## **THE INNER TEMPLE SCHOLARSHIP FUND** 

## Financial Statements 

31 December 2022 

Registered Charity No 285942 



## **The Inner Temple Scholarship Fund** 

## **Index to the financial statements for the year ended 31 December 2022** 

||Pages|
|---|---|
|Report of the Trustees|2 – 6|
|Report of the independent auditors|7|
|Statement of financial activities|10|
|Balance sheet|11|
|Cash flow statement|12|
|Notes to the financial statements|13 - 18|



1 



**The Inner Temple Scholarship Fund** 

## **Report of the Trustees for the year ended 31 December 2022** 

## **Objectives and activities** 

The Inner Temple Scholarship Fund is a registered charity established by gifts or legacies to advance legal education among students and junior barristers of the Honourable Society of the Inner Temple by such means as are charitable and particularly by means of the award of scholarships and grants. 

The funds are all invested with Veritas Investment Management.  Investment policy is supervised on behalf of the Trustees by the Investment Committee of the Honourable Society of the Inner Temple.  Decisions about the award of scholarships are made by the Scholarships Committee of the Honourable Society of the Inner Temple. 

The Trustees have given due regard to the Charity Commission guidance on Public Benefit. 

## **Achievements and performance** 

There were no significant changes to the eligibility criteria or the application process for scholarships, prizes and awards in the year. £59,139 (2021 - £90,412) was contributed by the Fund to The Honourable Society of the Inner Temple towards the cost of scholarships awarded by the Inn during the year, together with £10,617 which was transferred to the Inner Temple Benefactors’ Scholarship Fund to meet the balance of the cost of the Peter Taylor Scholarship (2021 - NIL). 

The Fund will continue to distribute its surpluses to the Inn.  Its investment policy is designed to maximise real returns on a rolling five-year view with emphasis on capital growth with income. 

## **Financial review** 

All revenues are used for charitable activities. The Fund’s investments lost 8.5% (2021 gain: 20.6%) in the year. Investment values decreased during the year with £634,604 of realised and unrealised losses. Investment income of £69,619 was lower when compared to the previous year (2021 - £58,829). 

## **Principal risks and uncertainties** 

The Trustees have identified the major risks to which the fund is exposed and have satisfied themselves that adequate systems are in place to mitigate those risks. 

The major risks are set out as follows: 

- Currency risk: this is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in foreign exchange rate; 

- Interest rate risk: this is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in the market interest rate; 

- Other price risk: this is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risks), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. 

The Trustees aim to apply income as fully as possible in the year in which it arises. The level of funds at the yearend was £6,665,468 (2021 - £7,357,447) and was fully represented by the permanent endowment fund. There was no balance in restricted income reserves as at 31 December 2022 (2021 – £NIL). 

2 



**The Inner Temple Scholarship Fund** 

## **Report of the Trustees for the year ended 31 December 2022 (continued) Reserves policy** 

## **Transfer between funds** 

Transfer between funds represents the movement between restricted income and endowment funds, relating to the investment income and fees paid to the investment managers. 

There are no free unrestricted reserves at the year-end for the charity due to the nature of how the charity operates. All income is generated and recognised within restricted funds from endowed investments during the year and subsequently this is spent on underlying activities of the charity. The Charity’s expenditure is adjusted to the income level generated in the year. 

## **Structure governance and management** 

The Charity’s Trustees are the four Governing Benchers elected by the Treasurer and Masters of the Bench of the Honourable Society of the Inner Temple to act as Trustees of the Honourable Society.  Legal title to the Charity’s investments is vested in the four Trustees.  They act in accordance with decisions made by the appropriate committees of the Bench, provided they are satisfied that those decisions have been properly reached and are within the power of the committee.  The committees which make decisions affecting the Charity are the Investment Sub-Committee and the Scholarships and Outreach Committee. 

New Trustees are advised of their role, duties and responsibilities on appointment, by reference to the Bench Table Orders of the Honourable Society of the Inner Temple. 

Day-to-day management of the Charity is undertaken by the staff of the Honourable Society of the Inner Temple, acting in accordance with policies and procedures laid down by the Society. 

The Charity’s Trustees recognise the legal obligation to oversee and report on the Inner Temple Scholarship Fund’s fundraising activities. 

The Inner Temple Scholarship Fund does not use Direct Marketing for its fundraising activities and is not therefore registered with the Fundraising Regulator. It does not have any direct contact with vulnerable people hence no Vulnerable People Protection Policy is currently in place. 

Any donations or bequests are welcome and given voluntarily, usually by members of the Inner Temple. Any Gift Aid forms are securely stored in order to protect donors’ personal data. The personal data is used only for Gift Aid tax claims and is not used for mailing, distribution or other fundraising purposes.  No Personal Data is sold to third parties. 

Currently no third parties are used for fundraising purposes but if they are used in future the third parties would be expected to maintain a high standard of fundraising practice. 

There were no fundraising complaints from donors or the general public in 2022 or any prior years. Any complaint would be taken seriously and investigated thoroughly. 

## **Investment Sub-Committee** 

This Committee comprises Benchers and other members of the Honourable Society of the Inner Temple. Among the Bencher members are Honorary Benchers chosen for their particular expertise in investment matters.  The Sub-Committee meets quarterly to review investment performance and to consider changes to policy.  It is advised by an independent investment consultant. 

3 



**The Inner Temple Scholarship Fund** 

## **Report of the Trustees for the year ended 31[st] December 2022 (continued)** 

## **Scholarships Committee** 

This Committee comprises Benchers and other members of the Honourable Society of the Inner Temple.  It meets throughout the year to set policy for the awarding of scholarships and to assess applications. 

As a matter of course, the Fund distributes its entire net surplus to the Honourable Society of the Inner Temple as a contribution towards the greater cost of the Inn’s scholarship awards. 

## **Investments policy and performance** 

The Trustees aim to maximise real return on a rolling five-year view with emphasis on capital growth with income. Investment performance during the year equated to -8.5% (2021: 20.6%) net of fees. Investment income on the Charity’s funds is paid out by the manager (Veritas) to generate funds for the payment of scholarships. 

4 



**The Inner Temple Scholarship Fund** 

## **Report of the Trustees for the year ended 31 December 2022 (continued)** 

## **Reference and administration** 

|Charity Name & No:|The Inner Temple Scholarship Fund. Charity number: 285942|
|---|---|
|Governing Instrument:|Declaration of trust dated 3 November 1982|
|Trustees:|The Trustees of the Inner Temple Scholarship Fund, set up by the|
||declaration of trust, are:|
||The Rt Hon Sir Stephen Tomlinson|
||The Rt Hon Lord Justice Nugee|
||David Pittaway KC|
||Penelope Reed KC|
|Principal Address:|Inner Temple|
||London EC4Y 7HL|
|Bankers:|Royal Bank of Scotland|
||9-13 Paternoster Row|
||London EC4M 7EJ|
|Solicitors:|Forsters LLP|
||31 Hill Street|
||London W1J 5LS|
||Lewis Silkin LLP|
||5 Chancery Lane|
||Clifford’s Inn|
||London EC4A 1BL|
|Auditors:|Crowe U.K. LLP|
||55 Ludgate Hill|
||London|
||EC4M 7JW|
|Investment Managers:|Veritas Investment Management LLP|
||Riverside House|
||2A Southwark Bridge Road|
||London SE1 9HA|



Investment Powers: The Trustees have wide powers of investment. 

5 



**The Inner Temple Scholarship Fund** 

## **Report of the Trustees** 

## **for the year ended 31 December 2022 (continued)** 

## **Statement of Trustees’ responsibilities** 

The Trustees are responsible for preparing the Annual Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). 

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the charity’s constitution. 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. 

Approved for the Trustees on 26 October 2023 and signed on their behalf: 


The Rt Hon Lord Justice Nugee Trustee 

6 



**The Inner Temple Scholarship Fund Independent Auditor’s Report to the Trustees of the Inner Temple Scholarship Fund** 

## **Opinion** 

We have audited the financial statements of the Inner Temple Scholarship Fund (‘the charity’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance sheet, the Cash Flow Statement and notes to the financial statements, including 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: 

- give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **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 trustee's 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 charity's 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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. 

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 this gives rise to a material misstatement in the financial statements themselves. 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. 

7 



**The Inner Temple Scholarship Fund Independent Auditor’s Report to the Trustees of the Inner Temple Scholarship Fund (continued)** 

## **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 (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or 

- sufficient and proper accounting records have not been kept by the charity; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees 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 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 financial statements** 

We have been appointed as auditor under section of the Charities Act 2011, and report in accordance with the Acts and relevant regulations made or having effect thereunder. 

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. 

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. 

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. 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. 

We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 

8 



## **The Inner Temple Scholarship Fund** 

## **Independent Auditor’s Report to the Trustees of the Inner Temple Scholarship Fund (continued)** 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. We noted no additional laws and regulations in this context for the UK operations. 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. 

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Board about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations. 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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. 


**Crowe U.K. LLP** Statutory Auditor 

Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW 

Date: 30 October 2023 

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 

9 



**The Inner Temple Scholarship Fund** 

## **Statement of Financial Activities for the year ended 31 December 2022** 

|**RestrictedPermanent**<br>**Total**Restricted Permanent<br> **Notes**<br>**IncomeEndowment**<br>**2022**<br>IncomeEndowment<br>£<br>£<br>£<br>£                  £<br>**Income and endowments from**<br>Donations and legacies<br>Income from investments<br>2<br>69,619<br>**-**<br>**69,619**<br>58,829<br>**-**<br>Donations<br>-<br>**-**<br>**-**<br>29,176<br>Other Income<br>257<br>**-**<br>**257**<br>10<br>**-**<br>**Total income and endowments**<br>69,876<br>**-**<br>**69,876**<br>88,015<br>-<br>**Expenditure on raising funds**<br>Investment managers’ charges<br>57,494<br>**-**<br>**57,494**<br>56,192<br>-<br>Bank charges<br>1<br>**-**<br>**1**<br>1<br>-<br>57,495<br>**-**<br>**57,495**<br>56,193<br>-<br>**Expenditure on charitable activities**<br>Contribution to Peter Taylor Scholarship<br>10,617<br>**-**<br>**10,617**<br>-<br>-<br>Contributions towards total scholarships<br>awarded by the Inner Temple<br>59,139<br>**-**<br>**59,139**<br>90,412<br>-<br> <br>69,756<br>**-**<br>**69,756**<br>-<br>-<br>**Total expenditure**<br>127,251<br>**-**<br>**127,251**<br>146,605<br>-<br> <br> <br>Net (losses) / gains on investments3d<br>-<br>(634,604)**(634,604)**<br>-<br>1,255,134<br>**Net income / (expenditure)**<br>(57,375)<br>(634,604)<br>**(691,979)**<br>(58,590)<br>1,255,134<br>**Transfer between funds**<br>57,375<br>(57,375)<br>**-**<br>58,590<br>(58,590)<br>**Net movement in funds**<br>-<br>(691,979)<br>**(691,979)**<br>-<br>1,196,544<br>Fund balances brought forward<br>At 1 January 2022<br>**-**<br>**7,357447**<br>**7,357,447**<br>- 6,160,903<br> <br>**Fund balances carried forward**<br>**At 31 December 2022**<br>**- 6,665,468 6,665,468**<br>-<br>7,357447|Total<br>2021<br>£<br>58,829<br>29,176<br>10<br> <br>88,015<br> <br>56,192<br>1<br> <br>56,193<br>-<br>90,412<br>90,412<br>146,605<br>1,255,134<br>1,196,544<br>-<br>1,196,544<br>6,160,903<br>7,357,447|
|---|---|



All the above amounts relate to continuing activities. The notes on pages 13 to 18 form part of these financial statements. 

10 



## **The Inner Temple Scholarship Fund** 

## **Balance sheet as at 31[st] December 2022** 

|**Restricted**<br>**Permanent**<br>**Notes**<br>**Income**<br>**Endowment**<br>£<br>£<br>**Fixed assets**<br>Investments<br>3<br>**-**<br>**6,665,468**<br>**Current assets**<br>Debtors<br>4<br>**9,179**<br>**-**<br>Bank<br>**76,852**<br>**-**<br>**86,031**<br>**-**<br>**Creditors**: amounts falling due<br>within one year<br>5<br>**(86,031)**<br>**-**<br>**Net current assets**<br>**-**<br>**-**<br>**Total assets less current liabilities**<br>**-**<br>**6,665,468**<br>Represented by:<br>**The Inner Temple Scholarship**<br>**Fund**<br>1h, 8<br>**-**<br>**6,665,468**|**Total**<br>Total<br>**2022**<br>2021<br>£<br>£<br>**6,665,468**<br>7,357,447<br>**9,179**<br>8,713<br>**76,852**<br>98,847<br>**86,031**<br>107,560<br>**(86,031)**<br>(107,560)<br>**-**<br>-<br>**6,665,468**<br>7,357,447<br>**6,665,468**<br>7,357,447|
|---|---|



The financial statements on pages 10 to 18 were approved and authorised for issue by the Trustees on 26 October 2023 and signed on their behalf: 


The Rt Hon Lord Justice Nugee Trustee 

The notes on pages 13 to 18 form part of these financial statements. 

11 



**The Inner Temple Scholarship Fund** 

## **Cash flow statement For the year ended 31 December 2022** 

|Net cash underprovided by operating activities<br>Cash flow from investment activities<br>Dividends and interest from investments<br>Proceeds of sale of investments<br>Purchase of investment<br>Net cash provided by investing activities<br>Cash and cash equivalents in the reporting period<br>Cash and cash equivalents at the beginning of the<br>reporting period<br>Cash and cash equivalents at the end of the reporting<br>period|Note<br>11<br>12<br>12|2022<br>**(148,780)**<br>69,410<br>1,439,598<br>(1,382,223)<br> <br>**126,785**<br>(21,995)<br>98,847<br>**76,852**|2021<br>(225,443)|
|---|---|---|---|
||||57,921<br>1,497,430<br>(1,438,840)|
||||116,511|
|||||
||||(108,932)|
||||207,779|
||||98,847|



The notes on pages 13 to 18 form part of these financial statements. 

12 



**The Inner Temple Scholarship Fund** 

## **Notes to the financial statements for the year ended 31 December 2022** 

1. **Accounting policies** 

   - a) **Basis of accounting** 

      - The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. 

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

The Inner Temple Scholarship Fund constitutes a public benefit entity as defined by FRS 102. 

After making enquires, the Trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trustees Responsibilities on page 6. 

Having regard to the above, the current cash position, and expected cashflow over the following twelve months the Trustees believe it is appropriate to adopt the going concern basis of accounting in preparing the financial statements. 

- b) **Critical accounting judgements and key sources of estimation uncertainty** Sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies. No specific accounting judgements and uncertainties have been identified for the current year. 

- c) **Investments** 

Investments are included in the accounts at fair value.  Net realised and unrealised gains and losses are reflected in the Statement of Financial Activities as net gains/losses on investments. 

- d) **Income** 

Donations, interest and investment income are accounted for when receivable.  Legacies are accounted for when entitlement has been granted and the income is probable and measurable. 

- e) **Expenditure** 

Direct charitable expenditure comprises services supplied and activities undertaken, which are identifiable as wholly or mainly in support of the charity’s objectives.  The costs of generating funds relate to the management of the charity’s assets. The Charity has no direct employees or support costs in running the organisation. 

13 



## **The Inner Temple Scholarship Fund** 

## **Notes to the financial statements for the year ended 31[st] December 2022 (continued)** 

## f) **The Inner Temple Scholarship Fund** 

The Inner Temple Scholarship Fund is an approved charity registered with The Charity Commissioners in 1982. 

## g) **Taxation** 

- The Inner Temple Scholarship Fund is a registered charity and taxation is not applicable. 

## h) **Permanent endowments** 

These comprise funds donated by the Honourable Society of the Inner Temple for the purposes of generating income to support students wishing to train as barristers. 

## i) **Financial instruments** 

The Inner Temple Scholarship Fund has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. Financial liabilities held at amortised cost comprise bank loans and overdrafts, trade and other creditors. 

Investments, including bonds held as part of an investment portfolio are held at market value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. 

## 2. 

|**Investment income**<br>UK equities<br>Foreign equities<br>Fixed income|**2022**<br>£<br>10,964<br>35,814<br>22,841<br>**69,619**|**2021**<br>£<br>6,067<br>37,669<br>15,093|
|---|---|---|
|||**58,829**|



## 3. **Investments** 

## (a) **Reconciliation of movement in investment assets** 

|Market value at 1 January 2022<br>Additions to investments at cost<br>Disposals at carrying value<br>Unrealised (loss)/ gains for the year<br>Market value at 31 December 2022|**2022**<br>£<br>7,357,447<br>983,757<br>(1,087,828)<br>(587,908)<br>**6,665,468**|2021<br>£<br>6,160,903<br>866,168<br>(708,646)<br>1,039,022|
|---|---|---|
|||**7,357,447**|



14 



**The Inner Temple Scholarship Fund** 

## **Notes to the financial statements for the year ended 31[st] December 2022 (continued)** 

## (b) **Analysis of investments** : 

|UK equities<br>Foreign equities<br>Fixed income<br>Cash<br>Historical cost at 31 December<br>(c)<br>**Reconciliation of movements in unrealised gains on**<br>**Investment assets**<br>Unrealised gain at 1 January 2022<br>Gain written back on disposal<br>Net (loss)/ gain on revaluation<br>Unrealised gain at 31 December 2022<br>(d)<br>**Net (loss) / gain on investment**<br>Unrealised (loss) / gain<br>Realised (loss) / gain<br>Net (loss)/ gain at 31 December 2022<br>4.<br>**Debtors**<br>Dividend income<br>5.<br>**Creditors**: Amounts falling due within one year<br>Amount due to The Honourable Society of the Inner<br>Temple<br>Amount due to The Peter Taylor Scholarship Fund<br>Accrued expenditure|**2022**<br>£<br>427,039<br>3,989,355<br>1,763,319<br>485,755 <br>**6,665,468**<br>**5,158,749**<br>**2022**<br>£<br>2,429,604<br>(334,977)<br>(587,908)<br>**1,506,719**<br>**2022**<br>£<br>(587,908)<br>(46,696)<br>**(634,604)**<br>**2022**<br>£<br>9,179<br>**9,179**<br>**2022**<br>£<br>59,139<br>10,617<br>16,275<br>**86,031**||2021<br>£<br>343,040<br>4,419,496<br>1,855,464<br>739,447|
|---|---|---|---|
||||**7,357,447**|
||||**4,927,843**|
||||2021<br>£<br>1,963,254<br>(572,672)<br>1,039,022|
||||**2,429,604**|
||||2021<br>£<br>1,039,022<br>216,112|
||||**1,255,134**|
||||2021<br>£<br>8,713|
||||**8,713**|
||||2021<br>£<br>90,412<br>-<br>17,148|
||||**107,560**|



15 



**The Inner Temple Scholarship Fund** 

## **Notes to the financial statements for the year ended 31 December 2022 (continued)** 

## **6. Financial instruments** 

|**Financial instruments**|||
|---|---|---|
||**2022**|2021|
||£|£|
|Financial assets measured at amortised cost|9,179|8,713|
|Financial assets measured at fair value|6,665,468|7,357,447|
|Financial liabilities measured at amortised cost|86,031|107,560|
|The Trust’s income, expense, gains and losses in respect of these financial instruments are|||
|summarised below:|||
||**2022**|2021|
||£|£|
|Total income for financial assets held at fair value|9,179|8,713|
|Total gains for financial assets held at fair value|1,260,800|2,445,619|
|Total losses for financial assets held at fair value|245,919|16,015|



## **7. Funds** 

## **(a) Permanent Endowment Funds** 

|The Inner Temple Scholarship Fund<br>The Inner Temple Scholarship Fund<br>**(b)**<br>**Restricted Income Funds**|**Balance at**<br>**1 Jan 2022**<br>**Capital**<br>**Additions**<br>**Losses**<br>**Transfers**<br>**Balance at**<br>**31 Dec 2022**<br>£<br>£<br>£<br>£<br>**7,357,447**<br>**-**<br>**(634,604)**<br>**(57,375)**<br>**6,665,468**|
|---|---|
||Balance at<br>1 Jan 2021<br>Capital<br>Additions<br>Gains<br>Transfers<br>Balance at<br>31 Dec 2021<br>£<br>£<br>£<br>£<br>6,160,903<br>-<br>1,255,134<br>(58,590)<br>7,357,447|
|||



|The Inner Temple Scholarship Fund<br>The Inner Temple Scholarship Fund|**Balance at**<br>**1 Jan 2022**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>**Balance at**<br>**31 Dec 2022**<br>£<br>£<br>£<br>£<br>£<br>**-**<br>**69,876**<br>**(127,251)**<br>**57,375**<br>**-**|
|---|---|
||Balance at<br>1 Jan 2021<br>Income<br>Expenditure<br>Transfers<br>Balance at<br>31 Dec 2021<br>£<br>£<br>£<br>£<br>£<br>-<br>88,015<br>(146,605)<br>58,590<br>-|



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**The Inner Temple Scholarship Fund** 

## **Notes to the financial statements for the year ended 31 December 2022 (continued)** 

## **8. Analysis of net assets** 

|**Fixed assets:**<br>Investments<br>**Current assets:**<br>Debtors<br>Cash at bank and in hand<br>Creditors: amounts falling due within one year<br>Inter-fund transfer|**2022**<br>**£**<br>6,665,468<br>9,179<br>76,852<br>(86,031)<br>**6,665,468**|2021<br>£<br>7,357,447<br>8,713<br>98,847<br>(107,560)|
|---|---|---|
|||**7,357,447**|



## **9. Audit fees** 

The Charity’s audit fees are paid by the Honourable Society of the Inner Temple. The Society paid £4,890 on account of the audit fees in 2022 (2021 - £4,290). 

**10. Trustees** None of the Trustees received any reimbursement of expenses or remuneration for their services during the year. 

## **11. Reconciliation of cash inflow from operating activities** 

|Net (expenditure) / income for the reporting period<br>(Losses) / gains on investments<br>Dividends<br>Other income<br>Operating deficit<br>Decrease in creditors<br>Net cash underprovided by operating activities|**2022**<br>£<br>(691,979)<br>634,604<br>(69,619)<br>(257)<br>(127,251)<br>(21,529)<br>**(148,780)**|2021<br>£<br>1,196,544<br>(1,255,134)<br>(58,829)<br>(10)|
|---|---|---|
|||(117,429)<br>(108,014)|
|||**(225,443)**|



## **12. Cashflow** 

## **(a) Analysis of short-term deposits and cash at bank as shown in the balance sheet** 

|Short-term deposits<br>Cash at bank<br>Cash and bank balances||At 1 Jan<br>2022<br>73,847<br>25,000<br>98,847||Cashflow<br>(21,995)<br>-<br>(21,995)||At 31 Dec<br>2022<br>51,852<br>25,000|
|---|---|---|---|---|---|---|
|||||||76,852|



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## **The Inner Temple Scholarship Fund** 

## **Notes to the financial statements for the year ended 31 December 2022 (continued)** 

## **(b) Reconciliation of net cash flow to movement in net cash** 

|Decrease in cash and short-term deposits<br>Movement in net debt<br>Net cash at 1 January 2022<br>Net cash at 31 December 2022|21,995|
|---|---|
||98,847|
||76,852|



## **13. Related party transactions** 

The Inner Temple Scholarship Fund distributes the residual surplus of the restricted income fund to the Honourable Society of the Inner Temple.  The fund accounted for a contribution of £59,139 towards the cost of the Inn’s scholarship awards in 2022 (2021 - £90,412). The amount of £59,139 in creditors (Note 5) represents the contribution due to the Inner Temple as at 31 December 2022 (2021 - £90,412). This balance is unsecured, interest -free and payable on demand. 

The Inner Temple paid the Inner Temple Scholarship Fund’s audit fees of £4,890 in 2022 (2021 - £4,290). 

In the reporting period the Inner Temple Scholarship Fund transferred £90,412 (2021 – £199,384) to the Honourable Society of the Inner Temple. 

The Inner Temple Scholarship Fund also transferred £10,617 to the Inner Temple Benefactors’ Scholarship Fund to meet the balance of the cost of the Peter Taylor Scholarship in 2022 (2021 – £NIL). The amount of £10,617 in creditors (note 5) represents the contribution due to the Peter Taylor Scholarship Fund (2021 - £NIL). 

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