CHARITY REGISTRATION NUMBER: 291310
The Cambridge Political Economy Society Trust Unaudited Financial Statements 31 December 2020
The Cambridge Political Economy Society Trust
Financial Statements
Year ended 31 December 2020
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Statement of financial activities | 4 |
| Statement of financial position | 5 |
| Notes to the financial statements | 6 |
The Cambridge Political Economy Society Trust
Trustees' Annual Report
Year ended 31 December 2020
The trustees present their report and the unaudited financial statements of the charity for the year ended 31 December 2020.
Reference and administrative details
The Cambridge Political Economy Society Trust
Registered charity name Charity registration number 291310 Principal office
The trustees
P Faulkner J Runde (Served from 1 July 2018 to 30 B Burchell June 2020) A Shipman G Palma (Served from 1 July 2017 to 30 J Aldred June 2019) (Served from 1 July 2018 to 30 M Ellman June 2020) M Gray (Appointed 1 July 2020) M Milgate (Served from 1 July 2017 to 30 R Martin June 2019) S Deakin (Served from 1 July 2017 to 30 S Konzelmann June 2019) (Served from 1 July 2017 to 30 S Pratten June 2019) T Lawson (Appointed 1 July 2020) Accountants Archangel Accounting Chartered accountants Burnham House Splash Lane Wyton Huntingdon UK PE28 2AF
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The Cambridge Political Economy Society Trust
Trustees' Annual Report (continued)
Year ended 31 December 2020
Structure, governance and management
The Trustees of the Cambridge Political Economy Society Trust are responsible for holding the capital and income of the Trust Fund upon trust to apply the income and all or such part or parts of the capital at such time or times and in such manner as the Trustees may in their absolute discretion think fit for the purposes of meeting the charitable objectives and in accordance with the Trust Deed. The Trustees meet regularly to consider and approve grants payable and to ensure that the management is effective.
To be able to fulfil the objectives of the Trust the Trustees are of the opinion that the reserves of the Trust are maintained at a level which represents the commitment to all beneficiaries.
A resolution has been passed at the AGM, to release the Trust from the requirements in the Trust Deed's to have an annual audit, given that there is no statutory requirement to do so.
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.
Objectives and activities
The charity was established by a Trust Deed dated 21 December 1984.
The objects of The Cambridge Political Economy Society Trust are to promote knowledge and educate the public in relation to political economy and related matters, and to promote research into matters pertaining to political economy and to publish the results of such research.
Achievements and performance
The Trust successfully supported a post-doctoral research fellowship over a five-year period from 2011 to 2016 and has been extending this arrangement - currently there is a fellowship in place until 2022.
The Trust awards PhD scholarships to finance fees and maintenance every two years and was supporting four scholars in this way to July 2020 when two completed their doctorates. A scholarship competition was held in 2020 and a further scholarship was awarded, beginning in October 2020. The Trust also collaborated with the Cambridge Doctoral Training Centre to co-fund a PhD student who was in receipt of a partial ESRC grant for the period from 2015 to 2018 and extended his period of study into the 2019-20 academic year.
The Trust offers supplementary funding to enable PhD students to complete their studies and, in addition, provides emergency funding at short notice for PhD students who are in unanticipated financial need. A total of 19 such awards were made in 2020.
The Trust supports organisations and groups by financing small-scale projects, workshops, seminars, and conferences that further the Trust's objectives. A total of 2 such awards were made in 2020.
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The Cambridge Political Economy Society Trust
Trustees' Annual Report (continued)
Year ended 31 December 2020
Financial review
The Trustees are of the opinion that assets are available to fulfil the obligations of the charity.
The Trustees have wide investment powers and all the investments made during the year fall within these powers.
As a consequence of its income rising and outlays falling this year, the Trust's total funds rose by a total of £91,813 over the year, from £686,843 to £778,656. While much of this increase can be put down to the effects of the covid-19 pandemic, it again leaves the Trust in breach of its policy to maintain reserves in the range of £400,000 to £600,000 over the medium term. The Trust will review the situation in the course of it annual review of its reserves policy at its July meeting.
The Trust agreed to adjust its investment portfolio to achieve a higher return, by moving £170k from its COIF Charities Deposit Fund to an Ethical Investment Fund (all with CCLA). In addition, the Trust agreed to sell its £20k NS&I bond, the proceeds to go into the Charities Deposit Fund. These transactions have been completed.
The trustees' annual report was approved on 19 May 2021 and signed on behalf of the board of trustees by:
J Runde Trustee
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The Cambridge Political Economy Society Trust
Statement of Financial Activities
Year ended 31 December 2020
| 2020 | 2019 | |||
|---|---|---|---|---|
| Unrestricted | ||||
| fundsTotal funds | Total funds | |||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 4 | 243,235 | 243,235 | 236,986 |
| Investment income | 5 | 365 | 365 | 611 |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total income | 243,600 | 243,600 | 237,597 | |
| ================================ | ================================ | ================================ | ||
| Expenditure | ||||
| Expenditure on charitable activities | 6,7 | 152,589 | 152,589 | 216,057 |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total expenditure | 152,589 | 152,589 | 216,057 | |
| ================================ | ================================ | ================================ | ||
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Net income and net movement in funds | 91,011 | 91,011 | 21,540 | |
| ================================ | ================================ | ================================ | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 686,843 | 686,843 | 665,303 | |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total funds carried forward | 777,854 | 777,854 | 686,843 | |
| ================================ | ================================ | ================================ |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 6 to 11 form part of these financial statements.
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The Cambridge Political Economy Society Trust
Statement of Financial Position
31 December 2020
| 2020 | 2019 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| Fixed assets | ||||
| Investments | 11 | 20,000 | 20,000 | |
| Current assets | ||||
| Debtors | 12 | 243,235 | 236,986 | |
| Cash and cash equivalents | 514,619 | 429,857 | ||
| -------------------------------- | -------------------------------- | |||
| 757,854 | 666,843 | |||
| -------------------------------- | -------------------------------- | |||
| Net current assets | 757,854 | 666,843 | ||
| -------------------------------- | -------------------------------- | |||
| Total assets less current liabilities | 777,854 | 686,843 | ||
| ================================ | ================================ | |||
| Funds of the charity | ||||
| Unrestricted funds | 777,854 | 686,843 | ||
| -------------------------------- | -------------------------------- | |||
| Total charity funds | 13 | 777,854 | 686,843 | |
| ================================ | ================================ |
These financial statements were approved by the board of trustees and authorised for issue on 19 May 2021, and are signed on behalf of the board by:
J Runde Trustee
The notes on pages 6 to 11 form part of these financial statements.
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The Cambridge Political Economy Society Trust
Notes to the Financial Statements
Year ended 31 December 2020
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is c/o Centre for Business Research, Judge Business School, University of Cambridge, Trumpington Street, Cambridge, CB2 1AG.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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 (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of (enter name of group financial statements) which can be obtained from (enter detail). As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) No cash flow statement has been presented for the company.(b) Disclosures in respect of financial instruments have not been presented.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
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The Cambridge Political Economy Society Trust
Notes to the Financial Statements (continued)
Year ended 31 December 2020
3. Accounting policies (continued)
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
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income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
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legacy income is recognised when receipt is probable and entitlement is established.
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income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
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income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
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expenditure on raising funds includes the costs of all fundraising activities, events, noncharitable trading activities, and the sale of donated goods.
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expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
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other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
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The Cambridge Political Economy Society Trust
Notes to the Financial Statements (continued)
Year ended 31 December 2020
3. Accounting policies (continued)
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the charity are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
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The Cambridge Political Economy Society Trust
Notes to the Financial Statements (continued)
Year ended 31 December 2020
3. Accounting policies (continued)
Financial instruments (continued)
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Donations and legacies
| 4. | Donations and legacies | ||||
|---|---|---|---|---|---|
| Unrestricted | Total Funds |
Unrestricted | Total Funds | ||
| Funds | 2020 |
Funds | 2019 | ||
| £ | £ | £ | £ | ||
| Donations | |||||
| Covenanted payment from Cambridge | |||||
| Political Economy Society Limited | 243,235 | 243,235 |
236,986 | 236,986 | |
| ================================ | ================================ | ================================ | ================================ | ||
| 5. | Investment income | ||||
| Unrestricted | Total Funds |
Unrestricted | Total Funds | ||
| Funds | 2020 |
Funds | 2019 | ||
| £ | £ | £ | £ | ||
| Investment Income | 365 | 365 |
611 | 611 | |
| ============== | ============== | ============== | ============== | ||
| 6. | Expenditure on charitable activities by fund type | ||||
| Unrestricted | Total Funds |
Unrestricted | Total Funds | ||
| Funds | 2020 |
Funds | 2019 | ||
| £ | £ | £ | £ | ||
| Grants | 152,589 | 152,589 |
216,057 | 216,057 | |
| ================================ | ================================ | ================================ | ================================ | ||
| 7. | Expenditure on charitable activities by activity type | ||||
| Grant funding | Total funds | Total fund | |||
| of activities | 2020 | 2019 | |||
| £ | £ | £ | |||
| Grants | 152,589 | 152,589 | 216,057 | ||
| ================================ | ================================ | ================================ |
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The Cambridge Political Economy Society Trust
Notes to the Financial Statements (continued)
Year ended 31 December 2020
8. Analysis of grants
| Analysis of grants | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Grants to institutions | ||
| CSEP | – | 3,000 |
| Emergency Funding | 6,000 | 8,000 |
| PKSG Workshop | – | 2,950 |
| Research Grant | – | 41,345 |
| Scholarship | 71,887 | 77,404 |
| Girton College JRF | 27,426 | 21,464 |
| Supplementary Funding | 37,250 | 50,974 |
| Small Projects | 10,026 | 10,920 |
| -------------------------------- | -------------------------------- | |
| 152,589 | 216,057 | |
| -------------------------------- | -------------------------------- | |
| Total grants | 152,589 | 216,057 |
| ================================ | ================================ |
9. Staff costs
| Staff costs | |
|---|---|
| The total staff costs and employee benefits for the reporting period are analysed as | follows: |
| 2020 | 2019 |
| £ | £ |
The average head count of employees during the year was Nil (2019: Nil).
No employee received employee benefits of more than £60,000 during the year (2019: Nil).
10. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
11. Investments
| Investments | |
|---|---|
| Other | |
| investments | |
| £ | |
| Cost or valuation | |
| At 1 January 2020 | 20,000 |
| Additions | – |
| ---------------------------- | |
| At 31 December 2020 | 20,000 |
| ============================ | |
| Impairment | |
| At 1 January 2020 and 31 December 2020 | – |
| ============================ | |
| Carrying amount | |
| At 31 December 2020 | 20,000 |
| ============================ | |
| At 31 December 2019 | 20,000 |
| ============================ |
All investments shown above are held at valuation.
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The Cambridge Political Economy Society Trust
Notes to the Financial Statements (continued)
Year ended 31 December 2020
12. Debtors
Amounts owed by undertakings in which the charity has a participating interest
| 2020 | 2019 |
|---|---|
| £ | £ |
| 243,235 | 236,986 |
| ================================ | ================================ |
13. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | |||||||
|---|---|---|---|---|---|---|---|
| At | At | ||||||
| 1 | January | 20 | 31 | Decembe | |||
| 20 | Income | Expenditure | r 2020 | ||||
| £ | £ | £ | £ | ||||
| General funds | 686,843 | 243,600 | (152,589) | 777,854 | |||
| ================================ | ================================ | ================================ | ================================ | ||||
| At | At | ||||||
| 1 | January | 20 | 31 | December | |||
| 19 | Income | Expenditure | 2019 | ||||
| £ | £ | £ | £ | ||||
| General funds | 665,303 | 237,597 | (216,057) | 686,843 | |||
| ================================ | ================================ | ================================ | ================================ |
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