2021-04-05-accounts

THE SEARLE CHARITABLE TRUST

REPORT AND STATUTORY ACCOUNTS

YEAR ENDED 5 APRIL 2021

Registered Charity Number 288541

THE SEARLE CHARITABLE TRUST

I N D E X

Year ended 5 April 2021

	Page
Report of the Trustees	2
Independent Examiner’s report	4
Statement of Financial Activities	5
Balance Sheet	6
Notes to the Financial Statements	7
Appendix: Investment portfolio (not filed with Charity Commission)	12

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THE SEARLE CHARITABLE TRUST

R E P O R T O F T H E T R U S T E E S

Year ended 5 April 2021

The Trustees present their annual report and accounts of the Charity for the year ended 5 April 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 of the financial statements. The statements comply with the Charity’s Trust Deed, the Charities Act 2011 and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (SORP FRS 102) (effective 1 January 2019).

Structure, governance and management

The Trust was constituted on 14 January 1982, and is governed by the Trust Deed. The Trustees who served during the year are shown in the ‘Reference and administrative details’ section below. New Trustees may be appointed by the existing Trustees by virtue of a power contained within the Trust Deed. All Trustees give of their time freely and no Trustee remuneration was paid in the year.

The Trustees consider that the principal risk facing the Trust continues to be the variability of investment returns from the Trust’s investments. The Covid-19 outbreak and its wider economic effect poses a significant risk to all global investment markets. The Trustees have examined the major strategic, business and operational risks which the Trust faces and confirm that appropriate measures have been taken to protect it from them as far as possible.

Objectives and activities for the public benefit

The object of the Charity, under the terms of the Trust Deed, is to make donations to any charitable body, association or organisation at the discretion of the Trustees.

The Trust Deed provides that the income and (at the Trustees’ discretion) the whole or part of the Trust fund be applied for charitable purposes.

The Trustees having regard to the public benefit guidance published by the Charity Commission in accordance with section 17 of the Charities Act 2011 consider that the purpose and activities of the Charity satisfy the requirements of the public benefit test set out in section 4 of the same act.

Organisation

The Charity is governed by its Trustees who may exercise all the powers contained within the Trust Deed.

In accordance with the Trust Deed, the Trustees have power to invest in such stocks, shares, investments and property in any part of the world as they see fit. The Trustees appointed Aberdeen Standard Capital as investment managers on a discretionary basis to invest for a balanced return of income and capital growth in the long term.

Financial review

In total, funds increased by £1,851,308 in the year to £7,707,847 (2020 - decreased by £641,439 to £5,856,539). This was largely due to market recovery following the Covid-19 pandemic.

The Trustees make donations and grants on a discretionary basis. The Trustees have continued with their policy of supporting the Rona Trust. During the year the Trustees made grants of £52,200 to the Rona Trust (2020 - £140,500) and £nil to Sunshine Charity (2020 - £2,000) and £nil to ASTO (2020 - £2,000).

Reserves policy

At 5 April 2021 there was £807,918 of undistributed income (2020 - £745,697). The Trustees consider the aggregate level of capital and undistributed income sufficient to meet their objectives, which include a proposed significant donation to the Rona Trust to enable them to purchase a new sail training boat. The Trustees have the power to invest as they think fit any funds not immediately required.

Investment policy

The Trustees’ principal resources arise from investment income. In this regard the Trustees have noted the statutory duty of care required by the Trustee Act 2000 in relation to their holding suitable investments and the need for diversification of investments so far as is appropriate to the circumstances of the Trust. Given the Trustees’ distribution policy their view is that the retention of the excess assets of the Trust in cash pending their distribution reflects suitable investment of the Charity’s funds.

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THE SEARLE CHARITABLE TRUST

R E P O R T O F T H E T R U S T E E S

Year ended 5 April 2021

Reference and administrative details

Settlor Andrew Donald Searle Date of settlement 14 January 1982 Charity registration number 288541 Trustees Andrew Donald Searle Victoria Caroline Searle Registered address c/o Dixon Wilson 22 Chancery Lane London WC2A 1LS Independent Examiner S M Rose ACA CTA Dixon Wilson 22 Chancery Lane London WC2A 1LS Investment Advisors Aberdeen Standard Capital Limited 1 George Street Edinburgh EH2 2LL Banker Coutts & Co Campbell’s Office 440 Strand London WC2R 0QS

Approved by the Trustees on 23 March 2023 and signed on their behalf by:

A D SEARLE Chairman

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THE SEARLE CHARITABLE TRUST

I N D E P E N D E N T E X A M I N E R ’ S R E P O R T

Year ended 5 April 2021

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE SEARLE CHARITABLE TRUST

I report to the Trustees on my examination of the accounts of the Trust for the year ended 5 April 2021.

Responsibilities and basis of report

As the charity Trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). You are satisfied that an audit is not required for this year under charity law and that an independent examination is needed.

I report in respect of my examination of the Trust’s accounts 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 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 than an auditor considers in giving their opinion on the accounts. 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 accounts 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 am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.

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

1. Accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. The accounts do not accord with those records; or

2. The accounts 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.

3. The accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (SORP FRS 102).

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

SUZANNE ROSE ACA CTA Dixon Wilson 22 Chancery Lane London WC2A 1LS

30 March 2023

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THE SEARLE CHARITABLE TRUST

S T A T E M E N T O F F I N A N C I A L A C T I V I T I E S

Year ended 5 April 2021

Unrestricted Expendable Income Endowment Note Fund Fund Income and endowments from: £ £ Investments: Investment income 2 118,426 - Total income and endowments 118,426 - Expenditure on: Raising funds: 3 Investment management fees - 37,951 Charitable activities: 4 Grants made 52,200 - Governance costs 4,005 - Total expenditure 56,205 37,951 Net gain/(loss) on investments 5 - 1,827,038 Net income/(loss) 62,221 1,789,087 Net movement in funds 62,221 1,789,087 Reconciliation of funds: Total funds brought forward 745,697 5,110,842 Total funds carried forward(page 6) 807,918 6,899,929	2021 £ 118,426 118,426 37,951 52,500 4,005 94,156 1,827,038 1,851,308 1,851,308 5,856,539 7,707,847	2020 £ 145,980 145,980 34,405 144,500 4,091 182,996 (604,377) (641,439) (641,439) 6,497,978 5,856,539

The notes on pages 7 to 11 form part of these financial statements.

All amounts relate to continuing operations.

The charity has no recognised gains and losses other than as stated above.

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THE SEARLE CHARITABLE TRUST

B A L A N C E S H E E T

At 5 April 2021

Note Fixed assets Investments at market value 5 Current assets Cash at bank 6 Current liabilities Creditors: amounts falling due within one year 7 Net current assets Total net assets The funds of the charity Unrestricted Income Fund (page 5) Expendable Endowment Fund (page 5) Total charity funds	2021 £ 6,805,707 917,559 (15,419) 902,140 7,707,847 807,918 6,899,929 7,707,847	2020 £ 5,017,006 852,612 (13,079) 839,533 5,856,539 745,697 5,110,842 5,856,539

The financial statements on pages 5 to 11 were approved by the Trustees on 23 March 2023.

A D SEARLE Trustee

V C SEARLE Trustee

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THE SEARLE CHARITABLE TRUST

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 5 April 2021

1. Accounting Policies

(a) Basis of preparation

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) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The Trust constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared under the historical cost convention modified to include the revaluation of investments. The financial statements are presented in sterling which is the financial currency of the Trust and rounded to the nearest £.

The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.

.

(b) Fund accounting policy

The Charity comprises an Unrestricted Income Fund and an Expendable Endowment Fund. Unrestricted funds are general funds that are available for use at the Trustees’ discretion in furtherance of the objectives of the Charity. Expendable Endowment Funds are capital funds that may be freely converted into spendable income as the Trustees see fit.

(c) Income

Investment gains and losses includes any realised or unrealised gains or losses on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.

Dividends and similar income are recognised on the date the Trust becomes entitled to the income. Interest is recognised on an accruals basis.

(d) Expenditure and liabilities

Donations are recognised when the Charity is committed to making the donations. All other expenditure is based on an accruals basis. The Charity has creditors which are measured at settlement amounts.

(e) Assets

Fixed asset investments in quoted shares, traded bond and similar investments are initially recognised at transaction price and subsequently measured at fair value. All realised and unrealised gains are taken to the statement of financial activities.

(f) Taxation

The Charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its Charitable Objectives.

(g) Trustees’ remuneration and expenses

The Trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind.

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THE SEARLE CHARITABLE TRUST

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 5 April 2021

2. Investment income

Unrestricted Expendable Income Endowment Fund Fund £ £ UK equities 73,571 - Overseas 44,422 - Deposit interest - - Fixed interest 433 - 118,426 -	Unrestricted Expendable Total Income Endowment 2021 Fund Fund £ £ £ 73,571 96,530 - 44,422 49,180 - - 224 - 433 46 - 118,426 145,980 -	Total 2020 £ 96,530 49,180 224 46 145,980

3. Raising funds

3. Raising funds	3. Raising funds
Unrestricted		Expendable		Unrestricted	Expendable
	Income	Endowment	Total	Income	Endowment	Total
	Fund	Fund	2021	Fund	Fund	2020
	£	£	£	£	£	£
Investment management fees	-	37,951	37,951	-	34,405	34,405

4. Charitable activities

The Charity undertakes its charitable activities through grant making and awards grants to institutions in furtherance of its charitable objectives. Charitable activities relate to the Unrestricted Income Fund only.

Grant-funded Governance activity costs £ £ Funded from Unrestricted Income Fund: Grant making 52,200 4,005 Total 52,200 4,005 Governance costs 2021 £ Bank charges 445 Accountancy fees 2,760 Book-keeping fees 800 4,005 Accountancy fees payable to the Independent Examiner’s firm as follows: 2021 £ - Examination 1,000 - Accountancy 1,760 2,760	Total 2021 £ 56,205 56,205 2020 £ 526 2,765 800 4,091 2020 £ 1,000 1,765 2,765

(Continued)

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THE SEARLE CHARITABLE TRUST

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 5 April 2021

4. Charitable activities (continued) Recipients of institutional grants: Rona Trust – London Sailing Project Sunshine Charity ASTO	2021 £ 52,200 - - 52,200	2020 £ 140,500 2,000 2,000 144,500

The Trustees did not receive remuneration or reimbursed expenses in the year (2020 - £nil).

5. Fixed asset investments

Unrestricted Expendable Unrestricted Expendable Income Endowment Total Income Endowment Fund Fund 2021 Fund Fund £ £ £ £ £ Market value At 6 April 2020 - 5,017,005 5,017,005 - 5,659,290 Additions at cost - 141,161 141,161 - 307,176 Disposals at carrying value - (125,019) (125,019) - (324,956) Unrealised gains/(losses) on investments - 1,680,342 1,680,342 - (683,459) Movement in cash balance - 92,218 92,218 - 58,955 At 5 April 2021 - 6,805,707 6,805,707 - 5,017,006 Historical cost - 2,543,531 2,543,531 - 2,527,389 2021 £ Investments at market value consists of UK listed investments 6,462,577 Cash held for investment 343,130 6,805,707 Reconciliation of realised and unrealised gains/(losses) on investments Unrealised gains/(losses) 1,680,342 Realised gains 146,696 1,827,038 The following investment holding is in the opinion of the Trustees material: Market value £ Findlay Park Funds PLC 326,029

Total 2020 £ 5,659,290 307,176 (324,956) (683,459) 58,955 5,017,006 2,527,389 2020 £ 4,766,094 250,912 5,017,006 (683,459) 79,082 (604,377) Portfolio % 5.05

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THE SEARLE CHARITABLE TRUST

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 5 April 2021

6. Cash at bank Coutts & Co current account Aberdeen Standard income account	2021 £ 915,819 1,740 917,559	2020 £ 851,179 1,433 852,612
7. Creditors: amounts falling due within one year Investment manager’s fees Accountancy and independent examination fees Book-keeping and secretarial fees Bank charges	2021 £ 10,059 4,560 800 - 15,419	2020 £ 7,674 4,565 800 40 13,079

8. Related party disclosures

A D Searle is also a Trustee of the Rona Trust – London Sailing Project. Unconditional grants totalling £52,500 (2020 - £140,500) were made to the Rona Trust – London Sailing Project during the year.

9. Unrestricted Funds

9. Unrestricted Funds Funds brought forward £ Unrestricted Income Fund 745,697 Expendable Endowment Fund 5,110,842 5,856,539	Incoming Outgoing resources resources £ £ 118,426 (56,205) - (37,951) 118,426 (94,156)	Net funds carried Gains forward £ £ - 807,918 1,827,038 6,899.929 1,827,038 7,707,847

10. Analysis of total net assets between funds

Unrestricted Expendable Income Endowment Fund Fund £ £ Investments - 6,805,707 Current assets 813,278 104,281 Current liabilities (5,360) (10,059) 807,918 6,899,929	Unrestricted Expendable Total Income Endowment 2021 Fund Fund £ £ £ 6,805,707 - 5,017,006 917,559 751,102 101,510 (15,419) (5,405) (7,674) 7,707,847 745,697 5,110,842	Total 2020 £ 5,017,006 852,612 (13,079) 5,856,539

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THE SEARLE CHARITABLE TRUST

N O T E S T O T H E F I N A N C I A L S T A T E M E N T S

Year ended 5 April 2021

11. Financial instruments Financial assets measured at fair value through income and expenditure	2021 £ 6,805,707	2020 £ 5,017,006

Financial assets measured at fair value through income and expenditure comprise fixed asset investments.

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