OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

THE BAND TRUST REPORT AND ACCOUNTS YEAR ENDED 31ST MARCH 2021

THE BAND TRUST

Contents Page
Reference and administrative details of the charity, its Trustees and Advisors 1
Report of the Trustees 2 - 6
Independent auditor’s report to the Trustees 7 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the statement of cash flows 14
Principal accounting policies 15 - 17
Notes to the accounts 18 - 25

THE BAND TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS

Registered charity No. 279802
Trustees The Hon Mrs Nicholas Wallop
R J S Mason
B Peerless
The Hon Nicholas Wallop
V Wallop
H Wallop
Principal address The Band Trust
BM Box 2144
London
WC1N 3XX
Bankers C Hoare & Co
37 Fleet Street
London
EC4P 4DQ
Investment advisors Rathbone Investment Management Limited
8 Finsbury Circus
London
EC2M 7AZ
Investec Wealth & Investment Limited
2 Gresham Street
London
EC2V 7QP
Solicitors Charles Russell Speechlys LLP
5 Fleet Place
London
EC4M 7RD
Accountants Rathbones Trust Company Limited
8 Finsbury Circus
London
EC2M 7AZ
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL

Page: 1

THE BAND TRUST

REPORT OF THE TRUSTEES

The Trustees present their annual report for the year ended 31[st] March 2021 under the Charities Act 2011, together with the audited accounts for the year, and confirm that they comply with the requirements of the Act, the Trust Deed and 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 (FRS102) effective 1 January 2015.

Structure, Governance and Management

Governance

The Trust was created by a deed dated 30[th] March 1976 as a Trust exclusively for charitable purposes, ‘charitable’ meaning charitable according to English Law. A new scheme for the Trust was approved by the Charity Commissioners on 13[th] March 1996. The Trustees, principal office and advisors are as detailed on page 1.

Organisational Structure and Administration

The Trust is administered by six unpaid Trustees, though one of the Trustees is a partner in a firm of solicitors and another is a practicing accountant both of which advise the Trust on a professional basis. The six Trustees are considered to be the Key Management Personnel of the Trust and are actively involved in the administration of the Trust and meet at least four times a year to consider grants and to review the investment performance and financial position of the Trust. All major decisions concerning the Trust are made at those meetings, and responsibility for enacting those decisions is delegated to specific individual Trustees who report accordingly at each meeting. When a new Trustee is to be inducted, they are given copies of the latest accounts and similar background material, together with the Charity Commission publications relating to becoming a Trustee (and also advised that there is additional material on the Charity Commission’s website). Once they have had a chance to consider these, a meeting is held between the existing Trustees and the potential Trustee to discuss the underlying charitable objectives of the Trust, the practical workings of the Trust, and to deal with any other concerns the candidate might have, or information they might require. If the candidate then confirms that they are prepared to act, the necessary formalities are then completed.

The charity scheme dated 13[th] March 1996 details the following with regard to Trustees:

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ report and accounts 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 Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Trust and of the income and expenditure of the Trust for that period. In preparing these accounts, the Trustees are required to:

Page: 2

THE BAND TRUST

REPORT OF THE TRUSTEES (CONTINUED)

Structure, Governance and Management - continued

Statement of Trustees’ Responsibilities - continued

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed and scheme. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Relationships between the charity and related parties

The Trust Deed permits Trustees who are professionals to be remunerated their normal charges. In order to simplify the administration of the Trust and to ensure proper compliance with charity law and practice, it has been agreed to utilise a firm of solicitors Charles Russell Speechlys LLP of which one Trustee is a partner (Bart Peerless) and a practising accountant (the Trustee Richard Mason) for their relevant professional services, and details of these charges are given in Note 8.

Activities, specific objectives and relevant policies

Activities and specific objectives

The Trust has general charitable objects. However the strategy of the Trustees has been to focus their grants in the areas of education, disability, medicine, care for the elderly and infirm, heritage and the environment. With one exception, grants are only made to other registered charities.

The Trustees have also continued to support certain scholarships established during the lifetimes of the settlors of the Trust.

The Trustees individually identify potential recipients for donations which fall within the Trust’s objectives during the year. Each of the potential recipients is considered by the Trustees collectively and if a grant is approved an appropriate donation is determined. Because the Trustees identify sufficient recipients to whom to distribute the whole of the annual income of the Trust, the Trustees discourage unsolicited applications for grants.

The Trustees continue their policy of visiting or otherwise contacting recipients of grants to ensure that the anticipated benefit has been realised from the grant and the grant has been applied in the way intended by the Trustees.

Objectives and activities for the public benefit

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year.

The Trust carries out these objects by providing grants (with one exception) to institutions which are UK registered charities and whose objectives comply with the Trust’s agreed criteria. Whilst the Trustees are mindful of their own obligation to ensure that the Trust benefits the public generally, they take some assurance from the fact that recipients (with one exception) of grants are themselves regulated as charities to ensure that they operate for the public benefit.

The Trustees therefore consider that the Trust’s activities are for the benefit of the public generally.

Page: 3

THE BAND TRUST

REPORT OF THE TRUSTEES (CONTINUED)

Activities, specific objectives and relevant policies - continued

Achievements, Performance and Financial Review

A summary of the year’s results is given on page 11 of the accounts.

During the year, in respect to the unrestricted funds, the Trust received income of £715,559 and, having applied £4,398,458 towards donations and scholarships, £103,681 towards administering the Trust and £6,360 towards governance costs, there was a net decrease in unrestricted funds during the year of £3,792,940 (2020: decrease of £4,203,808). In light of the change of policy regarding the utilisation of the expendable endowment, the trustees have made a transfer of £3,800,679 from this to eliminate the total deficit on unrestricted funds.

Details of all scholarships, grants and donations made in the year are included in notes 4 and 5 of the accounts.

The Trustees feel that their objectives have been adequately met this year. However, the Trustees are aware that there are external factors which could affect the achievement of their objectives as a significant part of the charity’s assets are made up of investments and cash, the value of which is dependent on the general performance of the UK and overseas stock markets. In order to minimise the risk of poor performance of such stock markets, the Trustees have set prudent investment policies and place reliance on the investment managers to monitor and advise on the necessary investment changes and suitable asset allocation.

Plans for Future Periods

The Trustees changed their policy as from 1[st] April 2018 to begin to make grants funded from the expendable endowment as well as from income. One half to two thirds of the expendable endowment (as valued at the date of the decision) will be made available for this purpose, and this will be done over the next three to five years. It is therefore anticipated that some of the grants made during this period will be much more substantial than those given previously. They will be made in respect of particular projects identified by the Trustees, therefore unsolicited applications will continue not to be accepted.

Applications already made or indicated before the change of policy will continue to be dealt with as previously.

Impact of COVID 19 Pandemic

During the year the coronavirus (Covid-19) outbreak continued to spread worldwide and cause extensive disruption to businesses as well as economic activities globally including the UK.

The Trustees have considered the effects of the pandemic on the charity’s operations and have concluded that the impact on the Trust’s finances is likely to be limited because although there was a significant fall in the value of the Trust’s investments in the early part of the pandemic, investment values had very largely recovered by the end of this accounting period. The Trustees acknowledge and recognise that there might yet be a potential impact of the Covid-19 pandemic on the future operations of the Trust due to the general risk to health, and also the Trust may lose planned income as the result of the general effect on the economy and investment returns. However it is not anticipated at the current time that the overall financial position of the Trust will be significantly adversely affected or its financial solvency threatened.

There has however clearly been an impact from the pandemic on several of the recipients of grants from the Trust and some applications for emergency support funding have therefore been agreed during the year. The ongoing impact of the pandemic on some of the charities supported by the Trust, and some of the projects flagged for future support will continue to be closely monitored.

Page: 4

THE BAND TRUST

REPORT OF THE TRUSTEES (CONTINUED)

Activities, specific objectives and relevant policies - continued

Investment Policy

The Trustees’ investment powers are governed by the Trust Deed, which permits the Trust’s funds to be invested in the purchase of, or interest in stocks, funds, shares, securities or any investment anywhere in the world, as the Trustees see fit in the furtherance of the charity’s objectives.

Investment advisors to the Trustees during the year were Rathbone Investment Management Limited and Investec Wealth & Investment Limited. The Trustees’ policy is to seek the highest rate of ‘total return’ from first class investments, principally securities listed on the UK Stock Exchange. The Trustees have agreements with Rathbone and Investec that the Trustees’ investment objective is to obtain a reasonable long term overall return, whilst generating a target income. Appropriate benchmarks with the investment advisors have been agreed. The Trustees have specifically requested that, in so far as is compatible with security of capital and its maintenance in real terms, the Trust’s income is to keep pace with inflation to ensure that its level of giving is not diminished.

During the year ended 31[st] March 2021 the Trust’s investments have continued to be managed in conformity with the Trustees’ policy and the Trust Deed.

Whilst investment performance is reviewed quarterly, with a formal strategic review with the investment managers each year, a detailed performance review is carried out at five yearly intervals.

The next review was scheduled to take place in February 2019, but in light of the disinvestment programme arising from the change of policy regarding the expendable endowment, the trustees agreed to postpone this until February 2024.

Reserves Policy

Note 13 to the accounts shows the assets and liabilities attributable to the various funds by type.

As noted above, the Trustees have changed their policy and have commenced making grants out of the expendable endowment fund. The unrestricted fund deficit will be eliminated by a transfer from the expendable endowment fund.

Consequently, in the light of this, the Trustees’ reserve policy is that it is not necessary to maintain free reserves.

Fundraising Statement

The Trust does not actively solicit donations and therefore is not registered with the Fund Raising Regulator or subscribe to any fundraising code of practice. When donations from individuals are from time to time received the Trust aims to protect personal data and never sell or swap such data with any other organisations, but no such donations have been received for many years. During 2020/21, the Trust received no complaints about its fundraising activities.

Risk Policy

The Trustees are responsible for the management of the risks faced by the Trust. Risks are identified and assessed and controls are established throughout the year. A formal review of the Trust’s risk management process is undertaken on an annual basis and the key risks identified are as follows:

Page: 5

THE BAND TRUST

REPORT OF THE TRUSTEES (CONTINUED)

Activities, specific objectives and relevant policies - continued

Risk Policy - continued

The key controls used by the Trust include formal agendas and minutes for all Trustees’ meetings, comprehensive planning, budgeting and accounting and clear authorisation and approval levels of all grants and other expenditure.

Through the risk management processes established, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed. The major risks to which the Trust is exposed as identified by the Trustees have been reviewed and systems have been established to mitigate those risks.

……………………………………. R Mason - Trustee

----- Start of picture text -----
Date: ………………………………..
----- End of picture text -----

Page: 6

THE BAND TRUST

REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF THE BAND TRUST

Opinion

We have audited the accounts of The Band Trust (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statements of cash flows, the principal accounting policies and the notes to the accounts. 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).

In our opinion, the accounts:

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 auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

Page: 7

THE BAND TRUST

REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF THE BAND TRUST - CONTINUED

Other information (continued)

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 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 accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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.

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 accounts.

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:

Page: 8

THE BAND TRUST

REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF THE BAND TRUST (CONTINUED)

Auditor’s responsibilities for the audit of the accounts (continued)

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

As a result of our procedures we did not identify any key audit matters relating to irregularities.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Page: 9

THE BAND TRUST

REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF THE BAND TRUST (CONTINUED)

Auditor’s responsibilities for the audit of the accounts (continued)

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's 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 the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Date 10 November 2021

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page: 10

THE BAND TRUST

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31ST MARCH 2021

Note
Income from:
Investments
1a
Other income
1b
Total
Expenditure on:
Raising funds
Investment management
fees
2
Charitable activities
Provision of aid to UK
residents in
need of care
3
Total
Net (expenditure) before
net gains/(losses) on
investments
Net gains/(losses on
investments
Net (losses) on foreign
exchange
Net (expenditure) /
income and net
movement in funds
Transfer of funds
Reconciliation of Funds
Total funds brought forward
Total funds carried
forward
Unrestricted
funds
£
715,559
3,468

719,027




-


4,511,967
4,511,967
(3,792,940)
-
(7,739)
(3,800,679)
3,800,679
-
-		 Expendable
endowment
£
-
-

-




124,317


-

124,317

(124,317)

5,259,606

-


5,135,289

(3,800,679)


21,752,391

23,087,001		 2021
Total funds
£

715,559

3,468
719,027

124,317
4,511,967

4,636,284

(3,917,257)
5,259,606
(7,739)
1,334,610
-

21,752,391
23,087,001		 Unrestricted
funds
£
1,017,611
-

1,017,611




-


5,221,419
5,221,419
(4,203,808)
-
(2,759)
(4,206,567)
4,206,567
-
-		 Expendable
endowment
£
-
-

-




158,394


-

158,394

(158,394)

(3,133,145)

-


(3,291,539)

(4,206,567)


29,250,497

21,752,391		 2020
Total funds
£

1,017,611

-
1,017,611
158,394
5,221,419
5,379,813
(4,362,202)
(3,133,145)
(2,759)
(7,498,106)
-
29,250,497
21,752,391

The notes on pages 18 to 25 form part of these accounts.

All of the charity's activities derived from continuing operations during the above two financial years.

There were no recognised gains or losses in the period other than those in the Statement of Financial Activities.

Page: 11

THE BAND TRUST

BALANCE SHEET

AS AT 31ST MARCH 2021

Note
Fixed assets
Investments
9
Current assets
Debtors
10
Cash at bank
Liabilities
Creditors: Amounts falling due
within one year
11
Net current (liabilities)
Net assets
Funds of the Charity
Unrestricted income funds
Expendable endowment funds
12
Total Charity Funds		 2021
£
£
24,346,410
403,522
2,210,508
2,614,030
(3,873,439)
(1,259,409)
23,087,001
-
23,087,001
23,087,001		 2021
£
£
24,346,410
403,522
2,210,508
2,614,030
(3,873,439)
(1,259,409)
23,087,001
-
23,087,001
23,087,001		 2020
£
£
22,122,973
350
3,137,728
3,138,078
(3,508,660)
(370,582)
21,752,391
-
21,752,391
21,752,391		 2020
£
£
22,122,973
350
3,137,728
3,138,078
(3,508,660)
(370,582)
21,752,391
-
21,752,391
21,752,391
2,614,030
(3,873,439)		 3,138,078
(3,508,660)
23,087,001 21,752,391
-
**23,087,001 **		 -
_21,752,391 _
23,087,001 21,752,391

----- Start of picture text -----
The financial statements on pages 11 to 25 were approved
by the trustees on ……………………….
and signed on their behalf by:
…………………………….Lavinia Wallop )
)
) Trustees
)
……………………………………R Mason )
----- End of picture text -----

Page: 12

THE BAND TRUST

STATEMENT OF CASH FLOWS

YEAR ENDED 31ST MARCH 2021

Notes
Net cash used in operating
activities
1
Cash flows from investing
activities:
Interest received
Investment income received
Income tax repayment received
Payments to acquire investments
Receipts from the disposal of
Investments
Net cash provided by investing
activities
Change in cash and cash
equivalents in the year
2
Cash and cash equivalent brought
forward
Cash and cash equivalents
carried forward
3
2021
£
£
(4,679,298)
5,376
710,183
350
(3,437,159)
6,898,386
4,177,136
(502,162)
3,891,616
3,389,448
2021
£
£
(4,679,298)
5,376
710,183
350
(3,437,159)
6,898,386
4,177,136
(502,162)
3,891,616
3,389,448		 2020
£
£
(2,745,336)
19,749
995,464
720
(3,969,321)
5,257,737
2,304,349
(440,987)
4,332,597
3,891,610		 2020
£
£
(2,745,336)
19,749
995,464
720
(3,969,321)
5,257,737
2,304,349
(440,987)
4,332,597
3,891,610
(502,162)
3,891,616		 (440,987)
4,332,597
3,389,448 3,891,610

Page: 13

THE BAND TRUST

NOTES TO THE STATEMENT OF CASH FLOWS

YEAR ENDED 31ST MARCH 2021

1
Reconciliation of net movement in funds to net
cash flow from operating activities
Net movement in funds for the reporting period (as
per the statement of financial activities)
Adjustments for:
Net (gains) / losses on investments
Interest receivable
Investment income receivable
Income tax repayment receivable
(Increase) in debtors
Increase in creditors
Net cash used in operating activities
2
Reconciliation of net cash flow to movement in net
funds
Balance at 1 April 2020
Net cash (outflow)
Balance at 31 March 2021
3
Analysis of cash and cash equivalents

Capital cash held by investment managers
Cash at bank and in hand
4
Analysis of changes in net debt
At 1 April
2020
£
Capital cash held by investment managers
753,882
Cash at bank and in hand
3,137,728
3,891,610		 1
Reconciliation of net movement in funds to net
cash flow from operating activities
Net movement in funds for the reporting period (as
per the statement of financial activities)
Adjustments for:
Net (gains) / losses on investments
Interest receivable
Investment income receivable
Income tax repayment receivable
(Increase) in debtors
Increase in creditors
Net cash used in operating activities
2
Reconciliation of net cash flow to movement in net
funds
Balance at 1 April 2020
Net cash (outflow)
Balance at 31 March 2021
3
Analysis of cash and cash equivalents

Capital cash held by investment managers
Cash at bank and in hand
4
Analysis of changes in net debt
At 1 April
2020
£
Capital cash held by investment managers
753,882
Cash at bank and in hand
3,137,728
3,891,610		 2021
£
1,334,610
(5,259,606)
(5,376)
(710,183)
-
(403,522)
364,779
(4,679,298)
2021
£
3,891,610
(502,162)
3,389,448
2021
£


1,178,940
2,210,508
3,389,448
Cash flows
£
425,058
(927,220)		 2020
£
(7,498,106)
3,133,145
(19,749)
(995,464)
(350)
-
2,635,188
(2,745,336)
2021
£
4,332,597
(440,987)
3,891,610
2020
£

753,882
3,137,728
3,891,610

At 31 March
2021
£
1,178,940
2,210,508
3,891,610 (502,162) 3,389,448

Page: 14

THE BAND TRUST

PRINCIPAL ACCOUNTING POLICIES

YEAR ENDED 31ST MARCH 2021

(a) Basis of accounting

These accounts have been prepared for the year ended 31 March 2021.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with 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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Trust constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

No significant accounting estimates were required or made by the Trustees in the preparation of the financial statements.

The full impact of the recent global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the Trust’s activities, beneficiaries and the wider economy. In particular the value of the listed investments (see note 9) is subject to a greater degree of uncertainty and volatility after the balance sheet date.

As set out in these accounting policies under “going concern”, the trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its accounts on the going concern basis.

(b) Income recognition

All income is recognised in the period in which the charity is entitled to receipt, the amount can be measured with reasonable certainty and it is probable that the income will be received.

(i) Income from listed investments

Dividends and interest from listed investments, including associated tax credits, are credited to the statement of financial activities when they are receivable by the charity.

(ii) Interest

Bank interest is credited to the statement of financial activities when it is receivable by the charity.

(c) 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. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.

Page: 15

THE BAND TRUST

PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

YEAR ENDED 31ST MARCH 2021

(c) Expenditure recognition – continued

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered.

The costs of raising funds comprise those costs directly attributable to managing the charity’s investment portfolio and raising investment income.

Charitable activities comprise grants payable in pursuance of the objectives of the Charity and in meeting the costs of administering the grants programme. Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching to them are fulfilled. Grants offered subject to conditions which have not been met at the year end, are noted as commitments but not accrued as expenditure in the accounts. Charitable activities also comprise governance costs which include costs which are directly attributable to legal procedures necessary for compliance with statutory requirements.

(d) Pension contributions

Contributions in respect of the Trust’s defined contribution pension scheme are charged to the statement of financial activities when they are payable to the scheme. The Trust’s contributions are restricted to the contributions disclosed in note 6. There were no outstanding contributions at the year end. The Trust has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.

(e) Taxation

The Trust is a registered charity under the Charities Act 2011 and is not liable to UK income, corporation or capital gains tax on its income and chargeable gains as these fall within the various exemptions available to registered charities.

(f) Fund accounting

Unrestricted funds comprise those funds which the trustees are free to use in accordance with their charitable objects.

The expendable endowment fund represents those assets that must be held by the charity, principally investments and cash at bank. Income arising from the endowment fund must be used in accordance with the objects of the charity and is included in the statement of financial activities as unrestricted income. Any realised and unrealised gains and losses arising on the investments form part of the expendable endowment fund. Under the terms on which the endowment fund was given to the charity, expenditure incurred on investment management fees and any legal or other advice given specifically in connection with the fund, may be charged against it.

(g) Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The Trust does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the Trust is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Page: 16

THE BAND TRUST

PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

YEAR ENDED 31ST MARCH 2021

(g) Fixed asset investments – continued

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is 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 at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

(h) Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. They have been discounted to the present value of the future cash receipt where such discounting is material.

(i) Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

(j) Creditors and provisions

Creditors and provisions 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. Creditors and provisions are recognised at the amount the Trust anticipates it will pay to settle the debt.

(k) Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

At the year end the Trust had £Nil unrestricted reserves. The Trustees believe that the Trust’s financial statements should be prepared on a going concern basis on the grounds that the Trust has sufficient liquid resources and that the Trustees have the power under the Trust Deed to utilise the expendable endowment fund for charitable purposes at their discretion.

The Trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Trust to continue as a going concern. The Trustees are of the opinion that the Trust will have sufficient resources to meet its liabilities as they fall due. With regard to the next accounting period, the year ending 31 March 2022, the most significant areas that affect the carrying value of the assets held by the Trust are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the Trustees’ report for more information).

Page: 17

THE BAND TRUST

NOTES TO THE ACCOUNTS

YEAR ENDED 31ST MARCH 2021

1a
Income from Investments
Income from listed investments
Income from tax repayments
Interest receivable
Other		 2021
Unrestricted
funds
£
710,183
-
5,376
-
715,559		 2020
Unrestricted
Funds
£
995,464
350
19,749
2,048
1,017,611

1b Other – Furlough monies

As a result of the pandemic and the provision of government assistance to the employment sector, the Band Trust claimed and received £3,468 through the Coronavirus Job Retention Scheme.

2 Expenditure on raising funds 2021 2020
Endowment Endowment
Funds Funds
£ £
Investment management fees 124,317 158,394

3

Provision of aid to UK residents in need of care
Grants payable
Donations (note 4)
Scholarships (note 5)
Grant administration costs
Governance costs - Audit fees (including VAT)		 2021
Unrestricted
Funds
£
4,373,458
25,000
107,149
6,360
4,511,967		 2020
Unrestricted
funds
£
5,055,856
50,000
109,443
6,120
5,221,419

Page: 18

THE BAND TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

YEAR ENDED 31ST MARCH 2021

4
Donations by type – unrestricted funds
Note
Cancer Care
a
Children and Young People
b
Church
c
Disabled
d
Disadvantaged
e
Educational
f
Elderly
g
Individuals
h
Hospice and Hospital
i
Miscellaneous
j
Museums and other Art Institutions
k
Veterans
l
Emergency Coronavirus grants
m
Miscellaneous up to £2,000
n
a)
Cancer Care
Breast Cancer Haven
CLIC Sargent
Maggie’s
b)
Children and Young People
The Bolingbroke Trust
The British Exploring Society
The Caldecott Foundation
The Charlie Waller Memorial Trust
DEBRA
Downside Fisher
Marine Society & Sea Cadets
Opera Holland Park
Over the Wall Camp
The PACE Centre Limited
The Royal Academy of Culinary Arts’ ‘Adopt a School Trust’
The Royal Ballet School
The Sick Children’s Trust
Schoolreaders
Second Chance
Yorkshire Ballet Seminars
Young Enterprise		 2021
£
-
420,000
60,000
1,570,00
310,000
592,080
64,000
18,628
-
250,000
900,000
50,000
115,000
23,750
£4,373,458
2021
£
-
-
-
-
2021
£
10,000
150,000
-
-
-
-
-
-
20,000
120,000
30,000
25,000
25,000
-
-
20,000
20,000
420,000		 2020
£
1,250,000
801,000
25,000
700,000
310,000
1,056,080
14,000
17,776
700,000
-
135,000
25,000
-
22,000
5,055,856
2020
£
100,000
150,000
1,000,000
1,250,000
2020
£
-
-
120,000
100,000
150,000
125,000
100,000
30,000
-
-
-
-
-
26,000
150,000
-
-
801,000

Page: 19

THE BAND TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

YEAR ENDED 31ST MARCH 2021

c)
Church
Chelsea Old Church
St Andrew’s Farleigh Wallop
St Philip, Earls Court
d)
Disabled
Bishop Creighton House Settlement
Blind in Business
British Library
The Chelsea Physic Garden Company
Chilterns MS Centre
Compaid Trust
Everyone Can
Halle Concerts Society
The Living Paintings Trust
Neuromuscular Centre
Prior’s Court Foundation
The Royal National Theatre
Royal Osteoporosis Society
Seashell Trust
St Elizabeth’s Centre
Thomas Morley Trust (RoRo Sailing Project)
Treloar Trust
e)
Disadvantaged
ADAPT Charity
Arts for All
Bishop Creighton House
Buttle UK
Cleanup United Kingdom
Creative Sparkworks
The Felix Project
People and Drugs
St Mary Le Bow Homeless Charity
The Outdoor Trust
Trinity Winchester
The 999 Club and Lady Florence Trust		 2021
£
-
10,000
50,000
60,000
2021
£
250,000
-
-
250,000
-
-
-
20,000
100,000
25,000
250,000
20,000
30,000
500,000
25,000
100,000
-
1,570,000
2021
£
25,000
60,000
-
25,000
30,000
-
100,000
-
20,000
-
50,000
-
310,000		 2020
£
25,000
-
-
25,000
2020
£
-
100,000
100,000
-
100,000
100,000
100,000
-
-
-
-
-
-
-
-
-
200,000
700,000
2020
£
-
-
15,000
-
20,000
100,000
-
50,000
-
5,000
-
120,000
310,000

Page: 20

THE BAND TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

YEAR ENDED 31ST MARCH 2021

f)
Educational
Armonico Consort
Bankside Open Spaces Trust (Future Gardeners)
Chailey Heritage Foundation
Friends of the Courtauld Institute
The Grange Festival
The Mary Rose Trust
National Gallery
National Holocaust Centre and Museum
Nucleo Project
The Royal Academy of Arts
Royal Academy of Music
The Sixteen
The Sir Stanley Spencer Memorial Trust
The Stowe House Preservation Trust
Temple Bar Trust
Victoria & Albert Museum – Museum of Childhood
g)
Elderly
Barristers’ Benevolent Fund
Friends of the Elderly
Kensington and Chelsea Foundation
h)
Individuals
Gagliardi, Leonardo
i)
Hospice and Hospital
Horatio’s Garden
The Norfolk Hospice
Sue Ryder
The Winchester Hospice Fundraising Charity
j)
Miscellaneous
The Royal National Lifeboat Institution		 2021
£
-
20,000
-
1,080
250,000
36,000
-
-
10,000
-
25,000
-
-
250,000
-
-
592,080
2021
£
2,000
2,000
60,000
64,000
2021
£
18,628
2021
£
-
-
-
-
-
2021
£
250,000		 2020
£
30,000
-
100,000
1,080
-
-
400,000
50,000
-
100,000
-
50,000
25,000
-
50,000
250,000
1,056,080
2020
£
2,000
12,000
-
14,000
2020
£
17,776
2020
£
150,000
100,000
100,000
350,000
700,000
2020
£
-

Page: 21

THE BAND TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

YEAR ENDED 31ST MARCH 2021

k)
Museums and other Art Institutions
The British Museum
City and Guilds Art School Property Trust
Gainsborough’s House Society
Pitzhanger Manor and Gallery Trust
Sir John Soane’s Museum
The Wallace Collection
l)
Veterans
The Not Forgotten Association
m)
Emergency Coronavirus grants
The Kensington & Chelsea Foundation
The Felix Project
Farms for City Children
King’s College, London (Lifelines)
Abbeyfield (Reading) Society Limited
Trinity Winchester
Friends of the Elderly
The Lake District Calvert Trust
n)
Miscellaneous up to £2,000
Various
5
Scholarships – unrestricted funds
Honourable Society of Gray’s Inn
The Florence Nightingale Foundation		 2021
£
500,000
-
150,000
-
100,000
150,000
900,000
2021
£
50,000
2021
£
10,000
10,000
5,000
10,000
10,000
10,000
50,000
10,000
115,000
2021
£
23,750
2021
£
50,000
(25,000)
25,000		 2020
£
-
100,000
-
35,000
-
-
135,000
2020
£
25,000
2020
£
-
-
-
-
-
-
-
-
-
2020
£
22,000
2020
£
25,000
25,000
50,000

Page: 22

THE BAND TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

YEAR ENDED 31ST MARCH 2021

6 Staff costs

Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs		 2021
£
23,700
143
2,399
26,242		 2020
£
22,800
2,433
2,472
27,705

The average number of employees during the year was 1 (2020 - 1) and the full time equivalent number of persons employed was 0.6 (2020 – 0.6). Employee time involved either providing support to the governance of the charity or support services to charitable activities.

No employees earned £60,000 per annum or more (including taxable benefits) during the year (2020 - none).

7 Future commitments

Scholarships totalling up to £50,000 are payable on an annual basis and it is envisaged these payments will continue in the future.

8 Remuneration of Trustees and key management personnel

The Trust considers its key management personnel to be all of the trustees.

No trustee received any remuneration in respect of their services during the year (2020 - £nil).

R J S Mason provides accountancy services and financial advice to the charity during the year. The total fees (including VAT and disbursements) paid to RJS Mason were £31,590 (2020: £30,720).

B Peerless is a partner of Charles Russell Speechlys LLP, firms of solicitors. The fees (including VAT and disbursements) paid to the firm during the year were £29,584 (2020: £32,127) to Charles Russell Speechlys LLP.

The Hon. Nicholas and The Hon. Mrs Wallop were reimbursed for expenditure incurred in the course of their duties during the year totalling £3,201 (2020 - £3,383).

Page: 23

THE BAND TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

YEAR ENDED 31ST MARCH 2021

2021 2020
9 Investments £ £
Market value at 31st March 2020 21,369,091 25,790,652
Add:
Acquisitions at cost		 3,437,159 3,969,321
Less:
Disposal proceeds		 (6,898,386) (5,257,737)
Gains / (losses) on investment assets 5,259,606 (3,133,145)
Market value at 31st March 2021 23,167,470 21,369,091
Add:
Investment manager’s capital cash		 1,178,940 753,882
Total Investments and Capital cash 24,346,410 22,122,973
Book cost of Investments at 31stMarch 2021 16,001,116 _17,880,402 _
The investments included above, all of which were listed on a recognised stock exchange comprise:
United Kingdom investments 14,994,591 15,282,803
Overseas investments 8,172,879 6,086,289
23,167,470 _21,369,092 _

As at 31 March 2021 the charity did not hold any shares that were considered material when compared to the total portfolio.

10
Debtors
Investment proceeds due
HMRC Tax Repayment
11
Creditors: Amounts falling due within one year
Donations payable
Scholarships payable
Accountancy fees
Audit fees
Investment management fees
Trustee expenses		 2021
£
403,522
-
403,552
2021
£
3,820,250
-
18,560
6,180
25,970
2,479
3,873,439		 2020
£
-
350
350
2020
£
3,425,000
25,000
18,560
6,000
31,400
2,700
3,508,660

Page: 24

THE BAND TRUST

NOTES TO THE ACCOUNTS (CONTINUED)

YEAR ENDED 31[ST ] MARCH 2021

12
Endowment funds
Expendable endowments		 Balance at
1stApril 2020
£
_21,752,391 _		 Expenditure
and
investment
Gains
£
5,135,289
 Transfer
£
(3,800,679)
 Balance at
31st March
2021
£
**23,087,001 **

The expendable endowment comprises amounts given by the Settlors, of which approximately £500,000 was given by them on creation of the Trust in 1976, a further £500,000 on the death of the first Settlor in 1982 and £10,000,000 on the death of the second Settlor received in 1995 and a further £280,000 received in 1996, the balance representing the growth in value over the period, net of investment management fees.

13
Analysis of net assets between funds
Fund balances at 31st March 2021 are represented by:
Investments
Current assets
Current liabilities
Total net assets
Unrealised gains included above:
On investments
Reconciliation of movements in unrealised gains and
losses on investment assets
Unrealised gains at 1st April 2020
Less: Unrealised gains to 31 March 2021
Unrealised gains at 31st March 2021		 Unrestricted
funds
£
-

3,847,469

(3,847,469)
-

-

-
-
-		 Expendable
endowment
£
24,346,410

(1,233,439)
(25,970)

23,087,001

7,166,356
3,488,779
3,677,577

7,166,356		 2021
Total funds
£
24,346,410
2,614,030
(3,873,439)
**23,087,001 **
7,166,356
3,488,779
3,677,577
7,166,356

14 Related party transactions

Other than the transactions disclosed in note 8, there were no other related party transactions in the year ended 31 March 2021 (2020: none).

Page: 25