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← The Sino-British Fellowship Trust

2024-12-31-accounts

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

REPORT AND FINANCIAL STATEMENTS

31 DECEMBER 2024

THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024

REFERENCE, LEGAL AND ADMINISTRATIVE INFORMATION

Charity Number

The registered charity number is 1174487

Trustees

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

Honorary Advisors

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

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 2024 (continued)

The Trustees present their report along with the financial statements of the Charitable Incorporated Organisation (CIO) for the year ended 31 December 2024. 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

On 27 June 2024, following consultation with partner organisations and after obtaining the approval of the Charity Commission, the Trustees approved revised charitable objects. The new objects are designed to ensure the CIO is able to support academic researchers and fulfil its charitable aims as UK/China relations develop in a time of global turbulence and uncertainty.

The CIO gives grants from its income each year in furtherance of the Objects stated below; The Objects of the CIO are to advance education and training in any subject:

SIGNIFICANT ACTIVITIES

(2023 £127,801) were awarded during the year.

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. The aftermath of the pandemic combined with the wider geopolitical situation continued to have an impact on researchers, but most organisations were able to make good use of their grants during the year..

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

Funding to enable the reestablishment of research links and joint conservation projects at British institutions such as the British Library, notably contributing to the International Dunhuang Programme

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

PUBLIC BENEFIT (continued)

Funding to enable researchers in the humanities and social sciences from British Universities to conduct field work in China, and to collaborate with colleagues in Chinese universities. Such collaborations and research visits have frequently resulted in reputable publications.

Funding to support joint scientific academic research projects for UK and Chinese researchers, for example in the fields of medicine and responses to climate change

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.

During the year the Trustees conducted a review of grant making policy. They concluded the best use of SBFT resources is in grants to organisations, as this allows a wide range of academic research areas to be supported with a small SBFT administrative team. The Trustees have therefore closed the individual grant award scheme. Increased grants for existing partnerships, and development of new partnerships, are both being explored.

ACHIEVEMENTS AND PERFORMANCE

As part of the review of its charitable objects, SBFT discussed existing grant arrangements with its partners and has moved to follow up on those discussions. Existing partnerships have been renewed (for example, with the Royal Society) and new opportunities developed (for example the SOAS grant now includes support for a PhD researcher as well as the longstanding travel grant). A new partnership with the University of Oxford China Centre is also being developed.

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 2024 amounted to £542,842 (2023 £437,241).

Expenditure on charitable activities amounted to £548,835 (2023 £565,940). The net outgoing resources for the General fund were £5,993 (2023 outgoing resources of £128,699). The general reserves decreased to £1,392,478 (2023 £1,398,471).

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, Sir C. Hum, Mrs L. Thompson and Dr F. Wood.

There was still considerable market volatility, but nevertheless the final value of the endowment fund increased by £451,330 to £18,878,301 (2023 £18,426,971). The total performance for the year of the pooled investment fund(net of fees) was an increase of 5.08% (2023 increase of 12.36%) compared with the benchmark increase of 15.3% (2023 13.28%) which was disappointing.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

FINANCIAL REVIEW AND INVESTMENT POLICY (continued)

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.

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

The Trustees continue to monitor the volatile political situation worldwide, particularly developments in China, and to consider how best to support researchers in the current environment.

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 2024 were £1,141,337 (2023 £1,143,224). Grant giving has increased since the pandemic and the objective continues to be a steady, managed 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.

The Trustees are set out on page 1. During the year, Mr C. Wood CMG was appointed to the Trustee Board. His recent experience as Consul-General in Shanghai is a valuable addition to the Board. 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.

At the Trustees Meeting in June 2024 Mrs A. Ely stepped down as Chair of Trustees. Mr P. Ely was elected Chair of Trustees, and Sir C. Hum Deputy Chair. Mrs Ely became a Trustee of the former charity in 1985, and from 1997, as Honorary Director, took on much of the day to day work of the charity. In 2008 she was elected Chairman of Trustees. She developed partnerships encouraging academic links between UK, Hong Kong and mainland Chinese researchers. and also oversaw the move from an unincorporated charity to a Charitable Incorporated Organisation, The Trustees were delighted that Mrs Ely had agreed to remain on the board and unanimously agreed she should have the title of Chair Emerita.

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THE SINO-BRITISH FELLOWSHIP TRUST

ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2024 (continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The day-to-day management of the CIO has been delegated to Mr P. J. Ely and Sir C. Hum. The CIO also has committees to which is 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 people 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 2024 (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 June 2025 and signed on their behalf by:

Sir C Hum

Deputy Chair of Trustees

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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 2024

Opinion

We have audited the financial statements of Sino-British Fellowship Trust (the CIO) for the year ended 31 December 2024 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

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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 2024 (continued)

rise to a material misstatement in the financial statements themselves. 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 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 6, 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 a Report of the Independent Auditors 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 2024 (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

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE SINO-BRITISH FELLOWSHIP TRUST FOR THE YEAR ENDED 31[ST] DECEMBER 2024 (continued)

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: …………… 2025 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 2024

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
£
500,000
42,842
542,842
144,771
297,036
4,806
102,222
548,835
(5,993)
(5,993)
(5,993)		 Expendable
Endowment
Fund
£
173,119
173,119
(173,119)
624,449
451,330
451,330		 December
2024
Total
£
500,000
42,842
542,842
173,119
144,771
297,036
4,806
102,222
721,954
(179,112)
624,449
445,337
445,337		 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

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THE SINO-BRITISH FELLOWSHIP TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] DECEMBER 2024 (continued)

RECONCILIATION OF FUNDS
NET MOVEMENT IN THE FUNDS
FOR THE YEAR
Funds Brought Forward
At 1st January 2024
FUNDS CARRIED FORWARD
31 DECEMBER 2024
Represented by:
Tangible fixed assets
Fixed assets investments
Net current assets
TOTAL NET ASSETS
31 December 2024		 General
Fund
(5,993)
1,398,471
1,392,478
251,141
1,141,337
1,392,478		 Expendable
Endowment
Fund
451,330
18,426,971
18,878,301
18,878,301
18,878,301		 December
2024
445,337
19,825,442
20,270,779
251,141
18,878,301
1,141,337
20,270,779		 December
2023
1,561,901
18,263,541
19,825,442
255,247
18,426,971
1,143,224
19,825,442

The notes on pages 15 to 25 form part of these financial statements

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THE SINO-BRITISH FELLOWSHIP TRUST

BALANCE SHEET AS AT 31[ST] DECEMBER 2024

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		 December
2024
£
7,215
126,507
1,066,427
1,200,149
50,000
8,812
58,812		 December
2024
£
247,522
1,236
2,383
251,141
18,878,301
1,141,337
20,270,779
18,878,301
1,392,478
20,270,779		 December
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

Approved by the Trustees on ……….. June 2025 and signed on their behalf

Sir C Hum C Wood

The notes on pages 15 to 25 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 2024

Statement of Cash Flows
Note 7
Cashflows from operating activities
Cashflows from investing activities
Investment income
Rebate of fees
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 2024
Cash and cash equivalents at 31st December 2024		 2024
£
(585,449)
542,842
18,373
3,225,248
(3,243,621)
542,842
(42,607)
1,109,034
1,066,427		 2023
£
(572,349)
437,241
17,235
3,463,064
(3,480,299)
437,241
(135,108)
1,244,142
1,109,034

The notes on pages 15 to 25 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 2024

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 2024 (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 2024 (Continued)

2(a). FIXED ASSET INVESTMENTS

Movement in fixed asset listed investments

Movement in fixed asset listed
investments
Market value at 31 December 2023
Additions to investments at cost- new
brokers
Income Units : fees rebated
Accumulation units : fees rebated
Disposals (transfer to/from accumulation
units )
Additions (transfer to / from Income units )
Net gains /losses - new brokers
Fees rebated
Net Management fees
Market value as at 31 December 2024
Expendable Endowment Fund
Investments at market value comprised:
COIF Charities investment fund : income
units
COIF Charities investment fund :
accumulation units		 Units
Units
Income
Accumulation
735,007
15,487
173
58
-13,170
164,586		 December
2024
£
18,426,971
3,438
14,935
(3,225,248)
3,225,248
624,449
(18,373)
(173,119)
18,878,301
18,878,301
December
2024
£
18,259,223
619,078
18,878,301		 December
2023
£
16,736,371
14,875
2,360
(3,463,064)
3,463,064
1,865,858
(17,235)
(175,258)
899,766
2,375
899,706
2,375
89,706
2,375		 18,426,971
18,426,971
December
2023
£
14,586,218
3,840,753
18,426,971

17

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2024 (Continued)

2(b). TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS

Cost:
At 31 December 2023
Additions during the year
Disposal
Depreciation:
At 31 December 2023
Charge for the year
Depreciation on disposal
Net book value:
At 31 December 2024
Net book value
At 31 December 2023		 Leasehold
Property
£
285,280
0
0
285,280
32,707
5,051
0
37,758
247,522
252,573		 Furnishings
£
2,514
0
0
2,514
1,141
137
0
1,278
1,236
1,373		 Computer
Equipment
£
2,456
2,299
-1,000
3,755
1,155
795
-578
1,372
2,383
1,301		 Total
£
290,250
2,299
-1,000
291,549
35,003
5,983
-578
40,408
251,141
255,247

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.

18

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2024 (Continued)

3. INVESTMENTS

December December December December
2024 2023
3 (a) Investment income is analysed as
follows: £ £
COIF Charities investment fund income units 500,000 400,306
500,000 400,306
3 (b) Investments where the market values are considered to be
material are:
Number of Number of December December
Shares/Units Shares/Units
2024		 2023
2024 2023
All investments are now held with
CCLA in the following pooled funds
COIF Charities investment fund : Income
units 899,766 735,007 18,259,223 14,586,218
COIF Charities investment fund :
Accumulation units 2,375 15,487 619,078 3,840,753
18,878,301 18,426,971

19

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2024 (Continued)

4. 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
Loss on sale of Computer equipment
Depreciation
Governance Costs
Professional fees for investment review
Accountancy fees
Audit fees
Legal fees
Trustees travel costs
Bank charges and interest		 December
2024
£
41,347
16,940
2,406
486
5,643
422
5,983
73,227
December
2024
£
0
11,331
4,980
0
472
2,004
18,787		 December
2023
£
35,651
17,004
1,931
1,779
7,664
0
5,741
69,770
December
2023
£
440
11,637
4,485
5,773
491
2,178
25,004

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.

20

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2024 (Continued)

5. CHARITABLE ACTIVITIES

Grants to British academics for study
visits to China – object (a)
UK Institutions:
British Academy
British Library
Needham Research Institute
School of Oriental & African Studies
Universities China Committee London
Overseas Institutions:
Hong Kong University
Individuals (0)
Grants to Chinese academics for study
visits to Great Britain – object (b)
UK institutions:
British Library
British Museum
Great Britain China Educational Trust
Kingston University
Needham Research Institute
School of Oriental & African Studies
St Antony's College, University of Oxford
Universities China Committee London
Overseas Institutions:
Chinese University of Hong Kong
Hong Kong University
Hong Kong Metropolitan University
(previously OUHK)
China Scholarship Council
Individuals (6)		 Grants
£
44,000
21,500
2,000
20,000
27,000
6,000
120,500
1,000
14,000
50,000
14,000
15,000
15,000
4,000
24,000
20,000
32,031
58,206
247,237		 Support
and
Governance
Costs
£
8,862
4,331
403
4,028
5,438
1,209
24,271
201
2,820
10,071
2,820
3,021
3,021
806
4,835
4,028
6,452
11,724
49,799		 December
2024
Total
£
52,862
25,831
2,403
24,028
32,438
7,209
0
144,771
1,201
16,820
60,071
0
16,820
18,021
18,021
4,806
0
28,835
24,028
38,483
69,930
297,036		 December
2023
£
0
0
0
0
33,632
0
33,163
66,795
0
16,816
52,851
18,017
18,017
18,017
2,402
24,023
36,035
73,270
119,144
378,592

21

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2024 (Continued)

5. CHARITABLE ACTIVITIES (continued)

Promotion of Chinese language studies –
object (c)
UK Institutions
Great Britain China Educational Trust
Universities China Committee London
Individuals (0)
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
£
4,000
4,000
85,084
85,084
456,821		 Support
and
Governance
Costs
£
806
806
17,138
17,138
92,014		 December
2024
Total
£
0
4,806
0
4,806
102,222
102,222
548,835		 December
2023
£
7,207
6,006
1,201
14,414
106,139
106,139
565,940

There were 6 (2023:17) grants to individuals during the year.

The CIO has agreed spending of £341,630 (2023: £435,282) in respect of grants expected to be fulfilled within the following year and £391,985 (2023:£239,330) 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.

22

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2024 (Continued)

6. STAFF COSTS

Salaries and Wages
Employer pension contributions		 December
2024
£
40,419
928
41,347		 December
2023
£
34,819
832
35,651

2 members of staff have been employed through the year (2023: 2). 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 2024
Adjustments for:
Depreciation
charges
Loss on sale of computer equipment
Additions of Computer equipment
(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
ote 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
2024
£
445,337
5,983
422
(2,299)
(624,449)
(542,842)
173,119
(25,590)
22,010
(37,140)
(585,449)
December
2024
0
1,066,427
1,066,427		 December
2023
£
1,561,901
5,741
0
0
(1,870,331)
(437,241)
179,731
25,694
(19,322)
(18,522)
(572,349)
December
2023
0
1,109,034
1,109,034

Note 8

23

THE SINO-BRITISH FELLOWSHIP TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2024 (Continued)

9. TRUSTEES

The Trustees are the key management personnel of the charity and did not receive any remuneration or benefits in kind for this year (2023: Nil). Travelling expenses of £472 (2023 £ 410) for relevant charitable activities were paid as necessary to 3 Trustees (2023 – 3 Trustees).

10. RELATED PARTIES

During the year grants of £50,000 (2023: £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 (pages 12 and 13)

The Statement of Financial Activities on pages 11 and 12 show the position as at 31 December 2024. Shown below are the comparative figures for the previous year, 2023.

Statement of Financial Activities as at 31 December
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		 2023
General Fund
£
400,306
36,935
437,241
66,795
378,592
14,414
106,139
565,940		 Expendable
Endowment
Fund
£
175,258
175,258		 December
2023
Total
£
400,306
36,935
437,241
175,258
66,795
378,592
14,414
106,139
741,198

24

THE SINO-BRITISH FELLOWSHIP TRUST

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

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
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)		 Expendable
Endowment
Fund
(175,258)
1,865,858		 December
2023
(303,957)
1,865,858
(128,699) 1,690,600 1,561,901
(128,699)
(128,699)
1,527,170
1,398,471
255,247
1,143,224
1,398,471		 1,690,600
1,690,600
16,736,371
18,426,971
18,426,971
18,426,971		 1,561,901
1,561,901
18,263,541
19,825,442
255,247
18,426,971
1,143,224
19,825,442

25