THE CHARLES WALLACE PAKISTAN TRUST
REPORT AND FINANCIAL STATEMENTS
for the year ended
31 August 2021
Registered Charity No 283337
CHARLES WALLACE PAKISTAN TRUST ANNUAL REPORT
Financial year 2020-21 (1 September – 31 August)
TRUSTEES AND ADVISERS
| Trustees Secretary Address Website Independent Examiner Bankers Charity Number Investments |
Professor Sarah Ansari (Chair) Mr Peter Elborn OBE Dr Farzana Shaikh Ms Nada Raza Dr Shehla Zaidi Professor Adnan Khan Mr Tim Butchard 4, Dorville Crescent London W6 0HJ www.wallace-trusts.org.uk S B Ison FCCA Thornton Springer Chartered Accountants 67, Westow Street London SE19 3RW Charities Aid Foundation CAF Bank Ltd 25, King’s Hill Avenue King’s Hill West Malling Kent ME19 4JQ 283337 Investec Wealth & Investment 2, Gresham Street London EC2V 7QN |
|---|---|
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Report of the Trustees For the Year Ended 31st August 2021
The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of 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 2015).
1. Background
The Charles Wallace Pakistan Trust was set up by means of a Declaration of Trust dated 24 June, 1981, amended by a Deed of Variation dated 28 February, 2002, and by a further Deed of Variation dated 12 June, 2017, and is registered with the Charity Commissioners as Charity Number 283337.
2. Objectives and Activities
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Under the Declaration of Trust, the trustees are empowered to use all or any of the capital or income of the fund for the provision of financial assistance for either:
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a. Men and women of Pakistani nationality who are domiciled and normally resident in Pakistan to enable them to travel to the United Kingdom to follow a course of study, research or other
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ed cational p rs it or
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b. Any charitable educational institution in the United Kingdom serving persons of Pakistani nationality domiciled and normally resident in Pakistan.
In the event of the trust failing, the trustees are empowered to use funds for charitable purposes generally
Public benefit
The Trusties have complied with their duty to have regard to the Charity commission's published guidance on the public benefit requirements. The public benefit of the charity's activities are outlined under objectives and activities above.
3. Trustees
The operations of the Trust are governed by a Board of Trustees, consisting of a Chair, up to six Trustees, and a Secretary. In 2016-17, the British Council resigned as a Corporate Trustee, and revised Trust Deeds were approved to accommodate this change. The Chair, the Secretary, and new Trustees are appointed by the Trustees. Although designated a Corporate Trustee, in recent years the Pakistan High Commission has chosen not to be represented on the Board. In September, 2019, Dr Shehla Zaidi was welcomed onto the Board, and in early 2020 both Dr David Taylor and Mr David Martin stepped down, the former after many years valued service. In July, 2020, Professor Adnan Qadir Khan accepted an invitation to join the Board.
4. Financial position
This was the fortieth year of operation of the trust, and as at 31 August, 2021, the financial position was as follows:
| was as follows: | ||||
|---|---|---|---|---|
| 2020-21 | 2019-20 | 2018-19 | ||
| Investment funds: | 1,953,784 | 1,744,428 | 1,871,191 | |
| Total income: | 58,779 | 63,379 | 73,502 | * |
| Expenditure on awards: | 18,000 | 45,514 | 69,673 | |
| Admin. expenses: | 4,255 | 5,816 | 7,115 | |
| Admin. as %age of activity: | 23.64% | 12.78% | 10.21% | |
| Invest.fees as %age of income: | 16.58% | 16.58% | 16.58% |
5. Notes on the above summary (2020-2021)
The audited accounts for 2020-21 accompany this report. It is abundantly clear from the above figures that the impact of the covid pandemic has had a devastating impact on the normal activities of the trust. The trust aims to bring suitably-qualified Pakistanis to the UK on short professional and research visits. Since travel was initially restricted, and then barred altogether, between the two countries, the only activity which could continue as normal was the Doctoral Bursaries Programme: grants to doctoral students already in the UK. All other programmes were postponed indefinitely for the duration of the pandemic travel restrictions, though one individual was supported on the British Museum’s 2021 International Training Programme, the early stages of which are being conducted by the museum at a distance.
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6. Investment update
The impact of the pandemic outweighed any other factor influencing world markets during the financial year. Astonishingly, the signs of recovery which were evident towards the end of 2019-20 continued, and substantial economic activity proved possible, even as successive lockdowns occurred and large sections of the UK workforce worked from home. By the end of the year, the roll-out of effective vaccination programmes had transformed working environments in most of the countries in which the trust’s investments are held, and those who predicted a world recession were proved wrong. The Trust was unable to meet its obligations to its beneficiaries, but was able, as a result, to continue building up a surplus on its current account for future deployment. At the close of the year this amounted to just over £66k.
7. Policy changes during the year
The trust’s principal concern was not the impact of the pandemic upon its investments, which on the whole have been holding steady, but its impact upon the future stability of the British Council, our partner in Pakistan. It has become clear in recent months that the prolonged closure of the Council’s language schools and examination businesses around the world has had a devastating impact on its resources and led to the closure of several of its international offices. The Pakistan office will survive, but some of its operations, including its support for CWPT, will henceforth be managed regionally. It is not yet clear how this will work in practice, nor how it will impact on our beneficiaries. One aspect of the new relationship will be our obligation to contribute towards the staff costs of those administering CWPT programmes. The figures tabled so far have been modest and manageable. As a token of our long-standing relationship with the Council and of our goodwill towards that organisation, we have accepted their initial estimate of these costs, and waived the protection against staff charges given to us under the 3-year bilateral agreement signed between the Council and CWPT in March, 2020. It remains to be seen how the new relationship will work in practice.
8. Grant-funded activity in 2020-21
8.1 Open Visiting Fellowships
11 candidates had been selected during the Secretary’s visit to Pakistan in May, 2019, but only four of these were able to take up their awards in the UK before the pandemic took hold in 2020. The remaining seven awards will continue to be held over into 2021-22. Meanwhile recruitment for 2020-21 was unable to take place, and eventually it was agreed that the 202021 programme would be cancelled altogether.
8.2 Reserved Visiting Fellowships
Oxford: The Reserve Fellow recruited by Oxford’s Contemporary South Asian Studies Programme at St Antony’s College was prevented by the pandemic from taking up his award, which will be held over until January, 2022.
SOAS: Recruitment by the South Asian Institute has been postponed until the latter quarter of 2021.
LSE: At the time of writing, no visiting fellows will be admitted to LSE’s South Asia Centre during the next academic year, 2021-22.
Nottingham: The Asia Research Institute has not yet decided whether to attempt a recruitment this autumn.
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8.3 Doctoral Bursaries
Thirteen final-year doctoral students were supported with grants of £1,000, and one further ‘emergency grant’ of £500 was awarded to Muhammad Naeem, whose completion had been postponed by the pandemic. Their names are as follows:
Name Subject University Muhammad Naeem Education Plymouth Marjon Nayab Nawaz Cell Biology Manchester Talha Shafi Structural Biology Manchester Md Babar Suleman Fine Art Oxford Khursheed Ahmad Liguistics Aberdeen Sara Jabeen Economics Leicester Nauman Hafeez Bio-engineering Brunel Salman Asghar Design Loughborough Zia-Ul-Hassan Khan Economics Essex Dr Qurat-Ul-Ain Wahid Cancer Sciences Loughborough Erum Haider Dental Sciences Manchester Faisal Batool Clinical Medicine Imperial Sadaf Sadaf Economics Leicester
8.4 Visiting Artists
The state of play in respect of the trust’s principal partners was as follows:
Gasworks Arts Centre: In early 2020,Gasworks recruited the artist and art teacher, Rameesha Azeem, from Lahore for their annual residency, which is sponsored jointly by the trust and the Rangoonwala Foundation. Her visit to the UK has twice been delayed and has now been postponed until 2022.
Prince’s School of Traditional Arts: The Quetta-based artist, Mahzaib Zain Baloch, was recruited in 2020 but unable to take up her award. She and the School have now agreed that she can take up her award in September, 2022.
British Museum: After several false starts, the Museum has now embarked on their International Training programme, starting with a series of e-learning sessions. The delegates, including our beneficiary, Iffat Azeem, Research Officer at the Lahore Museum, will come to the UK in March, 2022, but in the meantime we accepted the Museum’s request for an advance payment of £5,000 towards costs arising on her behalf in advance of her UK visit.
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9.
| Administrative expenses Trustees’ meetings Accountable costs Sec’s honorarium Sec’s fixed overheads Sec’s visit to Pakistan Audit fee (Thornton Springer) Bank charges TOTAL: |
2020-21 2019-20 2018-19 - 81 209 36 292 358 2,500 2,500 2,500 432 432 432 - 651 1,756 1,200 1,800 1,800 87 60 90 |
|---|---|
| 4,255 5,816 7,145 |
10. Summary
2020-21 was dominated by the devastating impact of the Corona virus which halted all international activity. The immediate future remains uncertain but at least there are some grounds for expecting activity to pick up again in 2021-22, and at least the trust’s coffers are full.
Signed………………………………… Signed……………………………… Date…………………………………… Date……………………………….. Professor Sarah Ansari Tim Butchard Chairman
Signed………………………………
Tim Butchard Secretary
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The Charles Wallace Pakistan Trust
Independent Examiner's Report to the Trustees
I report on the accounts for the year ended 31 August 2021 set out on pages seven to eleven.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year (under Section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is required.
It is my responsibility to:
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examine the accounts under Section 145 of the 2011 Act
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to follow the procedures laid down in the General Directions given by the Charity Commission (under Section 145(5)(b) of the 2011 Act); and
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to state whether particular matters have come to my attention.
Basis of the independent examiner's report
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view ' and the report is limited to those matters set out in the statements below.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that, in any material respect, the requirements
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to keep accounting records in accordance with Section 130 of the 2011 Act; and
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to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act
have not been met; or
(2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be
S B Ison FCCA Thornton Springer LLP Chartered Accountants 67 Westow Street Upper Norwood London SE19 3RW
Date: .............................................
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THE CHARLES WALLACE PAKISTAN TRUST
STATEMENT OF FINANCIAL ACTIVITIES
for the year ended 31 August 2021
| Note INCOME: Donation Incoming resources from generated funds: Income from investments: From portfolio 5 Interest TOTAL INCOME EXPENDITURE ON: Raising funds : Investment Management costs Charitable Activities: Direct: Charitable expenditure 3 Indirect: Support costs 4a Governance costs 4b TOTAL RESOURCES EXPENDED Net movement in in funds OTHER RECOGNISED GAINS & LOSSES Net gains / (losses) on investments Net income Transfer between funds Gains/(losses) on revaluation of investments NET MOVEMENT IN FUNDS Fund balances brought forward Fund balances carried forward |
41,621 41,621 185,592 227,213 1,788,142 2,015,355 £ Capital Fund |
Unrestricted Funds - 58,779 - 58,779 8,267 18,000 3,055 1,200 30,522 28,257 28,257 - 28,257 (1,252) £27,005 |
2021 Total Funds - 58,779 - 58,779 8,267 18,000 3,055 1,200 30,522 28,257 41,621 69,878 185,592 255,470 1,786,890 2,042,360 £ |
2020 Total Funds |
||
|---|---|---|---|---|---|---|
| - | ||||||
| 63,379 - |
||||||
| 63,379 | ||||||
| 10,958 45,514 4,016 1,800 |
||||||
| 62,288 | ||||||
| 1,091 - |
||||||
| 1,091 | ||||||
| (150,683) | ||||||
| (149,592) 1,936,482 |
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| 1,786,890 £ |
The income and expenditure of the general funds are unrestricted.
There were no recognised gains or losses for either 2020 or 2019 other than those included in the Statement of FinancialActivities. The income and results derive from continuing activities.
The notes form part of these financial statements.
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THE CHARLES WALLACE PAKISTAN TRUST
BALANCE SHEET
as at 31 August 2021
| FIXED ASSETS Listed Investments CURRENT ASSETS Debtors Cash at bank and brokers LESS: CURRENT LIABILITIES Creditors - amounts falling due within one year: NET CURRENT ASSETS NET ASSETS The funds of the charity (all unrestricted) : Capital Fund General Funds |
Notes | 1,953,784 12,509 82,267 94,776 6,200 88,576 £2,042,360 2,015,355 27,005 £2,042,360 2021 |
1,744,428 11,749 32,513 44,262 1,800 42,462 £1,786,890 1,788,142 (1,252) £1,786,890 2020 |
1,744,428 11,749 32,513 44,262 1,800 42,462 £1,786,890 1,788,142 (1,252) £1,786,890 2020 |
|---|---|---|---|---|
| 6 9 10 |
||||
| 94,776 6,200 |
44,262 1,800 |
|||
| £1,786,890 | ||||
| 1,788,142 (1,252) |
||||
| £1,786,890 |
The notes form part of these Accounts.
The financial statements were approved by the Trustees on
………………………………….
………………………………….
Trustees
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THE CHARLES WALLACE PAKISTAN TRUST
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 August 2021
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ACCOUNTING POLICIES
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a. The accounts have been prepared under the historical cost convention (as amended by valuing investments at market value), in accordance with applicable accounting standards, current statutory requirements and the Statement of Recommended Practice for Charities.
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b. Direct currency conversions are translated at the exchange rate at the time of transaction; other balances are converted at year end rates; any difference arising on exchange is written off in the year concerned.
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c. The Trust’s financial statements have been prepared to comply with “Accounting and Reporting by Charities” the Statement of Recommended Practice (SORP), produced by the Charity Commission in 2005 and thus with the accounting requirements of the Charities Act 1993.
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d. Quoted investments are shown at the midpoint market value.
Both realised and unrealised gains/losses are credited or charged to the Statement of Financial Activities.
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e. Income from investments is included in the Statement of Financial Activities in the period as receivable. Deposit interest is credited on the due dates.
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f. All grants payable are recognised in the financial statements when the award is authorised by the trustees and paid.
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g. No permanent endowments have been received in the period.
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h. In accordance with Financial Reporting Standard number 1, no cash flow statement is included in these financial statements as the Charity is covered by the small entity exemption.
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i. The Charity is exempt from taxes on income and capital gains under the provisions of section 505 Income and Corporation Taxes Act 1988. The Charity is not exempt from VAT; irrecoverable VAT is included within the expense heading to which it relates.
2. STATEMENT OF TRUSTEES’ RESPONSIBILITIES REGARDING THE FINANCIAL STATEMENTS
The Trustees accept that it is primarily their responsibility:
- a. to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of its results for that period;
and to achieve that end:
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b. to select suitable accounting policies and apply them consistently;
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c. to make judgements and estimates that are reasonable and prudent; and
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d. to prepare the financial statements on a going concern basis unless it is inappropriate.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Trust. 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.
The financial statements comply with current statutory requirements and with the Trust’s governing document.
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THE CHARLES WALLACE PAKISTAN TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 August 2021
| 3 DIRECT CHARITABLE EXPENDITURE Doctoral bursaries Reserved Visiting Fellowships Open Visiting Fellowships Visiting artists 4. a INDIRECT SUPPORT COSTS Secretary’s Honorarium Travel expenses Sundry administration expenses |
2021 13,000 - - 5,000 18,000 2,500 - 555 3,055 |
2020 7,750 11,456 11,954 14,354 |
|---|---|---|
| 45,514 | ||
| 2,501 651 864 |
||
| 4,016 |
Since the vast majority of support costs are related to the principal charitable activity of grant making, no apportionment is made to the Governance heading in the financial statements.
4.b GOVERNANCE COSTS
| Independent Examiner's remuneration 5. INVESTMENT INCOME Quoted stocks and shares Interest receivable 6. INVESTMENTS Quoted on the UK Stock Exchange Market value at 1 September 2020 Additions Sale proceeds Realised loss on sale Unrealised profit on revaluation adjustment Market value at 31 August 2021 Cost 31 August 2021 Cost 31 August 2020 The following holdings represent more than 5% of the total value : 1630 Vanguard Funds Plc |
1,200 58,779 - 58,779 1,744,428 348,050 (367,768) 41,621 185,592 1,861 1,953,784 1,488,274 1,430,810 101,920 |
1,800 |
|---|---|---|
| 63,379 - |
||
| 63,379 | ||
All quoted investments are stated at market value. The basis used is the mid point price as at 31 August 2021.
7. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Investments Current assets |
Capital Fund 1,953,784 61,571 2,015,355 |
General Fund 0 27,005 27,005 |
2021 Total Funds 1,953,784 88,576 2,042,360 |
2020 Total Funds 1,745,725 41,165 |
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|---|---|---|---|---|---|---|---|---|
| 1,786,890 |
The capital fund is a designated fund. The Trustees have the power, when required and in accordance with the Trust Deed, to use the capital or income in accordance with the charity's objectives as set out in note 2 of the Trustees' Report.
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THE CHARLES WALLACE PAKISTAN TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued) for the year ended 31 August 2021
| 8. MOVEMENT IN FUNDS At 1.9.20 Net movement in funds Capital Fund 1,788,142 227,213 General Fund (1,252) 28,257 1,786,890 255,470 9. DEBTORS Accrued income 10. Accruals and other creditors CREDITORS (amounts falling due within one year) |
Transfers between funds - - - 2021 £12,509 £6,200 |
At 31.8.21 2,015,355 27,005 |
|
|---|---|---|---|
| 2,042,360 | |||
| 2020 £11,749 |
|||
| £1,800 |
11. TRUSTEES
There were no transactions involving Trustees or other related parties for the period under review.
No Trustee or other connected persons received any remuneration or expenses from the Charity in the current or preceding year.
12. RELATED PARTY
The Trust acknowledges the British Council as a related party. The Visiting Fellowships Programme is arranged in conjunction with the Council. Awards payable to the Visiting Fellows are made available throughthe Council, which does not itself retain any pecuniary benefit.
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