THE GRAY'S INN SCHOLARSHIPS TRUST Financial Statements for the year to 31 December 2022 Registered charity No. 313604
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Index to the Financial Statements Page$ Trustees, Report Iridependent Auditor's Report 9- 11 Statement ol Financial Activities 12 Balance Sheet 13 Cashflow 14 Note5 to the Accounts
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 TrvsteÈs' Report Rof•Ten¢e and Administrativo Dotai15. Tru5t•e$ and Advis•rs TRUSTEES philip Baker KC (resigned 31 December 20221 The Honourable Mrs Justice Nèthalie Lieven Tirnothy Corner KC David Forsdick KC (appointed i, January 20231 PRINCIPAL OFFICE 8 South Square Gray's Inn London WCIR SET CHARITY REGISTRATION NO. 313604 GOVERNING INSTRUMENT Charity Commission Scheme dated 2nd May 1995 AUDITORS Hay5m3tintyre LLP 10 Queen Street Place London EC&R 1AG SOLICITORS Hunters 9 New Square Lincoln's Inn London WC2A 3QN PRINCIPAL BANKERS C Hoare & Co 37 Fleet Street London EC4P 40Q INVESTMENT MANAGERS Willis Towers Watson Nidcity P13ce 71 High Holborn London WCIV 6TP CCLA Investment Management Senator House 85 (Lueen Victoria Street London EC4V 4ET SENIOR MANAGEMENT TEAM Chief Executive Oirector ol Finance Stephen Cartwright Dermot Doughty
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Trustee5' Report IContir*uedl Structure, Governance and Hanagement The Gray's Inn Scholarships Trust I thè Trust") is 3 charitable Trust regisiered with the Charity Commi55itsn. Trustees who acted throu9hout the year are disclosed on Page 3. The Trustee5 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 ol the Scholarships Committee. They approve the amount of money ro be divided between the Common Professional Ex8mination ICPEI, Bar Course and pupillage awards and they approve the list ol those who should receive scholarships. The selection is undertaken by other Nasters of the Bench, members ol Hall and staff ol The onourable Society of Gray's Inn I'the Society"). Trustees are selected by the Management Committee of The Society and their appointments are confirmed by Pension, the vltimate policy and decision tnaking body of The Society. The day-to- day management ol the Trust 15 deleg3ted to the manaoement staff ol The Society and there are regular meetings of the Trustees. Funds Th The Hèbe plunkett Fund was initially registered with the charity Commission Ès a separJte charity but, with the approval ol the Commission, it was transferred to this Trust on 31 December 2003. The original governing document required that the Income and, il considered proper by the Trustees in the light of exception31 circumstance5, the capital Should all be applied in advancir)g legal edv¢atiC)n by a5515ting person5 Wlth dele¢tive eyesight in the study of law in Such manner as the Trustees thought lit and in particular laT)d without prejudice to the generality ol the lorgoingl by providing equipment in The Society'5 library. To the extent that the income was not applied, it was to be accumulated for the 21 year period from 11 February 1989. The Trustees had discretion to Spend the income so accvrnulated. Following the expiry ol the 21 year period of permitted accumulation on 11 February 2010, the Trustees have discretion to apply the income for such purposes of an educatitsnal nature connected with The Society to the extent th2t the specified original objective cannot be achieved. The Trvstees re501ved at their meeting on 21 September ?010 that this fund should continue as a separate and discrete fund and the original objectives adhered to as lar as possible. The Income arising on the endowment is available as a scholarship open to members ol The Society who are barristers ol not more than one year's call, or students, and who are practising or intending to piactice at the Bar of En9land and Wales. Preference 15 to be given to candidate5 practising or intending to pr3Ctice on the Nidland Circuit. The Tro Fund Beloll Essa Prize This fund 15 expendable and 15 to be applied in funding 3n annual e5$3y prize in Administrative Law for those who are applying lor pupillages. The Bin m Fund Thi5 is shown separately in an unrestricted fund while fund raising continues. It is hoped that if the fund reaches £1,500,000, 5 scholarships of EIo,000 will be awarded annually in memory of the late Lord Bingham. A Bingham scholarship was awarded in ?022. he Charnle award This award Is made, on merit, to a high poteT)tial candidate lor the Graduate Diploma in Law.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Tru5tees' Report {Continuedl The Ann Goddard Fund A tot31 bequest ol £1,503,833 is invested in a separate portfolio and the income arising therefrom is to be used to assist barristers during their pupillage with preference being given to those seeking to practice at the critninal bar. Risk Review The Trvstees have assessed the major risks faced by the charity and keep them under reviÈw. All the operational activities ol the Trust are undertaken by the Honourable Society ol Gray's Inn and the Trustees rely on their risk Control processes. Specific reference is made in these processes to the risk management requirements of the frust. The key risks relate to the performance ol the investment portfolio (see "Investment performance" in the Trustees Report lor more detail) and the continuation ol support from the Society. Trustees monitor these risks regul3rly by receiving vpdate5 Irorn investment manager5 on the perlorrn3n¢e ol the portFc>lio and maintaining regular dialogue with Ihe Society. objective5 and Activitie$ The prin¢ipal charitable objective of the Trust is the advancement ol edu¢3tion in the law for students and members ol the Society and this is achieved by awarding scho13rship5 to all with ability. To that end, scholarship interviews are held separately for those taking the CPE and Bar Course exam5 and those Seeking pupillage award5 following their Call to the Bar. Details of the grant policy and the 5cho13rship5 are given below. Grant Policy 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 attract the brightest student5 to The Society, the awards made must be competitive with the oth&r Inns of Court The Scholarships Committee considers application5 from students on an annual basis. These awards are available to cover each year ol a student's study the Common Professional Examination ICPEI, the Bar Prole5sioDal Tr3ining Course IBPTCI and during pupi113ge. In addition, there is a special fund within the charity, The Hebe p1unkett Fvnd, to provide additional assistance to handicapped students with a preference lor those with a visual impairment. Publi¢ Benefit The Trustee5 confirm that they have considered the Charity ComTnission's guidance on public benefit. The Trust'5 sole activity 15 the awarding ol scholar5hip5 to students to enable them to pursue careers as barristers. This function is delegated to the Scholarships Committee which is yuided by a policy document de51gr)ed to achieve ènd to demonstrate that all awards are made on non- di5crimin3tory bases. Information about the 5cholar5hips 15 made publicly avail8ble through The Society'5 website and the Scho13r5hip5 Handbook which is issued to all new Students or those intÈre5ted in becoming student5 ol The Society. Awards are monitored to ensure that the charitable object1ves of the Trust are being achieved. The public benefit derived from the Trust's activities is two-fold. Firstly it offers legal educational opportunities to 311 ol ability irrespective ol background, and secondly it help5 to maintain the highest standards required and expected ol the legal profession by members ol the public.
THE GRAY'5 INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMe4ER 2022 Trustees. Report Icontinvedl Achievement5 and Performance in the year Scholarship award5 cover 311 or part of tuition and living cost5. During the year the Tru5tee5 awarded scholarships to student members of The Society as follow5.. 2022 2021 Scholarships and prize5 awarded15ee note 41 £1,305,575 £1,287,625 Number of scholarships and prizes awarded 134 134 Average value £9,743 £9,609 The aggregate amount of scholarships awarded has increased slightly during the year reflecting the determination of the Trustees to ensure that sufficient lund$ are available to en361e well qualilieol students to qualify as barristers. stvdent Accommodation Sixteen students Jre offered accommodation as a scholarship within the Inn for the duration ol their covr5e. Each student signs 3 tenancy agreement at a nil rent with the Society. The Trust pays a market related rent for the accommodation to the Society and this amount 15 included in the total ol the value of the scholarships awarded in the year. The cost ol this is borne by the Trust. The total amount paid unclèr these arrangements in 2022 was É173k12021.. £172kl. Financial Review The Statement of Financial Activitie5 on page 12 discloses the following 2022 2021 Income received Expenditure incurred 2,213,093 11,271,081) 397,832 11,234,972) 1837,1401 1 185,987 £348,847 Gains /ILossesl on investments Svrplu5/ (Deficit) for the year 11,240,6001 £1298,5941 Income received 15 significantly in excess 012021 largely because the annual grant from the Society was resumed In 2022 after two years where it had been di5COTltinued in favour 013 loan. The grant amounted to £600k. In addition the Society agreed to tre8t the loans advanced to the Trust in 2020 and 2021 1£1.2m in totall as a donation. Expenditure incurred, which 5htsws a small increase, is mainly the net amount ol scholarships paid alter allowing lor scholarships not taken up. There were 51grtilicant losse5 on investment5 reflecting the very dillicult market Conditions tovrfard5 the end of the year. The funds available a5 at 31 December amounted to.. 2022 2021 Unrestricted Funds Restricted Funds 7,794,352 9?,636 9,960,528 £17,853,516 6.983.941 123,003 9,627,937 £16,734,881 Endowfflent Fvnds
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Truste•s' Report {Continvedl Investment Performance Details of investments are given in Note 8. The Goddard legacy lamountlDg to £1.7m at the end of 20221 is invested in 2 separate account within the Charites Investment Fund I'COIF'I managed by CCLA. There is a further investment in COIF amounting to £4.3rn at the end of 2022. This is an investment of part of the Trvst'5 endowrTrent. Funds with WillisTowersWatson I'WTW") amourited to £10.6m at the end 012022 and are invested with the aim achieving real returns ol at le3St 5% pa averaged over five year rolling periods with hall the volatility of equity markets. 2022 saw a reduction In fund value, compared to the opening balance. 013.6%. The medium term intention is to invest all the endowment reserve5 of the Trust in COIF with the vTrrestricted and restricted reserves being invested in WTW. This policy, whieh is driven by the 12¢t that C01F gives a regular income whilst WTW generates capital growth only, is gradually being implemented over a number ol year5. The income generated by COIF assets in 2022 represented 3% return on the opening balances held. There was a l2% Ioss in the year end valuation. The Trust liquidated £l.Im of asset5 from the WTW fund in June. This was part of the policy of transferring endowment funds to COIF. Given the fragility ol investment markers the funds were retained on fixed term bank dÈposit rÈther than being invested in COIF. Re$erv¢$ Policy The reserves policy is to retain sufficient funding to e5tabli5h a strong investment portfolio to ensure ontinuity Ènd ceriainty in providing future awards. As at 31 December 2022 tot31 ieserves were £17.8m, ol which £IO.Om was endowed lor 5pecili¢ purposes and held In investments to generate an incorlle Out ol which grJnts will be made In future periods. A further £O.Irn was restricted lor specific purposes and the remaining £7.7m was unrestricted, but held in inve5tmeDt5. Tru5tee5 are content that the curient level ol reserves ale svfficient to meet existing strategic plans of the charity. The unrestricted reserves are sullicient to cover over live years ol expenditvre on scholarships at existing levels. Investment Power5 and Policy The Tru5tee5 h3ve broad powers ol investment. The policy is to preserve and grow the real value of the portlolio over the longer term. Plan5 for Fvture Period$ The continuing aim remain5 to give scholarship5 to able stvdents. irrespective ol background, to enable them to achieve careers as barristers. To ellect this the Trust works closely with the Society and the Honourable Society ol Gray's Inn charitable Trust to ensure that proce55e5 lor the award ol Scholarships are fair and in accordarice with the chJritable objÈetives of the Trust In 2024 it is intended that the Trustees make an 3nnual grant to the Society to enable the p2yment ol scholarships r3ther than paying 5tvdents dirÈctly.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Trurtees. Report Icontinvedl statement of Tru5tee5' Re5ponsibilitie5 The TrusteÈs are required to prepare, lor ea¢h financial ye3r. finan¢ial st3tewent5 which Dbserve the priTiciple5 and methods of the Charities SORP and which give a true and fair view of the state of affairs ol the Charity and ol the incoming resource5 and application ol resovrce5 of the Charity lor that period. In preparing those financial statements, the Trustees are required to.. select suitable accounting policies then apply them consistently., make judgements ancl estimate5 that are reasonable and prudent,. state whether applicable accounting standsrd5 have been followed, subject to any material departures disclosed and explained in the financial statements., anc4 prepare the financial statements on the going coTrcerri basis unless It is inappropriate to presume that this basis applies. The Trv5tee5 are responsible for keeping proper accounting record5 which disclose with reasonable accuracy at any time the financial positi¢Jn ol the Charity and to enable them to ensure that the financial 5tateTnerit5 cofTiply with statutory reqvirements. They 3re a150 responsible for safeguarding the a55Èt5 01 the Charity 2nd hence lor taking reasonable steps for the prevention and detection ol other rregUlarities. Approved b he Trustees on 12, June 2023 and signed as authorised on their behHII by.. Trustee
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Independent auditor's report to th¢ tiv$te¢$ of The Gray'$ Inn Scholarships Trust Opinion We have audited the financial statements of The Gray's Inn Scholarships Trust for the year ended 31 December 2022 which comprise Statement ol Financial Activities, B8lan¢e sheet, Cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that h35 been applied in their preparation Is applicable law and United Kingdotn Acctsunting Standards, inclvding Financial Reporting Stand3rd 102 The Financial Reporting Standard applicable in the UK and Republic ol Ireland (united Kingdom Generally Accepted Accounting Practice). In our opinion, the linan¢ial statéments, give a true and fair view of the state ol the charity's affairs as at 31 December 2022 and of the charity's rlet movement ill fund5 lor the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared In 2ccordance with the requirements of the Charities Act 2011. Ba$1$ for opinion We have been appointed as auditor under section 144 of the Charitie5 Act 2011 and report in accordance with the Act and relevafjt regu13tions made or having effect thereunder. We conducted our audit in accordance with International Standard5 on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those 5tandard5 are further described in the Auditor's re5POn5ibilitie5 for the audit of the linan¢ial statement5 SÈ¢tion ol our report. We are independent of the charity In accordance Wth the ethical requirements 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 ethic31 ie5ponsibilitie5 in a¢cord8n¢e with these requirements. We believe that the audit evidence we have obtained is sufficier)t ar)d appropriate to provide è basi5 lor our opiniori. Conclvsions rÈlating to going concern In auditing the financial statements, we have concluded that the trustees vse OF the going concern basis ol accovnting in the preparation (>1 the financial statements is appropriate. Based on the work we have performed, we have not identified ariy material uncertainties relating to events or conditions that, individually or coSlectively, may cast 5ignili¢ant doubt on the charity's bility to continue 8$ J going ¢on¢ern for a period ol at least twelve month5 from when the financial statements are authorised for issue. Our responsibilities and the responsibilitie5 of the trv5tees with respect to going concern are described in the relevant sections of this report. other information The trustee$ are responsible lor the other information. The other information comprises the information included in the Trustees, Annual Report. Our opinion on the financial statements does not cover the other information 3nd, except to the extent otherwise explicitly stated In our report, we do not express any form of assurance conclusion thereon. In ctsnnection with our Judit ol the linan¢ia5 statements, our responsibility is to read the other information and, in doing so, consider whether the other inforfflatlOTr 15 tn3terially inconsistent with the liDaDcial 5tatemeDt5 or our knowledge obtained in thÈ audit or otherwise appears to be materially misstated. Il we identify such material inconsistencie5 or apparent material mi55tatefflents, we 3re required to determine whether there is 2 material misstatement in the financial statements or a material misstatement ol 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 th15 regard. Matters on which we are required to report by exception We have nothing to report in ie5pect of the following matters in relation to which the Charities (Account5 and Report51 RegvlHtion5 2008 require us to report to you if, in our opinion.. 2d&qu2te accounting records have not been kept by the charity, or sullicient accounting records have not been kept., or the charity financial statement5 are not in agreement with the accounting records and returns,. or we have not receivecl all the information and explanations we require lor our audit.
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Independent auditor's report to the trvstees of The Gray'$ Inn S¢holar$hip$ Trv5t ICont'd} Responsibilities of trustees for the financial statements A5 expl3ined more fully in the tru5tees' re5POn5ibilitie5 statement Set ovt on page 8, the tru5tee5 are responsible for the preparation ol the financial statements and For being satisfied that they give a true and fair view, and for 5vch intern81 control 35 the trustees determine is nece5S3ry to enable the prep2ration ol financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trust&es are responsible for assessing the charity's sbility to continue as a going concern, disclosing. as applicable. matters related to going concern and using the going concern basis of accounting unless the tru5tee5 either intend to liquidate the charity or to eeÈse operations, or have no realistic alrernative but to do so. Auditor'$ responsibilitie$ for the audit of the financial $tatements Our objectives are to obtain reasonable assurance about whether the financial statemer)ts as a whole are free from m3teri31 misstatement. whether due to fraud or error, and tts 155ue an auditor's report that includes our opinion. Reasonable assurance is a high level ol assurance, but is not a guarantee that an audit conducted in accorclance with ISAS IUKI will alw3y5 detect a material mi55tatement when it exists. Mi55t3tements Can arise from fraud or error and are considered material Il, indivic4ually or in the a99regate, they could reasonably be e¥pected to influence the economic decisions of u5er5 taken on the basi5 of these financial statements. Irregularities, including fraud, are instances of non-compliance with law5 and regulation5. We design procedure5 in line with ovr responsibilities, ovtlined above, to detect material misstatements in respect ol irregularities, Including fraud. The extent to which our procedures are capable of detectin9 irregularities, including fraud is det3iled below. 8a5ed on our understanding of the charity and the environrnent 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 noD-compliaDce might have a Tnaterièl effect on the linanciÈl 5tatement5. We also considered those13w5 and regulation5 that have a direct impact on the preparation of the financial statements such as Charitie5 Act 2011. We evaluated mènagement's incentives 3nd opptsrtvnities lor fraudulent manipulation ol the financial statements (including the risk of override of controls), and determined that there were no such risks. Our procedures included the following.. Inspecting coriespondence with regvlators and tax authorities, and minutes of trustee meetings., Discvssions with management including coD5ider3tion ol known or suspected instances of non-eompliance with laws 2nd regulation and fraud both at planning and at completion- Evaluating management's controls designed to prevent and detect irregularities., Sample testing the allocation ol expenditvre to restricted funds, Identifying and testing journa15 proce55 by management in the preparation of the financial statements., and Challenging assumptions and judgements made by managernent in their critical accounting estimate5. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregvlaiitie5, including those leading to a material Misstateernt in the financial statements or non- ¢omplian¢É with regu13tion. This f15k inere35es the more that compliance with a law or regu14tion is removed from the events an¢J transactions reflected In the lir)ancial Statements, as we will be less likely to become aware of iD5tances ol non-compli3n¢e. The risk is also greater regarding rregularities occurring due to fraud rather than error, as fraud involves intentional conce8lment, forgery, collusion, omission or misrepresentation. A further description ol our responsibilities lor the audit ol the financial statement5 is located on the Financial Reporting Council's website at.. www.Irc.cirg.uk/auditorsresponsibilities. This description Forms part of our auditor's report. io
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 51 DECEMBER 2022 Independent auditor's report to the trustee5 of The Gray'5 Inn Scholarship5 Trust Icont'dl Use of our report This report is macle solely to the charity's trustees, 35 a body, in a¢¢c>rd3nce with section 144 of the Charities Act 2011 and regulations made under section 154 01 that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for rio other purpose. To the lulle5t extent permitted by law, we do not 8¢¢ept or assume responsibility to anyone other than the chèrity's trustees as a body for our audit work, for this report, or for the opinions we have formed. Hay5macintyre LLP 10 Ilueen street place Statvtory Auditor5 London EC4R 1AG Date: l August 2023
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 STATEMENT OF FINANCIAL ACTIVITIES Unrortrict•d f¢e5tr*cted eDdowrnent 2022 2021 Funds Fvnds Fund$ Total Total Notes INCOME AND £NDOWP4ENTS FROM.. DonatlQD5 and legacies Investmenis 2,017.751 129,617 2.895 10,000 52,829 2,027,751 297.605 200,131 83nk Interest Total 2,895 2.213,093 2.150,264 6?,829 497,730 EXPENDuRE ON.. Ch?rrt3ble ?¢tivities Edu¢aiion of13W Slvdents other 1.176.125 5.306 89,650 1,265,775 5,306 1.2147,275 4,794 1,25?,069 Total 89.650 NET INCOMING RESOURCES 968,833 942,012 1754.3331 Net Ilossesl/gains OTr iftvestment$ NET INCOME/EXPENDITURE 1272,8221 696.011 1900,1661 1966,1661 (1.240.606) 1298,5941 2.171,562 1,417,229 128.4391 RECONCILIATION OF FUND5 Total Funds brought FoTwJrd 7,098,341 121,075 10.932,094 18,152.110 16,734.881 TOTAL FUNDS Cl4RRIED FORWARD £7.794.352 £92,636 E9.966,528 E17.853516 £18.152.110 There were no recognised gains or losse5 Othei than those shown in the above Statement ol Financi81 Activities. The notes on page 15- 21form p(Jrt of the [inonci¢Jl statements. 12
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 THE GRAY'S INN SCHOLARSHIPS TRUST BALANCE SHEET AT 51 DECE14BER 2022 2022 2021 Notes FIXED ASSETS Investment5 16,690,331 19,054.671 CURRENT ASSETS Cash and deposits Debtors 7.073,432 183,353 1.256,785 183,362 175,277 358,639 REDITORS: Sundry rreditoTs BoTrowing from Gray's Inn io 193,6001 141,2001 11 200,0001 11,261,20DI 193,6001 NET CURRENT ILIABILITIESI / ASSETS 1,103,185 1902,5611 NET ASSETS 17853516 FUNDS Unrestricted Re5tri¢ted Endowments 13 13 15 7,794,352 92,636 9,966,528 7,098,341 121,075 10,932.694 £17,853,516 £18,152,110 roved by th ru5tees on 21h June 2023 2nd signed as orjsecl on their behalf by.. Trustee.. 13
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 THE GRAY'S INN SCHOLARSHIPS TRUST CASH FLOW STATEMENT 2022 2021 Net movement in funds Deduct ." Investment gains Doduct.. investment income shown in investing activitie5 Ilncreasel/decrease in debtors Increase/ldecreasel in creditor5 1298,5941 1,240,606 1182,4461 18.0761 32,1400 1,417.229 12,171,562) 1200,1311 145,2771 120,7861 Net Cash provided by operating activite5 783,890 11.020,5271 Cash flows from investing activitie5 Investment Income 182,&46 7,123,734 200,131 279.938 Withdrawals from Investments 1,306,180 480,069 C8sh flows from financing activities short term Loan from Gray's Inn 11 200,0001 600,000 Increase in cash and cash equivalent5 in the year 890,070 59,592 Cash and cash equivalents at the start ol the year 183,362 123,771 Total c85h and cash •quivalent$ at the end of the y¢ar £1 073 432 £183,362 14
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Ngte5 to the Accovnt5 I. ACCOUNTING POLICIES la) General Information The Gray'5 Inn Scholar5hip5 Trust is a UK Based Charitable Trust registered with the Charity Commission. Its registered address Is Treasury Office, 8 South Square, Gray's Inn, London WCIR SET. Ibl Basis of preparation and a$$e$$m¢nt of going ¢on¢ern The accounts Ilinancial 5tatementsl have been prepared under the historical cost convention with item5 recognised 3t cost or transaction v3lue unless otherwise stated in the ielevant notelsl to these accounts. rhe 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 Repoiting Standard applicable in the UK and Republic ol Ireland IFRS 1021 Issued on 16 July 2014 (Second edition October ?0191 and the Financial Reporting Stand2rd applicable in the United Kingdom and Republic of Ireland IFRS 10213nd the Charities Act 2011. The Trv5t constitute5 a public benefit entity as defined by FRS 102. The Trustees consider that there are no material uneertainties about the Trust's ability to continue as a goirTrg concern. In preparation ol the account5 there are estimates relating to prepayments and accruals which are non-complex in nature. None ol the estimates are material to the accounts. Icl Income All incoffle 15 recogni5ed once the Trust ha5 entitlement to the income, it is probable that the iDcome will be received and the amount ol income receivable can be measured reliably. Idl Donations and Legacie$ Donations and legacies are recognised when there is entitlement to the income, receipt is probable and the afnount can be measured reliably. lel Scholarships Scholarship5 are accounted for as they ale 3wardecl. (fl Investments Investments are stated at market value. Reali5ed and unreali5ed gains and losses during the year are taken to the Statement of Financial Activities. Igl Fvnds Unrestiicted funds are donations and other incoming resource5 to be 3pplied in meeting the broad obje¢t5 of the ¢hJrity. Restricted fund5 represent the unexpended income to be applied foi specific purposes. Endowment lur)ds (unless expendable in specified circumstances) are not to be spent but retained to preserve the capital value of the original beqve5ts. {hl Expendtture The expeTrditure of the Trust 15 directly allocated to the charitable activity to which it relate5 or to the governance of the Trust. lil Financial In5trument5 ThE Trust only Énters intts basic finÈnci21 instrumÈnts transactions thÈt result in the recognition of financial assets and liabilities like trade and other debtors ènd creditors, loans from banks and other third parties, loans to related parties and investments in non-putt?ble ordinary shares. lil Credttor5 Short term creditors are measured at the transaction price. Other financial liabilities are measured initi311y at lair value, net of transaction ¢ost5, and are measured subseovently at amort15ed cost USiT)g the ellective interest method. 15
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Notes to the Accovnts {Continuedl Ikl D¢btOT$ Short term debtor5 are measured at the transaction price, less any impairment. Loans receivable are measured initially at fair v2luÈ, net of tr8n5a¢tion Costs, ènd 2rÈ measured subsequently at amortised cost using the effective interest method, le55 any impairment. 111 Piovisions Provisions are made where an event ha5 taken place that gives the Trust a legal or constructive obligation that probably require5 settlement by è transfer of economic benefit, and J reli8ble Èstimate 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 aw3re of the obligation, and are me35ured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation. taking into accourit relevant risks and uncertaintie5. When payments are eventually m3de, they are charged to the prgvi5ion carried in the Bèlance Sheet. 2. DONATIONS AND LEGACIES Unrestricted Fund5 Restricted Fund5 Endowment Fvnd5 2022 Tota General Donations and legacies Bingham Appeal Hon Soc ol Gray's Inn 191,728 26,023 1,800,000 £2,017,751 io,000 201,728 26,023 1,800,000 £2,027,751 10,000 ijnrestrieted Fund5 Restricted Fund5 Endowment Fund5 2021 Total General Donations 8nd legacies Bingham Appeal Hon Soc ol Gray's Inn 186,802 38,132 186,802 38,132 E224,934 £224,934 3. INCOME FROM INVESTMENTS Unrestricted Fvnds Restricted Endowment Fund5 Fvnd5 2022 Total Investment portfolio £129.617 £52,829 £182,446 Unr¢stfltt¢d Fund5 Restricted Fund5 Endowment Fvnd5 2021 Tot81 Investment portfolio £135,951 £64,180 00.131 16
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Notes to the Account5 (Continued) 4. CHARITABLE EXPENDITVRE The Trust employs no member5 OF staff and hence there are no staff costs or key management personnel cost5 to di5c105e. 2022 2021 Scholarships awarded for the edvcativn of law students General Fund Unrestricted Fund Award5 not taken and written back 1,205,925 139 8001 1,166,125 10,000 13,000 1,179,1440 140,3501 1,139,090 13,300 15,000 4.150 4,735 70,000 1,000 È1,247,275 Bingham Fund Charnley Fund Mustill Fund Hebe Plunkett Fund Ann Goddard Fund The Troy Twst (Belolf Essay Pritel 4,650 71.000 1,000 £1,265,775 Total scholarships awarded in year Awards not taken and written back Net Cost of scholarships awardèd In year 1,305,575 139,8001 £1,265,775 1,287,625 140.3501 El.247,275 Included in the above is the Sum of £175,431 12021 £172,740) representing the rent31 paid by the Trust to the Society for rental ol accommodation offered to stvdents who were awarded residential Scholarships. Other th2n RÈsidential award5 all scholarships are made directly to inclividuals. Nc> grants are made to Ir)stitutions. 5. OTHER COSTS UnrÈstr¢cted Fund5 Restricted Endowrn•nt Funds Fund5 2022 Total Audit Fees and Bank charges 5.306 £5,306 5,300 5,306 Unrestricted Funds Restricted Endowment Funds Funds 2021 Total Audit Fees and Bank charges ,79 14,794 4,794 £4,794 The Trust receives support services donated by The society. These relate entirely to it5 sole charitable activity.. the education of law students. It is not practicable to quantify the value ol donated 5ervi¢es with any degree ol precision. On the basis that the valve is likely to be immaterial. a value of nil has been ascribed to the donated services in these accounts 17
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Notes to the Accounts (Continued) 6. TRUSTEES, REMUNERATION AND RELATED PARTY TRANSACTIONS During the year no trustee received any remuneration Dr eypense512021.' nill. There were no related party transaction5 in the year12021'. Dill 7. TAXATION The Trust is a registered charity and its incoTne and gain5 Jre exempt Irtsm taxation. INVESTMENTS 2022 2021 Market value at 1 January Capital introduced/lwithdrawnl Investment g3in5/ 1105se51 Market valve at 31 December 12,177,175 11,123,734) 1441 0651 £10,012,376 11,888,56 11,129,938) 1,418,549 £12,177,175 Cost at 31 December £4,333,413 £4,793,239 Market value at l January Capital Introduced/lwithdrawnl Investment gain5/ 1105se51 Market value at 31 December &,915,037 3,553,347 850,000 511,690 E14,915,037 1571,3961 £4,543,641 Cost at 31 December £4,150,000 £4,150,000 Market value at l J8nu3ry Capital introdv¢ed/lwithdr2wnl Investrnent gains/ 1105se51 MHrket value at 31 December 1,962.459 1.721,137 1228,1451 £1,754,314 241,323 £1,962,a59 Cost at 31 December £1,570,573 £1.570,573 F4arket value at l January Capital introdu¢ed/lwithdrawnl Inve5tTrent gains/ Ilossesl Market value at 31 December 19,054,671 11,123,734) 11.21kO,6061 £16,690,331 17.163,047 1279,9381 2,171,562 £19,054,671 Cost 2t 31 Decembor £10,053,986 £10,513,813
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Note$ to the Accounts (Continued) 9. DEBTORS 2022 2021 Accrved income 183,353 £183,353 175,277 £175277 IQ. CREDITORS 2022 2021 Scholarships awarded but not yet paid Audit lee 89,500 57,600 £93 600 £61200 11. SHORT TERM LOAN Iri 2020 and 2021 the Trust borrowed a total ol £1.2m from the Society. The loan was unsecured, interest free and wa5 re-pay3ble on three months notice. In these two years the Sts¢iety did not make it5 annu31 grant to the Trust. In February 2023 the Society agreed to write off the loan 2nd to treat the funds paid as a donation to the Trvst. 12. FINANCIAL INSTRVMENTS 2022 2021 financial Asset$ Financial Assets measured at amortised cost £183,353 £175.277 Financial Liabilities Firiancial Li2bilities measured at amortised c05t £93,600 £61,200 Financial a55ets Comprise accrued income and sundry debttsrs. Financial liabilities comprise accrua15 and sundry creditors. 19
THE GRAY'S INN SCHOLARSHIPS TRUST YEAR TO 31 DECEMBER 2022 Note5 to the A¢rount5 (Continued) 13. ANALY51S OF UNRESTRICTED, RESTRICTED AND ENDOWMENT FUNDS The movement of funds during the yeai 15 a5 det3ilÈd below". l Janvory Incomlng Resovrc•s 2022 Resovrces Expended Invgslment Golns I (losses) 31 Decembei 2022 Uxrestrlcted Fund Generol 5.818.951 1.279.390 2.094.351 55.?13 1223.6491 6.518.222 ThÈ Binghom Fund Total Unrestricted 110.0001 7.098,341 2.150.264 1272,8221 7.794.352 51eph&n Silber Fvnd The Chornley Fvnd Hebe Plunketl Fund The Muslill Fund 898 5.921 29.553 10.108 540 113.0001 14.6501 12281 2.802 24.307 Sir Brion 5medley FurKI Troy FundlBÈlolf Priz& Ann Goddoid FvrKJ Tolol R&slricl&d 348 341 5.378 78.977 121.075 98 I 1.0001 111.0001 189.6501 12071 4.269 60.037 9&.636 52.060 62.829 Endowment Generol 8,466.363 472.611 28.230 1.965.490 10.932.694 1696.8011 138.8971 12.3231 1228.1451 1966.1671 7.769.562 433,714 25.906 .737.345 9.966.528 Hebe Plvnketl Fund Sir Brion Smedley Fund Ann Goddard Fvnd Tolol Endowment Total Funds 18.152.110 2.2T3.093 11.271.OBII 11.240.606) 17.853.516 Anoly51s of Nel As¥ets behween Funds tss ot31 Deetrmbei 2022 Unrestrlcted Restrlclgd Endowmenl Tolal Fund Ftsnds Funds Assets 16.690.331 1.163.184 £17.853.516 Investmen15 N&1 Current AS5Èts 6.694.236 32.599 60.037 £92.636 9.963.497 3.031 £9.966.528 £7.794.352 The Endowment Fund ol the General Fund arose from various legacies and donations and represent5 a pertnanent endowment. The Unrestricted Fund is to be applied to meet the charitable objectives of the Trust. The purp05e5 01 the variou5 lund5 are outlined in m¢>re detail in the Trvstee'5 Report. 20
THE GRAY'S INN SCHOLARSHIPS TRiJST YEAR TO 31 OECEMBER 2022 Note5 to the Accounts (Continued) 13. ANALYSIS OF UNRESTRICTED, RESTRICTED AND ENDOWMENT FUNDS Icontinvedl The movement ol funds during the prior year is as detailed below.. l Jonuary Ineomlng Resources Inveslment 2021 Resources Expended Gglns I IL055e51 37 Dtrcembei 2021 Unreslwlcted Fund Generol 5E92.056 1,091.886 6,983.941 343,396 66.010 409,406 11.143.884 113.3001 727.383 134.795 862.178 5.818.951 1.279.390 7.098.341 The Bingham Fund Total UNe51riclecl Re5tr1cled Slephen Silbei FurKI The Chornley Fund Hebe Plunkell Fvnd 786 15 97 898 806 30.000 20.016 584 115.000 14.7351 100 3.104 5.921 29.553 The bAustill Funcj Sir Brion Smedley Pun Troy Fund/Belofl Prize Gocldord Fund Tolol Re51ricled 4.150 3U5 5,580 85.526 123,003 38 689 J4 109 63,451 88.330 11,000 170.000 194.885 5.378 78.977 1?1,075 4.627 Endowmerrt Generol Hebo Plunkell Fund Sir Brion Smedley Fund Ann GodtJard Fund 7,462.324 416.563 24.882 .724.168 9.627.937 l.(K)4.039 56.048 3.348 241.323 1.304.757 8,466,363 472.611 28.230 1.965.490 10.?32.694 Tolol Emlowment Tolal Fund¥ 16.734.881 497.736 11,252.0691 2,171,502 18.152.110 Analysls ol Net Assets behfeen Fvnds gs ol 31 Decembei 2021 Inve51men15 Net Ctyrenl Assets Un¥estrlEte Furtd Rtstrl¢t*d Fund$ Endowment Funds Assets 8.082.910 1984.5691 £7.098.341 42.098 78.977 £121.075 10.929.663 3.031 £10,932.694 19,054.671 £18.152.110 21