2023-12-31-accounts - The Northcote Trust

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REGISTERED CHARITY NUMBER: 207813

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

THE NORTHCOTE TRUST

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 December 2023

	Page
Reference and Administrative Details	1
Report of the Trustees	2 to 3
Independent Examiner's Report	4
Statement of Financial Activities	5
Balance Sheet	6
Notes to the Financial Statements	7 to 11

THE NORTHCOTE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS for the Year Ended 31 December 2023

TRUSTEES	G D Fergusson
	Dr S Sleight
	Dr M Mayston
	Professor P Austin
	Baroness Liddell of Coatdyke (resigned 23.10.23)
	P Madden (appointed 23.10.23)
PRINCIPAL ADDRESS	Australia Centre
	Strand
	London
	WC2B 4LG
REGISTERED CHARITY	207813
NUMBER
INDEPENDENT EXAMINER	Oury Clark Chartered Accountants
	Herschel House
	58 Herschel Street
	Slough
	Berkshire
	SL1 1PG
BANKERS	CAF Bank
	25 Kings Hill Avenue
	West Malling
	Kent
	ME19 4JQ
	Commonwealth Bank of Australia
	Ground Floor Tower 1
	201 Sussex Street
	Sydney
	NSW 2000
	Australia
INVESTMENT MANAGERS	M&G Investments
	PO Box 9038
	Chelmsford
	CM99 2XF
	Schroders Unit Trust Ltd
	1 London Wall Place
	London
	EC2Y 5AU

Page 1

THE NORTHCOTE TRUST

REPORT OF THE TRUSTEES for the Year Ended 31 December 2023

The Trustees present their report with the financial statements of the charity for the year ended 31 December 2023. The Trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Trust's present objectives are to fund graduate studies at Australian universities and colleges for students resident in the UK. The Trust's objectives have changed in the past due to the need to adapt to circumstances.

The original objectives as determined by Lady Northcote's will became neither desirable nor feasible. As a result of a strategic review the Trustees sought wider powers in 1974 from the Charity Commissioners. These wider powers now allow the Trust to pursue their present objectives.

It is the Trustees' responsibility to review the current strategy on a regular basis to ensure that the strategy is appropriate and that there remains a demand from students for Northcote scholarships as well as an interest from Australian universities and colleges in taking graduate students from the UK.

Public benefit

In shaping our objectives for the year and planning our activities, the Trustees have considered the Charity Commission's guidance on public benefit, including the guidance "Public Benefit Running a Charity" (PB2) and are satisfied that the Charity's activities, set out above, met the criteria for public benefit.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Trustees again launched their awards application process in 2023 for study commencing in 2024. In light of previous volatility in financial markets and in order to exercise caution to support all existing students, the Trustees made an award to one PhD student (for 3 years to James Cook University). The Masters student (up to 2 years at the University of Western Australia) who was due to commence studies in 2023 deferred commencement to early 2024 due to visa delays.

The Trustees also continued to meet their obligations to the students currently undertaking or completing their postgraduate studies and made grants totalling £130,607 (2022: £149,026).

FINANCIAL REVIEW

Financial position

The net gain for the year amounted to £188,143 (2022: loss £226,731). The Trust incurred a net surplus of £48,483 (2022: surplus £18,357) prior to an investment surplus arising on the Trust's investment portfolio totalling £139,660 (2022: deficit £245,088).

Principal funding came from the investment income arising on the Trust's investment portfolio. Investment returns increased from £184,922 in the year to 31 December 2022 to £200,115 for the year ended 31 December 2023. It is the aim of the Trustees to maximise the levels of grants paid each year whilst maintaining the Trust's capital, thereby ensuring the availability of income in future years so that grants giving may be maintained.

Investment policy and objectives

The investment objectives are firstly to protect, and secondly to enhance, the capital and income values of the investments in real terms in order that the aims of the Trustees can be fulfilled in future years at or above the current level of expenditure. The Trustees are risk averse. The current investment policy requires all investment funds to be held in unit trusts appropriate for British charities. The performance of the unit trust managers is monitored and the asset allocation is reviewed on an annual basis.

Reserves policy

The Charity's total reserves at 31 December 2023 amounted to £4,349,648 comprising £4,156,368 held in an expendable endowment fund and the balance of £193,280 in unrestricted general funds. The endowment fund represents the carrying value of the investments at the Balance Sheet date and demonstrates that these assets are held for the long-term to generate future income. The unrestricted general funds represent the free reserves of the Charity.

Page 2

THE NORTHCOTE TRUST

REPORT OF THE TRUSTEES for the Year Ended 31 December 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity administers a Trust Fund established under the will of Baroness Northcote, subsequently altered by a scheme approved by the Charity Commissioners in 1974 and constitutes an unincorporated charity.

Recruitment and appointment of new Trustees

Trustees are appointed by resolution of Trust Deeds.

Organisational structure and administration

Trustees are appointed by resolution of the Trustees. They meet twice a year. The Britain-Australia Society is responsible for the administration of the Trust under the instruction of the Trustees.

May 23, 2024

Approved by order of the board of Trustees on ............................................. and signed on its behalf by:

George Fergusson (May 23, 2024 13:53 GMT+1)

........................................................................

G D Fergusson - Trustee

Page 3

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE NORTHCOTE TRUST

Independent examiner's report to the Trustees of The Northcote Trust

I report to the charity Trustees on my examination of the accounts of The Northcote Trust (the Trust) for the year ended 31 December 2023.

Responsibilities and basis of report

As the charity Trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or
the accounts do not accord with those records; or
the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Oury Clark Oury Clark (May 23, 2024 17:30 GMT+1)

Oury Clark

Oury Clark Chartered Accountants Herschel House 58 Herschel Street Slough Berkshire SL1 1PG

Date: ............................................. May 23, 2024

Page 4

THE NORTHCOTE TRUST

STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 December 2023

Notes INCOME AND ENDOWMENTS FROM Investment income 2 EXPENDITURE ON Charitable activities 3 Charitable Activities Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted fund £ 200,115 151,632 - 48,483 144,797 193,280	Endowment fund £ - - 139,660 139,660 4,016,708 4,156,368	31.12.23 Total funds £ 200,115 151,632 139,660 188,143 4,161,505 4,349,648	31.12.22 Total funds £ 184,922 166,565 (245,088) (226,731) 4,388,236 4,161,505

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 5

THE NORTHCOTE TRUST

BALANCE SHEET 31 December 2023

Notes FIXED ASSETS Investments 7 CURRENT ASSETS Cash in hand CREDITORS Amounts falling due within one year 8 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 9 Unrestricted funds Endowment funds TOTAL FUNDS	Unrestricted fund £ - 194,965 (1,685) 193,280 193,280 193,280	Endowment fund £ 4,156,368 - - - 4,156,368 4,156,368	31.12.23 Total funds £ 4,156,368 194,965 (1,685) 193,280 4,349,648 4,349,648 193,280 4,156,368 4,349,648	31.12.22 Total funds £ 4,016,708 146,482 (1,685) 144,797 4,161,505 4,161,505 144,797 4,016,708 4,161,505

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. May 23, 2024 and were signed on its behalf by:

George Fergusson (May 23, 2024 13:53 GMT+1)

............................................. G D Fergusson - Trustee

The notes form part of these financial statements

Page 6

THE NORTHCOTE TRUST

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

At the time of approving the accounts, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts

Allocation and apportionment of support costs

Support costs are those functions that assist the work of the Trust but do directly undertake charitable activities. Support costs include office costs and governance costs which support the Trust's activities. These costs have been allocated to expenditure on charitable activities.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

continued...

Page 7

THE NORTHCOTE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES - continued

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Financial instruments

Basic Financial Instruments, as covered by Section 11 of FRS 102, are measured at amortised cost. The company does not have any Other Financial Instruments, as covered by Section 12 of FRS 102.

Realised/unrealised 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.

2. INVESTMENT INCOME

Dividends - equities Interest - fixed interest securities Interest on cash deposits 3. CHARITABLE ACTIVITIES COSTS Charitable Activities 4. SUPPORT COSTS Management £ Charitable Activities 13,860	Grant funding of activities £ 130,607 Finance £ 6,942	31.12.23 £ 172,563 26,840 712 200,115 Support costs (see note 4) £ 21,025 Other £ 223	31.12.22 £ 172,931 11,722 269	31.12.22 £ 172,931 11,722 269
			184,922
				Totals £ 151,632
				Totals £ 21,025

5. TRUSTEES' REMUNERATION AND BENEFITS

There were no Trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

There were no Trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.

continued...

Page 8

THE NORTHCOTE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2023

6. GRANTS PAYABLE

Grants for the year ended 31st December 2023 represent awards to various individuals. Grants are made on approval by the Trustees and are paid to support recipients that are normally residents in the UK whilst studying abroad in Australia.

7. FIXED ASSET INVESTMENTS

MARKET VALUE At 1 January 2023 Revaluations At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022	Unlisted investments £ 4,016,708 139,660 4,156,368 4,156,368 4,016,708

Market value analysed by type of investment

UK fixed interest UK equities Overseas equities	2023 £ 1,214,021 2,652,116 290,231 4,156,368	2022 £ 577,102 2,997,338 442,268 4,016,708

Cost or valuation at 31 December 2023 is represented by:

Valuation in 2023	Unlisted investments £ 4,156,368

If fixed asset investments had not been revalued they would have been included at the following historical cost:

	31.12.23	31.12.22
	£	£
Cost	3,316,490	3,316,490

continued...

Page 9

THE NORTHCOTE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2023

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Other creditors 9. MOVEMENT IN FUNDS Unrestricted funds General fund Endowment funds Endowment funds TOTAL FUNDS Net movement in funds, included in the above are Unrestricted funds General fund Endowment funds Endowment funds TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund Endowment funds Endowment funds TOTAL FUNDS	as follows: Incoming resources £ 200,115 - 200,115	At 1.1.23 £ 144,797 4,016,708 4,161,505 Resources expended £ (151,632) - (151,632) At 1.1.22 £ 126,440 4,261,796 4,388,236		31.12.23 £ 1,685 Net movement in funds £ 48,483 139,660 188,143 Gains and losses £ - 139,660 139,660 Net movement in funds £ 18,357 (245,088) (226,731)	31.12.22 £ 1,685 At 31.12.23 £ 193,280 4,156,368 4,349,648 Movement in funds £ 48,483 139,660 188,143 At 31.12.22 £ 144,797 4,016,708 4,161,505

continued...

Page 10

THE NORTHCOTE TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2023

9. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds General fund Endowment funds Endowment funds TOTAL FUNDS	Incoming resources £ 184,922 - 184,922	Resources expended £ (166,565) - (166,565)	Gains and Movement losses in funds £ £ - 18,357 (245,088) (245,088) (245,088) (226,731)

10. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2023.

Page 11