2023-04-05-accounts - Frederick George Dray, Residuary Estate Trust

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FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2023

Charity Number 211443

FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

CONTENTS PAGE

	Pages
Reference and Administration Details	1
Report of the Trustee	2 - 4
Independent Examiners Report	5
Receipts and Payments Account	6
Statement of Assets and Liabilities	7
Appendix 1	8

FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

REFERENCE AND ADMINISTRATION DETAILS

Corporate Trustee	HSBC Trust Company (UK) Limited
Current Directors of Corporate Trustee	J Coyle
	J Hewiston
	P M Spencer
Trust Manager	N Millar
Principal Office	Forum 1
	The Forum Parkway
	Whiteley
	Fareham
	Hampshire
	PO15 7PA
Independent Examiner	Frances Millar ACA
	RSM UK Tax and Accounting Limited
	Highfield Court
	Tollgate
	Chandlers Ford
	Eastleigh
	Hampshire
	SO53 3TY
Bankers	HSBC Bank plc
	Forum 1
	The Forum Parkway
	Whiteley
	Fareham
	Hampshire
	PO15 7PA
Investment Managers	HSBC UK Bank plc
	1 Centenary Square
	Birmingham
	B1 1HQ

FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

REPORT OF THE TRUSTEE FOR THE YEAR ENDED 5 APRIL 2023

The Trustee presents its report together with the financial statements of the charity for the year ended 5 April 2023, which have been prepared on a receipts and payments basis. The financial statements have been prepared in accordance with the charity’s constitution and applicable law.

The purchase and sale of investments results from the day to day management of the investment portfolio by the Investment Manager. In accordance with the Charities Act, the accounts have been prepared on the receipts and payments basis given that the definition of gross income excludes the receipt of any endowment, loans and proceeds from the sale of investments or fixed assets.

Structure, government and management

The Frederick George Dray, Residuary Estate Trust is an unincorporated Trust and is constituted under the will dated 20 January 1938 of the late Mr Frederick George Dray. The Trust is a registered charity (no. 211443).

The Corporate Trustee has appointed a designated Trust Manager to look after the charity. The Investment Manager reviews the performance and provides recommendations on the structure of the investment portfolios.

The power to appoint additional Trustees is vested in the current Trustee and is exercisable in writing. Should new Trustees be appointed, the existing Trustee would take responsibility of their induction.

The Trustee has examined the major strategic, business and operational risks which the charity faces and confirms that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks. The main risk in the year was the variability of investment returns.

Objectives and activities

The objectives of the charity are in perpetuity to pay or to apply the income from the trust fund for the benefit of the following charities, in equal proportions;

Dr Barnardo’s Homes
Lord Mayor Treloar’s Cripples Hospital (now known as Treloar Trust)
Spurgeon’s Orphan Homes Stockwell (now known as Spurgeon’s Child Care)
West London Hospital, Hammersmith (now known as Imperial College Healthcare)

The charity awards grants to these charitable institutions throughout the year.

Achievements and performance

During the year 18 (2022: 16) grants totalling £25,387 (2022: £19,998) were awarded to charitable institutions. Of the above no grants were awarded to individuals to cover refreshment and travel expenses to visit the grave of Mr Frederick George Dray, as detailed in his last will and testament. The beneficiaries are disclosed in Appendix 1 of the financial statements.

Financial review

The fund generated investment income of £29,280 (2022: £22,971) in the year to fund its charitable activities. The expenditure on charitable activities was £25,613 (2022: £20,216), of which £25,387 (2022: £19,998) was charitable expenditure in the form of grants to charitable institutions.

FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

REPORT OF THE TRUSTEE cont. FOR THE YEAR ENDED 5 APRIL 2023

Investment policy

In accordance with the governing document, the Trustee has the power to invest in such stocks, shares, investments and property as they see fit. The Trustee engaged HSBC UK Bank plc as Investment Manager. The policy is to adopt a low to medium risk investment strategy to protect, in absolute terms, the capital value of the fund whilst producing a sustainable and growing level of income and providing the potential for longer term growth of capital in real terms.

Reserves policy

The unrestricted funds, which are the free reserves of the charity, and which are represented by the income arising, are paid over to beneficiaries throughout the year. It is not the policy of the charity to maintain specific reserves.

The restricted funds are held in a Spurgeon’s Child Care Fund. These funds were set up in accordance with the will for the sole purpose of applying income thereon to Spurgeon’s Child Care. The balance on the fund was:

	2023	2022
	£	£
Spurgeon's Child Care	2,157	2,294

The permanent endowment funds represent those assets which are held permanently by the charity and are principally investments. Income arising on the endowment fund can be used in accordance with the objectives of the charity and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management fees and certain management and administration costs are charged against the fund in accordance with the terms of the governing document.

Public benefit

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Trustee considers how planned activities will contribute to the aims and objectives they have set.

Plans for the future

The Trustee intends to continue providing grants in a similar way to the recent past whilst retaining flexibility as to the timing and scale of grant making.

Related parties

The Corporate Trustee and the Investment Manager are both wholly owned subsidiaries of HSBC Holdings plc.

In addition to the fees shown on page 6, as a result of the acquisition and disposal of investments, the charity pays transaction charges to HSBC Bank plc. The charges are calculated on a sliding scale at a percentage of the transactions value plus VAT and are added to or deducted from the cost of the investments or the disposal proceeds in accordance with UK standard accounting practice.

FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

REPORT OF THE TRUSTEE cont. FOR THE YEAR ENDED 5 APRIL 2023

Statement of Trustee’s responsibilities in relation to the financial statements

The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of it’s financial position at the end of the year. In preparing those financial statements, giving a true and fair view, the Trustee should follow best practice and:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustee is responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity. This enables them to ascertain the financial position of the charity and enables them to ensure the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) 2008 Regulations and the provisions of the trust deed.

The Trustee is responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustee and signed on its behalf:

Nigel Millar

………………………………………..

HSBC Trust Company (UK) Limited

Date: ………………………………… 29 January 2024

FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

INDEPENDENT EXAMINERS REPORT TO THE TRUSTEE OF THE FREDERICK GEORGE DRAY RESIDUARY ESTATE TRUST

I report to the Trustee on my examination of the financial statements of The Frederick George Dray Residuary Estate Trust for the year ended 5 April 2023, which are set out on pages 6 to 7.

Responsibilities and basis of report

As the Trustee of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent Examiner’s statement

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

accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements 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 financial statements to be reached.

Frances Millar

Frances Millar ACA Chartered Accountant The Institute of Chartered Accountants in England and Wales

On behalf of RSM UK Tax and Accounting Limited Chartered Accountants Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TY

29-Jan-2024 Date:………………………………..

FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

RECEIPTS AND PAYMENTS ACCOUNT FOR THE YEAR ENDED 5 APRIL 2023

Unrestricted funds	Unrestricted funds	Restricted Endowment funds funds	Restricted Endowment funds funds	Total Total 2023 2022
Receipts	£	£	£	£ £
Investment income	29,280	-	-	29,280 22,971
Investment sale proceeds	29,280	-	-	29,280 22,971
Proceeds from the sale of investments	-	-	525,068	525,068 804,135
Total receipts Payments Cost of generating funds	29,280	-	525,068	554,348 827,106
Investment service charge	-	-	1,842	1,842 2,621
Charitable activities Grants paid	25,387	-	-	25,387 19,998
Other allocated costs	226	-	-	226 218
Governance costs
Accountancy fees	1,680	-	-	1,680 2,148
Investment purchases	27,293	-	1,842	29,135 24,985
Payments for purchases of investments	-	-	517,796	517,796 803,863
Total payments Net receipts/(payments) Transfers between funds Cash invested at 6 April 2022 Cash invested at 5 April 2023	27,293 1,987 (2,123) 474 338	- - - 15 15	519,638 5,430 2,123 23,924 31,477	546,931 828,848 7,417 (1,742) - - 24,413 26,155 31,830 24,413

These unaudited financial statements have been subject to independent examination. See report on page 5.

FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

STATEMENT OF ASSETS AND LIABILITIES AT 5 APRIL 2023

Unrestricted Restricted Endowment funds funds funds £ £ £ Investments UK Fixed Interest Securities - - 17,362	Unrestricted Restricted Endowment funds funds funds £ £ £ Investments UK Fixed Interest Securities - - 17,362	Total Total 2023 2022 £ £ 17,362 -
Overseas Fixed Interest Securities	- 2,142 1,018,561	1,020,703 1,071,313
Alternative Investment UK Equities Overseas Equities	- - 151,433 - - - - - 161,456	151,433 - - 17,630 161,456 369,822
Cash	338 15 31,477	31,830 24,413
Total assets Liabilities Professional fees payable	338 2,157 1,380,289 2,376 - -	1,382,784 1,483,178 2,376 2,263

Approved by the Trustee and authorised for issue on ................................. and signed on their behalf: 29 January 2024

..………………………………….. Nigel Millar HSBC Trust Company (UK) Limited

These unaudited financial statements have been subject to independent examination. See report on page 5.

FREDERICK GEORGE DRAY, RESIDUARY ESTATE TRUST

APPENDIX 1 BREAKDOWN OF CHARITABLE GRANTS FOR THE YEAR ENDED 5 APRIL 2023

Institutions Number of Amount grants £ Dr Barnado's Homes 4 6,338 Imperial College Healthcare 4 6,338	Institutions Number of Amount grants £ Dr Barnado's Homes 4 6,338 Imperial College Healthcare 4 6,338
Spurgeon's Child Care	6 6,337
Treloar Trust	4 6,374
	18 25,387

These unaudited financial statements have been subject to independent examination. See report on page 5