Charity number: 1168357 THE SANDYS TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 WKS1311043660v1
CONTENTS REFERENCE AND ADMINISTRATIVE DETAILS REPORT OF THE TRUSTEES STATEMENT OF TRUSTEES. RESPONSIBILtTIES INDEPENDENT EXAMINER'S REF¥)RT TO THE TRUSTEES STATEMENT OF FINANCIAL ACTIVITIES 10 BAL4NCE SHEET 11 CASH FLOW 12 NOTES TO THE FIMNCIAL STATEMENTS 13-16 WKS1311043660v1
THE SANDYS TRUST REFERENCE AND ADMINISTRATIVE DETAILS Charity registration number 1168357 Prin¢ipal office clo Chades Russell Speechtys LLP Compass House Lypiatt Road Chdlenham Gloucestershi GL50 2QJ Bankers CAF Bank Ltd 25 Kings Hill Avenue Kings Hill Wesl MalliThJ Kent ME19 4JQ Solicitors Charles Russell Speechlys LLP Compass House Lypiatt Road Chdlenham Gloucestershire GLSO 2QJ Independent examiners Hazlewoods LLP Slaverton Court Slaverton Chellenham GL51 OUX Trusteès Christopher Page caroli Clarke l trustees served Ihroughoul the ped WKS1311043660v1
THE SANDYS TRUST REPORT OF THE TRUSTEES for the year ended 31 March 2022 The TnJslees and Directors present their annual rep1 and the unaudited financ4al statements for Ihe year ended 31 March 2022. In preparing the annual report and finanaal Statements the Tnjstees and Director5 have ajopled provisions of the Charities SORP (FRS 102) Accounting and Reporting by Charities-. Statement of Recommended Practice aPpIable to charities preparing their accounts in accordance with Ihe Financial Rep(ting Standard applKable in the UK and Republic of Ireland (FRS 1021 (effective 1 January 2019). STRUCTURE. GOVERNANCE AND IAANAGEMENT The Sandys Trust is a charitable trust wvemed by a Trust Deed ¢Jaled 21 June 2016. It is regislered as a charity with lh8 Charty Commission for England and Wales {Registered Chty Number 1168357}. The Trust was cre21ed from an initial transfer of cash from the Estate of Lady Sandys Deceased in acc0rdafe with the Trust Deed dated 21 June 2016. The nel resKlue of the Estate was appointed to the Sandys Trust by Deed on 28 Aw"12017. Further funds will be transferred lo the Sandys Trust during the Estate administration period unkn'l the adminislralion is complete. The names of Ihe Trustees who served during the year are sel out in the adminislratNe details on page 3. The Trustees are Ihe Execut$ of the Estate of Lady Sandys Deceased. Under the Trust Deed, ts statutory powers of appointing and additional Trustees under the Trustee kl 1925 apply but the statutory powers can be exercised to increase the nurnber of Trustees beyond four. The Trust Deed provides that in selecting indNiduals to be appointed as Trustees, the existing Truslees must have regard to the skills, knovAedge and experience needed for the effective administratjon of the Trust. The Trustees intend lo consider the possible appointment of additional Trustees after considering whether Ihere are additional skills required on the Board going forward. The Trustees are responsible for the genwal control and management of the administration of the Trust. Where necessary, they seek legal advice from their so110r$. Chades Russell Speechbys LLP. The Trust has no employees. The key marwent personnel MINISe the Truste95 Only. The Trustees received no remunerati in Ihe year for their rd6 as Trustees. The Trustees keep under revw the major operationa and strategic risks that the Trust faces and are satisfied that systems are put in place to minimise the possible effect of such risks on the Trust. As the charity is a grant making trust and has no employees, there are few material risks to on5ider. The principal nsk b the charity in Ihis calendar year was in rdalion lo the part of Ihe onlract for the sale of the property that was not yet comete. as il was conditional on certain events. The Iruslees remained in regular contact th the purchaser in this regard to ensure that the best outcome was achieved for the charity. The day lo day adminislration of th8 charity is rried out by profeSsior6 quaIrf1 staff of Charles Russell Speechtys LLP, and transactions require prior approval by trustees. WKS1311043660vl
THE SANDYS TRUST REPORT OF THE TRUSTEES (CONTINUED) for the year ended 31 March 2022 OBJECTIVITIES AND ACTIVITIES Background Lord and Lady Sandys in their lrfelimes sel up the Ombersley ConservatKsn Tnjst {Charty registered number 1025044) into which they had. in the eady 19$. transferred the majority of the Ombersley Court Esiale, induding agricultural land and residential properties. They retained the main house {Ombersley Court}. and ils contents, gardens and stables. Their hope had been that in due course the house and ils historic contenls would be kept together and join the remainder of the family's assets within the Ombersley Conservation Trust. For various reasons. after their deaths. this proved impossible, given Ihe Ombersley Conservation Trustees, assessment of their assets. liabiif(ies and objectives. Lady Sandys. default intention was that as far as possible. the remaining assets would either be retsined or sold, bul in both cases forchariiable purposes (subject to gifts lo Lord and Lady Sandys, families). In considering how lo pul these intentions into effect the Executors look broad-ranging advi from number of different angles including conservationists and other professional experts, and considered that advice with their agents. Savills (previously Smiths Gore. who had acted as agent for Lord Sandys for decades). Savills had earried out a full apprai521 of the drfferent options, and had also carried out and costed a full survey of the house. and considered all the town and countsy planning and architectural challenges. Commercially. given the as5els in the Estate, none of the considered proposals were viable. The onty practul solution was for the house to be sold. As a consequence. in following their wishes regarding the contents, Lord and Lady Sandys. Executors followed a strategy which. put simply. was intended on the one hand lo relain as far as possible the key house contents, including family portraits and bdongings, insofar as they had historic interest lo the public. al Ombersley, and then lo dispose ol the remainder of the assets. using the nel proceeds of those sales for chariiaue purposes in accordance with Lord and Lady Sandys. wishes. either by being paKI over to other charities, or throu Ihe Ombersley Conservation Trust. Followng professional advice, and tsking valuations from a qualified surveyor, the house and rts gardens were sdd on the open maiket. As conditions of the sale. the Executors required {and would in certain crrcumslances provrde financral assistance towards)". that part of the stsbles would beeome 2 museum. in which retained Sandys. artefacls could be shown lo the public. and the story of the SarKlys' family told" that The Walled Gardens should be used for charitable purposes.. and that important family portraits and fumilure should be lent to the new owner of Ombersley Court. (who had also bought 8 substantial proportion of other r(ems that were not thought to be 'key I, on the condition that The Court. for the first lime ever. was lo be opened lo the public. The longer- temi ownership of the retained chattels is being discussed with the Ombersley Conservation Trust (the obvious recipient). In going through the contents of the house. it wa5 clear that there were many item5 that were more approprialely placed in other museurns or galleries for the public to see. 50 in addition lo the general strategy, the Executor5 and Trustees have flowed a detailed plan in identifying the best ple for certain elements of the Sandys. cdleclion. Those details will become clear from the accounts. WKS1311043660v1
THE SANDYS TRUST REPORT OF THE TRUSTEES (CONTINUED) for the year ended 31 March 2022 OBJECTIVITIES AND ACTNMES (Cont) Background (Cont) In the course of the Estate administrat. but prior to the establishment of the Say$ Trust charity. the Executors made two charitable dOnatnS. £1milln was given to Revitalise Respite Holidays Icharily registration number 295072). a charity lch runs respite care holidays. which had been discussed with Lady Sandys, arKI of Umphin Island, in the Republic of Ireland. to Birdwatch Island {charity reg 5703. Rep Ireland). GNen the general strategy. as set out above. Inevita the transacth)ns wth the lyjyer of the house have been more complicated. and lengthy. than a straighfforward sale. The complications have been exacerbated by economic issues arising from the pandemic and prolonged planning application woli8tions which have required the original expedation and strategy lo be kept under review, 11 is clear that not all aspects of the general strategy will be achieved. However, a5 each of the different elements are completed. and cash becomes available, that cash is being transferred lo the SarKlys Tnjsl. wilh a view lo distribulions be9 made to other charilies in the relativety short term. Objecllv¢s The obj'ects of the Trust. as set tsjl in the Trust Deed. are to further such charrtable purposes (according to the law in England and waes) as the Trustees from time to time in their absolute disuelion dece. The Truslees have gNen due consideration to Charity Commission put4tshed widance on the operation of wblic benefit requKemenl. The Trustees have estat4ished a grant-Mang pdicy for the Twst. This provides that the Trust will only make antS lo UK registered charitS and that the fcKus wll be on {al educational charities registered in the UK {bl herilage arKJ conservation Charit operating in the UK Ic} chanlies working with disabled people and th&r carers in the UK Idl UK charities that provide educational, histor and cultural opportunities for young Peo {e> charitss OFwiThJ in Ombersley or more widety in Worcesh1re. The Trust does not accept unsoli¢iled grant applutions. Instead. the Trustees actively seek appropriate charities to support in line with the Trust's grant making pc4icy. Prlnclpal a¢tivitles for public bgnrfrt The Trustees undertook considerable work in assessing Nthether grfts or loans of paintings and historical items could be made to museums. galleries and eduCatnal institutions. but COVID 19 delayed the comtdetion of arra[ementS. A number of the grfts and loans arranged have been comFdeled in the 202112022 financ1 year. lVKS1311043660v1
THE SANDYS TRUST REPORT OF THE TRUSTEES (CONTINUED) for the year ended 31 March 2022 ACHIEVEMENT AND PERFORMANCE Raview of actlvllies and future developments As indicated above. significanl preparation was undertaken during the year in developing the future grant programrne lo be undertaken in furtheTarKe of the charitable objects of the Trust. Although some loans and gtfts had been arranged in this year. iwo signrficanl, high profile loans of high value paintings did not proceed, due lo the impacl on the proposed recipient charities, financial position due to the Covid palldern. and the arrangements for these loans are still on hold. Other grfts have been delayed. The Trustees intend to make substantial financial grants to a number of charities over a period of the next 2-3 years. The Trustees also intend whwe approwiale to enter into arrangements with museums and galleries to provide for the loan or gift of paintings or histori1 items once received from the Estate of Lady Sandys, thereby enabling greater public a$ lo such painting5 and item5. FINANCIAL REVIEW The total income of the Trust durirvJ the financial period was £177.400. The total eXpelture of the Tnjst during the financial period wa5 £350,957. As indicated al)ove. il is Ihe Trustees. intentHJn to apply inr*)me and capital in the making of grants in furtherance of the charitsble objects of the Trust. The Trustees intend lo keep sufficient liquid ndS in reserve to meet ongoiThJ expen(Jilure associated with the administration of the Trust. INDEPENDENT &XAMINERS Hazlewoods LLP have expressed their willingness to continue in office. ned on behalf of the bo of Trustees on.................................. Christopher Pago Trustee WKS1311043660v1
THE SANDYS TRUST STATEMENT OF TRUSTEES, RESPONSIBIUTIES for the year ended 31 March 2022 The Trustees are responsit4e for preparing the annual re[ and the financh31 statements of the Trust in accordance with appluble law and rewlatK)ns. The law applicable lo charities in EnglarKI and Wales requires the Trustees to prepa financFal slalements for each financial year that give a true and fair view of the stale of affairs of the Trust and of the incoming resources and ol the applutton of resources of the Trust for that year. In preparing these financial statements the Trustees are required to.. sdect suitable aOUntIng Fdicie5 and then apply them ccvBislendy: make judgements and estimates that we reasonable and prLthnt; observe the MelS and prifapleS in Ihe Charit¥ SORP: and prepare the finanaal statements on Ihe g)iry c¢)n¢ern basis unless il is inappropriate lo presume that Trust wll continue in operation. The Trustees are responsible for keeping accounting records that are sufficnI to show and explain the Twsl's transactn5 and disdose with reasonalje acwracy al any lime the financial position of the Trust and enable them lo ensure that the finanual slalemen15 comply with applKable law. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and deteclH)n of fraud and other irregularities. S*3n8d on behalf of the board of Trustees on ..... Christopher Pag• Trustee WKS1311043e60v1
THE SANDYS TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES ON THE UNAUDITED FINANCIAL STATEMENTS for the year ended 31 March 2022 I rewrt on the financkal statements of the charity for the year eThled 31 March 2022. which comprise the statement of financial aclivilies, the balar sheet and the related noles. These financial slalements have been prepared under the hislorical cost conventw and the lUntIng policies set out therein. Respectlve Responsibiliti•s of Trust•es and Examin•r The Trustees are responsible the weparalion of ihe financial stalements. The Charity's Trustees consider that an audit is not required for this year under section 144 of Ihe Charities Act 2011 Ilhe Charities Act) and that an independent examination is needed_ The Charity's gross income exceeded £25.000 and l am qualifie(I lo undertake the examination by being a qualified member of th8 Inslrtule of Chartered Accountants. Having satisfied mysdf that the Charity is rK)t subject to audit and is eligible for independent examination. it is my responsibility to.. examine the financial statements under section 145 of the Charities Act.. lo follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5Mb) of the CharItS Act. and lo slate whether particular matters have come to my attention. Basls of Independent Examiner's Rgport My examination was carried out in accordance with the general Directions gNen by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the financial slalemenls presenled with those records. 11 also includes consideration of any unusual items or disclosures in the financial sfalemenls, and seeking explanations from you as Trustees concerning any such mallers. The procedures undertaken do not provide all the evidence that would be required in an audit and consequenlty no opinion is gwen as to whether the financial statements present a Irue arKI fairview. and the rewl is limite(J to those matters sel wl in the slalemenl below. Indep•ndent Examinerfs Statemw In COnnectn wrth my examination. no matter has come to my attention lo Indte Ihal.. accounting records have not been kept in accordan with section 130 of the Charities AGt'. the financial statement5 do not accord wtth such records-. where financial statements are prepared on an accruals basis. whether they are not consislenl th the Charities SORP IFRS102) any matter, which in my opinion. should be drawn lo the attenlKJn of the reader lo gain a proper understanding of the financial statements. Scoll LavdTencè ACA. DChA HAZLEWOODS LLP Slaverton Court Siaverlon Chellenham GL51 OUX Date.. 28 March 2023 WKS1311043660v1
THE SANDYS TRUST STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 March 2022 Note 2021 Unr•strlcted Funds Unrestricted Funds Incomo: Donations transferred from Estate 177.400 177,400 Exp¢nditure: Gifts of chattels and cash to charitable bodies Adminislration expenses 337,800 13,157 8.069 350.957 8.069 NET MOVEMENT IN FUNDS 1173.557) (8,069) Total funds Ixought forwwd 2.411.718 2,419,787 Total funds carrled fonvard 2238.161 2.411.718 This Statement of Financial Affairs includes all gains arKI10sses in the year and therefore a separate Statement of total recognised gain5 and losses has not been prepared. l of above OUnts relate to CODtinuing *ivities. 10 WKS1311043660v1
THE SANDYS TRUST BALANCE SHEET as at 31 March 2022 Note 2022 2021 FIXED ASSETS Tangible assets CURRENT ASSETS Debtors Cash in hand and al bank 536.705 1.711.256 2.389.105 31.413 2.247.961 2.420,518 LIABILITIES Creditors.. amounts due within one year {9,800) (8.800) NET ASSETS LESS CURRENT LIABILMES 2.238.161 2.411.718 NET ASSETS 2,238,161 2,411,718 THE FUNDS OF THE TRUST Unrestricted Funds 2,238,161 2,411,718 The ftnancial slatements were approved by Ihe Trustees on ... Christopher Page Trustee Caroline Clarke Trustee WKS1311043660v1
THE SANDYS TRUST CASH FLOW as at 31 March 2022 2022 Cash from opgrating actlvltles Net movement in funds (173.557) (8,069) Interest received (IncreaseyDecrease in debtors 1.852.400 39,438 Increasel(Dernse) in credrtW8 (8,200) Cash from investlng aclivitios Interest received Movement in cash 1.679.843 23.169 Cash at start of the year 31,413 8,244 Cash at end of the year 1.711.256 31.413 12 WKS1311043660v1
THE SANDYS TRUST NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022 ACCOUNTING POLICIES The principal accounting policies are summarised below. The accounting wlicias have been applied consislenlly throughout the period. Ba8ls of Accountlng The financial slalefflenls have been prepared under the hislorul cost convention, adopts.ng the fdlowing accounting poIleS. all of whieh are in accordance wrth the Accounting and Reporting by Charities- Slalemenl of Recommende(I Practice apleable lo charities preparing their Financial slalements in accordance with the Financial Report Standards applicable in the UK and Republic of Ireland IFRS 102) issued on 16 July 2014. the Financial Reporting Standard applicable in the United lQ"ngdom arKI the Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements are presented in Pounds SterliThJ and have been rounded to the nearest pound. Golng Concern The Trust has cash resources and no requirement for external fvnding. The Tnjslees have a reasonable expectation thal the Tnjst has adequate resources and that there are no material uncertainties aboul the Trusl's ability lo continue in operational existence for the foreseeable future. They belwe the going concem basis of accounting appropriate in preparing the financial statements_ Income and expendlture All income is recognise(l in full in the stalement of financial aclivities when receivate. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure. il is probable that a transfer of economic benefils will be required in selllement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been dassrfie(J un(Jer headings that aggregate all cost related to the catewry. Where costs cannot be directly attributed to Partlar headings they have been allocated to aclNilies on a basis conStent the use of re%)urces. Debtors Trade arKI other debtors we recognised at the settlemenl amount due after ary trade discount offered. Prepayments we valued al the amount prepaid net of any trade discounts due. Cash at bank in hand Cash al bank includes cash on hand and other short term htghly liquid investments that readily convertible lo a known amount of cash an¢Y are subject to an insignrfunl risk of change in value. Fund accountlng The general fund5 consist of accumulated surpluses and other fijnds which the charity may use for any purposes at ils discretion. 13 WKS1311043660v1
THE SANDYS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 March 2022 Donations transferred from Estat• Challels of £177.4(M) were approrrriated lo the trust by Ihe Executors of the Estate of Ihe late Lady Patricia Simpson Sandys at probate value1£177.400) and subsequently grfted lo charitable bodies during the finarrial year. Gifts to charltable bodles 2022 2021 Chattels: Worcester Cathedral Bishop's Bible arKt other books Historic Royal Palaces Family miniatures 40,000 137.400 Othgr. IOU as$NJned lo Gemini Omberthy CcMJrt Charity 120,400 Cash: Ombwsley Spire and Church Appeal Falkland Stewardship Trust {re Garvellachsl International Futures Forum Ire Garvellachs) 25.CM)O lo.0 S,OCKJ 337,800 Débtors 2022 2021 Conditional sales proceeds Cash held by Executors of the Estate of LY Sandys Cash held by Executors of the Estate of Sandys- on escrow IOU agreement with purchaser of Ombersley Court Reversal of fees charged in error 500,(M)O 1.018.705 518,705 b) 750,000 120.400 18,0 $36.705 2.389.105 a) The original agreement sel out the maximum surn due from the purchaser of £1 mli lion. which was secured against a prop. per speryal condibon 20 of the sa Aeement and subsequent variat)n5. If the wrchaser had donated £1 million to the charity RevitalBe. then this sum would not have been due to the Sandys Trust. If the purchaser did not make the donation to Revitslise. then either the £1 millKJn was due lo the Sandys Trust. or, rf the purchaser sold the property on which this sum was Secured. a fomiula applied to the amount due depending on the value achieved in propety sale. 14 WKS13110436e4)vl
THE SANDYS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 March 2022 Debtors {¢ont) al The sale terms were renegolialed with the purchaser in December 2021. and the Trustees accepted £SOO.000 rather than the maximum conditional proceeds of £1.000,000 given that the sale of the property that this was secured against would not have resulted in a grealer sum re1vable by the Charity (and indeed was eslimaled at Nil by Savi11s}- bl £750.OIJ) of th8 proceeds of sale of Ombersley Court held by the Executors of Ihe Estate of Lady Sandys and received by Ihem on 15 November 2019 is held in "Escrovf for up lo three years from the completion dale of 8 February 2019 as per special condilion 21 of the sale agreement and subsequent varialn$. This sum will be retained by the Sandys Trust as unfettered woceeds rf the purchaser does not oblain planning consent for the use of the Walled Garden and stae5 al Ombersley Court for charitable purposes, obtain £750,000 of match funding and complete a lease of the property lo the Gemini Ombersley Court Charity by 02.05.2022. Followng the renewliation of the sale terms wlh the purchaser in December 2021. these funds were released from Es(xow to generd funds. and will not be retumed to the purchaser for the proposed development. cl £120,400 in respect of an IOU agreement between the wrchaser of Ombersley Court and the Iwslees of The Sandys Trust per special condrtion 21.1 of the variation of the sale agreement. This balan was assigned to the Gemini Charity in 2022. Creditors due within onÈ year 2022 2021 Chades Russell Speechlys lega fees Hazlewoods audit fees 3,600 6.200 3,600 5.200 9,800 8,800 Related party information Christopher Page. a Twstee of the Trust. i8 a partner of Charles Russell Speechlys LLP. The provision for legal fees is lor services prOVed by employees of the firm for adminislralion and legal adv. 15 WKS1311043660v1
THE SANDYS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 March 2022 Payments to Trustees None of the Trustees received Y remuneration for their Servi$ as a Trustee during Ihe course of the year. nor were any expens85 reimbjrsed lo the Trustees. 16 WKS1311043660v1