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← The Sino-British Fellowship Trust

2023-12-31-accounts

THE SINO-BRITISH FELLOWSHIP TRUST (Charitable Incorporated Organisation) Registered charity number 1174487

REPORT AND FINANCIAL STATEMENTS

31 DECEMBER 2023

THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

REFERENCE, LEGAL AND ADMINISTRATIVE INFORMATION

Charity Number

The registered charity number is 1174487

Trustees

Mrs A.E. Ely, Chairman of the Trustees Mr P. J. Ely, BA(Hons), IPFA, Deputy Chairman Emeritus Professor R.J. Foot, FBA Professor C. Huang, DM, ScD, FRSB Sir C. Hum, KCMG Professor W.W.C. Luk, FREng, CEng, CITP, FBCS, MIET, FIEEE Mrs L. Thompson, OBE Dr F. Wood

Honorary Advisors

Lady P. Youde, OBE Emeritus Professor H.D.R Baker, BA, PhD

Office

23 Bede House Manor Fields Putney Heath London SW15 3LT

Bankers

CAF Bank 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4TA

Investment Advisers

CCLA Investment Management Ltd Senator House, 85 Queen Victoria Street London EC4V 4ET

Investment Custodian

HSBC Securities Services 8 Canada Square Canary Wharf, London E14 5HQ

Auditor

Hodson & Co Wiston House 1 Wiston Avenue Worthing, West Sussex BN14 7QL

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

The Trustees present their report along with the financial statements of the Charitable Incorporated Organisation (CIO) for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the CIO’s Constitution, 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 (effective 1 January 2019).

OBJECTIVES

The CIO gives grants from its income each year in furtherance of the Objects stated below;

In advancing education and training in any subject:

SIGNIFICANT ACTIVITIES

Annual grants to Institutions amounted to £343,365 (2022 £263,000) and individual grants of £127,801 (2022 £56,967) were awarded during the year.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

PUBLIC BENEFIT

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission in determining the activities undertaken by the CIO.

The CIO seeks to advance education (a statutory charitable purpose under the Charities Act 2011) through support for academic research exchanges between the UK and China. The public benefits of academic research are well recognised. The CIO supports researchers in a wide range of fields, in the sciences, social sciences, humanities and the arts. While the Covid-19 pandemic had severely limited the ability of organisations to make use of SBFT grants, increasing opportunities for travel in 2023 saw a recovery in grant usage.

Grants given during the year supported researchers across a wide range of academic fields. Examples are:

Funding to support art and museum curators take part in research projects at British institutions, for example the British Museum’s International Training Programme.

Funding to enable researchers in the humanities and social sciences from British Universities to conduct field work in China, with the aim of publication in academic journals and through conferences.

Funding to support joint scientific academic research projects for UK and Chinese researchers, for example through the Royal Society’s International Exchange Scheme; projects focusing on climate change are prioritised.

Funding to support a joint programme between UK and Chinese academics on the development of primary health care in China.

Funding to support academics in the study of Chinese languages, to enhance their research work.

GRANT MAKING POLICY

Grants are made each year to educational and public research institutions for awards to individual academics and postgraduate students, over a wide range of subject areas, for travel between the UK and China and related living costs. The individuals are selected by the institutions to comply with the Objects and Terms of Reference of the CIO, and the Trustees receive reports from the institutions to confirm compliance. If funds are available the CIO may make grants directly to individual academics for such research visits.

.

Although recovery from the pandemic continues, the world situation, and changing political situation in China, continue to present challenges. The Trustees are conducting a review of grant policy to ensure the charitable purpose of the CIO is fulfilled through the grants given.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

ACHIEVEMENTS AND PERFORMANCE

Although not yet fully recovered to pre-pandemic levels, more institutions were able to make use of their grants. Hong Kong Universities were supported in developing their links with UK universities, and UK institutions were supported in joint research projects with Chinese institutions and research visits to China.

The SBFT website continues to prove successful in increasing awareness of SBFT’s work. The Trustees awarded an unusually high number of individual grants in 2023, to make use of some of the funds which could not be used during the exceptional circumstances of the pandemic.

FINANCIAL REVIEW AND INVESTMENT POLICY

The income of the CIO derives solely from its investments and no appeals are made to the general public or any government agency for funds. Total income for the year to 31 December 2023 amounted to £437,241 (2022 £619,104). The income was lower this year due to a decision by the Trustees at the start of 2023 to move some of the investment income units to Accumulation ones until the demand from institutions for grants returned to pre pandemic levels. This has largely happened now and so for 2024 the accumulation units will be transferred back to income units.

Expenditure on charitable activities amounted to £565,940 (2022 £392,726). The grants awarded were significantly higher this year and have almost recovered to pre-pandemic levels. The net outgoing resources for the General fund were (£128,699) (2022 incoming resources of £226,378). The general reserves decreased to £1,398,471 (2022 £1,527,170)

In accordance with the powers given in the Constitution the Trustees have delegated responsibility for the management of the investment portfolio to CCLA, the investment managers.

The investment policy is to obtain a reasonable long-term overall return at a moderate level of risk. Performance is monitored by the Investment Committee of Mrs A.E. Ely, Mr P.J. Ely, Mrs L. Thompson and Dr F. Wood. There was still considerable market volatility, but a substantial recovery was recorded over the year. The final value of the endowment fund increased by £1,690,600 to £18,426,971 (2022 £16,736,371). The performance of the investment portfolio (net of fees) was an increase of 12.36% (2022 decreased by 8.67%) compared with the benchmark increase 13.28%. (2022 decrease of 10.12%)

The CIO appointed CCLA Investment Managers Ltd in early 2022. Trustees agreed with the Investment Managers that a ‘total return policy’ on investments would be appropriate, as this allows the CIO to mitigate the effects of market volatility causing income fluctuations. The long-term target for the fund is to beat inflation net of fees.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

FINANCIAL REVIEW AND INVESTMENT POLICY (continued)

The Trustees have assessed the current financial position of the CIO with reference to current activities, projections and cashflows and resources and have concluded that the CIO is a going concern.

RISK MANAGEMENT

The Trustees are responsible for the CIO’s risk management mitigation systems and reviewing procedures. The Trustees have examined the major strategic, business and operational risks which the CIO faces, and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks. The systems are kept under review throughout the year and are reviewed formally each year by the Finance Committee and Board.

FUTURE PLANS AND CHARITABLE STATUS

Following on from discussions with partner organisations the Trustees are considering a change in wording of the charitable purposes of the CIO. This is to ensure the CIO is able to respond to the impact of political developments in China, and indeed the wider world situation on academic researchers, in such a way as to fulfil its charitable aims.

RESERVES POLICY

The Reserves policy for the CIO has always been to maintain sufficient long-term Capital such that the investment income from that Capital provides sufficient income for the general reserves to fund the grants and overheads of the Charity. The Trustees have agreed that a prudent level of free reserves would be 100% of the likely grants and overheads for the next 12 months. A minimum level of free reserves would be 50% of the grants and overheads for the next 12 months.

The free reserves of the CIO at 31 December 2023 were £1,143,224 (2022 £1,266,182). The reserves have been greatly affected by reduced grant giving during the pandemic, but the objective is to manage a steady reduction in the reserves to the prudent level. The Trustees are of the opinion that, with the continuing volatility in the UK and world economies, it is reassuring to have higher than expected free reserves. This should enable the CIO to manage with confidence any unforeseen financial difficulties caused by market instability.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Sino-British Fellowship Trust is a Charitable Incorporated Organisation (CIO) registered on 4[th] September 2017. The registered charity number is 1174487. The CIO was set up to take over the work of the charity of the same name (registered charity number 313669). The assets of the former charity were transferred to the CIO on 1[st] April 2018 and the former charity is now entered on the Register of Merged Charities.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

The Trustees are set out on page 1. Trustees are appointed by the existing Trustees and serve for a period of five years after which period they may put themselves up for re-appointment. The Trustees meet at least twice a year to agree on the award of grants and to discuss the aims of the CIO.

The day-to-day management of the CIO has been delegated to Mrs A. E. Ely and Mr P. J. Ely. The CIO also has committees that are delegated the responsibility for overseeing and monitoring key areas of activity within the organisation and reporting to the Board of Trustees. In the opinion of the Trustees, the operations of the CIO in the past 12 months in reviewing and approving grant applications are in accordance with its objects.

TRUSTEE RECRUITMENT AND TRAINING

The Board of Trustees consists of at least five members who, as charity Trustees, have the legal responsibility for the effective use of the CIO’s resources in accordance with the Objects and Terms of Reference of the CIO. Trustees are not remunerated but reasonable expenses are paid.

The CIO does not have an active policy to recruit new Trustees, but approaches peoples known to have an interest in related activities or who have worked for Institutions the CIO has supported with grants.

Every prospective Trustee is provided with information about the CIO’s constitution, policies and activities together with information on the Charity Commission guidance. Trustees are offered the opportunity to attend further training courses should they wish to do so.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)

STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS

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

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the CIO and of the incoming resources and application of resources of the CIO for that year. In preparing these financial statements the Trustees are required to:

  1. select suitable accounting policies and apply them consistently;

  2. observe the methods and principles in the Charities SORP;

  3. make judgements and estimates that are reasonable and prudent;

  4. state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements, and

  5. prepare financial statements on the going concern basis unless it is inappropriate to assume that the CIO will be able to continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the CIO and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the CIO’s constitution. They are also responsible for safeguarding the assets of the CIO and hence 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 CIO’s website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to the Auditor

Each Trustee has taken steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the CIO’s auditor is aware of that information. The Trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Trustees on 27 June 2024 and signed on their behalf by:

P Ely

Trustee

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THE SINO-BRITISH FELLOWSHIP TRUST

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE SINO-BRITISH FELLOWSHIP TRUST FOR THE YEAR ENDED 31[ST] DECEMBER 2023

Opinion

We have audited the financial statements of Sino-British Fellowship Trust (the CIO) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 financial statements:

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 financial statements section of our report. We are independent of the CIO in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements 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 CIO’S ability to continue as a going concern for a period of at least 12 months from when the financial statements 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 other information comprises the information included in the annual report, including the Trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements 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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we

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THE SINO-BRITISH FELLOWSHIP TRUST

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE SINO-BRITISH FELLOWSHIP TRUST FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (continued)

conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the CIO and its environment obtained in the course of the audit, we have not identified any material misstatements in the Trustees report .

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 7, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the CIO’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 CIO or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditor under the Charities Act 2011, section 144 and report in accordance with regulations made under the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements 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 financial statements.

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THE SINO-BRITISH FELLOWSHIP TRUST

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE SINO-BRITISH FELLOWSHIP TRUST FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (continued)

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:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect noncompliance with all laws and regulations. If a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

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THE SINO-BRITISH FELLOWSHIP TRUST

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 auditors' 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’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Signed Hodson & Co, Statutory Auditor

Date: 27 June 2024

Hodson & Co Wiston House 1 Wiston Avenue Worthing, West Sussex BN14 7QL

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THE SINO-BRITISH FELLOWSHIP TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] DECEMBER 2023

STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENTS
Income from investments (Note 3a)
Interest
TOTAL INCOME
EXPENDITURE
Costs of raising funds
Investment management fee (Note 2a)
Expenditure on Charitable Activities
(Note 5)
Grants to British academics for study visits to
China – object (a)
Grants to Chinese academics for study visits
to Great Britain – object (b)
Promotion of Chinese language studies –
object (c)
Joint UK /China academic programmes, and
exchanges between Hong Kong and other
parts of China – object (d)
TOTAL EXPENDITURE
NET INCOME/(EXPENDITURE)
BEFORE GAINS AND LOSSES ON
INVESTMENTS
Net investment gains/(losses):
NET INCOME/(EXPENDITURE)
Transfer between funds
NET MOVEMENT IN THE FUNDS FOR THE
YEAR		 General
Fund
£
400,306
36,935
437,241
66,795
378,592
14,414
106,139
565,940
(128,699)
(128,699)
(128,699)		 Expendable
Endowment
Fund
£
175,258
175,258
(175,258)
1,865,858
1,690,600
1,690,600		 December
2023
Total
£
400,306
36,935
437,241
175,258
66,795
378,592
14,414
106,139
741,198
(303,957)
1,865,858
1,561,901
1,561,901		 December
2022
Total
£
610,807
8,297
619,104
181,862
111,324
162,798
9,366
109,238
574,588
44,516
(1,407,413)
(1,362,897)
(1,362,897)

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THE SINO-BRITISH FELLOWSHIP TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (continued)

RECONCILIATION OF FUNDS
NET MOVEMENT IN THE FUNDS
FOR THE YEAR
Funds Brought Forward
At 1st January 2023
FUNDS CARRIED FORWARD
31 DECEMBER 2023
Represented by:
Tangible fixed assets
Fixed assets investments
Net current assets
TOTAL NET ASSETS
31 December 2023		 General
Fund
(128,699)
1,527,170
1,398,471
255,247
1,143,224
1,398,471		 Expendable
Endowment
Fund
1,690,600
16,736,371
18,426,971
18,426,971
18,426,971		 December
2023
1,561,901
18,263,541
19,825,442
255,247
18,426,971
1,143,224
19,825,442		 December
2022
(1,362,897)
19,626,438
18,263,541
260,988
16,736,371
1,266,182
18,263,541

The notes on pages 16 to 26 form part of these financial statements

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THE SINO-BRITISH FELLOWSHIP TRUST

BALANCE SHEET AS AT 31[ST] DECEMBER 2023

FIXED ASSETS
Tangible Assets (Note 2b)
Leasehold property
Furnishings
Computer Equipment
Total Fixed Assets
Investments (Note 2a)
CURRENT ASSETS
Debtors, prepayments and accrued income
Income due from broker
Cash at bank and in hand
Total Current Assets
CURRENT LIABILITIES
Creditors:Amounts falling due within one year
Grants payable
Other creditors and accruals
Total Current Liabilities
Net current assets
NET ASSETS
THE FUNDS OF THE CHARITY (Note 1b)
Expendable Endowment (note 2a)
General fund
TOTAL CHARITY FUNDS
Approved by the Trustees on 27 June 2024
P Ely
Trustee		 December
December
2023
2023
£
£
252,573
1,373
1,301
255,247
18,426,971
29,225
100,917
1,109,034
1,239,176
87,300
8,652
95,952
1,143,224
19,825,442
18,426,971
1,398,471
19,825,442
and signed on their behalf
Christopher Hum
Trustee		 December
2022
£
257,728
1,526
1,734
260,988
16,736,371
9,903
126,611
1,244,142
1,380,656
106,300
8,174
114,474
1,266,182
18,263,541
16,736,371
1,527,170
18,263,541

The notes on pages 16 to 26 form part of these financial statements

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THE SINO-BRITISH FELLOWSHIP TRUST

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31[ST] DECEMBER 2023

Statement of Cash Flows
Note 7
Cashflows from operating activities
Cashflows from investing activities
Investment income
Rebate of fees
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Note 8
Change in cash and cash equivalents in the period
Cash and cash equivalents at 1 January 2023
Cash and cash equivalents at 31st December 2023		 2023
£
(572,349)
437,241
17,235
0
3,463,064
(3,480,299)
437,241
(135,108)
1,244,142
1,109,034		 2022
£
(506,550)
619,104
8,721
(1,072)
18,718,190
(19,422,047)
(77,104)
(583,654)
1,827,796
1,244,142

The notes on pages 16 to 26 form part of these financial statements

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THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023

The Sino British Fellowship Trust is a Charitable Incorporated Organisation which is registered with the Charity Commission in England and Wales Number 1174487.

1. ACCOUNTING POLICIES

a) Basis of preparing the financial statements

The financial statements of the Charitable Incorporated Organisation, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019) and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The Financial statements are prepared in sterling, which is the functional currency, and rounded to the nearest pound.

b) Fund Accounting

The expendable endowment fund represents the charity’s investments. The fund includes cash held by the CIO’s brokers, who have a discretionary management agreement. Investment gains, losses and management fees are included in the expendable endowment fund.

c) Income recognition

Investment income and interest are recognised under the accruals concept. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the CIO; this is normally upon notification of the interest paid or payable by the bank. The dividend is notified by the brokers each quarter and received in the following quarter.

d) Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the CIO to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

Resources expended are recognised under the accruals concept. Support costs represent the expenditure incurred in making and controlling grant awards. Governance costs represent the other expenditure associated with the constitutional and statutory requirements of the CIO.

e) Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

f) Taxation

The CIO is exempt from tax on its charitable activities. The charity 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 entity for UK Tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains to the extent that such income or gains are applied exclusively to charitable purposes.

g) Depreciation

Tangible fixed assets above a value of £500 are capitalised and are depreciated over their estimated useful life at the following rates:-

Leasehold property 2% on reducing balance
Furnishings 10% on reducing balance
Equipment 25% on reducing balance

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THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

1. ACCOUNTING POLICIES (Continued)

h) Critical accounting judgements and key sources of estimation uncertainty

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.

Useful economic lives of tangible assets:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect the current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See accounting policy note (above) for useful economic lives for each class of assets.

i) Fixed asset Investments

Investments are revalued to market value as at the balance sheet date and the surplus or deficit of this revaluation is shown as either gains or losses on the face of the Statement of Financial Activities. The main form of financial risk faced by the CIO is that of volatility in investment markets.

j) Costs of raising funds

Costs of raising funds comprise those costs directly attributable to managing the investment portfolio and raising investment income.

k) Charitable activities

Expenditure on charitable activities includes grants made, together with governance costs and support costs apportioned pro rata to the grants awarded, as shown in note 5.

l) Grants

Grants to institutions are recognised in the Statement of Financial Activities in the year in which the conditions have been fulfilled which apply to each grant.

Grants to institutions which have been agreed in principle but whose conditions have not yet been fulfilled are not recognised.

Grants to individuals are recognised in the Statement of Financial Activities in the year in which the commitment is made and the conditions have been met.

Grants whose conditions have been fulfilled, but which have not yet been paid are recognised as a liability in the balance sheet.

The CIO reserves the right not to pay a grant if funds are not available.

m) Going concern

The finance statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the levels of reserves for the charity to be able to continue as a going concern.

n) Basic financial instruments

The CIO only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

2(a). FIXED ASSET INVESTMENTS

Movement in fixed asset listed
investments
Units
Units
Income
Accumulation
Market value at 31 December 2022
922,149
Additions to investments at cost
Income units : fees rebated
793
Accumulation units : fees rebated
10
Disposals of investments
Disposals (transfers to accumulation units )
-187,935
Additions (Transfer from Income units )
15,477
Net gains /losses
Fees rebated
Net Management fees
Market value as at 31 December 2023
735,007
15,487
Expendable Endowment Fund
Investments at market value comprised:
Fixed Income Funds
Equity Mutual Funds
Equities
Other
COIF Charities investment fund : income
units
735,007
COIF Charities investment fund :
accumulation units
15,487		 December
2023
£
16,736,371
0
14,875
2,360
0
(3,463,064)
3,463,064
1,865,858
(17,235)
(175,258)
18,426,971
18,426,971
December
2023
£
0
0
0
0
14,586,218
3,840,753
18,426,971		 December
2022
£
17,613,957
19,422,047
0
0
(18,718,190)
0
0
(1,407,413)
(8,721)
(165,309)
16,736,371
16,736,371
December
2022
£
0
0
0
0
16,736,371
0
_16,736,371 _

18

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

2(b). TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS

Cost:
At 31 December 2022
Additions during the
period
Depreciation:
At 31 December 2022
Charge for the period
Net book value:
At 31 December 2023
Net book value
At 31 December 2022		 Leasehold
Property
£
285,280
0
285,280
27,552
5,155
32,707
252,573
257,728		 Furnishings
£
2,514
0
2,514
988
153
1,141
1,373
1,526		 Computer
Equipment
£
2,456
0
2,456
722
433
1,155
1,301
1,734		 Total
£
290,250
0
290,250
29,262
5,741
35,003
255,247
260,988

The leasehold property was brought in at a net value of £285,280 from the former charity whose work the CIO took over. The original cost in 2005 was £388,138.

The leasehold property is situated at 23 Bede House, Manor Fields, London, SW15 3LT and includes garage number 144. Both are held on a 999 year lease from 1 April 1984.

All assets are held for the use of charitable purposes.

19

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

3. INVESTMENTS

3 (a) Investment income is analysed as
follows:
Fixed Income funds
Equity Mutual Funds
Equities
Other
COIF Charities investment fund income units		 December
2023
£
0
0
0
0
400,306
400,306		 December
2022
£
23,510
44,124
30,471
16,639
496,063
610,807

3 (b) Investments where the market values are considered to be material are:

Number of
Shares/Units
Number of
Shares/Units
2023
2022
All investments are now held
with CCLA in the following
pooled funds
COIF Charities investment fund :
Income units
735,007
922,150
COIF Charities investment fund :
Accumulation units
15,487
0		 December
2023
December
2022
14,586,218
16,736,371
3,840,753
0
18,426,971
16,736,371

20

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

4. GOVERNANCE AND SUPPORT COSTS

Governance and Support costs

Support costs

Secretarial, financial and clerical assistance
Establishment expenses
Stationery, telephone, computer and website
General expenses
AGM and student liaison costs
Depreciation		 December
2023
£
35,651
17,004
1,931
1,779
7,664
5,741
69,770		 December
2022
£
26,374
16,039
1,660
1,144
3,225
5,650
54,092

Governance Costs

Professional fees
Accountancy fees
Audit fees
Legal fees
Trustees and other travel costs
Bank charges and interest		 December
2023
£
440
11,637
4,485
5,773
491
2,178
25,004		 December
2022
£
0
10,754
4,440
2,360
498
615
18,667

As stated in Note 1(d) support costs represent an apportionment of costs spent in making and controlling grant awards and governance costs are the costs associated with constitutional and statutory requirements of the CIO. The Trustees consider that the following costs are a reasonable allocation under this heading.

Total support and governance costs are apportioned pro rata to the grants awarded as shown in note 5.

21

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

5. CHARITABLE ACTIVITIES

Grants to British academics for study visits to
China – object (a)
UK Institutions:
British Academy
Universities China Committee London
Individuals (10)
Grants to Chinese academics for study visits to
Great Britain – object (b)
UK institutions:
British Museum
China Kadoorie Biobank
Great Britain China Educational Trust
Kingston University
School of Oriental and African Studies
St Anthony's College, Oxford
Universities China Committee London
Overseas Institutions:
Chinese University of Hong Kong
Hong Kong University
China Scholarship Council
Individuals (7)		 Grants
£
0
28,000
27,609
55,609
14,000
0
44,000
15,000
15,000
15,000
2,000
20,000
30,000
61,000
99,192
315,192		 Support and
Governance
Costs
£
0
5,632
5,554
11,186
2,816
0
8,851
3,017
3,017
3,017
402
4,023
6,035
12,270
19,952
63,400		 December
2023
Total
£
0
33,632
33,163
66,795
16,816
0
52,851
18,017
18,017
18,017
2,402
24,023
36,035
73,270
119,144
378,592		 December
2022
£
54,005
38,049
19,270
111,324
0
0
58,915
0
18,411
36,822
48,650
162,798

22

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

5. CHARITABLE ACTIVITIES (continued)

Promotion of Chinese language studies –
object (c)
UK Institutions
Great Britain China Educational Trust
Universities China Committee London
Individuals (1)
Joint UK /China academic programmes, and
exchanges between Hong Kong and other
parts of China – object (d)
UK Institutions
Royal Society
TOTAL GRANTS FOR YEAR		 Grants
£
6,000
5,000
1,000
12,000
88,365
88,365
471,166		 Support
and
governance
costs
£
1,207
1006
201
2,414
17,774
17,774
94,774		 December
2023
Total
£
7,207
6,006
1,201
14,414
106,139
106,139
565,940		 December
2022
£
2,455
4,910
2,001
9,366
109,238
109,238
392,726

There were 17 (2022: 8) grants to individuals during the year.

The CIO has agreed spending of £435,282 (2022: £488,012) in respect of grants expected to be fulfilled within the following year and £239,330 (2022: £465,407) in more than one year. Most grants are agreed on a 3 year basis with an annual payment made each year on the fulfilment of specific conditions and many long established grants are renewed after the 3 year period has expired.

23

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

6. STAFF COSTS

Salaries and Wages
Employer pension
contributions		 December
2023
£
34,819
832
35,651		 December
2022
£
25,614
759
26,373

2 members of staff have been employed through the year (2022 1). No trustees have been employed during the year. No employee received emoluments of more than £60,000 during the year.

CASHFLOW STATEMENT

Note 7
Net income/ (expenditure) for the period to 31st December 2023
Adjustments for:
Depreciation charges
(Gains)/losses on investments
Investment income and interest received
Net management fees
(Increase) /Decrease in Income due from Broker
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided/(used) operating activities
Note 8
Analysis of cash and cash equivalents
Cash held as part of investment portfolio
Cash at bank and in hand
Total cash and cash equivalents		 December
2023
£
1,561,901
5,741
(1,865,858)
(437,241)
175,258
25,694
(19,322)
(18,522)
(572,349)
December
2023
0
1,109,034
**1,109,034 **		 December
2022
£
(1,362,897)
5,650
1,407,413
(619,104)
165,309
(126,611)
(6,300)
29,990
(506,550)
December
2022
0
1,244,142
1,244,142

24

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

9. TRUSTEES

The Trustees are the key management personnel of the charity and did not receive any remuneration or benefit in kind for this year (2022: Nil). Travelling expenses of £ 410 (2022 £498) for relevant charitable activities were paid as necessary to 3 Trustees (2022 – 2 Trustees).

10. RELATED PARTIES

During the year grants of £50,000 (2022 £50,000) were paid to the Great Britain China Educational Trust. This institution has a Trustee in common with the charity. The grant is reviewed annually and have been approved unanimously at Trustees meetings.

The furnishings in Bede House were donated to the former Charity in 2005 by the Elizabeth Frankland Moore Foundation and the foundation has a Trustee in common with the Charity.

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS
Income from investments (Note 3)
Interest
TOTAL INCOME
EXPENDITURE
Costs of raising funds
Investment management fee (Note
1j)
Expenditure on Charitable
Activities (Note 5)
Grants to British academics for study
visits to China – object (a)
Grants to Chinese academics for
study visits to Great Britain – object
(b)
Promotion of Chinese language
studies – object (c)
Joint UK /China academic
programmes, and exchanges
between Hong Kong and other parts
of China – object (d)
TOTAL EXPENDITURE		 General
Fund
£
610,807
8,297
619,104
111,324
162,798
9,366
109,238
392,726		 Expendable
Endowment
Fund
£
181,862
181,862		 December
2022
Total
£
610,807
8,297
619,104
181,862
111,324
162,798
9,366
109,238
574,588

25

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2023 (Continued)

11. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES (continued)

NET INCOME/(EXPENDITURE)
BEFORE GAINS AND LOSSES ON
INVESTMENTS
Net investment gains/(losses):
NET INCOME/(EXPENDITURE)
Transfer between funds (Euro
adjustment)
NET MOVEMENT IN THE FUNDS
FOR THE YEAR

RECONCILIATION OF FUNDS
NET MOVEMENT IN THE FUNDS
FOR THE YEAR
Funds Brought Forward
At 1st January 2022
FUNDS CARRIED FORWARD
31 DECEMBER 2022
Represented by:
Tangible fixed assets
Fixed assets investments
Net current assets
TOTAL NET ASSETS
31 December 2022		 General
Fund
226,378
226,378
43
226,421
______
226,421
1,300,749
1,527,170
260,988
1,266,182
1,527,170		 Expendable
Endowment
Fund
(181,862)
(1,407,413)
(1,589,275)
(43)
(1,589,318)
_____
(1,589,318)
18,325,689
16,736,371
16,736,371
16,736,371		 December
2022
Total
44,516
(1,407,413)
(1,362,897)
(1,362,897)
_______
(1,362,897)
19,626,438
18,263,541
260,988
16,736,371
1,266,182
18,263,541

26