ARTHUR JAMES PATERSON CHARITABLE TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 5APRIL 2021 CHARITY NUMBER: 278569
ARTHUR JAMES PATERSON CHARITABLE TRUST
CONTENTS
| Page | |
|---|---|
| Trustee's Report | 1 - 3 |
| Independent Examiner's Report | 4 |
| Statement of Financial Activites | 5 |
| Balance Sheet | 6 |
| Notes to the financial statements | 7 - 10 |
ARTHUR JAMES PATERSON CHARITABLE TRUST
TRUSTEE'S REPORT FOR THE YEAR ENDED 5 APRIL 2021
The Trustee presents its annual report and financial statements of the charity for the year ended 5 April 2021. The financial statements comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities (effective 1 January 2019) preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) - (Charities SORP(FRS102)(Second Edition))
Legal and administrative information
Constitution Arthur James Paterson Charitable Trust is a registered charity governed by a Settlement Deed dated 26 July 1979 Charity Number: 278569 Registered Office The Administrator 8 St James's Square, London, SW1Y 4JU Banker SG Kleinwort Hambros Bank Limited 8 St James's Square, London, SW1Y 4JU Bankers and Investment Managers Smith & Williamson 25 Moorgate, London EC2R 6AY Independent Examiner Tracey Young Haysmacintyre LLP 10 Queen Street Place, London, EC4R 1AG Trustee SG Kleinwort Hambros Trust Company (UK) Limited
Objects of the charity
The objects of the charity are to promote and support such charitable purpose or purposes, and such charitable organisation or organisations (being purposes and organisations which are exclusively charitable according to the law of England) as the Trustee shall from time to time in its discretion decide. The trust was established by Arthur James Paterson by a Deed dated 26 July 1979. The trust remained dormant until the settlor's death in 1986, at which time the settlor's estate passed into the trust. The trust fund is held to benefit such charitable purposes as the Trustee in its absolute discretion think fit, although during his lifetime Arthur James Paterson gave the Trustee guidelines as to how he would like to see such discretion exercised.
Grant making policy
The Trustee's current policy is to annually distribute the Trust's income to certain selected charities, although no commitment is given to the recipients. It is unusual for the Trustee to respond favourably to unsolicited appeals and applications will not be acknowledged. The Trustee reviews the selected charities, and consider new appeals received at their annual Trustee meeting, normally held in July.
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ARTHUR JAMES PATERSON CHARITABLE TRUST
TRUSTEE'S REPORT FOR THE YEAR ENDED 5 APRIL 2021
Appointment of Trustees and charity organisation
The charity is managed and administered by the corporate Trustee, SG Kleinwort Hambros Trust Company (UK) Limited, which was appointed under the terms of the Trust Deed.
Financial review and investment policy
The financial statements cover all the activities of the charity during the year. Gross income totalled £47,128 (£64,734 in 2020). Under the governing document, there are no restrictions on the charity's power to invest. The overall investment policy is to acheive long term capital growth in real terms. The unrestricted fund balance at 5 April 2021 was £1,957,531 (£1,719,661 in 2020).
The financial statements show the investments at market value. At the year ended 5 April 2021 there was an unrealised net gain of £252,945 (loss of £406,557 in 2020).
Review of the activities and future developments
The Trustee is satisfied with the financial position of the charity and confirms that it has adequate assets available to fulfil their obligations. There are no plans to alter the charity's activities next year.
Charity's public benefit
The Trustee has ensured that all activities throughout the period have been for the public benefit. During the year the trust made charitable distributions of £82,998 ( Nil in 2020).
The Trustee confirms that it has referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning future activities.
Reserves policy
It is the Trustees' intention to maintain an unrestricted fund at least equivalent to the historic cost of investments, together with a small cash balance of income, partly to offset any fluctuation in investment income in future periods and to enable them to continue their policy of responding quickly to appeals for significant support where appropriate, the timing of which is unpredictable.
All funds are held on an unrestricted basis. It is the policy of the Trustee to donate all income to further the objects of the trust.
Risks
The Trustee has considered what risks the charity faces and believe these to be as follows:
Risk identified Action taken to mitigate the risk - Investments will drop in value - Trustee has appointed a professional firm to manage the investments - Donations made will not be spent how - Trustee actively review the donations and the Trustee would like ask for updates and reports.
Investments are made principally in UK quoted fixed-interest stocks and equity shares to provide a high level of income consistent with medium risk and potential for capital appreciation in the longer term.
Going Conern
The Trustee is of the opinion that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties regarding the Charity's ability to do so.
Fundraising
The Trust does not undertake any fundraising activities.
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ARTHUR JAMES PATERSON CHARITABLE TRUST
TRUSTEE'S REPORT FOR THE YEAR ENDED 5 APRIL 2021
Trustee's responsibilities in relation to the financial statements
The charity Trustee is responsible for preparing a Trustee's annual report and 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 and Wales requires the charity Trustee to prepare financial statements for each 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 the financial statements, the Trustee is required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustee is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. The Trustee is also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
Digitally signed by Bradley Digitally signed WALDEN Scott by Scott RICE Date: Date: 2022.06.07 2022.06.07 RICE 11:39:50 +01'00' 09:19:37 +01'00'
..................................................................................
SG Kleinwort Hambros Trust Company (UK) Limited
Date: ..............................................
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ARTHUR JAMES PATERSON CHARITABLE TRUST
I report to the Trustee on my examination of the accounts of Arthur James Paterson Charitable Trust for the year ended 5 April 2021 which are set out on pages 5 - 10.
Respective responsibilities of Trustee and Examiner
The Trustee is responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ("the 2011 Act"). The Trustee is satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.
I report in respect of my examination of the Trust's accounts as carried out under section 44 (1) ( c) of the 2005 Act and section 145 of the 2011 Act. In carrying out my examination I have followed the requirements of the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent Examiner's Statement
I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect:
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(1) accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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(2) the accounts do not accord with those records; or
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(3) 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 any 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.
...........................................................
Mrs Tracey Young ACA
Haysmacintyre LLP Chartered Accountants 10 Queen Street Place London EC4R 1AG
28.6.22
Date: ..............................
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ARTHUR JAMES PATERSON CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021
| Note | 2021 | 2020 | |
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| Fund | Fund | ||
| £ | £ | ||
| Income | |||
| Investments | 2 | 47,128 | 64,734 |
| Total Income | 47,128 | 64,734 | |
| Expenditure | |||
| Charitable activities | 3 | 89,585 | 4,698 |
| Costs of raising funds | 15,671 | 18,268 | |
| Total expenditure | 105,256 | 22,966 | |
| Net (expenditure) / income before gains on investments | (58,128) | 41,768 | |
| Net Gains / (Losses) on Investments | 5 | ||
| Realised | 43,053 | (1,125) | |
| Unrealised | 252,945 | (406,557) | |
| 295,998 | (407,682) | ||
| Net Movement in Funds in the Year | 237,870 | (365,914) | |
| Funds | |||
| At 5 April 2020 | 1,719,661 | 2,085,575 | |
| Net Movement in Funds in the Year | 237,870 | (365,914) | |
| At 5 April 2021 | 1,957,531 | 1,719,661 |
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ARTHUR JAMES PATERSON CHARITABLE TRUST
BALANCE SHEET AS AT 5 APRIL 2021
| Note Fixed Assets Investments 5 Current Assets Cash Current Liabilities Creditors, amounts falling due within one year 6 Net Current Assets Net Assets Funds Unrestricted Fund |
£ 92,210 88,336 |
2021 £ 1,953,657 3,874 1,957,531 1,957,531 |
£ 70,224 3,137 |
2020 £ 1,652,574 67,087 1,719,661 1,719,661 |
|---|---|---|---|---|
The financial statements were approved by the Trustee on .......................................................
Digitally signed Digitally signed by Bradley Scott by Scott RICE WALDEN Date: 2022.06.07 Date: 2022.06.07 RICE 11:42:21 +01'00' 09:20:02 +01'00'
................................................................................... SG Kleinwort Hambros Trust Company (UK) Limited
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ARTHUR JAMES PATERSON CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
1 Accounting Policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
Basis of Accounting
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities (effective 1 January 2019) preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) - (Charities SORP(FRS102)(Second Edition)) and the Charities Act 2011.
The Arthur James Paterson Charitable Trust meets the definition of a public entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going Concern
The Trustee is of the opinion that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties regarding the Charity's ability to do so.
Income recognition
All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income tax recoverable in relation to investment income is recognised at the time investment income is receivable.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment manager of the dividend yield of the investment portfolio.
Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
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.
Cash and cash equivalents
Cash and cash equivalents includes cash and short term highly liquid investments with short term maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
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ARTHUR JAMES PATERSON CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the Trustee's best knowledge of the amount, events or actions, actual results ultimately differ from these estimates. The Trustee does not consider there to be any material estimates and judgements.
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.
Fund Structure
Income funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Investments
Listed investments are included in the financial statements at market value at the balance sheet date. Investments include cash held for investment purposes.
Realised gains and losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.
| 2 | Investment Income | 2021 | 2021 | 2020 | 2020 |
|---|---|---|---|---|---|
| £ | £ | ||||
| Income from UK Listed Securities | 47,114 | 64,473 | |||
| Interest Received | 14 | 261 | |||
| 47,128 | 64,734 | ||||
| 3 | Charitable activites | 2021 | 2020 | ||
| £ | £ | ||||
| Glenalmond College | 13,833 | - | |||
| Worcester College, Oxford | 13,833 | - | |||
| Kings College (for medical research) | 27,666 | - | |||
| Age UK | 9,222 | - | |||
| Turn 2 Us | 9,222 | - | |||
| NSPCC | 9,222 | - | |||
| Support Costs (note 4) | 6,587 | 4,698 | |||
| 89,585 | 4,698 |
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ARTHUR JAMES PATERSON CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
| 4 Support Costs Governance Costs: SG Kleinwort Hambros Trust Company (UK) Limited Fees SG Kleinwort Hambros Trust Company (UK) Limited ARC Fees LEI Fee Independent Examiner's Fees 5 Investments listed on a recognised Stock Exchange Market Value Brought Forward Purchases Disposals Realised Gain / (Loss) Unrealised Gain / (Loss) Market Value Cash on: SG Kleinwort Hambros Bank Account Smith & Williamson Total Investments 6 Creditors: amounts falling due within one year SG Kleinwort Hambros Trust Company (UK) Limited Fees Independent Examiner's Fees Grants payable The grants payable: Grants payable brought forward Grants agreed in the year Grants paid Grants payable carried forward |
2021 £ 5,345 - 72 1,170 6,587 2021 £ 1,600,385 409,706 (439,784) 1,570,307 43,053 252,945 1,866,305 19,130 68,222 1,953,657 2021 £ 3,052 2,286 82,998 88,336 - 82,998 - 82,998 |
2020 £ 3,438 60 72 1,128 4,698 2020 £ 1,994,557 49,512 (36,002) 2,008,067 (1,125) (406,557) 1,600,385 - 52,189 1,652,574 2020 £ 2,021 1,116 - 3,137 - - - - |
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ARTHUR JAMES PATERSON CHARITABLE TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
7 Unrestricted Funds
The income funds of the charity will be allocated by the Trustee towards charities and charitable activities, as set out in the Trustee's Report attached to these financial statements.
8 Related party transactions and Trustee's expenses and remuneration
The charity does not have a relationship with any other charity or organisations.
SG Kleinwort Hambros Trust Company (UK) Limited was paid £5,345 for its services as the corporate Trustee in 2021 (2020: £3,438).
There were no other related party transactions during the year.
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