THE GRAY'S INN SCHOLARSHIPS TRUST Financial Statements for the year to 31 December 2020 Registered Charity No. 313604
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 310ECEMBER 2020 Index to the financial 5tatem•nts Page5 Trustees, Report Independent Auditor's Report Statement of Financial Activities 12 Balance Sheet 13 Cashllow 14 Notes to the Accounts 15-22
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Trv$tees' Report Reference and Administrativ• D8tai15, Tru5tee5 and Advi$ers TRUSTEES Nichola5 Blethyn Elliott QC (retired April 20201 Philip Baker QC The Hon Nathalie Lieven Timothy Corner QC l&ppointed April 20201 PRINCIPAL OFFICE 8 South Square Gray's Inn Londtsri WCIR SET CHARITY REGISTRATION NO. 313604 GOVERNING INSTRUMENT Charity Commissiori Scherne dated 2nd May 1995 AUDITORS Hay5m3cintyre LLP 10 Queen Street place London EC4R IAG SOLICITORS Hunters 9 New Square Lincoln's Inn London WC2A 3QN PRINCIPAL BANKERS C Hoare & Co 37 Fleet Street London EC4P 4DQ INVESTHENT HANAGERS Willi5 Towers Watson Midcity Place 71 High Holborn Loridon WCIV 6TP CCLA Investment Management Senator House 85 Queen Victoria Street London EC4V 4ET SENIOR MANAGEMENTTEAM Chief Executive Director of Finance Antony Harking Dermot Doughty
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Trvstees, Report (Continued) Structvre. Governance and Management The Gfay's Inn Scholar5hip5 Trust I'the Tlust'l 15 a charitable Trv5t registered with the Charity Commission. Trustees who acted throughout the year are disclosed on Page 3. The Trustees are kept conversant with the law and the requirements of the Charity Commission, as required, by professional advisers. The Trustees receive reports of the two key meetings of the Scholarships Committee. They approve the amount of rnoney to be divided between the Common Profe55ional Exatnination ICPEI, Bar Course Jnd pupillage award5 and they approve the list ol those who should receive scholarships. The selection is undertaken by other Masters ol the Bench, members of Hall and staff of The Hontsurable Society of Gray's Inn I'the Society"). Trustee5 are selected by the Iqanagement Committee of The Society 3nd their appointments are confirmed by Pension, the ultimate policy and decision making body of The Society. The day-to- day management of the Trust is delegated to the management staff of The Society and there are regular meetings of the Trustees. Fvnds plunk The Hebe Plunkett Funcl wa5 initially registered with the Charity Commission as a separate charity but, with the approval ol the Commission, it was transferred to this Trvst on 31 December 2003. The original governing document required that the income and, if considered proper by the Trustees in the light of exceptional circumstances, the capital should 311 be applied in advancing le9al education by a5515ting per50ris with defective eyesight Iri the study of law iri such manner 35 the Trustees thought fit and in particular land without prejvdice to the generality of the forgoing) by providing Èqyipment The So¢iety's library. To the extent that the income was not applied, it wa5 to be accumulated for the 21 year period from 11 February 7989. The Trustees had discretion to spend the income so accumulated. Following the expiry of the 21 year period of permitted accumulation on 11 February 2010, the Tru5tee5 have discretion to apply the income lor such purp05e5 of an educational nature connected with The Society to the extent that the specified original objective ¢annot be achieved. The Tru5tee5 resolved at their meeting on 21 September 2010 that thi5 fund Should continue as separate and discrete fund Jnd the original objective5 adhered to J5 lar as possible. Th The income arising on the enclowment is available as a scholarship open to member5 of The Society who are barristers ol riot more than one year's call, or students, and who are practising or intending to practice at the Bar of England and Wales. Preference is to be given to candidate5 practising or intending to practice on the Midland Circuit. This fund is expendable and is to be applied in funding an annual essay prize in Administrative Law for those who are applying for pupillages. eBin m Fund This 15 Shown separately in an unrestricted fund while fund raising continues. It is hoped that il the fund reaches £1,500,000. 5 scholar5hip5 of £10,000 will be awarded annually in memory of the12te Lord Bingham. A Bingham scholarship was awarded in 2020. Th h rnl This award is made, on merit, to a high potential candidate lor the Graduate Diploma in Law.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 202Q Trvst••$' Report (Continued) The Ann Godclard Fund A total beqve5t ol £1,503.833 is invested in a separate portfolio and the ir)corne 3rising therefrom is to be used to a5SlSt barristers during their pupillage with preference being given to those seeking to practice at the criminal bar. Risk Revi¢w The Trustees have asse55ed the fflajor risks faced by the charity and keep them under review. All the oper2tional activities of the Trust are undertaken by the Honovrable Society ol Gr3y'5 Inn and the Trustees rely or) their risk control processes. Specific reference is made in these processes to the risk management requirements ol the Trust, The key risks relate to the performance of the investment portfolio (see "Investment performance" in the Trvstees Report for more detail) and the coritinvation of support from the Society via the Honourable Society of Gray'5 Inn Charitable Trust fund I'the Gray's Inn Charitable Trust'l. Trustees monitor these risks regularly by re¢eiving updJtes from investment managers on the performance of the portfolio and maintaining regular dialogue with the Society. The impact of the Coronavirvs pandemic on the Trust 15 disCU55ed in the 'Investment Performance" and "Plans for the Future" sections of this report. obje¢tiv¢$ and Activities The principal charitable objective of the Trust is the advancement of education in the 13w for stvdents and members ol the Society and this 45 )¢hieved by awarding scholarships to all with ability. To that end, scholarship interviews are held separately for those taking the CPE and Bar Course exams and those Seeking pvpillage award5 following their Call to the Baf. Details of the grarit policy and the scholarships are given below. Grant Policy The grant policy 15 to ideritily able 5tuderit5 and to aS5i5t them to complete their Studies and to be called to the Bar. In order to attract the brightest students to The Society, the awbrd5 macle rllust be competitive with the other Inns of Court. The Scholarships Committee considers application5 from Students on an annval basis. These award5 are avsi13ble to cover each year of a student's study the Common Professional Examination ICPEI, the Bar Professional Training Course IBPTCI and during pupillage. In additiori, there is a special fund within the charity, The Hebe Plunkett Fund, to provide additional assistance to handi¢apped students with a prelerenee for those with a visual irnpairment. Publi¢ Benefit The Trustees confirm that they have considered the Charity Commission's guidance on public benefit. The Trust's sole activity is the awarding of scholarship5 to 5tudent5 to enable thern to pursue careers as barristers. This function is delegated to the Scholarship5 Committee which is guided by a policy document designed to èchieve and to demonstrate that all awards are m3de on non- discriminatory bases. Information about the scholarships is made publicly available through The Society's website and the Scholarships Hanclbook which 15 155ved to all new Students or those interested becoming students of The Society. Awards are monitored to ensure that the charitable objectives of the Trust are being achieved. The public benefit derived from the Trust's activities is two-fold. Firstly it offers legal edvcational opportunitie5 to all of ability irrespective of background. and Secondly it help5 to maintain the highest 5tandard5 required and expected of the legal profession by members of the public.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 51 DECEMBER 2020 TruJt•e$' Report IContinu•dl Achievement5 and Performance in the year Scholarship awards cover all or part of ttsition and living costs. During the year the Trvstee5 awHrded scholarships to member5 of The Society in their CPE year. their Bar Course year or their pupillage as follows.. 2020 2019 Scholarships and prizes awarded (see note 41 £1,271,161 £1,241,475 Number of scholarships and pri2es awarded 132 133 Average value £9,630 f9,3 The aggregate amount of Scholarships awarded has increased slightly during the year, despite the reduced funding from the Society, reflecting the determination of the Trustees to ensure that sufficient funds are available to enable well qualified 5tudent5 to qualify a5 barri5ter5. Student Accommodation During the year the Society increased the amoullt of student aC¢Otnmodation available from twelve to lovrteen rooms. Each student, who is awarded accommod3tiOn as a scholarship, sign5 an eleven month Assured Shorthold Tenar)cy agreement at a nil rent with the Society. The Scholarships Trust pays a market related rent for the a¢comodJtion to the Society and this amount is included in the total of the value of the scholarships awarded in the year. The cost of this is borne by the Trust. The total amount paid Under these arrangement5 in 2020 was £150k. Financial Review The Statement ol Financial Activitie5 on page 12 disc105e5 the following 2020 2019 Income received Gains /ILossesl on investments Expenditure incurred Surplus for the year 397,832 1,185,987 ,234,9721 £348 847 981.640 1,324,825 11,247,586) ,058,884 The donation from the Grays Inn charitable Trust was gnil 12019.. £675,000). The funds available as at 31 December amounted to,. 2020 2019 Unrestricted Fund5 Restricted Funds Endowment Funds 0,983,941 123,003 9,627,937 È16,734,881 7,279,182 150,303 8,959,549 £16,389.0 D5Pite the elimination of the annual donation from the Gray's Inn Charitable Trust the Trv5t saw a net iricrea5e in the value ol it5 fund5 largely because of a large increase in the Value of its investments. To compensate for the reduced Grant from the Charitable Trust, without liqvidating high perfomaing investments or reducing the level of Scholarships, the Trustees borrowed £600k from the Society. Thi5 loan is interest free and repayable with three months notice.
THE GRAY'5 INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Trv5tee5' Report (Continued) Investment Performance Details of irive5tments are given in Note O. The Goddard legacy (amounting to £l,7m at the end of 20201 1$ invested in a separate account within the charites Irive5tment Fund I COIF") managed by CCLA. There is a further investment in COIF amounting to É3.6m at the end of 2020. This is an investment of part the endowment reserves of the Trust. Funds with WillisTowersWatson I'WTW") arnountecl to £11.9m at the end of 2020 and are invested with the aim achieving re31 return5 of at least 5% pa averaged over five year rolling periods with hall the volatility of equity markets. The medium term intention 15 to invest all the endowment reserves of the Trust in COIF with the Unrestricted and restricted reserves being invested in WTW. Thi5 policy, which is driven by the fact that COIF gives J regular income whilst WTW generates c3PIt31 growth only, is gradually being implemented over a number ol years. The income generated by COIF assets in 2020 represented a 3.5% return on the opening balances held. The Coronavirus pandemic generated significant market volatility in the first half of 2020. However matters stabili5ed in the second half. 8y the end of the year the Trusts financial investment5 had shown a capital gain of £i.Im17.3%1. R•s•rYos Policy It is the long term aim to preserve the real value ol the awards made together with a reducing dependence on the fluctuating sums that the Society is able to provide. Thus, the reserves policy is to retain suffi¢ient Ivnding to eStablsh a strong investment portfolio to ensure continuity and certainty in providing future award5. As 8t 31 December 2020 total reserves were £16.7m, of which É9.6m was endowed for specific purposes and held in investment5 to generate an income out of which grants will be made in future periods. A further £O.Im was restricted for specific purposes and the remaining £7.0rn was unrestricted, but held in investment5. Trustees are eontent that the current level ol reserves are sufficierit to meet existing strategic plans of the Charity. Inve$tment Pow•rs and Policy The Trustees have broad powers of inve5ttnent. The policy is to preserve and grow the real value of the portfolio over the longer term. plan$ for Fvture Period5 The continuing aim remains to give schol8rships to able Students, irrespective of b8ckgFovnd, to enable them to achieve csreers as barristers The Trust has received substantial grants from the Charitable Trust over many ye3r5 and this has contributed to the creJtion ol financial reserves in addition to the payment of scholarships. As result ol the pandemic the Society has adopted a cautious policy in respeet ol its charitable funding and this has redvced the annual grarit to the Charitable Trust and, by extension, to the Trust. The Tru5tee5 have borrowed funds from the Society in order to realise its financial goals in 2020. It 15 likely that thi5 policy will be repeated in 2021 although there is the possibility that the Society may be in a position to resume higher levels of charitable donJtion5 and these will, in futvre. be paid direct to the Trust rather than via the Charitable Trust. The Trustees envisage scholarships continuirTrg at cvrrent or improved levels lor the forseeble Ivtvre. The process for awarding scholarships to stuclent5 Starting their courses in September 2021 has not been impeded by the Coronavirus pandemic and the aggregate amount ol Scholarships awarded is in line with amounts budgeted.
THE GRAY'S INN SCHOLARSHIPS TAUST YEAR TO 31 DECEMBER 2020 Trvst••$' R•port (Continued) statement of Tru5tees' Responsibiliti•$ The Trustee5 are required to prepare, for each financial year, financial statements which observe the principles and method5 of the Charities SORP and which give a trve and fair view ol the state tsl affair5 01 the Charity and of the incoming resources and application ol resources of the Charity for that period. In preparing those financi31 statements, the Trustees are required to.. Select 5Ultable accounting policies and then •pply them consistently., make judgements and estimates that are reasonable prudent,. state whether applicable accounting standards have been followed, $ubje¢t to any material departures disc105ed and explained in the financial statement5', and prepare the financial statements on the going concern basis unless it is inappropriate to presume that this ba515 applies. The Trustees are responsible for keeping proper a¢¢ovnting record5 which disclose with reasonable accuracy at any time the fillancial position ol the Charity and to enable them to ensure that the rinancial statements comply with statutory ieqvirements. They are also responsible for safeguarding the assets of the Charity and hence for taking rea50riable 5tep5 lor the prevention and detection of fraud and other irregularitie5. Approved by the Trustees on 15Lh lune 2021 and signed as Juthorised on their behalf by.. Trustee
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECE148ER 2020 Independent avditor's report to the trustee$ of The Gray's Inn S¢holarships Trust Opinion We have audited the firiancial statement5 01 The Gray's Inn Scholarships Trust for the year ended 51 December 2020 whieh ¢ompri5e Statement ol Finan¢ial Activitie5, Balan¢e sheet, cash flov4 statement and note5 to the financial statement5, including a summary of significant accounting policies. The financial reporting framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting 5t8ndard 102 The Financial Reportiri9 Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial 5tatements'. give a true and fair view of the state ol the charity's affairs as at 51 De¢ember 2020 and of the charity's net movement in funds lor the year then ended,. have been properly prepared in accordance with United Kirigdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We have been appointed as auditor under section 144 of the Charities Act 2011 and report in a¢cordanee with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Aucliting IUKI IISAS IUKII and applicable law. Qur responsibilitie5 under those 5t3ndards are further described in the Auditor'5 responsibilities for the audit of the financial statement5 section of our report. We are Independent of the charity in accordance with the ethical reqvirements that are relevant to our Audit of the financial statements in the UK, including the FRC'S Ethical standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the avdit evidence we have obtained is sufficient and appropriate to provide a ba515 for our opinior). conclusions relating to going con¢ern In auditing the financial statefflents, we have concluded that the trustees use ol the going concern basis ol accounting in the preparation of the financial statements is appropriate. 8ased on the work we have performed, we have not identified any material uncertainties relating to event5 or condititsns that. individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern lor a period of at least twelve months from when the financial statements are authorised for issue. Our respon5ibilitie5 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 re5POn5ible for the other information. The other information comprises the information in¢luded in the Trustees, Annu31 Report. Our opinitsn tsn the findnci315tatements doe5 not cover the other information and, except to the extent otherwise explicitly stated in ovr report, we do not expre55 any fortn of assur3nce conclusion thereon. In connection with our audit of the financial statements, our responsibility is to reèd the other information and, in doing 50. consider whether the other informatlon Is materially inconsistent with the linanciJl statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material mi55tatements, we are required to cletermine whether there is a material misstatement in the financial statements or a material misstatement ol the other information. Il, based on the work we have performed, we conclucle 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. Matt¢r$ on which w• ar• r•qvir•d to r•port by •xe•ption We have nothing to report in respect ol the following matters in relation to which the Charities (Accovnts 3nd Reports) Regulations 2008 require us to report to you if, in our opinion.. )deqvate )c¢ounting re¢ord5 have not been kept by the charity, or sufficient accounting records have not been kept., or the Charity financial Statements are not in agreement with the accounting records and returns., or • we have not received all the information and explanations we require for ovr audit.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Ind•p•nd•nt Èvditor'5 report to the trustees of The Gray's Inn S¢holar$hips Trust Icont'dl Re5pon5ibilitres of trv5tee5 for the financial $tatement$ As explained more Ivlly in the trv5tee5' responsibilities Statement set out on page X, the trustees are responsible for the preparation of the financial statement5 and for being s8tlsfied that they give a true and fair view, and for such illternal control as the trustee5 determine is necessary to enable the preparation ol financial statements that are free from material mi55tatement, whether dve to fraud or error. In prep8ring the finan¢iJl statement5. the trustee5 are responsible for 85sessing the charity's ability to continue a5 a going concern, diselosing, as applicable, matter5 related to going concern and using the going concern basis of accounting unle55 the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do $0. Auditor'5 responsibilrties for the audit of the financial st•tem¢nt$ Our objectives are to obtain reasonable assurance about whether the financial statement5 a5 whole are free from material misstatement, whether c5ue to fraud or error, and to issue an auditor's report that include5 our opinion. Reasonable assurance is a high level of assurance, but is not guarsntee that sn audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. M155taternent5 can arise From fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the e¢onomi¢ decision5 of useis taken on the basis of these financial statements. Irregularitie5, ineluding fraud, are instènces of non-compliance with laws and regulations. We design procedures in line with our respon5ibilitie5, Outlined above, to detect material misstatements in respect uf irregularitie5. including fraud. The extent to which our procedures Jre capable of detecting irregularities, including fraud is detailed below.. Based on our understanding ol the charity and the environment in which it operate5, we identified that the principal risks of non-compliance with law5 and regulation5 related to compliance with the Charity SORP in the preparation tsf the accounts and fund accounting. and we considered the extent to which non-compliar)ce might have a material effect on the financial statement5. We also considered those laws and regulations that have J direct impact on the preparation of the financial statement5 such as Charities Act 2011. We evaltsated management'5 illcentives and opportunitie5 lor fraudulent manipulation ol the lirTrancial statements lincluding the risk ol override ol controls), and detertnined that there were no such risks. Our procedures included the following.. Inspecting correspondence with regulators and tax authorities, and minutes of trustee meetings., Di5cussion5 Wlth management including consideration of known or suspected instarices of non-compliance with laws and regulation and fraud both at planning and at completion., Evaluating mans9ement's contro15 cle519ned to prevent and detect irregularities., Sample testing the allocation of expenditure to restricted funds., Identifying and testing journals process by management in the preparation of the financial statements., and Challenging assumptions and jvdgements made by mansgement in their critical accounting e5timate5. A fvrther description of our responsibilities for the audit of the financial statements is located on the Financial RePortng Council's website at.. www.Irc.org.uk/auditorsresponsibilities. Thi5 description form5 part of our auditor's report. io
THE GRAY'S INN SCHOLARSHIPS TRUST YUR TO 31 DECEMBER 2020 Independent •udit0$ r•port to the trustee5 of The Gr8y'5 Inn Scholarships Trust ICc*nt'dl Use of our report Thi5 report 15 made solely to the charity's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulatior15 made under section 154 of that Act. Our audit work ha5 been undertaken so that we might state to the charity's trustees those matter5 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 a¢¢ept or assume responsibility to anyone other than the charity's trustees as a body For our audit work. for this report, or for the opinion5 we have formed. Hay$ma¢intyre LLP 10 Qve•n Street Place Statutory Auditors London EC4R 1AG D•t•.' 22 July 2021
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 STATEMENT OF FINANCIAL ACTivrriES Unrestricted R•¥trrcted Ehdowrnent Fund$ Funds Fund$ 2020 2019 Total Total Not•$ INCOME AND ENDOWMENTS FROM: Donations and legacies Investments 275.747 72,089 347,836 275.747 122,085 397,832 904,700 76,946 987.646 49,990 49,996 Totsl EXPENDITURE ON: h•rit•bl¢ •¢tiviti*$ Education of law student5 Other Totsl 1,150,061 4,41T 1.154,472 80,500 1,230,561 4,411 1,2Y4,972 1,230,475 80.500 1,247,586 NET INCQMING RESOURCES 1806.6361 130.5041 1837,1401 1265,91401 Net Ilosse5l/gains on inve$tment$ NET INCOME/EXPEP4DITUAE 514,396 1292,2401 3,204 127,3001 668,388 668,388 1,185.987 348,847 1,324,825 1.058,884 RECONCILIATION OF FUNDS Total Funds brought forward 7,276,182 150,303 8,959,549 10,386,034 75.327.150 TOTAL FUNDS CARRIED FORWARD £6.985.942 £123.003 É9.627.937 É10.734,881 £16,386,034 There were no recognised gains or losses other than those shown in the above Statement of Financial Activities. The notes on poge 75- 22form purt of thefinonciol stotements. 12
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 ALANCE SHE AT 31 DECEMBER 2020 2020 2019 Notes AXED ASSETS InvÈstments 17,163,047 16,181,132 CURRENT ASSETS Cash and dep051ts in tran51t Debtors 125,770 130050 253,820 155.202 175700 330,902 CREDrroRS: Sundry ereditor$ Borrowing Irorn Gray's Inn 181,9861 1600,0001 1681,9861 1126,0001 1126,0001 NET CURRENT ILIABILITIE51 / ASSETS 1428,1601 204,902 NET ASSETS E 16.734,881 £ 16.386,034 FUNDS Unrestricted Restricted Endowrnenis 10 io io 0,983.941 123,003 9,627,937 7,276,182 150.303 8.959,549 £16 734 881 E16 386 034 Approved by the Trustees on 15th June 2021 and signed as avthorised on their behalf by= Tru5tee'. 13
THE GRAY'5 INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 202Q CASH FLOW STATEMENT 2020 2019 Net movement in funds Deduct investment gains Deduct.. investment income shown in investing activities Increase iri curient account with Gray'5 inn Ilncre35el/decrease in debtor5 Incre35e/lde¢reasel in creditor5 348,847 11,185,987) 1122,0851 1501 45.700 144,0141 1,058,884 11,324,825) 176,91461 ioo 125,2001 58,000 Net cash provided by operating activite5 1957,5891 1309,9861 Cash flows from investing activities Investment income (Additions tol/ withdrawals from investments 122,085 204,133 76,946 169,3511 326,218 7.595 Cash flow5 from financing activitie5 Short term Loan from Gray's Inn 600,000 IDecreasel/ift¢rease in cash and cash equivalents in the year 131,4311 1302,3911 Cash and cash eqvivalents at the start of the year 155,202 457,593 Total ¢a$h and cash equivalents at th• •nd of the year £123,770 £155,202 14
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Note5 to the Accounts I. ACCOUNTING POLICIES lal G•n•ral Information The Gray's Inn Scholarships Trust is a UK Based Charitable Trust registered with the Charity Commission. It's registered address i5'.Treasury Office, 8 South Square, Gray's Inn, London WCIR SET. Ibl Ba515 of preparation and 855e55ment of going eone•rn The accounts Ifinanci81 statements) have been prepared Under the historical cost convention with items recognised at cost or transaction valve unless otherwise stated in the relevant notelsl to these account5. The financial statement5 have been prepared in accordance with the StatetTTrent ol Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Finan¢iJl Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 issued on 16 July 2014 and the Financial Reportln9 Standard applicèble in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 2011. The Trust constitvtes a public benefit entity as defined by FRS 102. The Trustees consider that there are no tnaterial uncertainties about the Trust's ability to continue as a going concern. In prep3r3tion OF the accounts there are estimates relatiny to prepayments and accruals which are non-complex in Datvre. None ol the estimate5 are material to the accounts. {¢) In¢om¢ All income is recognised once the Trust has entitlement to the income, it is probable that the income will be Teceived and the amount of income receivable can be measured reliably. Id) Donation5. Lega¢i•$ ènd Covenant Donations, legacies and covenant5 are accounted for when received except if the receipt relates to scholarships specifically granted to named individuals when the receipt is re¢ogni5ed in the period in which the Scholarship is granted. (•) Scholarships S¢holarship$ are accounted For as they are awarded. (fi Investments Investments are stated at market value. Realised and unrealised gains and10$5e5 during the year are taken to the statement of Financial Activities. {y} Fund$ Unrestricted funds are donation5 and other incoming re50urce5 to be applied in meeting the broad object5 of the charity. Restricted funds repre5erit the unexpended income to be applied for specific pvrp05e5. Endowment funds (unless expendable in Specified circumstances) are not to be spent but retained to preserve the capital value ol the original bequest5. Ihl Expenditur• The expenditure ol the Trust 15 directly allocated to the charitable activity to which it relate5 or to the governance of the Trust. lil Financial Instruments The Trust only enter5 into basic financial instrument5 transaction5 that result in the recognition of financial assets and liabilities like trade and other debtors and creditor5, loan5 from banks and other third partie5, loans to related partie5 and inve5tTnents in non-puttable ordinary 5hare5. til Creditors Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction Costs, and are measured subsequently at amortised cost v$ing the effective interest method. 15
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Not•$ to the Accounts IContinv*dl Ik) D•btor5 Short term debtors are Thea5UTed at the transaction price. les5 any impairment. LoJns receivable are messured initially at fair valve, net of transaction costs, and are measured subsequently at amort15ed cost Using the effective interest method, less sny impairment. 11} Provision$ Provision5 are made where an event has taken place that gives the Trust a legal or constructive obligation that probably require5 settlement by a transfer of economic benefit, and a reliable estimate Can be made of the amount ol the obligation. Provisions are charged as an expense to the Statement ol Financial Activities in the year that the Society becomes aware ol the obligation. and are measured at the best estim3te at the 8alance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet. 2. DONATIONS AND LEGACIES Unrestricted Fund5 R•stricted Endowment Funds Fvnds 2020 Total General Donations and legacies Bingham Appeal Hon Soc of Gray's Trust Fund 237,615 38.132 237,615 38,132 £275 747 £275,747 Unrestri¢ted Funds R•striet•d Endowment Fvnd5 Fund$ 2019 Total General Donations and legacies Bingham Appeal Hon Soc of Gray's Inn Trust Fund 183,253 36,447 675,000 £894,700 io,000 193,253 36,447 675,000 £904,700 3. INCOME FROM INVESTMENTS Unr•strict8d Funds Restricted Fund5 Endowment Funds 2020 Total E72,089 £49,996 £122.085 Investment portfolio Unrestricted Funds Restricted Endowrnent Fvnd5 Fund$ 2019 Total Investment portfolio £7,000 £69,946 £76,946 l6
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Notes to the Aeeounts {Continvedl CHARITABLE EXPENDITURE 2020 2019 S¢holarship5 awarded for th¢ educatlon of law 5tudent$ General Fund Unrestricted Fund Awards not taken and written baek 1.180,661 140 6001 1,140,061 io,000 io,000 1,145.851 iii,0001 1,134,851 13.000 8ingham Fund charnley Fund Smedley Fund Hebe plvnkett Fund Ann Goddard Fvnd The Troy Trust IBelolf Ess>y Prize) 3,000 7,000 71,624 1,000 ,230,475 1,500 69,000 £1,230,561 Total Scholarships awarded in year Awards not taken and written back Net cost of scholarships awarded in year 1,2n,161 140,6001 ,230,561 1,241.475 111,0001 £1,230,475 The Tiust employs no merNber5 of staff and hence there are no staff costs or key management personnel costs to disclose. Included in the abDve is the sum of £150,461 12019 £145,291) representing the rental paid by the Trust to the Society lor rental of accommodation offered to students who were awarded residential 5cholar5hip5. 5. OTHER COSTS Unr•stri¢ted Fund$ Restricted Endowment Funds Funds 2020 Total Investment ffl8nagement lees Other costs 4,411 £4.411 £4,411 Unr*stri¢t•d Funds Restricted Funds Endowmtnt Fund5 2019 Total Investment management fee5 Other costs 527 1,433 ,960 15,962 1,301 E17,263 16,493 2,745 £19,238 £15 The Trust receives support Services donated by The Society. These relate entirely to it'5 sole charitable activity., the education of law students. It is not practicable to quantify the valve of donated services with any clegree of precision. On the basis that the valve is likely to be material, value of nil ha5 been ascribed to the donated service5 in these accounts 17
THE GRAY'S INN SCHOLARSHIPSTRUST YEAR TO 31 DECEMBER 2020 Not•$ to the Accovnts (Continued) O. INVESTHENrs 2020 2019 Market valve at l January Cash Introdu¢ed/ Iwithdrawr)) Investment gains/ Ilossesl Market value at 31 December C05t at 31 December 1,500.655 11,583,222) 82,567 F4arket value at l January Capital introdv¢ed/lwithdrawnl Investment gains/ Ilossesl Market value Jt 31 Oecember 12,689,569 11,704,133) 903 008 £11,888,504 13,286.301 11,718,000) 1,121,267 £12,689,569 Cost at 31 December E5,253,065 £6,074,183 Narket value at l Janvary Capital introduced/lwithdr8wnl Investment gains/ Ilossesl Market value at 31 December 1,873,888 1,500,000 179459 £3,553,347 1,800,000 73,888 ,873,888 C05t at 31 December ,300,000 ,800,000 Market value at l Janvary Capital introdueed/lwithdrawnl Investment gains/ Ilossesl Market V31ue at 31 December 1,617,676 1,570,573 103 460.85 £1,721 137 £1,617,676 Cost at 31 December £1.570,573 ,570,573 Market value at l January C2Pltal introduced/lwithdrawnl Investment gains/ 110sse51 Harket value at 31 December 16,181,132 1204.1331 1,185,987 7,162,987 14,786,957 09,351 1,324,825 E16 T81,132 Cost at 31 December 0,123,639 £9,444.757 18
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Not85 to the A¢count$ (Continued) 6. INVESTMENTS- eontinved 2020 2020 2019 2019 Over5e25 Equitie5 UK Equities Infrastructure and Operating Assets Cash and near cash Property Contractual & other Income Private Equity Fixed Interest Total rtTrafket value of investments 3,622,515 475.758 476,813 213,617 206,232 154,542 104,962 20,043 £5.274 483 69% 9% 2.037.677 436,445 387,564 220,667 176.673 141,757 77,164 73.617 3.491.564 58% 13% 4% 2% 0% loo% 700% Equities Credit Private Market5 Diversifying Cash Total market value of investments 4,969,420 1,521,736 2.758,147 2,317.081 320,991 £11.888 564 42% 13% 23% 19% 4.530,176 2,347,570 2.575,982 2.969,359 266.481 £12 689 569 36% 19% 20% 23% 2% 100% 00% Cotnbined market value ol investments E17 163 047 E16.181.132 7. DEBTORS 2020 2019 Current account with Gray5 Inr) Accrued income 50 130 000 175.700 75,700 £130,050 8. CREDITORS 2020 2019 Scholarships awarded but not yet paid Residential Scholarship retentlOn5 Audit lee 62,486 16,000 3,500 £81,986 56,000 12,000 £68,000 9. SHORT TERM LOAN The Trust has borrowed £600,000 from the Society. The loan is unsecured, interest free and is re- payable on three months notice. 19
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Note5 to the A¢¢ounts (Continued) 10. ANALYSIS OF UNRESTRICTED. RESTRICTED AND ENDOWMENT FUND5 The movement of funds during the year 15 as detailed below.. ljonuory 2020 Incomlng Resources Resourcos Inv•slmenl Expended Golns 1 ILos$es} 31 De¢embei 2020 Unrethlcted Fund Generol The Binghom Fund Total Unie5tricted 6.298,637 977.545 7.276.182 292.604 55.232 347.836 44S.287 69,108 514.396 5.896.467 1.091.886 6.988,352 110.0001 Reshlcted 5tephell Silbef Fund The Charnely Fund Hebe Plunkell Fund Sil Brian Smedley Fund Troy FundlBeloff Prize Ann Goddord Fund Tolal Restricted 727 10,(N)O 9.151 282 5.164 104,979 150.303 51 707 2,061 20 786 806 30.000 305 5.580 85,526 123.003 99 289 11 0.0001 11.5001 365 49.547 49.996 169.(KK)I I80.5) 3.204 Endowmenf Generol Hebe Plvnkett Funol Sir Brian Smedley Fund Ann Goddard Fund Tolol Enclowment 6,928,950 386.789 23.103 1,620.707 8.959.549 533.374 29.774 1.778 103.461 668.388 7.462.324 416.563 24,882 1.724.168 9.627.937 Totol Funds 16.386.034 397,832 11230,5611 1,185.?87 16.739.292 Anolysls ol Net Assets belween Fund5 05 0131 December 2020 UnTestrlcled Fund 7.500.664 1516.7231 £6.983.941 Reslrlcled Endowmenl Fvnds Total Assets 17.163.047 1428,1661 £16.734.881 Investments Nel Current Assets 37,477 85.526 £123,003 9,624.906 3.031 £9,627.937 The Endowment Fund ol the General Fund arose from various legseie5 and donations and represents permanent endowment. The Unrestricted Fund is to be applied to meet the charitable objectives of the Trust. The purpose5 of the various funds are outlined in more detail in the Trustee'5 Report. 20
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2020 Notes to the Accovnts (Continued} 10. ANALYSIS OF UNRESTRICTED. RESTRICTED AND ENDOWMENT FUNDS {Continvedl The movement of funds during the prior year 15 a5 detailed below.. lJonvory 2019 Inconvng Rxwces Resouc•$ Invethenl Expended Gains/ ILo3sesl 31 De¢mbvr 2011 Urre¥kncled Fd Generd The BinghLTn FLrd Totd Unrestricted 6,013,585 864,558 6.878.143 857.070 44.630 901.700 565.894 81,357 647.251 0.298,637 977.545 7.276.182 Reskicled steFen Sil¢ Fwd Chunley Hebg Plvnkglt Fund Sir Bri Sm8dl&y Fund Troy Fvndlsdoll Prize Ann GodcJd Fund Totd Rèstricted 664 62 727 10,ODD i 0.000 34 33.011 2.997 5.629 106.7 14?.001 17.0001 13,0001 IIDooI 3.106 282 530 282 5.164 104.979 150.303 69,903 79.946 182.6241 3.981 E#d¢wment Generd Hebe Plun1 Fund 6,415,406 358.122 513.543 28.607 6.928.950 386,7B9 23.103 1.620.707 8.959.549 Sir Brion 5medley Fund Ann God(k¥d Fur)d lotd thd(>wmenl 1.505.087 8.3DO.007 114.0501 129.670 673.593 Tphl Fd¥ 15227.150 981.646 11247.5871 1.324A25 16M86,034 Anoly%sof N•1 Ass•tsb•lw••n Funds os •131 D¢nw 2019 Investments Net Ojrrent Ass¢ts UnTeslrichd Fund 7.179.290 96.891 £7.276.182 It•thicl•d Funds 45,324 104.979 £1 $0.303 Endowment Futsgs 8,956.518 3.031 £8.959,549 Tolal Asts 4,901 £16.386.034 11. FINANCIAL INSTRUMENTS 2020 2019 rinancial Assets ¥inancial Assets measured at amortised Cost £130 050 E175,700 ¥inan¢ial Liabiliti*$ ¥inan¢ial Liabilities measvred at amortised cost £81,986 £68,000 Finsncial asset5 comprise accrued income and sundry debtors. Financial liabilitie5 comprise accrvals and sundry creditors. 21
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 51 DECEMBER 2020 Notes to the Account$ (Continued) 12. TRUSTEES, REMUNERATION AND RELATED PARTY TRANSACTIONS During the year no trvstee received any remuneration or expenses 12019.. nill. There were Fio rebated party tr3nsactions in the year 12019.. nil) 13. TAXATION The Trust 15 a registered charity and it5 income and gains are exempt from taxation. 22