Chess Trust

Notes to the Financial Statements for the year ended 31 August 2023

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Total Total
2023 2022
£ £
Accruals and deferred income 2,859 16,628
2,859 16,628

12. ANALYSIS OF CHARITABLE FUNDS

Balance Balance
01-Sep-22 Income Expenditure Transfers Gains/Losses 31-Aug-23
Restricted Funds :
Neil Carr Donation 3,800 - - - - 3,800
Legacies 692,348 - (78,554) - (28,481) 585,313
Total Restricted Funds 696,148 0 (78,554) 0 (28,481) 589,113
Unrestricted Funds :
General Funds 183,057 59,806 (7,704) - - 235,159
Total Unrestricted Funds 183,057 59,806 (7,704) 0 0 235,159
Total Funds 879,205 59,806 (86,258) 0 (28,481) 824,272

Purposes of restricted funds

Restricted funds are used as follows: -

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 2023, which are set out on pages 7 to 15.

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:

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 Chess Trust

Independent Examiner’s 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.

j c males

John C. Males BA (Hons) FCA

Watson Associates (Professional Services) Ltd Chartered Accountants 30 – 34 North Street Hailsham East Sussex BN27 1DW 28 Jun 2024 Date………………………….

Issuer

Issuer Watson Associates Document generated Fri, 28th Jun 2024 11:38:07 UTC Document fingerprint 7c1e3683fc31093bdb46113ac64d83f9

Parties involved with this document

Document processed

Party + Fingerprint

Fri, 28th Jun 2024 11:51:21 UTC David Eustace - Signer (5f82731a74f62d5904f48852d588e8fd) Fri, 28th Jun 2024 12:19:31 UTC Simon Brown - Signer (f5f97e7555b92dafec304555ac15c01f) Fri, 28th Jun 2024 12:22:30 UTC John Males - Signer (a516e8b48e51e7dc3535239a798bbe91)

Audit history log

Date Action Fri, 28th Jun 2024 11:38:07 UTC Envelope generated by Lauren Sands51.155.44.241 Fri, 28th Jun 2024 11:38:08 UTC Document generated with fingerprint 7c1e3683fc31093bdb46113ac64d83f951.155.44.241 Fri, 28th Jun 2024 11:40:16 UTC Sent the envelope to David Eustace (david.eustace01@btinternet.com) for signing51.155.44.241 Fri, 28th Jun 2024 11:40:16 UTC Document emailed to david.eustace01@btinternet.com18.170.213.6 Fri, 28th Jun 2024 11:41:47 UTC David Eustace opened the document email.86.152.174.41 Fri, 28th Jun 2024 11:41:47 UTC David Eustace opened the document email.86.152.174.41 Fri, 28th Jun 2024 11:49:28 UTC David Eustace viewed the envelope86.152.174.41 Fri, 28th Jun 2024 11:51:21 UTC David Eustace signed the envelope86.152.174.41 Fri, 28th Jun 2024 11:51:21 UTC Sent the envelope to Simon Brown (simon@laurels4a.com) for signing86.152.174.41 Fri, 28th Jun 2024 11:51:21 UTC David Eustace viewed the envelope86.152.174.41 Fri, 28th Jun 2024 11:51:22 UTC Document emailed to simon@laurels4a.com18.171.239.63 Fri, 28th Jun 2024 12:18:02 UTC Simon Brown opened the document email.104.28.40.140 Fri, 28th Jun 2024 12:18:40 UTC Simon Brown opened the document email.86.154.139.146 Fri, 28th Jun 2024 12:18:50 UTC Simon Brown viewed the envelope86.154.139.146 Fri, 28th Jun 2024 12:19:31 UTC Simon Brown signed the envelope86.154.139.146 Fri, 28th Jun 2024 12:19:31 UTC Sent the envelope to John Males (john.males@watsons.co.uk) for signing86.154.139.146

Fri, 28th Jun 2024 12:19:32 UTC

Simon Brown viewed the envelope86.154.139.146

Fri, 28th Jun 2024 12:19:32 UTC Document emailed to john.males@watsons.co.uk3.8.100.210 Fri, 28th Jun 2024 12:19:49 UTC John Males opened the document email.51.141.86.138 Fri, 28th Jun 2024 12:20:52 UTC John Males viewed the envelope51.141.86.138 Fri, 28th Jun 2024 12:20:54 UTC John Males viewed the envelope51.52.143.115 Fri, 28th Jun 2024 12:22:30 UTC John Males signed the envelope78.33.68.177 Fri, 28th Jun 2024 12:22:30 UTC This envelope has been signed by all parties78.33.68.177 Fri, 28th Jun 2024 12:22:30 UTC John Males viewed the envelope78.33.68.177