Company registration number: 14303686 Charity registration number: 263680
THE SWEDISH BENEVOLENT TRUST
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD FROM 18 AUGUST 2022 TO 31 DECEMBER 2023
THE SWEDISH BENEVOLENT TRUST
CONTENTS
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 7 |
| Statement of Trustees' Responsibilities | 8 |
| Independent Auditors' Report | 9 to 12 |
| Statement of Financial Activities | 13 |
| Balance Sheet | 14 |
| Notes to the Financial Statements | 15 to 21 |
THE SWEDISH BENEVOLENT TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees Jan-Eric Osterlund Kerstin Garplid Jonas Aurell Eva Sheppard Alexander Goodwille Anette Jörgensen Principal Office The Swedish Church 6-11 London WIH 4AG Charity Registration Number 263680 Solicitors BDP Pitmans One Bartholomew Close London EC1A 7BL Independent Auditors Shaw Gibbs (Audit) Limited Salatin House 19 Cedar Road Sutton Surrey SM2 5DA Investment Managers Cazenove Management 1, London Wall Place London Wall Barbican, London EC2Y 5AU
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THE SWEDISH BENEVOLENT TRUST
TRUSTEES' REPORT
The Trustees present the annual report together with the audited financial statements of the charity for the financial period 18 August 2022 to 31 December 2023.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Nature of governing document
The Swedish Benevolent Trust is a registered charity (no: 1200952) and limited company (no: 14303686). Its address is c/o The Swedish Church, 6 Harcourt Street, London W1H 4AG. The present scheme was adopted on 18th of August 2022.
In 2022 the Trustees took the decision to incorporate the Trust from an unincorporated charity to a charitable company limited by guarantee (“CCLG”). In that light, the Trustees formed and registered a new CCLG at Companies House; this entity was registered with charitable objects that were based on those of the Trust, but which were updated to more closely reflect the nature of the Trust’s activities going forward as a CCLG. The Trustees were satisfied that the revised objects would not disadvantage the existing class of beneficiaries. Following the registration of the CCLG, the trustees formed and registered a new corporate charity of the same name with the Charity Commission (with registered charity number: 1200952) (the “charitable company”).
For the incorporation, the Trustees entered into a transfer agreement between the Trust and the charitable company with the effect of the control of the Trust’s undertaking and assets passing to the charitable company with effect from midnight on 31 December 2022. Following the transfer, the Trust was wound up and removed from the Charity Commission’s register of charities. Going forward, the charitable company will continue to carry out the activities and operations of the Trust in its new form and its Directors will continue to be referred to as Trustees.
Trustees
The Charity's Trustees from its inauguration to 31 December 2023 were:
| Jonas Aurell (appointed Chairman 01/01/2024) | appointed 18/08/2022 | |
|---|---|---|
| Barbro McAusland (Chairman to 31/12/2023) | appointed 18/08/2022 | resigned 31/12/2023 |
| Jan-Eric Osterlund | appointed 18/08/2022 | |
| Eva Sheppard | appointed 18/08/2022 | |
| Kerstin Garplid | appointed 18/08/2022 | |
| Alexander Goodwille | appointed 18/08/2022 | |
| Annika Marie White | appointed 18/08/2022 | resigned 18/08/2022 |
| Anette Jorgensen | co-opted 07/11/2022 |
Induction and training of Trustees
New Trustees are introduced to the Trust by one or more of the existing trustees and are given all key documents concerning the Trust's constitution governance and operations.
Members
The Charity has four members chosen by three constituting member organisations, the Swedish Church (two members), the Embassy of Sweden (one) and the Swedish Chamber of Commerce for the United Kingdom (one). The members appoint trustees, attend and vote at the Members’ Annual General Meeting.
The Charity’s members from its inauguration to 31 December 2023 were: Peter Wänehag, Swedish Church in London Per Jonsson, Swedish Church in London Christina M Johannesson, The Embassy of Sweden in London Fredrik Warneryd, Swedish Chamber of Commerce for the United Kingdom
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THE SWEDISH BENEVOLENT TRUST
TRUSTEES' REPORT
Relationships with related parties
The Swedish Benevolent Trust works closely with the Swedish Church in London (Church) and supports work done by the Church. Any necessary administrative work is carried out by the Church.
Risk management
The Trustees have reviewed the major risks, financial and non-financial, to which the Trust is exposed in the course of its current activities. They have assessed these risks and have ensured that the appropriate systems and controls exist to minimise internal risks and that effective response mechanisms exist to respond to and minimise the impact of external risks. The volatility in investment markets and therefore to the investment portfolios as well as Real Estate and interest rate movements are considered major risks. Currently, the properties in Daventry and London are doing well and the investments are managed by a well reputable firm on a discretionary basis. The Trust is mainly supporting certain activities of the Swedish Church and it is therefore important that its risk profile is seen in conjunction with that of the Swedish Church. An investment policy statement was put in place in 2020 and is subject to annual review by the Trustees.
Objectives and Key Activities
The key objective of the Trust is to relieve persons of Swedish nationality or descent, or the husbands, wives, widows, widowers or dependents of persons of Swedish nationality or descent, who are in conditions of need, hardship or distress or who are aged or infirm. In addition, the Trustees may make grants for such charitable purposes as the Trustees think fit for the general benefit of persons of Swedish origin and resident in the United Kingdom.
The Trust fulfils this objective mainly by supporting certain activities by the Swedish Church in London, “The Church”. This is done by grants given to the Church for some of its diaconal activities.
The Trust gets its income from two main sources:
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A property portfolio of residential properties which generate rental income
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Investments in a discretionary investment fund managed by Cazenove. The return from the investments will come from a combination of interest or dividends or similar and a value increase in the underlying investments.
The Trust has no fundraising activities.
Public Benefit Statement
The Trustees confirm that they had due regard to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s objectives and in planning future activities.
Relationship With Other Bodies
The Swedish Benevolent Trust works closely with the Swedish Church in London and supports work done by the Church. The Church carries out any necessary administrative work against a charge.
Management and Governance
The Swedish Benevolent Trust is a Charity regulated by the Charity Commission with six trustees. The Trust has no employees but get administrative support from the Church. In 2022 the new corporate structure took effect, the old charitable trust was closed on 31st December 2022, the new charity became a registered limited company by guarantee and all the assets were transferred on that date.
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THE SWEDISH BENEVOLENT TRUST
TRUSTEES' REPORT
ACTIVITIES AND PERFORMANCE
Support for the diaconal activities of the Swedish Church in London
During the financial year, the Swedish Benevolent Trust, with income from its investments, supported the social care activities of The Swedish Church in London. The Trust has given a donation to the Church of £ 120,000 in 2023.
The donation enabled the Church to
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Employ two Deacons working to provide a considerable range of social welfare service
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Arrange a handful of small-scale lunches and meetings for elderly and vulnerable people with Swedish connections in the UK
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Provide emergency aid for vulnerable Swedes to simply survive or be supported, also through psychotherapeutic or psychiatric help and
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Improve a project for supporting the church in a wider outreach of the Church’s social activities in different parts of Britain. Regular welfare work was carried out in Belfast, Birmingham, Bournemouth, Brighton, Winchester, Cardiff, Edinburgh, Inverness, Newcastle, Bath, Bristol.
Property Portfolio
The Trust has a property portfolio of 16 properties. One is in London and the remaining in Daventry. They are all managed and let by professional agents, one for the London property and one for the Daventry ones. The properties are all let at prevailing market values. The properties were valued at the time they were transferred from the old Trust to the Charity. The properties were valued at 31 December 2022 was £4.52 million. In 2023 the rental income from the properties was £170k. The gross rental income was 3.8% of the market value of the properties.
Daventry is a distribution hub located near M1 north of London and in the judgement of the Trustees it is well placed for further growth. The properties have been 97% rented out in 2023 and all rents are paid. In 2023 we had three changes of tenants.
The property in London is a leasehold and the lease period was extended in 2019 to the year 2153. The property had one change of tenants in 2023 and was rented out for 81%.
The costs for maintaining the property portfolio consist of maintenance costs and managing fees to our agents and insurance (service charges). These costs amounted to £ 86k in 2023. The net profit of the property portfolio was £ 84k or 1.9%.
Financial review
Since the assets were transferred to the charity on 31st December 2022, there were no financial transactions between 18th August 2022 to that date. Prior to the 31st December 2022, all financial operations were reported in the unincorporated charity.
During the year, the Trusts' income totalled £216,229. Grants of £120,000 were made to the Swedish Church in London and, after investments had been revalued and an unrealised gain of £28,052 had been included, the Trust’s general reserves on 31 December 2023 totalled £5,643,066.
Funding and reserves policy
The Trustees have invested funds in properties to be let for the time being producing income to be used in accordance with its scheme. No new investments have been made in other properties and existing properties are let at prevailing market price.
The general fund at the year-end totalled £5,643,066.
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THE SWEDISH BENEVOLENT TRUST
TRUSTEES' REPORT
Investment portfolio
Apart from the properties the Trust has an investment portfolio. This portfolio has been managed by Cazenove Capital and been fully invested in their Sustainable Multi Asset Fund, SMAF.
There was a positive investment return in 2023. During 2023 the markets became more confident due to economic growth and falling inflation rates. For 2023 the investment portfolio return was 7%.
The Trustees required that the investments are held in a sustainable portfolio adhering to appropriate ESG criteria. The Cazenove portfolio is constructed to adhere to the UNPRI and UN SDG.
Cazenove Capital manage the fund assets on a Discretionary basis, for which the total expense ratio (TER) is 0.8% per annum, which is considered competitive. The Trustees are monitoring performance regularly and meet with the Investment Manager at least twice per annum in addition to the quarterly investment reports received.
Between the property assets and the investment portfolio, the SBT assets are well diversified in terms of risk, sector, region and style in addition to which the SMAF can be liquidated with short notice.
The return from our investments takes the form of income and capital increase. The returns are shown in the table below and are net after an investment fee is paid to Cazenove Capital. Part of the investment fee is shown in the return figures in the account and part is debited separately and is shown as a Management fee here.
Investment Risk Management
Our investments are governed by investment and treasury policies that are reviewed by the Trustees on a regular basis. The policies are designed to balance the objective of maximising investment returns against the risk and liquidity of the investments.
The Trust manages investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes. It is the responsibility of the Investment Manager to ensure that the portfolio is invested and remains appropriate to meet the requirements discussed and agreed in writing. In order to ensure the return and risk guidelines are adhered to, the Trustees conduct periodic investment reviews with the Investment Manager. These reviews will take place at least twice per annum.
Investment Performance and Objectives
SBT is a discretionary Trust. By delegating the investment management activities to Cazenove, the Trustees look for the Investment Manager to protect and enhance the value of the assets in order to maintain the purchasing power of the funds when taking into account the effects of inflation using the published UK Consumer Price Index (CPI) rate + 4% (net of fees) over a rolling ten year period.
The Trustees understand that in order to generate returns as stipulated above, the portfolio is exposed to a medium degree of risk. The Trustees would look to re-consider the investment strategy if the value of the portfolio was to decline or increase by more than 20% in a rolling 12 month period. The Trustees would also expect the volatility in each year to be no more than 10%. In the event of the portfolio falling outside these measurements over a rolling 12 month period, Cazenove must communicate with the Trustees to assess the continued appropriateness of the strategy and whether any capital preservation measures should be applied to the portfolio.
The Trustees require quarterly progress reports for the purpose of monitoring the Cazenove portfolio, these reports include performance, asset allocation and currency allocation data together with a valuation detailing purchases and sales, other transactions and corporate actions.
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THE SWEDISH BENEVOLENT TRUST
TRUSTEES' REPORT
Responsible Investment Policy
The Trust is committed to investing its funds in a responsible manner and for the investment portfolio to be managed in accordance with the Trust’s own charitable mission and values. This means having regard to best practice in Environmental, Social and Governance (ESG) issues. The Trustees have a genuine desire for positive screening for ESG and have therefore agreed with Cazenove to invest the portfolio assets via The Charity Sustainable Multi-Asset Fund (SMAF).
The SMAF is a GBP denominated discretionary fund whereby the investment manager (Cazenove) selects funds which encourage good behaviour, via the companies and other assets in which they invest. This includes promotion of sustainability, good business ethics, good employment practices and the transition to a low carbon global economy. Cazenove has agreed that no more than 5% of the portfolio or individual funds within the investment portfolio should be invested in companies that sell and/or manufacture tobacco, alcohol, arms and pornography nor exploit labour force in ways which are deemed unacceptable. Ethical restriction screening is applied to monitor these limits.
| Income Gains on investment Management fee Total return Percentage return |
2023 46.0 28.0 -2.6 |
|---|---|
| 71.4 7.0% |
The Trust’s investment objective is a total return over long term of 4% above inflation (CPI).
Other activities
Apart from the expenses described above for managing our properties and our investments the Trust has also some support costs related mainly to auditors and lawyers. They amounted to £ 20.2k.
Following the implementation of the Charities (Protection and Social Investment PSI) Act 2016, the Trust has reviewed its fundraising activities and confirms that it complies with the regulation. The Trust did not make use of any external fundraisers during 2023, nor did it by itself conduct any fundraising activities.
Summary of Activities
The total income and expense picture for the Trust in 2023 can simplified be described as below:
| £'000 Property Net income Investment portfolio income and gain Support costs Donation to Swedish Church Net movement in SBT's funds |
2023 84.3 71.4 -20.2 -120.0 |
|---|---|
| -15.5 |
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THE SWEDISH BENEVOLENT TRUST TRUSTEES, REPORT Plan* lor tho futur• The Trustees Intend to coninue meeting the Trust's objectives by 6UPPOrting. primorily through The Swedl$h Church in London th•w8118r• work carri•d out by Swadish Church in London. The w8lfare WO is increasing.. more homo visits aro made onlin• in additson to faCe.tf8c• m•etings. An increased numter ol individuels, espec48lly youth, are contath.ng tha Church for counselllng, 8UPPOrt 8nd help. Many Swedts f#el insaeurity about their p051tion in the UK since Brexit The econDmic dim8te in Great Britain as well a6 Sweden wll infiuence the futu weKarg work acbvitses. annual was approved by the Trustees ofthe charity on 12 May 2024 and signed on ib bthalf by.. Chai
n and Tntstee
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THE SWEDISH BENEVOLENT TRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these 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 in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material 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 proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The Trustees 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.
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THE SWEDISH BENEVOLENT TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SWEDISH BENEVOLENT TRUST
Opinion
We have audited the financial statements of The Swedish Benevolent Trust (the 'charity') for the period from 18 August 2022 to 31 December 2023, which comprise the Statement of Financial Activities, Balance Sheet, 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:
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give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 charity 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 charity's ability to continue as a going concern for a period of at least twelve 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, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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THE SWEDISH BENEVOLENT TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SWEDISH BENEVOLENT TRUST
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the Trustees’ Report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 8), the Trustees (who are also the directors of the charity for the purposes of company law) 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with 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.
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:
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
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we identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We considered the nature of the charity’s sector and its control environment, and reviewed the charity’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also identified the laws and regulations applicable to the charity through discussions with the Trustees and other management, and from our cumulative audit, knowledge and experience of the charity.
We obtained an understanding of the legal and regulatory framework that the charity operates in, and identified the key laws and regulations that:
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THE SWEDISH BENEVOLENT TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SWEDISH BENEVOLENT TRUST
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had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the Companies Act 2006, the Charities Act 2011, the Charities SORP, and UK financial reporting standards as issued by the Financial Reporting Council; and
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do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity’s ability to operate or to avoid a material penalty. These included the charity’s regulatory requirements, employment and taxation legislations.
We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls and policies in place to mitigate risks of fraud and non-compliance with laws and regulations.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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enquiring of the Trustee concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
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reading minutes of Trustee meetings, reviewing internal audit reports and reviewing correspondence with the Charity Commission.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.
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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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THE SWEDISH BENEVOLENT TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SWEDISH BENEVOLENT TRUST
Use of our report
This report is made solely to the charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
.............................................. Shaw Gibbs (Audit) Limited, Statutory Auditor
Salatin House 19 Cedar Road Sutton Surrey SM2 5DA
12 May 2024
Shaw Gibbs (Audit) Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
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THE SWEDISH BENEVOLENT TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD FROM 18 AUGUST 2022 TO 31 DECEMBER 2023
| Note Funds transfer on charitable company incorporation 4 Income from: Rental income 2 Investment income 3 Total income Expenditure on: Support costs 5 Grant payable 6 Governance costs 7 Total Expenditure Net income Other recognised gains and losses Gains on investments 8 Net movement in funds Reconciliation of funds Total funds carried forward 12 |
Unrestricted funds £ 5,627,540 170,238 45,991 216,229 88,549 120,000 20,206 (228,755) 5,615,014 28,052 5,643,066 5,643,066 |
Restricted funds £ - - - - - - - - - - - - |
Total 31 December 2023 £ 5,627,540 |
|---|---|---|---|
| 170,238 45,991 |
|||
| 216,229 | |||
| 88,549 120,000 20,206 |
|||
| (228,755) | |||
| 5,615,014 28,052 |
|||
| 5,643,066 | |||
| 5,643,066 |
The statement of financial activities includes all gains and losses recognised in the period.
All income and expenditure derive from continuing activities.
Page 13
THE SWEDISH BENEVOLENT TRUST (REGISTRATION NUMBER: 263680) BALANCE SHEET AS AT 31 DECEMBER 2023 31 Do¢•mber 2023 Fixed ••ts Investment properties Poolad Inv•stsnent veh[$ 4,520,000 1,094,196 5,614.196 Curront •8S•ta Debtors 10 2,815 39,605 Cash at bank and in hand 42,420 PayabhB: amounts fallln9 duo wlthln on• y•ar 13.550 Not current aOts 28.870 N•t 5,643.066 Funds of tho charlty.. Desvjnatod Captsl Fund Goneral FuTras 5.843,C66 Totsl funds 12 5.643,1X6 The ffinanc4al ststements on pages 13 to 21 were approved by the Trustees, and aLrthori8ed for issue on 12 May 202 and si d on thair ljèhalf by.. Ch Irman and Trustee Paga 14
THE SWEDISH BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 18 AUGUST 2022 TO 31 DECEMBER 2023
1 Accounting policies
1.1 Charitable company information
The Swedish Benevolent Trust ("the charitable company) is a charitable company incorporated on 18 August 2022 on Companies House with the Company No. 14303686 and registered with the Charity Commission with the Charity Registration No. 263680.
On 22 December 2022, with the consent of the Charity Commission, as required by Section 201 of the Charities Act 2011, the members of the company approved the Unincorporated Charity Trustees to the Charitable Company as required by Section 190 of the Companies Act. All assets and liabilities of the Unincorporated Charity were transferred to the Charitable Company on the transfer date and under the agreement of all its members.
1.2 Basis of preparation
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments at market value, and are 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) (‘the SORP’), FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (‘FRS 102’), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
1.3 Going concern
The charitable company was incorporated on 18 August 2022. The assets and liabilities of The Swedish Benevolent Trust Unincorporated charity were transferred to the charitable company on the effective transfer date 22 December 2023 and it came out of dormancy. The charitable company is now actively in operation and the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus they adopt the going concern basis in preparing these financial statements.
1.4 Fund structure
Restricted fund: Designated Capital Fund
The designated capital fund comprises of funds that have been set aside at the discretion of the Trustees for a specific purpose.
Unrestricted fund: General Fund
The general fund comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects.
Further details of each fund is set out in the notes to the financial statements.
1.5 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
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THE SWEDISH BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 18 AUGUST 2022 TO 31 DECEMBER 2023
Rental income
All rental income relates to income from leases & investment properties and is accounted for on a receivable basis.
Donations and legacies
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Legacies are accounted for on a receivable basis to the extent that the Trustees are certain of the timing and the amount to be received.
Investment income
Investment income is accounted for on a receivable basis and relates to income from bank accounts and investments.
Charitable activities represent costs directly incurred for the furtherance of the Trust's objects.
1.6 Expenditure
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.
All expenditure is accounted for on an accruals basis. All expenses are allocated or apportioned to the applicable expenditure headings.
Grant payable
Grants payable are charged in the year when the offer is made expect in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled.
Support costs
Support costs include central functions of the charitable company and have been allocated to activity costs on a basis consistent with the use of resources.
Governance costs
Governance costs are those incurred in connection with the administration of the charitable company and compliance with constitutional and statutory requirements.
1.7 Fixed Asset Investments
Investment properties
Investment properties are properties owned by the Trust which are held either for long-term rental income or for capital appreciation or both. Investment properties are initially recognised at cost (including related transaction costs) and revalued at the year end date to fair value. The Trust’s property portfolio (including any additions during the year) is valued at least every 4 years by an external valuation agent and valued by the Trustees in the intervening years. Properties are treated as acquired at the point when the Trust assumes the significant risks and returns of ownership and as disposed when these are transferred to the buyer. This generally occurs on unconditional exchange, except where completion is expected to occur significantly later than exchange. Additions to investment properties consist of costs of a capital nature. Gains or losses arising from changes in the fair value of investment property are included in the statement of financial activities of the period in which they arise. No depreciation is provided in respect of investment properties including integral plant.
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THE SWEDISH BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 18 AUGUST 2022 TO 31 DECEMBER 2023
Quoted Investments
Investment 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 Trust is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
1.8 Realised gains and losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.
Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
1.9 Receivables
Receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
1.10 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and at bank.
1.11 Payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
2 Income
Unrestricted
| 2 Income |
Unrestricted | ||
|---|---|---|---|
| Property rental income | General £ 170,238 170,238 |
Restricted £ - - |
Total 31 December 2023 £ 170,238 |
| 170,238 |
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THE SWEDISH BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 18 AUGUST 2022 TO 31 DECEMBER 2023
| 3 Investment income Income from dividends; Dividend income from listed investments 4 Funds transfer Funds transferred on conversion to Charitable Company |
Unrestricted General £ 45,991 Unrestricted General £ 5,627,540 |
Restricted £ - Restricted £ - |
Total 31 Dec 23 £ 45,991 |
|---|---|---|---|
| Total 31 Dec 23 £ 5,627,540 |
The charitable Company was incorporated on 18 August 2022. The funds of The Swedish Benevolent Trust unincorporated charity were transferred during the financial period to the charitable company on the effective transfer date being 22 December 2023. The income is included in the financial statements as a transfer on conversion to a charitable company.
5 Support Costs
a) Costs of trading activities
| Property cost Service charge Property management fees |
Unrestricted General £ 50,940 7,291 27,725 85,956 |
Restricted £ - - - - |
Total 31 Dec 23 £ 50,940 7,291 27,725 |
|---|---|---|---|
| 85,956 |
b) Administration and investment costs
| Investment management fees | Unrestricted General £ 2,593 2,593 |
Restricted £ - - |
Total 31 Dec 23 £ 2,593 |
|---|---|---|---|
| 2,593 |
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THE SWEDISH BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 18 AUGUST 2022 TO 31 DECEMBER 2023
| 6 Grant payable Unrestricted Note General £ Grant to Swedish Church in London 120,000 7 Analysis of governance and support costs Governance costs Unrestricted General £ Audit fees Audit of the financial statements 3,450 Legal and professional fees 16,756 20,206 8 Fixed Asset Investments: Investment Properties Property held for leasing as lessor: Additions Revaluation Valuation at 31 December 2023 |
Restricted £ - Restricted £ - - - |
Total 31 Dec 23 £ 120,000 |
|---|---|---|
| Total 31 Dec 23 £ 3,450 16,756 |
||
| 20,206 | ||
| 31 Dec 2023 £ 4,520,000 - |
||
| 4,520,000 |
The carrying value of investment properties is their fair value and have been valued in accordance with the disclosure required by SORP (FRS102).
The Trust’s property portfolio was externally revalued at the year end date to fair value by Fisher German Property Consultants, qualified independent valuers, as at 31 December 2022 in accordance with the Appraisal and Valuation Standards of RICS, on the basis of market value. Market value represents the figure that would appear in a hypothetical contract of sale between a willing buyer and a willing seller. Market value is estimated without regard to costs of sale.
The independent valuation of all property assets uses market evidence and also includes assumptions regarding income expectations and yields that investors would expect to achieve on those assets over time. Many external economic and market factors, such as interest rate expectations, bond yields, the availability and cost of finance and the relative attraction of property against other asset classes, could lead to a reappraisal of the assumptions used to arrive at current valuations. In adverse conditions, this reappraisal can lead to a reduction in property values and a loss in net asset values.
The investment properties have been valued by the Trustees at their best estimate of their fair value as at 31 December 2023, in accordance with the disclosure required by SORP (FRS102).
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THE SWEDISH BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 18 AUGUST 2022 TO 31 DECEMBER 2023
9 Fixed Asset Investments: Pooled Investment Vehicles
Quoted Investments
| Quoted Investments | |
|---|---|
| Quoted investments Additions Disposals Net gains/(losses) on investment Market value at 31 December 2023 |
Listed investments £ 1,087,107 (20,962) 28,051 |
| 1,094,196 |
The market value of each class of investment comprises of:
| Dec 2023 | |
|---|---|
| £ | |
| Quoted investments: Multi-asset funds | 1,094,196 |
| Market Value as at 31 Dec | 1,094,196 |
All quoted investments are held with Casenove Capital Limited who are the investment managers for the Trust.
Investment in equities and fixed interest securities are all traded in quoted public markets. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). The significance of financial instruments to the ongoing financial sustainability of the Trust is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report. The main risk to the Trust from financial instruments lies in the combination of uncertain investment markets and volatility in yield.
Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The Trust‘s investments are mainly traded in markets with good liquidity and high trading volumes. The Trust has no material investment holdings in markets subject to exchange controls or trading restrictions.
The Trust manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges.
All gains and losses are taken to the Statement of Financial Activities as they arise and both realised and unrealised gains and losses are netted as one amount. During the year, no investments were sold therefore the full gain on investment above is unrealised. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value and therefore the actual gain or loss on investment. Unrealised gains and losses are calculated as the difference between the fair value and their carrying value of all investments held therefore reflecting the value of the investment as at the year end.
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THE SWEDISH BENEVOLENT TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD FROM 18 AUGUST 2022 TO 31 DECEMBER 2023
10 Receivables
| Prepayments 11 Payables: amounts falling due within one year Other payables Accruals |
31 Dec 2023 £ 2,815 |
|---|---|
| 31 Dec 2023 £ 2,516 11,034 |
|
| 13,550 |
12 Funds
| Unrestricted General Designated Capital Fund Total funds 13 Analysis of net assets between Analysis of net assets between funds - current year Fixed asset investments Current assets Current liabilities Total net assets |
Balance at 18 Aug 22 £ - - - funds General £ 5,614,196 42,420 (13,550) 5,643,066 |
Incoming resources £ 5,871,821 - 5,871,821 Unrestricted Designated Capital £ - - - - |
Resources expended £ (228,755) - (228,755) Restricted £ - - - - |
Balance at 31 Dec 23 £ 5,643,066 - |
|---|---|---|---|---|
| 5,643,066 | ||||
| Total Unrestricted funds £ 5,614,196 42,420 (13,550) |
||||
| 5,643,066 |
14 Related party transactions
During the financial period, donations of £120,000 were awarded to the Trust's sister Charitable Company, The Swedish Church in London. One Trustee was reimbursed expenses totalling £398.
There were no other related party transactions during the financial period.
15 Events after the reporting period
There have been no significant events between the year end and the date of approval of these accounts which would require a change to, or disclosure in, the financial statements.
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