Charity Registration No. 271592
THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975 ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr M French Mr J P Hargrove Mr R H Green
Charity number
271592
Independent examiner
Matthew Cleghorn FCA BSc (Hons) Suite F10 London Road Hardham Pulborough West Sussex RH20 1LA
Investment advisors
Sarasin & Partners LLP Juxon House 100 St Paul's Churchyard London EC4M 8BU
THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Statement of Trustees' responsibilities | 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 13 |
THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 JULY 2020
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity' s trust deed , the Charities Act 2011 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 and aims
For the advancement of education in any part of the world, for charitable purposes relating to Sherborne School and for the provision of bursaries at Sherborne School (for public benefit).
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Organisation
The original trustees as established under the Trust Deed have now all subsequently retired. They have been replaced by the current trustees who have served during the year as set out on page 2. No changes in trustees have taken place during the year to 31 July 2020.
The trustees are responsible for deciding investment policy. They meet on a regular basis to decide and evaluate their investment policy for generating the income which funds the bursaries provided at Sherborne School.
Expenditure is agreed by a Committee, and the committee members are appointed by the members of The Old Shirburnian Society. The Committee also appoints the trustees of the charity. The main committee meets three times a year. A Finance and Bursaries Sub-Committee meets twice a year and reports to the main committee.
Public Benefit
The trustees confirm they have complied with the duty in section 17(5) of the Charities Act 2011 to have regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit'. The charitable purposes of the trust are set out in its constitution.
Achievements and performance
The results for the period are shown on the Statement of Financial Activities on Page 5.
Investment income for the year increased to £42,065 (2019: £35,866), whilst total income fell to £58,097 (2019: 227,548) which included £16,000 (2019: £5,718) of Subscription contributions received in the year and the loan write down from The Old Shirburnian Society General Fund, Legacies of £nil (2019: £185,882) and Donations of £32 (2019: £82). Expenditure from unrestricted bursaries was £30,031 (2019: £37,821) which contributed to a surplus of £52,325 (2019: £232,298) on unrestricted funds before transfer between funds.
Financial review
The policy of the trustees is to generate sufficient annual income from the investment portfolio in order to finance the bursaries paid out whilst maintaining the capital reserves of the trust at similar levels to previous year. Unrestricted funds were maintained at this level throughout the year. As at 31 July 2020, £20,000 of the £1,414,885 reserves held related to the Endowment fund.
Investment policy and objectives
The investment objectives, as agreed between the trustees and the investment managers, is to aim for capital growth of 3% above the Retail Price Index and a flat yield of around 3% gross per annum.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020
Structure, governance and management
The Old Shirburnian Society Charitable Trust 1975 is a registered charity (registered number 271592). The Trust was constituted under a trust deed dated 18 March 1976.
The trustees who served during the year and up to the date of signature of the financial statements were: Mr M French
Mr J P Hargrove Mr R H Green
Risk management
The trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.
Related parties
The Old Shirburnian Society General Fund, which consists primarily of former pupils of Sherborne School, has as its aims:-
a) To enable its members to maintain contact with each other and with the school.
b) To support the school, and
c) To provide funds for the charitable trust to assist the sons of Old Shirburnians by way of bursaries.
The Old Shirburnian Society General Fund is effectively the "trading arm" of the society and is responsible for producing the Annual Record and occasional newsletters. The General Fund produces separate accounts.
The Trustees' r eport was approved by the Board of Trustees.
Mr J P Hargrove
Dated: 12 March 2021
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 JULY 2020
The trustees 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).
The law applicable to charities in England and 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 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 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 sufficient 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 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.
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
I report to the trustees on my examination of the financial statements of The Old Shirburnian Society Charitable Trust 1975 (the charity) for the year ended 31 July 2020.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of 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
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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 130 of the 2011 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 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 financial statements to be reached.
Matthew Cleghorn FCA BSc (Hons)
Suite F10 London Road Hardham Pulborough West Sussex RH20 1LA
Dated: 22 March 2021
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2020
| Unrestricted Endowment funds funds 2020 2020 Notes £ £ Income and endowments from: Donations and legacies 3 32 - Investments 4 42,065 - Other income 5 16,000 - Total income 58,097 - Expenditure on: Charitable activities Direct costs 6 30,031 1,200 Support costs 6 1,800 - Total charitable expenditure 31,831 1,200 Net gains/(losses) on investments 9 26,059 - Net incoming/(outgoing) resources before transfers 52,325 (1,200) Gross transfers between funds (1,200) 1,200 Net movement in funds 51,125 - Fund balances at 1 August 2019 1,343,760 20,000 Fund balances at 31 July 2020 1,394,885 20,000 |
Total 2020 £ 32 42,065 16,000 58,097 31,231 1,800 33,031 26,059 51,125 - 51,125 1,363,760 1,414,885 |
Total 2019 £ 185,964 35,866 5,718 |
|---|---|---|
| 227,548 | ||
| 39,021 2,160 |
||
| 41,181 | ||
| 45,931 | ||
| 232,298 - |
||
| 232,298 1,131,462 |
||
| 1,363,760 |
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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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
BALANCE SHEET
AS AT 31 JULY 2020
| Notes Fixed assets Investments 10 Current assets Debtors 11 Cash at bank and in hand Creditors: amounts falling due within one year 12 Net current assets/(liabilities) Total assets less current liabilities Capital funds Endowment funds - general 13 Income funds Unrestricted funds Designated funds 14 General unrestricted funds |
2020 £ £ 1,410,944 164 39,173 39,337 (35,396) 3,941 1,414,885 20,000 324,493 1,070,392 1,394,885 1,414,885 |
2019 £ £ 1,384,885 164 24,467 24,631 (45,756) (21,125) 1,363,760 20,000 324,493 1,019,267 1,343,760 1,363,760 |
|---|---|---|
The financial statements were approved by the Trustees on 12 March 2021
Mr J P Hargrove Trustee
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2020
1 Accounting policies
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011 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 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
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.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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.
Investment income is accounted for in the period in which the charity is entitled to receipt.
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020
1 Accounting policies
(Continued)
1.5 Resources expended
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of obligation can be measured reliably. Expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to a particular headings, they are allocated to activities on a cost basis consistent with the use of resources.
Bursaries are charged in the period in which they are paid on behalf of the recipient.
Management and administration comprises costs for the running of the charity as an organisation.
1.6 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
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.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted funds 2020 £ Donations and gifts 32 Legacies receivable - 32 |
Total 2019 £ 82 185,882 185,964 |
|---|---|
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020
4 Investments
| Dividends - UK equities 5 Other income Contribution from General Fund Loan write down 6 Charitable activities Direct costs Support costs £ £ Bursaries (Endowment) 1,200 - Bursaries 30,031 - 31,231 - Accountancy and legal fees - 1,800 31,231 1,800 |
2020 £ 42,065 2020 £ 6,000 10,000 16,000 Total 2020 £ 1,200 30,031 31,231 1,800 33,031 |
2019 £ 35,866 2019 £ 5,718 - 5,718 Total 2019 £ 1,200 37,821 39,021 2,160 41,181 |
|---|---|---|
7 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020
8 Employees
Number of employees
The average monthly number of employees during the year was:
| 2020 | 2019 |
|---|---|
| Number | Number |
| 2 | 2 |
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020
9 Net gains/(losses) on investments
| Unrestricted | Total | |
|---|---|---|
| funds | ||
| 2020 | 2019 | |
| £ | £ | |
| Revaluation of investments | 26,059 | 45,931 |
10 Fixed asset investments
| Listed | |
|---|---|
| investments | |
| £ | |
| Cost or valuation | |
| At 1 August 2019 | 1,384,885 |
| Valuation changes | 26,059 |
| At 31 July 2020 | 1,410,944 |
| Carrying amount | |
| At 31 July 2020 | 1,410,944 |
| At 31 July 2019 | 1,384,885 |
Investments at market value comprised;
UK equities and other investments £329,091 (2019: £588,656) UK equities and other investments £219,213 (2019: £161,703) Overseas equities and other investments £862,640 (2019: £634,526)
Fixed asset investments in the current and previous year were held in a single fund, being Alpha CIF.
11 Debtors
| Debtors | ||
|---|---|---|
| 2020 | 2019 | |
| Amounts falling due within one year: | £ | £ |
| Other debtors | 164 | 164 |
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020
12 Creditors: amounts falling due within one year
| Other creditors Accruals and deferred income |
2020 £ 33,596 1,800 35,396 |
2019 £ 43,956 1,800 45,756 |
|---|---|---|
13 Endowment funds
Endowment funds represent assets which must be held permanently by the charity , principally investments. The endowment fund comprises a bequest of £20,000 which was received during 1999 from the estate of Miss Pound. The terms of the will state that the income from this legacy, together with such additional income as may be added by the society, should be used to fund the bursary of her nephew, killed in Italy in 1944, to be called the James Bradfield Bursary. The £20,000 originally deposited into the CAF cash account has been transferred to the Trustees for incorporation into the main investment fund. Income arising on the endowment is used to fund a bursary of £1,200 per annum in accordance with the objects of the charity, and any shortfall between the bursary and the income arising on the endowment fund is made good by a transfer of unrestricted funds.
| Movement | in funds | ||
|---|---|---|---|
| Balance at 1 | Incoming | Resources | Balance at 31 |
| August | resources | expended | July 2020 |
| 2019 | |||
| £ | £ | £ | £ |
| 20,000 | 1,200 | (1,200) | 20,000 |
| 20,000 | 1,200 | (1,200) | 20,000 |
14 Designated funds
The income funds of the charity include the following designated fund which ha s been set aside out of unrestricted funds by the trustees for a specific purpose:
| Movement | ||||
|---|---|---|---|---|
| in funds | ||||
| Balance at | Incoming | Balance at | ||
| 1 | August 2019 | resources | 31 July 2020 | |
| £ | £ |
£ | ||
| David Ellis Fund | 324,493 | - |
324,493 | |
| 324,493 | - |
324,493 |
During the 2018 and 2019 financial years, the Charity received legacy receipts from the estate of the late David Ellis. As at 31 July 2020, no monies have been awarded from this fund.
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THE OLD SHIRBURNIAN SOCIETY CHARITABLE TRUST 1975
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020
15 Related party transactions
There were no disclosable related party transactions during the year (2019 - none).
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