THE SCS TRUST
REPORT AND ACCOUNTS
YEAR ENDED 31 DECEMBER 2023
Charity number: 1184007
THE SCS TRUST
I N D E X
Year ended 31 December 2023
| Page | |
|---|---|
| General information | 2 |
| Report of the Trustees | 3 |
| Independent examiner’s report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the financial statements | 9 |
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THE SCS TRUST
G E N E R A L I N F O R M A T I O N
Year ended 31 December 2023
| Established by deed | 17 August 2017 |
|---|---|
| Charity number | 1184007 |
| Trustees | S C Swire |
| C J D Todhunter | |
| The Hon. R W R T Stonor | |
| Power to appoint new Trustees was vested in the settlor | |
| during his lifetime and thereafter in the Trustees under | |
| their statutory powers. | |
| Settlor | S C Swire |
| Trust fund | £10, further settlements, accumulation of income, capital |
| accretion or otherwise and all property representing the | |
| same. | |
| Objects | Such exclusively charitable purposes for the benefit of the |
| public as the Trustees shall in their discretion think fit. | |
| Accumulation | During the period 21 years from the date of the Trust |
| Deed, the Trustees have power to accumulate the whole | |
| or any part of the income of the Trust Fund. | |
| Investments | The Trustees have powers of investment as if absolutely |
| entitled to the Trust Fund beneficially, including a power to | |
| invest surplus income. | |
| Bankers | Coutts & Co |
| 440 Strand | |
| London | |
| WC2R 0QS | |
| Independent Examiner | Gordon Spinks |
| Dixon Wilson | |
| 22 Chancery Lane | |
| London | |
| WC2A 1LS | |
| Address | Swire House |
| 59 Buckingham Gate | |
| London | |
| SW1E 6AJ |
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THE SCS TRUST
R E P O R T O F T H E T R U S T E E S
Year ended 31 December 2023
The Trustees present their report and financial statements of the charity for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 of the financial statements and with the 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). This report should be read in conjunction with the information on page 2.
Structure, governance and management
The SCS Trust is an unincorporated charity, constructed under a Trust deed dated 17 August 2017 and is a registered charity, number 1184007.
The power to appoint new Trustees is vested in the Settlor during his lifetime. Responsibility for the induction of all new Trustees, which involves awareness of the history and approach of the charity and an understanding of a Trustee’s duties, lies with the Chair.
A New Trustees receive detailed information about the charity’s governance, grant making, and financial position, including copies of Charity Commission guidance for trustees, the charity’s governing document, and the annual report and accounts.
The Trustees are directly responsible for the management of the charity. The Trustees agree the charity’s strategy, review and approve donations and grants, and oversee the charity’s governance, including the investment, reserves, and risk management policies, which are reviewed annually.
The Trust deed provides the Trustees with broad powers to create polices to support the management, governance, and administration of the charity.
At the Trustees’ meeting, the Trustees agree the strategy of the Trust, including consideration of donation making, investments, reserves and risk management policies. The day to day administration of the charity is carried out by John Swire & Sons Limited.
Grant making policy
The Trustees meet to consider what grants/donations they will make and to review any feedback they have received.
The charity does not run open funding programmes or encourage unsolicited applications. Most potential grant holders are initially identified by the Trustees. Due diligence is then undertaken by a small team on behalf of the Trustees before grants are agreed.
Organisations seeking funding are usually required to submit a request explaining how funds would be used and what would be achieved. All requests for funding are managed online.
Objectives, activities and achievements for the public benefit
The objective of the Trust is to provide donations and grants to charities in the United Kingdom and elsewhere.
In the year ended 31 December 2023, the Trust made donations and grants totalling £56,750 (2022 - £32,500).
The Trustees intend to continue to provide support to their chosen charitable causes.
The Trustees, having regard to the public benefit guidance published by the Charity Commission in accordance with section 17 of the Charities Act 2011, consider that the purpose and activities of the charity satisfy the requirements of the public benefit test set out in the section 4 of the same Act.
Investment policy
The Trustees’ principal resources arise from donations to the Trust. The Trustees maintain a cash balance in order to provide a fund to meet grants and donations which they wish to make in excess of donations received in any particular year.
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THE SCS TRUST
R E P O R T O F T H E T R U S T E E S
Year ended 31 December 2023
In this regard the Trustees have noted the statutory duty of care required by the Trustee Act 2000, in relation to their holding suitable investments and the need for diversification of investments so far as is appropriate to the circumstances of the Trust.
The Trustees’ overall investment objective is to achieve a level of investment income growth which at least matches the rate of inflation, while protecting the value of the charity’s capital in real terms.
Financial review
The investments held in the portfolio with Newton have performed favourably during the year, with the market value of the investments increasing by 8%.
At the year end the balance on the unrestricted fund was £345,588 (2022 - £242,028). Donations received in the year of £287,500 (2022 - £250,000) were to the expendable endowment funds in order to build a sufficient capital from which income will be generated to make donations for many years to come. Dividends of £163,357 were received in the year (2022 - £136,688).
Under the governing document, the Trustees have the power to convert the expendable endowment funds to unrestricted funds and the Trustees transferred £nil (2022 - £nil) to cover the deficit arising in the prior year.
Reserves policy
The Trust was created in August 2017 and provides the Trustees with wide powers of discretion to distribute the donations and other income of the Trust fund for charitable purposes as the Trustees determine. It has been the Settlor’s and Trustees’ intention that the Trust fund should be able to grow during the accumulation period with the help of accumulation of income. Once income is accumulated, it becomes an addition to the Trust’s capital.
The Trustees discussed the need for reserves, and concluded that no reserves need to be retained whilst the power to accumulate income remains available.
Key management personnel remuneration
The Trustees consider the Board of Trustees as comprising the key management personnel of the charity in charge of directing and controlling the charity and operating the charity on a day-to-day basis. All Trustees give their time freely and no Trustee remuneration or expense reimbursements were paid in the year.
Risk management
The major risks to which the Trust may be exposed, as identified by the Trustees, have been reviewed to confirm that systems, where appropriate, exist to mitigate those risks.
The principal risks faced by the charity lie in the performance of the investments and risks from ineffective grant making. The variability of investment returns is the charity’s major financial risk. It mitigates this risk by retaining expert investment advisors and having a diversified investment portfolio. The risk from ineffective grant-making is mitigated by carrying out research on charitable institutions to establish whether potential donations will be used effectively and in furtherance of this charity’s own objectives.
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THE SCS TRUST
R E P O R T O F T H E T R U S T E E S
Year ended 31 December 2023
Trustees’ responsibilities in relation to the financial statements
The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards. 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 charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
S C SWIRE For the Trustees
3 October
2024
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THE SCS TRUST
I N D E P E N D E N T E X A M I N E R ’ S R E P O R T
Year ended 31 December 2023
Independent examiner’s report to the trustees of The SCS Trust.
I report to the trustees on my examination of the accounts of the Trust for the year ended 31 December 2023.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). You are satisfied that an audit is not required for this year under charity law and that an independent examination is needed.
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters than an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.
Independent examiner’s statement
I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
GORDON SPINKS ACA Dixon Wilson 22 Chancery Lane London WC2A 1LS
23 October 2024
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THE SCS TRUST
S T A T E M E N T O F F I N A N C I A L A C T I V I T I E S
Year ended 31 December 2023
| Unrestricted Endowment Fund Fund Note £ £ Income and endowments from: Investment income 2 164,254 - Donations and legacies 3 - 287,500 Total incoming resources 164,254 287,500 Expenditure on: Raising funds - - Charitable activities 4 60,694 - Total expenditure 60,694 - Net gains/(losses) on investment assets 5 - 371,426 Net income/(deficit) 103,560 658,926 Net movement in funds 103,560 658,926 Reconciliation of funds: Fund balance brought forward at 1 January 2023 242,028 6,091,283 Fund balance carried forward at 31 December 2023 345,588 6,750,209 |
2023 Total £ 164,254 287,500 451,754 - 60,694 60,694 371,426 762,486 762,486 6,333,311 7,095,797 |
2022 Total £ 136,717 250,000 386,717 36,883 41,904 78,787 (435,841) (127,911) (127,911) 6,461,222 6,333,311 |
|---|---|---|
All amounts are in respect of continuing activities.
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THE SCS TRUST
B A L A N C E S H E E T
At 31 December 2023
| Note Fixed assets Investments 5 Current assets Debtors 6 Cash at bank and in hand Liabilities Creditors: Amounts falling due within one year 7 Net current assets Total assets less current liabilities Net assets The funds of the charity: Expendable endowment fund 8 Unrestricted fund 8 |
£ 1,250 161,194 162,444 (23,953) |
2023 £ 6,957,306 138,491 7,095,797 7,095,797 6,750,209 345,588 7,095,797 |
£ 6,250 20,894 27,144 (21,356) |
2022 £ 6,327,523 |
|---|---|---|---|---|
| 5,788 | ||||
| 6,333,311 | ||||
| 6,333,311 |
||||
| 6,091,283 242,028 |
||||
| 6,333,311 |
The financial statements on pages 7 to 12 were approved by the board of trustees on 2024 and 3 October were signed on its behalf by:-
S C SWIRE Trustee
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THE SCS TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2023
1. Accounting policies
(a) Basis of preparation and assessment of going concern
The financial statements have been prepared under the historic cost convention, with the exception that investments are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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 Trust constitutes a public benefit entity as defined by FRS 102.
The financial statements are presented in Sterling which is the functional currency of the trust and rounded to the nearest £.
The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. There are no significant areas of adjustment and key assumptions that affect items in the accounts. With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets (see the risk management section of the Trustees’ annual report for more information).
(b) Funds structure
The charity has an endowment fund created by a gift. The income of this Trust is unrestricted. The terms of the endowment allow the capital of the fund to be spent if the Trustees so determine.
Unrestricted funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose.
Restricted funds comprise those that are held on specific trust declared by the donor and for use only in furtherance of that specific purpose.
(c) Income recognition
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and amount of income receivable can be measured reliably.
Donations are recognised when the Trust has been notified in writing of both the amount and settlement date.
Gift Aid receivable is included in income when there is a valid declaration from the donor. Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and the notification has been received of the dividend due.
(d) Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. This is accrued once the recipient has been notified of the grant award.
(e) Support and governance costs
The Charity does not incur support costs. Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. Governance costs relate to charitable activities.
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THE SCS TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2023
(f) Fixed asset investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Trust does not acquire put options, derivatives or other complex financial instruments.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities within particular sectors or sub sectors.
(g) Realised gains and losses
All gains and losses are included net in the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
| 2. Investment Income Dividend income received Bank interest received |
2023 £ 163,357 897 164,254 |
2022 £ 136,688 29 |
|---|---|---|
| 136,717 |
Investment income is attributable to the unrestricted fund.
| 3. Donations and Legacies Donations |
2023 £ 287,500 287,500 |
2022 £ 250,000 |
|---|---|---|
| 250,000 |
Donation income of £287,500 is attributable to the endowment fund (2022 - £250,000).
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THE SCS TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2023
4. Analysis of expenditure on charitable activities
The charity did not undertake any activity directly but met its charitable purposes by making donations and grants.
| Grants made to charitable institutions Allegra’s Ambition Crohns and Colitis Engage with China English Heritage Trust Getting Court Hong Kong LEP Trust Marigolds Recreation Ground Siobhan’s Trust The Goed Life Turville School Trust UK Trust for Nature Conservation in Nepal Wanborough St Andrew’s Church Governance costs allocated to charitable activities: Consultancy costs Audit fees Independent examiner’s fees Total expenditure on charitable activities |
2023 £ - 10,000 5,000 15,000 4,000 7,500 5,000 250 - - 10,000 - 56,750 2,894 - 1,050 60,694 |
2022 £ 10,000 - - - - - - - 7,500 2,500 10,000 2,500 32,500 5,240 3,156 1,008 41,904 |
|---|---|---|
Of the expenditure on charitable activities, £60,694 (2022 - £41,904) was attributable to the unrestricted fund and £nil (2022 - £nil) was attributable to the endowment fund..
| 5. Fixed asset investments Quoted investments Market value at start of year Additions Accumulation dividends reinvested Net unrealised gains/(losses) on investment assets Investment management fees deducted Market value at end of year |
2023 £ 6,327,523 95,000 163,357 371,426 - 6,957,306 |
2022 £ 6,444,809 218,750 136,688 (435,841) (36,883) 6,327,523 |
|---|---|---|
The historical cost of investments at 31 December 2023 was £6,117,401 (2022 - £5,858,929). The investment is in Newton Growth and Income Fund for Charities. Net unrealised gains on investment assets were attributable to the endowment fund.
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THE SCS TRUST
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Year ended 31 December 2023
| 6. Debtors Other Debtors |
2023 £ 1,250 1,250 |
2022 £ 6,250 6,250 2022 £ 10,000 11,356 21,356 |
|---|---|---|
| 7. Creditors: amounts falling due within one year Grants payable Accruals |
2023 £ 19,000 4,953 23,953 |
8. Analysis of net assets between funds
| 8. Analysis of net assets between funds |
|||
|---|---|---|---|
| Unrestricted | Expendable | Total | |
| Income | Endowment | ||
| funds | funds | 2023 | |
| £ | £ | £ | |
| Fund balances as at 31 December 2023 are represented by: | |||
| Cash and Debtors | - | 162,444 | 162,444 |
| Creditors | (23,953) | - | (23,953) |
| ___ | _____ | _____ | |
| Investments | 498,785 | 6,458,521 | 6,957,306 |
| Inter-fund balance | (129,244) | 129,244 | - |
| ___ | _____ | _____ | |
| 345,588 | 6,750,209 | 7,095,797 |
9. Related party transactions
During the year, the aggregate donations, before gift aid, received from trustees without conditions were £230,000 (2022 - £200,000) and £nil (2022 - £nil) with conditions.
The trustees received no emoluments or reimbursement of expenses for their services (2022 - none).
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