The Steel Charitable Trust REPORT OF THE TRusfEES AND ACCOUNTS YEAR ENDED 31 IANUARY 2023 Contents Legal and Administrative Information............................................................... Report oftheTrustees................................................................................... Independent Auditor's Report.....................................................................7_10 Ststement of Financial Activities................................................... ................. li Balance Sheet..-...................................................................... ........................ 12 Statement of Cash Flows................................................................................. 13 Notes to the Account5....-..........................................................................14-20
The Steel ChArit3ble Trust ND ADM RATIVE IN TIO REGULATOR Registered with The Charity Commission in England & Wale5 (Charity Number 2723841 TRUSTEES Mrsw E Bailey- Chairman Dr M N P Brig8S MrPDay MsVSFox Mr P C Lawfordl. 211 from 1610V10231 Mr N E W Wright l. 111 umil 1610V20231 ADMINISTRA TION M51 Stanger Trust Manager info steelcharitabletrust.or INVEMENT MANAGEMENT {cont} Federated Hermes Investment Management 150 Cheapside London EC2V 6ET PRINCIPAL ADDRESS Suite 411 Jansel House Hitchin Road Luton Bedfordshire LU2 7XH Liontrust Asset Management PLC 2 Savoy Court London WC2R OEZ M&G Group plc 10 Fenchvrch Street London EC3M SAG WEBSITE www.steelcharitabletrust.or INDEPENDENT AUDITOR UHY Kent LLP t/a U HY Hacker Young Chartered Accountants Thames House Roman Square Sittingbourne Kent MEIO 4BJ BANKERS Bank of Scotland PLC Central Banking Branch Hobs Bank of Scotland PO Box 17235 Edinburgh EHII ITH INVESTMENT MANAGEMENT BlackRock Investment Management IUK) Limited 12 Throgmorton Avenue London Barclays Bank PLC 28 George Street Luton LUI 2AE EC2N 20L l Member of Investment Ctxnmittee 3 Member of the HurnaD Resource5 IHRI Cfxnmittee 2 MembeFof Risk and Audit C(wnmiitee
The Steel Chaiitable TIu5t REPORT OF THE TRUSTEES YEAR ENDED 31 IANUARY 2023 The Trustees present their report with financial statements of The Steel Charitable Trust for the year ended 31 January 2023. The financial statements are prepared under the historical cost convention as modified to include the revaluation of investments. The format of the financlal statements has been presented to complv with the Charities Act 2011, FRS 102 ljanuary 20221 The Financial Reporting Standard applicable in the U K and Republic of Ireland and the Statement of Recommended Prartice Accounting and Reporting by Charities (second edition. effective l January 20191. The Trust is a Public Benefit Entity as defined by FRS 102. Hlstory and Oblectlves The Steel Charitable Trust, which was formed by the late Mr & Mrs W R Steel, is constituted under a Trust Deed dated IS February 1976 and is a re8lStered charity in England & Wales (number 2723841. 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. Governance and Management The power of appointment of new and additional Trustee5 is held by the present Trustees. Mr Wright was appointed by the Settlors and is eligible to serve for life or until he either resigns or becomes ineligible. Trustees appointed Mrs 8ailey as 3 Trustee, and as Chairman, for a term expiring on 30 September 2023. The term5 of office of Mr Lawford, Ms Fox, Mr Day and Dr Bri885 expire on 30 September 2023, 31 Oecember 2027, 31 December 2027 and 30 September 2029 respectively. Trustees may put themselves forward for reappolntment when thelr term expires. When seeking new Trustees, the Trustees have placed advertisements on the Trusys website, in national newspapers, specialist publication5 and on Linkedln: a candidate shortlist has been drawn up, followed by a series of interviews. New Trustee5 are Invited initially to serve for a 12-month probationary period. This gives both a new Trustee and the Trustee5 the opportunity to evaluate their decision. On completion of the 12- month period, and with the mutual agreement of both parties, the position may be confirmed for a term of seven years (which includes the 12-month probationary periodl, 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 governed and managed, and a copy of the most recent Trustees, annual report and audited accounts, Initial training for new Trustees is delivered by the Chairman and the Trust Manager. The Trustees meet and consult regularly throvghout the year to review the governance and strategic direction of the Trust and other matters including grant applications, Investment strategy and financial account5. In addition, the Trustees may attend meetings with grant applicants and recipients or delegate such duties to the Trust Manager. 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 Comtnittee is to advise on compliance with employment law and practice. to administer the rècruitment of new Trustees, new employees and/or new external contractors as the Trustees require, and for one member of the
The Steel Charitable Trust REPORT OF THE TRUSTEES continued Governance and Man enent continued Committee, with the Chairman, to undertake the annual appraisal of the Trust Manager. The purpose of the Risk and Audit Committee is to monitor the various risks to which the Trust is, or might be, exposed, to manage the mitigation of such risks and to monitor and oversee the annual audit. The Trustees delegate the day-to-day administration to the Trust Manager. The frust engages a 5elf-employed Financial Controller, who reports to the Trust Man38er. The remuneration of employees and external contractors is approvÈd by the Trustees. The Trust is a member of the Association of Charitable Foundations IACF), which represents the interests of charitable foundations and grant-making trusts in the United Kingdom. The ACF provides information on good practice and changes in the law affectin8 charities. in particular grant-making charities, and trainin8 for Trustees and charity mana8ement. Pollcies and Procedures for Grant-maklng The Trust invites applications from all parts of the Unlted Kingdom for grants through its website. Onlv applications submitted online via the website will be considered by the Trustees. Applications from Bedfordshire generally and Luton in particular are especially welcome. It is the policy of the Trustees to make grants to a wide range of charitable bodies, and partlcularly in respect of applications supporting the following five categories.. Arts and Heritage l Education l Environment l Health I Social or Economic Disadvantage The definition of the Environment category was widened in April 2022 to include measures to improve the applicant or8anisation's carbon footprint,. the applicant organisation's principal attivity must still be in the realm of one of the five funding categories. Otherwise, the Trust's grant-making policy remains unchanged. The Trust's grant-making policies, eligibility criteria and application processes are clearly stated on its website. The Trustees have regard to the Charity Commission's guidance on Charity and Public Benefit. They consider that the very full information about the frust'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 throu8h them to the public. that arise from carrying out those aims. The Trustees generally meet in March, June. September and December. Ahead of these meetin85, Trustees review all applications received during the previous three-month period and a shortlist of grant recommendations is created. Shortli5ted applications will have been Investigated by one or more of the Trustees,. additional administrative checks are made by the Trust Manager. At the Trustees, meetings, the shortlist is discussed and grant award decisions are taken. Payments of approved grants to successful applicants Bre generally made as soon as practical after the meeting. Unsuccessful applicants are informed accordinsly.
ThÈ Steel Charitable T[$t Actlvlties During the year the Trust made or committed to make 100 grants totalling £1,500,000, of which 92 grants totalling £1,361,766 were made to charities registered in England & Wales. three grants totalling £51,349 were made to charities registered in Scotland, two grants totalling £31,885 was made to charities registered in Northern Ireland and three grants totalling £55.( were made to other charitable organisations in the United Kingdom, eligible under the Trust's 8rant-making policy. The Trust receive5 many more applications than it has funds to support. Only 5% of the appllcations received in 2022-23 were successful in receivin8 a grant. The Trust's website lists all the grants awarded in the turrent year and since 2019. All grant recipients are required to submit a report to the Trust, summarising the outputs, outcomes, successes and challenges of the work being funded, within a year of receiving the grant. Lutorn Matters, the initiative deslgned by the Trust to a551St organisations whose work brings significant benefits to the residents of Luton or improvements to the town, has continued and progressed as planned since its launch in 2020. Luton Matters grants have now been awarded in 311 five ¢ate8ories of the Trust's grant-making, the final two in the categories of Education and of Environment havin8 been awarded in March 2022. The Trustees are pleased with the Luton Matters pro8ramme to date and envisage it continuing for the foreseeable future. Full information about Luton Matters may be found on the Trust's website. The Trust's relationship with the Bedfordshire and Luton Community Foundation IBLCFI contlnues and a 8rant of £40,000 was awarded during the year. The Trust Manager regularly attends the Bedfordshire Funders Network meetings, facilitated by the BLCF. No fundraisin8 is undertaken, Flnanclal Revfiew The principal source of income of the Trust is from its investment portfolio. 2023 2022 Investment and other Income Funds paid to Joint Venture Overhead costs Net income Grants Inetl Reduction bn unrestricted funds 1.284,657 12.829) {89.8891 1.191,939 (1,5Tr).otKJI £ 1308.061) 1.101,429 (89,3621 1.012,067 11,184,959) 1172.8921 Overhead costs do not include investment fund managers, costs as these are deducted at source either from capital or prior to income distributions or both. Further information regarding investment managers, costs is shown in Note Sc to the Accounts. The income, overhead costs and total grants represent 2.48%, 0.17% and 2.89% of the unrestricted funds at the beginning of the year respectively12022-. 2.16%, 0. 18% and 2.32%1. On 31 January 2023, total unrestricted funds amounted 10 £48,159.316 {2022.' E51,857,4301.
The Steel Charitable Trust Investment Poliry and Perfomance All investments held by the Trust have beeTr made in accordance with the powers available to the Trustees. The current inwestment policy is to follow 3 total return 5tr3tegy, the objective of which is to sustain the long- term real value of the investment fund, and hence of the real value of grants. Therefore, the majority of the portfolio is invested in global. broadly diversified funds, a consequence of which is that income may be lower than in the past. The Trust does not impose specific ethical investment constraints over and above those already contained within the investment managers, own ethical and socially responsible investment policies. The investments held on 31 January 2022 amounted to £50,535,482 and the investments held on 31 January 2023 amounted to £47,128,597. This represented a decrease in the value of the portfolio of 6.74% during the vear, compared with a rise in the FTSE All Share index of 1.52% and a fall in the MSCI World index of 8.96% The Trust's portfolio was inevitably affected by the weakness in almost all major asset classes and markets during the year. Trustees meet all the Trust's investment managers at least annually. Trustees remaln satisf led with the composition and diversification of the portfolio. Reserves Pollcy On 31 January 2023, the Trust had total funds of £48,159,31612022'. £51,857,430). The Trust's reserves policy is to ensure it maintains adequate funds to meet its commitments and to hold funds to produce income to contribute towards the payment of future grants. The Tfust does not currently hold any restricted funds and therefore all funds are treated as unrestricted reserves. Risk Management The Trustees regularly review the major strategic, financial and operational risks which the Trust faces and confirm that Systems have been established. and/or are under review, to mitl8ate those risks. As the object of the Trust is to pay 8rants to charitable bodies, the major risk facing the Trust Ss that the performance of its investments, in the form of income and changes in capital values, reduces the extent of its grant-making capacity. This risk is mitigated through the Trusys Investment policy. The COVID-19 contlngency plan, which had been prepared by the Trust Manager in March 2020, continued to be in place during 2022-23. It identifies essential processes/transa¢tions that would need to be covered should either or both the Trust Manager and the Financial Controller become seriously ill. A Trustee was assigned to each processltransaction as a back-up and trained accordingly. Trustees, Responslbllitles The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). The law appllcable to charities in England and Wales requires the Trustees to prepare financial statements for each f inancial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that period. In preparing these financial statements, the Trustees are required to..
The Steel ChaFlthble Ti¥si REPORT OF THE TRUSTEES Trustee5' Res continued continued select suitable accounting policies and apply them consistently: • observe the methods and principles in the Charities SORP: makejudgements and estimates that are reasonable and prudent,. state whether applicable accountin8 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 ur)less it is inappropriate to presume that the Trust will continue in operation. The Trustees are responsible for keepin8 proper 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 Charitie5 IAccounts and Reports) Regulations and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Trust and hence for takin6 reasonable steps for the prevention and detection of fraud and other irregvlarlties. The Trustees are responslble for the maintenance and integrity of the Trust and financial information included on the Trust's website. Legislation in the United Kin8dom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. So far a5 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 311 steps that they ought to have taken to make themselves aware of any relevant audit inforrnation and to establish that the auditors are aware of that information. Plans for the Future The Trustees will continue the activities and the other matters outlined in this Report, and will keep them under revlew. Independent Audltors The Trustees re-appointed UHY Kent LLP tla UHY Hacker Youn& Chartered Accountants a5 Independent Auditors to The Steel Charitable Trust. Approved by the Trustees on 12 June 2023 and signed on their behalf by.. Wendy E 8ailey Chairrllan
The Steel Ch.Iritable Trust INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE STEEL CHARITABLE TRU YEAR ENDED 31 IANUARY 2023 Opinlon We have audited the financial statements of The Steel Charitable Trust Ithe Trust'l for the year ended 31 January 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash f lows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kir)gdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, Iunited Kingdom Generally Accepted Accounting Practice). The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards appllcable in the UK and Republic of Ireland IFRS 1021 in preference to the Accountin8 and Reportin8 by Charities.. Statement of Recommended Practice issued on l April 2CM)5 which is referred to in the extant regulations but has been withdrawn. This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reportin8 periods beginnin8 on or after I January 2015. In our opinion the financial statements.. give a true and fair view of the state of the Trust's affairs as at 31 January 2023 and of it5 Incoming resources and application of resources for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accountlng Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basls for opinion We conducted our audlt in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 relatlng to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on tkTe work we have performed, we have not identified any rnateTial uncertainties relating to events or ¢onditionE that. individu3lly or rDllprtivply. may cast significant doubt on the Trust's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
The Steel Charilable Tiust INDEPENDENT AUDITOR'S REPORT continued Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant section5 of this report. Other infomatlon The other information comprises the information included in the Annual report other than the financial statements and our Auditor5, report thereon. The 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 expre55 any form of a55urance 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 mlsstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there is a material misstatement of this other informatlon, we are required to report that fact. We have nothing to report in this regard. Matters on which we are requlred to report by exceptlon We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the Trustees, report is inconsistent in any material respect with the financial statements,. or sufficient accounting records have not been kept,. or the financial statements are not in a8reement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Responslbllltles of Trustees As explained more fully in the Trustees, responsibilities staternent, the Trustees are responsible for the preparation of the financial statements which give a true and fair view. and for such internal control as the Trustees determlne is necessary to enable the preparation of financial statements that are free f rom material misstatement, whether due to fraud or error. In preparin8 the financial statements. the Trustees are responslble for assessing the Trust's ability to continue 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. Auditors, responslbllltles for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or havin8 effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements a5 a whole are free from material misst3tement, whether due to fraud or error, and to issue an Auditors, report that includes our opinion. Reasonable assurance is a high level of 3ssur3nce, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement whpn it @yi£t£. Mi&EtatÈment. trom fraud or error and are considered material if. individu311y or in the aggregate, can &ri2e
The Steel Charitable Trust INDEPENDENT AUDITOR'S REPORT they could reasonably be expected to influence the economic decisions of users taken on the basis of these fin3nci31 statements. continued Irregularities, includlng fraud, are instances of non-compliance with laws and reguSations. We design procedures in line with our responsibilities, outlined above, to detect material misstatement5 in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, includin8 fraud is detailed below.. How the oudit was considered copoble of deterting irregulorities includingfroud.. Our approach to identifying and assessin8 the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: we identified the laws and regulations applicable to the Trust throu8h discussions with management, and from our commerclal knowledge and experience of the sector., we focused on specific laws and re8ulations which we considered may have a direct material effect on the accounts or the operations of the Trust. including the Charities Act 2011,. we assessed the extent of compliance with the laws and regulations identified above through makin8 enquiries of mana8ement and inspecting correspondence. and identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the Tru5Ys accounts to material misstatement, including obtaining an understandlng of how fraud might occur, by: rnaking enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alle8ed fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws arid regulations. To address the risk of fraud through management bias and override of tontrols, we.. performed analytical procedures to identify any unusual or unexpected relationships,. tested journal entries to identify unusual transactions- assessed whether judgements and assumptions made in determining the accountin8 estlmates set out in the accounting policies were indicative of potential bias- and investl8ated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statemer)t disclosures to underlyin8 SUPPOrting documentation,. readin8 minutes of meetings of those charged ivith governance- and enquiring of management and representatives of Trustees as to actual and potentlal litigation and claims. A fiirthpr Ap<r.rirJtion of our responsibilitÉes for the audit of the financial statements is located on the Financial Reportin8 Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our Auditors, report.
The Steel Charttable Trust INDEPENDENT AUDITOR'S REPORT continued Use of our report This report is made solely to the Trust's Trustees, as a body. in accordance with Part 4 of the Charities IAccounts and Reports) Regulations 2(M)8. Our audit work has been undertaken so that we might state to the Trust's Trustees those matters we are required to state to them in an Auditors, 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 Trust and its Trustees, as a body, for our audit work. for this report, or for the opinions we have formed. UHY Kent LLP Chartered Accountants Statutory Auditors Thames House Roman Square Sittingbourne Kent MEIO 4BJ Date. IIL JwrxL Lots UHY Kent LLP Is eli8ible io act as auditors in terms of settion 1212 of ihe Companies Att 2W6. io
The ST ATEMENT OF FINA'c[AL ACTIVITIES yL Ell)ED 31 JANUARY 2023 Inco ratin an IDeoJne and Ei endltsre Account Notes 2023 22 IPICOME FROM: Investments Donations from Toddington Road Properfies Limited 3a) 6b) 3b) 1.283.592 1.100.343 23.753.214 1,086 1.065 Total locome 1284 657 24,854,643 EXPENDITURF. ON: Joint V¢nture Charitabl¢ activitics 2b) 2.829 1589.889 1.274.321 To¢AI Expendlthre 1592,718 1,274.321 NET (EXPENDITUREVINCOME FOR THE YEAR (308.061) 23.580,322 Wriie off of Toddington Road Propertics Limit¢d Net (10&8esygains on all InvestsnentQthcT investtnents 6a) 6a) (23.745,000) 1.045,646 (3?90.053) IYET (EXPENDITURE)IINCOME AND NET MOVEMENT IN FUNDS (3.698.114) 88Q,968 Unrestiicted funds brought forward 51,857.430 50.976,462 UNRESTRICTED FUNDS AT 31 JANUARY £48,159J16 £51.857,430 All income and expenditure in the years to 31 January 2023 and 31 January 2022 w&s unrestrbcted. The noies on page5 14 to 20 form part of these fuwicial statements.
The Charitable Trust BALANCE SHEET AT 31 JANUARY 2023 Note 2023 2022 FIXED ASSETS Invcstmenis 6a) 47.128.597 50,535,482 CURRENT ASSETS Cash at bank Debtors 13 843.347 318.657 1,496.718 15.138 TiyfAL CURRENT ASSETS 1,162.004 ,511,856 LIABILlEs Creditors - Amounts falling due within one year (54285) (124,408) NET CURRENT ASSETS 1107 719 1,387.448 TOTAL ASSETS LESS CURRENT LIABILITIES 48236,316 51,922.930 Crcditors- Arnounts falling due after mor¢ than on¢ y (77,0(N)) (65,500) NET ASSETS £48,159 16 £51,857,430 R¢prentIng'. TOTAL UNRESTRICTED TRUST FUNDS £48,159JiO £51057830 The notes on pages 14 to 20 forni part of th&se fmancial sloiements. Approved by the TTUStees on 12 June 2023 and 5igDed on their behalf by.. 12
ThF Steel STATEMENT OF CASH FLOWS YEAR EP4DED 31 JANUARY 2023 Notes 202 2022 Casb flows froTn operating activities: Net cash provided byl(uscd in) owaung aciiviticts 12 1953.795 22.399,140 Cash flows from Investin% #ctividtt: Investsnent income and interest receivable PurLhas¢ of invcsunents Salc of inNestments Repayment of share ¢apital of Toddingion Road Propcrti¢s Limited 38)&12 6a) 6a) 1.283.592 16.832 1,100,343 (42,087,640) 19.000.000 6a) Net cash provided by investing activities 1.31M).424 (21.982.297 Change in cash and cLsh equivalents in the year 14 (653.371) 416.843 Cash and cash equivalents ai l Fcbruary 1,496,718 1,079.875 Cash and c&sh equivalents at 31 January 13 £843a47 £1,496,718 The notes on pages 14 to 20 fonn part of these financial staicm¢nts. 13
Steel NOTES TO THE ACCOUNTS YEAR ENDED 31 JANUARY2023 I GENERAL INFORMATION The Steèl Ch3ritable Trust is a charrty registered with the Charity Commlssion for England and Wales. re8lstratlon nurnber 272384. The Trust's prrncipal address is Sulte 411, Jansel House, Hrtchin Road. Luton. Bedfordshire, LU2 7XH. 2 ACCOUNTING POLicfES al Basi5 of preparation of accounts The financial statements are prep#red under the historlcal cost conventlon with items ietO8n15ed at cost or transactlon value unless otheNise stated in the relevant notelsl to these financial statements. The financial statements have been prepared In accordance wlth the Charities SORP IFRS 1021 (second edition) Accountin8 and Reporting by Charities.. Statement of Recommended Practlce appllcable to charities preparlng theii actounts in accordance wlth the Flnanclal Reporting Standard In the UK and Repvblic of Ireland leffectiv* I january 20191 The Flnanclal Reportin8 Standard in the UK and Republic of Ireland IFRS 1021 (January 20221 and the Chartlles Act 2011. The Trust is a Public 8eneflt Entlty as defined by FRS 102. The financlal statements have been prepared to glvè a 'true and fair vlew, and have departed from the Charltles (Accounts and Reports) Regulations 2008 onty to the extent Tequlred to provlde a 'true and falr vlew, Thls departure ha5 Involved following Accountin8 and Reportin8 by Charities preparln8 thelr accounts in accordance with the Financlal Reporting Standard appllcable in the UK and Republlc of Ireland IFRS 1021 rather than the Account+n8 and Reporting bv Charltles: Statement of Recommended Practice effertive from l April 2005 which has since been wlthdrawn. bl Capital Addbtlons to capital represent the distributions received from Interests in land-ownln8 joint ventures, whSch 5ntere5ts had been assigned to the Trust by one of the Settlors, and are Included at the values received by the Trustees. cl Investments All investments, managed by external fund managers. are unllsted and are recorded at cost and valued at the year end at prices published by the relevant fijnd managers. dl Income In the past, income had been Consistent recorded when Tecefved. Thls pollry has en amended to:_ 51 Intome di5trlbutlons trom Investments are recorded on an accruals basls. 111 Interest Is recorded when recelved. The Trustees have amended the poliry of reco8nislng Income from Investments In order to comply wlth the SORP (second edition, effective I january 20191 and in accordance with the UK GAAP. In dolng so. the Trustees are aware that an element of double-counting arises in that certain sums may appear both wlthln the value of Investments and In Debtors on the 801ance Sheet. Trustees believe that the effect of thls is not materially misleading to the user of these account5. The Trust does not pay investrnent management fees directly to any of its appointed fund managers. However, the fund managers do make char8es for managing tt5 funds by either deducting fees from Sncome distributions when made, or from capltal. or from Income dlstributions and the capltal fund. To be consistent, investment income is reported net of fees in these statutory accounts. 14
TOIHEACCOUNTS Z ACCOIJNntlQ POUClESca el Grants payable Grants payable are payments made to third parties in furtherance of the charitable objectives of the Trust. Single of multi-year grants are accounted for In the year bn which the reciplent has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant wfthout condition. fl Expenditure Expenditure is Intluded in the Ststement of Financial Arttvltles on an accruals basis and is reco8nised when there is a legal or constructive obligation to pay. All cost5 have been directly attributed to one of the functlonal categorfes of resources expended in the Statement of Financial Artivities. gl Allocatlon of overheads and support Costs Overhead costs have been allocated between support and governance based on tlme and usage. Governance costs represent all costs involving the publlc accovntabiltty Of the Twst and its compliance with regulation and good practice. These costs Include c05ts related io statutory audlt and leaal fees together with an apportionmeftt of overhead and support costs. h) Funds All of the funds of the Trust are unrestrirted. These may be used in accordance wlth the charltable oblectlves at the discretlon of the Trustees. 11 VAT Thè Trust Is not re815tered for VAT. All expendlture Is therefore st*ed in¢luslve of VAT where appllcable. 11 Golng concern Taklng Inlo account the current linanclal envlronment, the Trustees have a rea50nablè expectatSon that the Trust has dequate resources to continue its actiYSties lor the foreseeable future. kl Significant lud8ement5 and sourtes of estimation untertainty The preparation of linancial ststement5 in compllance wlth FRS 102 requlres the use of certain CTltical accountln8 estlmates. It also requlres management to exerc15e judgement In applying the Trust's accountlng pollcle5. 11 Cash and cash equfvalents Cash and cash equlvalents include5 deposlts held at banks, other short-tem) hl8hly Ilquid investments with orl8lnal maturltle5 of three month5 or less and bank overdrafts. Bank overdrafts. when appllcable, are shown wlthln current ml Debtors and credltor5 Debtors and creditors are measured at the transaction price less any provision for Impalrment. Any losse5 arlslng from irnpalrment are recognised as expenditLbre. n) Employee beneflts l. Short term benelits Including holiday pay are recognised as an expense in the period in which the seThice is recelved. 15. Contributions, based on a percentage of salary, are paid Into the employee's personal penslon plan. ol Operatlng lease Rent31s paid under an operatine lease are ¢haryed to income In accordan with the terrns of the lease. pl Flnancial Instrurnents The Trust only has fsnanclal assets and finandal Ilablllties of a ktnd that qualify as bh51t financial instruments. Bas1¢ financial instruments are initially recogriised at tfansartion value and subsequently measured at their settlement value. 15
Steel 20 3 INVEsTmEP INCOME al Unlisted investment income from.. BlackRts£k ishares Developed World Fosstl Fuel knened Index Fund IUKI D Inc Federated Hermes Property Unit Trust Uontrust Sustainable Future Managed Fund Class 2 Inc M & G Charibond Charities Fixed Interest Fvnd Icharibondl M & G EqultSes Investment Fund For Charitles Icharrfundl 253.574 264.231 227.974 83.350 450.816 1,279.945 3,647 1,603 128.218 27,275 941,093 1.098,189 2.154 Bank Interest £1.283,592 £1,100.343 bl other Income represents addition5 to capltal of £1.06512022.. £1,086). 4 ANALYSIS OF CHARrrABLE LYPENDITURE The Trust undertake51ts ch4rltable acf6vWes throu8h the Jwèrd of 8rants to a number of Instltutlons. 8&9 Grants provlded in prevlou5 years Grants paid in the year Grants payable In fvture years Grants total Grants cancelled Support and Governancè Costs 1153,6631 1,537.413 116.250 1,5LK).(X 1252,0001 1.295,296 153,663 1.196,959 I12,OCl 89,362 8&9 17 Sal 89.889 £1,589.889 £1,274,321 The grants payable In fvture yèars w511 be pald as and when the varlous condrtions attathin8 to them have been satlsfied. S SUPPORT AND GOVERNANCE COSTS al Allocatlon of suppNt Costs and overheads- 2023 T¢)tsl Staff Consultant Auditor's remuneration- statutory audlt Genera 6.508 26,283 20.737 32,791 25.921 6,606 3,122 21,449 24,571 £21.420 £68.469 £89.889 le
Tbt Steel 2023 2022 al AllocatSon of support costs and overhead5- 2022 Charitable Acthiltles Staff Consuttants Auditor's remuner8tion- statutory audrt General 6.214 5,933 25,035 22,323 31.249 28,256 6,OOD 23.857 2.287 21,570 £20,434 £68,928 £89,362 bl Ana$15 of staff costs, Trusteè remuneration artd expenses. and the c05t ol key management personnel: Salary Benef5 Nation31 Insurance ContrSbution5 Pen51on Contributlons Tralnin8 Expenses 30.240 390 56 1.512 250 343 29,3 1.465 304 £32,791 £31.249 There was one part-tlme employee durln8 the year. equivalent to 0.6 full-time employee12022.' 0.61. All employee tlme was involved in providlng support to the governance and charitable actmtles of the Trust. No employee had total salartes and beneffts In excess of £60,LNJ) in either year. The Trustees dld not receive any remuneraiion In the year12022: ENill. Induded under General expenses, the expense5 for travel and tertain officè costs, which were reimbursèd to or pald on behalf of 6 Trustees, amounted to £1.40212022'. £5781. cl Investment Fund Mona8*rs' Costs Not all of the investmènt fund managers Prde explicit information about the value of investmènt mana8ement cost5 charged during the year. Based on the Informolion provided by the investment fund managers, the Trust has calculated Its best estimate of total investment management costs for the year ended 31 January 2023 to be £232,20512022'. £191,766). whlch represents 0.49% of the investmtrnt portfolio at 31 January 2023 12022: 0.37%). These EOSt5 are not Included In the above figures. 17
Tfvr Steel 20 2022 6 INVESTMENT5 al V31uation at i February (Redurtions on equalisationsllAdditions Disposals Repayment of share Capital ofToddln6ton Road PropertJe5 Ltd wrfjtff ofToddlngton Road Propertles Lrmited Net1105sesllgalns on all in¥estrnentslother investments 50,535.482 116,8321 50,152,196 42,087.640 119,CK)O,(wI (s.) I23,745,oI 1,045,646 6bl 13.390.053) Valuatlon at 31 January £47.128,597 £50,535.482 Cornprising". 8lackRock Ishares Developed World Fossil Fuel Screened Index Fund IUKI D Inc Federated Hermes Propèrty Unlt Trust Uontrust Su5talnable Future Managed Fund Class 2 Inc M & G Charibond Charities Fixed Interest Fund Icharibondl M & G Equitles Investment Fund For Charities Ichartfundl 12,246,058 5,493,520 19,374,290 2.903.162 7.111,567 12,577,817 6,280,535 21,173.080 3,126.642 7,377,408 £47.128,597 All Investments are made in the UK and are un16sted at 31 January 2023 and 31 January 2022. bl Toddlngton Road Prtspertles Llmittd The reglstered address of ToddInon Road Propertles iimtted I'the Company'l. whlch was wholly owned by the Trust, wa5 Suite 411, Jansel House, Hitchin Road. Luton, Bedlordshlre, LU2 7XH,' its ¢ompany number was 00561005. £50,535.48Z On 11 March 2021, the company sold Its freehold land for a consideration of £24,000.OQO. Followin8 recelpt of the proceeds and the payment of professional fees incurred In connertlon with the sale, the company made three quallfylng charltable donatlon5 to the Tiusi totalllng £23,753,214. In June 2021. the share capital was rnpaid and on 4 january 2022, the ctsmpany was officially dissolved. 7 DEBTORS Prepayments and AccruÈd Income Other debtors 317,715 14,199 939 £318,657 £15,138 18
Steel TO 2023 2022 8 CREDITORS PAYABLE WITHIN ONE YEAR Grants payable Accruals and deferred income Tax and Social Security Penslon Contilbutlons Other credltors 39.250 88.163 27.138 441 269 8,397 495 277 7,597 E54.285 £124.408 9 CREDITORS PAYABLE AFTER MORE THAN ONE YEAR Grants payable £65.500 10 OPERATING LEASE COMMITMENTS At 31 January 2022. the Trust was committed tts make the followlng èstlmated payment5 in Tespect of an operatlng lease. Rent due under Lease: Not later than one year Later than one year and not later than five years Laterthan five years 7,270 17,142 6.97S 23,475 £24A12 £30,450 11 FUTURE GRANT COMMITMENTS At 31 january 2023 there were ¢ontln8ent Ilabllltle5 r*latln8 to conditional grants of £458,12812022: £452,000) payable over the next six years QLrt ol income and, If necessary, the ¢apltal of the Trust. It Is considered that the income and capltal of the Trust Hre adequate to meet tht Ilabilities if they become unconditional. 12 RECONCILIATION OF NET INCOME TO NEf CASH FLOW FROM OPERATING AcvlES Net lexpendbturtlllncome fry the year Adjustments for.. Investment Income and interest receivable lInc8) in debtors IDecreasel In creditors 1308,0611 23,580,322 3a} 11.283,5921 1303.5191 158.6231 11,100,343) 12,3561 178.483 Net cash pmwded byllused inl operatlng activfties £11.953,7951 É22.399.140 19
The 2023 20ZZ 13 ANAiY515 OF CASH AND CASH EQUIVALEKrs Cash at bank 843,347 1,496.718 £043.347 £1.496.718 14 ANALY51S OF CHANGES IN NET DEBT Cash at i February Cash flows 1,496,718 1653,3711 1,079.875 416,843 Cash at 31 January £843.347 £1.496,718 15 FINANCIAL INSTRUMENTS Flnanclal assets-. Measured at falr value throuBh Income and expenditure 47,128,597 50,535,482 £47,128.597 £50,535.482 Flnanclal instruments measured at fair value thiou8h Income and expenditure comprise of unlisted Investments. All Investments are carrled at their fair value. Investments In bonds, equltles, propety and alternatSve investments arè all managed by independent Investment institutrons and traded in marke15 around the world. The ba515 of falr value is the eqUalent of market value, uslng bld prfrce. Asset soles and purch•ses are recognlsed at th* date of trade at thelr transactlon value. The significance of ftnanclal instrument5 to the ongolng financial sustaiftabillty of the Trust Is ¢onslderèd In the Flnanclal Revlew and Investmenl Pollcy and Perforniance secttons of the Trustees, Report. The main rlsk to the Trust from financial instruments lies in the combination of uncertaSn Investment market5 and volatility in yield. The investment In5tltutions manage these invesiment risks by retaining expert advisers and operatln8 an investment pollcy that provldes for a high degree of dlverslflcation of holdings within investment assets that are quoted on global markets. The Trust does not make use of derivatives and similar complex Nnanclal Instrument5 35 It takes the view that investments are held for their lon8er-terni totsl return. 16 RELATEO PARTY TRANSAclloNS There were no related party transartions In the years ended 31 January 2023 and 2022. 17 GRANTS MADE A list of the 8rants madè in the yÈ3rs ended 31 January 2023 and 2022 can be found on the Twst's website.. st elcharit bletru -or revhWS rants 20