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2024-04-05-accounts

EDUCATIONAL TRUST NO.1 1982

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2024

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 F Goldie-Scot 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 2024

The Trustee presents its report together with the financial statements of the trust for the year ended 5 April 2024, 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 Manager. 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 portfolios.

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 of 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 2 grants totalling £25,062 (2023: 5 grants totalling £34,301) were awarded to individuals and charitable institutions under the terms of the governing document. The beneficiaries are disclosed in Appendix 1 of the financial statements.

EDUCATIONAL TRUST NO.1 1982 REPORT OF THE TRUSTEE cont. FOR THE YEAR ENDED 5 APRIL 2024

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. These funds generated investment income of £98,355 (2023: £71,413) in the year, which facilitated the expenditure on charitable activities of £45,365 (2023: £54,620) of which £25,062 (2023: £34,301) 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 they see fit. The Trustee engaged HSBC UK Bank plc as an Investment Manager. 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 objectives 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 aims 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 accordance with the terms of the governing document 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 the 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 2024

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:

The Trustee is responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the trust. This enables them to ascertain the financial position of the trust and enables 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

19/11/24 Date…………………………………..

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 2024, 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 goes 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:

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements 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

22-Nov-2024 Date:……………………………………….

EDUCATIONAL TRUST NO.1 1982

RECEIPTS AND PAYMENTS ACCOUNT FOR THE YEAR ENDED 5 APRIL 2024

Receipts
Investment income
Investment sale proceeds
Proceeds from sales 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 purchases of investments
Total payments
Net (payments) / receipts
Transfer of funds
Cash invested at 6 April 2023
Cash invested at 5 April 2024		 1982 Fund
Unrestricted
Endowment
£
£
65,802
-
65,802
-
-
962,941
65,802
962,941
-
18,573
-
-
13,521
-
1,452
-
14,973
18,573
-
956,517
14,973
975,090
50,829
(12,149)
38
(38)
34,347
38,355
85,214
26,168		 1985 Fund
Unrestricted
Endowment
£
£
32,553
-
32,553
-
-
483,162
32,553
483,162
-
9,965
25,062
-
6,782
-
1,452
-
33,296
9,965
-
479,730
33,296
489,695
(743)
(6,533)
743
(743)
-
19,593
-
12,317		 Total 2024
Total 2023
£
£
98,355
71,413
98,355
71,413
1,446,103
1,296,067
1,544,458
1,367,480
28,538
29,467
25,062
34,301
20,303
20,319
2,904
2,460
76,807
86,547
1,436,247
1,239,929
1,513,054
1,326,476
31,404
41,004
-
-
92,295
51,291
123,699
92,295

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

EDUCATIONAL TRUST NO.1 1982

STATEMENT OF ASSETS AND LIABILITIES AS AT 5 APRIL 2024

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
Cash
Total Assets
Liabilities
Professional feespayable		 Funds
£
-
-
-
-
85,214
85,214
4,256		 Funds
£
36,388
1,878,816
164,657
286,310
26,168
2,392,339
-		 Funds
£
-
-
-
-
-
-
-		 Funds
£
18,248
942,201
82,560
143,623
12,317
1,198,949
-		 Total 2024
£
54,636
2,821,017
247,217
429,933
123,699
3,676,502
4,256		 Total 2023
£
48,833
2,458,775
393,552
366,130
92,295
3,359,585
4,053

19/11/24 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 subject to independent examination. See report on page 5.

EDUCATIONAL TRUST NO.1 1982

APPENDIX 1 BREAKDOWN OF CHARITABLE GRANTS

Institution
Pestalozzi Childrens Village Trust		 Number of
grants
2		 Amount
£
25,062
2 **25,062 **

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

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