ILGS Reigate Grammar School Trust Financial Statements for the year ended 31 August 2021 together with Trustee's and Auditors, reports Registered Charity No. 312030
Relgate Grammar School Trust Legal and Admlnlstratlve Informatlon Address: Reigate Grammar School Reigate Road Reigate Surrey RH2 OQS Banker5'. Barclays Bank PIC Level 12, 1 Churchill Place London E14 5HP Audltor5: Haysmacintyre LLP Registered Auditors 10 Queen Street Place London EC4R 1AG Sollcltors: Goodyear Blackle Herrington LLP Oak House Tanshire Park Shackleford Road Elstead Surrey GU8 6LB Corporate Trustee Reigate Grammar School The Governors of Relgate Grammar School are as follows: Mr James Dean (Chalrman) Iresigned 6 December 20211 Dr Shrilla Banerjee lappointed 10 March 20211 Mr Marc Benton Mrs Mary Braughler-Edmunds Mr Colin Cobain Mr David Cole Mr Brian Day Mr Christopher Dixon Mr Mark Elsey {Vice Chairman. Chairman from 6 December 20211 Mr Luke Herbert Mrs Maxine Hulme Mrs Lisa Pase Mr Nicholas Weber Mr Edward Wheeler (appointed 26 April 20211
Reigate Grammar School Trust Trustee's Report for the year ended 31 August 2021 The Trustee is pleased to present its report together with the financial Statements of the Charity for the year ended 31 August 2021. Legal and administrative informatlon set out on page 1 form5 part of this report. The financTal statements comply with current statutory requirements, FR5102 the Financial Reporting Standard applicable in the UK and Ireland and the Statement of Recommended Practice Acccluntins ond reporting by chorities ISORP IFRS1o212t Edltlon. Status and Admin15tratlon: The Charity was constituted by a Scheme Sealed on 27 July 1976, when Reigate Grammar School feverted to independent Status. The Scheme was amended on 31 May 1994 as a consequence of the Governors. decision that the School should become a fully co-edtscational school by the start of the 199711998 academic year. On 21 July 2011 a further scheme was adopted in order to enable the Trust to hold property previously held by the Godfrey Searle Choir Trust (Charity No: 3051021. Object of the Trust: At 31 August 2021 the Charity held certain property on tr¥Jst in accordance with the scheme approved by the Charity Commi55ion. In addition, donations for the Specific purpose of fTnancing future awards and prizes were held in restricted funds. The Trustee has had regard to the Charity Commi55ion's guidance on public benefit. Trustee's Selectlon of Authorlsed Representatlves: The Trustee, Relgate Grammar School, aim5 to achieve a wde spread of knowledge and experience through its authorised representative5 $0 as to fulfil its statutory obligations and detemiine the aims and overall conduct of the Trust. All authorised representatives are Governors of Reigate Grammar School. Revlew of Actlvltles: The assets of the Trust are as follows: 1. Land held under title number SY612426 - this 15 the playground and the oldest premises w)ed by the Schfy)l and the Art and Technology Centre. This property is a permanent endowment and is held on trust in accordance with the scheme approved by the Charity Commi55ion. 2. The land and bulldlngs donated by the Godfrey Searle Cholr Trust. On 1 November 2011 the transfer of land into the trust previously held by The Godf rey Searle Choir Trust (Charity No: 3051021 under title number SY322956 was formally completed. At the same time the responsibility for managing and maintaining the Godf rey Searle Cholr was transferred from The Godfrey Searle Choir Trust to the School. 3. Investments are held under the following trusts: The Gooda Prize Fund. The Frank Gill Memorial Prize. The Paul Bewshea Memorial Scholarship Fund; The Muir Prize for Business Studies,. The Karel Kornell Prize for Economics. Sidney Vincent John Edwards Prize;
Rei8ate Grammar School Trust Trustee's Report for the year ended 31 August 2021 The Christopher Goddln Prize. The Charles Hart Memorial Fund; The S Arbury Prlze for Physics; The S Arbury Prize for Cricket; The Ralph Sage Memorial Prizes; The Martin Exhibition5: The Wolfson Foundation Bursaries Fund; and The Asslsted Places Fund. Flnandal Results: The net a55ets of the Trust as at 31 August 2021 were £2,261,464 12020: £2,253,436). FTxed assets total £1,337,384 12020: £1,348,850) of the value of net assets, which is freehold land and playing fields at Reigate St Mary's. There were two main Tncome streams Irom the Trust during the period. Firstly, income from fees for the use of land owned by the Trust by local businesses and residents of The Close of £5,190 12020: £5,168). Secondly, interest payable by Reigate Grammar School on the loan the Trust has made to this group entity of £800,000. Interest receivable in respect of this loan was £18,800 in the year to 31 August 2021 12020: £21,576) Isee note 8 for further details). The Trustee considers the re5uIt5 to be satlsfactory. Investment Pollcy: The Trust's financial assets are very small in relation to the overall resources of Reigate Grammar School. A low rlsk strategy Is followed with the majority of cash and inve5tment5 being held on detX)sit. The Trustee5 have entered into a Loan Agreement wfth RGS, whereby £800,CKJO of cash has been lent to RGS, with interest being paid to the Reigate Grammar School Trust at a rate of 2% above base rate per annum. Reserves: The Trustee adopts a pnjdent and cautlous approach In managing the property and financial resources of the Trust. The Trust's focus is to maintain the land and bulldlngs donated by the Godfrey Searle Choir Trust in 2011 and to utilise the funds to the benefit of pupils at Reigate Grammar School. The Trust maintain5 three Restdcted Funds, the net assets of which amounted to £2,261,464 at 31 August 2021 12020: E2,253,4361. The largest fund is the Godfrey Searle Property fund, which holds the freehold land and buildings at Reigate St Mary's has net assets of £2,211,730 as at 31 August 2021 12020: E2,200,5961. The Paul Bewshea fund within the Trust ha5 funded three £1,000 Paul Bewshea Scholarships at the school for the academic year 202012021. These Scholarships totalled £3,OCK) for the period. Given that the restricted funds are being used to fund these scholarships. the balance held in the Paul Bewshea Fund is likely to reduce to nil over time. At 31 August 2021 the Paul Bewshea fund had net assets of £36,444 12020: E39,7191.The Foundation and Charity Fund5 hold funds for other awards and has net a55ets of E13,290 as at 31 August 2021 12020: £13,121).
Reigate Grammar School Trust Trustee's Report for the year ended 31 August 2021 Rlsk Management: The Trustee has considered the major risks affectlng the Trust, and have Implemented approprlate systems and controls. The Governor5 of Reigate Grammar School, as corporate trustee, are continuing to actively monltor the changing operational larsdscape and impact on a55ets and related incolne held in the Trust. Grant Maklng Pollcle5: The Trust made grants, awards and prize5 during the peri1 totalling £3.IX)012020: £3.0001. Statement of Trustee's Responsibilities The Trustee is responsible for preparing the Trustee's ReFX)rt and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice I'UK GAIP'I. The law applicable to charitie5 in England & Wale5 require5 the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming re50urce5 and application of resources of the charity for that period. In preparing these financial statements, the Trustee is required to.. Select suitable accounting policies and then apply them consistently. Observe the methods arKI principle5 in the Charities SORP. 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. Prepare the financial statements on the going concern basis unless It Is Inappropdate to presume that the charity will continue in bu51nes5. The Tntstee is responslble for keeplng proper accounting records that disc105e wyth reasonable accuracy at any one time the financial posltlon of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity IAccounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also re¥M)nsible for safeguarding the assets of the charlty and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustee and Signed on its behalf on * l March 2022 Mark Elsey {Chairman, Reigate Grammar School)
Independent audltors, report to the member of Reigate Grammar School Trust Opin?on We have audited the financial statements of Relgate Grammar SchcKJl Trust for the year ended 31 August 2021 whlch comprise the Staternent of Financial Actiwties, the Balance Sheet, and notes to the flnancial statements, including a summary of significant accounting pollcies. The financial porting framework that has been applied In thelr preparation is app17cable Law and Unlted Klngdom Accounting Standard5, including Financial Reporting Standard 102 The Flnancial Reportirjs Standord applicoble In the UK and Republic of Ireland (United Kingdorn Generally Accepted Accounting Practicel. In our opinion, the f5nancial statements.. give a true and fair wew of the state of the charfty's affalrs as at 31 August 2021 and of the net movement In fund5, including the income and expenditu, for the year then ended. have been properly prepa in accordance with United Kingdom Generally Accepted Accounting Practlce. and have been prepared in aCcOrdae wlth the requlrements of the Charities Act 2011. Basts for opSn5on We have been apwlnted as audltor under section 144 of the Charitie5 Act Z011 and report in accordan¢e bwth Act and reLevant regulations made or hang effect thereunder. We conducted our audit in accordance wlh Intemational Standard5 on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilities under those standards are further described In the Auditor's responsibilities for the audit of the finarfial statements sectlon of our report. We are independent of Lhe charfty In accordance with the ethical requirernents that are relevant ts> our aLJdit of financial statements in the UK, incl(Kling the FRC'5 Ethical Standard, and we have fulfilled our other ethical re5pon5ibilities in cordanCe with these requirements. We believe that the aud(t eden we have obtalned Is sufficient and appropriate to provide a basi5 for our opinion. Concluslons rolatlng to golng concern In at¥liting the financial statements, we have concluded that the Tru5tees' use of the going concem basis of aCcnting in the preparation of the flnanclal statements Is appropriate. Based on the work we have performed, we have not Identlfled any material uertaIntIeS relating to events or conditi(x)s that. IndIdUaLlY or collectively, may cast significant doubt on the charity's ablllty to continue as a going concem for a period of at least twelve months from when the finarKial 5Latement5 are auth0ri5ed for issue. Our resFonsibilities and the responslbilltles of the Trustees tEspect to go5 concern are described in the relevant section5 of this report. Other Informatlon The Trustees are responslble for the other information. The other information comprises the information included in the Trustees. RerKJrt. Our oplnlon on the flnanclal statement5 does rrfjt cover the other information and, except to the extent otherwise explicitly stated in our )rt, we do wt express any form of assurance conclusion thereon. In connection wth wr aujit of the financial statements, our reSnSIbILIty Is to read the other inforrnation and, in doing so, conslder whether the other inforniation is materially inconsistent with the financlal statements or our krsowledge obtained in the audlt or otherwise appears to te materially misstated. If we identlfy sh matertal IOnSIstenc}eS or apparent rnaterial misstaiements, we are requlred to determlne whether there is a material misstatement in the financial statements or a material misstatement of the other infomation. If, based on the work have performed, we conelude that there is a material misstaternent of this other Informatlon, we are requlred to report that fact. We have nothing to report in thls regard. Mattèrs on whlch we are requlred to report by exceptlon We have nothing to port in pect of the followng matters in latiOn to which the Charities Ikcount5 and Reports) Regulations 2CQ8 requires to pOrt to you If, In our opinion.. adequate accounting records have not been kept by the charity. or wfficient accounting CordS have not been kept,. or the charity financial statetnents are not Tn agreement wlth the accountlng records and return5: or we have not recelved all the information and explanations we qUI for our audlt. RÈspon51bilitle5 of Trustee for the flnanclal statements As explained more fully in the Statement of Trustees, Responslbilities set out on page 4, the Tru5tee5 are re3Pgnsible for the preparation of the finaHcial statements and for befng satisfied that they give a true and fair wew, and for internal control as the Trustees detemine Is necessary to enable the preparation of financial staternents Ihat are free from material missiaterrent, WhetIr due to frdud or ermr.
Independent auditors, report to the member of Reigate Grammar School Trust In preparing the finaFKial statements, the Trustees are responsible for asse5$7ng the charity's ability to continue as a 8oin8 concern, disclosing, as applicable, matters related to going concern and using the going conceTn basis of accounting unless the Trustees either intend to liquidate the charity or to cease operatlons, or have rKJ realisti£ altemative but to (k) so. Auditors, rè¥>onslbllltles for the audlt of the flnandal 5tstements Ouf 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 auditor's report that Incluts our opinion. Reasonable assurance Is a high level of a55urance, bui is a guarantee that an audit conducted in accordance Istss IUKI wll always detect a materfal misstatement when it exists. Mi55tatements can adse from fraud or error and are considered rnaterial rf, indivFdually or in the aggregate, they could reasonably be expected to Influence the economic declsions of users taken on the basis of these flnanclal statement5. Irregularities, including fraud. are instances of wn<ompliance Vth laws and regulations. We design prC(edU In Ilne with our respotF5ibTlities, outllned at¥)ve, to detect material tnisstatements in spect of IrreguLarities, including fra1. The extent to which our procedures a capable of detecting irregularities, including frdud is detailed below: Based on our understanding of the charily and the envlmnment In whlch it operate, we identified that the printipal risks of n-CO[npl7ance vAth Laws and regulations related to Charity Law and we considered the extent to which non- cornpliance rTTright have a matedal effect on the financial statentS. We also consldered those Laws and regulations that have a direct impact on the preparalion of the flnanclal statements sh as the Charitie5 kt 2011 and the Statement of Recommended Practi for Charities ISORP 20191. We evaluated management's InntIveS and opportunitres for fraudulent manipulation of the financial statennts lincludin8 the risk of override of controlsl, and determined that the priKipal risks lated to posting inappropriate Joumal entries and managernent bias in certain accountiry estimates and jud8ement5. Atjdit pmcedures performed by the engagement team included.. Inspecting Corpondence with regulators and tax authorities. Discu55ions wth managernent including consideration of known or SusCled instances of non-compliance with law5 and regulation and fraud. Evaluating managernent's contmls degd to prevent and detect igUlaritIes. Identifylng and testing journals, in particular journal entrfes posted with significant value5', and Challenging assumptlons and judgements made by management In thelr critical accounting estimates and challenge of the underlwng assumption5. A further description of our responsibilities for the audit of the finatKial statement5 F5 located on the Flnancial Reporting Council's website at: www.frc.or .uklauditorsrcs onsibililies. This description forrns part of our auditor's rewrt. Use of our report This report is made solely to the charity's trustees, a5 a body, in accordance wlth sectlon 144 of the Charitie5 Act 2011 and wulations made under sectlon 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 stste to them in an Auditorf5 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's trustees as a body for our audit wort, for this report. or for the opinions we have formed. LLLR Haysmaclntyre LLP, Statutory Audltgr5 30 March 2022 10 Queen stet Place London EC4R 1AG Hay5madntytE LLP is eligible to act as an audltor In terms of Section 1212 of the Companies 1 21X
Reigate Grammar School Trust Statement of Financial Activitles for the year ended 31 August 2021 RESTRICTED 2020 Notes 2021 INCOME Investment Income - Property Investment Income - Interest 5,190 18,900 5.168 21,728 24,090 26,896 EXPENDITURE ON: Charitable act?vity: Grants, awards and prizes Properly Costs Auditors, Remuneration 13,lJOOI 112,3061 1,1001 3,CQOI 12,5441 1,1001 TOTAL EXPENDITURE 116,4061 16,6441 NET INCOME BEFORE INVESTMENT GAINS 7,684 10,252 Unrealised investment gainslllosses) 344 {4231 NET INCOME 8,028 9,829 Balance brought fOard 2,253,436 2,243,607 Balance carried fOard £2,261,464 £2,253,436 No summary income and expenditure account has been prepared because thi5 informatiori 15 clearly Identifled in the above statement.
Reigate Grammar School Trust Balance Sheet as at 31 August 2021 2021 2020 Note5 TANGIBLE FIXED ASSETS Land and Buildings Investment5 1.337,384 2,372 1.348,850 2,OZ8 £1,339,756 £1,350,878 CURRENT ASSETS Debtors Cash at bank and in hand 800,045 122,833 801,190 102,468 922,878 903,658 CREDITORS.. dLte wlthin one year 11,1701 1,1001 NET CURRENT ASSETS 921,708 902,558 NET ASSETS £2,261.464 E2,253,436 Represented by: RESTRicfED FUNDS £2,261,464 E2,253,436 Approved and ised for i55ue by the Trustee on I l March 2022 Mark Elsey, Representatlve of the Trustee The accofflpanying notes are an integral part of thps balance sheet.
Reigate Grammar School Trust Notes to the Flnanclal Statements for the year ended 31 August 2021 ACCOUNTING POLICIES Statement of compllance The financial statements are prepared under the historical c05t convention as modified to include the revaluation of Investments. The format of the financial statements has been presented to comply ¥Mth the Charities Act 2011, FRS102 The Flnancial Reporting Standard applicable in the UK ond Ireland and the Statement of Recommended Practlce Accountlng and Reportlng by Charitie5 {Second Edition, effective 1 January 20191. The Charity is a Public Benefit Entity as deflned by FRS102. b. General Informatlon The Charity is a charity registered in England and Wale5 Icharity number= 3120301. The Charity's registered office address is: Reigate Grammar School, Reigate Road, Reigate, Surrey. RH2 OQS. Basis of Accounting The financial stateMt5 have been prepared under the Charities Act 2011 on the hlstorfcal cost convention as modified by the valuation of investments, which 15 consistent with the prior year. d. Disc105ure exemptions The Charity has taken advantage of the exemptions which are available to subsidiary undertakings, in accordance with section 1.12 of FR5102, from presenting a statement of cash flows and disclosures relating to financial instruments. Golng concern The Trustee considers that there are no material uncertainties which would cast doubt on the Charity's ability to continue as a going concern. f. Sl8niflcant judgments and sources of estlmatlon uncertalnty The preparation of financial Statements in compliance with FRS 102 requires the use of certa7n crStical accounting estimates. It also require5 management to exercise judgment in applying the Charity's accounting policie5. The key judgement that has been applied by management relates to the useful economic life of tangible fixed a55ets. The following principal accounting pollcles have been applied: g. Income All Income Is recognlsed when the criteria of entitlement, measurement and probablllty of reIpt have been satlsfled. Rent receivable is recognised In the pertod to whlch It relates. Investment Tncome, including interest receivable, and other miscellaneous Income are accounted for on a receivable basis. h. Expendlture Expenditure is recognised a5 soon a5 the related liability is incurred and has been classTfied under headings that aggregate all costs relating to that category. Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to the experbditure. Grant making policy Grants are recognised as expenditure in the academic year to which the award relate5.
Reigate Grammar School Trust Notes to the Financlal Statements for the year ended 31 August 2021 ACCOUNTING POLICIES Itontinued) Tanglble Flxed Assets and Depreciation Tangible flxed assets are initially recognised at Cost. Depreciation is provided on fixed assets to write off their cost less estimated residual value over thelr estimated useful economic life by equal annual instalments as follows.. Freehold buildlngs 20 to 50 years The carrying value5 of tangible fixed assets are revlewed for impairment in accordance with the requirements of FR5102. k. Investments Listed investments held for the long-term to generate Income or capital growth are carried at fair value as flxed assets. Realised gains are the dTfference between sales proceeds and the carrying value of the investment. The carrying value is the fair value at the beginning of the year or the purchase c05t where the Investment was acquired during the year. Unrealised gains are the change in value of ?nvestments after taking into account any movements in investment holdings such as purchases and disposals of investments. Realised and unrealised galns are accounted for within the Statement of Financial Activities. Financial instruments Basic financial instruments transactions that result in the recognltion of financial assets and liabilities such trade and other accounts receivable and payable are accounted for on the following basis: Debtor5 and creditors Debtor5 and cred?tors are measured at the transaction price less any provision for impairment. Any losses arising from impairment are recognised as expenditure. m. Funds Restricted income funds comprise unexpended balances of donations and grants held In trust to be applied for specific purposes. 10
Relgate Grammar School Trust Notes to the Financlal Statements for the year ended 31 August 2021 2. INVESTMENT INCOME 2021 2020 Interest £18.900 £21,728 Interest of £18,8CN)12020". £21,576) ha5 been paid by Relgate Grammar School to the Trust in respect of the year to 31 August 2021 in respect of the loan of E81)0,(XX). There is also bank interest which has been received of £10012020: £1521. 3. STAFF COSTS The Trust ha5 no employees. No persons connected with the Trustee received any remuneration or other benefTts from the Trust. 4. LAND AND BUILDINGS Freehold Land and Buildings Cost At 31 August 2020 and 31 August 2021 1,450,135 Depreclatlon At 31 August 2020 Charge for the period At 31 August 2021 {101,2851 111,466 {112,7511 Net Book Value At 31 Auiust 2021 £1,337,384 At 31 August 2020 £1,348,850 5. INVESTMENTS 2021 2020 Market value brought forward Unrealised investment gainslllossesl 2,028 344 2,451 14231 Mar1(et value carried forward £2,372 £2,028 Hlstorfical cost as at 31 August 2021 £3,794 £3,794
Rei8ate Grammar School Trust Notes to the Financial Statements for the year ended 31 August 2021 DEBTORS 2021 2020 Trade debtor VAT debtor Intercompany debtor - loan to Reigate Grammar School 45 90 1,1(Kl 800,OIX) 800,000 £800,045 £801,190 The Loan is repayable at any time on demand by the Trust, and the Trust may at any time, by notice to the School, cancel its commitment to advance the Loan or any part of it. The maximum amount to be lent to Reigate Grammar School is £1,000,OCQ. CREDITORS 2021 2020 Other creditors and accruals 1,170 1.1C¥) £1,170 £1,100 RELATED PARTIES The Trust owns the fieehold of the land held under title number SY612426 - thls is the playground and the oldest premise5 used by Reigate Grammar School and the Art and Technology Centre. should be noted that the charitable company holds the property on trust in accordance with the scheme approved by the Charity Commlsslons related to the transfer of Reigate Grammar School. Thls is because the land Is a permanent endowment. The Trust has provided Reigate Gramfflar School with a loan of £800,000. Interest of £18,800 12020.. £21.5761 has been paid by Reigate Grammar School to the Trust in respect of the year to 31 August 2021. During the year 202012021, three Paul Bewshea awards of £1,000 each were made totalling £3,CQO 1201912020: £3,C(()) to pupls at Reigate Grammar School.There are no other related party transactions. 12
Reigate Grammar School Trust Notes to the Financial Statements for the year ended 31 August 2021 RESTRICTED FUNDS Balance at 1 September 2020 Income Expendlture Investment ILosses)l Galns Balance at 31 August 2021 Paul Bewshea Fund Foundatior5 and Charity Funds Godfrey Searle Property 39,719 13,2751 36,444 13,121 2,200,596 100 23,990 12751 112,856 344 13,290 2,211,730 £2,253,436 £24,090 1£16,4(XJ} £344 £2,261,464 Balance at I September 2019 Income Expendlture Investment ILosses)l Galns Balance at 31 August 2020 Paul Bewshea Fund Foundation and Charity Funds Godfrey Searle Property 42,989 13,2751 39,719 13,672 2,186,946 147 26,744 12751 113,0941 4231 13,121 2,2(X).596 E2,243,607 £26,896 1£16.6441 £14231 £2,253,436 The Paul Bewshea Fund was set up to provide financlal asSlStance to any pupil awarded The Paul Bewshea Memorial Scholarship. In order to be eligible for thi5 scholarship the pupil concerned must have achieved excellent academlc results and have also shown an interest in aviation or science as a career. During the year 202012021, three Paul Bewshea awards of £l,OC(l each were made totalling £3,00012019120ZO: E3.WOI. The Foundation and Charity Funds were set up to provide for the cost of awarding, a5 approprtate, on an annual ba515 the other prizes and awards noted on pages 2 and 3. The Godfrey Searle Property Fund wa5 created by the donation of land and buildings by the Godfrey Searle Choir Trust. On 1 November 2011 the transfer of land previously held by The Godfrey Searle Choir Trust (Charity No: 3051021 under title numbers SY313629 and SY322956 was forFnally completed. At the same time, the responsibility for managing and maintaining the Godfrey Searle Choir was transferred from The Godfrey Searle Choir Trust to the School. The transfer of the land to the Trust, rather than to the School, reflected that the land, in part, is subject to permanent endowment. The costs of maintaining the properties are borne by the fund and income arising accrues to the fund.