THE STEEL CHARITABLE TRUST Chari Commission Re istered Number 272384 REPORT OF THE TRUSTEES AND ACCOUNTS YEAR ENDED 31 JANUARY 2021 Contents Pa Legal and Administrative Information Report of the Trustees Independent Auditor's Report Statement of Financial Activities Balance Sheet Statement of Cash Flows 10 Notes to the Accounts 11
IrHE STEEL CHARITABLE TRUST istered In En land & Wales Chari Number 272384 LEGAL AND ADMINISTRATIVE INFORMATION TRUSTEES Mrs W E Bailey - Chairman (from 21 September 2020) DrMNPBriggs' Mr P Day (appointed 8 December 2020) ' Ms V S Fox (appointed 8 Dember 2020) Mr P C Lawford - (Chairman until 21 September 2020) ' MrNEWWright' Member of Investment Committee Member of Risk and Audit Committee Member of the Human Resources (HR) Committee ADMINISTRATION Ms I Stanger Trust Manager istan er steelcharitabletrust.or PRINCIPAL ADDRESS Suite 411 Jansel House Hitchin Road Luton Bedfordshire LU2 7XH INDEPENDENT AUDITOR Haysmacintyre LLP Chartered Accountants 10 Queen Street Place London EC4R 1AG PROPERTY ADVISER Knight Frank LLP 55 Baker Street London W1U8AN FINANCIAL ADVISER Robey Warshaw LLP 9 Grosvenor Square London W1K5AE SOLICITOR Farrer & Co LLP 66 Lincoln's Inn Fields London WC2A 3LH BANKERS Bank of Scotland PLC Central Banking Branch Hobs Bank of Scotland PO Box 17235 Edinburgh EH111TH Barclays Bank PLC 28 George Street Luton LU12AE WEBSITE www.steelcharitabletrust.or .uk
,THE STEEL CHARITABLE TRUST REPORT OF THE TRUSTEES YEAR ENDED 31 JANUARY 2021 The Trustees present their report with financial statements of the Trust for the year ended 31 January 2021. The financial statements are prepared under the historical cost convention as modified to include the revaluation of investments. The format of the financial statements has been presented to comply with the Charities Act 2011, FRS 102 The Financial Reporting Standard applicable in the UK and Ireland and the Statement of Recommended Practice Accounting and Reporting by Charities (second edition, effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102. HISTORY AND OBJECTIVES The Steel Charitable Trust, which was formed by the late Mr & Mrs W R Steel, is constituted under a Trust Deed dated 15 February 1976 and is a registered charity in England & Wales (number 272384). As stated in the Deed, the object of the Trust is to pay the income and, in so far as the Trustees think fit, the capital of the Trust Fund to such charitable bodies or for such other purposes as shall be exclusively charitable as the Trustees may from time to time decide. It is the policy of the Trustees to distribute the net income generated in the year by way of grants to a wide range of charitable bodies. The Trustees do not make grants to individuals, expeditions or any entity registered or incorporated outside the United Kingdom. No fundraising is undertaken. There were no policy changes in the year. GOVERNANCE AND MANAGEMENT The power of appointment of new and additional trustees is held by the present Trustees. Mr Wright was appointed by the Settlors and is eligible to serve for life or until either he resigns or becomes ineligible. Mrs Bailey had been appointed by the Trustees until 22 September 2021: in September 2020 Mr Lawford's term as Chairman came to an end and the Trustees invited Mrs Bailey to take on the Chairmanship for a three-year period which she accepted; therefore, the Trustees re-appointed Mrs Bailey as a Trustee (and as Chainnan) until 30 September 2023, at which time she may put herself forward for re-appointment. Dr Briggs and Mr Lawford were appointed by the Trustees until 30 September 2022 and 2023 respectively and may put themselves forward for re-appointment at such times. New Trustees are invited initially to serve for a 12-month probationary period. This allows both a new Trustee and the Trustees the opportunity to evaluate their decision. On completion of the 12-month period and, with the mutual agreement of both parties, the position will be confirmed for a term of seven years (which includes the 12-month probationary period), which may be renewable. New Trustees are supplied with a history of the Trust, a copy of the Trust Deed, information published by the Charity Commission outlining the responsibilities of charity Trustees, several additional papers about the Trust and how it is run and a copy of the most recent audited accounts. In Dember 2020, having undertaken a careful recruitment process, the Trustees appointed Mr Peter Day and Ms Vanessa S Fox as Trustees. The Trustees meet and consult regularly throughout the year to consider the strategic direction of the Trust and relevant matters including grant applications, investment strategy and financial accounts. In addition the Trustees may attend meetings with grant applicants and recipients. There are three standing committees. The purpose of the Investment Committee is to monitor the investments and to approve changes in the asset allocation within an agreed strategy. The purpose of the HR Committee is to advise on Complian with employment law and practice, to administer the recruitment of new Trustees, new employees andlor new external contractors as the Trustees require, and for one member of the Committee, with the Chairman, to undertake the annual appraisal of the Trust Manager. During the year the Trustees agreed to change the Risk Committee to a Risk and Audit Committee. The purpose of this Committee is to monitor the various risks to which the Trust is exposed, to manage the mitigation of such risks and to monitor and oversee the annual audit. The Trustees delegate the day-to4ay administration to the Trust Manager. The remuneration of employees and external contractors is approved by the Trustees. The Trust is a member of the Association of Charitable Foundations. The Association represents the interests of charitable foundations and grant-making trusts in the United Kingdom and provides information on good practice and changes in the law affecting charities and in particular grant-making charities. POLICIES AND PROCEDURES FOR GRANT MAKING The Trust invites applications for grants through its website. Only applications submitted on-line via the website will be considered by the Trustees. It is the policy of the Trustees to make grants to a wide range of charitable bodies, and particularly in respect of applications supporting the following five categories: Arts and Heritage Education Environment Health Social or Economic Disadvantage
rrHE STEEL CHARITABLE TRUST REPORT OF THE TRUSTEES continued YEAR ENDED 31 JANUARY 2021 POLICIES AND PROCEDURES FOR GRANT MAKING (continued) The Trustees do not make grants to individuals, to political parties, for expeditions. for the promotion of religion or to any entity registered or incorporated outside the United Kingdom. Applications from Bedfordshire generally and Luton in particular are welcome. There were no policy changes in the year. The Trustees have regard to the Charity Commission's guidan on Charity and Public Benefit. They consider that the very full information about the Trust's aims. policies and activities, in the many areas of interest that the Trust supports which are set out in this report and on its website, demonstrate the benefit to its beneficiaries, and through them to the public, that arise from carying out those aims. The Trustees generally meet in March, June, September and Dernber. At these meetings, having reviewed all applications reIVed during a previous three-month period, the Trustees approve the grants to be made to the successful applicants. Payment is then made as soon as practical after the meeting. UnsuSsfUl applicants are informed accordingly. ACTIVITIES During the year the Trust made or committed to make 93 grants totalling £1,168,785, of which grants totalling £1,120,673 were made to 88 charities registered in England & Wales (one charity received two separate grants), one grant of £25,000 was made to a charity registered in Scotland, one grant of £14,612 was made to a charity in Northern Ireland and grants totalling £8,500 were made to two other charitable organisations in the United Kingdom, eligible under the Trust's grant-making policy (such as Exempt Charities, Community Interest Companies, etc.). The Trust receives many more applications than it has funds to support. 4.9 % of the applications reiVed were successful in receiving a grant. Each successful application is investigated by the Trust Manager and by one or more of the Trustees, and is approved by the Trustees as a whole. As the Trust makes a considerable number of grants during the year, details of which may be found on our website, the Trustees rely primarily upon their beneficiaries to ensure that such grants are used for their intended purposes. However, for single or multiple grants of £20,000 or more, it is a condition that the Trustees require, within ten months of the grant being paid, a report summarising the outputs and outcomes of the grant. As reported in last yearfs Report of the Trustees, the Trustees launched in 2020 a new initiative - Luton Matters - designed to assist organisations whose work brings significant benefits to residents of Luton, Bedfordshire or improvements to the town. The first grant was awarded in April 2020 in the category of Social or Economic Disadvantage; the award in Arts and Heritage was made in June 2020. Full details of the Luton Matters scheme are available on the Trust's website under Grants. FINANCIAL REVIEW The principal source of income of the Trust is from its investment portfolio. It is the policy of the Trustees to distribute the net income, which may be summarised as follows: 2021 2020 Net income available for distribution Grants 1,267,520 (1,168,785) 1,407,892 (1,252,673) Undistributed income at 31 January £98,735 £155,219 At 31 January 2021, capital funds amounted to £50,877,727 (2020: £36,044,722) and undistributed income amounted to £98,735 (2020: £155,219)- INVESTMENT POLICY AND PERFORMANCE The aims are to continue to maximise the income available for distribution to charitable bodies while still aiming for some capital growth over the longer term. All investments held by the Trust have been made in accordan with the powers available to the Trustees. Investment income received during the year, net of fund managers, fees deducted at sour, represented a yield of 3.99 % on the value of the investments at 31 January 2021, compared with 4.98 % for the previous year. The outbreak of Coronavirus was declared a global pandemic on 11 March 2020 by the World Health Organisation. The pandemic has impacted the global financial markets and, as a result, the investment income received by the Trust was lower than anticipated. Consequently, the Trustees made the decision in June 2020 to redu the grants budget for the year. The investments held at 31 January 2020, excluding Toddington Road Properties Limited, decreased in value over the year by 11.43 %. This compared with the decrease of 10.24 % in the FfsE All-share Index over the same period. However since 31 October 2020 the investments increased by 17.51 % compared with 15.57 % in the FfsE All-share Index over the same period. As set out in Note 5 of the accounts, the land owned by Toddington Road Properties Limited (a wholly owned subsidiary company of the Trust) was sold on 11 March 2021 and the surplus arising from the sale has been gifted to the Trust. RESERVES POLICY The assets that make up the funds of the Trust are unrestricted, fully expendable and are available as the Reserve Fund of the Trust. However, the Trustees distinguish between capital and income. As indicated above, it is the policy of the Trustees to distribute the net income generated each year by way of grants, while aiming for growth over the longer term in respect of capital.
THE STEEL CHARITABLE TRUST REPORT OF THE TRUSTEES continued YEAR ENDED 31 JANUARY 2021 RISK MANAGEMENT The Trustees review the major strategic, financial and operational risks which the Trust faS and confirm that systems have been established, andlor are under review, to mitigate those risks. As the principal object of the Trust is to pay its net income to charitable bodies in the form of grants, the major risk facing the Trust is that the income received from its investments might significantly fall, thereby reducing the extent of its grant-making capacity. As a consequen, the policy of the Trustees is that the majority of the investments should be held in unit trusts and/or common investment funds, managed by well respected investment fund managers. The Trustees meet the fund managers on a regular basis. POTENTIAL RISKS AND RISK MANAGEMENT IN RELATION TO THE CORONAVIRUS PANDEMIC Operationally, there was minimal impact on the Trust. The IT systems are such that working from home could be instigated as soon as the government gave the first stay-at-home order in March 2020. Clear messaging on the website and through IT systems was used so that no break in communications with potential applicants and grant awardees was experienced. The Offi is visited occasionally for essential purposes. The Trust Manager prepared a COVID-19 contingency plan which identified essential processes/transactions that would need to be covered should either or both the Trust Manager and the Financial Controller became seriously ill. A Trustee was assigned to each process/transaction as a back-up and trained accordingly, During the first three months of the pandemic, enquiries about emergency grants and applications for new grants soared. Many grant awardees requested waivers of conditions or change of use or reported delays to projects. The Trustees took a sympathetic approach to these requests, authorising pragmatic requests and agreeing new timescales where appropriate. By the end of March 2020, the Trust Manager had set up a system whereby Trustees could consider emergency grants outside the normal application window. 24 such requests were considered over a period of five weeks and, as a result, several eXptIOnal grants were awarded within two to three weeks of the request being received. Several applicants had the 12-month gap usually required between applications waived so that they could be granted eXptIOnal awards at the June meeting. An award of £20,000 was made to the Bedfordshire and Luton Community Foundation, which led the way in providing emergency support to the local Luton community by securing grants from a number of local fvnders. In September 2020 the Trust approved a further grant of £50,000, payable over two years to the Foundation, to assist in the creation of a Post-COVID-19 Stability Fund. Approximately 500 grant applications are now received in each quarter, approximately double the rate of two years ago but, as noted above, less than 5 % of applications were SucsSfUl. TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordan with applicable law and United Kingdom Accounting Standards (United Kingdom Generally ACpted 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 Trust and of the incoming reSoUrS and application of reSoUrS 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 estimates that are reasonable and prudent; 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 Trust will continue in operation. The Trustees are responsible for keeping 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 applicable Charities (Accounts and Reports) Regulations and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Trust and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the Trust and financial information included on the Trust's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. So far as each of the Trustees is aware at the time the report is approved= there is no relevant audit information of which the Trust's auditors are unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. GENERAL DATA PROTECTION REGULATION (GDPR) The Trust's Complian with the GDPR is kept under review.
HE STEEL CHARITABLE TRUST REPORT OF THE TRUSTEES continued YEAR ENDED 31 JANUARY 2021 PLANS FOR THE FUTURE The Trustees will continue to develop the Trust by: distributing the net undistributed income to charitable organisations- making changes to the investment portfolio whenever considered appropriate- forming a Grant-making Policy Review Committee; continuing with the Luton Matters programme, making the third award (health category) in March 2021 and inviting applications for the remaining categories in the summer of 2021. INDEPENDENT AUDITORS The Trustees have re-appointed Haysmacintyre LLP, Chartered Accountants, to act as Independent Auditors to The Steel Charitable Trust. Approved by the Trustees on 21 June 2021 and signed on their behalf by:
THE STEEL CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES YEAR ENDED 31 JANUARY 2021 Opinion We have audited the financial statements of The Steel Charitable Trust for the year ended 31 January 2021 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash Flows 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 ACpted Accounting Practice). In our opinion, the financial statements= give a true and fair view of the state of the charity's affairs as at 31 January 2021 and of the charity's net movement in funds for the year then ended; have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice" and have been prepared in accordan with the requirements of the Charities Act 2011. Basis for opinion We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordan with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordan with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S 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 Trustees, use of the going conrn basis of 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 Charitys ability to continue as a going conrn 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 conrn are described in the relevant sections of this report. Other information The Trustees are responsible for the other information. The other infomation comprises the information included in the Trustees, 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. 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: adequate accounting records have not been kept by the charity; or sufficient accounting records have not been kept; or the charity financial statements are not in agreement with the accounting records and returns; or we have not received all the infonnation and explanations we require for our audit. Responsibilities of Trustees for the financial statements As explained more fully in the Trustees, responsibilities statement set out on page 4, 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 charity's ability to continue as a going COnrn, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to ase operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial ststements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assuran is a high level of assuran, 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.
THE STEEL CHARITABLE TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES - CONTINUED YEAR ENDED 31 JANUARY 2021 Auditor's responsibilities for the audit of the financial ststements (continued) Irregularities, including fraud, are InStanS of non-compliance with laws and regulations. We design prOdureS 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: Based on our understanding of the charity and the sector in which it operates, we identified that the principal risks of non- compliance with laws and regulations related to regulatory requirements of the Charity Commission, and we considered the extent to which non-complian might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and payroll taxes. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls. Audit prOdureS performed by the engagement team included= Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; Reviewing the controls and procedures of the Charity to ensure these were in pla throughout the year, including during the Covid-19 remote working period; Evaluating management's controls designed to prevent and detect irregularities; Reviewing and testing journal entries made in the year, particularly those made as part of the year end financial reporting process; Challenging assumptions and judgements made by management in their critical accounting estimates. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.or .uldauditorsres onsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charity's Trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's Trustees those matters we are required to state to them in an Auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity's Trustees as a body for our audit work, for this report, or for the opinions we have formed. LLF Haysmacintyre LLP Statutory Auditors 10 Queen Street Place London EC4R 1AG 29 June 2021 Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
THE STEEL CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 JANUARY 2021 Notes .2021 2020 INCOME FROM: Investments Other 2a) 2b) 1,190,093 6,702 1,389,317 6,422 Total Income 1,196,795 1,395,739 EXPENDITURE ON: Charitable activities 1,252,445 1,339,782 Total Expenditure 1,252,445 1,339,782 NET (LOSS)IINCOME, before net (losses)Igains on investments (55,650) 55,957 Net gains on investments 5a) 14,832,171 5,237,183 NET INCOME AND NET MOVEMENT IN FUNDS 14.776,521 5,293,140 Unrestricted funds brought forward 36,199,941 30,906,801 UNRESTRICTED FUNDS AT 31 JANUARY £50,976,462 £36,199,941 All income and expenditure in the years to 31 January 2021 and 31 January 2020 was unrestricted. The notes on pages 11 to 14 form part of these financial statements
THE STEEL CHARITABLE TRUST BALANCE SHEET AT 31 JANUARY 2021 Notes 2021 2020 FIXED ASSETS Investments 5a) 50,152,196 35,359,943 CURRENT ASSETS Cash at bank Debtors 1,079,875 12,782 998,522 8,761 TOTAL CURRENT ASSETS 1,092,657 1,007,283 LIABILITIES Creditors - Amounts falling due within one year (187,391) (105,285) NET CURRENT ASSETS 905,266 901,998 TOTAL ASSETS LESS CURRENT LIABILITIES 51,057,462 36,261,941 Creditors - Amounts falling due after more than one year (81,000) (62,000) NET ASSETS £50 976 462 £36,199,941 Representing: TRUST FUNDS Balan at 1 February Capital additions Net gains on investments 36,044,722 834 14,832,171 30,807,002 537 5,237,183 2b) 5a) Balance at 31 January 50,877,727 36,044,722 Undistributed income 98,735 155,219 UNRESTRICTED FUND BALANCES AT 31 JANUARY £50,976,462 £36,199,941 Approved by the Trustees on 21 June 2021 and signed on their behalf by: L 6cTrML The notes on pages 11 to 14 form part of these financial statements
THE STEEL CHARITABLE TRUST 10 STATEMENT OF CASH FLOWS YEAR ENDED 31 JANUARY 2021 Notes 2021 2020 Cash flows from operating activities: Net cash provided by operating activities 13 1,154,526 1,228,972 Cash flows from investing activities: Investment income and interest Purchase of investments Sale of investments 2a)&b) 5a) 5a) 1,195,961 (2,960,082) 3.000.000 1,395,202 (990,827) 1,000,000 Net cash provided by investing activities 1235,879 1,404,375 Change in cash and cash equivalents in the year 81,353 175,403 Cash and cash equivalents at 1 February 998,522 823,119 Cash and cash equivalents at 31 January £1,079,875 £998,522 The notes on pages 11 to 14 form part of these financial statements
,THE STEEL CHARITABLE TRUST 11 NOTES TO THE ACCOUNTS YEAR ENDED 31 JANUARY 2021 1 ACCOUNTING POLICIES a) Statement of complian The financial statements are prepared under the historical cost convention as modified to include the revaluation of investments. The format of the financial statements has been presented to comply with the Charities Act 2011, FRS 102 The Financial Reporting Standard applicable in the UK and Ireland and the Statement of Recommended Practi Accounting and Reporting by Chan"ties (second edition, effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102. The financial statements have been prepared to give a 'true and fair, view and 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 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) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has Sin been withdrawn. The results of the subsidiary company have not been consolidated. Further information is disclosed in Note 5 b). b) Capital Additions to capital representing realisations of interest assigned to the Trust in land-owning joint ventures are included at the values received by the Trustees. c) Investments All investments are unlisted and are recorded at cost and valued at market value or the Trustees, estimate of market value at the year end. Holdings in unit trusts and common investment funds, managed by the fund managers, are valued at the bid price. d) Income Dividend income and Income Distributions are recorded when receivable. Interest is recorded when received. e) Grants payable Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trust. Single or multi-year grants are accounted for in the year in which the recipient has a reasonable expectation that they will receive a grant and the Trustees have agrd to pay the grant without condition. fj Expenditure Expenditure is included in the Statement of Financial Activities on an accruals basis and is recognised when there is a legal or constructive obligation to pay. All costs have been directly attributed to one of the functional categories of resources expended in the Statement of Financial Activities. g) Allocation of overheads and support costs Overhead costs have been allocated between support and governan based on time and usage. Governance costs represent all costs involving the public accountability of the Trust and its Complian with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. h) Funds All of the funds of the Trust are unrestricted. These may be used in accordan with the charitable objectives at the discretion of the Trustees. i) VAT The Trust is not registered for VAT. All expenditure is therefore stated inclusive of VAT where applicable. j) Going concern Taking into account the current financial environment, including the impact of Covid-19, the Trustees have a reasonable expectation that the Trust has adequate reSoUrS to continue its activities for the foreseeable future. k) Significant judgments and sources estimation uncertainty The preparation of financial statements in Complian with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Trust's accounting policies. The key judgements that have been applied by management relate to the value of the freehold land owned by Toddington Road Properties Limited. l) Cash and cash equivalents Cash and cash equivalents includes deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities. m) Debtors and creditors Debtors and creditors are measured at the transaction price less any provision for impairment. Any losses arising from impairment are recognised as expenditure.
THE STEEL CHARITABLE TRUST 12 NOTES TO THE ACCOUNTS YEAR ENDED 31 JANUARY 2021 1 ACCOUNTING POLICIES (continued) n) Employee benefits i. Short term benefits including holiday pay are recognised as an expense in the period in which the Servi is received. ii. Contributions, based on a perntage of salary, are paid into the employee's personal pension plan. o) Operating lease Rentals paid under an operating lease are charged to income in accordance with the terms of the lease. p) Financial Instruments The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Notes 2021 2020 2 INVESTMENT INCOME a) Unlisted Bank interest 1,188,751 L 1,342 1,384,009 5,308 £1,190,093 £1,389,317 All income is from investments made in the UK. b) Other income represents a distribution of income by the wholly owned unlisted company of £5,868 (2020: £5,885) and additions to capital of £834 (2020: £537). 3 ANALYSIS OF CHARITABLE EXPENDITURE The Trust undertakes its charitable activities by grant making and awarded grants to a number of institutions in furtheran of its charitable activities. All grants were made to institutions. Grants provided in previous years Grants paid in the year Grants payable in future years Grants total Support and Governan costs 7&8 (152,250) 1,069,035 252,000 1,168,785 83,660 (50,500) 1,150,923 152,250 1,252,673 87,109 7&8 14 4a) £1252,445 £1,339,782 The grants payable in future years will be paid as and when the various conditions attaching to them have been satisfied. 4 SUPPORT AND GOVERNANCE COSTS a) Allocation of support costs and overheads - 2021 Charitable Activities Governance Total Staff costs Consultant's costs Audit Trustees, recruitment costs General expenses 6,063 4,873 6,780 2,356 1,072 24,251 19,492 30,314 24,365 6,780 2,356 19,845 18,773 £21,144 £62,516 £83,660 a) Allocation of support costs and overheads - 2020 Charitable Activities Governance Total Staff costs Consultants, costs Audit General expenses 5,821 5,728 6,480 1,653 23,285 26,154 29,106 31,882 6,480 19,641 17,988 £19 682 £67,427 £87,109
rHE STEEL CHARITABLE TRUST 13 NOTES TO THE ACCOUNTS YEAR ENDED 31 JANUARY 2021 Notes 2021 2020 4 SUPPORT AND GOVERNANCE COSTS (continued) b) Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel: Salary Pension Contributions Expenses 28,800 1,440 74 28,000 840 266 £30,314 £29,106 There was one part-time employee during the year, equivalent to 0.6 full-time employee (2020: 0.6). All employee time was involved in providing support to the governan and charitable activities of the Trust. No employee had emoluments in excess of £60,000 in either year. The Trustees did not re1ve any remuneration in the year (2020= £Nil). Included under General expenses, the expenses for travel, accommodation and certain office costs, which were reimbursed to or paid on behalf of 4 Trustees, amounted to £479 (2020: 4 Trustees £1,644). 5 INVESTMENTS a) At valuation 1 February Additions Disposals Net gains on investments 35,359,943 2,960,082 (3,000,000) 14,832,171 30,131,933 990,827 (1,000,000) 5,237,183 At valuation 31 January £50 152,196 £35,359.943 Comprising: M & G Equities Investment Fund for Charities (Charifund) Income units M & G Charibond Income shares Federated Hermes Property Unit Trust units Wholly owned unlisted company 23,696,230 725,390 1,980,576,: 23,750,000;, 24,987,499 2,737,348 2,085,096 5,550,000 5b)&c) £50,152,196 £35,359,943 All investments are made in the UK and are unlisted at 31 January 2021 and 31 January 2020. b) Wholl owned unlisted com an - Toddin ton Road Pro erties Limited The registered address of the subsidiary company is Suite 411, Jansel House, Hitchin Road, Luton, Bedfordshire, LU2 7XH' its company number is 00561005. The main asset owned by the subsidiary company is freehold land, which was let under a 99-year lease with effect from 1 March 1966 at a fixed rent. On 23 November 2020 the company entered into an Option Agreement under which the tenant had the right to purchase the freehold land at an agreed fixed price on or before 31 March 2021. On 18 December 2020 and, under the terms of the Option Agreement, the tenant assigned the Option Agreement (and the lease) to a third party. Consolidated accounts have not been prepared, as the group and charity accounts would not be materially different and the income and expenditure of the company is not material. c) Post Balance Sheet Event Under the terms of the Option Agreement, referred to in Note 5 b) above, on 11 March 2021 the company sold the land for a consideration of £24,000,000. Following the reIpt of the prOedS and the payment of professional fees incurred in connection with the sale, the company made qualifying charitable donations of the net surplus to the Trust. 6 DEBTORS Prepayments and Accrued Income Other debtors 11,844 938 7,825 936 £12,782 £8.761
.THE STEEL CHARITABLE TRUST 14 NOTES TO THE ACCOUNTS YEAR ENDED 31 JANUARY 2021 Notes 2021 2020 7 CREDITORS PAYABLE WITHIN ONE YEAR Independent Auditorfs fees Tax and Social Security Pension Contributions Other creditors Grants payable 6,780 436 264 8,911 171,000 6,480 424 210 7,921 90,250 £187,391 £105,285 8 CREDITORS PAYABLE AFTER MORE THAN ONE YEAR Grants payable £81000 £62 000 9 UNRESTRICTED INCOME AVAILABLE FOR DISTRIBUTION Investment income Income from wholly owned unlisted company 2a) 2b) 1,190,093 5,868 1,195,961 83,660 1,112,301 155,219 1,267,520 (1,168,785) 1,389,317 5,885 1,395,202 87,109 1,308,093 99,799 1,407,892 (1,252,673) Support and Governance costs 4a) Undistributed income at 1 February Distributable income available for the year Grants total Undistributed income at 31 January £98,735 £155,219 10 OPERATING LEASE COMMITMENTS At 31 January 2021, the Trust was committed to make the following estimated payments in respect of an operating lease. Rent due under Lease Within one year Within two to five years Greater than five years 6,839 27,641 1,353 6,587 1,326 £35,833 £7.913 11 FUTURE GRANT COMMITMENTS At 31 January 2021 there were contingent liabilities relating to total conditional grants of £415,400 (2020: £195,400) payable over the next six years out of income and, if neSsary, the capital of the Trust. It is considered that the income and capital of the Trust are adequate to meet these liabilities if they become unconditional. 12 RELATED PARTY TRANSACTIONS There were no related party transactions in the years ended 31 January 2021 and 2020. 13 RECONCILIATION OF NET INCOME TO NET CASH INFLOW FROM OPERATING ACTIVITIES Net (loss)/income, before net (losses)/gains on investments Investment income and interest (Increase)/decrease in debtors Increase in creditors (55,650) (1,195,961) (4,021) 101,106 55,957 (1,395,202) 9,374 100,899 2a)&b) Net cash provided by operating activities 1 154 526 1,228,972 14 GRANTS MADE A list of the grants made in the years ended 31 January 2021 and 2020 can be found on our website on the link below: htt s:l/steelcharitabletrust.or rants/ revious rantsl