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2022-03-31-accounts

DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

Charity No: 1165837

THE CUNMONT CHARITABLE TRUST ANNUAL REPORT and ACCOUNTS For the year ended 31 March 2022

DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Trustees’ Annual Report

For the year ended 31 March 2022

The trustees present their report and accounts of the charity for the year ended 31 March 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (second edition – October 2019) .

Objectives and activities for the public benefit

The objectives of the Trust are to advance the charitable purposes of other bodies by making grants and providing financial support for charitable projects and activities. The trustees make decisions about which bodies receive grants and how the support will be structured.

The Trust furthers its charitable purposes for the public benefit through its grant-making policy. Grants will be made to registered charities proposed by individual Trustees and approved by the Trustees.

Achievements and performance

During the year to March 2022, the Trust received £67,325 (2021: £76,392) in investment income and the value of the investments increased by £239,680 (2021: £785,848). £1,750,000 of donations were made to the Trust by the Trustees, on which £437,500 of Gift Aid was claimed.

The Trustees paid approved grants of £30,000 to The Dynamic Earth Charitable Trust, Edinburgh Science Foundation and Engineering Development Trust and approved the following grants to be paid in the 2022/23 year:-

Financial review (including reserves policy)

Total income for the period excluding gains on investments amounted to £2,275,913 (2021: £76,392). Realised and unrealised gains on investments totalled £239,681 (2021: £785,848). Expenditure for the year amounted to £47,038 (2021: £48,746).

Investment Policy

The trustees recognise the difficulty of actively managing investments themselves or in choosing an active manager that will be reasonably certain to outperform in the future. The funds will therefore be invested in pooled vehicles with a large proportion in broadly-spread, low-cost passive funds together with suitable pooled vehicles received as donations. This gives a large spread of underlying securities and diversification is further improved by having underlying exposure to some fixed interest as well as equity securities, overseas as well as UK companies and more than one pooled fund. The performance (particularly the tracking error) of the investments will be reviewed periodically but infrequently.

Cash is held in bank accounts chosen by the corporate trustees. The trustees do not impose any ethical policy in selecting investments.

Reserves Policy

Donations from the Princes Exchange Foundation or from members of the Callander family will be treated as unrestricted endowments unless other conditions are stipulated by the donor. The unrestricted reserves at 31 March 2022 were £6,318,277 (2021: £3,849,721). The Trustees review the level of grants issued regularly and the accumulated surplus is intended to provide surety that in the event of a reduction in income generated the Trust would still be able to make grants.

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Trustees’ Annual Report

For the year ended 31 March 2022

Reserves Policy (cont’d)

In the case of capital endowments, income and capital elements will be accounted for separately and grants will, normally, be restricted to the income generated by the endowment.

Plans for future periods

The Trust will continue to receive and consider grant proposals and where appropriate make donations based on those proposals.

Risk management

The Trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and financing of the Trust and are satisfied that systems are in place to mitigate exposure to the major risks. As the Trust relies on donations and on its investment return in order to make donations, the principal risks faced by the Trust lies in the receipt of those donations and the performance of its investments. The Trustees have mitigated the investment risk by having a diversified investment portfolio.

Structure, governance and management

The Trust is a registered charity, number 1165837, and is constituted under a trust deed dated 29 October 2015. The trust deed was amended on 30 August 2016 to rename the Trust from The Callander Charitable Trust to The Cunmont Charitable Trust.

New trustees are appointed by Alex Callander, as the surviving settlor. The Trust Deed has no minimum or maximum number of trustees. Trustees do not need to be re-appointed at any time. The trustees are considered to be the key management personnel of the Trust and are not remunerated.

Reference and administrative information

Charity registration number 1165837 Trustees Alexander James Callander Rhona Ann Callander (Deceased 26 August 2022) TC Trustco Limited Edward James Callander (appointed 3 September 2021) Elizabeth Louise Callander (appointed 3 September 2021) Registered office Turcan Connell 12 Stanhope Gate London W1K 1AW Bankers Bank of Scotland 11 Earl Grey Street Edinburgh EH3 6BN Stockbrokers Rathbone Investment Management Limited Port of Liverpool Building Pier Head Liverpool L3 1NW Auditor Chiene + Tait LLP Chartered Accountants and Statutory Auditor 61 Dublin Street Edinburgh EH3 6NL 2

DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Trustees’ Annual Report

For the year ended 31 March 2022

Trustees’ responsibilities

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

The law applicable to charities in England & Wales requires the trustees to prepare accounts for each financial period which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

31 January 2023

Approved by the trustees on __ and signed on their behalf by:

TC Trustco

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Independent Auditor’s Report to the Trustees of The Cunmont Charitable Trust

For the year ended 31 March 2022

Opinion

We have audited the Accounts of The Cunmont Charitable Trust for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows and notes to the Accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the Accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the Accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the Accounts, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the Accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the Accounts are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees annual report other than the Accounts and our auditor’s report thereon. Our opinion on the Accounts does not cover the other information and except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the Accounts, our responsibility is to read the other information and in doing so consider whether the other information is materially inconsistent with the Accounts or our knowledge obtained in the audit or otherwise appear to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the Accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report this fact.

We have nothing to report in this regard.

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Independent Auditor’s Report to the Trustees of The Cunmont Charitable Trust

For the year ended 31 March 2022

Matters on which we are required to report by exception

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

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 3, the Trustees are responsible for the preparation of Accounts which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of Accounts that are free from material misstatement, whether due to fraud or error.

In preparing the Accounts, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Accounts

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the Accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the charity and the sector in which it operates and considered the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. This included but was not limited to the Charities Act 2011 and the Charities (Accounts and Reports) Regulations.

Our audit procedures were designed to respond to risks of material misstatement in the Accounts, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Independent Auditor’s Report to the Trustees of The Cunmont Charitable Trust

For the year ended 31 March 2022

Auditor’s responsibilities for the audit of the Accounts (continued)

We focused on laws and regulations that could give rise to a material misstatement in the charity's Accounts. Our tests included, but were not limited to:

There are inherent limitations in an audit of Accounts and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the Accounts, the less likely we would become aware of it. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the Trustees that represented a risk of material misstatement due to fraud.

A further description of our responsibilities for the audit of the Accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with The Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

CHIENE + TAIT LLP Chartered Accountants and Statutory Auditor 61 Dublin Street Edinburgh EH3 6NL

Date: 31 January 2023

Chiene + Tait LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Statement of Financial Activities

For the year ended 31 March 2022

Note
Income and endowments from:
Donations and Legacies
Gift Aid
Investment income
2
Other – investment compensation
Total income and endowments
Expenditure on:
Raising funds
3
Charitable activities
4
Total expenditure
Net gains on investments
7
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 2022
£
1,750,000
437,500
67,325
21,088
2,275,913
200
46,838
47,038
239,681
2,468,556
3,849,721
6,318,277		 2021
£
-
-
76,392
-
76,392
200
48,546
48,746
785,848
813,494
3,036,227
3,849,721

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the period.

All funds in both the current and comparative year are unrestricted.

The notes on pages 10 to 14 form part of these accounts.

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Balance Sheet

As at 31 March 2022

s at 31 March 2022
Note
Fixed assets
Investments
7
Current assets
Cash at bank and in hand
Accrued Income
Creditors: amounts falling due within one year
8
Net current assets
Net assets
Funds
Endowment funds		 2022
£
5,791,016
152,262
437,500
589,762
(62,501)
527,261
6,318,277
6,318,277		 2021
£
3,712,284
184,840
-
184,840
(47,403)
137,437
3,849,721
3,849,721

The accounts were approved and authorised for issue by the Trustees on _______ and signed on 31 January 2023 behalf of the board of trustees by:

TC Trustco

The notes on pages 10 to 14 form part of these accounts.

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Statement of Cash Flows

For the year ended 31 March 2022

Cash flows from operating activities:
Net (expenditure)/ income for the year
Adjustments for:
(Gains)/losses on investments
Dividends and interest from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash generated by/(used in) operating activities
Cash flows from investing activities:
Dividends and interest from investments
Purchase of investments
Net (used in)/cash provided by investing activities
Change in cash and cash equivalents in year
Cash and cash equivalents at 1 April 2021
Cash and cash equivalents at 31 March 2022		 2022
£
2,468,556
(239,681)
(67,325)
(437,500)
15,099
1,739,149
67,325
(1,839,052)
(1,771,727
(32,578)
184,840
152,262		 2021
£
813,494
(785,848)
(76,392)
-
(633)
(49,379)
76,392
-
76,392
27,013
157,827
184,840
Analysis of changes in net debt
Cash and cash equivalents		 2021
Cash-flows
2022
£
£
£
184,840
(32,578)
152,262

The notes on pages 10 to 14 form part of these accounts.

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Notes to the Accounts

For the year ended 31 March 2022

1 Accounting policies

(a) General information and basis of preparation

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 (second edition – October 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The accounts are presented in sterling which is the functional currency of the charity.

The trustees have assessed the Trust’s ability to continue as a going concern and, despite the ongoing pandemic, have reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future.

The significant accounting policies applied in the preparation of these accounts are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Funds

All funds are expendable endowments and are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our stockbrokers of the dividend yield of the investment portfolio.

(d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Notes to the Accounts

For the year ended 31 March 2022

1 Accounting policies (cont’d)

(d) Expenditure recognition (cont’d)

Costs of raising funds

The costs of raising funds consist of investment management fees and costs of maintaining the investment property.

Charitable activities

Costs of charitable activities include grants and donations made, governance costs, professional fees and trust management fees.

Grants and donations payable are payments made to third parties in the furtherance of the charitable objects of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Trust.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.

(e) Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

(f) Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.

(g) Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(h) Gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and the carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities and are allocated to the endowment fund.

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Notes to the Accounts

For the year ended 31 March 2022

2 Income from investments

Interest received
Corporate bonds
Dividends received
3
Expenditure on raising funds
Investment management fees
4
Charitable activities expenditure
Grants and donations (note 5)
Independent Examination
Legal fees
Bank Fees
5
Analysis of Grants and donations
Our Dynamic Earth
Outward Bound Trust
Edinburgh Science Foundation
Engineering Development Trust
Make 2nds Count
World Endometriosis Research Foundation		 2022
2021
£
£
103
-
4,604
7,235
62,619
69,157
67,325
76,392
2022
2021
£
£
200
200
2022
2021
£
£
42,500
45,000
1,824
1,736
2,514
1,801
-
9
46,838
48,546
2022
2021
£
£
12,500
12,500
2,500
15,000
5,000
5,000
12,500
12,500
5,000
5,000
-
-
42,500
45,000

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Notes to the Accounts

For the year ended 31 March 2022

6 Trustees' and key management personnel remuneration and expenses

The trustees, who are considered to be the key management personnel, neither received nor waived any remuneration during the year.

The trustees did not have any expenses reimbursed during the year.

7 Fixed asset investments

Market value
At 1 April 2021
Additions
Unrealised gains
At 31 March 2022
Cost:
At 31 March 2022		 2022
2021
£
£
3,712,284
2,926,436-
1,839,052
-
239,681
785,848
5,791,017
3,712,284
4,861,964
3,022,912

Investments which comprise more than 5% of the total portfolio at the year-end were as follows:

2022 2021
£ £
Baillie Gifford Corp Bond Inc. 448,520 302,009
Vanguard FTSE UK 468,536 257,798
Vanguard Life Strategy 100% 2,872,017 1,038,592
Vanguard Life Strategy 80% 1,882,501 2,000,764

8 Creditors: amounts falling due within one year

Accruals and deferred income
Grants payable		 2022
2021
£
£
5,001
2,403
57,500
45,000
62,501
47,403

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DocuSign Envelope ID: 62803D40-55CB-4C3D-B1CB-EDADE9D1CC1C

THE CUNMONT CHARITABLE TRUST

Notes to the Accounts

For the year ended 31 March 2022

9 Related party transactions

There were no related party transactions during the year other than in relation to donations from trustees (2021: £Nil).

10 Donations from Trustees

The aggregate value of donations from Trustees received during the year was £1,750,000 (2021: £Nil).

11 Subsequent events

The trust was notified during the year that it would receive a legacy. The value of this legacy could not be quantified at the year end.

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