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2021-03-31-accounts

The Privy Purse Chatitable Trust Trn8tee8' repnrt and finjncial %t2tements C.h2rity.- Regi8trati()n number 2CJ()117CJ 31 March 2021

The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Contents
Legal and administrative information 2
Trustees’ report 3-4
Statement of Trustees’ responsibilities in respect of the Trustee’s report and the financial 5
statements
Independent auditor’s report to the Trustees of The Privy Purse Charitable Trust 6
Statement of financial activities 10
Balance sheet 11
Statement of Cash Flows 12
Notes 13-20

1

The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Legal and administrative information

Registered number 296079

Principal Office & Treasurers

Privy Purse Office Buckingham Palace London SW1A 1AA

Trustees

Sir Michael Stevens KCVO The Right Honourable Sir Edward Young KCVO Jane Graham CVO

Investment Managers

Cazenove Capital Management Limited 12 Moorgate London EC2R 6DA

Bankers

Coutts & Co 440 Strand London WC2R 0QS

Auditors

Kreston Reeves LLP Second Floor 168 Shoreditch High Street London E1 6RA

Solicitors

Farrer & Co 66 Lincoln’s Inn Fields London WC2A 3LH

2

The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Trustees’ report

The Trustees present their report with the audited financial statements of the Trust for the year ended 31 March 2021. The financial statements have been prepared on the basis of the accounting policies set out in note 1 to the financial statements and comply with the Trust’s trust deed, the Charities Act 2011 and 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 published in October 2019.

Structure, Governance and Management

The Trust was constituted by a deed dated 16[th] January 1987. These financial statements comply with that deed.

The Trustees in office at the date of this report are set out on page 2. Trustees are appointed by serving Trustees and receive no remuneration for their services.

The Trustees seek professional advice as required to ensure that they are properly briefed with regard to current developments. Appropriate training is provided to Trustees depending on need.

As part of a review of risk management across the Royal Household, the Trustees have identified the risks to which the Trust is exposed and have ensured that appropriate systems and controls are in place to mitigate any significant risks which are reviewed regularly.

Any conflicts of interest are declared at meetings of the Trustees.

Objectives and Activities

The purpose of the Trust is to apply income for the benefit of such charitable bodies or for such other charitable purposes as the Trustees shall decide. The income arising from the investment portfolio, together with donations received are used at the discretion of the Trustees to meet the Trust’s charitable objectives. The main aims of the Trustees are to make grants to charities of which The Queen is patron, support ecclesiastical establishments associated with The Queen and to make contributions in the event of either national or international disasters. The Trustees meet regularly during the year to review proposed donations in accordance with the stated aims. Administrative support is provided, without charge, by the Privy Purse.

Achievements and Performance

In line with the objectives described above, the Trustees have made grants and donations principally for ecclesiastical and educational purposes, as analysed in note 4 to the financial statements.

Public Benefit

The Trust aims to make grants to the public benefit in the following areas; to charities of which The Queen is patron and support ecclesiastical establishments associated with The Queen. As part of their role, the Trustees ensure there is a wide scope of public benefit within the activities of the Trust and that there is a fair and equitable grant process. The Trustees have reviewed the Trust’s objectives and activities and achievements for the year under review and are satisfied that the Trust has complied with the requirements of public benefit reporting as set out in the Charity Commission’s General Guidance on Public Benefit.

Financial Review

Donations income fluctuates from year to year and during the year to 31 March 2021 decreased from £699,211 to £45,179. Investment income decreased from £96,632 to £53,254. The Trustees made charitable donations including support costs of £662,268 during the year (2020: £605,205) which, after management expenses, resulted in net incoming resources of £618,378 (2020 outgoing resources: £188,394). The fund at the end of the year amounted to £5,221,018 (2020: £4,602,640 ). Funds are required to be retained for future scholarship commitments; at the year end these amounted to £131,268 (2020: £113,429).

Net incoming / (outgoing) resources include the impact of gains / (losses) on investments.

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Trustees’ report (continued)

The Privy Purse Charitable Trust provide funding to the City of London School which comprises Bursary Funding, Administration Funding and Teaching and Pastoral Care Funding. The grant is reviewed annually and the Funding for the next year is agreed by 31 March each year.

The Trustees have provided the Charity Commission with full details of the amount of all donations made during the year.

The Trustees have the power to invest in such assets as they see fit. The investment objective is to attain a balance between capital and income return and to achieve income growth to enable the Trust to maintain the real value of its annual donations. Performance is in line with benchmarks agreed.

Reserves

The policy of the Trustees is to distribute annually substantially all of the income arising in the year, after deduction of expenditure. In line with this policy, the Trustees currently seek to generate a return of inflation plus 4% on the investment portfolio . At 31 March 2021, free reserves amounted to £5,221,018 (2020: £4,602,640) which is consistent with this policy.

The portfolio of investments (including bank deposits and cash held by the investment managers) had a value of £5,459,051 at the year end, compared with a cost of £5,362,947 (2020: value £4,598,624; cost £4,127,160) .

Plans for Future Periods

The Trustees intend to continue with the current activities of the Trust for at least 12 months from the date of signing the accounts.

As a result of the ongoing COVID-19 pandemic, the Trustees have considered their ability to meet any obligations and discretionary spend over the next sixteen months. It is considered that free reserves are sufficiently high to meet current levels of expenditure, without any income, for approximately seven years. As donations are discretionary, with the exception of the Queen’s Chorister, the Trustees could decide to reduce or pause activities, thus prolonging the longevity of free reserves.

Auditors

The Trustees appointed Kreston Reeves LLP as auditors in March 2021.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Sir Michael Stevens KCVO

Trustee

6th December 2021

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

STATEMENT OF TRUSTEES' RESPONSIBILITIES IN RESPECT OF THE TRUSTEES’ REPORT AND THE FINANCIAL STATEMENTS

Under charity law, the trustees are responsible for preparing a Trustees’ Annual Report and financial statements for each financial year which show a true and fair view of the state of affairs of the charity and of the excess of income over expenditure for that period. The Trustees have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period.

In preparing these financial statements, generally accepted accounting practice entails that the trustees:

The Trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Independent auditor’s report to the Trustees of Privy Purse Charitable Trust

Opinion

We have audited the financial statements of Privy Purse Charitable Trust (“the charity”) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of Cash Flows and related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our

6

The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Independent auditor’s report to the Trustees of Privy Purse Charitable Trust (continued)

responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

Under the Charities Act 2011 we are required to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Independent auditor’s report to the Trustees of Privy Purse Charitable Trust (continued)

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charity and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related posting inappropriate journal entries to increase revenue or reduce expenditure. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Independent auditor’s report to the Trustees of Privy Purse Charitable Trust (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity’s trustees as a body, in accordance with section 145 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Kreston Reeves LLP

Chartered Accountants Statutory Auditor London

Date: 6th December 2021

Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Statement of financial activities

For the year ended 31 March 2021

Note
Income from:
Donations and legacies
2
Investments
3
Total incoming resources
Expenditure on:
Raising Funds:
Investment management fee
Charitable activities:
Ecclesiastical
Education
Other
4
Total resources expended
Net (outgoing) / incoming resources and
movement in fund before net gains /
(losses) on investments
Net gains / (losses) on investments
5
Net incoming / (outgoing) resources and
movement in fund
Fund balance brought forward at 1 April
Fund balance carried forward at 31 March		 Unrestricted
funds
2021
£
45,179
53,254
98,433
31,561
218,500
188,105
255,663
662,268
693,829
(595,396 )
1,213,774
618,378
4,602,640
5,221,018		 Total
funds
2021
£
45,179
53,254
98,433
31,561
218,500
188,105
255,663
662,268
693,829

(595,396 )
1,213,774
618,378
4,602,640
5,221,018		 Unrestricted
Funds
2020
£
699,211
96,632
795,843
29,476
217,797
125,987
261,421
605,205
634,681

161,162
(349,556 )
(188,394 )
4,791,034
4,602,640		 Total
funds
2020
£
699,211
96,632
795,843
29,476
217,797
125,987
261,421
605,205
634,681
161,162
(349,556)
(188,394)
4,791,034
4,602,640

The results above relate to continuing activities. There are no recognised gains or losses other than those included above. There is no difference between the results as stated and the results on a historical cost basis other than the inclusion of the investment portfolio at market value.

The funds carried forward at 31 March 2021 are all unrestricted funds.

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Balance sheet

At 31 March 2021

Note
Fixed assets
Investments
5
Current assets
Receivables
7
Cash and cash equivalents
Current Liabilities
Payables: amounts falling due within one year
8
Net current assets
Liabilities
Payables:amounts falling due after more than one year
9
Net assets
Funds
Unrestricted funds		 2021
£
5,459,051
445
74,648
(222,770)
(147,677)
(90,356)
5,221,018
5,221,018
5,221,018		 2020
£
4,598,624
21,280
255,829
(200,246 )
76,863
(72,847 )
4,602,640
4,602,640
4,602,640

The notes on pages 13 to 20 form part of these accounts.

The financial statements were approved and authorised for issue by the Trustees on December 2021 6th and signed on their behalf by:

Sir Michael Stevens KCVO

Trustee

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Statement of Cash Flows

At 31 March 2021

Cash flows from operating activities:
Net income / (expenditure) (as per the statement of financial activities)
Adjustments for:
Net (gain) / loss on investments
Investment income receivable
Decrease / (increase) in receivables
Increase / (decrease) in payables
Net cash generated by operating activities
Cash flows from investing activities:
Investment income received
Purchase of investments
Sale of investments
Net cash absorbed by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents as at 1 April 2020 / 2019
Cash and cash equivalents as at 31 March 2021 / 2020
Analysis of cash and cash equivalents
Cash at bank and in hand
Cash held by investment managers		 2021
£
618,378
(1,213,774)
(53,254)
20,835
40,033
(587,782)
53,254
(5,823,151)
6,159,177
389,280
(198,502)
569,105
370,603
2021
£
74,648
295,955
370,603		 2020
£
(188,394)
349,556
(96,632)
(9,878)
(35,314)
19,338
96,632
(1,503,888)
1,019,621
(387,635)
(368,297)
937,402
569,105
2020
£
255,829
313,276
569,105

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Notes

(forming part of the financial statements)

1 Accounting Policies

Basis of preparation

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) 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 (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 financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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 effective 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Privy Purse Charitable Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

Donations and legacies

Donations and legacies are recognised in the year in which they are received by the Trust.

Investment income

Dividends and interest are credited to income when due.

Resources expended

Expenditure is included when the liability for payment is incurred. Charitable donations and grants payable are charged in the year in which the commitment is made. Donations payable in the form of school fees for choristers payable in future years are recorded as a liability at the balance sheet date. Such donations are disclosed within Education in the analysis provided in note four. Expenditure is categorised in the statement of financial activities according to the nature of the expense and includes irrecoverable VAT.

Liabilities

Liabilities are recognised when a constructive obligation arises.

Investments

Investments are included in the balance sheet at their market values at the financial year end which are determined as follows:

Realised and unrealised investment gains and losses are recorded in the Statement of Financial Activities.

Foreign currencies

Transactions in foreign currencies are recorded at rates of exchange ruling on the date of transactions. Assets and liabilities in foreign currencies are recorded at the rates of exchange ruling at the balance sheet date and exchange differences are taken to the statement of financial activities.

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Funds

All funds of the Trust are held as unrestricted funds which are available for the Trustees to use in accordance with the Trust’s aims.

Tax

The Trust is considered to pass the tests set out ln Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation In respect of Income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 2S6 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Consequently there is no taxation charge for the year (2020: £nil).

Going Concern

The financial statements have been prepared on a going concern basis which the Trustees consider to be appropriate for the following reasons.

The business model of the charity is such that its charitable activities are limited to those which it has sufficient funds to support from the excess of funding received over the costs of administering the charity. The charity therefore has no specific commitments and no committed costs beyond its fixed costs of operation which are detailed in note four.

The Trustees have reviewed the cash flow forecasts for a period of sixteen months from the date of approval of these financial statements which indicate that the charity will have sufficient funds to meet its liabilities as they fall due for that period. The Trustees have also considered the implications of COVID-19 on these cash flow forecasts and consider that as a result of its operating model explained above, even if no further funding is received in the twelve month period, the charity has sufficient cash reserves to pay all committed costs.

Consequently, the Trustees are confident that the charity will have sufficient funds to continue to meet its liabilities as they fall due.

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Notes (continued)

2
Donations and legacies
Queen Mary’s Dolls' House
Oxford Scientific Films
3
Dividends and interest
UK Listed Investments
Overseas Listed Investments
Bank interest
4
Charitable donations
The following donations over £20,000 were made during the year:
City of London School (Choristers)
Chapel Royal – Hampton Court Palace (Ecclesiastical)
Chapel Royal – Windsor Great Park ( Ecclesiastical)
Chapel Royal – St James’s Palace (Ecclesiastical)
Sandringham Group of Parishes (Ecclesiastical)
Australian Red Cross - bushfires
Game and Wildlife Conservation Trust		 2021
£
44,079
1,100
45,179
2021
£
39,721
13,514
19
53,254
2021
£
142,000
50,634
26,718
29,965
61,897
-
27,386
338,600		 2020
£
695,195
4,016
699,211
2020
£
64,443
29,897
2,292
96,632
2020
£
123,000
52,689
25,707
46,744
65,063
25,009
-
215,212

The Trustees provide to the Charity Commission full details of the number and amount of all donations made during the year.

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The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Notes (continued)

4 Charitable donations (continued)

During the year, 337 donations totalling £656,180 (2020: 342 donations totalling £600,720) were made to charities within the following classifications:

Ecclesiastical
Education
Other:
Aged
Animals
Armed Services
Children & Youth
Cultural
Disabled
Environment
Family Welfare
Hospices & Hospitals
Medical Research
Medical Welfare
Overseas Aid
Restoration of Cathedrals & Churches
Royal Almonry
Social Welfare
Sport
Trades & Professions
Voluntary Services		 Charitable
Donations
Support
Costs
2021
Total
No.
£
£
£
34
217,884
614
218,498
2
188,087
36
188,123
20
17,285
361
17,646
19
9,810
343
10,153
43
21,550
777
22,327
41
23,230
741
23,971
19
11,000
343
11,343
21
11,230
379
11,609
13
39,136
235
39,371
8
4,140
145
4,285
12
20,410
217
20,627
9
5,840
163
6,003
15
15,060
271
15,331
3
1,500
54
1,554
6
14,393
108
14,501
1
5,945
18
5,963
13
9,500
235
9,735
23
16,440
416
16,856
29
20,500
524
21,024
6
3,240
108
3,348
337
656,180
6,088
662,268		 2020
£
217,797
125,987
11,093
6,285
11,914
12,328
5,536
6,892
59,702
2,175
9,099
3,258
5,214
45,825
31,898
6,261
25,184
6,303
10,630
1,824
605,205

Support costs are allocated to the categories of charitable activities on the basis of the number of donations in each category as it is not possible to allocate the costs on a specific basis.

Included within governance costs are audit fees, of which £Nil (2020: £560) are attributable to Her Majesty’s Chapel Royal. A donation was made from the Trust to Her Majesty’s Chapel Royal in respect of Independent Examination Fees of £3,420 (2020: £Nil).

16

The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Notes (continued)

4 Charitable donations (continued)

In February 2017, it was agreed that City of London School would take on the primary responsibility for the boys of the St. James's Palace Chapel Royal Choir which would be funded annually by a grant from The Privy Purse Charitable Trust (2021: £142,000; 2020: £123,000) and the HM Chapel Royal Frank McFarlane Bequest Fund (2021: £15,000; 2020: £15,000). The Privy Purse Charitable Trust funding comprises Bursary Funding, Administration Funding and Teaching and Pastoral Care Funding. The grant is reviewed annually and the Funding for the next year is agreed by 31 March each year. The grant included in the 2020-21 accounts is for 1 April 2021 to 31 March 2022.

The new grant arrangement for the Choristers has led to a release of the previously held provision for their school fees. The remaining provision held for school fees as at 31st March 2021 is for individuals who fall outside of the scope of the grant agreement and any terms in lieu for the existing Choristers that had been accrued prior to the signing of the grant agreement.

School fees for choristers paid during the year totalled £28,248 ( 2020: £34,074 ), being HM Chapel Royal, St James’s Palace £1,047 ( 2020: £1,059 ) and The Queen’s choristers, St. George’s Chapel, Windsor £27,201 ( 2020: £33,015 ). The amounts credited or charged to the statement of financial activities for HM Chapel Royal, St James’s Palace were £nil ( 2020: £nil) and for The Queen’s choristers, St. George’s Chapel, Windsor was a charge of £46,087 (2020: £2,974). An analysis of the total movement is presented below.

Choristers’ School fees/The Queen’s Chorister Scholarship
Amounts payable
Commitments at 1 April
Commitments made in the year
Commitments written back in the year
Charged / (credited) to statement of financial activities
Paid in the year
Commitments at 31 March
Commitments at 31 March are payable:
Within one year
After more than one year		 2021
£
113,429
46,087
-
159,516
(28,248)
131,268
40,912
90,356
131,268		 2020
£
144,529
2,974
-
2,974
(34,074 )
113,429
40,582
72,847
113,429

17

The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Notes (continued)

5
Investments
UK listed investments
Overseas listed investments
Cash held by investment managers		 Cost at
31 March
2021
£
5,066,992
-
5,066,992
295,955
5,362,947		 Market Value
at 31 March
2021
£
5,163,096
-
5,163,096
295,955
5,459,051		 Cost at
31 March
2020
£
2,415,190
1,398,694
3,813,884
313,276
4,127,160		 Market Value
at 31 March
2020
£
2,664,826
1,620,522
4,285,348
313,276
4,598,624
Opening market value of investments
Disposals
Purchases at cost
Unrealised gains / (losses)
Closing market value of investments
Realised gains / (losses)
Unrealised gains / (losses)
Net realised and unrealised gains / (losses)		 2021
£
4,285,348
(5,014,912)
5,823,151
69,509
5,163,096
1,144,265
69,509
1,213,774

All funds are managed by Cazenove.

The investment portfolios of The Military Knights of Windsor, The Military Knights of Windsor Widows and Orphans Benevolent Funds, Frank McFarlane Bequest Fund and the Benyon Bequest Fund are combined with that of The Privy Purse Charitable Trust and the combined portfolio is managed as one. At 31 March 2021, the value of their share of the investment portfolio, which has not been included on the balance sheet, was £817,680 ( 2020: £646,521) .

6 Trustees’ remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020: £nil)

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020: £nil).

18

The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Notes (continued)

Notes (continued) Notes (continued)
7
Receivables
2021
£
Receivables
445
445
8
Current liabilities: amounts falling due within one year
2021
£
Purchase ledger
1,585
Donations payable
182,912
Accruals
38,038
Sundry Creditors
235
222,770
9
Payables: amounts falling due after more than one year
2021
£
Donations payable
90,356
90,356
10
Funds
Year ended 31st March 2021
Opening
balance at
1 April
2020
Income Expenditure
Gains /
(losses)
£
£
£
£
Unrestricted Funds
4,602,640
98,433
(693,829)
1,213,774
4,602,640
98,433
(693,829)
1,213,774		 2020
£
21,280
21,280
2020
£
614
163,582
36,050
-
200,246
2020
£
72,847
72,847
Closing
balance at
31 March
2021
£
5,221,018
4,602,640
98,433
(693,829)
1,213,774		 5,221,018

19

The Privy Purse Charitable Trust Trustees’ report and financial statements 31 March 2021

Notes (continued)

Year ended 31[st] March 2020

ear ended 31st March 2020
Unrestricted Funds Opening
balance at
1 April
2019
Income
Expenditure
Gains /
(losses)
Closing
balance at
31 March
2020
£
£
£
£
£
4,791,034
795,843
(634,681)
(349,556)
4,602,640
4,791,034
795,843
(634,681)
(349,556)
4,602,640

11 Related party transactions

Balance at year Transactions in Transactions in Details of transaction
end the year
£ 2021 2020 2021 2020
Royal Collection 28 - 44,080 694,873 Donation of income from RCT, net of
Trust (RCT) expenses, from the admission to Queen
Mary’s Dolls’ House, Windsor Castle.
Privy Purse (PP) - - (4,790) (4,689) Recharge for Maundy Purses.
Historic Royal Palaces (23,009) (25,403) (23,250) (25,403) Recharge for salaries of shared
(HRP) employees.
HM Chapel Royal, St. 411 15,132 411 15,132 Recharge for salaries of shared
James’s Palace employees.
(HMCR)
Military Knights of - - 560 280 Donation made annually
Windsor (MKW)

A donation was made from the Trust to Her Majesty’s Chapel Royal in respect of Independent Examination Fees of £3,420 (2020: £Nil).

Related party balances are receivable and payable on demand.

12 Controlling Party

The Trustees are the controlling party of the Charity.

20