THE VALLADOLID TRUST FUND (Registered Charity Number: 206957)
TRUSTEES’ REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
THE VALLADOLID TRUST FUND
TRUSTEES' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2021
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY
| Charity Commission Number: | 206957 |
|---|---|
| The Trustees are as follows:- | The Most Reverend Bernard Longley |
| The Most Revered John Wilson (appointed 1 October 2020) | |
| The Rt Rev Terry Drainey (resigned 1 October 2020) | |
| The Reverend Gary Brassington | |
| Dr James Whiston | |
| Monsignor Nicholas Rothon | |
| Mr Steve McCoy | |
| The Right Reverend Mark O’Toole | |
| Canon Paul Farrer | |
| Mr Charles Neal | |
| Monsignor Michael Kujacz (appointed 21 January 2021) | |
| The Secretary to the Trustees | Monsignor Nicholas Rothon |
| and College Agent is: | |
| Principal Office is:- | St Mary's |
| 5 Cresswell Park | |
| Blackheath | |
| London SE3 9RD | |
| The Solicitors are:- | Hunters Law LLP |
| 9 New Square | |
| Lincoln’s Inn | |
| WC2A 3QN | |
| The Bankers are:- | HSBC |
| 26 Clumber Street | |
| Nottingham NG1 3GA | |
| The Auditors are:- | Haysmacintyre LLP |
| 10 Queen Street Place | |
| London EC4R 1AG | |
| The Stockbrokers are:- | Investec Wealth and Management Ltd |
| 30 Gresham Street | |
| London EC2V 7QN | |
| Canaccord Genuity Wealth Management | |
| 41 Lothbury | |
| London EC2R 7AE | |
| Investment powers and | The Trustees will not invest in Companies that manufacture |
| Social and Ethical Policy on Investments | armaments or whose operations are contrary to the teachings |
| of the Roman Catholic Church. |
The College Agent acts as Chief Executive officer for the Charity
The Trustees delegate to the College Agent the power to operate the Trust Bank account, to attend to the administration of the invested funds and generally to attend to the administration of the Charity. Apart from a formal audit, the College reports formally to the meetings of the Trustees and consults with a Finance and General Purposes sub-committee established by the Trustees.
1
THE VALLADOLID TRUST FUND
TRUSTEES' REPORT (Continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
STRUCTURE, GOVERNANCE, MANAGEMENT, BACKGROUND AND OBJECTIVES.
This section of the report explains the relationship between the Trust and the College in Spain to give the context for the operations of the Trust. The Trustees are not, in their capacity as Trustees, responsible for the operation of the College per se.
Introduction: Aim and Beneficiaries
The English College, Valladolid, Spain was founded in 1589 to train Catholic Priests to work in England and Wales. The Foundation dates back to penal times when it was not possible for Priests to be trained in England and Wales. The College has an unbroken tradition of 431 years: at present about 160 former students are working as priests in England and Wales.
The buildings of the College date from 1600 and contain many treasures associated with the history of the College and also of the Church. For many generations of students, the College has provided a wonderful environment in where students can undertake their course of studies.
The College is one of the oldest links between England and Spain and its importance is recognized by the Spanish and United Kingdom authorities. The Rector of the College is normally a priest from England and his appointment requires the approval of the King of Spain.
The principal purpose of the Trust is to help meet the cost of training students at the College.
The College provides part of the training course for students for the Roman Catholic Priesthood. After ordination, they will normally be appointed to undertake duties in England and Wales. These include the following:
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Celebrating the Mass and other forms of worship
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Conducting baptisms, marriages and funerals
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Undertaking the administration and maintenance of Churches and Chapels
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Undertaking and supervising religious education
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Visiting the sick, the housebound and others in need of pastoral care
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Support of schools and other educational establishments
The prime beneficiaries of the Trust are the students who undertake a course of studies at the College. They have the opportunity to live in historic buildings and share in traditions and a way of life that has continued for 431 years.
Consequently, further beneficiaries are those who benefit from the Ministry of Priests who have been trained at the College.
For many centuries, Spain was remote and distant from those who lived in England and Wales. In more recent times, many people have had the opportunity to travel to Spain. During each year, the College receives many visitors from England and from other parts of the world, who share and enjoy the life of an historic institution and have an opportunity to see the historic relics owned by the College. Thus, the general public can share in the life of the College and it can be said that they are also beneficiaries of the Trust.
Candidates for the priesthood are selected by their Bishops. The Bishops then decide whether a student should be sent to Valladolid or to another College. Few are able to make a financial contribution towards the cost of their training. The costs are met in part from Income of the Trust Fund and from monies collected by the Bishops in their own Dioceses - which are Charities in their own right - and from Funds held in Spain which do not form part of the English Trust, Thus the Trust does not exclude beneficiaries on grounds of poverty.
The practical result from the operation of the Trust is that during the academic year 2020-21 sixteen students received part of their training for the Catholic priesthood at the College and this was financed in part from the Income of the Trust.
2
THE VALLADOLID TRUST FUND
TRUSTEES' REPORT (Continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
STRUCTURE, GOVERNANCE, MANAGEMENT, BACKGROUND AND OBJECTIVES (continued)
Details of the Trust
The current Trust was established in England, in accordance with English Charity law in 1960 and the Trust Deed was last revised formally in 1992. The Deed was reviewed in 2020 by a Solicitor who is a Trustee and he advised that the Deed remains fit for purpose.
The Trustees are responsible for the administration of the capital and income of the Trust and for the application of these funds for the benefit of the College.
The Trust serves as means for collecting fees from the Roman Catholic Dioceses sending students to the College together with other income for the benefit of the College. The Trust also meets expenses on behalf of the College which need to be met from a sterling account.
According to the Trust Deed, the power of appointing Trustees rests with the Roman Catholic Bishops of England and Wales, acting jointly through their Conference. The Trust Deed requires a minimum of 7 and a maximum of 9 Trustees. At their meeting in 2020 the Trustees passed a resolution to increase the number of Trustees to 10. When there are vacancies, new members are nominated by the current Trustees and presented to the Bishops for acceptance and approval.
In attending to the affairs of the Trust, the Trustees are all of equal status.
Decisions relating to the operation of the Trust are taken at formal meetings of the Trustees, with a single vote for each Trustee. The business of the Trust is recorded in a formal minute.
As far as possible, Trustees visit the College on a regular basis and meet with the staff and students. They receive regular financial reports confirming that the funds of the Trust are used for the purposes of the College in accordance with the Trust Deed. The Trustees have received copies of the guidance notes issued by the Charity Commission and have reviewed the operations of the Trust in the light of these notes.
As noted above, the day-to-day administration of the Trust is delegated by the Trustees to the College Agent. The Trustees delegate to the College Agent the power to operate the Trust Bank account, to attend to the administration of the invested funds and generally to attend to the administration of the Charity. Apart from a formal audit, the College Agent reports to the meetings of the Trustees and consults with a Finance and General Purposes Sub-Committee established by the Trustees.
Financial Operations
The College also holds funds in Spain, which do not form part of the English Trust. The total picture of the financial operations of the College is as follows covering both the Trust funds and financial operations in Spain, which are not subject to the control of the Trust.
Income
Fees from Dioceses English Trust English investment income English Trust Income generated in Spain non Trust
Expenditure
Sterling expenses - paid from English Trust English Trust
Spanish expenses
- paid from Spanish income Non-Trust - English Trust income sent to Spain English Trust
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THE VALLADOLID TRUST FUND
TRUSTEES' REPORT (Continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
REVIEW OF OPERATIONS
The quality of the course is recognized by the Bishops of England and Wales and many of them send students to the College year by year. At present the College provides a preparatory course and students proceed to other Colleges for more specialist training. A proof of the quality of the course is that many of the students who come to the College complete their studies and are ordained as priests.
With the help of expert advice from Spain, from England and from the United States the treasures of the College have been carefully examined and documented and appropriate work is undertaken for their preservation and security. These treasures include a collection of historical books, paintings, statues and an ornate baroque chapel. The College is a living academic institution and is not a museum or an art gallery. Those who live and work in the College as well as visitors can appreciate these treasures
The treasures of the College are not held by the English Trust but funds for the English Trust are used for their preservation and maintenance in accordance with the terms of the Trust Deed.
The College currently has a resident staff of 3 English priests 1 Religious sister. Their stipends and expenses are paid from the English Trust. The Trust also pays an honorarium to the College Agent. Specialist lecturers visit the College on a regular basis during the year and their fees are paid from the Trust. The wages of domestic and other staff are paid from Spanish funds.
The College does not use the service of volunteers.
The Trustees are not remunerated but their travel expenses are met from the Trust funds.
The Rector and the College agent are remunerated from College funds for work that they undertake on behalf of the College apart from their responsibilities as Trustees.
PUBLIC BENEFIT
The Trustees confirm that they have complied with the duty of Section 17 of the Charities Act 2011 to have due regard to the Charity Commissions general guidance on Public Benefit.
INVESTMENT AND RESERVES POLICY
The Trust funds in England are invested and managed on a low risk basis by professional managers. The performance of the managers is kept under review by the Trustees and is good when compared with established benchmarks. Investments are held in the nominee account of Investec and are managed on a discretionary basis.
. From time to time the Trustees transfer funds to Spain to meet the local expenses of the College in accordance with the terms of the Trust.
In some years, the Trust accumulates surplus income in England, and this is added to the investment capital of the Trust. The College has a long history and there have been periods in the past when few students attended the College, resulting in a lack of fee income and the need to cover the expenses from other sources. The policy of the Trustees is to retain surplus income in England and add it to the capital investment so that sufficient funds will be available to meet the outgoings if in the future, there is only a small number of students and limited income. The effect of inflation, changing rates of exchange and the performance of the stock market in recent years means that the management of the funds of the College is a continuing task and it is not possible to set specific figure for a reserves policy. The financial position of the College, with capital invested in both Britain and Spain is complex and the position is being monitored with the help of professional advice.
The Trustees will not invest in Companies that manufacture armaments or whose operations are contrary to the teachings of the Roman Catholic Church. The Trustees have prepared a formal investment policy which has been accepted by the Fund Managers. Investments are subject to a regular review in the light of this policy.
4
THE VALLADOLID TRUST FUND
TRUSTEES' REPORT (Continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
Brexit has had a notable effect on the operations of the College. The English staff and students require residence permits. Medical insurance is required, and this is arranged in Spain. As a long-established institution in Spain, special consent is not required from the Spanish Authorities for the work of the College to continue.
The reserve policy of the charity is to maintain a level of income from the English Investments to cover the expenses which are normally met from the English account. The balances are either transferred to the College in Spain or reinvested to cover the effect of inflation on the capital of the English capital and to provide a higher level of income for the future.
The Trust does not undertake any Fund-raising activities, though from time to time the Trust has received legacies and other donations
The Trust Deed does not authorise the Trustees to make grants to outside bodies.
One of the Trustees has a special responsibility for Safeguarding Issues and a Safeguarding review is undertaken each year with a report to the Trustees.
In recent years, the College has been pleased to receive Students from different countries and ethic backgrounds and care is taken to promote inclusion and diversity.
GOING CONCERN
The Trustees consider that the financial position of the Trust and of the College remains sound that the accounts do not contain any exceptional items, which require special comment.
Covid has had a substantial effect on the life of the College. Students were sent home in March 2020 and their studies were continued on line. A new cohort of students arrive in the autumn of 2020 and remained at the College until Christmas. Some returned in January 2020 but others were not allowed to enter Spain due to Covid restrictions. The strategy of the Trustees is to keep the College open as far as possible and to return to normal operations as soon as possible
The Trustees have been kept fully informed by the Rector of the steps that he has taken.
The effects of Covid on the Finances of the College .
Some of the expenses have been reduced, such as domestic costs when students were not in residence, and fewer costs for visiting lecturers. Against this there are higher IT costs and a reduction in investment income and rents from properties. The Trustees consider that on balance, the financial position is stable and that they can with confidence present these accounts as representing a going concern.
RISK ASSESSMENT
The Trustees have prepared and approved a risk assessment plan. The plan considers factors, which could influence the operation of the College in Spain, as well as factors, which could affect the operation of the Trust in England. The plan is reviewed annually. Also, the College has prepared a major disaster recovery policy document. Covid was totally unexpected and the Risk Assessment plan has been revised accordingly.
The report last year reported that two former students made unwarranted accusations against the College and Rector. These matters have been resolved with the help of the College Solicitors. The legal fees costs were met from Trust funds.
The Trustees have taken legal advice and concluded that specialist insurance cover is not required for their own liabilities.
5
THE VALLADOLID TRUST FUND
TRUSTEES' REPORT (Continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
FINANCIAL POSITION
Income in the year amounted to £480,642 (2020: £306,424). Income from student fees increased from £86,900 in 2020 to £288,000 in 2021 (before refunds). During the year refunds of £18,000 were given in respect of past fees not due, meaning that student fee income reduced to £270,000. Expenditure amounted to £136,023 (2020: £143,336) the reduction was mainly due to lower teaching fees.
The statement of Financial Activities disclosed net income of £344,619 (2020: £163,088). Realised and unrealised gains on investments for 2021 amounted to £1,284,145 (2020 – losses of £270,909). At September 30 2021, the Charity had net assets of £10,518,830 (2020: £8,890,066) which are all held as unrestricted funds.
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
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 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 on 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 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
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Prepare the financial statements on a 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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed dated 1 November 1961 as amended by the supplemental deed dated 21 October 1992. They are also responsible for safeguarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The accounts accompanying this report comply with current statutory requirements and the Trust Deed.
Bernard Longley Trustee
Nicholas Rothon Secretary to the Trustees Date: 24 June 2022
6
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE VALLADOLID TRUST FUND
Opinion
We have audited the financial statements of The Valladolid Trust Fund for the year ended 30 September 2021 which comprise 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 30 September 2021 and of the charity’s net movement in funds for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.
In connection with our audit of the financial statements, 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 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.
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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adequate accounting records have not been kept by the charity; or
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sufficient accounting records have not been kept; or
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the charity’s financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees for the financial statements
As explained more fully in the Statement of Trustees’ Responsibilities 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 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.
7
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE VALLADOLID TRUST FUND
Auditor’s responsibilities for the audit of the financial statements
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.
Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Canon Law, the Charities Act 2011 and The Statement of Recommended Practice for Charities (SORP 2019).
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audit procedures performed by the engagement team included:
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Inspecting trustees’ minutes
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Inspecting correspondence with regulators and tax authorities;
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Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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Evaluating management’s controls designed to prevent and detect irregularities; and
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Challenging assumptions and judgements made by management in their critical accounting estimates.
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 auditor’s report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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’s trustees as a body for our audit work, for this report, or for the opinions we have formed.
Haysmacintyre LLP Statutory Auditors 10 Queen Street Place London EC4R 1AG
Date: 24 June 2022
Haysmacintyre is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
8
THE VALLADOLID TRUST FUND
BALANCE SHEET
AS AT 30 SEPTEMBER 2021
| 2021 | 2021 | 2020 | |||
|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | |
| FIXED ASSETS | |||||
| Investments | 2 | 9,744,723 | 8,087,115 | ||
| CURRENT ASSETS | |||||
| Debtors | 3 | 397,295 | 440,820 | ||
| Bank and cash | 386,976 | 371,018 | |||
| ------------------ | ------------------ | ||||
| 784,271 | 811,838 | ||||
| CREDITORS- due within one year | 4 | (10,164) | (8,887) | ||
| ----------------- | ----------------- | ||||
| NET CURRENT ASSETS | 774,107 | 802,951 | |||
| -------------------- | -------------------- | ||||
| TOTAL NET ASSETS | £10,518,830 | £8,890,066 | |||
| ========== | ========== | ||||
| Represented by: | |||||
| UNRESTRICTED FUNDS | £10,518,830 | £8,890,066 | |||
| ========== | ========== |
The financial statements were approved and authorised for issue by the Board of the Trustees on 24 June 2022 and were signed below on its behalf by:
Bernard Longley Trustee
9
THE VALLADOLID TRUST FUND
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 30 SEPTEMBER 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Notes | £ | £ | |
| INCOME FROM: | |||
| Donations and legacies | 5 | - | 24,548 |
| Investments | 6 | 210,642 | 194,976 |
| Charitable activities | |||
| Teaching | 270,000 | 86,900 | |
| ----------------- | ----------------- | ||
| Total income | 480,642 | 306,424 | |
| ----------------- | ----------------- | ||
| EXPENDITURE ON: | |||
| Raising funds | |||
| Investment managers fees | 33,838 | 30,176 | |
| Charitable expenditure: | |||
| Teaching | 102,185 | 113,160 | |
| ---------------- | ---------------- | ||
| Total expenditure | 7a | 136,023 | 143,336 |
| ---------------- | ---------------- | ||
| Net income before gains/(losses) | 344,619 | 163,088 | |
| Gains/(losses) on investments | 2 | 1,284,145 | (270,909) |
| ------------------- | ------------------- | ||
| Net income/(expenditure) | 1,628,764 | (107,821) | |
| Reconciliation of funds: | |||
| Balance at 1 October 2020 | 8,890,066 | 8,997,887 | |
| ---------------------- | ---------------------- | ||
| Balance at 30 September 2021 | £10,518,830 | £8,890,066 | |
| =========== | =========== |
All funds in both years are unrestricted.
There have been no discontinued activities in this or the preceding year.
The accompanying notes are an integral part of the financial statements.
10
THE VALLADOLID TRUST FUND
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. ACCOUNTING POLICIES
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.
a) Basis of preparation
The financial statements have been prepared in accordance with The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019) and the Charities Act 2011.
The charity meets the definition of a public benefit entity under FRS 102. The charity is a registered as a charity in England and Wales (charity number: 206957). Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
b) Critical accounting estimates and areas of judgement
In the application of the accounting policies, the Trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.
In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
c) Assessment of going concern
The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.
The Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the Trustees' Report for more information).
d) Cash flow statement
The Trustees have taken advantage of the provisions set out in the Charities SORP (FRS102) Update Bulletin 1 in which smaller charities are no longer required to prepare a cash flow statement, and therefore no cash flow statement is included within the financial statements.
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THE VALLADOLID TRUST FUND
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
1. ACCOUNTING POLICIES (continued)
e) Income recognition
Income is recognised when the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Income comprises tuition fees and investment income received in respect of the Trust’s continuing activities.
Legacies and donations are recognised when receivable or when the Trust becomes legally entitled to them. Receipts of property, investments or other gifts in kind are included at market value.
f) Expenditure recognition
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Charitable expenditure consists of all expenditure directly relating to the objects of the Trust. It also includes Governance costs which consist of expenditure in relation to compliance requirements with constitutional and statutory requirements.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
g) Investments
Quoted investments are valued at fair value on the balance sheet date.
Realised and unrealised gains (or losses) are reflected in the Statement of Financial Activities in the year in which they occur.
Mixed motive investments are social investments consisting of assets that are used for both charitable purposes and also for investment return. These assets are valued at fair value at the Balance Sheet date.
h) Financial Instruments
The charity only holds 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.
i) Debtors
College fees and other debtors, including accrued income, are recognised at the settlement amount due. Prepayments are valued at the cash amount prepaid.
j) Cash at bank and in hand
Cash at bank and in hand includes cash deposits held in the charity’s bank account. This is excluding cash held within the capital and income accounts of the investment portfolio which is included within investment valuation.
k) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
12
THE VALLADOLID TRUST FUND
NOTES TO THE ACCOUNTS (Continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
| 2. | FIXED ASSET INVESTMENTS | 2021 | 2020 |
|---|---|---|---|
| £ | £ | ||
| Quoted investments | |||
| At 1 October 2020 at market value | 7,996,913 | 7,794,759 | |
| Additions | 1,452,895 | 2,402,594 | |
| Disposals | (1,206,462) | (1,929,531) | |
| Realised and unrealised gain | 1,283,936 | (270,909) | |
| --------------------- | --------------------- | ||
| Market value at 30 September 2021 | 9,527,282 | 7,996,913 | |
| Cash | 217,441 | 90,202 | |
| --------------------- | --------------------- | ||
| Total investments at market value | £9,744,723 | £8,087,115 | |
| ========== | ========== | ||
| Cost at 30 September 2021 | £7,337,088 | £6,851,074 | |
| ========== | ========== | ||
| Market | value | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Quoted investments | |||
| UK Government Stocks and Fixed Interest Bonds | 1,359,646 | 972,691 | |
| UK Equities and Convertibles | 2,498,541 | 2,165,299 | |
| Other | 5,490,462 | 4,858,923 | |
| --------------------- | --------------------- | ||
| 9,348,649 | 7,996,913 | ||
| Mixed motive social investment (see below) | 178,633 | - | |
| Cash | 217,441 | 90,202 | |
| --------------------- | --------------------- | ||
| Total | £9,744,723 | £8,087,115 | |
| ========== | ========== |
The mixed motive social investment is an investment in Missio Invest Social Impact Fund, A US-based fund that provides loans to church educational projects in developing countries. The fund is also expecting to provide a limited income in future years and is therefore classed as a mixed motive investment.
| 3. | DEBTORS | 2021 | 2020 |
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Proceeds from sale of property | 50,400 | 50,400 | |
| Accrued income | 65,295 | 58,420 | |
| ----------------- | ----------------- | ||
| Due after one year | 115,695 | 108,820 | |
| Proceeds from sale of property | 281,600 | 332,000 | |
| ----------------- | ----------------- | ||
| £397,295 | £440,820 | ||
| ======== | ======== |
13
THE VALLADOLID TRUST FUND
NOTES TO THE ACCOUNTS (Continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
| 4. | CREDITORS: Due within one year | 2021 | 2020 |
|---|---|---|---|
| £ | £ | ||
| Accrued expenditure | 10,164 | 8,887 | |
| ----------------- | ----------------- | ||
| £10,164 | £8,887 | ||
| ======== | ======== | ||
| 5. | DONATIONS AND LEGACIES INCOME | 2021 | 2020 |
| £ | £ | ||
| Legacies and sundry income | - | £24,548 | |
| ======== | ======== | ||
| 6. | INVESTMENT INCOME | 2021 | 2020 |
| £ | £ | ||
| Dividends and interest on investment holdings | 210,637 | 194,794 | |
| Bank interest | 5 | 182 | |
| ---------------- | ---------------- | ||
| £210,642 | £194,976 | ||
| ========= | ========= |
14
THE VALLADOLID TRUST FUND
NOTES TO THE ACCOUNTS (Continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
| 7a. | ANALYSIS OF EXPENDITURE | 2021 | 2020 |
|---|---|---|---|
| £ | £ | ||
| Charitable expenditure – Direct education costs | |||
| Teaching expenses | 73,178 | 92,090 | |
| Travel and motor expenses | - | 6,932 | |
| Books | 289 | 216 | |
| Bank charges | 163 | 163 | |
| Office and sundry expenses | 17,080 | 7,399 | |
| Governance costs (see below) | 11,475 | 6,360 | |
| ---------------- | ---------------- | ||
| 102,185 | 113,160 | ||
| Raising funds | |||
| Investment management fees | 33,838 | 30,176 | |
| ----------------- | ----------------- | ||
| £136,023 | £143,336 | ||
| ========= | ========= | ||
| 7b. | Governance Costs | ||
| Audit | 5,700 | 4,799 | |
| Accountancy | 1,500 | 1,250 | |
| Trustees’ travel expenses | 4,275 | 311 | |
| -------------- | -------------- | ||
| £11,475 | £6,360 | ||
| -------------- | -------------- |
8. TRUSTEES’ REMUNERATION AND EXPENSES
None of the Trustees have been paid any remuneration or received any other benefits from an employment with the charity or any related entity. The Charity has no employees. Its key management personnel are its trustees who are unpaid apart from the payments listed below.
The Rector, Canon Paul Farrer received £18,000 in the year (2020: £16,800) in his capacity as Rector.
Mgr Nicholas Rothon, College Agent received £3,000 (2020: £2,800) in his capacity as agent.
The assistant agent, Gary Brassington, also received remuneration of £3,000 (2020: £2,800).
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Expenses paid to the trustees were as follows: | ||
| Travel | 4,275 | 311 |
| ====== | ======= | |
| The amounts reimbursed above were in relation to 1 trustee (2020: 5 trustees). |
15
FOR THE INFORMATION OF TRUSTEES ONLY
THE VALLADOLID TRUST FUND
DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 30 SEPTEMBER 2021
| 2021 | 2020 | |||
|---|---|---|---|---|
| £ | £ |
£ | £ | |
| INCOME FROM: | ||||
| Fees charged to dioceses | 270,000 | 86,900 | ||
| Dividends and interest | 210,637 | 194,794 | ||
| Interest – money market and current | 5 | 182 | ||
| Donations and legacies | - | 24,548 | ||
| ----------------- | ----------------- | |||
| Total income | 480,642 | 306,424 | ||
| ----------------- | ----------------- | |||
| EXPENDITURE ON: | ||||
| Direct charitable expenditure | ||||
| Teaching expenses | ||||
| - Tuition | 60,500 | 56,500 | ||
| - Teaching expenses | 12,678 | 34,894 | ||
| - National Insurance | - | 696 | ||
| ----------------- | ----------------- | |||
| 73,178 | 92,090 | |||
| Travel and motor expenses | ||||
| - Travel | - | 6,932 | ||
| - Trustees’ travel expenses | 4,275 | 311 | ||
| ----------------- | ----------------- | |||
| 4,275 | 7,243 | |||
| Office and Sundry Expenses | ||||
| - Computer and office consumables | 86 | 324 | ||
| - Sundry expenses | 14,066 | 5,164 | ||
| - Other | 2,928 | 1,600 | ||
| ------------------ | ------------------ | |||
| 17,080 | 7,088 | |||
| Books | 289 | 216 | ||
| Bank charges | 163 | 163 | ||
| ------------------- | ------------------- | |||
| 452 | 379 | |||
| Management and Administration | ||||
| -Audit and accountancy | 7,200 | 6,360 | ||
| -Investment management fees | 33,838 | 30,176 | ||
| ------------------ | ------------------ | |||
| 41,038 | 36,536 | |||
| ----------------- | ----------------- | |||
| Total expenditure | 136,023 | 143,336 | ||
| ----------------- | ----------------- | |||
| Net income before gains | 344,619 | 163,088 | ||
| Realised and unrealised (losses)/gains on investments | 1,284,145 | (270,909) | ||
| ------------------ | ------------------ | |||
| Net income/(expenditure) | 1,628,764 | (107,821) | ||
| Balance brought forward at 1 October 2020 | 8,890,066 | 8,997,887 | ||
| -------------------- | -------------------- | |||
| Balance carried forward at 30 September 2021 | £10,518,830 | £8,890,066 | ||
| ========== | ========== |
16