Company number: 386771 Charity number: 214050
SCHRODER CHARITY TRUST
Financial Statements 31 March 2024
SCHRODER CHARITY TRUST
Financial statements for the year ended 31 March 2024
| Contents | Page |
|---|---|
| Reference and administrative information | 1 |
| Report of the directors | 2 - 5 |
| Independent auditor’s report | 6 - 8 |
| Statement of financial activities | 9 |
| Balance sheet | 10 |
| Statement of cash flows | 11 |
| Notes to the financial statements | 12 – 19 |
SCHRODER CHARITY TRUST
Reference and administrative information For the year ended 31 March 2024
Directors and Trustees:
Mrs C B Mallinckrodt (Resigned 15 June 2023) Mrs C L Fitzalan Howard Ms M K Fitzalan Howard (Appointed 1 September 2023) Mr T B Schroder (Chairman) (Resigned 25 June 2024) Ms L K E Schroder (Chairman from 26 June 2024) Mr J H F Schroder
Company Secretary and Charities Director:
Miss L M Bowman
Registered Office:
81 Rivington Street London EC2A 3AY
Solicitors:
Withers 20 Old Bailey London EC4M 7AN
Auditor:
UHY Hacker Young Thames House Roman Square Sittingbourne ME10 4BJ
Bankers:
Schroder & Co Limited 1 London Wall Place London EC2Y 5AU
CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ
Investment Manager:
Cazenove Capital 1 London Wall Place London EC2Y 5AU
1
SCHRODER CHARITY TRUST
Report of the directors for the year ended 31 March 2024
The directors, who are also the Trustees of the Schroder Charity Trust (‘the Trust’), present their report and the audited financial statements for the year ended 31 March 2024.
Reference and administrative details
The financial statements comply with the charity’s Trust Deed, the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP (FRS 102)).
Origin of Trust
The Bruno Schroder Charity Trust was incorporated on the 6 April 1944 as an unlimited company having an authorised share capital of £100. The name was changed to Schroder Charity Trust on the 11 June 1953.
The Trust is a charity registered in England and Wales, charity number 214050.
The Trust is a private unlimited company registered in the United Kingdom, company number 386771.
Directors and their interests in shares
The directors who were in office during the year and their interests in the shares of the company at 1 April 2023 and 31 March 2024, were as follows:
| arch 2024, were as follows: | ||
|---|---|---|
| 1 April | 31 March | |
| 2023 | 2024 | |
| Mrs C B Mallinckrodt | 1 | - |
| Mrs C L Fitzalan Howard | 1 | 1 |
| Ms M K Fitzalan Howard | - | 1 |
| Mr T B Schroder | 1 | 1 |
| Ms L K E Schroder | 1 | 1 |
| Mr J H F Schroder | 1 | 1 |
One share is also held by the Executors of Mr B L Schroder who are not a director.
People with significant control
After due counsel, the Directors have determined that there is no registrable person or registrable relevant legal entity in relation to the Trust.
Structure, governance and management
Constitution
Schroder Charity Trust is an unlimited company registered in the United Kingdom, number 386771. It is a charity registered in England and Wales, number 214050, and is governed by its Memorandum and Articles of Association.
Appointment of Directors, Induction and Training
The Memorandum and Articles of Association allow for not more than ten and not less than two Directors. New Directors can be appointed by a majority of those shareholders present at a general meeting (quorum: 2) of the members either to fill a vacancy or as an addition to the existing Board.
The induction process for any newly appointed Director comprises an initial meeting with the Chairman to understand powers and responsibilities, the governing document and the strategy of the Trust. This is followed by a meeting with the Company Secretary on the Trust’s grant-making process, and internal policies and procedures.
Objects and strategy
Under the Memorandum of Association, the Directors may receive donations and pay or apply the income and, if they shall think fit, the capital of the Trust to or for such charitable purposes whatsoever at such times and in such manner as the Directors shall from time to time think proper.
The Memorandum of Association authorises the Directors to invest without limitation.
2
SCHRODER CHARITY TRUST
Report of the directors for the year ended 31 March 2024 (continued)
Public Benefit
The Directors have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning their future activities.
Grant making policy
Applications are open to charities registered in the UK, who apply via an online form. Applications for funding are considered at bi-annual meetings of the Directors. Areas of focus include arts, culture and heritage; education, training and employment; environment and conservation; health and wellbeing; and strengthening communities.
Annual review
During the year 1,340 (2023: 1,032) applications were received. Grants were made to 110 charities (2023: 114).
Financial position
The capital of the Trust is principally shares in Schroders plc.
During the period the Trust received income of £595,378 (2023: £571,736). The directors made grants totalling £452,000 (2023: £512,300).
After taking into consideration net losses on investments for the year of £1,596,212 (2023: losses of £1,693,551) the net decrease in funds for the year, as shown in the Statement of Financial Activities, amounted to £1,516,962 (2023: decrease of £1,701,260).
The Trust’s net assets decreased to £11,282,622 from £12,799,584 due to the unrealised losses on the revaluation of investments.
Investment policy
The current policy is to maintain the Trust’s investment in the shares of Schroders plc, with the balance of the assets invested at the discretion of the directors’ appointed Investment Manager. Performance is reviewed at each board meeting and the investment policy remains under annual review.
Investment performance
At 31 March 2024, 81.3% of the value of the investment portfolio wass held in Schroders plc shares. Custody is provided by Schroder & Co. Ltd as part of their service. The allocation of investments for the remaining 18.7% is delegated to the Investment Manager who provides progress reports to directors at Board meetings. The directors also regularly review current strategy thereby ensuring the careful stewardship of Schroder Charity Trust funds.
At 31 March 2024 the charity holds 2,351,439 ordinary voting shares in Schroders plc with a value of £8,855,519 (2023: £10,571,393 total value of ordinary voting and non-voting shares)
The investment manager is tasked with maintaining or increasing the value of the portfolio, while ensuring there are sufficient funds to meet all commitments in full. On 31 March 2024, the market value of the settled funds stood at £10,887,373 (2023: £12,442,848). During the year ended 31 March 2024, net losses on investments were £1,596,212 (2023: net losses of £1,693,551).
3
SCHRODER CHARITY TRUST
Report of the directors for the year ended 31 March 2024 (continued)
Future plans
The directors will continue to receive and distribute charitable funds in accordance with their policies. The unrestricted funds are being managed to ensure that current levels of charitable grants are maintained for the foreseeable future.
Reserves policy
The directors are aware of the general legal duty to apply charitable funds within a reasonable time of receiving them. Accordingly, they intend to continue to:
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Donate in excess of 65% of the net budgeted income arising each year from its unrestricted funds.
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Retain the balance of such income in order to allow the directors to respond to specific appeals by making larger donations as the directors may from time to time consider to be appropriate.
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Review the level of the reserves twice a year.
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Review this policy once a year.
At the year end, total unrestricted reserves were £11,282,616 (2023: £12,799,578).
Risks
The directors have carried out a review of the major risks facing the charity. They have constructed a risk register which prioritises these risks and identifies the mitigating factors, systems and controls in relation to each risk. The directors also ensure that there is a comprehensive monitoring and review process in place to capture new risks as they may arise and that systems are in place to manage these.
The major risk to which the charity is exposed is that of incurring significant losses in the investment portfolio. General performance targets are set by the directors in relation to the investment portfolio, and the investment performance is kept under review by the directors. The income principally derived from dividends from shares in Schroders plc is allocated to grant-making activities each year, and the level of expenditure is based on available funds.
Interests
The directors maintain a ‘Register of Interests’ as a measure of good practice and also to ensure that no conflicts occur. This register is updated and reviewed on an annual basis.
Statement of directors’ responsibilities
The directors (who are also the trustees of the Schroder Charity Trust for the purposes of charity law) are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK 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 the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
4
SCHRODER CHARITY TRUST
Report of the directors for the year ended 31 March 2024 (continued)
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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 Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditor
In so far as the directors are aware:
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there is no relevant audit information of which the charitable company’s auditor is unaware; and
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the directors have taken all steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Small company provisions
This report has been prepared in accordance with the special provisions for small companies under part 15 of the Companies Act 2006.
Approval
Approved by the Board of Directors on and signed on its behalf by:
Leonie Schroder Director
5
SCHRODER CHARITY TRUST
Independent Auditor’s Report to the members of Schroder Charity Trust
Opinion
We have audited the financial statements of the Schroder Charity Trust (‘the charity’) for the year ended 31 March 2024, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements including 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 charitable company's affairs as at 31 March 2024 and of the charitable company’s 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; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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 charitable company’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 Report of the Trustees, other than the financial statements and our Auditor’s report thereon. Our opinion on the financial statements does not cover the 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees Report for which the financial statements are prepared is consistent with the financial statements.
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The Trustees’ Report has been prepared in accordance with applicable legal requirements.
6
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Report and from the requirements to prepare a Strategic Report.
Responsibilities of Trustees
As explained more fully in the Statement of Trustees’ Responsibilities, 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibility 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:
Non-compliance with laws and regulations
Based on:
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our understanding of the charitable company and the sector in which it operates;
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discussion with management and those charged with governance; and
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obtaining an understanding of the charitable company’s policies and procedures regarding compliance with laws and regulations;
We considered the significant laws and regulations to be the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities SORP (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK tax legislation.
The charitable company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the Health and Safety at Work etc Act 1974, the Data Protection Act 2018, Employment Rights Act 1996 and the Bribery Act 2010.
Our procedures in respect of the above included:
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Review of the financial statement disclosures and agreeing to supporting documentation;
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Review of minutes of meetings of those charged with governance for any instance of non-compliance with laws and regulations;
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Review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws and regulations; and
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Review of legal expenditure accounts to understand the nature of expenditure incurred.
7
Fraud
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
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Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;
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Obtaining an understanding of the charitable company’ policies and procedures relating to:
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Detecting and responding to the risks of fraud; and
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Internal controls established to mitigate risks related to fraud.
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Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud;
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Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
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Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud.
Based on our risk assessment, we considered the areas most susceptible to fraud to be journals and key estimates and judgements.
Our procedures in respect of the above included:
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Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;
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Assessing significant estimates and judgements made by management for bias, including the allocation of support costs;
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Testing the existence and accuracy of income recognised in the year.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of no detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s website at frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company’s members, as body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Tracey Moore BFP ACA (Senior Statutory Auditor)
For and on behalf of
UHY Hacker Young
Chartered Accountants and Statutory Auditors Thames House Roman Square Sittingbourne Kent ME10 4BJ
Date:
8
SCHRODER CHARITY TRUST
Statement of financial activities (incorporating an income and expenditure account) for the year ended 31 March 2024
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| Total | Total | ||||
| Notes | Restricted | Unrestricted | funds | funds | |
| £ | £ | £ | £ | ||
| Income from: | |||||
| Investments | 3 | - | 595,378 | 595,378 | 571,736 |
| Total | - | 595,378 | 595,378 | 571,736 |
|
| Expenditure on: | |||||
| Raising funds – investment manager fees | 4 | - | 2,326 | 2,326 | 2,319 |
| Charitable activities | 5 | - | 513,802 | 513,802 | 577,126 |
| Total | - | 516,128 | 516,128 | 579,445 |
|
| Net income/(expenditure) before | - | 79,250 | 79,250 | (7,709) | |
| losses on investments | |||||
| Net losses on investments | 7 | - | (1,596,212) | (1,596,212) | (1,693,551) |
| Net expenditure and movement | |||||
| in funds | 8 | - | (1,516,962) | (1,516,962) | (1,701,260) |
| Fund balances brought forward | - | 12,799,578 | 12,799,578 | 14,500,838 |
|
| Fund balances carried forward | - | 11,282,616 | 11,282,616 | 12,799,578 |
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above and therefore those stated above represent total comprehensive income.
The notes on page 12 to 19 form part of these financial statements.
9
SCHRODER CHARITY TRUST
Balance sheet as at 31 March 2024
| Notes Fixed assets Investments 9 Current assets Debtors 10 Cash at bank and in hand Creditors:amounts due within 1 year 11 Net current assets Net assets Financed by: Share capital 12 Funds Unrestricted funds Total funds 13 |
2024 £ 10,887,373 362,164 71,249 433,413 (38,164) 395,249 11,282,622 6 11,282,616 11,282,622 |
2023 £ 12,442,848 354,196 38,604 392,800 (36,064) 356,736 12,799,584 6 12,799,578 12,799,584 |
|---|---|---|
These financial statements have been prepared in accordance with the special provisions for small companies under part 15 of the Companies Act 2006.
Approved by the directors and authorised for issue on and signed on their behalf by:
Leonie Schroder
Director
Registered company number: 386771
The notes on page 12 to 19 form part of these financial statements.
10
SCHRODER CHARITY TRUST
Statement of cash flows for the year ended 31 March 2024
| Notes Cash flows from operating activities: Net cash used in operating activities (a) Cash flows from investing activities: Dividends, interest and rents from investments Proceeds from sale of investments Purchase of investments Change in investment cash Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period (b) Cash and cash equivalents at the end of the reporting period (b) (a) Reconciliation of net income to net cash flows from operating activities Net expenditure for the reporting period Adjustments for: Losses on investments Dividends and interest from investments Increase in debtors Increase/(decrease) in creditors Net cash used in operating activities (b) Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents (c) Analysis of changes in net debt: 1 April 2023 Cash flows £ £ Cash and cash equivalents 38,604 32,645 |
2024 £ (521,996) 553,964 22,851 - (22,174) 554,641 32,645 38,604 71,249 (1,516,962) 1,596,212 (595,378) (7,968) 2,100 (521,996) 71,249 71,249 Non-cash movement £ - |
2023 £ (574,888) 532,314 13,917 (13,225) 71,349 604,355 29,467 9,137 38,604 (1,701,260) 1,693,551 (571,736) (5,098) 9,655 (574,888) 38,604 38,604 31 March 2024 £ 71,249 |
|---|---|---|
The notes on page 12 to 19 form part of these financial statements.
11
SCHRODER CHARITY TRUST
Notes to the financial statements for the year ended 31 March 2024
1. General information
The Schroder Charity Trust is a charitable company registered in England and Wales (company number 386771 and charity number 214050), governed by its Memorandum of Association. The registered office is 81 Rivington Street, London, EC2A 3AY. The annual statements are prepared in sterling, being the functional currency of the entity, and have been rounded to the nearest pound.
2.
Principal accounting policies
- a) Basis of accounting and going concern
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of fixed asset investments, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2022) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and the Companies Act 2006.
The Trust constitutes a public benefit entity as defined by FRS 102.
The preparation of the financial statements requires the directors to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on the directors’ best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change.
The directors’ consider that there are no key sources of estimation uncertainty and that there are no material uncertainties over the Trust’s ability to continue as a going concern for the foreseeable future, being a period of at least 12 months from the date of signing the financial statements.
b) Income
Income is stated on a receivable basis.
Income received by way of donations and gift aid is included in full in the Statement of Financial Activities when receivable. Income receivable from Gift Aid claims is recognised when the claim had been submitted.
Investment income is credited gross to the Statement of Financial Activities on the date it becomes payable.
c) Expenditure
Expenditure is recognised in the period in which they are incurred. Expenditure includes attributable VAT which cannot be recovered.
Expenditure on raising funds includes investment manager fees which are calculated quarterly by Cazenove Capital (the investment manager) and included in investment manager fees on a payable basis.
Expenditure on charitable activities includes charitable grants, administration costs and governance costs.
Charitable grants are charged to the Statement of Financial Activities when approved by the directors and any conditions placed on the recipient have been met. Other expenditure is provided on an accruals basis.
12
SCHRODER CHARITY TRUST
Notes to the financial statements for the year ended 31 March 2024
2. Principal accounting policies continued
c) Expenditure (continued)
Administration costs consist of the day-to-day administration of the Trust’s affairs as carried out by staff employed by The Schroder Foundation. The costs are recharged to the Trust based on the levels of activity of the charity.
Governance costs charged in these financial statements include auditor’s remuneration and other compliance costs imposed by the requirements of charities legislation.
- d) Gains/losses on investment assets
All gains and losses are taken to the Statement of Financial Activities as they arise. Unrealised gains and losses on investment assets represent the difference between their fair value at the end of the year and their fair value at the beginning of the year, or transaction value if acquired during the year. Realised gains and losses on disposal of investment assets represent the difference between the sale proceeds and the fair value at the beginning of the year, or transaction value if acquired during the year.
e) Taxation
The Trust is a registered company and charity and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
- f) Financial instruments
The Trust only has 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.
- g) Investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using their closing quoted market price. Realised and unrealised gains and losses are shown in the statement of financial activities together as net gains on revaluation and disposals of investment assets. Investments held in the cash liquidity funds are classified within current assets.
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 the investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors of sub-sectors.
h) Debtors
Debtors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses.
- i) Cash at bank and in hand
Cash and cash equivalents consist of cash on hand and balances with banks, and investments in money market instruments which are readily convertible, being those with original maturities of three months or less.
- j) Creditors
Creditors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.
- k) Restricted funds
Any restricted funds would be used for the specific purposes laid down by the donor. Expenditure which meets their criteria is charged to the fund together with a fair allocation of management and support costs.
13
SCHRODER CHARITY TRUST
Notes to the financial statements for the year ended 31 March 2024
2. Principal accounting policies continued
l) Unrestricted funds Unrestricted funds are donations, investment income and other incoming resources receivable or generated for the objects of the charity. The general fund therefore comprises those monies which may be used towards meeting the charitable objectives of the Trust at the discretion of the directors.
3. Investment income
| Investment income Dividends Bank interest All income received in both 2024 and 2023 were in respect of unrestricted funds. Raising funds - costs Investment management costs |
2024 £ 584,832 10,546 595,378 2024 £ 2,326 |
2023 £ 569,386 2,350 571,736 |
|---|---|---|
| 2023 £ 2,319 |
4.
All costs incurred in both 2024 and 2023 were in respect of unrestricted funds.
5.
| Charitable activities Charitable grants (note 6) Administration Governance: - Audit Fees - Accountancy - Tax |
2024 £ 452,000 55,056 6,746 6,000 552 180 513,802 |
2023 £ 512,300 57,531 7,295 5,880 875 540 577,126 |
|---|---|---|
All costs incurred in both 2024 and 2023 were in respect of unrestricted funds.
14
SCHRODER CHARITY TRUST
Notes to the financial statements for the year ended 31 March 2024
| 6. Charitable grants Made to institutions: 2 Minute Foundation, The 999 Club and Lady Florence Trust, The Action Against Age-Related Macular Degeneration Afghanistan and Central Asian Association Age Concern Southend-on-Sea CIO Age UK Ampney Crucis Parochial Church Council Ampney Crucis Parish Hall Auditory Verbal Centre, The Baby Umbrella Ballet Black Basingstoke Neighbourcare Be Free Young Carers Beaver Trust Beyond The Streets Bluevale Community Club SCIO, The Breadwinners Foundation Bridge (East Midlands), The Bridges for Communities Bristol Avon Rivers Trust British Liver Trust Build on Belief Ltd Cardiac Risk in the Young Care for Carers Chelsea Old Church Trust, The Child Autism UK Children's Bereavement Centre Choices Islington Community Law Advice Network Compassionate Friends, The Counselling and Support for Young People Countryside Learning East and North Hertfordshire NHS Trust Charitable Fund Eating Matters Elizabeth Foundation, The Feast with Us First Give Fortalice Limited Foundation for Young Musicians, The Freedom Community Alliance Limited GASP Motor Project Girls Friendly Society in England and Wales Glasgow Barons, The Glasgow's Golden Generation Gloucestershire Society, The Grassroots Suicide Prevention Great Western Air Ambulance Charity Gynaecology Cancer Research Fund Hackney Migrant Centre HALOW (Birmingham) Handicapped Childrens Action Group Hear Me Out Music Heart of Argyll Wildlife Organisation Helen Arkell Dyslexia Charity Helen Bamber Foundation Hertfordshire Domestic Abuse Helpline Holly Lodge Centre Housing Justice Independent Provider of Special Education Advice Carried forward |
2024 £ 3,000 5,000 5,000 4,000 4,000 5,000 1,000 1,000 4,000 4,000 4,000 3,000 5,000 4,000 4,000 4,000 5,000 3,000 3,000 2,000 5,000 5,000 4,000 5,000 1,000 3,000 4,000 3,000 5,000 4,000 4,000 4,000 5,000 5,000 5,000 4,000 5,000 4,000 4,000 4,000 5,000 3,000 5,000 4,000 4,000 5,000 5,000 4,000 5,000 3,000 5,000 3,000 2,000 3,000 5,000 4,000 4,000 10,000 4,000 |
|---|---|
| 239,000 |
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SCHRODER CHARITY TRUST
Notes to the financial statements for the year ended 31 March 2024
| 6. Charitable grants (continued) Brought forward Insulate Ukraine International Tree Foundation Irise International Kirklees Theatre Trust Lakeland Sinfonia CIO Leukaemia Care London Basketball Association London Youth Choirs London Youth Opera Manchester Carers Forum Manta Trust, The Moor Trees Muslim Women's Network UK NAM Publications National Manuscripts Conservation Trust, The NewStarts North Glasgow Community Food Initiative Oxfordshire Sexual Abuse & Rape Crisis Centre Porch, The Prisoners Education Trust Reach Volunteering Read Easy UK Royal Chapel of All Saints Somerset and Avon Rape and Sexual Abuse Support Scotland Yard Adventure Centre Settled Sheffield Music Academy Sheffield Women's Counselling and Therapy Services Limited Shine Cancer Support Sick Children's Trust, The Spina Bifida, Hydrocephalus, Information, Networking, Equality – Shine St Andrew’s Church (Curry Rivel) St Jude's United Church, Englefield Green St. Martin-in-the-Fields Charity St Petrock’s (Exeter) Limited Stagetext Support Through Court Surviving Economic Abuse Teach2Teach International Team Up for Social Mobility Limited Time To Talk Befriending Tower Hamlets Mission Trekstock Limited UK Music Masters Ltd. Upper Room (St Saviour’s), The Vineyard Community Centre Wag and Company North East Friendship Dogs WeSeeHope Working Families Yorkshire Dales Rivers Trust Young Musicians Symphony Orchestra, The 2024 total 2023 total |
2024 £ 239,000 10,000 4,000 3,000 4,000 3,000 5,000 3,000 3,000 4,000 4,000 5,000 4,000 3,000 4,000 5,000 4,000 5,000 3,000 5,000 4,000 4,000 9,000 1,000 3,000 3,000 4,000 4,000 4,000 5,000 3,000 5,000 1,000 1,000 10,000 4,000 3,000 4,000 4,000 5,000 3,000 5,000 5,000 4,000 3,000 5,000 4,000 5,000 5,000 4,000 3,000 5,000 |
|---|---|
| 452,000 | |
| 512,300 |
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SCHRODER CHARITY TRUST
Notes to the financial statements for the year ended 31 March 2024
| 7. | Net investment gains/(losses) | 2024 | 2023 |
|---|---|---|---|
| £ | £ | ||
| Realised (losses) / gains | (7) | 1,518 | |
| Unrealised losses | (1,596,205) | (1,695,069) |
|
| (1,596,212) | (1,693,551) |
| 8. Net movement in funds Net movement in funds is stated after charging: Directors’ remuneration Auditor’s remuneration - as auditor - for tax advice |
2024 £ - 6,000 180 |
2023 £ - 5,880 540 |
|---|---|---|
The directors consider themselves and the company secretary as comprising the key management personnel of the Trust. There are 5 employees (the directors). The directors and company secretary received no remuneration or benefits in kind (2023: £Nil) and received no reimbursement of expenses (2023: £Nil).
There were no employees who received remuneration exceeding £60,000.
| 9. Investments Market value brought forward Additions at cost Disposals proceeds Net losses on disposals and revaluations Portfolio cash held by investment manager Market value carried forward Historic cost carried forward Investments comprise the following: Equities (listed) Private equity 10. Debtors Dividends receivable |
2024 £ 12,439,704 41,413 (22,851) (1,596,212) 10,862,054 25,319 10,887,373 13,193,162 2024 £ 10,840,682 21,373 10,862,055 2024 £ 362,164 |
2023 £ 14,094,525 52,647 (13,917) (1,693,551) 12,439,704 3,144 12,442,848 13,156,848 2023 £ 12,397,944 41,759 12,439,703 2023 £ 354,196 |
|---|---|---|
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SCHRODER CHARITY TRUST
Notes to the financial statements for the year ended 31 March 2024
| 11. | Creditors:amounts falling due within one year | 2024 | 2023 | ||||
|---|---|---|---|---|---|---|---|
| £ | £ | ||||||
| Accruals | |||||||
| 38,164 | 36,064 |
||||||
| 12. | Share capital | Allotted, | |||||
| called up | |||||||
| and fully | |||||||
| Authorised | paid | ||||||
| £ | £ | ||||||
| Ordinary shares of £1 each | 100 | 6 |
|||||
| The ordinary shareholders have no rights over the | funds of the Trust. | ||||||
| 13. | Analysis of net assets between funds - 2024 | Share | Restricted | Unrestricted | Total | ||
| capital | funds | funds | funds | ||||
| £ | £ | £ | £ | ||||
| Investments | - | - | 10,887,373 | 10,887,373 | |||
| Net current assets | 6 | - | 395,243 | 395,249 |
|||
| Net assets at the end of the year | 6 | - | 11,282,616 | 11,282,622 |
|||
| All funds held at 31 March 2024 were unrestricted | funds and all transactions | in | the year ended | 31 March 2024 | |||
| were within unrestricted funds. | |||||||
| Analysis of net assets between funds - 2023 | Share | Restricted | Unrestricted | Total | |||
| capital | funds | funds | funds | ||||
| £ | £ | £ | £ | ||||
| Investments | - | - | 12,442,848 | 12,442,848 | |||
| Net current assets | 6 | - | 356,730 | 356,736 |
|||
| Net assets at the end of the year | 6 | - | 12,799,578 | 12,799,584 |
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SCHRODER CHARITY TRUST
Notes to the financial statements for the year ended 31 March 2024
14. Related party transactions
Ms L K E Schroder and Mrs C L Fitzalan Howard are non-executive directors of Schroders plc, the ultimate parent company of Cazenove Capital, which acts as investment manager for the Charity, and Schroder & Co Ltd, which act as bankers for the charity.
Following a donation to the Schroder Charity Trust of 53,310 shares on 17 August 2023 from Vincitas Trust in Bermuda, at 31 March 2024 the charity holds 2,351,439 ordinary voting shares in Schroders plc with a value of £8,855,519 (2023: £10,571,393 total value of ordinary voting and non-voting shares) representing 81.3% (2023: 85.0%) of the total value of the Schroder Charity Trust investment portfolio.
Three of the directors, Mrs C B Mallinckrodt (until 15 June 2023), Mrs C L Fitzalan Howard and Ms L K E Schroder, are also trustees of The Schroder Foundation. During the year The Schroder Foundation made a charge to the charity of £45,916 (2023: £47,211) in respect of administration and accountancy services provided during the year and £13 regarding Companies House costs. An amount of £20,406 (2023: £28,290) is due to The Schroder Foundation at the year end.
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