2021-04-05-accounts - The Baronets Trust

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THE BARONETS TRUST

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

For the year ended 5 April 2021

Charity no: 291880

THE BARONETS TRUST

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS

for the year ended 5 April 2021

Contents	Page
Reference and Administrative Details	1
Report of the Trustees	2 - 3
Independent Examiner’s Report	4
Statement of Financial Activities	5
Balance Sheet	6
Notes to the Financial Statements	7 - 10

THE BARONETS TRUST

CHARITABLE TRUST Registered Charity No 291880

REFERENCE AND ADMINISTRATIVE DETAILS

President Trustees

Sir Ranulph Twistleton-Wickham-Fiennes Bt

Sir Michael Bunbury Bt Sir James Pickthorn Bt Sir James Scott Bt (Chairman from 15 April 2019) Sir Thomas Troubridge Bt

Secretary and Registered Office Epsom Surrey KT17 1BY Bankers Coutts & Co 440 Stand London WC2R 0QS

M K Holloway-Neville 6 Victoria Place Epsom Surrey KT17 1BY

Investment Managers Waverton Investment Management 16 Babmaes Street London SW1Y 6AH

Independent Examiner

S.A. Jones ℅ Myrus Smith, Chartered Accountants Norman House 8 Burnell Road Sutton SM1 4BW

THE BARONETS TRUST

REPORT OF THE TRUSTEES for the year ended 5 April 2021

The Trustees present their annual report and accounts for the year ended 5 April 2021.

Objects

The objects of the Trust are such exclusively charitable objects as the Trustees shall in their discretion think fit.

Achievements and performance

During the 2020-21 financial year, the Trust made its final (of five) annual donations to the Shannon Trust.

The funds will be used to support the Shannon Trust’s Reading Programme, which aims to enable literate prisoners to teach the illiterate in the UK’s prisons. Illiteracy in the prison population currently stands at around 40%. The Trust’s donation will be used to support initiatives in Young Offenders Institutions.

The Trust formally resolved in February 2021 to support the Cirdan Sailing Trust over the next five years, making annual donations of a minimum of £10,000. The Cirdan Trust specialises in enabling groups of young people, particularly the disadvantaged, to experience the challenge and adventure of life at sea on large sailing vessels.

Public Benefit

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the trust’s aims and objectives and in planning future activities.

Structure Governance and Management

The Baronets Trust is constituted by a charitable Trust Deed dated 12 April 1985 and is a registered charity: number 219880.

The Trustees throughout the period were:

Sir Michael Bunbury Bt Sir James Pickthorn Bt Sir James Scott Bt (Chairman from 15 April 2019) Sir Thomas Troubridge Bt

Additional or replacement Trustees can be appointed by the existing Trustees. The entire control regulation powers of management and application of the Trustee and income arising therefrom is under the absolute discretion of the Trustees.

Financial Review

The financial statements as set out on pages 5 to 10 summarise the transactions of the trust during the year to 5 April 2021. The net income for the year was £99,241 (2020: net expenditure of £31,925), which was all unrestricted. This results in unrestricted funds to be carried forward at 5 April 2021 of £464,277 (2020 : £365,036).

Reserves Policy

The Trustees’ policy is to maintain a level of reserves which will provide a stable base for its continuing activities while at the same time ensuring excessive funds are not accumulated. The Trustees believe that the reserves are sufficient for its current purposes and these are reviewed on a regular basis.

THE BARONETS TRUST

REPORT OF THE TRUSTEES for the year ended 5 April 2021

/Cont’d…

Investment powers

By virtue of clause 8 of the governing documents the Trustees have (subject to the matters therein mentioned) all the investment powers of beneficial owners.

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the Financial Statements in accordance with applicable law and United Kingdom Standards (United Kingdom Generally Accepted Accounting Practice).

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 Trust and of the incoming resources and application of resources of the trust for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and apply them consistently;
observe the methods and principles in the Charities SORP 2019 (FRS 102);
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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, applicable accounting regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the trust and financial information included on the trust’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Independent Examiner

The Trustees appointed S.A. Jones of Myrus Smith, Chartered Accountants as Independent Examiner. He has expressed willingness to continue to serve.

Approved by the Trustees and signed on their behalf by-

Sir James Scott Bt Chairman

25 January 2022

Independent Examiner’s Report to the Trustees of:

THE BARONETS TRUST

I report to the charity trustees on my examination of the accounts of the charity for the year ended 5 April 2021 which are set out on pages 5 to 10.

Responsibilities and basis of report

As the charity’s trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 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.

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 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 Act; or
the accounts do not accord with those records; or
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.

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 accounts to be reached.

S A Jones FCA ℅ Myrus Smith, Chartered Accountants Norman House 8 Burnell Road Sutton, Surrey SM1 4BW

25 January 2022

THE BARONETS TRUST

(Registered Charity Number: 291880)

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 5 April 2021

	Notes	2021	2020
Income from:		£	£
Donations and legacies	2	20,724	10,865
Charitable activities		10	10
Investments		4,348	6,319
		`──────`	`──────`
Total income		25,082	17,194
		`──────`	`──────`
Expenditure on:
Raising funds	3	1,849	2,238
Charitable activities	4	10,000	10,000
Other	5	3,919	3,338
		`──────`	`──────`
Total expenditure		15,768	15,576
		`──────`	`──────`
Net (losses)/gains on investments	6	89,927	(33,543)
		`──────`	`──────`
Net (expenditure)/income and net movement in funds		99,241	(31,925)
Total funds brought forward at 6 April 2020		365,036	396,961
		`──────`	`──────`
Total funds carried forward at 5 April 2021		£464,277	£365,036
		`══════`	`══════`

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derives from continuing activities.

The notes form part of these financial statements.

THE BARONETS TRUST

(Registered Charity Number: 291880)

BALANCE SHEET as at 5 April 2021

Fixed assets Investments Current assets Debtors Cash at bank Current liabilities Creditors

Net current assets Net assets Funds General fund

Notes 2021 2020 £ £ £ £ 6 421,257 331,196 7 2,099 1,928 8 43,744 35,054 ─────── ─────── 45,843 36,982 9 2,823 3,142 ─────── ─────── 43,020 33,840 ─────── ─────── £464,277 £365,036 ═══════ ═══════ £464,277 £365,036 ═══════ ═══════

The financial statements were approved on behalf of the Trustees on 25 January 2022 and were signed on its behalf by:

……………………………………………. …………………………………………….

Sir James Scott Bt Trustee

Sir Michael Bunbury Bt Trustee

The notes form part of these financial statements.

THE BARONETS TRUST

(Registered Charity Number: 291880)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 5 April 2021

1. Accounting policies

1.1 Basis of accounting

The financial statements have been prepared under the historic cost convention. The accounts 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) issued in October 2019 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice.

1.2 Going concern

After reviewing the trust’s forecasts and projections, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future.

1.3 Exemptions from preparing a cash flow

The trust has taken the exemption provided in Update Bulletin 1 updating 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) allowing small charities not to prepare a cash flow statement.

1.4 Donations

Donations income is shown gross including tax credits recoverable from HM Revenue &Customs.

1.5 Investment income

Investment income is accounted for on its receipt and is shown net of any tax deducted.

1.6 Expenditure

Donations made are accounted for on payment, or if earlier, at the point at which a constructive obligation arises to make the payment. Other expenditure is recognised when incurred.

1.7 Funds

General funds comprise accumulated surpluses and deficits of unrestricted incoming revenues over resources expended, which are available for use in furtherance of the general objectives of the trust.

1.8 Investments

Investments are included at market value.

1.9 Financial assets

Financial assets are recognised in the trust’s balance sheet when the trust becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables and cash and bank balances, or initially measured at transaction price including transaction costs.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.10 Financial liabilities

Basic financial liabilities are initially measured at transaction price.

Financial liabilities are derecognised when, and only when, the trust’s obligations are discharged, cancelled, or they expire.

THE BARONETS TRUST

(Registered Charity Number: 291880)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 5 April 2021

(Continued)

1. Accounting policies (continued)

1.11 Taxation

As a charity the Trust is not liable for any tax on its wholly charitable activities.

1.12 Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

2. Income from donations and legacies


Income from donations and legacies	2021	2020
	£	£
Annual donations	4,204	5,004
Gift aid receivable	1,240	861
Legacies	2,000	5,000
One-off donations	13,280	-
	`──────`	`──────`
	£20,724	£10,865
	`══════`	`══════`

The charitable trust received unrestricted donations totalling £700 (2020 : £1,700) from trustees along with associated gift aid income.

3.	Raising funds	2021	2020
		£	£
	Investment manager’s fees	£1,849	£2,238
		`══════`	`══════`
4.	Charitable activities	2021	2020
		£	£
	Grants paid to institutions:
	The Shannon Trust	£10,000	£10,000
		`══════`	`══════`
5.	Other expenditure	2021	2020
		£	£
	Independent examiner’s fee
	Current year	1,200	600
	Earlier year	1,500	-
	Insurance	196	196
	Secretary’s fees and expenses	796	2,327
	Postage	64	7
	Telephone	163	161
	Travel	-	47
		`──────`	`──────`
		£3,919	£3,338
		`══════`	`══════`

THE BARONETS TRUST

(Registered Charity Number: 291880)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 5 April 2021

(Continued)

6.	Fixed asset investments	2021	2020
		£	£
	Quoted investments
	Market value at 6 April 2020	331,196	367,870
	Additions at cost	35,360	35,222
	Disposals at opening value	(32,541)	(43,461)
	Net (losses)/gains on revaluation at 5 April 2021	87,242	(28,435)
		`────────`	`────────`
	Market value at 5 April 2021	£421,257	£331,196
		`════════`	`════════`
		`────────`	`────────`
	Historical cost at 5 April 2021	£248,685	£241,656
		`════════`	`════════`
	Investments at market value:	2021	2020
		£	£
	UK equities	26,629	24,201
	UK other investments	64,653	52,953
	Overseas equities	242,526	180,690
	Overseas other investments	87,449	73,352
		`──────`	`──────`
		£421,257	£331,196
		`══════`	`══════`
	Analysis of investment gains:	2021	2020
		£	£
	Realised (loss)/gain on disposal	2,685	(5,108)
	Unrealised (loss)/gain on revaluation	87,242	(28,435)
		`──────`	`──────`
		£89,927	£(33,543)
		`══════`	`══════`
7.	Debtors	2021	2020
		£	£
	Accrued income	-	185
	Gift aid reclaimed	2,099	1,743
		`──────`	`──────`
		£2,099	£1,928
		`══════`	`══════`
8.	Cash at bank	2021	2020
		£	£
	Cash held at bank	18,807	12,667
	Cash held at investment managers	24,937	22,387
		`──────`	`──────`
		£43,744	£35,054
		`══════`	`══════`

THE BARONETS TRUST

(Registered Charity Number: 291880)

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 5 April 2021

(Continued)

Creditors	2021	2020
	£	£
Accruals	£2,823	£3,142
	`══════`	`══════`

10. Related party transactions

Other than the donations from the trustees described in note 2, there were no related party transactions during the year.