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2020-12-31-accounts

THE XEROX (UK) TRUST

(A Company Limited by Guarantee)

Governors’ Report and Financial Statements

for the year ended

31 December 2020

Company Registration Number: 1625848 Charity Registration Number: 284698

The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

CONTENTS
Governor’s Report 1-4
Auditor’s Report 5-7
Statement of Financial Activities 8
Balance Sheet 9
Statement of Cash Flows 10
Note to the Accounts 11-16

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

Governors’ Report and Financial Statements for the year ended 31 December 2020

Governors

J McMahon C Walsh P Watson M Godber

Secretary

C Walsh

Registered Office

Building 4 Uxbridge Business Park Sanderson Road Uxbridge Middlesex UB8 1DH

Auditors

Haysmacintyre LLP 10 Queen Street Place

London EC4R 1AG

Bank

HSBC Bank plc

Fund Manager

St James’ Place Wealth Management

Registered Numbers

Company No: 1625848 Charity No: 284698

Governing Instrument

Memorandum & Articles of Association dated 30 March 1982

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

GOVERNORS’ REPORT

ACCOUNTS

The Governors, who act as directors for the purposes of company law, present the report and financial statements for the year ended 31 December 2020. The results of activities for the year under review are set out in the accounts on page 8.

Legal and administrative information set out on page 1 forms part of this report. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the financial statements and comply with the current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice, “Accounting and Reporting by Charities” (Charities SORP – FRS 102 second edition, effective 1[st] January 2019).

STRUCTURE AND OBJECTIVE

The Trust is a private company limited by guarantee and does not have share capital. It is registered with the Charity Commission (No: 284698) and is managed by the Board of Governors. The sole objective of the Trust is the provision of financial and other support exclusively for charitable purposes, according to the laws of England currently in force, by making donations to various charitable organisations, detailed in Note 6.

The Governors are employees of Xerox who are selected and appointed for their suitability and experience within the Company. Governors are elected at Annual General Meetings or appointed in accordance with the articles of association (articles 30 and 32 respectively).

RELATED PARTIES

The Trust has a very close relationship with Xerox (UK) Limited (company registration number: 330754). The Xerox (UK) Trust is owned by Xerox Limited (see Note 13).

REVIEW OF ACTIVITIES

During the period, the Trust generated income of £37,133 (2019: £60,250) and made charitable disbursements totalling £10,164 (2019: £23,780) (see Note 6). The source of income resulted from investment income totalling £36,898 (2019: £45,052), fundraising activities totalling £235 (2019: £15,198) with NIL donations in the year (2019: NIL) based on the future strategy set out below.

Since 2016, Xerox graduates and industrial placements students have been engaged by the Governors to assist with fund-raising on behalf of The Trust. Due to Covid-19 fund raising activities have halted and the Governors are considering if fund raising activities are possible going forward.

The assets of the Trust at 31 December 2020 amounted to £1,210,665 (2019: £1,195,389). These assets are available and adequate to fulfil the obligations of the Trust. There have been no changes in policies since the last report.

FUTURE STRATEGY

Investments are managed by St James’s Place Wealth Management. The investment is intended to generate income and also provide capital growth to support the objective of the Trust going forward. The assets of the Xerox (UK) Trust were transitioned to a less risky strategy at the end of 2019 as advised by St James’ Place Wealth Management.

There has been very little impact as a result of COVID-19 to the asset value to the Trust year to date in 2021.

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

BOARD OF GOVERNORS

The Governors, who served throughout the year except as noted, were as follows:

Governors:

J Hopwood (Resigned 31 December 2020) J McMahon C Walsh P Watson M Godber Secretary: C Walsh

GRANT MAKING POLICY

The Trust invites written applications for funding from external parties and Xerox employees. The applications are reviewed by the Governors with a view to making grants of up to several thousand pounds to small charities concerned with the provision of direct aid to children and young people. Preference is given to requests supporting tangible projects and to charities recommended by Xerox (UK) Limited employees.

During the year £10,164 (2019: £23,780) of grants were made.

INVESTMENT POWERS, POLICY AND PERFORMANCE

Under the memorandum and articles of association, the Trust has the power to make any investment, which the Governors see fit. Investments resulted in a net gain of £47,077 (2019: net gain of £106,051). See Note 7.

PUBLIC BENEFIT

The Trustees have given careful consideration to the Charity Commission’s guidance on public benefit and confirm that they have given due regard to this guidance. The Trust provides a wide range of public benefits (see Note 6) with a particular emphasis on education and well-being and various health-related causes for children and young people.

RESERVES

As at 31 December 2020, the total reserves of the Trust amounted to £1,210,665 (2019: £1,195,389). The policy is to distribute all income received and provides sufficient funds to cover management, administration and support costs each year. The investments of the Trust are to be retained to generate income for its future activities. As at 31 December 2020, investments total £1,169,653 (2019: £1,139,976) leaving free reserves of £41,012 (2019: £55,413). The Governors are of the opinion that the current level of reserves whilst adequate is not excessive. The Governors will review the reserves policy annually.

RISK REVIEW

The Governors have examined the major strategic, business and operational risks, which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to mitigate these risks.

The key risk relates to the continued performance of investment assets to provide a regular income stream for the charity. To manage this risk the Trust have appointed a fund manager who reports to the board regularly on performance matters. As stated in our future strategy, the assets of the Xerox (UK) Trust were transferred into a less risky strategy as advised by its fund manager, St James’ Place Wealth Management at the end of 2019. There has been very little impact as a result of COVID-19 to asset value year to date and the Governors will continue to review the investment strategy on the advice of its fund manager to mitigate risk where necessary.

FUNDRAISING

Due to Covid-19, fund-raising activities were halted and as a result only one fundraising activity took place in 2020 which was a charity bake sale where the total amount raised was £235 (2019: £15,198).

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

RESPONSIBILITIES OF GOVERNORS

The Governors, as directors of the charitable company, are responsible for preparing the Governors’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the directors is aware at the time the report is approved:

AUDITORS

In accordance with Section 485 of the Companies Act 2006, a resolution for the re-appointment of Haysmacintyre LLP as auditors of the Trust is to be proposed at the forthcoming Annual General Meeting.

In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by Section 415A of the Companies Act 2006.

…………………………………………………. ………….………15 July………… 2021 Governor J McMahon By Order of the Board of Governors

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE XEROX (UK) TRUST

Opinion

We have audited the financial statements of The Xerox (UK) Trust Limited for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 financial statements 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.

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Governors’ Report and Accounts 2020

The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 4, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those

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Governors’ Report and Accounts 2020

The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Weaver (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London EC4R 1AG Date: 28 July 2021

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

STATEMENT OF FINANCIAL ACTIVITIES (Including the Summary Income and Expenditure Account) for the year ended 31 December 2020

2020
2019
£
£
Unrestricted
Funds
Unrestricted
Funds
INCOME FROM:
Other Trading Activities (Note 3)
235
15,198
Investment Income (Note 4)
36,898
45,052
Total Income
37,133
60,250
EXPENDITURE ON:
Raising Funds (Note 5)
(17,400)
(17,503)
Charitable Expenditure:
Grants Paid / Payable (Note 6)
(10,164)
(23,780)
Grants Cancelled
1,350
-
Support Costs – Audit Fee
(7,260)
(7,020)
Other Expenses
-
-
Total Expenditure
(33,474)
(48,303)
Net Income /(Expenditure) before NET
Gain/(Loss) on Investments
3,659
11,947
Net Gain / (Loss) on Investments (Note 7)
11,617
106,051
Net Movement in Funds
15,276
117,998
Fund Balances Brought Forward
1,195,389
1,077,391
Fund Balances Carried Forward
1,210,665
1,195,389

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

All comparative figures were also unrestricted and have been represented under FRS (SORP 2019) on the Statement of Financial Activities.

The notes on pages 11 to 16 form part of these accounts.

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

BALANCE SHEET as at 31 December 2020

Company Registration Number: 1625848

2020
£
£
2019
£
£
FIXED ASSETS
Investments (Note 7)
1,169,653
1,139,976
CURRENT ASSETS
Debtors (Note 8)
11,007
Cash at Bank and in Hand
42,329
14,042
124,251
53,336 138,293
CREDITORS: Due Within One Year
Creditors (Note 9)
(7,260)
Grants payable (Note 9)
(5,064)
Purchase of Investments (Note 9)
-
(7,020)
(5,860)
(70,000)
Net Current Assets
41,012
55,413
Net Assets
1,210,665
1,195,389
FUNDS
Unrestricted
1,210,665
1,195,389
Total Funds
1,210,665
1,195,389

The accounts have been prepared in accordance with the special provisions relating to small companies within part 15 of the Companies Act 2006.

Approved and authorised for issue by the Board of Governors on …………………15 July 2021 .

………………………………………………….…..

Governor P Watson

The notes on pages 11 to 16 form part of these accounts.

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

STATEMENT OF CASH FLOWS for the year ended 31 December 2020

2020 2019
£ £
Cash flows from operating activities (83,360) 49,818
Cash flows from investing activities
Dividends and interest from investments 36,898 45,052
Purchase of investments (87,634) (1,139,450)
Proceeds from sale of investments 52,174 1,069,450
-------------------- ------------------
Net cash provided by/(used) in investing activities 1,438 (24,948)
-------------------- ------------------
Change in cash and cash equivalents in the reporting period (81,922) 24,870
Cash and cash equivalents at the beginning of the reporting period 124,251 99,381
-------------------- ------------------
Cash and cash equivalents at the end of the reporting period 42,329 124,251
========== =========
NOTES TO THE CASH FLOW STATEMENT 2020 2019
£ £
Reconciliation of net income to net cash flow from operating
activities
Net income for the reporting period 15,276 117,998
(Gains)/losses on investments (11,617) (106,051)
(Increase)/decrease in debtors 3,035 56
Increase/(decrease) in creditors (70,556) 65,364
Dividends and interests (36,898) (45,052)
Investment management fees 17,400 17,503
-------------------- ------------------
Net cash provided by/(used) in operating activities (83,360) 49,818
========== =========
Analysis of cash and cash equivalents
Cash at bank and in hand 42,328 124,251
-------------------- ------------------
42,328 124,251
========== =========

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

NOTES TO THE ACCOUNTS

1. PREPARATION OF THE ACCOUNTS

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

NOTES TO THE ACCOUNTS

2. STATUS

The Xerox (UK) Trust is a private company limited by guarantee and does not have share capital. It is registered as a charity with the Charity Commission. Every member of the Trust undertakes to contribute to the assets in the event of the Trust being wound up whilst they are a member, or within one year after they cease to be a member, for payment of the liabilities of the Trust contracted before they cease to be a member, such amount as may be required, not exceeding £1.

3. OTHER TRADING ACTIVITIES

OTHER TRADING ACTIVITIES
2020 2019
Fundraising £235 £15,198
Total £235 £15,198

Fundraising income for 2020 is stated net of gross expenditure of £nil.

4. INVESTMENT INCOME

INVESTMENT INCOME
2020 2019
Distributions £36,846 £44,848
Bank Interest £52 £204
Total £36,898 £45,052

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

NOTES TO THE ACCOUNTS

5. RAISING FUNDS

RAISING FUNDS
2020 2019
Investment Management Fees £17,400 £17,503
Total £17,400 £17,503

6. GRANTS PAYABLE

Grants approved by the Trust during the period were as follows:

2020
Strongbones Children’s
Charitable Trust
£2,000
Rainbows Hospice for Children
& Young People
£3,100
Handicapped Children’s Action
Group
£2,064
Young & Free The Future of
Integration
£3,000

TOTAL PAYABLE 2019
£10,164
2019
A Child of Mine
£1,200
Brockworth Link
£2,000
Children’s Heart Foundation
£300
Phase
£2,020
NARA – The Breathing Charity
£1,400
Fight Against Blindness (FAB)
£550
Friends of Priestley School
£1,500
Levi’s Star
£2,000
Young Urban Arts Foundation
£1,900
Bexley Mencap
£2,000
Crackerjacks Children Trust
£2,050
Daisy’s Dream
£1,000
S.N.O.O.S.C
£1,000
The Children’s Charity
£1,500
Mind Angels
£350
The Gifted
£2,000
Hope 4 Kidz
£1,010
TOTAL PAYABLE 2019
£23,780

The grants to Handicapped Children’s Action Group and Young & Free The Future of Integration are included in creditors in note 9. These grants are payable during 2021, and have no performance-related conditions attached.

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

NOTES TO THE ACCOUNTS

7. INVESTMENTS

(a) St James’s Place Wealth Management

Invested in unit trusts managed by St James’s Place Wealth Management.

All realised and unrealised gains and losses on investments are included in the Statement of Financial Activities. Movements during the year in the value of listed investments were as follows:

Market Value at 1 January 2020
Additions
Proceeds from disposals
Management fee
Netgains on investments
£
1,139,976
87,634
(52,174)
(17,400)
11,617
Market Value at 31 December 2020 £1,169,653

The value of listed investments at the year end was £1,169,653 and since the year end the investment markets have been volatile as a result of COVID-19. As at 9th June 2021, the investment portfolio valuation was £1,200,855.

8. DEBTORS

DEBTORS
2020 2019
Accrued Investment Income £11,007 £14,042
Total Debtors £11,007 £14,042

Governors’ Report and Accounts 2020

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The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

NOTES TO THE ACCOUNTS

9. CREDITORS: DUE WITHIN ONE YEAR

CREDITORS: DUE WITHIN ONE YEAR
2020 2019
Audit Fee £7,260 £7,020
Grants Approved in 2019 (paid in 2020) - £5,860
Grants Approved in 2020 (paid in 2021) £5,064 -
Purchase of Investments Approved in 2019 (paid in - £70,000
2020)
Total Creditors £12,324 £82,880

10. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2020

Investments
Current Assets
Current Liabilities
Unrestricted Funds
Total Funds
£
£
1,169,653
1,169,653
53,336
53,336
(12,324)
(12,324)
1,210,665
£1,210,665

ANALYSIS OF NET ASSETS BETWEEN FUNDS 2019

Investments
Current Assets
Current Liabilities
Unrestricted Funds
Total Funds
£
£
1,139,976
1,139,976
138,294
138,294
(82,880)
(82,880)
£1,195,390
£1,195,390

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Governors’ Report and Accounts 2020

The Xerox (UK) Trust - A Company Limited by Guarantee Financial Statements

NOTES TO THE ACCOUNTS

11. FUNDS 2020

FUNDS 2020
At the start Income Expenditure Net realised At the end
of the year and unrealised of the year
gains / (losses)
£ £ £ £ £
Unrestricted Funds 1,195,389 37,133 (33,474) 11,617 1,210,665

FUNDS 2019

FUNDS 2019
At the start Income Expenditure Net realised At the end
of the year and unrealised of the year
gains / (losses)
£ £ £ £ £
Unrestricted Funds 1,077,391 60,250 (48,303) 106,051 1,195,389

12. RELATED PARTY TRANSACTIONS

Xerox (UK) Limited is owned by Xerox Capital (Europe) Limited which in turn is owned by Xerox Limited. The Xerox (UK) Trust is owned by Xerox Limited.

All staff are employed by Xerox and Xerox provides office space for The Xerox (UK) Trust. No fee is charged from Xerox for these services/ facilities.

The Governors constitute Directors of the Company for the purposes of the Companies Act 2006. None of the Governors received any remuneration or reimbursed expenses from the Trust during the period under review (2019: £NIL).

There were no other related party transactions during the current and prior year.

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Governors’ Report and Accounts 2020