Charity registration number 269697
Company registration number 00212824 (England and Wales)
INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
P E Brades S D Craddock P Huxley V Jackson D T Rolph A Stahl H B Donszelmann M Westwood S Hyman E Peake A Ryan C Huber
Secretary
Secretary M Watkins Charity number 269697 Company number 00212824 Registered office The Royal Academy of Arts Piccadilly London W1V 0DS Independent examiner Bright Grahame Murray Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG
INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Independent examiner's report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 - 13 |
INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees present their annual report and financial statements for the year ended 31 December 2023.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)
Objectives and activities
Objectives, activities and public benefit
The Trust was incorporated on 19 March 1926 to act as Governor and Manager of the Scholarships founded by Mrs Mary Gertrude Abbey in memory of her husband, the late Edwin Austin Abbey RA; and to award scholarships to successful applicants for the purpose of enabling holders of the scholarships to pursue their artistic studies, and particularly the study of mural decoration and its relation to architecture. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. The grants made by E.A. Abbey Scholarships enable artists to develop their own work and benefit from working in an academic environment and then bring those experiences back into their painting, teaching and exhibiting practices for the benefit of a large number of students of fine art and worldwide audiences.
The Company has been given licence to omit the word Limited by the Secretary for Trade and Industry. The registered office is the Royal Academy of Arts, Piccadilly, London W1V 0DS.
Achievements and performance
Grantmaking
In February, members of the Abbey Council met to view work submitted by 86 candidates for the Abbey Fellowships. The Abbey Scholarships were not open for applications, as Tura Oliveira, selected in 2019, had deferred her residency until 2023 and took it up as planned. Fellowship interviews were held at the Art Workers’ Guild in March.
Three Fellows were chosen, as follows:
The 2023 Fellowships were awarded to Michael Coppelov, Lynn Fulton and Rafal Zajko.
The 2023 Abbey Scholar was Tura Oliveira.
The Trustees chose to split the Jules de Goede fund equally among the fellows with payments of £300 each towards materials and travel within Italy.
NB Since September 2023 the BSR invoices in full rather than in 2 installments. In December 2023 Abbey was informed by the BSR that their costs have risen steeply (electricity etc). The BSR calculate that our residencies payments are falling short by €17,748 per annum.
Abbey agreed to make a one-off payment of 6000 Euros (made in January 2024) and to review our payment agreement in 2024.
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023
Financial review
The Trustees review annually the financial resources and endeavour to pursue the charity’s objectives without eroding the value of the capital endowment.
The incoming resources of the Trust in 2023 were £124,966 (2022: £119,241) and the expenditure was £94,054 (2022: £86,539), giving a surplus of £30,912 (2022: £32,702) before recognition of realised losses on investments of £10,439 (2022: nil) and unrealised gains on investments of £24,981 (2022: losses of £36,819).
Reserves policy
The Trustees have established the level of free reserves that the charity ought to have. Unrestricted funds are needed to:
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cover support and governance costs;
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provide funds which can be designated to support its charitable grants;
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achieve a liquid reserve to provide cover for unforeseen costs which may arise.
The Trustees consider it prudent that free reserves should be sufficient to cover the charitable grants payable and around 6 months' support and governance costs. The level of free reserves at the year end was around £159,000. The level of reserves is monitored and reviewed by the Trustees throughout the year.
The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.
Risk management
The principal risks faced by the Trust lie in the performance of investments held by the charity and the operational risk of grants payable to the British School in Rome being payable in Euro.
The investment risk is mitigated by retaining experienced investment managers and having a diversified
investment portfolio.
The charity also receives annual donations from a trust whose investments are linked to the US stock market. The charity is therefore exposed to fluctuations in the US stock market and to the strength of the US Dollar, as donations are received in that currency.
Structure, governance and management Governing document
The Trust is governed by its Memorandum and Articles of Association. The liability of its members is limited to £1 per member.
Details of trustees
The trustees, who are also the directors for the purpose of company law, and who served during the year are listed on the Legal and Administrative Information page to these accounts and below.
Each trustee holds one share of £1 each.
P E Brades S D Craddock P Huxley V Jackson D T Rolph A Stahl
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023
H B Donszelmann M Westwood S Hyman E Peake A Ryan C Huber
Recruitment and appointment of new trustees
Names of prospective new Council Members are put forward for consideration by Members of the Council and a discussion is held at a Meeting of the Council or if not all are present, by email. The name/s of the person or persons gaining the maximum number of supporters is/are proposed, seconded and voted on and, if the required number votes is achieved, is/are formally elected to the council.
Vanessa Jackson (Chair) stepped down in 2023 and Danny Rolph has served as Chair, since November 2023.
Management and governance arrangements
The Abbey Council met at the Art Workers Guild in July 2023 and at the Royal Academy of Arts in November 2023.
Induction and training of new trustees
Upon election by the Council, new trustees (Council Members) are provided with a copy of the Articles and Memorandum of the Company/Charity so that they are fully aware of the aims and objectives of the organisation. They are also made aware of the annual selection procedures and the the criteria applied in the selection of the beneficiaries of the Abbey Scholarship and the Abbey Fellowships.
Organisational structure
The Trust is known as Abbey Awards in its everyday public activities.
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023
Statement of Trustees' responsibilities
The trustees, who are also the directors of Incorporated Edwin Austin Abbey Memorial Scholarships Limited for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law 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 the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate 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 Companies Act 2006. 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' report was approved by the Board of Trustees.
M Watkins
Secretary
24 May 2024
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
I report to the trustees on my examination of the financial statements of Incorporated Edwin Austin Abbey Memorial Scholarships Limited (the charity) for the year ended 31 December 2023.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 financial statements to be reached.
Paul Davis FCA Independent Examiner Bright Grahame Murray Chartered Accountants
Emperor's Gate 114a Cromwell Road Kensington London SW7 4AG
Dated: 24 May 2024
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 2 | 107,366 | 106,161 |
| Investments | 3 | 17,600 | 13,080 |
| Total income | 124,966 | 119,241 | |
| Expenditure on: | |||
| Charitable activities | 4 | 94,054 | 86,539 |
| Realised loss on disposal of investment | 9 | 10,439 | - |
| Total expenditure | 104,493 | 86,539 | |
| Net gains/(losses) on investments | 10 | 24,981 | (36,819) |
| Net income/(expenditure) and movement in funds | 45,454 | (4,117) | |
| Reconciliation of funds: | |||
| Fund balances at 1 January 2023 | 497,505 | 501,622 | |
| Fund balances at 31 December 2023 | 542,959 | 497,505 |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
| Notes Fixed assets Investments 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Income funds Unrestricted funds General unrestricted funds Share capital |
2023 £ - 164,760 164,760 (2,549) 542,947 12 |
£ 380,748 162,211 542,959 542,959 542,959 |
2022 £ 279 211,205 211,484 (80,108) 497,493 12 |
£ 366,129 131,376 |
|---|---|---|---|---|
| 497,505 | ||||
| 497,505 | ||||
| 497,505 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 24 May 2024
P E Brades D T Rolph Trustee Trustee Company registration number 00212824
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
Company information
Incorporated Edwin Austin Abbey Memorial Scholarships Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Royal Academy of Arts, Piccadilly, London, W1V 0DS.
1.1 Accounting convention
The accounts have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
The trustees have prepared the financial statements on a going concern basis as they believe that the charity has a secure revenue stream which, combined with its cash reserves, will enable it to continue in operational existence for the foreseeable future.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Donations are recognised on receipt.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
1 Accounting policies
(Continued)
1.5 Resources expended
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All expenditure is accounted for on an accrual basis and has been listed under headings that aggregate all costs related to that activity. Where costs cannot be directly attributed to particular categories they have been allocated to activities on a basis consistent with the use of resources.
Grants payable are recognised once there is an obligation to make a payment, the payment is probable, and the payment can be measured reliably. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer equipment
20% on a straight line basis
1.7 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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 Financial instruments
The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
1.9 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable activities.
1.10 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
2 Income from donations and legacies
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Donations and gifts | 105,104 | 102,336 | |
| Application fees received | 2,262 | 3,825 | |
| 107,366 | 106,161 | ||
| 3 | Income from investments | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Income from listed investments | 13,961 | 12,315 | |
| Interest receivable | 3,639 | 765 | |
| 17,600 | 13,080 | ||
| 4 | Charitable activities | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Grant funding of activities (see note 5) | 76,454 | 69,711 | |
| Share of support costs (see note 6) | 15,110 | 14,428 | |
| Share of governance costs (see note 6) | 2,490 | 2,400 | |
| 94,054 | 86,539 | ||
| 5 | Grants payable | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Grants payable to British School at Rome | 76,454 | 69,711 |
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
6 Support costs
| Support costs Governance costs £ £ Staff costs 13,198 - Postage, printing, copying and stationery 29 - IT support 182 - Travelling expenses 389 - Sundry expenses 142 - Bank charges 145 - Interview costs 1,025 - Legal and professional - 2,490 Analysed to Charitable activities 15,110 2,490 |
2023 £ 13,198 29 182 389 142 145 1,025 2,490 17,600 |
2022 £ 11,998 246 442 467 37 162 1,076 2,400 |
|---|---|---|
| 16,828 |
Governance costs includes payments to the independent examiner of £2,490 (2022- £2,400) for the examination of the accounts.
7 Trustees
There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.
Travel expenses reimbursed to 4 (2022 : 3) trustees during the year amounted to £389 (2022 : £467).
8 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| Administrative | 1 | 1 |
| Employment costs | 2023 | 2022 |
| £ | £ | |
| Wages and salaries | 13,000 | 12,000 |
| Social security costs | - | (171) |
| Other pension costs | 198 | 169 |
| 13,198 | 11,998 |
There were no employees whose annual remuneration was more than £60,000.
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 9 | Loss on disposal of investment | ||
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Loss on disposal of investment | 10,439 | - | |
| 10 | Gains and losses on investments | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2023 | 2022 | ||
| Gains/(losses) arising on: | £ | £ | |
| Revaluation of investments | 24,981 | (36,819) | |
| 11 | Fixed asset investments | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Listed investments | 380,748 | 366,129 | |
| Listed investments comprise: | £ | £ | |
| Schroder UK Alpha Plus Fund A Income Fund Units | 37,745 | 51,753 | |
| SUTL Cazenove Charity Equity Value Fund A Income Units | 325,597 | 251,250 | |
| SUTL Cazenove Charity Bond Fund A Income Units | - | 63,126 | |
| Schroder UK Alpha Plus Fund Z Income GBP | 17,406 | - | |
| 380,748 | 366,129 |
The investments were impacted by reduced inflation which stabalised and improved asset prices. This has affected the valuation of the investments as at 31 December 2023 resulting in a gain on investment of £14,619.
The investment return on fund assets have increased by £1,646 to £13,961 (2022 : £12,315).
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INCORPORATED EDWIN AUSTIN ABBEY MEMORIAL SCHOLARSHIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023
| 12 | Debtors | ||
|---|---|---|---|
| 2023 | 2022 | ||
| Amounts falling due within one year: | £ | £ | |
| Other debtors | - | 97 | |
| Prepayments and accrued income | - | 182 | |
| - | 279 | ||
| 13 | Creditors: amounts falling due within one year | ||
| 2023 | 2022 | ||
| £ | £ | ||
| Other creditors | 59 | 42 | |
| Accruals and deferred income | 2,490 | 80,066 | |
| 2,549 | 80,108 | ||
| 14 | Retirement benefit schemes | ||
| 2023 | 2022 | ||
| Defined contribution schemes | £ | £ | |
| Charge to profit or loss in respect of defined contribution schemes | 198 | 169 | |
| The charity operates a defined contribution pension scheme for all qualifying employees. The | assets of the | ||
| scheme are held separately from those of the charity in an independently administered fund. | |||
| 15 | Share capital | 2023 | 2022 |
| £ | £ | ||
| Ordinary share capital | |||
| Issued and fully paid | |||
| 12 Ordinary shares of £1 each | 12 | 12 | |
| 16 | Related party transactions |
There were no disclosable related party transactions during the year (2022 - none).
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