2023-04-05-accounts - Educational Trust No 1 1982

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EDUCATIONAL TRUST NO.1 1982

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2023

Charity Number 286516

EDUCATIONAL TRUST NO.1 1982

CONTENTS PAGE

	Pages
Reference and Administration Details	1
Report of the Trustee	2 - 4
Independent Examiner’s Report	5
Receipts and Payments Account	6
Statement of Assets and Liabilities	7
Appendix 1	8

EDUCATIONAL TRUST NO.1 1982

REFERENCE AND ADMINISTRATION DETAILS

Corporate Trustee HSBC Trust Company (UK) Limited Current Directors of Corporate Trustee J Hewitson J Coyle P M Spencer Trust Manager S Hill Principal Office Forum 1 The Forum Parkway Whiteley Fareham Hampshire PO15 7PA Independent Examiner Frances Millar ACA RSM UK Tax and Accounting Limited Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TY Bankers HSBC Bank plc Forum 1 The Forum Parkway Whiteley Fareham Hampshire PO15 7PA Investment Managers HSBC UK Bank plc ---- 1 Centenary Square -- --- -Birmingham B1 1HQ

EDUCATIONAL TRUST NO.1 1982

REPORT OF THE TRUSTEE FOR THE YEAR ENDED 5 APRIL 2023

The Trustee presents its report together with the financial statements of the trust for the year ended 5 April 2023, which have been prepared on a receipts and payments basis. The financial statements have been prepared in accordance with the trust’s constitution and applicable law.

The purchase and sale of investments results from the day to day management of the investment portfolio by the investment managers. In accordance with the Charities Act, the financial statements have been prepared on the receipts and payments basis given that the definition of gross income excludes the receipt of any endowment, loans and proceeds from the sale of investments or fixed assets.

Structure, government and management

Educational Trust No.1 1982 is an unincorporated trust and is constituted under the Declaration of Trust dated 6 January 1983. The trust is a registered charity (no. 286516).

The Declaration of Trust created a trust fund, now known as the 1982 fund, whereby the income is to be paid or applied for the education of boys and girls at such schools as the Trustee in its absolute discretion thinks fit.

A Deed of Agreement dated 9 July 1985 created a second trust fund for the trust, known as the 1985 fund, whereby the income is to be paid or applied, as the Trustee in its absolute discretion thinks fit, for the benefit of the Pestalozzi Children’s Village Trust.

The corporate Trustee has appointed a designated trust manager to look after the affairs of the trust. The investment manager reviews the performance and provides recommendations on the structure of the investment portfolio.

The power to appoint additional Trustees is vested in the current Trustee and is exercisable in writing. Should new Trustees be appointed, the existing Trustee would take responsibility for their induction.

The Trustee has examined the major strategic, business and operational risks which the trust faces and confirms that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The main risk in the year was considered to be the variability of investment returns.

Objectives and activities

The objectives of the trust are to pay or apply the income of the fund for the benefit of individuals and charitable organisations in accordance with the Declaration of Trust. Charitable payments may also be made out of the capital fund at the discretion of the Trustee.

This is performed through the awarding of grants, as the Trustee considers grant making an effective method of delivering these objectives. The trust manager reviews applications for grants when received. Grants are awarded at the discretion of the Trustee.

Achievements and performance

During the year 5 grants totalling £34,301 (2022: 12 grants totalling £54,733) were awarded to individuals and charitable institutions under the terms of the governing document. The beneficiaries are disclosed in Appendix 1 of the accounts.

EDUCATIONAL TRUST NO.1 1982 REPORT OF THE TRUSTEE cont. FOR THE YEAR ENDED 5 APRIL 2023

Financial review

The trust received donations under the terms of the Declaration of Trust. The Trust is reliant on the investment income generated by these funds. The fund generated income of £71,413 (2022: £46,911) in the year, which facilitated the expenditure on charitable activities of £54,620 (2022: £76,106) of which £34,301 (2022: £54,733) was direct charitable expenditure in the form of grants to charitable institutions.

Investment policy

In accordance with the governing document, the Trustee has the power to invest in such stocks, shares, investments and property as it sees fit. The Trustee engaged HSBC UK Bank plc as investment managers. The policy is to adopt a low to medium risk investment strategy to protect, in absolute terms, the capital value of the fund whilst producing a sustainable and growing level of income, and also providing the potential for longer term growth of capital in real terms.

Reserves policy

The unrestricted funds, which are the free reserves of the trust, and which are represented by the income arising are paid over to beneficiaries throughout the year. It is not the policy of the trust to maintain specific reserves.

The expendable endowment funds represent those assets, which are held permanently by the trust and are principally investments. Income arising on the endowment fund can be used in accordance with the objects of the trust and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. The Trustee has the power to convert this fund into income.

Public benefit

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities. In particular, the Trustee considers how planned activities will contribute to the aims and objectives they have set.

Plans for the future

The Trustee intends to continue providing grants in a similar way to the recent past whilst retaining flexibility as to the timing and scale of grant making.

Related parties

The corporate Trustee and the investment manager are both wholly owned subsidiaries of HSBC Holdings plc.

In addition to those fees shown on page 6, as a result of the acquisition and disposal of investments, the trust pays transaction charges to HSBC Bank plc. The charges are calculated on a sliding scale at a percentage of the transactions value plus VAT and are added to or deducted from the cost of the investments or the disposal proceeds in accordance with UK standard accounting practice.

EDUCATIONAL TRUST NO.1 1982

REPORT OF THE TRUSTEE cont. FOR THE YEAR ENDED 5 APRIL 2023

Statement of Trustee’s responsibilities in relation to the financial statements

The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the trust’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, giving a true and fair view, the Trustee should follow best practice and:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in operation.

The Trustee is responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the trust and which enable them to ascertain the financial position of the trust and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) 2008 Regulations and the provisions of the trust deed.

The Trustee is responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustee and signed on their behalf:

………………………………………… HSBC Trust Company (UK) Limited

Date………………………………….. 28/12/2023

EDUCATIONAL TRUST NO.1 1982

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEE OF THE EDUCATIONAL TRUST NO.1 1982

I report to the Trustee on my examination of the financial statements of the Educational Trust No.1 1982 Charitable Trust for the year ended 5 April 2023, which are set out on pages 6 to 7.

Responsibilities and basis of report

As the Trustee of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit go beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the to be financial statements reached.

Frances Millar

Frances Millar ACA Chartered Accountant The Institute of Chartered Accountants in England and Wales

On behalf of RSM UK Tax and Accounting Limited Chartered Accountants Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TY

11-Jan-2024 Date:……………………………………….

EDUCATIONAL TRUST NO.1 1982

RECEIPTS AND PAYMENTS ACCOUNT FOR THE YEAR ENDED 5 APRIL 2023

Receipts Investment income Investment sales proceeds Proceeds from sale of investments Total receipts Payments Cost of generating funds Investment service charge Charitable activities Grants paid Other allocated costs Governance costs Independent examiner's fee Investment purchases Payments for purchase of investments Total payments Net (payments) / receipts Transfer of funds Cash invested at 6 April 2022 Cash invested at 5 April 2023	1982 Fund Unrestricted Endowment £ £ 47,590 - 47,590 - - 863,262 47,590 863,262 - 19,174 14,000 - 13,533 - 2,460 - 29,993 19,174 - 825,828 29,993 845,002 17,597 18,260 8,973 (8,973) 7,777 29,068 34,347 38,355	1985 Fund Unrestricted Endowment £ £ 23,823 - 23,823 - - 432,805 23,823 432,805 - 10,293 20,301 - 6,786 - - - 27,087 10,293 - 414,101 27,087 424,394 (3,264) 8,411 3,264 (3,264) - 14,446 - 19,593	Total 2023 Total 2022 £ £ 71,413 46,911 71,413 46,911 1,296,067 1,971,136 1,367,480 2,018,047 29,467 30,992 34,301 54,733 20,319 21,373 2,460 3,930 86,547 111,028 1,239,929 1,913,985 1,326,476 2,025,013 41,004 (6,966) - - 51,291 58,257 92,295 51,291

These unaudited financial statements have been subjected to independent examination. See report on page 5.

EDUCATIONAL TRUST NO.1 1982

STATEMENT OF ASSETS AND LIABILITIES AS AT 5 APRIL 2023

	1982 Fund 1985 Fund	1982 Fund 1985 Fund	1982 Fund 1985 Fund
	Unrestricted	Endowment Unrestricted		Endowment
Investments UK fixed interest securities Overseas fixed interest securities Overseas equities Alternative investments Other trust assets Cash Total Assets Liabilities Professional fees payable	Funds £ - - - - - 34,347 34,347 4,053	Funds £ 32,522 1,637,410 262,144 243,820 - 38,355 2,214,251 -	Funds £ - - - - - - - -	Funds £ 16,311 821,365 131,408 122,310 - 19,593 1,110,987 -	Total 2023 Total 2022 £ £ 48,833 49,590 2,458,775 2,601,436 393,552 902,386 366,130 - - 2 92,295 51,291 3,359,585 3,604,705 4,053 3,860

28/12/2023

Approved by the Trustee and authorised for issue on ........................................... and signed on its behalf by:

………………………………………… HSBC Trust Company (UK) Limited

These unaudited financial statements have been subjected to independent examination. See report on page 5.

EDUCATIONAL TRUST NO.1 1982

APPENDIX 1 BREAKDOWN OF CHARITABLE GRANTS

Institutions Gordonstoun School Pestalozzi Childrens Village Trust	Number of grants 3 2	Amount £ 14,000 20,301

	5	34,301

These unaudited financial statements have been subject to independent examination. See report on page 5.