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2021-12-31-accounts

Charity number: 00275487

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 7
Independent auditors' report on the financial statements 8 - 11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 25

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees D J Banister
E D Banister
E M Banister
E F Cairns
L P Glaister
Charity registered
number
00275487
Principal office
Tees Law
Tees House
95 London Road
Bishop's Stortford
Hertfordshire
CM23 3GW
Independent auditors
Price Bailey LLP
Chartered Accountants
Causeway House
1 Dane Street
Bishop's Stortford
Hertfordshire
CM23 3BT
Solicitors
Tees Law
Tees House
95 London Road
Bishop’s Stortford
Hertfordshire
CM23 3GW

Page 1

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report together with the audited financial statements for the 1 January 2021 to 31 December 2021.

CONSTITUTION

The unincorporated charitable trust is governed by the trust deed dated 19 December 1977. The objects of the trust are widely charitable, although the Trustees have determined to utilise the income and capital of the trust fund towards the relief of poverty, supporting educational projects and the promotion of peace.

METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

The Trustees named below were appointed by the trust deed dated 19 December 1977 or by deeds of appointment dated 27 August 1998, 12 May 2009, 21 February 2013, 29 April 2015 and 30 June 2019.

David John Banister Elizabeth Banister Letitia Pamela Campbell Glaister Eleanor Marianne Banister Edmund Frederick Cairns

POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

The appointment of any new trustee is by invitation of the existing trustees.

New trustees would be provided with a copy of the trust deed and have a meeting with the existing trustees to explain the aims and objectives of the trust.

ORGANISATIONAL STRUCTURE AND DECISION MAKING

The Allan & Nesta Ferguson Charitable Trust is managed by the Trustees, who have delegated day to day administration to Tees (solicitors), of Tees House 95 London Road, Bishop’s Stortford, Hertfordshire.

The Trustees have appointed Price Bailey LLP of Causeway House, 1 Dane Street, Bishop’s Stortford, Hertfordshire as auditors.

The Trustees receive investment advice on a portfolio review basis from Ravenscroft (UK) Limited of Tees House, 95 London Road, Bishop’s Stortford, Hertfordshire.

The Trustees have a bank account with Barclays Bank, 1 Churchill Place, Canary Wharf, London, E14 5HP.

RISK MANAGEMENT

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity. The trustees are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

The Trustees are bound by the governing deed and operate in accordance with the trust’s conflict of interest policy.

The trust operates in accordance with it’s risk management policy which is currently being updated and it's safeguarding policy which was most recently updated on 15 March 2021.

The Trustees have identified the following key risks to the charity:

Misuse of the trust funds by recipients – The Trustees seek to limit exposure through funding policies, the trust will not provide funding to educational institutes based outside the UK or any charitable organisation not registered with the Charity Commission in England and Wales, Scotland or Northern Ireland. The trustees will not make payments direct to an individual.

Page 2

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Misuse of funds by trustees/advisors – The trust is controlled by the five trustees and is reliant on services provided by Tees & Ravenscroft for day-to-day administration. The process of majority decision making, regular accounting checks, multiple approvals for grant payments, reviews and annual external audit minimises the trust’s exposure to risk.

Exposure to Informa plc – The trustees are conscious the trust continues to have significant financial exposure to Informa plc with the trust’s holding in Informa representing a large proportion of the assets within the trust. The trustees have a continued policy of reducing the trust’s exposure to fluctuations in Informa’s stock price through sales and further diversification of the investments as and when they feel markets allow.

COVID 19 – The trustees acknowledge the impacts of the COVID 19 pandemic which has continued to influence both the charitable trust and the charities it supports throughout the year.

The trust is a grant making charity and the vast majority of the trust’s income is generated from its investment portfolio. The economic impact of COVID has continued to influence both the capital value and the expected income yield of the charitable trust’s investments. This continues to impact on the funds available for distribution in the short to medium term. The trustees have this in mind in their reviews of the investments and continue to maintain a long-term view.

POLICIES, OBJECTIVES AND THE PUBLIC BENEFIT

The trust is a grant making charitable trust and intends to achieve its constitutional aims set out above, by making grants targeting the trust’s key themes of education, development and the promotion of peace.

The charitable trust fulfils its objectives through making grants to other charitable bodies registered with a UK charity regulator and UK universities. The Trustees aim to promote the value and opportunity of education, peace and reconciliation and seek to have a positive impact through funding projects and scholarships which go on to have a wider impact in their communities for years to come.

GRANT MAKING POLICY

The trustees accept applications online through the trust’s website.

The trustees sometimes invite applications from UK universities to fund scholarships that support the key principles of the trust, providing access to education for those otherwise unable to access the opportunities that education provides for the improvement of society as a whole. The trustees also occasionally invite applications from UK charities engaging in projects supporting the promotion of peace and reconciliation through understanding and education.

The trust’s grant making policy is focused on achieving its objectives for the public benefit by concentrating it’s resources on the following purposes:

To achieve these objectives the Trustees accept applications for funding from the following applicants:

It is the trustee’s policy to only provide support to charitable projects in line with the Trust’s objectives that are run by charities registered with the Charity Commission of England & Wales, Scotland or Northern Ireland. This is to ensure the recipient charity is required, by law, to comply with the requirements set out by one of those bodies. The trustees apply this restriction to protect the funds granted and ensure, as far as possible, the funds provided are applied to further the charitable objectives of the charity.

Page 3

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

It is the trustees’ policy to pay grants concerning any individual directly to the educational institution or charity to ensure they are used to achieve the trustees’ objectives of supporting education, peace and support of the developing world.

For any grant awarded equal to or in excess of £150,000 the trustees require the recipient of the grant to enter into a gift agreement confirming the purpose of the award and setting out the reporting requirements.

THE PUBLIC BENEFIT

In setting their grant making policy the trustees confirm that they have had regard to the guidance provided by the charity commission on public benefit.

The trustees are conscious, as a grant making charity, that they have no direct control over the success or failure of the individual projects to which they provide funds. The trustees do, however, seek to measure the success of grants to ensure that the funds are used to further the objectives of the trust. The trustees only make grants where the motivation of a project clearly aligns with the target themes of the trust and success is measured in a number of different ways depending on the circumstances of each grant.

The trustees look to support projects that have positive impacts on the communities in which they operate over the longer term.

In August 2021 we awarded a grant of £11,000 to EMMS International in support of their project in Malawi to promote girls’ education and foster communities which work together to ensure girls are protected from the risks posed by teenage pregnancy and supported to thrive. The grant was used to help fund: girls attend vocational training and secondary school, sex education sessions in schools, a conference for boys to further understand girls’ rights and a Youth & HIV Project Officer. In the first year of the project, the charity has helped to reduce teenage pregnancies from more than 1,000 to fewer than 500 in the target area, reaching 1,100 pupils at 20 schools educating them about sexual and reproductive health.

In August 2021 we awarded a grant to Project Trust. Project Trust is an educational charity that has been providing young people with opportunities for personal growth and development for over 53 years. Through international volunteering, volunteers spend 12 months working in some of the most challenging and culturally diverse locations in the world. In order to help make this learning experience available to all, regardless of circumstance, Project Trust has a financial bursary scheme so that each year 50 volunteers (aged 17-25) can be supported directly through the Access Fund with grants ranging from £500 to £3,000 made per recipient. The Ferguson Trust contributed £40,000 to this bursary scheme.”

STRATEGIES FOR ACHIEVING OBJECTIVES

The trustees review, on a monthly basis, applications to the trust as well as meeting bi-annually to discuss nonroutine applications.

All applications are assessed by the trustees against the trust’s objectives and policies to ensure the project is in line with the trust’s stated objectives. The trustees review the size of the grant requested, other funding in place and the value for money offered by the project. Value for money is assessed based on the impact of the project, i.e. how many people are reached, any lasting benefit of the project and any future opportunities provided to the individuals reached and their communities as a result of the project/funding.

In determining whether to offer a grant to an applicant the Trustees will also consider the time a charitable applicant has had charitable status, their level of fundraising activity and the charity’s annual turnover when making decisions on funding.

Page 4

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

ACTIVITIES FOR ACHIEVING OBJECTIVES

The trustees continue to meet regularly to discuss grant applications and ensure the trust’s funds are used to achieve its objectives.

The trustees require charitable organisations who have received grants to provide reports on how the funds have been used to complete or advance the objectives of the project funded and by default the trustees’ objectives.

GOING CONCERN

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

REVIEW OF ACTIVITIES

During the year to 31 December 2021 the trustees awarded grants totalling £2,347,180 (2020 - £1,598,279) to various individuals and organisations, as detailed in note 4. This represented 633% (2020 - 447%) of the incoming revenue generated from the assets.

Grants made are applied to a number of organisations in support of their goals and in line with those of the trustees, to encourage and support the provision of education, understanding and peace.

The trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising any powers or duties to which the guidance is relevant.

RESERVES POLICY

Money held in reserve by the Trustees is there to meet the ongoing demand for grants awarded on a monthly basis. In addition, the Trustees ensure they have sufficient reserves ahead of the autumn to meet their annual commitment to scholarship funding of approximately £550,000. Further, the Trustees have agreed on strategy to move a greater proportion of the portfolio to ethical investments. A proportion of the reserves held are to be reinvested in the ethical market.

The trust held total funds of £29,324,954 (2020 - £29,071,418) at the end of the reporting period all of which was held in unrestricted reserves. The charitable trust is a grant making charity, the trustees are able to adjust the level of grants made were there to be a drastic change in income or capital returns in a year if appropriate. As such the trustees policy is to make grants as appropriate with no particular requirement to maintain a certain level of reserves. Where there are reserves these will be spent when appropriate grant making opportunities arise.

INVESTMENT POLICY AND PERFORMANCE

The Trust deed authorises the Trustees to make and hold investments as if they were absolute beneficial owners.

The Trustees’ holding of Informa Plc shares continues to reduce over time when market conditions allow, providing a rising cash weighting within the investment portfolio and which may be used to fund donations by the Trust. Continuing advice regarding the investment profile of other investments held as well as a general balance of asset class weightings is provided by Ravenscroft (UK) Limited.

The Trust funds are invested with a medium-term view of 5-10 years and are benchmarked against the ARC GBP STEADY GROWTH PCI. There are no geographical constraints on the investments made at present, but the Trustees have provided an increasing emphasis in wishing to develop a clear policy of ethical restrictions towards the Trust investments managed by Ravenscroft (UK) Limited. This policy will apply to all future investments made and continues to be effected via the investment of a proportion of the fund assets into a managed Ethical portfolio model.

Page 5

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

At the end of 2021 the Aggregate Performance (net of fees) was +10.26% against the ARC Steady Growth benchmark of +10.2%.

The trustees and investment managers agree that the transition to a more ethically focused portfolio should continue over the medium/long term but during the 2021 year, taking into account the adverse market conditions, it did not make any sense to escalate the process. The trustees will continue to seek advice on the opportune moments to further this goal.

The trust continues to have a significant holding in Informa and the trustees are pleased to note that the company scores very highly in the ethical screenings applied to its investments. Nevertheless the trustees seek to diversify when opportunity allows to ensure the continued resilience of the trust.

The major part of Informa’s business is arranging conferences, expos, seminars etc. Consequently during the uncertainty of the Covid lockdowns the dividend was cut and the share price fell dramatically affecting the trust value more significantly then the rest of the portfolio. The trust has now received a first dividend (since Covid) which is very positive news. The trust did not sell any shares in 2021 in anticipation of further recovery in the share price. This decision appears to have been vindicated as 2022 YTD the share price is +7.4% .

MATERIAL INVESTMENTS POLICY

Funds under the control of the Trustees have been invested in a broker-managed portfolio. The initial assets of the trust were shares in Taylor & Francis Limited and proportion of investment remains in that company, which has since floated on the London Stock Exchange and has subsequently been merged to form Informa Plc. The Trustees will continue to diversify the portfolio as the opportunity arises.

FUTURE DEVELOPMENTS

The trustees will continue to make grants, in line with the constitution and policies of the trust, to suitable causes or projects until they have expended all of the funds at their disposal.

The trustees will continue to make grants to suitable causes or projects to support until they have invested all of the funds at their disposal.

AUDIT

Insofar as the Trustees are aware:

Page 6

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

TRUSTEE’S RESPONSIBILITIES STATEMENT

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provision of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Trustees and signed on their behalf by:

LPC Glaister

~~L P Glaister~~ L Glaister (Oct 27, 2022, 10:33am) Trustee

Date: 27 Oct 2022

Page 7

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

Opinion

We have audited the financial statements of The Allan and Nesta Ferguson Charitable Trust (the 'charity') for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 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).

.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 reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) 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 charity 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 relating 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 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 charity'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.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 8

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST (CONTINUED)

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditors' 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 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.

Matters on which we are required to report by exception

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:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, 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 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 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 charity or to cease operations, or have no realistic alternative but to do so.

Page 9

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST (CONTINUED)

Auditors' responsibilities 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 having effect thereunder.

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 auditors' report that includes our 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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.

Page 10

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST (CONTINUED)

Use of our report

This report is made solely to the charity's 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 charity'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 charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Price Bailey LLP

Chartered Accountants Statutory Auditors Causeway House 1 Dane Street Bishop's Stortford Hertfordshire CM23 3BT Date: 27 October 2022

Price Bailey LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 11

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Investments
2
Total income
Expenditure on:
Raising funds
3
Charitable activities
4
Total expenditure
Net expenditure before net gains/(losses) on
investments
Net gains/(losses) on investments
Net (expenditure)/income for the year
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
371,052
371,052
131,217
2,470,163
2,601,380
(2,230,328)
2,483,864
253,536
253,536
29,071,418
253,536
29,324,954		 Total
funds
2021
£
371,052
371,052
131,217
2,470,163
2,601,380
(2,230,328)
2,483,864
253,536
253,536
29,071,418
253,536
29,324,954		 Total
funds
2020
£
357,234
357,234
118,976
1,729,164
1,848,140
(1,490,906)
(2,643,116)
(4,134,022)
(4,134,022)
33,205,440
(4,134,022)
29,071,418

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 15 to 25 form part of these financial statements.

Page 12

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Investments
8
Current assets
Debtors
9
Cash at bank and in hand
13
Creditors: amounts falling due within one
year
10
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
11
Total net assets
Charity funds
Unrestricted funds
Total funds		 1,676,256
375,970
2,052,226
(729,631)		 2021
£
28,592,981
1,322,595
29,915,576
(590,622)
29,324,954
29,324,954
29,324,954		 1,677,953
644,914
2,322,867
(645,579)		 2020
£
27,740,980
1,677,288
29,418,268
(346,850)
29,071,418
29,071,418
29,071,418

27 Oct 2022 The financial statements were approved and authorised for issue by the Trustees on _______ and signed on their behalf by:

LPC Glaister

L P Glaister L Glaister (Oct 27, 2022, 10:33am)

Trustee

The notes on pages 15 to 25 form part of these financial statements.

Page 13

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Cash flows from operating activities
Net cash used in operating activities (see note 12)
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
(1,664,114)
371,052
6,067,454
(5,043,336)
1,395,170
(268,944)
644,914
375,970		 2020
£
(106,260)
357,234
8,446,796
(8,270,363)
533,667
427,407
217,507
644,914

The notes on pages 15 to 25 form part of these financial statements

Page 14

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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 the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Allan and Nesta Ferguson Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The functional and presentational currency is Pounds Sterling (£).

1.2 Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. As such, they continue to adopt the going concern basis of accounts in the financial statements, which assumes the charity will continue in operational existence for the foreseeable future. The Trustees have given due consideration to the working capital and cash flow requirements of the charity for at least 12 months from the date of signature of the accounts.

1.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity.

Support and governance costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Costs of raising funds are investment management fee costs incurred in generating income from investments.

Charitable activities and Governance costs are costs incurred on the charity's overseas and educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

Page 15

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies (continued)

1.4 Expenditure (continued)

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

1.5 Taxation

The Trust, being a charity, is not liable for income tax or corporation tax. Value Added Tax is not recoverable and is included in the relevant charges for administration expenses.

1.6 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities.

Investments held as fixed assets are shown at cost less provision for impairment.

1.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.9 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

1.10 Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their fair value as at the balance sheet date. All financial instruments of the charity are measured at cost with the exception of investments in the charity’s portfolio, which are measured at fair value as at the balance sheet date using the closing bid value. The value of investments as well as their original cost is stated in note 8.

Financial assets include investments in the portfolio, the bank balances, trade debtors, accrued income and other debtors but exclude prepayments and taxation.

Financial liabilities include trade creditors, other creditors, accruals and deferred income but exclude social security and other taxes due.

Page 16

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Investment income

UK listed investments
Foreign listed investments
Total 2020
Investment management costs
Investment management fees
Total 2020		 Unrestricted
funds
2021
£
333,570
37,482
371,052
357,234
Unrestricted
funds
2021
£
131,217
118,976		 Total
funds
2021
£
333,570
37,482
371,052
357,234
Total
funds
2021
£
131,217
118,976		 Total
funds
2020
£
335,161
22,073
357,234
Total
funds
2020
£
118,976

3. Investment management costs

4. Charitable activities

Grants made:
Educational projects
Educational projects encompassing world
peace
Overseas education		 Institutional
grants
£
853,961
190,000
1,143,219
2,187,180		 Grants
to individuals
£
160,000
-
-
160,000		 Support
costs
£
55,430
9,627
57,926
122,983		 Total
2021
£
1,069,391
199,627
1,201,145
2,470,163

During the year there were two grants made to institutions to distribute to individuals totalling £160,000 (2020 - 46 grants totalling £13,800).

Page 17

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Charitable activities (comparatives)

Grants made:
Educational projects
Educational projects encompassing world
peace
Overseas education		 Institutional
grants
£
515,164
45,000
1,024,315
1,584,479		 Grants
to individuals
£
13,800
-
-
13,800		 Support
costs
£
43,319
3,813
83,753
130,885		 Total
2020
£
572,283
48,813
1,108,068
1,729,164

Page 18

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Grants to institutions

Educational bodies
London School of Hygiene & Tropical Medicine
Loughborough University
Kings College London
Barnardo’s
National Deaf Children’s Society
Awards for Young Musicians
Amnesty International
Royal Northern College of Music
Institute of Development Studies
University of Aston
Sidney Sussex College- Cambridge
City of Birmingham Symphony Orchestra
University of Oxford
University of Nottingham
University of Leeds
Starfish Asia
Glasgow School of Art
SOAS
University of Sheffield
University of Coventry
Manchester University
Royal Shakespeare Community
University of East Anglia
Other		 2021
£
-
150,000
-
-
-
28,000
17,000
-
-
-
50,000
-
-
-
-
-
15,000
-
150,000
-
199,983
80,000
150,000
13,978
853,961		 2020
£
50,000
60,000
50,000
20,000
15,000
-
-
-
-
-
50,000
20,000
40,160
30,000
45,725
-
15,000
50,000
50,000
-
-
-
-
19,279
515,164

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THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Educational projects encompassing the promotion of world peace
Conciliation Resources
Quakers in Britain
International Alert
Cord Global
Other
Overseas Education
International Needs UK
CAMFED
East Africa Character Development Trust
The Gurkha Welfare Trust
Shared Interest Foundation
Signpost International
Classrooms for Malawi
Pragya UK
Excellent Development
The Haller Foundation
East African Playgrounds
African Adventures Foundation
Teach a Man to Fish
Afghanaid
Africa Educational Trust
S.A.F.E Arts for Education
Water Witness International
Tearfund
Hand in Hand International
SeeBeyondBorders
CAFOD
Firefly International
Community Action Nepal
World Association of Girl Guides and Girl Scouts
Tools for Self Reliance
Acet UK (AIDS Care Education and Training)		 2021
£
-
-
150,000
25,000
15,000
190,000
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2020
£
30,000
15,000
-
-
-
45,000
2020
£
25,000
25,000
25,000
35,000
20,000
20,000
20,000
20,000
20,000
16,000
15,000
15,000
30,000
30,000
30,000
25,000
25,000
20,000
20,000
20,000
20,000
20,000
19,000
18,000
16,000
15,182

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THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Pebbles Project UK Limited
Self Help Africa (UK)
The Virtual Doctors
AfriKids Limited
Scottish Love in Action
Teacher Aid
Cecily's Fund
Starfish Asia
Water Aid
Angellite
Bishop Simeon Trust
Ethiopiaid
Children of the Mekong
Canon Collins Educational and Legal Assistance Trust
Sense International
Save the Children UK
The Lunchbowl Network
The Mango Tree Orphan Support Programme
Railway Children
Able Child Africa
APT Action on Poverty
Hello World
Chance for Childhood
Pratham UK
StreetInvest
Mines Advisory Group
Hands Around the World
Sabre Education
Cheire Blair Foundation for Women
Network for Africa
Cambodian's Children's Fund
Mondo Challenge Foundation
SERVE
Plant your Future
Starfosh Greathearts Foundation
Windle Trust International
CARE International UK
Disability Africa
The Citizens Foundation
Other Grants		 -
-
-
-
-
15,000
15,000
20,000
125,000
18,000
20,000
15,000
15,000
19,668
23,954
50,000
20,000
20,000
15,000
20,000
15,000
20,000
15,000
15,000
20,000
50,000
15,000
25,000
16,000
15,000
15,000
25,000
20,000
17,500
20,000
15,000
30,000
15,000
15,000
353,097
1,143,219		 15,000
15,000
15,000
15,000
15,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
385,133
1,024,315

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THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

5. Support costs

Legal and administration charges
Website development
Auditors fees for audit services
Other charges
Total 2020
.
Support Costs (Comparative)
Legal and administration charges
Website development
Auditors fees for audit services
Other charges
6.
Auditors' remuneration
Auditors remuneration		 Governance
£
113,220
-
6,800
-
120,020
130,321		 Support
costs
£
-
348
-
115
463
564
Governance
2020
£
124,221
-
6,100
-
130,321		 Total
2021
£
113,220
348
6,800
115
120,483
130,885
Support
2020
£
-
420
-
144
564
2021
£
6,800		 Total
2020
£
124,221
420
6,100
144
130,885
Total
funds
2020
£
124,221
420
6,100
144
130,885
2020
£
6,100

7. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL).

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THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

8. Fixed asset investments

At 1 January 2020
Additions
Disposals
Revaluations
Cash balance
Total 2021		 Listed
investments
£
26,896,725
5,043,336
(6,067,454)
2,483,864
-
28,356,471		 Cash
deposits
£
-
-
-
-
236,510
236,510		 Total
£
26,896,725
5,043,336
(6,067,454)
2,483,864
236,510
28,592,981		 Total
funds
2020
£
29,716,274
8,270,363
(8,446,796)
(2,643,116)
844,255
27,740,980

The market value of investments individually constituting more than 5% of the total portfolio are as follows:

follows:
31 December 31 December
2021 2020
Informa plc 6,071,225 6,442,525

This shareholding represents 0.3% (2020 - 0.3%) of the company’s issued ordinary share capital.

The trustees wish to diversify the funds invested in Informa Plc and will do so when practical opportunities arise.

9. Debtors

2021 2020
£ £
Due within one year
Other debtors 1,676,256 1,677,953

10. Creditors: Amounts falling due within one year

Accruals and deferred income
Grants payable		 2021
£
36,520
693,111
729,631		 2020
£
52,280
593,299
645,579

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THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

11. Creditors: Amounts falling due after more than one year

2021
£
Grants payable
590,622
12.
Reconciliation of net movement in funds to net cash flow from operating activities
2021
£
Net income/expenditure for the year (as per Statement of Financial
Activities)
253,536
Adjustments for:
(Gains)/losses on investments
(2,483,864)
Dividends received
(371,052)
(Increase)/decrease in cash investments
607,745
Decrease in debtors
1,697
Increase/(decrease) in creditors
327,824
Net cash used in operating activities
(1,664,114)
13.
Analysis of cash and cash equivalents
2021
£
Cash in hand
375,970
14.
Analysis of changes in net debt
At 1 January
2021
Cash flows
£
£
Cash at bank and in hand
644,914
(268,944)		 2020
£
346,850
2020
£
(4,134,022)
2,643,116
(357,234)
1,176,603
697,777
(132,500)
(106,260)
2020
£
644,914
At 31
December
2021
£
375,970

Page 24

THE ALLAN AND NESTA FERGUSON CHARITABLE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15. Related party transactions

During the year the Trust received a donation of £Nil (2020 - £Nil) from the Idwen Banister Will Trust which was a Trust of a close relative connected to D Banister. At the year end a balance of £1,629,624 (2020 - £1,629,624) was owed to the Trust in relation to this transaction.

Apart from the above there were no other related party transactions during the year.

Page 25