Charity number: 313524
THE INNS OF COURT AND BAR EDUCATIONAL TRUST
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2020
LUBBOCK FINE LLP Chartered Accountants Paternoster House 65 St Paul's Churchyard London EC4M 8AB
THE INNS OF COURT AND BAR EDUCATIONAL TRUST
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 5 |
| Independent Auditors' Report on the Financial Statements | 6 - 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Notes to the Financial Statements | 11 - 17 |
THE INNS OF COURT AND BAR EDUCATIONAL TRUST
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020
| Trustees | Mrs Justice Tipples DBE |
|---|---|
| Edward Cousins | |
| Rory Phillips QC | |
| William East | |
| Nicholas Vineall QC | |
| Colin Edelman QC | |
| Benjamin Wood | |
| HHJ Lynn Margaret Tayton QC | |
| Kiril Waite | |
| Charity registered number 313524 Principal office 9 Gray's Inn Square London WC1R 5JD Independent auditors Lubbock Fine LLP Chartered Accountants & Statutory Auditors Paternoster House 65 St Paul's Churchyard London EC4M 8AB Investment Managers Investec 2 Gresham Street London EC2V 7QP |
Page 1
THE INNS OF COURT AND BAR EDUCATIONAL TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The Trustees present their annual report together with the audited financial statements of The Inns of Court and Bar Educational Trust (the Charity) for the year ended 31 December 2020. The Trustees confirm that the Annual Report and financial statements of the Charity comply with the current statutory requirements, the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice (SORP), 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).
Structure, governance and management
The Council of Legal Education (CLE) was founded in 1852. On 31 January 1997, under a deed of agreement of the same date, net assets amounting to £3,011,765 were transferred from the CLE to a newly incorporated Charity, the Inns of Court School of Law (ICSL). On 1 February 1997, the CLE was reconstituted as the Inns of Court & Bar Educational Trust (ICBET) retaining investments of £2,747,702. The constitution of ICBET has been amended in subsequent years: approved by the Council of the Inns of Court (COIC) in October 2001 and by the General Council of the Bar in November 2001.
However, in October 2018 doubts arose as to the validity of the constitution and the Trustees applied to the Charity Commission for a cy pres scheme. On 3 December 2018 the Charity Commission made a scheme in respect of ICBET. On 3 July 2019 the scheme was, with the prior consent of the Charity Commission, COIC and the Bar Council, amended by a resolution of the Trustees. The selection and appointment of Trustees was governed by paragraphs 3 and 5 of ICBET's constitution, and the appointment of the Trustees was confirmed by paragraph 5 of the scheme.
The Chairman of Trustees is nominated by the President of COIC following consultation with the Chairman of the General Council of the Bar. Four Trustees are nominated by COIC and four Trustees are nominated by the General Council of the Bar. Each of the Trustees serves a term of three years and may be nominated for re appointment. The Secretary to COIC is the Secretary to ICBET.
The Trustees review the risk facing the Charity at regular meetings.
The following individuals served as Trustees during the year and since the year end:
Mrs Justice Tipples DBE Richard Latham QC (retired 31 January 2021) Edward Cousins Rory Phillips QC Rachel Spearing (retired 31 January 2021) William East Nicholas Vineall QC Colin Edelman QC Benjamin Wood (appointed 1 February 2020) HHJ Lynn Margaret Tayton QC (appointed 1 February 2021) Kiril Waite (appointed 1 February 2021)
Objectives and Activities
Formerly, ICBET formulated and implemented policy in relation to all aspects of education and training for the Bar. On 1 February 1997, the constitution was changed to support education and training for the Bar.
Paragraph 3 of the scheme provided that from 3 December 2018 that the objects of the Charity are �for the benefit of the public to further the due administration of justice and to advance legal education in each case by the provision of education and training to students aspiring to be called to the Bar of England and Wales or persons who having been so called are in pupillage or who have held a practising certificate for three years or less and accordingly are in need of further education�.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Objectives and Activities (continued)
ICBET's objectives are achieved through the award of grants and the Trust holds funds to be applied in the support of education and training for the Bar. In particular, its funds are designed to support the activities of organisations engaged in the further education of pupils and young and recently qualified barristers.
The policy in regard to grant making is to distribute as much of the investment income as is prudent to organisations engaged in the education and training of pupil barristers and the continuing education of young and recently qualified barristers.
On 4 December 2018 the Trustees unanimously resolved to make a grant of £2 million towards the costs of establishing the new structures proposed by COIC for student education, subject to the necessary approval of the structures by the Bar Standards Board. The making of this grant out of capital was approved by COIC on 3 December 2018 and by the Bar Council on 12 January 2019.
In setting the objectives and planning the activity of the Charity, the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit.
Achievements and performance
ICBET is reliant upon income from its investments supplemented by accumulated unrestricted funds as required. These instruments generated £54,125 (2019 - £107,517) during the year. A portion of this was distributed in grants to the Inns, the Circuits, and the Free Representation Unit. Grants to an aggregate value of £70,000 (2019 - £110,000) were made during the year to three Inns, five Circuits and the Free Representation Unit (FRU). A breakdown of the individual grants is shown in Note 3 of the financial statements. Grants were not made to the South Eastern Circuit and the Hon. Society of Lincoln�s Inn as their requests for grants did not fall within ICBET�s objects.
Financial review
The Trustees set out the general policy of the Trust. The Investment Manager has delegated power to buy and sell investments for the Trust in accordance with the Trust's investment policy. This appointment is reviewed regularly and the Investment Manager reports to the Trustees at their meetings. Every three years the Trustees review their policy statement.
In 2014 a working group shortlisted four investment managers and invited each to make a presentation to them and an independent investment adviser. Investec were appointed and an agreement appointing them was signed in July 2014. Investec have continued to act as Investment Manager throughout 2020.
ICBET's investments consist of a number of different types of investment such as fixed interest, equity and alternatives. The investment objective is to seek to provide an agreed annual income whilst maintaining the capital value of the Fund in real terms over the long term. As at 31 December 2020, the value of the investment Fund was £2.1m (2019 - £4.1m). Combined reserves totalled £2.17m (2019 - £2.2m) at the balance sheet date.
The Trustees consider it prudent to retain sufficient reserves to cover the annual costs of running the Charity which are approximately £100,000. At the balance sheet date unrestricted reserves exceed this amount.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Plans for future periods
On 24 September 2018 ICBET received an application to provide funds for the new Bar Professional Training Course to be provided by the Inns of Court College of Advocacy (the ICCA Course). This project was felt to be of sustainable long term benefit to the profession and on 4 December 2018 the Trustees agreed to make a grant of £2 million towards the costs of establishing the new structures proposed by COIC for student education, subject to the necessary approval for the structures by the Bar Standards Board. The award was approved by COIC and the Bar Council and on 13 February 2020 the grant of £2 million was paid to COIC.
On 28 January 2020 COIC indicated that it might be seeking a further substantial grant from ICBET to go towards the ICCA course, with an offer that it would give undertakings to continue the support which ICBET had historically given to the Circuits and FRU. On 14 February 2020 the Trustees wrote to COIC asking for further detail inter alia about the amount of any further grant requested and why it was sought, why COIC was looking to ICBET to provide funds and whether any other sources of funding were available, whether there was any updated information to provide about the ICCA Course and about the proposed undertakings. At meetings on 6 July 2020 and 31 July 2020, the trustees considered a letter which had been sent by COIC to the Trustees on 25 June 2020 providing a response to the questions posed by the Trustees on 14 February 2020. In response, COIC had explained that it believed it had a duty to explore the possibility of recouping expenditure made on the ICCA Course by the Inns, and so facilitate the Inns� support of the profession. On 8 September 2020, the Trustees wrote to COIC stating that they had been advised by leading counsel, Christopher McCall QC, that that purpose (i.e. recouping the Inns� expenditure), however worthy, was not within the purposes of ICBET (and indeed not wholly charitable). The letter sought further information as to the nature of the commitment the Inns had made to COIC or ICCA to fund the set-up costs of the ICCA Course. The letter also sought up-to-date information about the ICCA Course. On 15 October 2020, the President of COIC responded stating that COIC would not any longer be pursuing its request for a further grant.
The ongoing COVID 19 pandemic has adversely impacted global markets, and this adversely affected the value of the investments held by the Charity and income generated from these investments. The extent of the impact on the value of investments held by the Charity will depend on future developments, including the duration and spread of the outbreak, related advice and restrictions and the impact of COVID 19 on the financial markets and the overall economy, all of which are remain highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Charity�s results may be materially adversely affected and this could have an impact on the valuation of the Charity�s investments and the income generated from these investments. The Trustees are being kept up to date on the performance of the investment portfolio and will take the necessary steps to mitigate any significant adverse impact on the valuation of investments and income generated from these investments.
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 Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & 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 Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
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! select suitable accounting policies and then apply them consistently;
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! observe the methods and principles of the Charities SORP (FRS 102);
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! make judgments and accounting estimates that are reasonable and prudent;
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! state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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! prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Statement of Trustees' responsibilities (continued)
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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! so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware of, and
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! that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Approved by order of the members of the board of Trustees and signed on their behalf by:
Mrs Justice Tipples DBE Trustee Date:
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE INNS OF COURT AND BAR EDUCATIONAL TRUST
FOR THE YEAR ENDED 31 DECEMBER 2020
Opinion
We have audited the financial statements of The Inns of Court and Bar Educational Trust (the 'charity') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet and the 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).
In our opinion the financial statements:
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! give a true and fair view of the state of the charity's affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended;
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! have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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! have been prepared in accordance with the requirements of the Charities Act 2011.
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 Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE INNS OF COURT AND BAR EDUCATIONAL TRUST (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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! the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
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! sufficient accounting records have not been kept; or
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! the financial statements are not in agreement with the accounting records and returns; or
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! we have not received all the information and explanations we require for our audit.
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 144 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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
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! The nature of the sector and the impact of Covid 19 on financial and operating performance and policies;
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! Enquiries of management, including obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to:
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Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and The internal controls established to mitigate risks related to fraud or non-compliance of laws and regulations; and
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! Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. The engagement team includes audit partners and staff who have extensive experience of working with charities in similar sectors and this experience was relevant to the discussion about where fraud risks might arise.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE INNS OF COURT AND BAR EDUCATIONAL TRUST (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Charities Act, Charities SORP and FRS 102.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the charity's ability to operate or to avoid a material penalty.
As a result of these procedures, we considered the particular areas that were susceptible to misstatement due to irregularities, including fraud were in respect of going concern. Our procedures to respond to risks identified included the following:
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! Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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! Enquiring of management concerning actual and potential litigation and claims;
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! Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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! Reading minutes of meetings of those charged with governance;
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! Reviewing correspondence with potential beneficiaries to assess the status of any additional funding requests which could ultimately lead to the winding up of the charity.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 Auditors' 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.
Lubbock Fine LLP
Chartered Accountants & Statutory Auditors Paternoster House 65 St Paul's Churchyard London EC4M 8AB 12 August 2021 Date:
Lubbock Fine LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
| Note Income and endowments from: Investments 2 Total income and endowments Expenditure on: Investment management costs Charitable activities 3 Total expenditure Net gains on investments 5 Net income/(expenditure) before other recognised gains and losses Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2020 £ 54,125 54,125 - 80,251 80,251 - (26,126) (26,126) 397,721 (26,126) 371,595 |
Endowment funds 2020 £ - - 16,672 - 16,672 14,907 (1,765) (1,765) 1,800,320 (1,765) 1,798,555 |
Total funds 2020 £ 54,125 54,125 16,672 80,251 96,923 14,907 (27,891) (27,891) 2,198,041 (27,891) 2,170,150 |
Total funds 2019 £ 107,517 107,517 |
|---|---|---|---|---|
| 22,007 125,654 147,661 |
||||
| 285,365 | ||||
| 245,221 245,221 1,952,820 245,221 2,198,041 |
All activities relate to continuing operations.
The comparative figures for income and expenditure were unrestricted with the exception of investment management costs and net gains on investments, which related to the endowment fund.
The notes on pages 11 to 17 form part of these financial statements.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
BALANCE SHEET
AS AT 31 DECEMBER 2020
| Note Cash at bank and in hand Current assets Debtors Fixed assets Investments 6 7 Creditors: amounts falling due within one year 8 Total assets less current liabilities Unrestricted funds Charity funds Endowment funds 9 9 Total funds Net current assets / liabilities |
72,667 2,572 75,239 (23,910) |
£ 2020 2,118,821 51,329 2,170,150 371,595 1,798,555 2,170,150 |
3,618 97,705 101,323 (2,023,945) |
£ 2019 4,120,663 (1,922,622) 2,198,041 1,800,320 397,721 2,198,041 |
|---|---|---|---|---|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Mrs Justice Tipples DBE Trustee Date:
The notes on pages 11 to 17 form part of these financial statements.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019, Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011.
The Charity constitutes a public benefit entity as defined by FRS 102.
The Inns of Court and Bar Educational 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.
1.2 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
The expendable endowment fund income (and with the approval of the Bar Council and Inn's Council, the capital) shall be applied by the Trustees in, or towards, the support of education and training for the Bar of England and Wales of pupils and the continuing education of young and recently qualified barristers.
Investment income, gains and losses are allocated to the appropriate fund.
1.3 Income
Investment income is accounted for on an accruals basis.
Gifts of services are included within the financial statements where the benefit provided is quantifiable. The services provided by the Trustees are not included within the financial statements as their value is not easily quantifiable. Similarly, the services of the Inns' staff in supporting ICBET are also not included within the financial statements as their value is not easily quantifiable.
1.4 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the Bank.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
1. Accounting policies (continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Investment management costs are costs paid to the Charity's investment managers for the management of the Charity's endowment fund.
Charitable activity costs are costs incurred on the Charity's grant making activities, including support costs and costs relating to the governance of the Charity apportioned to charitable activities.
Grants payable in the furtherance of the Charity's objects are included during the financial year that the awards are made by the Trustees.
Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
1.6 Investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.
1.7 Debtors
Debtors are recognised at their recoverable amount.
1.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.9 Creditors and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation.
Trade and other creditors are recognised at the settlement amount after any trade discount received. Accruals are valued based on the estimated amount to be paid.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2. Investment income
| Investment income and bank interest Investment income and bank interest 3. Charitable activities Grants payable The Honourable Society of Gray's Inn The Honourable Society of Lincoln's Inn The Honourable Society of Inner Temple The Honourable Society of Middle Temple South Eastern Circuit North Eastern Circuit Northern Circuit Midland Circuit Western Circuit Wales and Chester Circuit Free Representation Unit Total Grants Support costs Total |
Unrestricted funds 2020 £ 54,125 Unrestricted funds 2019 £ 107,517 2020 £ 5,000 (5,000) 5,000 5,000 - 10,000 10,000 10,000 10,000 10,000 10,000 70,000 10,251 80,250 |
Total funds 2020 £ 54,125 Total funds 2019 £ 107,517 2019 £ 5,000 5,000 5,000 5,000 10,000 10,000 10,000 10,000 10,000 10,000 30,000 |
|---|---|---|
| 110,000 15,654 |
||
| 125,654 |
The grant awarded to The Honourable Society of Lincoln's Inn in 2019 was cancelled during 2020 and no further awards were made in 2020.
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
4. Support Costs
| Audit and accountancy fees Other administration expenses Total 2020 Audit and accountancy fees Other administration expenses Legal and Professional fees (governance) Total 2019 |
Unrestricted funds 2020 £ 10,140 111 10,251 Unrestricted funds 2019 £ 13,200 54 2,400 15,654 |
Total funds 2020 £ 10,140 111 10,251 Total funds 2019 £ 13,200 54 2,400 15,654 |
|---|---|---|
Included within audit and accountancy fees are audit fees (governance cost) totalling £8,700 (2019 - £8,700) and other fees of £1,440 (2019 - £4,500).
None of the Trustees received any remuneration or reimbursement of expenses in either the current or prior year.
There were no staff employed by the Charity in either the current or prior year.
5. Net Gains/(Losses) on Investments
| Realised gains on investments Unrealised gains on investments |
2020 £ 365 14,542 14,907 |
2019 £ 71,142 214,223 285,365 |
|---|---|---|
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
6. Fixed asset investments
| Cost or valuation At 1 January 2020 Additions Disposals Revaluations Cash movements At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 7. Debtors Due within one year Prepayments and accrued income 8. Creditors: Amounts falling due within one year Grants to the Council of Inns of Court Other creditors Accruals Grants payable |
Listed investments £ 2,150,396 264,103 (330,106) 14,542 - 2,098,935 2,098,935 2,150,396 |
Cash held by broker £ 1,970,267 - - - (1,950,381) 19,886 19,886 1,970,267 2020 £ 2,572 2,572 2020 £ - 4,370 9,540 10,000 23,910 |
Total £ 4,120,663 264,103 (330,106) 14,542 (1,950,381) 2,118,821 2,118,821 4,120,663 2019 £ 3,618 3,618 2019 £ 2,000,000 4,445 19,500 - 2,023,945 |
|---|---|---|---|
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
9. Statement of funds
Statement of funds - current year
| Balance at | |||||
|---|---|---|---|---|---|
| Balance at 1 | 31 | ||||
| January | Gains/ | December | |||
| 2020 | Income | Expenditure | (Losses) | 2020 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| General Funds | 397,721 | 54,125 | (80,251) | - | 371,595 |
| Endowment funds | |||||
| Endowment Fund | 1,800,320 | - | (16,672) | 14,907 | 1,798,555 |
| Total of funds | 2,198,041 | 54,125 | (96,923) | 14,907 | 2,170,150 |
| Statement of funds - prior year | |||||
| Balance at | |||||
| Balance at | 31 | ||||
| 1 January | Gains/ | December | |||
| 2019 | Income | Expenditure | (Losses) | 2019 | |
| £ | £ | £ | £ | £ | |
| Unrestricted funds | |||||
| General Funds | 415,858 | 107,517 | (125,654) | - | 397,721 |
| Endowment funds | |||||
| Endowment Fund | 1,536,962 | - | (22,007) | 285,365 | 1,800,320 |
| Total of funds | 1,952,820 | 107,517 | (147,661) | 285,365 | 2,198,041 |
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THE INNS OF COURT AND BAR EDUCATIONAL TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
10. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Fixed asset investments Current assets Creditors due within one year Total |
Unrestricted funds 2020 £ 320,265 75,239 (23,909) 371,595 |
Endowment funds 2020 £ 1,798,555 - - 1,798,555 |
Total funds 2020 £ 2,118,820 75,239 (23,909) 2,170,150 |
|---|---|---|---|
Analysis of net assets between funds - prior period
| Fixed asset investments Current assets Creditors due within one year Total |
Unrestricted funds 2019 £ 4,120,662 101,324 (2,023,945) 2,198,041 |
Endowment funds 2019 £ - - - - |
Total funds 2019 £ 4,120,662 101,324 (2,023,945) 2,198,041 |
|---|---|---|---|
11. Related party transactions
There were no related party transactions during the current or prior year.
12. Post balance sheet events
The ongoing COVID-19 pandemic has adversely impacted global markets, and it is expected that this will also adversely affect the value of the investments held by the Charity and income generated from these investments. The extent of the impact on the value of investments held by the Charity will depend on future developments, including the duration and spread of the outbreak, related advice and restrictions and the impact of COVID-19 on the financial markets and the overall economy, all of which are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Charity�s results may be materially adversely affected and this could have an impact on the valuation of the Charity�s investments and the income generated from these investments. The Trustees are being kept up to date on the performance of the investment portfolio and will take the necessary steps to mitigate any significant adverse impact on the valuation of investments and income generated from these investments.
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