THE ERIC GREGORY TRUST FUND
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE
YEAR ENDED 31 DECEMBER 2022
CHARITY No. 261451
THE ERIC GREGORY TRUST FUND
Charity Information
| Trustees | The Management Committee of |
|---|---|
| The Society of Authors | |
| Charity Number | 261451 |
| Charity Offices | c/o The Society of Authors |
| 24 Bedford Row | |
| London WC1R 4EH | |
| Independent Examiner | Simon Goodridge FCA |
| Knox Cropper LLP | |
| Chartered Accountants | |
| 65 Leadenhall Street | |
| London EC3A 2AD | |
| Bankers | HSBC |
| The Peak | |
| 333 Vauxhall Bridge Road | |
| Victoria | |
| London SW1V 1EJ | |
| Investment Managers | abrdn |
| 280 Bishopsgate | |
| London EC2M 4AG |
THE ERIC GREGORY TRUST FUND
Contents
| Pages | |
|---|---|
| Trustees' Report | 1 - 2 |
| Independent Examiner’s Report | 3 |
| Statement of Financial Activities | 4 |
| Balance Sheet | 5 |
| Notes to the Financial Statements | 6 - 8 |
REPORT OF THE TRUSTEES OF
THE ERIC GREGORY TRUST FUND
YEAR ENDED 31 DECEMBER 2022
The Trustees present their report and financial statements for the year ended 31st December 2022. The Trustees have adopted the provisions of the 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) (second edition effective 1 January 2019).
Trustees
The Management Committee of the Society of Authors is the permanent Trustee of the charity (the “Trustees”) and has acted throughout the year.
Investment powers and Risk Management
The Trust Deed authorises the Trustees to make and hold investments using the Capital Funds of the charity. These are shown in detail in the notes to the financial statements. The principal area of risk concerns the management of the investments, the income from which provides the main source of funds from which the awards are paid. The investments are therefore kept under constant review by the investment managers.
Constitution, objects and policies
This Charity was constituted under the Will of the late Eric Gregory for the benefit and encouragement of young poets. Candidates for an award are restricted to British subjects under the age of 30 at the time of the award who submit for the consideration of a panel of judges a literary work in volume form in the English language of which he or she is sole author. Literary work is defined for this purpose as a work of belles lettres, poetry or a dramatic work. The policy of the Eric Gregory Fund continues to be to make awards in accordance with the Trust Deed out of the income generated by the investments.
Public Benefit
In reviewing the charity’s aims and objectives and in planning future activities, the Trustees refer to the Charity Commission’s general guidance on public benefit.
Reserves Policy
The Trustees policy is to operate on the basis of being able to continue to generate sufficient incoming resources to use toward meeting their charitable objectives and to accord with their principal terms. The Trustees are of the opinion that the funds remain sufficient to enable them to continue this ongoing objective. The charity has sufficient but not excessive funds to service its objective of making future charitable distributions.
Financial Review
The results for the year ended 31[st] December 2022 are attached and show a Net decrease in funds of £38,504 (2021: £40,749 decrease) before adding the realised loss on sale of investments of £4,194 (2021: £5,781 gain) and the unrealised decrease in market value of investments amounting to £135,902 (2021: £77,701 increase). Charitable awards totalling £28,350 (2021: £28,350) were paid to seven poets (2021: seven) and other expenditure amounted to £40,867 (2021: £37,962). The investments appear in the Balance Sheet at their market value of £855,939 (2021: £1,039,035). The Accumulated Fund carried forward at the year-end stands at £879,553 (2021: £1,058,153) and the Trustees consider that the charity has sufficient income and capital to meet its obligations in the foreseeable future.
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REPORT OF THE TRUSTEES OF
THE ERIC GREGORY TRUST FUND
YEAR ENDED 31 DECEMBER 2022
Statement of Trustees' Responsibilities
The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.
The law applicable to charities in England and Wales, the Charities Act 2011, 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 and of its incoming resources and application of resources for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and the principles of the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The Trustees are responsible for keeping proper accounting records which 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 the board of Trustees on 18 May 2023 and signed on their behalf by:
Joanne Harris – Chair of the Management Committee, The Society of Authors
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THE ERIC GREGORY TRUST FUND
YEAR ENDED 31[st] DECEMBER 2022
Independent Examiner’s Report to the Trustees of The Eric Gregory Trust Fund
I report to the trustees on my examination of the accounts of The Eric Gregory Trust Fund for the year ended 31[st] December 2022.
Responsibilities and basis of report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act).
I report in respect of my examination of the Trust’s accounts as required under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent Examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which give me cause to believe that in any material aspect:
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a) accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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b) the accounts do not accord with those records; or
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c) 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 the 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.
Simon Goodridge FCA Knox Cropper LLP Chartered Accountants 65 Leadenhall Street EC3A 2AD
Date: 14 July 2023
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THE ERIC GREGORY TRUST FUND
STATEMENT OF FINANCIAL ACTIVITIES
YEAR ENDED 31[st] DECEMBER 2022
| ------------------Unrestricted | Funds------------------ | ||
|---|---|---|---|
| 2022 | 2021 | ||
| Notes | £ | £ | |
| Income | |||
| Investment Income – Dividends | 2 | 30,680 | 25,563 |
| - Bank Interest | 33 | - | |
| Total | 30,713 | 25,563 | |
| Expenditure | |||
| Raising funds: | |||
| Investment Management Fees | 4,637 | 5,207 | |
| Charitable activities | 3 | 64,580 | 61,105 |
| Total | 69,217 | 66,312 | |
| Net income/(expenditure) before | |||
| Investment gains/(losses) | (38,504) | (40,749) | |
| Net gains/(losses) on investments | 6 | (140,096) | 83,482 |
| Net income/(expenditure) | (178,600) | 42,733 | |
| Reconciliation of funds: | |||
| Total funds brought forward | 1,058,153 | 1,015,420 | |
| Total funds carried forward | £879,553 | £1,058,153 |
The notes form part of these Financial Statements
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THE ERIC GREGORY TRUST FUND
BALANCE SHEET
31[st] DECEMBER 2022
| Notes FIXED ASSETS Quoted Investments – at Market Value 4 CURRENT ASSETS Cash held by Investment Managers Cash at bank CURRENT LIABILITIES Amounts due within one year 7 Net Current Assets TOTAL NET ASSETS Represented by: ACCUMULATED FUND Total Unrestricted Funds TOTAL UNRESTRICTED FUNDS |
2022 £ £ 855,939 25,699 733 26,432 (2,818) 23,614 £879,553 879,553 £879,553 |
2021 £ £ 1,039,035 18,841 3,224 22,065 (2,947) 19,118 £1,058,153 1,058,153 £1,058,153 |
2021 £ £ 1,039,035 18,841 3,224 22,065 (2,947) 19,118 £1,058,153 1,058,153 £1,058,153 |
|---|---|---|---|
| £1,058,153 | |||
| 1,058,153 | |||
| £1,058,153 |
Approved by the Trustees on 18 May 2023 signed on their behalf by
Joanne Harris – Chair of the Management Committee, The Society of Authors
The notes form part of these Financial Statements
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THE ERIC GREGORY TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[st] DECEMBER 2022
1. ACCOUNTING POLICIES
- a) These financial statements have been prepared in accordance with the Financial Reporting Standard 102 and the Charities SORP (FRS102 second edition) and in compliance with the Charities Act 2011.
The charity is a public benefit entity under FRS102.
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b) The income from investments and bank interest received represent the actual income receivable in the year including any income tax credits or income tax deducted for the year.
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c) Awards paid include all amounts payable in the year in accordance with the terms of the Trust Deed.
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d) Other expenditure is included on the basis of amounts payable for the year.
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e) The quoted investments are included in the Financial Statements at market value to comply with the Statement of Recommended Practice.
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f) 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 for a period of at least twelve months from the date of approval of these financial statements.
The Trustees have concluded that there is a reasonable expectation 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.
2. INVESTMENT INCOME
| VESTMENT INCOME | ||
|---|---|---|
| NON GOVERNMENT BOND FUNDS ASC (Offshore) Global Fixed Interest Fund Z Income ASC (Offshore) Sterling Fixed Interest Fund Z Income MULTI ASSET CHARITY INVESTMENT FUNDS BNY Mellon Funds ASC Income Fund Z TOTAL |
Gross Income 2022 £ 4,460 2,642 - 23,578 £30,680 |
Gross Income 2021 £ 4,224 2,751 3,547 15,041 |
| £25,563 |
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THE ERIC GREGORY TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[st] DECEMBER 2022
| 3. CHARITABLE ACTIVITIES 2022 £ DIRECT Awards paid 28,350 INDIRECT Judges’ fees 6,000 Administration costs 23,400 Awards expenses 2,400 Poetry Residencies 2,060 Other costs 660 GOVERNANCE Independent Examination Fee 1,710 £64,580 4. INVESTMENTS Cost £ NON GOVERNMENT BOND FUNDS ASC (Offshore) Global Fixed Interest Fund Z Income 93,302 ASC (Offshore) Sterling Fixed Interest Fund Z Income 84,848 178,150 MULTI ASSET CHARITY INVESTMENT FUNDS ASC Income Fund Z 721,980 Totals at – 31stDecember 2022 £900,130 31stDecember 2021 £942,506 5. MOVEMENTS ON COST OF INVESTMENTS 2022 £ £ Cost at 1 January 2022 942,506 Additions ASC Income Fund Z - - Disposals BNY Mellon Funds - ASC Income Fund Z (42,376) (42,376) Cost at 31 December 2022 £900,130 |
2022 £ 28,350 6,000 23,400 2,400 2,060 660 1,710 |
2021 £ 28,350 5,500 22,536 1,200 - 1,899 1,620 £61,105 Market Value £ 74,332 72,696 147,028 708,911 £855,939 £1,039,035 2021 £ £ 608,275 794,518 794,518 (430,124) (30,163) (460,287) £942,506 |
2021 £ 28,350 5,500 22,536 1,200 - 1,899 1,620 £61,105 Market Value £ 74,332 72,696 147,028 708,911 £855,939 £1,039,035 2021 £ £ 608,275 794,518 794,518 (430,124) (30,163) (460,287) £942,506 |
|
|---|---|---|---|---|
| £64,580 | ||||
| Cost £ 93,302 84,848 |
||||
| 178,150 721,980 |
||||
| £900,130 | ||||
| £942,506 | ||||
| £942,506 |
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THE ERIC GREGORY TRUST FUND
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31[st] DECEMBER 2022
6. MOVEMENT IN MARKET VALUES OF INVESTMENTS
| Market Value at the beginning of the year Additions Disposal proceeds Investment gains/(losses) Market value at the year end Realised gains Unrealised gains/(losses) 7. CREDITORS AND ACCRUALS Investment Managers’ Fees Professional Fees |
2022 1,039,035 - (43,000) (140,096) (183,096) £855,939 (4,194) (135,902) £(140,096) 2022 £ 1,108 1,710 £2,818 |
2022 1,039,035 - (43,000) (140,096) (183,096) £855,939 (4,194) (135,902) £(140,096) 2022 £ 1,108 1,710 £2,818 |
2022 1,039,035 - (43,000) (140,096) (183,096) £855,939 (4,194) (135,902) £(140,096) 2022 £ 1,108 1,710 £2,818 |
2021 £ £ 1,001,216 794,518 (840,181) 83,482 37,819 £1,039,035 5,781 77,701 £83,482 2021 £ 1,327 1,620 £2,947 |
£ 1,001,216 37,819 |
|---|---|---|---|---|---|
| £1,039,035 | |||||
| 5,781 77,701 |
|||||
| £83,482 | |||||
| £2,818 |
8. RELATED PARTY DISCLOSURES
The Society of Authors, which is the corporate Trustee of the charity, carried out management services for the charity and charged a management fee for the year amounting to £23,400 (2021: £22,536). There were no other related party transactions in the year.
9. REVIEW OF FUNDS
During the year the Trustees reviewed the charity’s investment policy. The review identified that the charity has a permanent endowment, however for at least the last 10 years the Trustees have informally followed a total return basis to allow capital returns to fund some of the charity’s annual expenditure. Following legal advice, the Trustees passed a resolution on 26 May 2022 in accordance with s282 Charities Act 2011 that the objects of the Trust to which the fund is subject could be carried out more effectively if the capital of the Fund could be expended as well as income accruing to it, rather than just income. This resolution has been sent to the Charity Commission.
The Trustees have also reported to the Charity Commission on the historical position and are waiting to hear back with their response.
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