SIR EDWARD MARSHALL HALL TRUST FOR NEEDY MEMBERS OF THE INNER TEMPLE
Charity Registration No. 254906
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
5TH APRIL 2023
Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple Legal and Administrative Details
| Trustees | Jonathan Waite KC (Chairman) |
|---|---|
| All Trustees are also members | Timothy Charlton KC |
| of the Committee. | Andrew Caldecott KC |
| Sarah Martin | |
| Annabel Gough | |
| The Committee | |
| All defined as Trustees by virtue | Heather Oliver |
| of the Charities Act 2011. | Hanif Mussa KC |
| Secretary | Richard Loveridge |
| Charity Registration Number | 254906 |
| Principal Office | Treasury Office |
| Inner Temple | |
| London | |
| EC4Y 7HL | |
| Investment Managers | Schroder & Co. Limited |
| 1 London Wall Place | |
| London | |
| EC2Y 5AU | |
| Auditors | Moore Kingston Smith LLP |
| 9 Appold Street | |
| London | |
| EC2A 2AP | |
| Bankers | Unity Trust Bank PLC |
| Four Brindleyplace | |
| Birmingham | |
| B1 2JB |
Page: 1
Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple Trustees' Report for the year ended 5th April 2023
The Trustees have pleasure in presenting their Report and the Financial Statements for the year ended 5th April 2023. The Financial Statements comply with current statutory requirements, the Trust Deed and the 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, issued in July 2014, and updated in 2019.
Objects of the Charity
The Marshall Hall Trust was originally set up under the Will of Sir Edward Marshall Hall to help needy members of The Inner Temple. With Social Security payments now available for the elderly this has allowed the Trust to widen its scope to give assistance to some students and pupils, who through no fault of their own, e.g. loss of a parent or financial support being withdrawn, would not otherwise be able to complete the Law Conversion course, or more usually the Bar Training Course, or their pupillage. The Trust also liaises with the Inn, interviews those who have made applications to the Inn for Pupillage Awards, and makes grants to those whose financial circumstances justify it.
The Trust can only help an applicant who is a member of The Inner Temple. Dependants of an Inner Templar are not directly eligible for assistance.
The object of the Trust is to give assistance by way of loan or grant to members of The Inner Temple who are in need. The Trustees are also concerned to see that the investments are carefully managed, and that the income is fully used for the benefit of applicants. However, claims made on the funds vary from year to year, and it is never known in advance how great they will be in any year. In addition to giving direct assistance to those who have applied to it the Trust may contribute to payments made by the Barristers' Benevolent Association for the benefit of members of The Inner Temple. The Trust's contribution varies from one half in the normal case to a smaller fraction where large sums are involved.
Public Benefit
Through achieving the above objects the Trustees confirm that they comply with their duty to have regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.
Achievements and performance
The Trustees met four times during the year to consider the Trust’s financial position, to monitor applications to the Trust, and to review ongoing grants or loans. Individual Trustees worked with the secretary to monitor ongoing applications, including interviewing all applicants and making recommendations as to what financial assistance the Trust should provide. In all 3 (three) new beneficiaries were given assistance in the form of a loan.
In addition, and pursuant to its now established practice, following interviews conducted by some of its members, the Committee approved the making of 5 (Five) Marshall Hall Trust Pupillage awards to those applicants who it was felt deserved extra financial help during their period of pupillage.
Investment Powers
The Trustees have the power to invest in any stocks, shares or securities which are permitted by law for trust funds.
Investment Policy
The Trustees' investment policy is to invest in a spread of investments which will provide a reasonable income return while maintaining the real value of the Trust assets. Trust monies are principally invested in a common investment fund managed by Schroders, as appears in note 4 to the accounts. The Trustees consider that the present balance between UK equities, overseas equities, fixed interest stock and cash is appropriate to the requirements of the Trust.
Page: 2
Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple Trustees' Report for the year ended 5th April 2023 (continued)
Reserves
All the assets of the Trust are expendable for its charitable purposes without distinction between capital and income. The Trustees' aim is that, taking one year with another, the payments out should approximate to the income of the Trust, and that the capital growth (if any) should be retained within the Trust, although, depending on the number (and the needs) of those who are successful in applying for assistance from the Trust and the overall investment performance, this aim is not necessarily achievable every year. However, no specific income reserve is appropriate. At the year end the Trust had reserves of £986,690 (2022: £1,056,185).
Policy on Grants
The Trustees' policy is to make payments out to members of The Inner Temple who, by reason of age or ill health, are in need of support. As is mentioned above, the Trustees also consider applications for assistance from students, pupils and young barristers who, by reason of an emergency or an unforeseen change of circumstances, would not otherwise be able to complete their education or pupillage or remain in practice. In addition there is scope for making grants to the Inn’s scholarship applicants whose financial circumstances are such that it is appropriate to provide them with further assistance. The resources of the Trust are such that, save in unusual circumstances, the Trust is unable to support students, pupils or young barristers who have made insufficient financial provision to enable them to complete their education or pupillage or to remain in practice.
Appointment of Trustees
The statutory power of appointing new or additional Trustees (Trustee Act 1925 s.36) applies. No person is nominated by the Will of Sir Edward Marshall Hall for the purpose of appointing new Trustees. When vacancies occur on the Board, new Trustees are recruited through recommendation and invitation, having shown previous commitment to charitable work. Newly appointed Trustees are sent briefing information about the Trust and their role as Trustee.
New Trustees
New Trustees, who are Charity Trustees within the definition contained in s.177 of the Charities Act 2011 but who are not Trustees in the normal sense of the word, are elected by the Committee from time to time among members of The Inner Temple (whether Benchers or members of Hall) as required.
Page: 3
Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple Trustees' Report for the year ended 5th April 2023 (continued)
Statement of the Trustees' Responsibilities
The trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
comply with applicable accounting standards, including FRS 102, subject to any material departures
-
• disclosed and explained in the financial statements;
-
make judgments and estimates that are reasonable and prudent;
-
state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any material departures which are explained in the financial statements
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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 Act 2011. 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 the Board of Trustees on 02 February 2024 and signed on its behalf:
Trustee
Jonathan Waite KC (Chairman)
Page: 4
Independent Auditors' Report to the Trustees of The Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple
Opinion
We have audited the financial statements of The Sir Edward Marshall Hall Trust for Needy Members of the Inner Temple ("the charity") for the year ended 5 April 2023 which comprise the Statement of Financial Activities, the Balance Sheet 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 FRS 102 "The Financial Reporting Standard Applicable in the UK and Ireland" (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 5 April 2023, and of its incoming resources and application of resources, 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 auditors' 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 charity’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 other information comprises the information included in the annual report, other than the financial statements and our auditors' report thereon. The trustees are responsible for the other information. 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.
Page: 5
Independent Auditors' Report to the Trustees of The Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
-
the information given in the trustees’ annual report is inconsistent in any material respect with the financial statements; or
-
the charity has not kept adequate accounting records; or
-
• the financial statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we required for our audit.
Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out on page 4, 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 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.
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditors under section 144 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 auditors' 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
-
identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error; design and perform audit procedures responsive to those risks; and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control.
-
evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
-
conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the charity to cease to continue as a going concern.
-
evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Page: 6
Independent Auditors' Report to the Trustees of The Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.
Our approach was as follows:
-
We obtained an understanding of the legal and regulatory requirements applicable to the charity and considered that the most significant is the Charities Act 2011 and UK financial reporting standards.
-
We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance.
-
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
-
We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
-
Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. 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 any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.
Moore Kingston Smith LLP Statutory Auditors
Date: 5 February 2024
9 Appold Street London EC2A 2AP
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
Page: 7
Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple Statement of Financial Activities for the year ended 5th April 2023
| Note Income & Endowments Investment income: Dividends received Bank interest Total Operating Income Expenditure Raising funds Investment management fees Bank charges Charitable activities 2 Total Operating Expenditure Net Operating (Expenditure)/Income before Investment Gains/(Losses) Net Gains/(Losses) on revaluation of Investments 3 Net Income/(Expenditure) and Net Movement in Funds Balance Brought Forward at 6th April Balance Carried Forward at 5th April |
Unrestricted Funds 2023 2022 £ £ 39,833 38,895 413 2 40,246 38,897 2,911 3,212 72 41 30,584 49,609 33,567 52,861 6,679 (13,964) (76,174) 30,801 (69,495) 16,837 1,056,185 1,039,348 986,690 1,056,185 |
Unrestricted Funds 2023 2022 £ £ 39,833 38,895 413 2 40,246 38,897 2,911 3,212 72 41 30,584 49,609 33,567 52,861 6,679 (13,964) (76,174) 30,801 (69,495) 16,837 1,056,185 1,039,348 986,690 1,056,185 |
|---|---|---|
| 38,897 | ||
| 3,212 41 49,609 |
||
| 52,861 | ||
| (13,964) 30,801 |
||
| 16,837 1,039,348 |
||
| 1,056,185 |
Page: 8
Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple Balance Sheet at 5th April 2023
| Note Fixed Assets Investments 4 Current Assets Programme related investments – loans to beneficiaries Trade Debtors Cash at bank and in hand 5 Creditors: Amounts falling due within one year Accruals Net Current Assets Net Assets Represented by: Reserves General Fund |
2023 61,162 36,764 97,926 (8,604) |
2023 £ 897,368 89,322 986,690 986,690 |
2022 53,577 6,784 32,980 93,341 (10,698) |
2022 £ 973,542 82,643 |
|---|---|---|---|---|
| 1,056,185 | ||||
| 1,056,185 |
These financial statements have been prepared in accordance with the Charities Act 2011 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)
The notes on pages 10 to 12 form part of the financial statements.
02 February 2024 The accounts were approved and authorised for issue by the board on …………………………….. and signed on their behalf:
……………………………………………
Jonathan Waite KC (Chairman) Trustee
Page: 9
Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple Notes to the Financial Statements for the year ended 5th April 2023
1 Accounting Policies
Basis of preparation
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value through income and expenditure within the Statement of Financial Activities.
The accounts (financial statements) have been prepared 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) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
The accounts (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 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) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The financial statements are preparing in Sterling which is the functional currency of the Charity. Amounts presented are rounded to the nearest pound.
The charity is a public benefit entity for the purposes of FRS 102.
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern including the impact of the coronavirus. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and have taken account of pressures on investment income. After making enquiries the trustees have concluded that there are no material uncertainties that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
Interest and Dividend Income
Interest and dividends are included as income in the year in which they are received and are shown inclusive of the tax credit.
Incoming Resources
All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.
Resources Expended
Liabilities are 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. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Charity. Unconditional grant offers are accrued once the recipient has been notified of the grant award and its payment is probable. Grant awards that are subject to the recipient fulfilling performance or other conditions are accrued when the recipient has been notified of the grant and either the performance condition is met or any remaining unfulfilled condition attaching to the grant is outside of the control of the Charity.
Page: 10
Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple Notes to the Financial Statements for the year ended 5th April 2023 (continued)
1 Accounting Policies (continued)
Investments
Investments are included at market value as at the balance sheet date. Any gains or losses on revaluation are taken to the Statement of Financial Activities.
Funds
All funds are unrestricted, which are available for use at the discretion of the trustees in furtherance of the general objectives of the trust.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
Financial instruments
Basic financial instruments are measured at amortised cost other than investments which are measured at fair value.
Critical accounting estimates and areas of judgement
In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements.
In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
2 Charitable activities
| 2 Charitable activities |
||
|---|---|---|
| 2023 £ 8,125 6,300 8,604 1,272 - 5,346 937 30,584 |
2022 £ 26,800 6,131 6,324 - - 9,441 913 |
|
| Grants Support costs: Secretarial expenses Audit fee - Current year Audit fee - Prior year Other fees to auditors Write off of debtor balances Insurance costs |
||
| 49,609 |
Trustees are deemed to be key management personnel. The charity has no employees. No remuneration was paid to the Trustees and no expenses were reimbursed in the current or preceding year.
3 Statement of Investment Gains and Losses
| Unrealised movement in market value during the year | 2023 £ (76,174) (76,174) |
2022 £ 30,801 |
|---|---|---|
| 30,801 |
Page: 11
Sir Edward Marshall Hall Trust for Needy Members of The Inner Temple Notes to the Financial Statements for the year ended 5th April 2023 (continued)
4(a) Investment Summary
| 4(a) Investment Summary The movement in the market value of investments is as follows: As at the start of the year Additions at cost Sales proceeds from disposals Movement in market value As at the end of the year Historic cost as at 5th April 4(b) Classification of Assets Schroder Charity Multi-Asset Fund 5 Cash at bank and in hand Current and deposit accounts Investment management account |
2023 £ 973,542 - - (76,174) 897,368 834,731 2023 £ 897,368 897,368 2023 £ 12,002 24,762 36,764 |
2022 £ 942,741 - - 30,801 |
|---|---|---|
| 973,542 | ||
| 834,731 | ||
| 2022 £ 973,542 |
||
| 973,542 | ||
| 2022 £ 15,553 17,427 |
||
| 32,980 |
6 Control and related party transactions
The Honourable Society of the Inner Temple (The Inner Temple) control the Trust by virtue of their power to appoint trustees. During the year the Trust paid Pupillage Awards to Inner Temple members of £8,125 (2022: £26,800). The Inner Temple pay the secretarial expenses and reinvoice the cost to the charity, with the total paid in this and the prior year as disclosed in note 2.
Page: 12