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2023-03-31-accounts

Charity number: 228547

ST. NICHOLAS' EDUCATIONAL TRUST

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

ST. NICHOLAS' EDUCATIONAL TRUST

CONTENTS
Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 - 19

ST. NICHOLAS' EDUCATIONAL TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2023

Trustees Mrs B. Payne, Chair
Mrs M.D. Martin, Vice Chair
Mr R.L. Jobling, Treasurer
Mr W. Armstrong MBE (deceased 19 March 2023)
Mr T. Braun
Mrs A. Burton
Mr D Hilley
Mr B. Peacock
Mrs A. Scott
Ms A. Tate
Mr J. Waugh MBE
Mr G Reid (appointed 19 October 2022)
Charity registered
number
228547
Principal office
c/o Judith Oliver
2 Saville Gardens
The Grove
Gosforth
NE3 1NG
Accountants
Ryecroft Glenton
Chartered Accountants
32 Portland Terrace
Newcastle upon Tyne
NE2 1QP
Bankers
Lloyds Bank plc
PO Box 1SL
Newcastle upon Tyne
NE99 1SL
Investment Advisors
Charles Stanley and Company Limited
55 Bishopsgate
London
EC2N 3AS
Investment Advisors
Rathbones Investment Management
28 St Andrew Square
Edinburgh
EH2 1AF

Page 1

ST. NICHOLAS' EDUCATIONAL TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report together with the financial statements of the Charity for the year 1 April 2022 to 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and the relevant version of the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and activities

Policies and objectives

Under the Scheme dated 13 March 2007 the objects of the charity were amended to promote the education of young persons who are:

The trustees have decided that the charity will make grants to individuals who fall within the criteria, or to fund schemes to benefit groups of such individuals, as a means of achieving the objectives of the trust.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Grant-making policies

The Trustees invite applications from schools in the city of Newcastle upon Tyne, and from previous beneficiaries, and publicise the existence of the grants on their website www.stnicholaseducationaltrust.co.uk. Grant applications will need to comply with the above criteria and the trustees will need to be advised and satisfied as to how the grants will be spent and the educational benefit be obtained. Applications are considered by the trustees on a quarterly basis.

Main activities undertaken to further the Charity's purposes for the public benefit

The main activity undertaken to further the charity's purpose has been to promote the education of young persons who are need of financial assistance.

Achievements and performance

Review of activities

Grants were made to sixteen individuals and seven educational establishments during the year, totalling £67,201 with investment income of £128,227 being received in the year, giving rise to a surplus of incoming resources of £21,006 after investment management fees and support costs. Losses on investments during the year amount to £332,242 (£14,546 realised and £317,696 unrealised). The net movement in funds is a deficit of £311,236 resulting in closing funds of £3,756,154.

Page 2

ST. NICHOLAS' EDUCATIONAL TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Achievements and performance (continued)

Investment policy and performance

The Trustees have agreed a policy for investing funds, enabling them to maintain a strategic reserve of funds while providing funding for the future activities of the trust and have given investment managers discretion to manage the portfolio within an agreed risk profile.

The Trust is invested to produce the best financial return within an agreed level of risk.

The investment objective is to balance income and capital returns. The assets should be managed to at least maintain the real capital value of The trust portfolio, whilst generating a sustainable level of investment income to support the current charitable activities.

The current income target is set at £130,000 per annum.

The Trust's assets can be invested widely according to the general power of investment and should be diversified by asset class, and by security. Asset classes could include cash, bonds, equities, property, commodities and any other assets that are deemed suitable for The Trust.

Financial review

Going concern

After making appropriate enquiries, and taking into consideration the valuation surpluses on investments held at 31 March 2023, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

The Trustees have considered going concern in the context of the coronavirus pandemic and global stock market instability. The operational aspects of the Trust do not change.

The Trustees will adjust grants paid out of the Trust in accordance with any impact on the income arising from a reduction in dividends arising from the Trust's investments.

Reserves policy

The Trustees' intention is to award grants equal to the net incoming unrestricted resources in the previous year although this is not a minimum or maximum which is binding upon them. Current reserves of unrestricted funds will limit the ability of the trustees to provide additional grants beyond the expected incoming resources. The Trustees are permitted to treat the endowment funds on a total return basis.

Page 3

ST. NICHOLAS' EDUCATIONAL TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management

Constitution

The Trust was founded on 2 July 1847, as the Newcastle upon Tyne Ragged Boys School which was constituted in a Conveyance dated 3 May 1854. The School was reconstituted on 15 January 1952 by the Minister of Education under the Charitable Trusts Act 1853 to 1925, to be known as Axwell Park School Foundation.

On 13 March 2007 the name of the Trust was changed from Axwell Park School Foundation to St Nicholas' Educational Trust under the terms of a Scheme registered with the Charity Commission on that date.

Methods of appointment or election of Trustees

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Scheme.

Financial risk management

The Trustees have assessed the major risks to which the charity is exposed and continue to monitor the arrangements and systems in place to mitigate those risks. These are mostly related to the ability of the trustees to grant funds out of income from invested funds (which are the permanent endowment of the charity). The Scheme of 13 March 2007 allows grants to be paid from unrestricted funds first and then expendable endowment. The trustees are therefore dependent upon their investment advisers whose performance is continuously monitored.

Page 4

ST. NICHOLAS' EDUCATIONAL TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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 (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity'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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Mrs B. Payne

Date: 26 August 2023

Page 5

ST. NICHOLAS' EDUCATIONAL TRUST

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2023

Independent Examiner's Report to the Trustees of St. Nicholas' Educational Trust ('the Charity')

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2023.

Responsibilities and Basis of Report

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

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner's Statement

Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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

  1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. 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.

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.

Dated: 26 August 2023

D Graham FCA

Ryecroft Glenton 32 Portland Terrace Newcastle upon Tyne NE2 1QP

Page 6

ST. NICHOLAS' EDUCATIONAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Note
Income and endowments from:
Investments
3
Total income and endowments
Expenditure on:
Raising funds
4
Charitable activities
6
Total expenditure
Net income/(expenditure) before net
(losses)/gains on investments
Net (losses)/gains on investments
9
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Endowment
funds
2023
£
-
-
-
-
-
-
(332,242)
(332,242)
3,958,944
(332,242)
3,626,702		 Unrestricted
funds
2023
£
128,227
128,227
31,695
75,526
107,221
21,006
-
21,006
108,446
21,006
129,452		 Total
funds
2023
£
128,227
128,227
31,695
75,526
107,221
21,006
(332,242)
(311,236)
4,067,390
(311,236)
3,756,154		 Total
funds
2022
£
142,180
142,180
30,245
137,564
167,809
(25,629)
220,812
195,183
3,872,207
195,183
4,067,390

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 9 to 19 form part of these financial statements.

Page 7

ST. NICHOLAS' EDUCATIONAL TRUST

BALANCE SHEET AS AT 31 MARCH 2023

Note
Fixed assets
Investments
9
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
Net current assets
Total net assets
Charity funds
Endowment funds
13
Unrestricted funds
13
Total funds		 21,410
147,944
169,354
(3,180)		 2023
£
3,589,980
3,589,980
166,174
3,756,154
3,626,702
129,452
3,756,154		 26,189
92,795
118,984
(3,461)		 2022
£
3,951,867
3,951,867
115,523
4,067,390
3,958,944
108,446
4,067,390

The financial statements were approved and authorised for issue by the Trustees on 26 August 2023 and signed on their behalf by:

Mrs B. Payne

The notes on pages 9 to 19 form part of these financial statements.

Page 8

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. General information

St. Nicholas' Educational Trust is a charitable trust, charity number 228547. The registered office is 29 Willow Way, Ponteland, Newcastle upon Tyne NE20 9RF.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

St. Nicholas' Educational Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

Having made due enquiry the Trustees are satisfied that the going concern basis of accounting is appropriate in the preparation of these financial statements.

The affects of the coronavirus pandemic and global stock market instability may impact the income receivable in future years but the Trustees would adjust grants payable accordingly.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

Page 9

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2. Accounting policies (continued)

2.4 Expenditure (continued)

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘gains/(losses) on investments’ in the Statement of Financial Activities.

2.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.9 Liabilities

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.10 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Expendable endowment funds represent the original endowment of the charity.

Investment income, gains and losses are allocated to the appropriate fund.

Page 10

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

3. Investment income

Unrestricted
funds
2023
£
Investment income
127,934
Interest receivable
293
Total 2023
128,227
Unrestricted
funds
2022
£
Investment income
142,224
Interest receivable
(44)
Total 2022
142,180		 Total
funds
2023
£
127,934
293
128,227
Total
funds
2022
£
142,224
(44)
142,180

Page 11

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

4. Investment management costs

Unrestricted Total
funds funds
2023 2023
£ £
Investment management fees 31,695 31,695

Investment management costs for 2023 are £15,919 (2022: £16,033) for Charles Stanley and Company Limited and £15,776 (2022: £14,212) for Rathbone Investment Management.

Unrestricted Total
funds funds
2022 2022
£ £
Investment management fees 30,245 30,245

5. Analysis of grants

Grants made in the furtherance of the education of young
people
Grants made in the furtherance of the education of young
people		 Grants to
Institutions
2023
£
41,260
Grants to
Institutions
2022
£
104,300		 Grants to
Individuals
2023
£
25,941
Grants to
Individuals
2022
£
25,600		 Total
funds
2023
£
67,201
Total
funds
2022
£
129,900

Grants to individuals in 2023 were paid or committed to 16 individuals. Grants to individuals in 2022 were paid or committed to 14 individuals.

Page 12

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

5. Analysis of grants (continued)

The Charity has made the following material grants to institutions during the year:

Name of institution
Newburn Sea Cadets
Newcastle University
Newcastle University J Turner Prize
Northumbria University
Sage Gateshead
Wingrove School
YMCA Newcastle
Into University
NE Youth Ltd
Seven Stories
Studio West School
Success 4 All
Sunderland University
SVP Holy Island Children's Camp
US Charity		 2023
£
1,000
15,000
2,500
7,500
10,000
4,260
1,000
-
-
-
-
-
-
-
-
41,260		 2022
£
-
16,000
-
10,000
-
-
-
25,300
15,000
13,000
5,000
5,000
5,000
5,000
5,000
104,300

Page 13

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. Analysis of expenditure by activities

Direct costs - Grant making activities
Direct costs - Grant making activities		 Grant
funding of
activities
2023
£
67,201
Grant
funding of
activities
2022
£
129,900		 Support
costs
2023
£
8,325
Support
costs
2022
£
7,664		 Total
funds
2023
£
75,526
Total
funds
2022
£
137,564

Page 14

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. Analysis of expenditure by activities (continued)

Analysis of support costs

Preparation and independent examination - governance
Correspondent's fee
Meeting costs
Insurance
Sundry expenses
Preparation and independent examination - governance
Correspondent's fee
Trustees expenses reimbursed
Computer costs
Meeting costs
Insurance
Sundry expenses
7.
Independent examiner's remuneration
Fees payable to the Charity's independent examiner for the preparation and
independent examination of the Charity's annual accounts		 Activities
2023
£
3,180
3,384
1,086
435
240
8,325
Activities
2022
£
2,898
3,225
50
367
640
435
49
7,664
2023
£
3,180		 Total
funds
2023
£
3,180
3,384
1,086
435
240
8,325
Total
funds
2022
£
2,898
3,225
50
367
640
435
49
7,664
2022
£
2,898

Page 15

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the year, expenses totalling £ nil were reimbursed or paid directly to Trustees for stationery (2022 - £50 to 1 Trustee).

9. Fixed asset investments

Cost or valuation
At 1 April 2022
Additions
Disposals
Revaluations
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
10.
Cash at bank and in hand
Cash at bank and in hand is made up of:
Lloyds Bank current account
Virgin Money deposit account		 Listed
investments
£
3,830,619
212,854
(236,983)
(332,242)
3,474,248
3,474,248
3,830,619		 Cash held
for re-
investment
£
121,248
239,326
(244,842)
-
115,733
115,733
121,248
2023
£
86,887
61,057
147,944		 Total
£
3,951,867
452,180
(481,825)
(332,242)
3,589,981
3,589,981
3,951,867
2022
£
32,018
60,777
92,795

Page 16

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11. Debtors

Due within one year
Prepayments and accrued income		 2023
£
21,410
21,410		 2022
£
26,189
26,189

12. Creditors: Amounts falling due within one year

Grants payable
Accruals		 2023
£
-
3,180
3,180		 2022
£
563
2,898
3,461

Page 17

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13. Statement of funds

Statement of funds - current year

Balance at
Balance at 1 Gains/ 31 March
April 2022 Income Expenditure (Losses) 2023
£ £ £ £ £
Unrestricted funds
General Funds 108,446 128,227 (107,221) - 129,452
Endowment funds
Endowment Funds 3,958,944 - - (332,242) 3,626,702
Total of funds 4,067,390 128,227 (107,221) (332,242) 3,756,154
Statement of funds - prior year
Balance at
Balance at Gains/ 31 March
1 April 2021 Income Expenditure (Losses) 2022
£ £ £ £ £
Unrestricted funds
General Funds 134,075 142,180 (167,809) - 108,446
Endowment funds
Endowment Funds 3,738,132 - - 220,812 3,958,944
Total of funds 3,872,207 142,180 (167,809) 220,812 4,067,390

Page 18

ST. NICHOLAS' EDUCATIONAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

14. Analysis of net assets between funds

Analysis of net assets between funds - current year

Fixed asset investments
Current assets
Creditors due within one year
Total		 Endowment
funds
2023
Unrestricted
funds
2023
£
£
3,589,980
-
36,722
132,632
-
(3,180)
3,626,702
129,452		 Total
funds
2023
£
3,589,980
169,354
(3,180)
3,756,154

Analysis of net assets between funds - prior year

Fixed asset investments
Current assets
Creditors due within one year
Total		 Endowment
funds
2022
£
3,951,867
7,077
-
3,958,944		 Unrestricted
funds
2022
£
-
111,907
(3,461)
108,446		 Total
funds
2022
£
3,951,867
118,984
(3,461)
4,067,390

15. Related party transactions

The Charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Charity at 31 March 2023.

Page 19