THE GRAY'S INN SCHOLARSHIPS TRUST Financial Statements for the year to 31 December 2021 Registered Charity No. 313604
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEM&ER 2021 Index to the Financial statem•nts P•9e$ Trustees, Report Independent Auditor's Report Statement ol Financial Activities 12 Balance Sheet 13 Cashllow 14 Notes to the Accounts 15- 21
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DÉCEHBER 2021 Tru$tee$' Report R•feron¢è and Administrative Detai15, Trustees and Advisers TRUSTEES Philip Baker QC The Hon Nathalie Lieven Timothy Corner QC PRINCIPAL OFFICE 8 South Square Gray's Inn London WCIR SET CHARITY REGISTRATION NO. 313604 GOVERNING INSTRUF4ENT Charity cornmi55ion Scheme dated 2rd May 1995 AUDITORS H3ysmacintyrÈ LLP 10 Queen Stieet Place London EC4R IAG SOLICITORS Huriters 9 New Square Lincoln's Inri London WC2A 3QN PRINCIPAL BANKERS C Hoare & Co 37 Fleet Street London EC4P 4DQ INVESTMENT MANAGERS Willis Towers Watson Midcity place 71 High Holborn London WCIV 6TP CCLA Irivestment Hanagement Senator Htsuse 85 (Lueen Victoria Street Loridon EC4V 4ET SENIOR MANAGEMENT TEAM Chief Executive Director of Finance Antony Harking DerFnot Doughty
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 51 DECEMBER 2021 Trvstees, Report Icontinvedl Strvcture. Governance and Management The Gray's lrnn Scholarships Trvst I the Trust'l is a Charitable Trust registered with the Charity Commission. Trustees who acted throughout the year are di5c105ed on Psge 3. The Trustees are kept conversant with the law and the requirements of the Charity Commi55ion. a5 required, by professional advisers. The Trustees receive reports of the two key meetings of the Scholarships Committee. They approve the amount of money to be divided between the Common Profession31 Examination ICPEI, Bar Covrse and pupillage awards and they approve the list ol those who should receive scholarship5. The selection is undertaken by other Masters ol the Bench. members c>1 Hall and staff of The Honourable Society ol Gray's Inn I'the Society"). Trustee5 are selected by the management Committee ol The Society and 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 ol The So¢iety and there are regu13r meetings of the Trustees. Funds plunkett Fund The Hebe Plunkett Fund was initially iegistered with the charity Commission as a separate charity but, with the appioval ol the Commission, it was translerred to this Trust on 31 December 2003. The origin31 governirig document required that the income and, if considered proper by the Trustees in the li9ht of exceptional circumstances, the capital should all be applied in advancing legal education by asslsting persons with defective eyesight ID the study ol law in such manner as the Trustee5 thought fit and in particular land without prejvdice to the generality ol the forgoing) by providing equipment in The Society's library. To the extent that the income was not applied, it was to be accumulated for the 21 year period from 17 February 1989. The Trvstees had discretion to spend the ir)come so accumulated. Following the expiry ol the 21 yesr period of permitted accumulation on 11 February 2010, the Trustees have discretion to apply the in¢ome lor such purposes ol an educational nature connected with The Society to the extent that the specified original objective cannot be achieved. The TrusteÈs resolved at their meeting on 21 September 2QIO that this fund should continue as a separate and discrete fund and the original objectives adhered to as far a5 possible. The income arising on the endowment is available as a scholarship open to meTnber5 of The Society who are barristers of not more than one year's call, or students, and who are prèctising or intending to practice at the Bar ol England and Wales. Preference is to be given to candidates practising or intending to practice on the Midland Circuit. This fund is expendable and is to be applied in Funding an annua5 essay prize in Administrative Law lor those who are applying lor pupillages. This is shown separately in an unrestricted fund while fulld raisirig continues. It is hoped that if the fund re3ches £1,500,000, 5 scholarships of £10,000 will be awaided annually in memory tsl the late Lord Bingham. A Bingham Scholarship was awarded in 2021. rnle war This award is made, on merit, to s hi9h potential candidate for the Graduate Diploma in Law.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Trustees. Report IContinu•dl A total bequest ol £1,503,833 is invested in a separate portfolio and the incc>me arising therefrom is to be Used to assist barristers during their pupillage with preference being given to those seeking to practice at the ¢riminal bar. Risk R•viw The Trustees have assessed the major risks laced by the charity and keep them ur)der review. All the operation31 activities of the Trust are undertaken by the Honour3ble Society of Gray's Inn and the Trustees rely on their risk control processes. Specific reference is made in these processe5 to the risk management requirements ol the Trust. The key risk5 relate to the performance ol the investment portfolio (see 'lnvestment performance" in the Trustees Report lor more detail) and the continuation of support from the Society. Trustees monitof these risks regularly by receiving updates from investment tnanagers on the performance of the pc>rtfolio and maintaining regular dialogue with the Society. The impact ol the Coronavirus pandemic on the Trust Is discussed in the 'Inve5tmer)t Performance and 'plans lor the Future 5ection5 of this report. Objective5 and Activities The principal charitable objective ol the Trust is the advancement of education in the law for students and members of the Society and this 15 achieved by awarding scholarships to all with ability. To th3t end, scholarship interviews are held separately lor those taking the CPE and Bar Course exams and those seeking pupillage awards following their Call to the Bar. Detai15 01 the grant policy and the scholarships are given below. Grant Poli¢y The grant policy is to identify able students and to assist them to Complete their Studies and to be called to the Bar. In order to 3ttract the bri9htest Students to The Society, the awards made Tnv5t be competitive with the other Inns of Court. The S¢holarships Committee considers applications from students on an annual basis. These awards are available to cover each year ol 3 Student's study the Common Professional Examination ICPEI. the Bar Professional Training Course IBPTCI and during pupillage. In addition, there is a special Ivnd within the charity. The Hebe Plunkett Fund, to provide additional assist£nce to handicapped students with ) preference for those with a visual impairment. Public Benfit The Trustees confirm that they have Considered the Chaiity Commission's guidance on public benefit. The Trust'5 sole activity is the awarding ol scholarships to students to enable them to pursue careers as bsrrister5. Thi5 function is delegated to the Scholarships Committee which is guided by 3 policy clocument designed to achieve aTrd to demonstrate that all awards are made ori non- discriminatory bases. Information about the scholsrships is made publicly available through The Society's website and the Scholarships Handbook which Is issued to all new 5tudent5 or th05e interested in becoming students of The Society. Awards are monitored to ensure that the charitable objectives of the Trust are being èchieved. The public benelit derived from the Trust's activities is two-fold. Firstly it offers legal educational opportunities to all of ability irrespective ol background, and secondly it helps to mèintsin the highest standards required and expected of the legal profession by members of the public.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Trustee$, Report {Continuedl A¢hievement5 and Performance in the year Scholarship awards cover all or part of tuititsn Jnd living costs. During the year the Trustees awarded scholarships to student tnembers of The Society as follows= 2021 2020 Scholarships and prize5 awarded (see note 41 El.287,625 £1271161 Number of scholarships and prizes awarded 132 Average valve £9,609 Eg,630 The 3ggreg3te amount ol Scholarships awarded has increased slightly during the year reflecting the determination ol the Trustees to ensure that sufficient funds are available to enable well qualified student5 to qualify as barristers. Student Accommodation Sixteen students are offered accommodation as 8 scholarship within the Inn for the duration of their course. Each student signs an eleven month Assured Shorthold Tenancy agreement at a nil rent with the Society. The Scholarships Trust pays a market related rent for the accomodation to the Society and this amovnt is ith¢luded in the total of the value of the scholarships awarded in the year. The cost of this is borr)e by the Trust. The total amount paid Under these arrangements in 2021 was £172k. Financial Review The Staternent ol Financial Activities on page l2 discloses the following- 2021 2020 Income received 497,736 11,252,069) 1754.3331 2 177 562 397,832 11234,9721 1837,1401 1,185,987 £348,847 Expenditure incurred Net ¢ash generatedllspentl Gains /ILossesl on investments Surplus lor the year £),417,229 Income feceived is significantly below the long term trend a5 the the Gray's Inn Charitable Trust has ceèsed its annual grant for both 2020 and 2021. The funds available as at 31 December amounted to.. 2021 2020 Unrestricted Funds Restricted Funds Endowment Funds 7,098,341 121,075 10,932,694 £18,152,110 6,983,941 123,003 9,627.937 £16,734,881 Despite the elimination of the annual grant from the Gray's Inn Charitable Trust the Trust Saw a net increase in the value of its funds largely because of a large increase in the valve of its investments. To compensate for the reduced Grant from the Charitable Trust the Trustees borrowed £600k from the Society. This loan is interest free and iepayable with three months notice. This policy enabled the Trust to maintain level ol Scholarship5 whilst rninimi5ing the need to liquidate high performing investments.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECÉMBER 2021 Ttustee$' Report IContinv•d) Inyestmènt Performance Details of iT)vestments are given in Note 8. The Goddard legacy (amounting to £2.Om at the end of 20211 is invested in a separate account within the Charite5 Investtnent Fund I'COIF'I managed by CCLA. There is a further investment in COIF amounting to £4.9m at the end of 2021. This 15 an investment of part of the Trust's er)dowment. Funds with WillisTowersWatson I'WTW") amounted to £12.2m at the end 012021 and are invested with the aim achieving real returns ol at least 5% pa averaged over five year rolling periods with hall the volatility ol equity market5. 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. This policy. which is driven by the fact that COIF gives 3 regular income whilst WTW generates Capital growth only, is grèdu311y being implemented over a number of year5. The income generated by COIF asset5 in 2021 represented 3.0% return on the opening balances held. Financial markets had s strong year and the Trv5t'5 investments performed very well with a capital gain of £2.2m 112.7% 01 the opening balance). Reserves 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 reserve5 policy is to retain sullicient Funding to establish a strong investment portfolio to ensvre continuity and certainty in providing lutuie awards. As at 31 December 2021 total reserves were E18.Om, ol which EIO.9m was endowed lor specific purposes and held in investments to 9ener3te an income out of which grants will be made in future periods. A further ÈO.Im w35 restricted lor specific purposes and the remaining £6.9m was uniestricted, but held in investments. Trustees are content that the current level of reserves are svflicient to meet existing Str3tegic plan5 of the Charity. InY•rtm•nt Powtrs and Policy The Trustees have broad powers of investment. The policy is to preserve and grow the real value of the portfolio over the longer term. Plans for Futvre Periods The continuing aim remains to give scholarships to able 5tudent5. irrespective of background, to enable them to achieve careers as barristers The Trust has received substantial grant5 from the Charitable Trust over many years ar)d this has contributed tc> the Creation Ol financial reserves in addition tts the payment of scholarship5. A5 8 result of the pandemic the Society has adopted a cautious policy in respect ol its charitable funding and ha5 reduced the annual grant to the Charitable Trust and, by extension, to the Trust. The Trustees have borrowed funds from the Society in order to realise its financial gtsa15 in ?021. The Society has agreed, in principle, to resume significant donations to the Trust in 2022 and beyond. Future donation5 to the Trust will be paid directly by the Society rather than via the Charitable Trust. The Trustees envisage scholarships continuing at current or improved levels lor the forseeble future. The process for awarding scholarships to students starting their courses in September 2021 has not beeft impeded by the Coronaviru5 paridemic and the aggregate arnount ol Scholarships awarded is in line with amounts budgeted.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Tru5tees' Report Icontinvedl statement of Trvstees, Responsibilitie$ The Trustees are requirecl to prepare, fc>r each financial year, financial 5t8tements which observe the principles and rnethods of the Charities SORP ancl which give a true arid fair view of the state of affairs ol the Charity and ol the incoming resources and 3pplication of re50urce5 of the Charity for that period. In preparing those financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consistently., 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 financi31 statement5'. and prepare the financial statements on the going ¢on¢ern basis unle55 It 15 inappropriate to presvme that thi5 ba515 applies. The Trustees are re5porisible lor keeping proper accounting records which disclose with reasonable accuracy 2t any time the financial ptssitiori ol the Ch3rity and to enable them to ensure that the financial statements comply with statutory requirements, They are also responsible for Safeguarding the a55ets of the Charity and hence for taking reasonable steps lor the prevention and detection of fraud and other irregularities. Approved by the Trustee5 on I. July 2022 and signed as authorised on their behalf by.. Trustee
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Indep•nd•nt auditor's réport to th• trvstèès of Th• Gray'$ Inn Scholar$hip$ Tru$t Opinion We have audited the financi31 statement5 Of The Gray's Inn Scholarships Trust lor the year encled 31 December 2021 which comprise Statement of Financial Activities, 8alance Sheet, Cash flow statement and Dotes to the lin3nci31 statement5, including a svmmary of significant a¢counting policies. The financial reportirng 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 applicJble in the UK and Republic ol Ireland (United Kingdom Generally Acceptecl Accounting Practice). In our opinion, the financial statements.. give a true and lair view ol the state of the charity's afl3irs as at 31 December 2021 snd of the charity's net movement in funds for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements ol the Charitie5 Act 2011. Basi5 for opinion We have beeft appointed as auditor under section 144 01 the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are Ivrther described in the Auditor's responsibiliteS lor the audit of the financial statements section ol our report. We are independent of the charity in 3ccordance with the ethical requirement5 that are r@lev2nt to our audit ol the linanci315tatements in the UK, including the FRC'S Ethical Standard, and we have fullilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined 15 sufficient and appropriate to provide a basis lor our opinion. Conclusions relating to going concern In auditirig the financial statement5. we have concluded that the trustees use of the going concern basis of accounting in the preparation ol the financial statements is appropriate. Based on the work we have perfortned, we have not identified any material vncertainties relating to event5 or conditions that, inclividually or collectively, may Cast significant doubt on the charity's ability to continue as a going concern for a period o12t least twelve months from when the financial statements are authorised for issue. Our responsibilities and the resPOn5ibilities of the trustee5 Wlth respect to going concern ale described In the relevant sections ol this report. Other information The tru5tee5 ère responsible for the other information. The other Information comprises the information included in the Trustees, Annual Report. Our opir)ion on the financial statements does not cover the other information ar)d, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial stateTnents. 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. Il we identify such material inconsistencie5 or apparent material mi55tatements. 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 concltsde that there is a material misstatement of thi5 Other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to Port by exception We have nothir)g to report in respect of the following matter5 in relation to which the Charitie5 (Account5 3nd Reports) Regulations 2008 require us to report to you If, in our opinion.. adequate accounting records 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 ac¢ovnting records and returns., or we have not received all the information and explanations we require for our auc4it.
THE GRAY'S INN SCHOLARSMIPS TRUST YEAR TO 31 DECEMBER 2021 Independent avditgr's report to the trustees of The Gray's Inn Scholarship5 Trust Icont'dl Re$pon$ibilitie$ of trustee$ for the financial $tatements As explained more lully in the trustees, responsibilities statewnent set out on page 8, the trustees are responsible lor the preparation of the financial statements and for being satisfied that they give a trje and lair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are ffee from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for asse55ing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going ¢c>ncern basis ol accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do $0. Auditor's responsibilitbes for the audit of the financial statements Our objectives are to obtain rea50riable assurance 3bout whether the finan¢i41 statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opir)ion. Reasonable a55urance is a high level ol assurance, but is not s guarantee that an audit conducted in accoidance with ISAS IUKI 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 ag9regate, they could iea50n3bly be expe¢ted to inllvence the economic decisions ol users taken on the basis ol these financial statements. Irregularities, including fraud, are instance5 of nori-compli3nce with laws and regulations. We design procedures in lirne with our responsibilities. outlined above, to detect material misstatements in respect ol irregularities, including fraud. The extent to which our procedures are capable ol detecting irregulaiities, including fraud is detailed below-. Based ort our understanding ol the Charity and the environment in which it operates, we identified that the principal risks ol non-compliance with laws and regulations related to compliance with the Charity SORP in the preparation of the accounts and fund accounting, and we Considered the extent to which non-compliance might have a material ellect on the financial statements. We also considered those laws ar)d regulations that have a direct impact on the preparation ol the financial statements such as Charities Act 2011. We evaluated management's incentives and opportunities for fraudulent manipulation ol the financial statements (including the risk of override ol contro151, 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., Discussions with management including consideration ol known or suspected instances of non-compliance with laws and regulation and Iravd both at planning ènd at completion", Evaluating management's contro15 designed to prevent and detect irregularities.. Sample testing the allocation ol expenditure to restricted luF)ds', Identifying and testing journals process by mar)agerNent in the preparation of the financial 5t3tements', and Challenging J55UmPtions 3nd judgements made by management in their critical accounting estimates. A further description ol our responsibilittes for the audit ol the financial statement5 15 located on the Financial Reporting Council's website at.. www.Irc.org.uk/auditorsresponsibilities. This description form5 part of our auditor's report. io
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Independent auditor's report to the trustees of The Gray's Inn Seholarships Trust (Cont'dl U$e C*f ovr report This report 15 made solely to the charity's trustees. a5 a body. in accordance with Section 144 01 the Charities Act 2011 and regulations made Under section 154 of that Act. Our audit work has been undertaken so that we might State to the charity's trustees those matters we are required to state to them in an Auclitor'5 report and for no other purpose. Tts the fullest extent permitted by18w. we do not accept or assume responsibility to anyone other than the charity's trustees as a body lor our audit work, for thi5 report, or for the opinions we have formed. Haysmacintyre LLP 10 tlveen Street place Statutory Auditor5 London EC4R 1AG Dote: 04 July 2022
THE GRAY'S INN SCHQLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 STATEMENT OFFINANCIALACTivmES UnrtStri¢ted Restri¢t*d Endowm•nt Funds 2021 2020 Funds Fvnds Totsl Total Notes INCOME AND ENDOWMENTS FROM: Donations aDd legacies Investryents 273,455 135,951 409,400 24,150 64,180 88,330 297,605 200.131 497,736 275,747 122,085 397,832 T¢ral ExpENDvRE ON: Charitable activities EdutatioD ol law students oihor Total 1,152,390 4.794 1,157,784 94,885 1,247,275 4,794 1,252,069 1,230.501 ,411 1,234,972 94,885 NET INCOMING RESOURCES 1747,7781 16.5551 1754,3331 1837,1401 Net Ilossesl/g3ins on investmÈntS NET IMC¢)ME/EXPENDThURE 802,178 114,J99 4,627 11.9281 1,304,757 1,304,757 2,171,502 1,417,229 1,185,987 8,847 RECONCILIATION OFFUNDS Total Funds brought forward 6,983,942 123,003 9,627,937 16,734,881 16,386,034 TOTAL FUNDS CARRIED FORWARD £7,098A41 E121,075 EI0,932,694 EIB.752.110 É16.734.881 There were no recognised gains or losses other than those shown in the abtsve Statement ol Financial Activities. The note5 on poge 73- 27Aorm p(3rt of the linLTncial statements. 12
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 BALANCE SHEEf AT 31 DECEMBER 2021 2021 2020 Note5 XED ASSETS Investments 19.054.671 17,163,1)47 CURRENT Assrrs Cash and dep051t5 in tr3n5lt Debtors 183.362 175 277 358.639 123.770 130050 253,820 CREDITOAS.. Svndry creditors Borrowing from Gray'5 1nn 10 161.2001 11.200,0001 11,?61,2001 181,9861 1600 0001 1681,9861 NET CURRENT (LIABILlES) / ASSETS 1902,5611 1428,1661 NET ASSETS £16734881 FUNDS Unrestricted Restricted Endowrnents 12 12 12 7,098,341 1?7,075 10.932.694 6,983,941 123.003 9,027.937 £18.152.110 £16,734,881 Approved by the Trustees on I. July 2022 and Signed 85 authorised on their beh811 by.. Trustee.. 13
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 CASH FLOW STATEMENT 2021 2020 Net movement in funds Doduct investment gains Deduct.. investrnent income shown in investing activities Increase in current account with Gray's inn Ilncreasel/decrease in debtors Decrease in creditors 1,417,229 12,171,562) 1200.1311 348,847 11,185,987) 1122,0851 Iso) 45,700 144,0141 145.2771 120,7861 Net cash provided by operating activites 11,020,527) 1957,5891 Cash flow5 from investing sctivities Invesrment income 200,151 279,938 122,085 204,073 Withdrawals from investments 480.069 326.158 Cash flows from financing activities Short term Loan from Gray's Inn 600,000 600,000 IDecreasel/increase in cash and cash eovivalent5 in the year 59,592 131,4311 Cash and cash equivalents at the start of the ye>r 123,771 155,202 Total cash and cash eqvivalents at the end of the y¢•r £183 362 £123.rn 14
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Notes to the A¢¢ount$ I. ACCOUNTING POLICIES lal General Information The Gray's Inn Scholarships Trust is a UK Based Charitable Trust registered with the charity Commission. Its registered address isTreasury Ollice, 8 South Square, Gray's Inn, London WCIR SET. Ibl Basis of pr•paration and a$s•ssm•nt of 90in9 concern The accounts (financial statements) have been prepared under the historical c05t convention with items recogni5ed at C05t or transaction v8lue unless otherwise 5t3ted in the relevant notelsl to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice.. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reportlng Standard applicable in the UK and Republic of Ireland IFRS 10?} issued on 76 July 2014 1Se¢c>nd edition October 20191 and the Financial Reportir)g Standard applicable in the United Kingdom and Republic ol Ireland IFRS 1021 and the Charitie5 Act 2011. The Trust constitutes a public benefit entity as defined by FRS 102. The Trvstees consider that there are no material Uncertainties about the Trust's ability to continue as a going concern. In preparation ol the accounts there are estimates relating to prepayments and accrua15 which are non-complex in nature. None of the estirnates are material to the accourlts. (¢1 Income All Income is recognised once the Trust ha5 entitlement to the income, it 15 probable that the incotvie will be received and the amount of income re¢eiv3ble can be measured reliably. Idl Donations and Legacies Donation5 and le9acies are recognised when there is entitlement to the income, receipt is probable and the amount Can be measvred reliably. {el Scholarships Scho13rships are accounted for as they are awarded. (fi InYèstm•nts Investments are stated èt market value. Realised and unrealised gains and losses during the year are taken to the Statement ol Financial Activities. 191 Fund$ Unrestricted Funds are donations and other incoming resources to be applied in meeting the broad objects of the charity. Restricted funds represent the unexpended income to be applied lor specific purposes. Endowment funds Ivnless expendable in specified circumstances) are not to be spent but retained to preserve the Capital value of the original becjuests. Ihl Expènditure The expenditure ol the Trust is directly allocated to the charitable activity to which it relate5 OF to the governance of the Trust. (jl Financial Instruments The Trust only enters into basic financial instruments tr3n53Ctions that result in the recognition of financial assets and liabilitie5 like trade and other debtor5 and Creditors, loans from banks and other third parties,108ns to relsted parties and investments in non-putt2ble ordinary shares. (il 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 c05t using the effective interest method.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO J1 DECEMBER 2021 Note$ to the A¢covnts {Continuedl (k) Debtors Shoit tèrm debtors are measured at the transaction prCe, less 3ny impairment. Loans receivable are measured initially at 13ir vslve, net of transaction costs. Jnd are measured subsequently 3t amortised C05t using the effective interest method. less any Impairment. (11 Provi5ion5 Provisions are made where an event has taken place that gives the Trust a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisior)s are charged as expense to the St¥tement of Finar)cial Activitie5 in the year that the Society becomes aware ol the obligation, and are measured at the best estimate at the Balance Sheet date ol the expenditure required to settle the obli9ation, taking into account relevant risks and uncertaintie5. When payments are eventually made, they are charged to the provision carried in the 8al3nce Sheet. 2. DONATIONS AND LEfjA¢IES Unrestricted Fund$ Restricted Endowment Fvnd5 Fvnds 2021 Total General DonatlOT15 and legacies Bingham Appeal Hon Stsc ol Gray's Inn Trust Fund 186,802 38,153 24,150 210,95 38,153 48,500 £297,605 £273,455 24,150 Unrestricted Fund$ Rèstricted Fvnd5 Endowment Fvnds 2020 Total General Donations and le98cies Bingham Appeal Hon Soc ol Gray's Inn Trust Fund 237.615 38,132 237,615 38,132 £275,747 £275,747 3. INCOME FROM INVESTHENTS Unrèstricted Funds Restricted Endowment Fvnd$ Furjds 2021 Totsl Investment portfolio 35 951 £64,180 £200,131 Unrestricted Fund$ Restricted Fvnds Endowment Funds 2020 Totsl Investment portfolio £72,089 49 996 22,085 16
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Notes to the Aceounts (Continued) 4. CHARITABLE EXPENDITURE 2021 2020 Scholarship$ awarded for th• •ducation of law sivd•nts G@neral Fund Unrestricted Fund Awards not taken and written back 1,179,14LO 140,3501 1,139,090 13.300 15,000 4,150 4,735 70,000 1,000 Sl,247,275 1,180.661 140,6001 1,140,061 io,000 10,000 Bingham Fund Chamley Fund Mustill Fund Hebe Plunkett Fund Ann Goddard Fund The Troy Trust (Belofl Essay Prize) 1,500 69,000 £1230,561 Total scholarships awarded in year Awards not taken ancl written back Net cost of 5cholar5hips awarded in year 1,287,625 140,3501 £1,247,275 1,271,161 140 6001 ,230,561 The Trust employs no members ol staff and hence there are no staff costs or key management personnel costs to disclose. Included in the above is the sum of £172,740 12020 £150,1sOII representing the rental paid by the Trust to the Society for rental of accommodation offered to studerits who were awarded residential scholarship5. 5. OTHER COSTS Unrestricted Funds Restricted Endowment Fvnd$ Funds 2021 Totsl Audit Fees and Bank Charges 4,794 4,794 £4,794 unrestricted Funds Restricted Endowffl•nt Funds Fund$ 2020 Total Audit Fees and Bank Charges 4,411 The Trust receives support services dor)ated by The Society. These relate entirely to its sole charitable activity., the education ol law students. It 15 not practicable to quantify the value ol doriated services with any degree tsl precision. On the basis that the value is likely to be material, value of nil has been ascribed to the donated services in these accounts 17
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEM&ER 2021 Notes to the Accovnts (Continued) 6. TRVSTEES, REMUNERATION AND RELATED PARTY TRANSACTIONS During the year no trustee received any remuneration or expenses12020.' nill. There were no related party transactions in the yesr12020'. nil) 7. TAXATION The Trust is a registered charity and its income and gains are exernpt From taxation. 8. INVESTMENTS 2021 2020 Market value at l January Capital introduced/lwithdrawnl Investment gains/ IIOs5esl Market value at 31 December 11,888,564 11,129,938) 1,418,549 £12,177 175 12,689,569 11,704.0731 903,068 11,888,564 Cost at 31 December £4,793,239 £5,253,065 Market value at l January Capital introduced/lwithdrawnl Investment gains/ Ilossesl Narket valve ot 31 December 3,553.347 850,000 511,690 E4 915037 1,873,888 1.500,000 179,459 È3,553,N47 £3,300,000 C05t at 31 December £4,150,000 Market value at l January Capital introduced/lwithdrawnl Investment gains/ Ilossesj Market value at 31 December 1,721,137 1,617,676 241,323 ,962,459 103,461 £1,721,137 Cost at 31 December £1,570.573 £1,570,573 Narket value at l January Capital introdv¢ed/lwithdrawnl Investment gains/ Ilc>ssesl Market value at 31 December 17,163.047 1279,9381 2 171,562 £19,054,671 16,181,132 1204,0731 1 185 987 £17 163,047 Cost at 310ecember £10513813 £10,123,639 18
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Notes to the A¢¢ounts Icontinvedl 8. INVESTMENTS- Continued 2021 2021 2020 2020 Overseas Equities UK Equities Infrastructure and Operating Assets Cash and nearcash Property Contractual & other Income Private Equity Fixed Interest Total market value of InveStffntS 4,552,903 632,730 522,690 577,710 261,345 165,060 165,060 66% 3,622,516 475,758 476,813 213,617 206.232 154,542 104,962 69% 9% 9% 6,877,496 io0% 5,274 483 loo% Equities Credit Priv2tÈ Markets DivÈrsilying Cash Total market value ol inveStntS 4.578,618 1,144,654 3,348,723 2,532,852 572.327 £12 177175 4,969,420 1,521,736 2,758,147 2,318,270 320 991 £71888 564 42% 13% 23% 20% 3% 100% 28% 21% loo% Combined market value of investment5 £19,054,671 £17,163,047 9. DEBTORS 2021 2020 Current account with Gray5 Inn A¢¢rued income 50 130,000 É130,050 175277 E175 277 10. CREDITORS 2021 2020 Scholarships awarded but nc>t yet paid Residential Scholarship retentions Audit fee 57,600 62,1486 16,000 3,600 £61,200 £81,986 11. SHORTTERM LOAN The Trust has borrowed £1,200,000 from the Society. The loan is unsecured. interest free and is re- ayable on three months notice. 19
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Notes to the A¢¢ounts (Continued) 12. FINANCIAL INSTRUMENTS Financial sssets comprise accrued incotne and sundry debtors. Financial liabilities comprise accruals and sundry creditors. 2021 2020 Financial Assets Financial Assets messured at amortised cost 75,277 £130,050 Financial Liabilitiès Financisl Liabilities measured at amortised Cost £61,200 £81,986 13. ANALYSIS OF UNRESTRICTED, RESTRICTED AND ENDOWMENT FUNDS The movement ol funds during the year is as detailed below.. lJonv¢ry 2021 InctymSng Resources Resources Inveslment Exp&nded Golns I II0$5esl 31 December 2021 UNe5tr1cled Fund General The Binghom Fund Tolol Unre5tricled 5B?2.056 1.091.886 6.983.941 343.396 66.010 409.406 727.383 134.795 862.178 5.818.951 1.279.390 7.098.341 113.3001 Restil¢ted Stephen Silber Fund The Choinley Fund Hebè Plunkell Fund The Muslill Fund Sir Brion Smedley FurKJ Troy FundlBelofl Prize Ann Goddord Fund 786 806 30.000 97 898 5.921 29.553 20.016 584 4.150 115.0001 14.7351 100 3.704 305 5.580 85.526 123.003 348 5.378 78.977 121.075 109 63.451 I 1.0001 170.0001 1?4.8851 689 Total Reslricte 88.330 4.627 Endowment General 7.462.324 416.563 24.882 1.724.168 9.627.937 1.004.039 56.048 8.466.363 Hebe Plunketl Fund Sir Brion S medley Fund Ann Goddord Fund Totol Endowment 3.348 241.323 1,304.757 28.230 1.965.490 10.932.694 Tolal Funds 16.734.881 497.736 11,252,069} 2,171,562 18,152.110 Anolys15 tsf N•1 Assets belween Fvnds US ut31 December 2021 Investment5 Net Cwrent A55ets UDreslrlct*d Fund 8.082.910 1984.5691 £7.098.341 Reslrieted Funds 42.098 78,977 £121,075 Endowmenl Totol Assets 19.054.671 190?.5611 £18.152.110 Funds 10.929.663 3.031 £10.932,694 The Endowment Fund ol the Geneièl Fund arose from various legacies and donations and represents a permanent endowment. The Unresrricted Fund is to be applied to meet the char1table objectives of the Trust. The purposes of the various funds are outlined in more detail in the Trustee's Repc>rt. 20
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2021 Notes to the A¢¢ounts (Continued) 15. ANALYS15 OF UNRESTRICTED, RESTRICTED AND ENDOWMENT FUNDS Icontinvedl The movement of funds during the prior year 15 a5 detailed below.. ljonuory 2020 Incomlng Resources R*8our¢e$ Inveslment Expended Galns I IIosse51 31 December 2020 Uniestrl¢tsd Fun General Thtr 8inghom Fund Total Unre5tricled 6.298.637 977.545 7.276.182 292.604 55.232 347.836 445.287 69.108 514.396 5,896,467 1.091.686 6.988.352 110.0001 Restrlcled Slephen Silber Funcl The Charnely Fund Hebe Plvnkell Fund 727 10,(K)O 51 786 99 I l 0.0001 11.5(K)I 707 2.061 20 806 30.000 305 5.580 85.526 123.(K)3 289 Sir B Tion Smedley Fund Troy FundlBeloll Prlze Ann Goddord Funol Total Re51ricled 282 5.164 104.979 150.303 51 49.547 365 169.OCOI 180.5001 49.996 3.204 Endowment General Hebe Plunkell Fund 6.928.950 386.789 3.103 1.620.707 8.959,549 533.374 29.774 1.778 103.461 668.388 7.462.324 416.563 Sir Brion Smedley Fund Ann Goddord Fund ?4,882 1.724.168 9.621,937 Tolol Endowment Totol Funds 16.384.034 397.832 11,230.5611 1,185.987 16.739.292 ol NÈtA55ets b?een Fund5 as at31 December 2020 Unre51wScle Fund Restricled Funds Endowment Funds Tolol Assets Inveslmen15 7.500.664 1516.7231 £6.983.941 37.477 85,526 £123.003 9.624,906 3.031 £9.627.937 17.163.047 Net Cwrenl Assels £16.734.881 21