The Great Britain-China Educational Trust
Trustees’ Report
and Unaudited Financial Statements
for the year ended 31 March 2021
Registered Charity Number 269944
THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 INDEX
| Page | |
|---|---|
| Charity information | 1 |
| Trustees’ report | 2 |
| Independent examiner’s report | 4 |
| Statement of financial activities | 5 |
| Statement of financial position | 6 |
| Accounting policies | 7 |
| Notes to the financial statements | 9 |
THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
CHARITY INFORMATION
Trustees
Dr Frances Wood (Chairman) Professor James Croll – resigned 11[th] September 2020 Mr John Moffett Dr Mark Wilks Professor Harriet Evans
Principal office
15 Belgrave Square London SW1X 8PS
Registered charity number
269944
Independent Examiner
Geoffrey Frost BSc (Hons) FCA Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY
Bankers
Royal Bank of Scotland plc
Page 1
THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
TRUSTEES’ REPORT
The Trustees present their report and the unaudited financial statements of the charity for the year ended 31 March 2021. The T rustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS102) in preparing the annual report and financial statements of the charity.
STRUCTURE GOVERNANCE AND MANAGEMENT
The Great Britain-China Educational Trust is constituted under a Trust Deed dated 28 July 1975 and is registered with the Charity Commission (Charity no. 269944). The Trust was established by the Great Britain-China Centre (GBCC) to carry out certain objectives of the GBCC which are charitable in law.
The Trust Deed provides for the Trust to be administered by five trustees, not more than three to be nominated by the GBCC, one to be nominated by the British Council and one by the Universities China Committee (UCC) in London. The trustees may appoint a further two trustees for periods of not more than three years. New trustees are given a verbal induction regarding the aims and objectives of the Trust. They are also provided with a copy of the Trust Deed and details of the activities and most recent reports and accounts.
The Trustees meet twice a year to consider applications for awards which are made from the income of the Trust which consists of investment income and annual grants from the UCC in London and the SinoBritish Fellowship Trust (SBFT). The charity does not actively fundraise and relies on its existing sources of income.
The day to day administration of the charity is carried out by the GBCC, from whose premises the charity operates. The Trustees have assessed the major risks to which the charity is exposed, in particular those related to its operations and finances, and are satisfied that systems are in place to mitigate exposure to major risks.
OBJECTIVES AND ACTIVITIES
The charity's objects are:
"To advance the education of the Chinese peoples in China about Britain, its cultures and institutions and to advance the education of the British peoples in Britain about China, its cultures and institutions."
In pursuance of its objects, the charity's income is applied in making grants to Chinese applicants studying for a PhD in Britain, British postgraduate students pursuing essential doctoral research in China and for Chinese language scholarships to British applicants.
In determining how the charity should pursue its objects, the Trustees have had regard to the Charity Commission's guidance on public benefit.
GRANT MAKING POLICY
The Trust invites applications from Chinese students (from the Peoples Republic of China (PRC) including Hong Kong) studying for a PhD, who have already completed the second year of their doctorate. It grants awards of between £500 and £3,000, giving priority to applications where the bulk of funding has already been raised. A second small category of application is offered to British postgraduate students giving conference papers in China or travelling to China to pursue essential doctoral research. The Trust further awards Chinese language scholarships of up to £2,000 each to British postgraduates, normally resident in the UK, for the study of Mandarin Chinese language in Britain or East Asia.
Page 2
THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
TRUSTEES’ REPORT (CONTINUED)
ACHIEVEMENTS, PERFORMANCE AND FINANCIAL REVIEW
Incoming resources for the year amounted to £92,670 (2020: £68,587) and comprised grants received and income arising on the charity's investments.
Charitable expenditure in the year comprised awards totalling £68,250 (2020: £67,800) and support costs of £6,457 (2020: £8,279) while governance costs amounted to £810 (2020: £768) giving total resources expended of £75,517 (2020: £76,847).
It is the Trust’s policy that the level of unrestricted funds be maintained at a level which will generate investment income sufficient to supplement the incoming grants for making annual awards. Unrestricted funds which are not invested will be first designated to cover any shortfall for the year. As at 31 March 2021 free reserves totalled £430,653 (2020: £352,241).
PLANS FOR FUTURE PERIODS
The Great Britain-China Educational Trust is committed to the furtherance of academic and educational ties between the UK and China and will endeavour to maintain such ties in the coming year based on respecting principles of academic freedom as a crucial aspect of UK-China relations. On this basis, the Trust will again provide concrete help in the provision of grants to the most promising postgraduate students from China and Great Britain in accordance with its stated aims.
TRUSTEES’ RESPONSIBILITIES STATEMENT
The 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 and of the incoming resources and application of resources 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;
-
observe the methods and principles in the Charities SORP 2019 (FRS 102);
-
make judgements and estimates that are reasonable and prudent;
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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 the 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 Act 2011, the Charities (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 Trustees on 22 November 2021 and signed on their behalf.
Dr Frances Wood Trustee
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THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
INDEPENDENT EXAMINER’S REPORT
Independent Examiner's Report to the Trustees of The Great Britain - China Educational Trust
I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 March 2021 which are set out on pages 5 to 12.
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 charity’s accounts carried out under section 145 of the 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 giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Geoffrey Frost BSc (Hons) FCA Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex PO19 1SY
Date 24 November 2021
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THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
STATEMENT OF FINANCIAL ACTIVITIES
| Notes INCOME AND ENDOWMENTS FROM Donations and Legacies – Grants Sino-British Fellowship Trust Universities China Committee Investments 1 Total EXPENDITURE ON Charitable activities 2 Total Net gains/ (losses) on investments Net income / (expenditure) OTHER RECOGNISED GAINS/LOSSES Net Movement in funds RECONCILIATION OF FUNDS Total funds brought forward 11 Total funds carried forward 11 |
2021 Total Unrestricted Funds £ 50,000 28,000 14,670 92,670 (75,517) (75,517) 61,259 78,412 - 78,412 352,241 430,653 |
2020 Total Unrestricted Funds £ 50,000 - 18,587 |
|---|---|---|
| 68,587 | ||
| (76,847) | ||
| (76,847) | ||
| (75,988) | ||
| (84,248) | ||
| - | ||
| (84,248) 436,489 |
||
| 352,241 |
None of the charity's activities were acquired or discontinued during the above two financial years.
The charity has no recognised gains or losses other than those dealt with in the statement of financial activities.
The policies and notes on pages 7 to 13 form part of these financial statements.
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THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021
| Notes FIXED ASSETS Investments 8 CURRENT ASSETS Debtors Cash at bank and in hand Total current assets CURRENT LIABILITIES Creditors: amounts falling due within one year 10 Net current assets Net assets/ (liabilities) THE FUNDS OF THE CHARITY Unrestricted funds 11 Total charity funds 11 |
£ 3,170 102,853 106,023 (1,066) |
2021 £ 325,696 104,957 430,653 430,653 430,653 |
2020 £ £ 264,437 2,802 87,316 90,118 (2,314) 87,804 352,241 352,241 352,241 |
2020 £ £ 264,437 2,802 87,316 90,118 (2,314) 87,804 352,241 352,241 352,241 |
|---|---|---|---|---|
| 352,241 | ||||
| 352,241 | ||||
| 352,241 |
The policies and notes on pages 7 to 13 form part of these financial statements.
Approved by the Trustees on 22 November 2021 and signed on their behalf.
Dr Frances Wood Trustee
Mr John Moffett Trustee
Page 6
THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
ACCOUNTING POLICIES
General information, scope and basis of the financial statements
The Great Britain-China Educational Trust is a registered charity, established under a trust deed, in England and Wales. The principal office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are detailed in the Trustees’ report.
The charity constitutes a public benefit entity as defined by FRS 102. 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 financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest pound.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Cash flow statement
The charity has applied Update Bulletin 1 as published on 2 February 2016 and does not include a cash flow statement on the grounds that it is applying FRS 102 Section 1A.
Incoming resources
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.
Resources expended
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following expenditure headings:
- Charitable activities; these include grants to third parties and the costs of administering the charity inclusive of governance costs
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
Support and governance costs are those that assist the work of the charity but do not directly represent charitable activities. They are incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in the governance of the charity and primarily associated with the constitution and statutory requirements.
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THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
ACCOUNTING POLICIES (CONTINUED)
VAT
The charity is not registered for VAT and is unable to recover VAT incurred. On this basis costs are recorded inclusive of VAT within the SoFA.
Investments
The charity’s investments consist of accumulation cash funds and managed funds held with M&G.
Investments are included at market value at the balance sheet date. Any gain or loss on revaluation is disclosed in the SoFA, if applicable. Where investment assets are held in a foreign currency they are translated at the prevailing rate at the balance sheet date and any gain/loss on exchange rate movements is included in the SoFA in the other recognised gains and losses section.
Debtors receivable and creditors 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.
Cash and cash equivalent
Cash and cash equivalents include cash at bank and in hand and cash balances within the investment portfolio.
Taxation
The charity is considered to pass the test set out in sections 521 to 536 Income Tax Act 2007 (ITA 2007), as such no income tax is payable on the charity’s activities.
Fund Accounting
Unrestricted general funds are incoming resources receivable or generated for use in furtherance of the general objects of the charity without restriction.
Expendable endowment funds are those which are required to be invested to produce income but which may be transferred to unrestricted funds at the discretion of the Trustees in order that they may be expended in furtherance of the charities objectives.
Going Concern
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorizing these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to continue as a going concern.
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THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE FINANCIAL STATEMENTS
1. Investment income
| Dividends Bank interest . Charitable activities Grants made (see note 3) Support costs Reversal of prior year support costs accrual Governance costs (see note 4) |
2021 Total Unrestricted Funds £ 14,636 34 14,670 2021 Total Unrestricted Funds £ 68,250 7,746 (1,289) 810 75,517 |
2020 Total Unrestricted Funds £ 18,396 191 |
|
|---|---|---|---|
| 18,587 | |||
| 2020 Total Unrestricted Funds £ 67,800 8,279 - 768 |
|||
| 76,847 |
2. Charitable activities
3. Grants to individuals Great Britain-China Educational Trust Awards 2020-21
| . Grants to individuals reat Britain-China Educational Trust Awards 2020-21 |
|
|---|---|
| Universities China Committee funded awards Phillips, Chloe Oxford, Centre for Chinese Studies(L) Wang, Zhixuan Imperial, Dept of Chemical Engineering Yang, Jiashu UCL, Electronic & Electrical Engineering Dept Zeng, Yiluyi Warwick, Business School Zhang, Chong Durham, Dept of Sociology Zhang, Yuerong Edinburgh, Chemistry Dept Zheng, Sen UCL, Bartlett School of Planning Zhu, Lin Reading, Henley Business School Zhu, Zhaoyu Edinburgh, School of Architecture & Landscape Architecture GBCET awards Yao, Xiao Edinburgh, Dept of Asian Studies Yu, Ho Wing Oxford, Dept of Experimental Psychology |
2021 £ 1,000 2,000 2,000 750 750 2,000 2,000 2,000 1,500 |
| 14,000 | |
| 750 3,000 |
|
| 3,750 |
(L) Language Awards
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THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3. Grants to individuals (continued)
Great Britain-China Educational Trust Awards 2020-21
| Sino-British Fellowship Trust funded awards Chai, Yuan Manchester, Dept of Computer Science Chen, Xu Liverpool, Dept of Eye & Vision Science Chen, Yuhong Edinburgh, School of Engineering Devlin, Francis LSE/Peking Uni(L) Fu, Jinlong Swansea, College of Engineering Haines, Phoebe Beijing Language and Culture University(L) Han, Gang Swansea, Medical School Han, Yunzi SOAS, Media and Screen Studies He, Xuanze Imperial, Mechanical Engineering He Yazhou Edinburgh, Usher Institute, Centre for Global Health Research Hua, Weiqi Durham, Dept of Engineering Kochan, Julian Oxford, Centre for Chinese Studies(L) Kuermannal, Saltanat Cambridge, Centre of Development Studies Lai, Yung-Hang King's College London, Film Studies Lang, Feifan Sheffield, Chemistry Dept Le, Haonan Oxford, Chemistry Dept Li, Wenxi Leeds, East Asian Studies Lu, Huiqiang Imperial, Chemical Engineering Ng, Ho-Cheung Imperial, Dept of Computing Shigesi, Ni’na Oxford, Nuffield Dept of Women's and Reproductive Health Stafford, Jemma Bristol, School of Modern Languages(L) Stamm, Fiona Oxford, Centre for Chinese Studies(L) Tang, Ling Oxford, Oriental Institute Tang, Min Sheffield Hallam, Inst of Education Wan, Lei Oxford, Chemistry Dept Wang, Li’na Queen's University Belfast, Inst of Clinical Sciences Wang, Rongling Edinburgh, Queens Medical Research Institute Wang, Shu King's College London, Biomedical Engineering & Imaging Sciences Xiao, Chunwen Cambridge, Centre for Development Studies Yang, Zhuoqian Leeds, Inst for Transport Studies Yip, Wing Hei Queen Mary London, Linguistics Dept Zhang, Shuo Edinburgh, Chemistry Dept Total Awards |
2021 £ 1,000 2,000 1,500 1,500 2,000 500 2,000 500 2,000 2,000 500 1,000 2,000 2,000 1,000 2,000 1,000 2,000 3,000 3,000 1,500 2,000 2,000 1,500 2,000 500 2,000 2,000 500 1,000 1,000 2,000 |
|---|---|
| 50,500 | |
| 68,250 |
(L) Language Awards
4. Governance costs
| . Governance costs | ||
|---|---|---|
| Independent Examiner's fees - current year | 2021 Total Unrestricted Funds £ 810 810 |
2020 Total Unrestricted Funds £ 768 |
| 768 |
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THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
5. Related party transactions
No remuneration was received by the Trustees in this or the preceding year.
No Trustees in this or the preceding year were reimbursed travel expenses, incurred in attending meetings to consider award applications.
The charity has no employees, all administration being carried out by the Great Britain-China Centre at a cost of £7,734 (2020: £6,445).
There were no other related party transactions to disclose.
6. Net incoming resources is stated after charging
| . Net incoming resources is stated after charging | ||
|---|---|---|
| Independent Examiner's fees - current year | 2021 Total Unrestricted Funds £ 810 810 |
2020 Total Unrestricted Funds £ 768 |
| 768 |
7. Taxation
The Great Britain-China Educational Trust is a registered charity and is eligible for the exemptions from taxation available to charities on their charitable activities. No charge to taxation therefore arises.
8. Fixed asset investments
| . Fixed asset investments | ||
|---|---|---|
| M & G Charifund units Market value brought forward Additions at cost Disposals at carrying value Gain/ (loss) on revaluation Market value carried forward |
2021 Total Unrestricted Funds £ 264,437 - - 61,259 325,696 |
2020 Total Unrestricted Funds £ 340,425 (75,988) |
| 264,437 |
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THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
9. Financial instruments
| . Financial instruments | ||
|---|---|---|
| Financial assets Measures at fair value through net income/ (expenditure) Fixed asset investment Income and expenses Financial assets measured at fair value through net income/ (expenditure) Realised gains/ (losses) on investments Net gain and losses (including changes in fair value) Financial assets measured at fair value through net income/ (expenditure) Unrealised gains/ (losses) on investments Realised gains/ (losses) on investments |
2021 Total Unrestricted Funds £ 325,696 325,696 14,636 14,636 61,259 - 61,259 |
2020 Total Unrestricted Funds £ 264,437 |
| 264,437 | ||
| 18,396 | ||
| 18,396 | ||
| (75,988) - |
||
| (75,988) |
Fixed asset investments are held at fair value with valuations obtained using last traded or closing mid/bid market prices as available.
10. Creditors: Amounts falling due within one year
| 0. Creditors: Amounts falling due within one year | ||
|---|---|---|
| Accruals | 2021 Total Unrestricted Funds £ 1,066 1,066 |
2020 Total Unrestricted Funds £ 2,314 |
| 2,314 |
11. Reconciliation of net movements in funds
| 2021 Unrestricted funds Total funds |
Total funds brought forward £ 352,241 352,241 |
Total incoming resources £ 92,670 92,670 |
Total resources expended £ (75,517) (75,517) |
Unrealised gains £ 61,259 61,259 |
Total funds carried forward £ 430,653 |
|---|---|---|---|---|---|
| 430,653 |
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THE GREAT BRITAIN-CHINA EDUCATIONAL TRUST UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
11. Reconciliation of net movements in funds (continued)
| 2020 Unrestricted funds Total funds |
Total funds brought forward £ 436,489 436,489 |
Total incoming resources £ 68,587 68,587 |
Total resources expended £ (76,847) (76,847) |
Unrealised gains £ (75,988) (75,988) |
Total funds carried forward £ 352,241 |
|---|---|---|---|---|---|
| 352,241 |
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