## **THE FRANCIS HEAD BEQUEST**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
## **FOR THE**
**YEAR ENDED 31 DECEMBER 2022**
## **CHARITY No. 277018**
## **THE FRANCIS HEAD BEQUEST**
## **Charity Information**
|Trustees|The Management Committee of|
|---|---|
||The Society of Authors|
|Charity Number|277018|
|Charity Offices|c/o The Society of Authors|
||24 Bedford Row|
||London WC1R 4EH|
|Independent Examiner|Simon Goodridge FCA|
||Knox Cropper LLP|
||Chartered Accountants|
||65 Leadenhall Street|
||London EC3A 2AD|
|Bankers|HSBC|
||The Peak|
||333 Vauxhall Bridge Road|
||Victoria|
||London SW1V 1EJ|
|Investment Managers|abrdn|
||280 Bishopsgate|
||London|
||EC2M 4AG|
## **THE FRANCIS HEAD BEQUEST**
## **Contents**
||Page|
|---|---|
|Trustees' Report|1 - 2|
|Independent Examiner’s Report|3|
|Statement of Financial Activities|4|
|Balance Sheet|5|
|Notes to the Financial Statements|6 - 8|
**REPORT OF THE TRUSTEES OF THE FRANCIS HEAD BEQUEST**
## **YEAR ENDED 31 DECEMBER 2022**
The Trustees present their report and financial statements for the year ended 31st December 2022. The Trustees have adopted the provisions of the 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) (second edition effective 1 January 2019).
## **Trustees**
The Management Committee of the Society of Authors is the permanent Trustee of the charity (the “Trustees”) and has acted throughout the year.
## **Investment powers and Risk Management**
The Trust Deed authorises the Trustees to make and hold investments using the Capital Funds of the charity. These are shown in detail in the notes to the financial statements. The principal area of risk concerns the management of the investments, the income from which provides the main source of funds from which the awards are paid. The investments are therefore kept under constant review by the investment managers.
## **Constitution, objects and policies**
This charity was constituted under the Will of the late Mary Francis Guelbi Head for the advancement of education generally and in particular to further and promote education by providing grants for the benefit and assistance of contemporary writers in the English language over the age of 35 who whether by reason of disablement or otherwise are in financial difficulty and who whether male or female were born in England, Scotland, Wales or Northern Ireland. The policy of the Francis Head Bequest continues to be to pay grants in accordance with the Trust Deed out of the income generated by the investments and donations.
## **Public Benefit**
In reviewing the charity’s aims and objectives and in planning future activities, the Trustees refer to the Charity Commission’s general guidance on public benefit.
## **Reserves Policy**
The Trustees policy is to operate on the basis of being able to continue to generate sufficient incoming resources to use toward meeting their charitable objectives and to accord with their principal terms. The Trustees are of the opinion that the funds remain sufficient to enable them to continue this ongoing objective. The charity has sufficient but not excessive funds to service its objective of making future charitable distributions.
## **Financial Review**
The results for the year ended 31[st] December 2022 are attached and show a Net decrease in funds of £41,374 deficit (2021: £40,548 decrease) before adding the realised loss on sale of investments of £2,194 (2021: £4,143 gain) and unrealised decrease in the market value of investments of £118,312 (2021: £67,677 gain). Grants and awards totalling £48,000 (2021: £44,450) were paid in the year, helping 26 authors (2021: 28), and other expenditure incurred amounted to £19,781 (2021: £18,179). The investments appear in the Balance Sheet at their market value of £748,445 (2021: £901,000). The Accumulated Fund carried forward at the year-end stands at £761,883 (2021: £923,763) and the Trustees consider that the charity has sufficient income and capital to meet its obligations in the foreseeable future.
1
**REPORT OF THE TRUSTEES OF THE FRANCIS HEAD BEQUEST**
## **YEAR ENDED 31 DECEMBER 2022**
## **Statement of Trustees' Responsibilities**
The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.
The law applicable to charities in England and Wales, the Charities Act 2011, 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 its incoming resources and application of resources 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 the principles of the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Approval**
This report was approved by the Trustees on 18 May 2023 and signed on their behalf.
Joanne Harris – Chair of the Management Committee, The Society of Authors
2
## **THE FRANCIS HEAD BEQUEST**
## **YEAR ENDED 31[st] DECEMBER 2022**
## **Independent Examiner’s Report to the Trustees of The Francis Head Bequest**
I report to the trustees on my examination of the accounts of the Francis Head Bequest for the year ended 31[st] December 2022.
## **Responsibilities and basis of report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act).
I report in respect of my examination of the Trust’s accounts as required under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent Examiner’s statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which give me cause to believe that in any material aspect:
- a) accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
- b) the accounts do not accord with those records; or
- c) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than the requirement that the accounts give a “true and fair view” which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Simon Goodridge FCA Knox Cropper LLP Chartered Accountants 65 Leadenhall Street EC3A 2AD
Date: 14 July 2023
3
## **THE FRANCIS HEAD BEQUEST**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **YEAR ENDED 31[st] DECEMBER 2022**
|||**--------------------Unrestricted**|**Funds------------**|
|---|---|---|---|
|||**2022**|**2021**|
||**Notes**|£|£|
|**Income**||||
|Investment Income - Dividends|2|26,389|22,081|
|- Bank Interest||18|-|
|Total Income||26,407|22,081|
|**Expenditure:-**||||
|Raising Funds:||||
|Investment Management Fees||3,954|4,454|
|Charitable Activities|3|63,827|58,175|
|Total Expenditure||67,781|62,629|
|**Net Income/(expenditure) before**||(41,374)|(40,548)|
|**Investment Gains/(losses)**||||
|Net gains/(losses) on investments|6|(120,506)|71,820|
|**Net income/(expenditure)**||(161,880)|31,272|
|**Reconciliation of funds:**||||
|Total funds brought forward||923,763|892,491|
|**Total funds carried forward**||£761,883|£923,763|
4
## **THE FRANCIS HEAD BEQUEST**
## **BALANCE SHEET**
|**31st DECEMBER 2022**
**2022**
**Notes**
£
£
**FIXED ASSETS**
Quoted Investments – at Market
Value
4
748,445
**CURRENT ASSETS**
Cash held by Investment Managers
6,946
Cash at bank
9,148
16,094
**CURRENT LIABILITIES**
Amounts due within one year
7
(2,656)
**Net Current Assets**
13,438
**TOTAL NET ASSETS**
£761,883
Represented by:
**ACCUMULATED FUND**
Unrestricted Funds
761,883
**TOTAL UNRESTRICTED FUNDS**
£761,883|**2021**
£
£
901,000
16,650
8,885
25,535
(2,772)
22,763
£923,763
923,763
£923,763|**2021**
£
£
901,000
16,650
8,885
25,535
(2,772)
22,763
£923,763
923,763
£923,763|**2021**
£
£
901,000
16,650
8,885
25,535
(2,772)
22,763
£923,763
923,763
£923,763|
|---|---|---|---|
||25,535
(2,772)|||
|||||
||||£923,763|
||||923,763|
||||£923,763|
Approved by the Trustees on 18 May 2023 and signed on their behalf by
Joanne Harris – Chair of the Management Committee, The Society of Authors
The notes form part of these Financial Statements
5
**THE FRANCIS HEAD BEQUEST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31[st] DECEMBER 2022**
## **1. ACCOUNTING POLICIES**
- a) These financial statements have been prepared in accordance with the Financial Reporting Standard 102 and the Charities SORP (FRS102 second edition) and in compliance with the Charities Act 2011.
The charity is a public benefit entity under FRS102.
- b) The income from investments and bank interest received represent the actual income receivable in the year.
- c) Awards paid include all amounts payable in the year in accordance with the terms of the Trust Deed.
- d) Other expenditure is included on the basis of amounts payable for the year.
- e) The quoted investments are included in the Financial Statements at market value to comply with the Statement of Recommended Practice.
- f) The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events and conditions that might cast significant doubt on the ability of the charity to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.
The Trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## **2. INVESTMENT INCOME**
|
**INVESTMENT INCOME**|||
|---|---|---|
|**NON GOVERNMENT BOND FUNDS**
ASC (Offshore) Global Fixed Interest Fund Z Income
ASC (Offshore) Sterling Fixed Interest Fund Z Income
**MULTI ASSET CHARITY INVESTMENT FUNDS**
ASC Income Fund Z
BNY Mellon Funds
**TOTAL**|**2022**
**Gross**
**Income**
£
3,777
2,251
20,361
-
£26,389|**2021**
**Gross**
**Income**
£
3,606
2,359
13,012
3,104|
|||£22,081|
6
## **THE FRANCIS HEAD BEQUEST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31[st] DECEMBER 2022**
|**3.**
**CHARITABLE ACTIVITIES**
**2022**
£
**Direct**
Awards paid
48,000
**Indirect**
Judges fees
3,000
Administration Costs
10,440
Other
677
**Governance**
Independent Examination Fee
1,710
£63,827
**4.**
**INVESTMENTS**
**Cost**
£
**NON GOVERNMENT BOND FUNDS**
ASC (Offshore) Global Fixed Interest Fund Z Income
78,985
ASC (Offshore) Sterling Fixed Interest Fund Z Income
72,304
151,289
**MULTI ASSET CHARITY INVESTMENT FUNDS**
ASC Income Fund Z
635,230
Totals at – 31stDecember 2022
£786,519
31stDecember 2021
£817,273
**5.**
**MOVEMENT IN COST OF INVESTMENTS**
**2022**
£
£
Cost at 1 January 2022
817,273
Additions
ASC Income Fund Z
-
-
Disposals
ASC (Offshore) Global Fixed Interest Fund Z Income
-
ASC (Offshore) Sterling Fixed Interest Fund Z Income
-
ASC Income Fund Z
(30,754)
BNY Mellon Funds
-
(30,754)
Cost at 31 December 2022
£786,519|**3.**
**CHARITABLE ACTIVITIES**
**2022**
£
**Direct**
Awards paid
48,000
**Indirect**
Judges fees
3,000
Administration Costs
10,440
Other
677
**Governance**
Independent Examination Fee
1,710
£63,827
**4.**
**INVESTMENTS**
**Cost**
£
**NON GOVERNMENT BOND FUNDS**
ASC (Offshore) Global Fixed Interest Fund Z Income
78,985
ASC (Offshore) Sterling Fixed Interest Fund Z Income
72,304
151,289
**MULTI ASSET CHARITY INVESTMENT FUNDS**
ASC Income Fund Z
635,230
Totals at – 31stDecember 2022
£786,519
31stDecember 2021
£817,273
**5.**
**MOVEMENT IN COST OF INVESTMENTS**
**2022**
£
£
Cost at 1 January 2022
817,273
Additions
ASC Income Fund Z
-
-
Disposals
ASC (Offshore) Global Fixed Interest Fund Z Income
-
ASC (Offshore) Sterling Fixed Interest Fund Z Income
-
ASC Income Fund Z
(30,754)
BNY Mellon Funds
-
(30,754)
Cost at 31 December 2022
£786,519|||**2021**
£
44,450
3,000
9,104
-
1,621
£58,175
**Market**
**Value**
£
62,946
61,915
124,861
623,584
£748,445
£901,000
**2021**
£
£
514,396
687,906
687,906
(2,633)
(1,974)
(21,921)
(358,501)
(385,029)
£817,273|**2021**
£
44,450
3,000
9,104
-
1,621
£58,175
**Market**
**Value**
£
62,946
61,915
124,861
623,584
£748,445
£901,000
**2021**
£
£
514,396
687,906
687,906
(2,633)
(1,974)
(21,921)
(358,501)
(385,029)
£817,273|
|---|---|---|---|---|---|
|||||||
|||||||
|||||||
|||||||
|||||||
|||||||
||£786,519||||£817,273|
7
## **THE FRANCIS HEAD BEQUEST**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31[st] DECEMBER 2022**
## **6. MOVEMENT IN MARKET VALUES OF INVESTMENTS**
|Market Value at the beginning of the year
Additions
Disposal Proceeds
Investment Gains
**Market Value at End of Year**
Realised gains/(losses)
Unrealised gains/(losses)
**7.**
**CREDITORS AND ACCRUALS**
Investment Managers’ Fees
Professional Fees|**2022**
£
£
901,000
-
(32,049)
(120,506)
(152,555)
£748,445
(2,194)
(118,312)
£(120,506)
**2022**
£
946
1,710
£2,656|**2022**
£
£
901,000
-
(32,049)
(120,506)
(152,555)
£748,445
(2,194)
(118,312)
£(120,506)
**2022**
£
946
1,710
£2,656|**2022**
£
£
901,000
-
(32,049)
(120,506)
(152,555)
£748,445
(2,194)
(118,312)
£(120,506)
**2022**
£
946
1,710
£2,656|**2021**
£
£
876,131
687,906
(734,857)
71,820
24,869
£901,000
4,143
67,677
£71,820
**2021**
£
1,152
1,620
£2,772|
|---|---|---|---|---|
|||||
|
||||||
||||£2,656||
## **8. RELATED PARTY DISCLOSURES**
The Society of Authors, which is the corporate Trustee of the charity, carried out management services for the charity and charged a management fee for the year amounting to £10,440 (2021 £9,104). There were no other related party transactions in the year.
## **9. REVIEW OF FUNDS**
During the year the Trustees reviewed the charity’s investment policy. The review identified that the charity has a permanent endowment, however for at least the last 10 years the Trustees have informally followed a total return basis to allow capital returns to fund some of the charity’s annual expenditure. Following legal advice, the Trustees passed a resolution on 26 May 2022 in accordance with s282 Charities Act 2011 that the objects of the Trust to which the fund is subject could be carried out more effectively if the capital of the Fund could be expended as well as income accruing to it, rather than just income. This resolution has been sent to the Charity Commission.
The Trustees have also reported to the Charity Commission on the historical position and are waiting to hear back with their response.
8