**Charity registration number: 272339**
## **THE MARKETORS TRUST**
**ANNUAL REPORT**
**FOR THE YEAR ENDED**
**31 DECEMBER 2022**
## **CONTENTS**
|||Page|
|---|---|---|
|**Trust information**||1|
|**Trustees**
**report**||2|
|||7|
|**Statement of financial activities**||10|
|**Balance sheet**||11|
|**Notes to the financial statements**||12|
## **TRUST INFORMATION**
|**Trustees**
**Secretary**
**Charity number**
**Address**
**Website**
**Independent auditors**
**Bankers**
**Investment advisors**|The Trustees at the date of this report are:
P. Andrew
Chairman (appointed 29 March 2021)
G. Cartwright (appointed 27 January 2021)
A.B. Mackay (appointed 29 March 2021)
D.A. Clarke Noble (appointed 29 March 2021)
D.C. Cowell (appointed 29 March 2021)
C. Webb (appointed 30 June 2022)
Professor I. Ryder (appointed 30thJanuary 2023)
D. Elmer (appointed 30thJanuary 2023)
In addition, the following Trustees served during the period under review:
J. Farrell (appointed 30 January 2019, resigned 26 January 2022)
D. Tombs (appointed 20 March 2018, resigned 14th April 2023)
Dr T. Brignall (appointed 30 January 2020, resigned 30thJanuary 2023)
J. Boulding (appointed 25 March 2021, resigned 30thJanuary 2023)
S. Rendle
272339
One London Wall,
London,
EC2Y 5JU.
www.marketors.org
F. W. Smith, Riches & Co.,
Chartered Accountants & Statutory Auditors,
15 Whitehall,
London,
SW1A 2DD.
CAF Bank Limited,
25 Kings Hill Avenue,
Kings Hill,
West Malling,
Kent,
ME19 4JQ.
Evelyn Partners,
45 Gresham Street,
London,
EC2V 7BG.|
|---|---|
Page 1
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
The Trustees present their report together with the financial statements of the Trust for the year ended 31 December 2022. The report and financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Trust 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 the Republic of Ireland (FRS 102).
## **Appointment of Trustees**
Four Trustees are appointed on the basis of their position within the Worshipful Company of Marketors. The Master, the Senior Warden, the Middle Warden and the Treasurer are Company appointed Trustees. Once elected an officer of the Company, the officer is appointed a Trustee and normally serves for a three year term. The Chairman of the Trustees is appointed by the Court of the Worshipful Company of Marketors. A maximum of five further Trustees can be appointed by the Trust. These Trustees cannot be serving officers of the Company and must not be Court Members of the Company.
## **Induction and training**
trust Deed and historical
financial statements. Training and further guidance is provided when requested by new Trustees.
## **Trustees**
The Trustees at the date of this report and those who served during the year are set out on page 1.
The Trustees met 4 times during the year.
The Trustees have been considering the most suitable governance structure for the Trust, in line with current best practice. The Trustees have formally agreed an amendment to the Trust deed whereby, in line with other City Livery/Trust relationships, the Worshipful Company of Marketors (The Company) would become the corporate trustee for the Trust rather than the current individual trustee structure, that has been in place since the Trust was set up.
Legal advice has been sought and the concept has been formally agreed by the Master and Wardens of The Company and approved by the Court of Assistants.
The resolution enacting this change is due to be put to the Court of Assistants of The Company in June or September 2023. Should it be approved, it is anticipated that the corporate Trustee would be appointed by the end of 2023 and the current Trustees would resign. The Company would then appoint a committee to oversee the Trust. It is anticipated that this Committee would, initially, include many of the ex-Trustees to enable a smooth transition.
This creates a structure whereby legal responsibility will be held by a Corporate Body, in this case given substance through The Company's Royal Charter.
## **Legal and charitable status**
The Trust is constituted under a trust deed dated 12 October 1976 and is a registered charity (no.272339).
## **Objectives and activities**
The Trust was formed to encourage education in marketing, to provide relief to any person in necessitous circumstances who is or has been a Member of the Worshipful Company of Marketors and to make grants to any charitable association established for educational or other charitable purposes in the City of London or elsewhere. The Trustees annually review the charitable activities the Trust undertakes and consider new opportunities for giving, putting in place measurable KPIs on any major new expenditure.
Page 2
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Objectives and activities (continued)**
The Trust has a continuing programme of support by way of the Corporation of the City of London and relief of Liverymen and Freemen in necessitous circumstances.
From 2022 the Trust also manages a scholarship programme within the Martyn Davis Educational Bursary Fund. The scholarship is awarded once every five years for the recipient to attend the Harvard Business School Advanced Management Program. The next award will be in 2025 and is open to Marketors as well as the general public.
## **Financial review**
The financial results for the year are set out in the Statement of Financial Activities on page 10.
## _**Education**_
The Trust has established links with a wide range of universities, colleges of higher education and schools in the UK. The Trustees review each year a range of existing and potential awards to students undertaking studies associated with marketing.
The educational awards and prizes given by the Trustees are set out in note 8 to the financial statements. These amounted to £5,210 (2021: £8,435).
## _**Charity**_
The Trustees each year receive and review a wide range of appeals.
charities or causes mainly associated with the City of London.
During 2021 a new 2 year giving strategy was approved whereby would be substantially increased in order to benefit more organisations. This strategy policy: to maintain reserves of not less than £650,000 plus the restricted funds held within the Martyn Davis Educational Bursary Fund.
During the period the Trust made donations to charitable causes amounting to £135,210 (2021: £40,110) as set out in note 10 to the financial statements. This includes a new initiative in the form of the Charity Grants Programme which runs an annual competition for small charities requiring funds for marketing purposes.
There is a total grant s fund of £30,000, awarded as follows:
- two top grants of £10,000 each
- four grants of £2,500 each
These grants are for the purpose of funding marketing campaigns and are not available for staff costs, capital investment, hardware or infrastructure work or ongoing SEO/PPC activity, although the campaign can include an element of PPC or SEO. Examples of campaign proposals that would be eligible include:
- general fundraising campaigns
- activities aimed at increasing regular donations
- proposals for the recruitment of volunteers
In addition, a more recent focus has been the provision of grants to charities promoting access to business and marketing to young people who would otherwise struggle to gain access or insight into the marketing profession. This includes a donation of £43,750 to provide funding to Unloc, a youth Charity, for its 2022 and 2023 programme. This is by far our largest donation.
Page 3
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Financial review (continued)**
The Trustees also consider appeals for assistance to Liverymen, Freemen and their families who are in need, usually on the advice of the Company Almoners.
During the period the Trustees provided hardship grants of £2,900 (2021: £2,400) to the widow of a former Liveryman as set out in note 9 to the financial statements.
## **Donors**
The Trust is reliant for its voluntary income on regular donations (mostly by direct debit and with gift aid) from members of the Worshipful Company of Marketors, which is investments. The Trustees regularly seek to increase the number of members of the Company contributing. The Trustees take this opportunity to thank all those who have made donations to the Trust during the year.
## **Plans for future periods**
In the autumn of 2021, the Trustees undertook a survey of the members of the Worshipful Company of Marketors to see what they would like us to focus on. The results from more than 150 respondents (nearly one third of all members) suggested that focus should be on creating opportunities for people who struggle to access marketing as a career, supporting apprenticeship schemes and to look at larger, longer term giving rather than a lot of smaller awards. There were also multiple sugg
than just being one of many donors. There was also a strong focus on increasing our annual giving amounts rather than building up reserves any further.
The Trustees have taken this feedback and built it into a 2022-23 plan that has seen giving compared to previous years altered as follows:
- Expansion of the partnership with the Company to increase the impact of the Charity Marketing Grants programme.
- Expansion of giving to long term youth projects.
The Trust will continue much of our more traditional giving:
- Armed services donations to be made within limits of our charitable objects, in that it must be related to an armed forces charitable activity.
- Marketing industry donations, although we will review these for effectiveness on an annual basis
- We will also of course continue one of our core remits to provide hardship grants as necessitated by member requests through the Company almoner.
## **Public Benefit**
number of different categories of applicants all of which are open to any member of the public which fall into these categories:
- a) The education or training of person or persons connected with the Industry of Marketing by means of prizes, awards, sponsorship and bursaries. From 2022 this will include the awarding of scholarships under the Martyn Davis Educational Bursary Fund once every five years for the recipient to attend the Harvard Business School Advanced Management Program. The next award will be in 2025. As of 2023 the cost of the course is $89,000 per attendee. This scholarship is open to applications from the general public as well as members of the Worshipful Company of Marketors.
Page 4
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Public Benefit (continued)**
- b) The making of grants, donations, subscriptions to any registered charity which has as its objects the promotion of education and training in the field of marketing.
- c) The making of grants, donations or subscriptions to any charitable organisation or to any fund whose purpose is educational or other charitable purposes in the City of London, or elsewhere in the UK.
- d) The relief of any person who is the member or dependent of a member or of any deceased member of the Worshipful Company of Marketors.
- e) Any other charitable purpose.
## _**How much is given**_
The benefits are normally for sums varying from £250 to £15,000.
## _**How is money dispersed**_
Funding requests, whether a renewal of an existing arrangement, or new requests, are handled by the Giving Coordinator who presents the requests at each Trust meeting. These are then discussed in the context of the annual budget and either approved or rejected. Rejections will be either due to funding constraints or the request being outside the core charitable objects. The exception to this is the Charity Grants Programme which is coordinated on an annual basis in partnership with the Worshipful Company of Marketors.
The Trustees confirm that they have referred to the guidance conta and in planning future activities.
## **Investment Policy**
currently Evelyn
Partners an FCA regulated firm.
reserve policy _:_ to maintain unrestricted funds of approximately £650,000 together with the funds held in restricted funds. realisation of investments surplus to the and so finance the expenditures of the Trust, as budgeted and approved by the Trustees, from time to time in
The Trustees have formally agreed with Evelyn Partners a target benchmark for annual income and gains, at approximately UK CPI +3% measured over rolling five-year periods.
Evelyn Partners are unconstrained by any social or environmental parameters imposed by the Trustees. The Trustees do, however, regularly review the appropriateness of social and/or environmental parameters, to guide regular basis. During 2022 the investments performed broadly in line with markets. The overall market value of the Trust's investments at the end of the year was £1,470,058 (2021: £1,631,718).
## **Risk management**
The Trust, as a small charity, is not required to undertake a formal risk analysis.
Page 5
## **TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **Reserve policy**
The Trustees have examined the requirement for free reserves, which are unrestricted reserves, and consider that the Trust should aim to maintain unrestricted reserves of around £650,000 plus the restricted funds held within the Martyn Davis Educational Bursary Fund, with the remaining balance being held for the purpose of new giving proposals, to be sought from the membership of the Company or the Trustees. It is anticipated that new giving proposals will be larger in scale and value to beneficiaries. This policy to be reviewed annually by the Trustees. The Trustees will also ensure that sufficient investment income will be generated in order to enable the Trust to continue to maximise its charitable activities in accordance with its aims whilst being very conscious of not building up reserves at the expense of fulfilling our charitable objects. As shown on page 11 of the financial ere £852,736 £582,149 (2021: £630,771). At 31 December 2022, the unrestricted reserves included unrealised gains on investments of £78,082 (2021: £188,323) and the restricted funds included unrealised losses of £45,447 (2021 gains of £1,405). It is, therefore, likely that in accordance with the performance of stock markets.
## **Statement of Trustees responsibilities**
The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
The law applicable to charities in England & Wales 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 Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources, including the income and expenditure, of the Trust for that period.
In preparing these financial statements, the Trustees are required to:
select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable UK 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 Trust will continue to operate.
The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust 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 Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees co auditors are unaware. The Trustees have taken all the steps that they ought to have taken as Trustees in order to of that information.
By order of the Trustees
## **P. Andrew - Chairman**
22 June 2023
Page 6
## **INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE**
## **Opinion**
for the year ended 31 December
2022 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the Trust 2 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 e audit of the financial statements section of our report. We are independent of the Trust in accordance with the 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 T 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 Trust 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 Trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 7
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion **:**
- the information given in the T inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; 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 require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the T 6 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 Trust 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 Trust or to cease operations, or have no realistic alternative but to do so.
## **responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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:
Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include the Charities Act 2011 and UK financial reporting standards.
- It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the Trust.
Page 8
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE**
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of the minutes of Trustee meetings; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our
## **Use of our report**
This report is made solely to the Trust Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Trust Trustees those matters fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Trust and the Trust Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **F. W. Smith, Riches & Co.**
Chartered Accountants & Statutory Auditors London
22 June 2023
F. W. Smith Riches & Co. is eligible for appointment as auditor of the by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
Page 9
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022**
|**Note**
**Income**
Donations, legacies and gifts
3
Exceptional donation from the
Martyn Davis Charitable Trust
3
Investment income
4
**Total income**
**Expenditure**
_Costs of raising funds:_
Cost of generating voluntary
Income
5
Investment management fees
_Charitable activities:_
Educational awards and prizes
8
Hardship grants
9
Charitable donations
10
**Total expenditure**
**Net income and net movement**
**in funds before gains on**
**Investments**
Unrealised (losses)/gains
12
Realised gains/(losses)
12
**Net movement in funds for the**
**Year**
17
**Fund balances brought forward**
17
**Fund balances carried forward**
17|**2022**
**Unrestricted**
**funds**
**£**
**42,629**
**-**
**17,409**
**60,038**
**654**
**8,305**
**8,959**
**6,740**
**4,175**
**151,075**
**161,990**
**170,949**
**(110,911)**
**(110,241)**
**44,944**
**(176,208)**
**1,028,944**
**852,736**|**2022**
**Restricted**
**funds**
**£**
**-**
**-**
**9,167**
**9,167**
**-**
**6,537**
**6,537**
**-**
**-**
**-**
**-**
**6,537**
**2,630**
**(46,882)**
**(4,370)**
**(48,622)**
**630,771**
**582,149**|**2022**
**Total**
**funds**
**£**
**42,629**
**-**
**26,576**
**69,205**
**654**
**14,842**
**15,496**
**6,740**
**4,175**
**151,075**
**161,990**
**177,486**
**(108,281)**
**(157,123)**
**40,574**
**(224,830)**
**1,659,715**
**1,434,885**|2021
Total
funds
£
49,407
629,266
27,792|
|---|---|---|---|---|
|||||706,465|
|||||753
8,587|
|||||9,340|
|||||10,652
3,594
47,692|
|||||61,938|
|||||71,278|
|||||635,187
92,553
978|
|||||728,718
930,997|
|||||1,659,715|
Page 10
## **BALANCE SHEET AS AT 31 DECEMBER 2022**
|**Note**
**Fixed assets**
Tangible fixed assets
11
Investments
12
**Total fixed assets**
**Current assets**
Debtors
13
Cash at bank and in hand
14
**Total current assets**
Creditors: amounts falling due
within one year
15
**Net current (liabilities)/assets**
**Total assets less current**
**liabilities**
**Fund balances**
**Restricted funds**
17
**Unrestricted funds**
17|**2022**
**£**
**-**
**1,470,058**
**1,470,058**
**8,797**
**29,300**
**38,097**
**(73,270)**
**(35,173)**
**1,434,885**
**582,149**
**852,736**
**1,434,885**|2021
£
252
1,631,718|
|---|---|---|
|||1,631,970|
|||13,293
31,449|
|||44,742|
|||(16,997)|
|||27,745|
|||1,659,715|
|||630,771
1,028,944|
|||1,659,715|
The financial statements on pages 10 to 23 were approved and authorised for issue by the Trustees on 22 June 2023 and were signed on their behalf by:
**P. Andrew Chairman**
Page 11
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. Accounting policies**
## **1.1 Basis of preparation of financial statements and assessment of going concern**
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP FRS 102, second edition), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Trust qualifies as a small charity and has therefore taken advantage of the exemption in the Charities FRS 102 not to prepare a statement of cash flows.
The Trust constitutes a public benefit entity as defined by FRS 102.
The Trustees consider that there are no material uncertainties about the Trust a going concern.
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Trust's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.
## **1.2 Income recognition**
All income is recognised once the Trust has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following criteria must also be met before income is recognised:
## _**Donations and gifts**_
Donations and gifts are recognised when both the amount and settlement date are known.
## _**Legacies**_
Legacies are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date.
## _**Investment income**_
Interest on funds held on deposit is included upon notification of the interest being paid or payable. Income from investments is recognised once the distribution has been declared and notification of the distribution due has been received.
## **1.3 Foreign currency translation**
## _**Functional and presentation currency**_
Page 12
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. Accounting policies (continued)**
## **1.3 Foreign currency translation (continued)**
## _**Transactions and balances**_
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end, foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Financial Activities.
All foreign exchange gains and losses are presented in the Statement of Financial Activities.
## **1.4 Resources expended**
Expenditure is recognised in the period when there is a legal or constructive obligation committing the Trust to that expenditure, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All support and governance costs are allocated or apportioned to the applicable expenditure headings. Governance costs comprise all costs involving the public accountability of the Trust and its compliance with regulation and good practice.
## **1.5 Tangible fixed assets**
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use and dismantling and restoration costs.
Depreciation is calculated, using the straight-line method, to allocate the cost of assets less their residual value over their estimated useful lives, as follows:
- Office equipment 2 years
each reporting period. The effect of any change is accounted for prospectively.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the Trust and the cost can be measured reliably. Repairs and maintenance costs are expensed as incurred.
Tangible fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Statement of Financial Activities.
Page 13
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. Accounting policies (continued)**
## **1.6 Fixed asset investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The Trust does not acquire options, derivatives or other complex financial instruments.
The main form of financial risk faced by the Trust is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
## **1.7 Investment management fees**
Investment management fees portfolios.
## **1.8 Funds**
## _**Unrestricted funds**_
Unrestricted funds are funds that the Trustees are free to use for any purpose in furtherance of the charitable objects.
## _**Restricted funds**_
Restricted funds are funds, which have legal restrictions on their use, where donors have specified the funds can only be spent on specific activities.
## **1.9 Financial instruments**
The Trust has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
## _**Short term debtors and creditors**_
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 the Statement of Financial Activities.
## _**Cash and cash equivalents**_
Cash and cash equivalents comprise cash at bank and in hand.
## _**Offsetting**_
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Page 14
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **1. Accounting policies (continued)**
## **1.10 Irrecoverable VAT**
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
## **1.11 Allocation of support and governance costs**
Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the Trust and its compliance with regulation and good practice.
Governance costs and support costs relating to charitable activities have been apportioned in proportion to the amounts granted. The allocation of support and governance costs is analysed in note 6.
## **1.12 Charitable activities**
Costs of charitable activities include grants made and an apportionment of support and governance costs as shown in note 6.
## **1.13 Realised and unrealised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their original purchase value. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are shown separately in the Statement of Financial Activities.
## **1.14 Taxation**
H. M. Revenue & Customs has granted the Trust charity exemption and thus it is exempt from taxation.
## **2. Judgements in applying accounting policies and key sources of estimation uncertainty**
In preparing the financial statements management are required to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from these estimates. Whilst management have made judgements, estimates and assumptions in preparing the financial statements, they consider that these have not had a significant effect on amounts recognised.
Page 15
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **3. Donations, legacies and gifts**
|Donations including gift aid
Exceptional donation receivable from the
Martyn Davis Charitable Trust|**2022**
**Unrestricted**
**funds**
**£**
**42,629**
**-**
**42,629**|**2022**
**Restricted**
**funds**
**£**
**-**
**-**
**-**|**2022**
**Total**
**funds**
**£**
**42,629**
**-**
**42,629**|2021
Total
funds
£
49,407
629,266|
|---|---|---|---|---|
|||||678,673|
The exceptional donation arose on the closure of the Martyn Davis Charitable Trust on 19 November 2021. Upon closure the net
creating a restricted fund named The Martyn Davis Educational Bursary Fund .
## **4. Investment income**
|Interest receivable
Income from investments
Foreign exchange gains on cash held
for investment|**2022**
**Unrestricted**
**funds**
**£**
**68**
**17,341**
**-**
**17,409**|**2022**
**Restricted**
**funds**
**£**
**30**
**3,981**
**5,156**
**9,167**|**2022**
**Total**
**funds**
**£**
**98**
**21,322**
**5,156**
**26,576**|2021
Total
funds
£
8
27,784
-|
|---|---|---|---|---|
|||||27,792|
## **5. Cost of generating voluntary income**
||**2022**|2021|
|---|---|---|
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**£**|£|
|Charities Aid Foundation charges|**654**|753|
All the costs of generating voluntary income were incurred from unrestricted funds.
Page 16
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **6. Allocation of governance and support costs**
**----- Start of picture text -----**
An
Governance Support Total Total
costs costs 2022 2021
£ £ £ £
Bookkeeping services 3,096 - 3,096 1,680
160 - 160 160
Legal fees 2,544 - 2,544 -
Accounting software 314 - 314 664
Bank charges - 111 111 112
4,250 750 5,000 3,000
External audit fee (including VAT) 5,400 - 5,400 2,400
Printing - 553 553 419
Administrative assistance - 1,200 1,200 700
Depreciation expense - 252 252 252
Data protection fee 40 - 40 -
Consultancy fees - - - 1,000
Sundry expenses - - - 126
Website update - - - 432
Travel - - - 48
15,804 2,866 18,670 10,993
**----- End of picture text -----**
The cost of the services of the Trust secretary is apportioned based on time spent. Other costs where directly attributable to an activity are allocated to that activity. Where a cost is not directly attributable it is allocated initially to support costs. Subsequently support costs and governance costs are allocated on a basis consistent with the use of resources. The cost allocations are given below:
|**Cost allocation: 2022**
Governance costs
Support costs
Cost allocation: 2021
Governance costs
Support costs|**Educational**
**Awards and**
**Prizes**
**£**
**575**
**955**
**1,530**|**Charitable**
**Donations**
**£**
**14,909**
**956**
**15,865**|**Hardship**
**Grants**
**£**
**320**
**955**
**1,275**|**Total**
**2022**
**£**
**15,804**
**2,866**|
|---|---|---|---|---|
|||||**18,670**|
||Educational
Awards and
Prizes
£
1,429
788
2,217|Charitable
Donations
£
6,793
789
7,582|Hardship
Grants
£
406
788
1,194|Total
2021
£
8,628
2,365|
|||||10,993|
All governance and support costs were incurred from unrestricted funds.
Page 17
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **7. Trustees remuneration and expenses**
The Trustees all give freely of their time and expertise without any form of remuneration. In addition, no expenses were reimbursed to the Trustees in either 2022 or 2021.
## **8. Educational awards and prizes**
|Birkbeck Business School award winner
Westminster Business School award winner
Portsmouth Business School award winner
Bath Business School award winner
CIM Top Student award winner
City of London School award winner
Cranfield Business School award winner
Cambridge Judge Business School award winner
Allocated costs (note 6)
All awards and prizes are made to individuals from unrestricted funds.
**Hardship grants**
Hardship grants to individuals
Allocated costs (note 6)
All hardship grants were made from unrestricted funds.|**2022**
**£**
**1,270**
**1,270**
**1,135**
**1,000**
**500**
**35**
**-**
**-**
**5,210**
**1,530**
**6,740**
**2022**
**£**
**2,900**
**2,900**
**1,275**
**4,175**|2021
£
-
1,260
1,130
1,130
2,525
-
1,260
1,130|
|---|---|---|
|||8,435
2,217|
|||10,652|
|||2021
£
2,400|
|||2,400
1,194|
|||3,594|
||||
## **9. Hardship grants**
Page 18
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **10. Charitable donations**
|Unloc (funding for 2022 and 2023)
Act4Africa
DEC Ukraine Appeal
Been There
Sutton Night Watch
The Stationers' Foundation
Museum of Brands
St
Nai's House
Childhood cancer parents alliance
Better Giving Partnership
Pakistan Flood Relief
Trussell Trust
East End W
museum
Abbotshall Healthy Lifestyle Centre
The Pelvic Partnership
Surrey Search and Rescue
United African Association's
Market Research Society
Archive of Social & Market Research
History of Advertising Trust
Mansion House Scholarships
The Arts Marketing Association
GOSH
British Red Cross
Royal Navy Charity
University of Plymouth
Allocated costs (note 6)|**2022**
**£**
**43,750**
**10,270**
**10,000**
**10,000**
**10,000**
**9,000**
**5,000**
**2,650**
**2,500**
**2,500**
**2,500**
**2,500**
**2,500**
**2,500**
**2,500**
**2,500**
**2,500**
**2,500**
**2,500**
**2,200**
**1,140**
**1,100**
**1,000**
**1,000**
**600**
**-**
**-**
**-**
**-**
**-**
**135,210**
**15,865**
**151,075**|2021
£
5,000
-
-
-
-
-
15,000
2,650
-
-
-
-
-
-
-
-
-
-
-
2,000
960
1,000
1,000
1,000
500
7,000
2,000
1,000
500
500|
|---|---|---|
|||40,110
7,582|
|||47,692|
All charitable donations were made from unrestricted funds.
Page 19
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **10. Charitable donations (continued)**
|Analysis of donations to institutions:
Health, welfare and advice
Education, training and cultural activities
Allocated costs|**2022**
**£**
**112,770**
**20,240**
**2,200**
**15,865**
**151,075**|2021
£
9,350
28,760
2,000
7,582|
|---|---|---|
|||47,692|
charities. Further details of the charities supported can be
**T** found at: www.the lordmayorsappeal.org.
## **11. Tangible fixed assets**
|**Cost**
At 1 January 2022 and at 31 December 2022
**Depreciation**
At 1 January 2022
Charge for period
At 31 December 2022
**Net book value**
At 31 December 2022
At 31 December 2021|**Office**
**Equipment**
**£**
**504**|
|---|---|
||**252**
**252**|
||**504**|
||**-**|
||252|
Page 20
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **12. Investments (listed)**
|Brought forward
Additions
Disposals
Realised gains
Change in fair value
Carried forward
Investments at fair value comprise:
Equities and unit trust|**2022**
**Cost**
**£**
**1,441,990**
**388,649**
**(393,185)**
**-**
**-**
**1,437,454**|**2022**
**Fair**
**value**
**£**
**1,631,718**
**388,649**
**(433,760)**
**40,574**
**(157,123)**
**1,470,058**|2021
Cost
£
741,323
704,689
(4,022)
-
-
1,441,990
**2022**
**£**
**1,470,058**|2021
Fair
value
£
838,498
704,689
(5,000)
978
92,553|
|---|---|---|---|---|
|||||1,631,718|
|||||2021
£
1,631,718|
All investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
Investments are financial assets measured at fair value through the Statement of Financial Activities.
|**13.**|**Debtors**|||
|---|---|---|---|
|||**2022**|2021|
|||**£**|£|
||Prepayments and accrued income|**8,797**|13,293|
Page 21
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **14. Bank balances**
|Current account
Deposits with investment managers|**2022**
**£**
**6,124**
**23,176**
**29,300**|2021
£
23,877
7,572|
|---|---|---|
|||31,449|
## **15. Creditors: amount falling due within one year**
|Donations payable to charitable organisations
Amounts payable to educational prize winners
Amounts payable to The Worshipful Company of Marketors
Accruals|**2022**
**£**
**57,750**
**-**
**2,225**
**13,295**
**73,270**|2021
£
10,000
1,000
230
5,767|
|---|---|---|
|||16,997|
## **16. Commitments**
The Trust had the following commitments at 31 December 2022. Commitments will be funded from future investment income and donations or from reserves, where necessary, as they fall due:
||**2022**|2021|
|---|---|---|
||**£**|£|
|Between two and five years|**27,500**|-|
Certain donations have performance related conditions, which determine when expenditure is recognised in the Statement of Financial Activities. Performance related conditions under the commitments noted above had not been fulfilled at 31 December 2022. The commitments are to be funded from unrestricted funds.
Page 22
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **17. Funds**
|At 1 January 2022
Net movement in funds in year
At 31 December 2022
**Analysis of net assets between funds**
Investments
Current assets
Current liabilities|**Unrestricted**
**Funds**
**£**
**1,028,944**
**(176,208)**
**852,736**
**Unrestricted**
**Funds**
**£**
**903,240**
**21,476**
**(71,980)**
**852,736**|**Restricted**
**Funds**
**£**
**630,771**
**(48,622)**
**582,149**
**Restricted**
**Funds**
**£**
**566,818**
**16,621**
**(1,290)**
**582,149**|**Total**
**Funds**
**£**
**1,659,715**
**(224,830)**
**1,434,885**
**Total**
**Funds**
**£**
**1,470,058**
**38,097**
**(73,270)**
**1,434,885**|
|---|---|---|---|
The restricted funds comprise The Martyn Davis Educational Bursary Fund.
The Martyn Davis Educational Bursary Fund will be used to provide scholarships.
## **18. Related party transactions**
The Trust is controlled by its Trustees.
The Worshipful Company of Marketors has connections with the Trust.
During the period there were no related party transactions which require disclosure.
Page 23