## **ANNUAL REPORT AND ACCOUNTS**
## **2023**
## **THE BEIT TRUST**
## **THE BEIT TRUST**
**Charity Registration number:** 232478
## **Trustees, Committees and Office Holders**
**Chairman** Mr Alex Duncan MA MSc, Trustee June 2011, Chairman November 2023 Sir Alan Munro KCMG, Chairman 1994, retired November 2023
**Trustees**
Professor CBD Lavy OBE MD MCh FRCS, November 2007 Ms. LLM Bull MA, November 2016 Mr. James Munro, July 2020 Mrs. Alison Tweed, November 2022
**Secretary** Sir Andrew Pocock KCMG, November 2016
## **Representative in Africa**
Mr. DEB Long, January 2018
## **Finance Committee Members**
Mr. James Munro, 28 October 2020, Chairman November 2023 Mr. Alex Duncan MA MSc, October 2011, Chairman June 2021 Vacated FC Chair November 2023 Ms. LLM Bull MA, May 2018 Professor CBD Lavy OBE MD MCh FRCS, March 2024 Sir Andrew Pocock KCMG, November 2016 Mrs. FM Irwin BSc FCA, May 2018 Mr Thomas Seaman MA, MBA, October 2022
## **Addresses of The Beit Trust**
**In the UK** Beit House Grove Road Woking Surrey GU21 5JB **In Africa** 5 Ludlow Road Newlands Harare Zimbabwe **Statutory** Azets Audit Services Limited **Auditors** Ashcombe Court Woolsack Way Godalming Surrey GU7 1LQ **Investment** Cazenove Capital Management **Managers** 1 London Wall Place London EC2Y 5AU
## **TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023**
## **THE 117[th ] YEAR OF THE BElT TRUST**
Charity Registration Number 232478
## **PART 1 - FOUNDATION, GOVERNANCE & MANAGEMENT**
## **FOUNDATION**
The Trust was established in 1906 by the Will of Alfred Beit, a financier and philanthropist. He had many interests and left a substantial legacy to a wide range of charitable causes.
His Will specifically established the Beit Railway Fund, to promote regional communications via the development of the railway system in Southern Africa.
It also provided, should Trustees decide that the Fund was no longer needed for its primary purpose, that the income could be applied to “education, public or other charitable purposes”. This now forms the mandate for the modern operations of the Trust.
In 1954, the Trust was reconstituted by a British Act of Parliament. Under Section 3 of the Act, the Beit Trust became an incorporated body. With the advent of Federation in the same year, the country of Malawi was included as a beneficiary in the Trust’s "Specified Area," joining Zambia and Zimbabwe.
_Alfred Beit_
1
**GOVERNANCE**
## **Trustees**
The Beit Trust Act specifies six Trustees but is quorate with three. Vacancies are filled as they arise. Sir Alan Munro retired as Trustee and Chairman in November 2023, and was succeeded by Mr Alex Duncan (who relinquished his Chairmanship of the Finance Committee, to be succeeded there by Mr James Munro). The Board ended 2023 with five Trustees, therefore, pending the appointment of a sixth. Trustees must have a broad knowledge of Southern Africa, and the Board has expertise in the fields of international relations, commerce, medicine and education. Mr Seaman’s membership of the Finance Committee has added specialist investment expertise.
## **Trustees' Responsibilities Statement**
Trustees are responsible for preparing the Trustees’ Annual 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 year, which give a true and fair view of the state of affairs of the charity, of its incoming resources and the application of resources for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on a going concern basis, unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Acts 2011 and 2022 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.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Recruitment, Induction and Training of New Trustees**
The Secretary inducts new Trustees and helps with training if there is no previous experience of charity Trusteeship.
## **The Trust’s Objectives**
Alfred Beit set out the Trust’s objectives in his Will. These were re-affirmed in The Beit Trust Act 1954. The Trust’s benevolent mandate is exclusively for Zambia, Zimbabwe and Malawi.
2
It does not fundraise. The 1906 Beit bequest, and its prudential management for 117 years, remains the Trust’s sole funding source.
In 1946, the Trustees changed the focus from communications infrastructure to assistance in **education** (including now postgraduate scholarships, school buildings, teacher training, libraries, books and computers); **health** (including hospitals, clinics, medical equipment, support for regional trainee surgeons and in-country secondments for junior doctors); **welfare** (including care homes for the elderly); and **culture and conservation** (notably the conservation of endangered species and climate action). The Trust takes care to evaluate its priorities and ensure its ways of working remain effective in achieving its objectives. It does so, for Trust-funded projects, through regular spot-checks by Trustees, the Secretary, the Harare-based Representative and the Trust’s regional Correspondents; and, in the broader context, through consultations with a wide range of other well-informed interlocutors. An internal Strategic Review in September 2023 has helped confirm that the Trust is effectively fulfilling its mandate.
Individual project grants seldom exceed £50,000. The Trustees rarely make grants to other UK grant- making charities, but occasionally provide funds for crisis relief.
## **Public Benefit**
The Trustees confirm that in the exercise of their powers and duties they have complied with their responsibility to have due regard to Charity Commission guidance on public benefit (outlined under **The Trust’s Objectives** above, and throughout this report).
## **MANAGEMENT**
## **The Trust’s Organisation**
Trust Headquarters is Beit House in Woking, Surrey. The Representative in Africa works with his staff from an office in Harare. There are four salaried staff in the UK and three (two part time) in Zimbabwe. They receive a salary uplift of RPI (from 2024 CPI) per annum, plus a performance review every three years.
Trustees meet every six months to agree broad strategy on investments, reserves and risk management, and to consider grant applications. They are supported by a committee of regional Correspondents, three per beneficial country (four in Zambia). These are all volunteers and essential to the Trust’s cost-effective performance. The Correspondents Committee Meeting is held six weeks before Trustee Boards, to give expert regional advice on each grant application.
£1.6 million was made available in 2023 for new projects recommended in-country by the Correspondents. In addition, Trustees customarily allocate £1 million every year to long-term recurrent grants for academic and medical scholarships and bursaries, student hardship relief, library books, school computers and contingency support.
The Trust’s Finance Committee meets four weeks prior to the Trustee Boards. Cazenove Capital, the portfolio investment managers, attend and address finance and investment policy matters. In November, the Finance Committee submits to the Trustees, for their approval, a proposed budget of income and expenditure for the coming year.
3
## **Investment Policy**
The Trustees’ policy, through prudential investment and management, is to maintain and increase the Trust’s capital base in real terms, while using dividend earnings and capital growth to continue beneficial operations in perpetuity. The Trust’s diversified investments are managed by Cazenove Capital, monitored by the Trust’s Finance Committee. In 2023, Beit dividend income was £2.87m (£2.57m in 2022).
The Trust’s investment objective, set in 2011, has been dividend returns of RPI+4%. Performance has varied. Dividend returns in 2023 have been below this benchmark.
Trustees take a total return approach to the Beit portfolio. Excluding invested cash balances, the portfolio ended the 2023 calendar year at £120.6m (£115.4m in 2022). Total Trust expenditure in 2023 was £3.93m (£3.04m in 2022). The investment portfolio is diversified, to mitigate exposure to market volatility.
## **Grants Policy**
Applications for grants are considered on merit. Trustees seldom give grants to government organisations. Instead, they support independent institutions, in particular schools, hospitals and health centres. Trustees seek to maintain, as far as possible, an equitable distribution of grants between the three countries.
Strict rules are applied to infrastructure grants, to ensure that detailed and serviceable plans are submitted before a grant is paid. A proportion of the funding is routinely withheld until the Trust is sure that a project can be satisfactorily completed, to or below budget. Regular visits within the beneficial area by Correspondents, the Representative, Trustees and the Secretary allow an application to be judged before Trustees consider it; progress reviewed while under construction; and work assessed when finished. Trustees place particular emphasis on the sustainability of new projects in staffing and maintenance terms.
## **Reserve Policy**
The Trust does not run a specific Reserves Policy as, effectively, the whole investment portfolio would be available to act as a reserve for Trust activities.
The level of total reserves on 31 December 2023 was **£117.2m** , consisting of unrestricted general reserves of **£120.3m** , less the pension reserve of **£3.1m** . The Pension Fund represents the unfunded defined benefit pension scheme liability. The unrestricted reserves consist of a Capital Fund of **£118.5m** , which can be used in accordance with the Trust’s charitable objectives at the discretion of Trustees; and a Reserve Fund (consisting of unspent income from previous years) of **£1.8m** .
Trustees, having taken guidance from the Charity Commission, have stated that Beit Trust policy is to commit investments accumulated on a total return basis to benevolent and associated administrative expenditure. Since commitments take time to fulfil, at the end of any one year there is likely to be a carry-forward, which is included in the Reserve Fund. Trustees may decide to draw on this in future years, to smooth and manage benevolent cashflows. In addition, Trustees from time to time make donations for specific large projects or needs, which form a direct charge to the Reserve Fund.
## **Ethical and Socially Responsible Investment Policy**
Trustees abide by the restrictions against holding ordinary shares in mining stocks stipulated in Alfred Beit’s Will. They delegate to their investment managers, Cazenove Capital, the
4
responsibility for taking environmental, social and governance (ESG) issues into account when assessing the selection, retention and realisation of investments. They expect the fund manager to engage with companies on ESG issues; observe best practice; exercise voting rights accordingly; and monitor the implementation of this policy.
## **CHARITABLE VENTURES ASSOCIATED WITH THE BEIT TRUST IN 2023**
## **Beit Trust Postgraduate Scholarships**
During 2023, the Trust provided 21 new Scholarships at British and South African institutions, through generous academic partnerships with leading universities. Joint scholarships continued with Stellenbosch, Rhodes and UCT in South Africa; and with Cambridge, Edinburgh, Glasgow, Leeds, Oxford, St Andrews and Strathclyde Universities in the UK.
The Trust provided £80,000 in hardship support to financially constrained undergraduate and postgraduate students from the beneficial area. A total of 63 emergency Beit Bursaries were awarded by hardship committees at four South African universities.
## **COSECSA**
Since 2009, the Trust has helped the College of Surgeons of East, Central and Southern Africa (COSECSA). It has sponsored at least one aspiring surgeon per year, per country, throughout their five- year training. In 2023, 11 Beit-COSECSA scholarships were held by four surgeons each from Zimbabwe and Malawi and three from Zambia.
## **Beit Trust Black Rhino Conservation Project**
The only significant black rhino population in the beneficial countries is in Zimbabwe. It remains endangered by continued poaching and encroachment on reserves. In 2023, Trustees allocated a further £10,000 to the Lowveld Rhino Trust, and £30,000 a year for five years for a community outreach and education project connected with black rhino conservation.
**Book Aid International (BAI)** is a registered UK charity which supplies a broad range of books, educational materials and assistance to libraries in developing countries worldwide. The Trust gave BAI a grant of £75,000 for book provision to Zambia, Zimbabwe and Malawi.
**Biblionef (South Africa)** is a literary charity working out of Cape Town. It supplies book packs to schools in Southern Africa. The Trust provided support of up to £30,000.
## **PERFORMANCE**
## **Expenditure in 2023**
The Trustees approved grants totaling £2,792,835 (£2,219,184 in 2022). The table below is a summary of grants paid. Further details are in Part 3 (Note 5).
5
## **Support and Governance costs in 2023**
Salaries, national insurance, pensions, _ex-gratia_ payments and allowances to Trust staff and pensioners increased by 14.4% to £587,387 (£513,638 in 2022). Harare office expenses increased to £83,059 (£80,207 in 2022). Correspondents’ expenses increased to £55,133 (£49,554 in 2022). Woking office costs increased to £57,018 (£43,234 in 2022). This included the Auditor’s fee of £13,680, including VAT (£10,080 in 2022). Exchange losses incurred were £27,012 (£29,372 gain in 2022).
## **The Financial Statement**
|Income & expenditure for the year
Income
Expenditure
Grants approved
Less grants written back
Woking & Harare office costs, including
exchange rate differences
Investment Manager’s fees
Tours
Total expenditure
Total (deficit)|2,792,835
68,287|2023
£
3,018,821
2,861,122
754,476
282,281
34,813
3,932,692
(913,871)|2,219,184
(109,601)|2022
£
2,596,926
2,109,583
607,707
286,909
37,949
3,042,148
(445,222)|
|---|---|---|---|---|
The year-end value of the Beit portfolio, including cash balances after the expenditure outlined above, was £121,248,985 (£116,263,977 in 2022), showing a net increase of 4 %.
## **Pensions and Gratuities**
Trustees established a Defined Benefit arrangement in 2014 for new employees. Given the very small number of present and retired Beit servants, Trustees have not established a separate Pension Fund. The unfunded pension liability was calculated by actuaries, The Cartwright Group, as £3,072,829 at 31 December 2023.
The Trustees’ policy on accounting for this liability is set out in detail at Note 18 (Part 3, page 3.14).
6
## **Risk Assessment**
Trustees considered the major risks to which the charity could be exposed, and reviewed mitigation. They are not aware of any irregularities, including fraud, involving management or employees. Nor are they aware of any instances of actual or possible non-compliance with laws, regulations, contracts or agreements that might result in the Trust suffering significant penalties or other losses.
The Trust faces both financial and operational risk. The financial risk in maintaining and enhancing the capital value of its endowment is addressed through a professionally managed, diversified portfolio of high-quality assets across a wide variety of asset classes and markets. Performance and risk mitigation are reviewed twice a year by the Trust's Finance Committee.
The major operational risks are twofold: that Beit funding is not used effectively to achieve impact; and from political and financial fragility in the region. The Trust uses its Harare Representative, network of regional CotTespondents, and twice-annual tours by Trustees and Trust officials to monitor both; while contingency plans to respond to the latter are routinely reviewed.
## **Tours in 2023**
The retiring Chairman, Sir Alan Munro, made his final Trustee tour of the beneficial countries in March/ April 2023. Liseli Bull then toured in the autumn. Tours will continue in 2024.
## **CONCLUSION**
In 2023 the Beit Trust continued to deliver on its mandate and objectives: providing support to its beneficial countries; helping institutions remain viable which might otherwise founder; boosting human capital wherever possible; and as a catalyst to selfhelp and self-improvement. It remained committed, in the words of former Chairman Sir " Otto Beit, to underwriting work of "substantial and permanent importance.
Approved by Trustees on 27 June 2024 and signed on their behalf by:
## **Mr Alex Duncan MA MSc, Chairman of Trustees**
7
**Independent Auditor’s Report to the Trustees of The BEIT Trust**
## **Opinion**
We have audited the financial statements of The BEIT Trust (the ‘charity’) for the year ended 31 December 2023 which comprise Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2023, and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 1443 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charity and the industry, we identified that the principal risks of noncompliance with laws and regulations related to the carrying value of investments; the carrying value of the defined benefit pension scheme liability; the recognition of income; and the recognition of grant obligations and expenditure. We considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Charities Act 2011, FRS 102 and the Charity SORP. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase income or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of investments or the defined benefit pension scheme liability. Audit procedures performed included:
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations or of fraud.
- Evaluation of management’s internal controls designed to prevent and detect irregularities.
- Reading key correspondence with the Charity Commission in relation to compliance with laws and regulations.
- Reviewing relevant meeting minutes.
- Procedures relating to the valuation of investments and the defined benefit pension liability, including testing investment ownership and valuation to third party sources and obtaining and reviewing the pension scheme actuarial valuation and assessing the assumptions and estimates utilised therein.
- Identifying and testing journal entries and other significant transactions, in particular any that appeared unusual or outside the normal course of the charity’s activities. Evaluating the rationale for such journal entries or transactions.
- Assessing whether the judgements made in making accounting estimates were indicative of a potential bias.
- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement, whether due to fraud or otherwise.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members to enable them to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Azets Audit Services Limited Statutory Auditor
Ashcombe Court Woolsack Way Godalming Surrey GU7 1LQ
## Date: 27 June 2024
Azets Audit Services Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
3.1
## **ANNUAL REPORT**
## **THE BEIT TRUST**
## **PART 3 - FINANCIAL STATEMENTS**
**Statement of financial activities for the year ended 31 December 2023**
|5
6
**Reconciliation of funds**
Total funds brought forward
**Notes**
**Income and expenditure - Unrestricted funds**
3
**Total income**
4
7
**Total expenditure**
Net gains / (losses) on investments
**Net income / (expenditure)**
18
**Net movement in funds**
**Total funds carried forward**
19
**Income**
Investments
**Expenditure**
Raising funds
Charitable activities
Grants and donations
Support costs
Other
Governance costs
**Net (expenditure) before**
**investment gains / (losses)**
**Other recognised (losses) /gains**
Actuarial (losses) / gains on defined benefit
pension scheme|**Total funds**
**Total funds**
**2023**
**2022**
**£**
**£**
3,018,821
2,596,926|
|---|---|
||3,018,821
2,596,926|
||2,861,122
2,109,583
554,793
441,258
282,281
286,909|
||3,415,915
2,550,841
234,496
204,398|
||3,932,692
3,042,148|
||(913,871)
(445,222)
5,531,942
(9,131,810)|
||4,618,071
(9,577,032)
(31,405)
738,366|
||112,655,028
121,493,694
4,586,666
(8,838,666)|
||**117,241,694**
**112,655,028**|
The notes on pages 3.4 to 3.15 form part of these financial statements
3.2
## **THE BEIT TRUST**
## **Balance sheet at 31 December 2023**
|**Balance sheet at 31 December 2023**||
|---|---|
|**Notes**
**Fixed assets**
Tangible assets
13
Investments
14
**Current assets**
Debtors
15
Cash at bank and in hand
16
**Liabilities:**
Creditors falling due within one year
17
**Net current (liabilities) / assets**
**Total assets less current liabilities**
Unfunded defined benefit pension scheme liability
18
**Net assets**
**Funds**
Unrestricted funds
19
Pension reserve
19|**2023**
**2022**
**£**
**£**
173,240
156,200
120,564,216
115,391,547|
||120,737,456
115,547,747|
||512,501
317,314
433,458
819,839|
||945,959
1,137,153
1,368,892
988,448|
||(422,933)
148,705|
||120,314,523
115,696,452
3,072,829
3,041,424|
||**117,241,694**
**112,655,028**|
||120,314,523
115,696,452
(3,072,829)
(3,041,424)|
||**117,241,694**
**112,655,028**|
**Approved by the Board of Trustees on 27 June 2024 and signed on its behalf by:**
**Mr James Munro Chairman of the Finance Committee**
The notes on pages 3.4 to 3.15 form part of these financial statements
3.3
## **THE BEIT TRUST**
## **Cash flow statement for the year ended 31 December 2023**
|Net (expenditure) before
investment gains / (losses)
Depreciation charge
(Increase) / decrease in debtors
Increase in creditors
**Capital expenditure and financial**
**investment**
Proceeds from sale of investments
Payments to acquire tangible fixed assets
Purchase of investments
**Notes**
**Operating activities**
Net cash (outflow) from operating activities
Net cash flow movement from investing activities
**Management of liquid resources**
Net movement in funds on short term deposit
20
**(Decrease) / increase in cash**
20
Cash and cash equivalents at 31 December 2022
Cash and cash equivalents at 31 December 2023|(913,871)
(445,222)
8,631
8,392
(195,187)
182,587
380,444
139,707
**2023**
**2022**
**£**
**£**|
|---|---|
||(719,983)
(114,536)|
||39,355,926
20,280,084
(25,671)
(4,257)
(38,570,067)
(19,056,548)|
||760,188
1,219,279|
||(426,586)
(978,891)|
||(386,381)
125,852|
||819,839
693,987|
||433,458
819,839|
The notes on pages 3.4 to 3.15 form part of these financial statements
3.4
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
The Beit Trust is registered with the Charity Commissioners (No. 232478). The Registered Office is Beit House, Grove Road, Woking, Surrey, GU21 5JB, UK.
## **(1) Basis of preparation**
The financial statements have been prepared under the historical cost convention as modified by the inclusion of fixed asset investments at market value. The financial statements have been prepared 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The Trust constitutes a public benefit entity as defined by FRS 102.
The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.
## **(2) Principal accounting policies**
The principal accounting policies remain unchanged from the previous year. The net liability on the unfunded pension scheme has been included on the balance sheet in compliance with FRS 102.
## **(a) Investments**
Investments are included at closing mid-market value at the balance sheet date.
Gains and losses on disposal and revaluation of investments are taken to the Statement of Financial Activities.
## **(b) Investment income**
Investment income is accounted for in the year in which the Trust is entitled to receipt.
## **(c) Expenditure**
Liabilities are recognised as expendediture is incurred as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is included on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Raising funds comprises costs of managing the investment portfolio.
Grants payable are to third parties in furtherance of the Trust's charitable objectives. Provisions for grants are made in the year in which the grant is approved by the Trustees, and any over or under provision adjusted once the final amount of the grant has been paid.
3.5
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
## **(c) Expenditure (cont'd)**
Overheads are allocated between support costs within charitable activities and governance. Support costs comprise costs for processing grants and applications, including Harare office costs, trustees' tours and foreign currency translation differences. Governance costs comprise those incurred in meeting the Trust's constitutional and statutory obligations. The costs of the Woking office are apportioned between support and governance costs based upon staff time expended.
## **(d) Foreign currencies**
The financial statements are presented in Pounds Sterling, which is the functional currency. Transactions in foreign currencies are translated at the rate prevailing at the date of the transaction. Balances denominated in foreign currencies are retranslated at the rate of exchange prevailing at the balance sheet date. All differences are taken to the statement of financial activities.
## **(e) Tangible fixed assets and depreciation**
All assets costing more than £100 are capitalised.
Depreciation is charged so as to write off the cost of tangible fixed assets, other than freehold land for which the estimated cost is £52,000, on a straight line basis over the expected useful economic lives of the assets concerned. The annual rates generally applicable are:
|Freehold buildings|2%|
|---|---|
|Motor vehicles|25%|
|Computer equipment|33⅓%|
|Fixtures, fittings and equipment|10%|
The freehold building, Beit House, Woking, was valued on 13 May 2022 at £470,000, but is carried in the balance sheet at historical cost less depreciation. Trustees intend to have the property valued again in 2025.
## **(f) Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **(g) Pensions**
The Trust operates an unfunded defined benefit scheme for all staff. The net actuarial liability representing the net deficit on the scheme is included on the balance sheet in accordance with the requirements of FRS 102. Other pension costs are accounted for as they are paid to retired employees.
3.6
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
## **(h) Fund accounting**
The following funds held by the Trust are all unrestricted:
Capital fund - this fund can be used in accordance with the charitable objectives at the discretion of the Trustees.
Reserve fund - this fund is set aside by the Trustees out of general funds to smooth and manage cash-flows or to make donations for specific large projects. Net expenditure is transferred into this fund.
Pension fund - this fund represents the unfunded defined benefit pension scheme liability.
## **(i) Key judgements**
The trustees consider the only key judgements to be the pension assumptions (described in Note 18).
|Dividends and bond interest
Cash deposits
Other bank current and deposit accounts
**(3) Income from investments**
**(4) Raising funds**
Investment Managers' fees|2,872,655
2,568,049
107,314
22,757
38,852
6,120
**2023**
**2022**
**£**
**£**|
|---|---|
||3,018,821
2,596,926|
||**2023**
**2022**
**£**
**£**
282,281
286,909|
3.7
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
## **(5) Grants and donations**
Grants and donations paid, written back, voted and unspent in 2023.
|**Unrestricted funds**
General grants, scholarships
and bursaries
One off projects
Zimbabwe
Malawi
Zambia|Unspent
Grants
Unspent
New
Unspent
grants
paid
grants
grants
grants
brought
in the
written
voted
carried
forward
year
back
in 2023
forward
**£**
**£**
**£**
**£**
**£**
-
1,048,889
(75,208)
984,635
10,954
-
285,000
-
285,000
-
292,889
455,554
6,921
635,200
465,614
241,300
291,000
-
269,700
220,000
306,100
424,300
-
618,300
500,100|
|---|---|
||840,289
2,504,743
(68,287)
2,792,835
1,196,668|
£2,861,122 charged in the statement of financial activities is derived from new grants voted in 2023 less unspent grants written back.
Unspent grants written back is a negative figure this year as more scholarships than voted were awarded to support particularly outstanding applications.
|Harare office
Woking office
Overseas tours
Difference on exchange
10
12
11
**(6) Support costs**
**Notes**
**(7) Governance costs**
Woking office
12|**2023**
**2022**
**£**
**£**
307,806
283,115
185,162
149,566
34,813
37,949
27,012
(29,372)|
|---|---|
||554,793
441,258|
||**2023**
**2022**
**£**
**£**
234,496
204,398|
3.8
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
## **(8) Analysis of support and governance costs**
|Support costs
Governance costs|371,015
177,393
6,385
554,793
441,258
216,372
15,878
2,246
234,496
204,398
**Staff**
**Other**
**Depreciation**
**Total**
**Total**
**costs**
**costs**
**2023**
**2022**
**£**
**£**
**£**
**£**
**£**|
|---|---|
||587,387
193,271
8,631
789,289
645,656|
|Wages and salaries
National insurance
Zimbabwe National insurance
Zimbabwe Medical Aid Society costs
Pensions
Ex gratia payments in lieu of pensions
**(9) Employee costs**|306,551
274,638
18,636
15,120
1,423
1,388
32,405
26,427
160,764
134,865
67,608
61,200
**2023**
**2022**
**£**
**£**|
|---|---|
||587,387
513,638|
Ex gratia payments made to certain retired employees are reviewed annually.
The Trust Secretary, Sir Andrew Pocock, earned in excess of £60,000 per annum both in 2023 and 2022. He is a member of the Trust pension scheme.
The Trust's key management personnel received remuneration totalling £158,373 (2022, £139,491).
The five Trustees have not received any remuneration from the Trust, but are reimbursed for their travelling and other expenses incurred on Trust business as disclosed in notes 11 and 12.
The total number of employees in 2022, by location, was: Harare - 2 Woking - 4 (2022, Harare - 2; Woking - 4).
3.9
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
|Salaries
Zimbabwe National Insurance
Zimbabwe Medical Aid Society costs
Pensions
Ex gratia payments in lieu of pensions
Property (rent, light, heat and maintenance)
Office administration
Representative's local travel and motor expenses
Correspondents' and Scholarship Board expenses
Legal & professional
Audit and accountancy
Bank charges
Depreciation
**(10) Harare office expenses**
**(11) Overseas tours**
Trustees' visits to Zimbabwe, Malawi and Zambia
Representative's visits
Secretary's visits|98,891
99,988
1,423
1,388
32,405
26,427
56,316
42,777
35,712
32,328
11,930
12,833
3,615
4,735
6,470
5,058
55,133
49,554
143
3,252
1,177
1,033
2,311
2,006
2,280
1,736
**2023**
**2022**
**£**
**£**|
|---|---|
||307,806
283,115|
||**2023**
**2022**
**£**
**£**
22,767
10,779
12,046
10,650
-
16,520|
||34,813
37,949|
Two Trustees made separate visits to the beneficial countries in 2023. The Representative made a number of visits within the Trust's countries to ensure that the Trust funds were being expended for the purpose originally requested, as well as accompanying the Trustees on tour.
3.10
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
|Salaries
National Insurance
Pensions
Ex gratia payments in lieu of pensions
Property (rent, rates, light, heat and maintenance)
Office administration
Secretary and Scholarship support expenses
Secretary's travel and motor expenses
Trustees' travel and meeting expenses
Audit fees
Legal and professional
Bank charges
Depreciation
**(12) Woking office expenses**
Allocated as:
Support costs
Governance costs|207,660
174,650
18,636
15,120
104,448
92,088
31,896
28,872
8,389
8,862
13,736
10,059
6,647
685
388
312
4,398
2,225
13,680
10,080
3,336
4,236
93
119
6,351
6,656
**2023**
**2022**
**£**
**£**|
|---|---|
||419,658
353,964|
||185,162
149,566
234,496
204,398|
||419,658
353,964|
3.11
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
**(13) Tangible assets**
|At 01 January 2023
Additions
Disposals
At 01 January 2023
Charge for year
Disposals
**Cost**
At 31 December 2023
**Accumulated depreciation**
At 31 December 2023
**Net book values**
At 31 December 2023
At 31 December 2022|237,572
54,725
11,732
31,753
335,782
17,171
-
-
8,500
25,671
-
-
-
(2,745)
(2,745)
**Freehold**
**Fixtures**
**land &**
**Motor**
**Computer**
**fittings &**
**buildings**
**vehicles**
**equipment**
**equipment**
**Total**
**£**
**£**
**£**
**£**
**£**|
|---|---|
||254,743
54,725
11,732
37,508
358,708|
||92,056
54,725
7,755
25,046
179,582
4,055
-
2,557
2,019
8,631
-
-
-
(2,745)
(2,745)|
||96,111
54,725
10,312
24,320
185,468|
||158,632
-
1,420
13,188
173,240|
||145,516
-
3,977
6,707
156,200|
3.12
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
|**(14) Investments**
**Listed investments**
Market value at 1 January 2023
Additions
Disposals
Increase in uninvested cash
Net Unrealised investment gain / (losses)
Market value at 31 December 2023
Cost at 31 December 2023|**2023**
**2022**
**£**
**£**
115,391,547
124,768,002
38,570,067
19,056,548
(38,963,103) (20,527,580)
426,586
978,891
5,139,119
(8,884,314)|
|---|---|
||120,564,216
115,391,547|
||104,199,806
104,969,363|
No single investment comprises more than 5% of the Trust's investments apart from the following funds:
Fidelity Global Dividend Fund (6.1%) Schroder Global Sustainable Growth (8.5%) HSBC FTSE All-World Index Fund (10.8%) Vanguard S&P 500 UCITS ETF (15.0%)
|UK equities and unit trusts
Overseas equities and unit trusts
UK fixed interest
Alternative investments
Property unit trusts
Cash on deposit
The investments as at 31 December were divided as follows:|4,738,942
18,868,101
80,876,454
60,632,758
5,588,840
4,923,036
15,881,118
16,874,654
10,195,708
11,236,429
3,283,154
2,856,569
**2023**
**2022**
**£**
**£**|
|---|---|
||120,564,216
115,391,547|
3.13
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
|Schroder Investment Management Limited
Accruals
Unspent grants carried forward
Other creditors
**(15) Debtors**
Prepayments and accrued income
**(16) Cash at bank and in hand**
*
Including £3,046 (2022 - £7,532) in foreign currencies.
**(17) Liabilities: creditors falling due within one year**
**United Kingdom:**
Current accounts
Deposit accounts
In hand
**Zimbabwe, Malawi and Zambia:**
Current accounts *
In hand *|**2023**
**2022**
**£**
**£**
512,501
317,314|
|---|---|
||512,501
317,314|
||**2023**
**2022**
**£**
**£**
103,370
130,398
326,868
681,641
174
268
321
2,108
2,725
5,424|
||433,458
819,839|
||70,842
70,603
91,729
69,539
1,196,668
840,289
9,653
8,017
**2023**
**2022**
**£**
**£**|
||1,368,892
988,448|
3.14
## **THE BEIT TRUST**
**Notes to the financial statements for the year ended 31 December 2023**
## **(18) Unfunded defined benefit pension scheme liability**
Unfunded defined benefit pension scheme liability
|**2023**|**2022**|
|---|---|
|**£**|**£**|
|3,072,829|3,041,424|
The Trust operates a defined benefit pension scheme. This is an unfunded arrangement where benefits are paid out of the Trust's portfolio when due. An actuarial valuation was undertaken as at 31 December 2022 establishing a liability of £3,072,829.
Other key assumptions that have been used in the calculations are:
||**2023**|**2022**|
|---|---|---|
|Rate of increase in salaries - current trustee directives|3.15%|3.45%|
|Rate of increase in deferred pensions - current trustee directives|3.15%|3.45%|
|Rate of increase in ex gratia payments - current trustee directives|2.65%|2.85%|
|Discount rate - current AA-rated UK Government Bond yield|4.50%|4.75%|
|Inflation assumption - current published information|3.15%|3.45%|
Changes in the present value of the plan liabilities are as follows:
|Present value of plan liabilities at 1 January 2023
Current service cost
Benefits paid
Interest on plan liabilities
Actuarial losses / (gains)
Present value of plan liabilities at 31 December 2023
The scheme is unfunded and holds no assets.
Actuarial losses / (gains) on defined benefit
pension scheme|**2023**
**2022**
**£**
**£**
**£**
**£**
52,265
3,041,424
105,569
3,779,790
(228,372)
(196,064)
140,285
70,956
67,227
(718,827)
31,405
(738,366)
3,072,829
3,041,424|**2023**
**2022**
**£**
**£**
**£**
**£**
52,265
3,041,424
105,569
3,779,790
(228,372)
(196,064)
140,285
70,956
67,227
(718,827)
31,405
(738,366)
3,072,829
3,041,424|
|---|---|---|
||||
|||3,041,424|
||||
3.15
## **THE BEIT TRUST**
## **Notes to the financial statements for the year ended 31 December 2023**
## **(19) Movements on unrestricted funds during the year**
|Net (expenditure) before
investment gains / (losses)
Actuarial (losses ) / gains on defined
benefit pension scheme
Transfer to reserve fund
from capital fund
Total funds brought forward
Net gains / (losses) on investments
Total funds carried forward|(913,871)
-
-
(913,871)
(445,222)
-
-
(31,405)
(31,405)
738,366
913,871
(913,871)
-
-
-
**Capital**
**Reserve**
**Pension**
**Total funds**
**Total funds**
**fund**
**fund**
**Reserve**
**2023**
**2022**
**£**
**£**
**£**
**£**
**£**
112,979,670
2,716,782 (3,041,424) 112,655,028 121,493,694
5,531,942
-
-
5,531,942
(9,131,810)|
|---|---|
||118,511,612
1,802,911 (3,072,829) 117,241,694
112,655,028|
The Reserve Fund is a fund of unspent income from previous years which may be used in future years, to smooth and manage cash-flows or to make donations for specific large projects. Net expenditure is transferred into this fund.
|**(20) Analysis of changes in net funds**
Cash at bank and in hand
Cash on deposit awaiting investment|**Net funds**
**Net funds**
**at 1.1.23**
**Cash flows**
**at 31.12.23**
**£**
**£**
**£**
819,839
(386,381)
433,458
2,856,570
426,586
3,283,156|
|---|---|
||3,676,409
40,205
3,716,614|