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2023-12-31-accounts

% ts Middle Temple yey TRUST L. FUNDS

THE CHARITIES ADMINISTERED IN CONNECTION WITH THE HONOURABLE SOCIETY OF THE MIDDLE TEMPLE

Charity registration number: 314246

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS 31 DECEMBER 2023

5 TRUSTMiddle[FUNDS] Temple

TRUSTEES’ ANNUALFOR THE YEARREPORT ENDING& FINANCIAL 31 DECEMBERSTATEMENTS 2023

Contents

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Objects and Activities forthe Public Benefit...
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RESEIVES PDOIICY ......ceccceceessesssssssssssesssesesssseseseseeseseseesseeescececceeseseeeeaeeeanaee Z
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Structure, GOVErFNANCE, ANd MANAGEMENT... ccccccceeeeesesssesssesenenssee Y
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STATEMENT OF TRUSTEES’ RESPONSIBILITIES .........cccccecesssseessssteeeesssteeeesene LO
DRAFT
INDEPENDENT
AUDITOR’S
REPORT
TO
THE
TRUSTEES
OF
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CHARITIES
ADMINISTERED
IN
CONNECTION
WITH
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HONOURABLE
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STATEMENTOF FINANCIAL POSITION uuu...eeccesecessecesteeeesteseestteeeesttseessteeees 18
NOTES TO THE FINANCIAL STATEMENTS .......:ccsscccessscesseceesseeeesstesesstseessteee 2O
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Note 4: analysis Of SUDPOrt COSTS .......cccesesssssseeceeeeececeececceesceseceeeeersesttttss DO
Note 5: Operating IEASE INCOME ......cececccecccccescsesececeseesesaesesessesecesesesesses DO
Note 6: GOVEIMMOANCE COSTS...cecccccccccsssssstteeeccssesssseeceestsesssssseteeesesssetaees DO
Note 7: net INCOME FOr TNE YEO...
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Note8:INVESTMENTS...
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MER Middle Temple TRUST ‘one Yy FUNDS

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDING 31 DECEMBER 2023 & FINANCIAL STATEMENTS

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Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Charity name The Charities Administered in connection with
The Honourable Society of the MiddleTemple
Charity registration number 314246
Principal office Treasury Offices,
Ashley Building,
Middle Temple Lane,
London.
EC4Y 9BT
Trustees Bernard Richmond, KC [Chair]
Marilynne Morgan [to 10August2023]
Jessica Simor, KC
Araba Taylor [fo
6 December 2023]
Andrew Burns, KC [from 10 August 2023]
Evan Price [from 10 August 2023]
Louise McCullough [from 23May2024]
Secretary to the Trustees Andrew Hopkin, BA(hons), ACMA, CGMA
Director of Finance & Corporate Services
The Honourable Society of the Middle Temple
Bankers The Royal Bank of Scotland,
250 Bishopsgate,
London.
EC2M 4AA
Solicitors LesterAldridge LLP,
1 King Street,
London.
EC2V 8AU
Auditors Haysmacintyre LLP,
Queen Street Place,
London.
WCAR 1AG
Investment managers Investec Wealth & Investment Limited,
30 Gresham Street,
London.
EC2V 7QN
Cazenove Capital,
1 London Wall Place,
London.
EC2Y 5AU
Waverton Investment Management Limited,
16 Babmaes Street,
London.
SW1Y6AH

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Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

TRUSTEES’ ANNUAL REPORT

These financial statements have been prepared under the accounting policies detailed in Note 1 on page 19 of the financial statements and comply with the Trust Deed, applicable law, and the requirements of the “Accounting and Reporting by Charities: Statement of Recommended Practice” (FRS 102).

Objects and Activities for the Public Benefit

The trustees confirm that they have considered the public benefit guidance available from the Charity Commission when reviewing the Trust Funds’ aims and objectives and in planning future activities and setting the scholarship awards policy for the year.

The Trust Funds have been established to advance the education of intending practitioners at the Bar of England and Wales through the award of scholarships.

The trustees have established their scholarship awards policy to achieve maximum public benefit. Scholarships are awarded to applicants of all backgrounds to attract to the Bar talented people from all parts of our rich and diverse society. Scholarships recognise and reward merit and help to promote membership from underrepresented groups, including those facing financial or disability barriers in achieving a career at the Bar.

The trustees firmly believe that a strong and independent Bar is a vital part of the Constitution of the United Kingdom for the following reasons: -

  1. Members of the Bar will, through experience and training, be able to present cases to the Courts in an efficient and time-saving way;

  2. They will, for the same reason, form a body of practitioners from which judicial appointments can be made;

  3. They will be able to challenge executive and other decisions fearlessly and publicly at whatever level; and

  4. 4, They will be able to represent a cause or individual however unpopular that cause or unattractive that individual may be.

The ultimate beneficiary of the Trust Funds’ scholarship awards programme is the nation at large.

The Trust Funds carry out their objects by financing scholarships to individuals who are studying the Bar Training Course or a conversion course (the Graduate Diploma in Law, or its equivalent), with the intention to undertake pupillage in England and Wales and then to

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TRUST FOR THE YEAR ENDING 31 DECEMBER 2023 FUNDS 5 Middle Temple TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS

commence in practice. Funds for these scholarships are provided from Endowment Funds (investment income only), Restricted Income Funds, and Unrestricted Income Funds.

A further scholarship fund, the Middle Temple Scholarship Fund, was established in 2003 to further encourage donations from members of the Middle Temple to continue to fund future scholarship awards for the public benefit.

The aim of the trustees is to ensure, wherever possible, a steady increase in the number and size of scholarship awards that are made available, whilst maintaining the underlying value of the investments in which the funds are held. The level of scholarship awards during the year was lower than in previous years because of fewer applicants. The trustees have delegated the task of making individual scholarship awards (in terms of both numbers and size) to the Scholarships & Prizes Committee and the proper investment of funds to the Investment Sub-committee. One of the trustees (historically, the Chair) is an ex officio member of the Investment Sub-committee and the reports from the investment managers considered by the Sub-committee are also reviewed by the trustees at each of their meetings.

Middle Temple interviews every scholarship applicant, who must be a member of Middle Temple and have secured a place on the Bar Training Course at one of several institutions across the country. The deciding criterion for the award of a scholarship is an individual's merit to succeed in a career at the Bar of England & Wales. Only once a scholarship has been awarded is the quantum of that award considered and is based on the successful individual's financial circumstances. Scholarships are awarded with a view to maximising financial assistance to the more disadvantaged scholars; the quantum of an award is such that those applicants from poorer sections of the community receive a higher value scholarship and more help is available to a wider range of students.

The details of how to apply for a Middle Temple scholarship are available at the following website address:

https://www.middletemple.org.uk/education-and-training/scholarships-and-prizes

Achievements and Performance

Scholarship awards with a total value of £977k (2022: £1,239k) were awarded during the year, the majority of which were in the form of study awards. This total was less than in 2022 due to a lower number of scholarship applicants than in previous years. The scholarship awards figure includes a total of £554k (2022: £626k) for awards that have been deferred to future years. The deferral of a scholarship award is allowed due to changes in the circumstances of beneficiaries between the date on which the scholarship was awarded and the commencement of the Bar Training Course. Successful scholars can defer the take up of their award for a maximum of three years. The Education Department of the Middle Temple administers the scholarship programme on behalf of the trustees, and they keep detailed records of all awards that are made, including details of deferrals. All deferred

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Middle Temple TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS TRUST FOR THE YEAR ENDING 31 DECEMBER 2023

scholarship awards are reviewed on an annual basis to ascertain if the award will eventually be paid or will lapse.

The trustees are aware of the materiality of deferred scholarship awards and the impact that has on holding cash that is not immediately required for the Trust Funds’ cash flow requirements. The trustees are committed to continue to monitor this issue and to explore ways in which to better manage the Trusts’ cash resources.

A further £543k (2022: £590k) was generously donated to the Trust Funds during the year.

During 2023, the value of the investment portfolio decreased to £16.14 million (2022: £18.72 million), due to adverse financial market conditions and the divestment of part of the portfolio towards the end of 2023 prior to the transfer of funds to new investment managers (as noted below). The Total Return achieved by the investment managers, net of fees, was as follows: -

During 2023, the trustees’ concluded their review of the investment management appointment, with the support of the Investment Sub-committee. The review concluded that the mandate for Investec Wealth & Investment be terminated, and the investment portfolio split equally between two new managers: Waverton Investment Management and Cazenove Capital. The transfer of investment assets was initiated in late October 2023 and completed on 8 February 2024. The investment portfolio figure disclosed in these financial statements includes cash deposits of £1.61 million (2022: £18 1k). Further work is being carried out to facilitate measurement of the impact that the award of a scholarship has on the successful scholar. Anecdotal evidence suggests that Middle Temple scholars have a better chance of gaining pupillage than their non-scholar counterparts. A working group is to be established in 2024 to review the scholarship programme and the impact that is being delivered.

The Inn has been successful in admitting a broad range of diverse individuals to its membership and is committed to continuing its efforts to increase that diversity, particularly from individuals who would not otherwise consider a career at the Bar of England & Wales. The Inn has an ‘outreach’ capability, supported by the Sir Paul Jenkins’ Fund, as well as the tried and tested ‘Access to the Bar’ scheme, supported by the Trust Funds’ restricted income

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Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

funds, which offers bursaries to individuals to experience life at the Bar first-hand on a oneweek placement. That work will continue in 2024.

Financial Review

The Trust Funds are reliant on several income streams, namely: -

Investment policy and performance

The investment portfolio is actively managed in accordance with the long-term objective of a balanced return with a medium risk profile, whilst continuing to hold a well-diversified portfolio.

In late 2023, the investment portfolio was transferred from Investec Wealth & Investment and split equally between Waverton Investment Management and Cazenove Capital. The performance figures for each manager are shown in the table below.

Investec Wealth & Investment 13,890,327 +6,95% +10.44%
Waverton Investment Management 1,125,850 +0.12% +0.84%
CazenoveCapital 1,125,850 +0.30%

Reserves policy

The trustees hold reserves to ensure that every-day administration costs can be funded internally for a period up to 12 months into the future. The trustees have also considered if it

_

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ER Middle Temple “wg TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

would be prudent to hold reserves to be able to finance one years’ worth of scholarship awards but have concluded that this would tie-up too much cash within the trusts.

However, the trustees hold total Unrestricted Income Funds of £5.90 million (2022: £6.51 million). These funds are represented by the Middle Temple Scholarship Fund. The trustees have considered how best to use these funds to support beneficiaries, both now and in the future. At their meeting in March 2021, the trustees resolved to implement a drawdown policy, if this was required in any one year, for the Unrestricted Income Funds of up to £300k per annum to support an increase in scholarship award funding to an average of 75% of the funding shortfall for successful scholarship applicants.

The amount of funds to withdraw from the Middle Temple Scholarship Fund is considered and agreed on an annual basis, as part of the overall consideration of the budget requirements for the forthcoming year. This discussion and decision-making process is also connected to the level of financial support that the Inn can provide each year, by way of its grant to scholarship funding. The trustees continue to consider all these constraints to maximise public benefit whilst ensuring the medium- and long-term sustainability of the Trust Funds.

Plans for future periods

The free reserves of the Trust Funds remain at a minimum level, as scholarship awards are generally equal to the value of income that is generated or received each year. Further ‘real’ growth in the value of scholarship awards will necessitate continued fundraising to generate a larger investment portfolio or an increase in the financial support provided by the Inn.

Risk management

The major risks to which the Trust Funds are exposed, as identified by the trustees, are reviewed annually and systems and procedures have been established to manage and/or mitigate those risks. There are four areas of ‘major’ risk: -

Risks are scored ‘Gross’ and ‘Net’ after taking account of existing risk controls. These risks are scored as ‘red’, ‘yellow’, or ‘green’ in descending order of impact and likelinood.

The highest Net score for the risks identified on the risk register is that for the capital risk to the investment portfolio. The individual investment holdings within the portfolio have been

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Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

diversified to mitigate material medium- and long-term challenges. The investment managers continue to report on their performance to agreed benchmarks at each meeting of the Investment Sub-committee.

The next level of risk, those risks that have a ‘moderate’ or ‘yellow’ risk score, is shared across various risks in the register.

Structure, Governance, and Management

The Charities Administered in connection with The Honourable Society of the Middle Temple (“the Trust Funds”) represents a collection of diverse funds grouped together under a scheme approved by the Charity Commission on 3 September 1975 and is a registered charity in England & Wales, number 314246.

The endowed funds that were originally grouped together were as follows.

The Charity of Constantine John Colombos
Middle Temple Archibald Safford Trust

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MEP Middle Temple i. TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Subsequently, new endowed funds were established and included within the original Charity Commission registration, namely the following.

On 24 July 2003, The Middle Temple Scholarship Fund was incorporated into the original scheme of registration. Following a review conducted in 2014, this fund was reclassified by the trustees as an Unrestricted Income Fund.

In 2010, a ‘Marshalling Bursaries/Access to the Bar Fund’ was established as a Restricted Income Fund and awards were made to students from 2011 onwards. In 2016, the fund was renamed as the ‘Sherrard Access to the Bar Fund’.

During 2012, a ‘Readers’ Essay Prize Fund' was approved by the trustees as a Restricted Income Fund. In 2015 and following approval by the original donor of the funds, the fund was reclassified as an Unrestricted Income Fund and the name of the award changed to the ‘Readers’ Scholarship’.

In 2016, the trustees approved the establishment of the ‘McMullen Access to the Bar Fund’ as a Restricted Income Fund. This fund enables a further eight students to experience life at the Bar first-hand during a one-week placement alongside the students in receipt of a Sherrard Access to the Bar bursary.

In 2018, following the untimely death of the then Master Treasurer, Sir Paul Jenkins, KCB, a Restricted Income Fund was established in his memory to provide fully funded scholarships to intending practitioners from communities where becoming a Barrister is not a traditional career path.

The Trustees are approved for appointment by the Master Treasurer on behalf of the Benchers of the Inn and agreement to that appointment is made by the existing trustees. Appointments and retirements are confirmed by the execution of an appropriate Deed.

There are at least two trustees’ meetings each year; one in the Hilary term and one in the Michaelmas term. Discussion focuses on compliance with the policy objectives of each Fund, investment performance, budget setting and financial management, and risk management. Each year, the trustees’ annual report and financial statements are made available to the Inn and are considered by its Finance & Resources Committee. Ongoing training is provided to the trustees and professional advisers attend trustee meetings as required. Training also takes place as part of the induction process for new trustees.

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Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

The trustees give of their time freely and approve strategic and policy matters. Day-to-day management of the Trust Funds is delegated to a professional staff, who also volunteer their time freely. No trustee remuneration was paid during the year (2022: nil).

The selection of scholarship recipients is delegated to the Scholarships & Prizes Committee, a committee of the Inn. Specific training is provided to those members of the Inn who sit on the Awards Panels. These Awards Panels meet each year during the Easter recess and interview all scholarship applicants. The awards to successful scholarship applicants are then subject to review by the Finance Review Panel, which is composed of three members of the Inn who have not taken part in the scholarship interview process or sat on one of the Awards Panels. The Secretary to the Trustees takes part in the Finance Review Panel meetings to provide financial and budgetary advice to panel members.

The Endowed Funds and part of the Unrestricted Income Funds are held in a common investment portfolio, the management of which is delegated to the Investment Subcommittee, a Sub-committee of the Inn's Finance & Resources Committee. One of the Trust Funds’ trustees, historically its Chair, is a member of that Sub-committee. Investment Subcommittee meetings take place at the end of each quarter and consider the investment performance and valuation report from each investment manager. The performance and valuation reports and the minutes of the Investment Sub-committee meetings are shared with the Trust Funds trustees and the Chair will make an oral report on the proceedings of the Investment Sub-committee at each trustee meeting.

In order to better co-ordinate the income generation and expenditure dispersal activities of the Trust Funds, the Inn’s Associate Director of Development & Communications (representing fundraising activities) and the Director of Education and the Scholarships Officer (representing scholarship awards activities) attend trustees’ meetings when necessary.

Going concern assessment

Each year, as part of the audit process, the trustees formally consider whether or not the Trust Funds can be considered as a ‘going concern.’ In carrying out this assessment, the trustees consider several pieces of information, namely: -

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Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Based on this information and enquiries of management, the trustees consider that it is appropriate for the ‘going concern’ basis to be adopted for these financial statements.

Signed for and on behalf of the trustees of the Charities Administered in connection with The Honourable Society of the Middle Temple

Bernard Richmond, KC Chair of Trustees Date: + /iof ry

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TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

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PEPE Middle Temple
Fe
i. TRUST
@/ FUNDS
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STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice or ‘UKGAAP’).

Charity law requires the trustees to prepare financial statements for each financial year and not to approve those financial statements unless they are satisfied that the financial statements give a true and fair view of the state of the affairs of the charity as at the date of the Statement of Financial Position and of its incoming resources and the application of resources, including income and expenditure, for the year then ended.

In preparing those financial statements that give a true and fair view, the trustees should follow best practice and: -

The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity and that enable them to ensure that the financial statements comply with relevant law. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees and signed on behalf of the trustees of the Charities Administered in connection with The Honourable Society of the Middle Temple by:

Bernard Richmond, KC Chair of Trustees Date: 4»/ /0/ 24

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meee Middle Temple ‘. TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

DRAFT INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE CHARITIES ADMINISTERED IN CONNECTION WITH THE HONOURABLE SOCIETY OF THE MIDDLE TEMPLE

Opinion

We have audited the financial statements of The Charities Administered ICW the Honourable Society of the Middle Temple for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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een Middle Temple er TRUST Y FUNDS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the environment in which it operates, we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

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7 October 2024

Mae Middle Temple \=--ene TRUSTFUNDS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

£000s Unrestricted Restricted Endowed 2023 2022
Income income Funds
Notes Funds Funds
INCOME
Donations and legacies 2 535 8 - 543 590
Investment income from Funds 391 - - 391 367
Investment income from Rental Properties 131 - - 131 134
Other income 53 - - 53 11
Totalincome [
EXPENDITURE 3
Raising Funds
Costs ofgenerating voluntary income ] - -
Investment fund management costs 56 - - 56 67
Investment propertymanagement costs 16 - - 16 8
Charit able activities
Scholarship awards 938 39 - 977 1,239
Ot her 18 - - 18 16
Total Expenditure [_-] L_1.068
OPERATIONALSURPLUS/(DEFICIT) BEFORE
GAINS & LOSSES		 all 50
Net gains/(losses) on investments 8
Gainson invest ment properties - - (67) (67) -
(Losses)/Gains on invest ment funds (690)
(690}		 -
-		 (1,819)
(1,886)		 (2,509)
(2,576)		 1,035
1,035
NETSURPLUS/(DEFICIT) [__(31)] L_ (1.886
Transfers between Funds - - - - -
NETMOVEMENT IN FUNDS [__31)] [_(.886
FUNDS BROUGHT FORWARD 6,513 1,820 16,816 25,149 24,353
FUNDSASOFFINANCIALYEAREND 12 1,789

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 19 to 31 form part of these financial statements.

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Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

£000s Notes 2023 2022
FIXED ASSETS
Investment property 8 3,272 3,339
Investments 8 16,142 18,720
CURRENT ASSETS
Debtors 9 43 44
Bank balances 3,741 3,717
CREDITORS: Amountsfalling duewithin oneyear 10 575 671
NET CURRENT ASSETS
NET ASSETS
CAPITAL & RESERVES
Unrestricted Income Funds 12 5,904 6,453
Endowment funds
Property 12 3,272 3,339
General
TotalEndowmentFunds		 11,658 13,478
[16,817]
Restricted Income Funds 12 1,789 1,879
TOTALCAPITAL&RESERVES

The notes on pages 19 to 31 form part of these financial statements.

These financial statements were approved and authorised for issue, and signed on behalf of, the trustees of the Charities Administered in connection with The Honourable Society of the Middle Temple, by:

Bernard Richmond, KC Chair of Trustees Date: ¢, } 0] Que

October 2024, v4.1

Page | 18

eee Middle Temple . TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

STATEMENT OF CASH FLOWS

AS AT 31 DECEMBER 2023

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |£000s|2023|2022| |Cash|flows from|operating|activities| |Net|cash|provided|by|(used|in)|operating|activities|13|277|2,057| |Cash|flows from|investing|activities:| |Dividends,|interest|and|rent|from|investments|575|512| |Proceeds|from|sale|of|investments|4,338|4,569| |Purchase|of|investments|(2,840)|(4,656)| |Realised|gains/(losses)|on|investments|(897)|(1,035)| |Net cash|provided|by|Investing|activities|1,176|(610)| |Change|in|cash|and|cash|equivalents|in|the|reporting|period|1,453|1,447| |Cash|and|cash|equivalents at|the beginning|of the|reporting|period|3,898|2,451| |Cash|and|cash|equivalents|at|the|end|of the|reporting|period|3,898|

----- End of picture text -----

October 2024, v4.1

Page | 19

pees Middle Temple Ca TRUST FUNDS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

NOTES TO THE FINANCIAL STATEMENTS

Note 1: Accounting policies

The principal accounting policies adopted, judgments, and key sources of estimation uncertainty in the preparation of the financial statements are as follows: -

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102)(effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102), and the Companies Act 2006.

The Charities Administered in connection with The Honourable Society of the Middle Temple is a charity registered in England & Wales (charity registration number 314246) and meets the definition of a public benefit entity under FRS 102. The principal office is located at The Treasury Offices, Ashley Building, Middle Temple Lane, London. EC4Y 9BT.

Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note(s). All financial assets and liabilities are basic financial instruments.

Preparation of financial statements on a ‘going concern’ basis

The trustees consider that there are no material uncertainties about the Trust Funds’ ability to continue as a ‘going concern’. The review of the financial position, reserves levels, and future plans gives the trustees confidence that the Trust Funds remain a ‘going concern’ for the foreseeable future.

Critical accounting judgments and estimates

In preparing these financial statements, management has made judgments, estimates, and assumptions that affect the application of the Trust Funds’ accounting policies and the reported assets, liabilities, income and expenditure, and the disclosures made in the financial statements. Estimates and judgments are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable in the circumstances.

October 2024, v4.1

Page | 20

----- Start of picture text -----
pawn Middle Temple
i. TRUST
¢ hal ¥y FUNDS
----- End of picture text -----

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

The trustees have relied on the professional skill and judgment of third-party property valuation experts for the annual revaluation of the investment properties.

Income recognition

All income is recognised once the Trust Funds has entitlement to that income, it is probable that the income will be received, and the amount of income receivable can be reliably measured.

Gifts in kind

Gifts in kind represent assets donated for distribution or use by the Trust Funds. Assets given for distribution are recognised as income only when distributed. Assets given for use by the Trust Funds are recognised when receivable.

Gifts in kind are valued at the amount actually realised from the disposal of assets or at the price the Trust Funds would otherwise have paid for the assets. The services provided by the trustees and accounting and other administrative services provided by The Honourable Society of the Middle Temple are not included in the financial statements as their value is not easily quantifiable.

Investment income

Investment income is recognised on a receivable basis once the amounts can be reliably measured.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be reliably measured. Expenditure is classified under the following activity headings.

The Trust Funds are not registered for Value Added Tax purposes.

Expenditure is allocated to the particular activity where the cost relates directly to that activity.

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Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Allocation of costs

The Honourable Society of the Middle Temple provides the Trust Funds with free administrative and support costs, including staff time. The Trust Funds have no employees.

Investmenis

Investments are a form of basic financial instrument and are initially shown in the financial statements at market value. Movements in the market value of investments are shown as unrealised gains or losses in the Statement of Financial Activities.

Realised gains and losses on investments are calculated as the value between the sales proceeds and their opening carrying values or their purchase value if acquired after the first day of the financial year.

Unrealised gains and losses are calculated as the difference between the fair value at the year end and the carrying value of the investment.

Both realised and unrealised investment gains and losses are combined in the Statement of Financial Activities and the Statement of Financial Position.

Investments — stocks and shares

Quoted investments are stated at bid value at the date of the Statement of Financial Position and unquoted investments are stated at estimated market value. Any gain or loss made on the investments is taken to the Statement of Financial Activities.

Investments — properties

Freehold land and buildings are treated as investment properties and are included in the financial statements at their latest market valuation. No depreciation is provided on these assets.

Increases in value over their historic cost will be included in the Property Revaluation Reserve, whilst any decrease below historic cost will be charged to the Middle Temple Benefactors’ Fund (the source of the funds used to purchase the properties).

The annual revaluation exercise is carried out by third-party professional valuers with relevant experience of domestic property valuations.

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peaeae Middle Temple 4le TRUST a FUNDS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Creditors and provisions

Creditors and provisions are recognised where the Trust Funds has a present obligation resulting from a past event that will probably result in the transfer of funds to a third-party and the amount due to settle that obligation can be reliably measured or estimated. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts that may be applicable.

Debtors

Short-term debtors are measured at transaction value, less any impairment to that value. Cash at Bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity date of three months or less from the date acquisition or opening of the deposit or similar account.

Funds

Unrestricted Income Funds are represented by donations and other income receivable or generated for the objects of the Trust Funds.

Restricted Income Funds are those funds that are to be used in accordance with specific instructions imposed by the donor or trust deed.

Endowment Funds represent several significant historic funds previously donated to the Inn from benefactors. The policy for these funds is to use only the income generated by them each year to pay scholarship awards. The trustees are aware of the need to retain these funds as assets for the long-term delivery of the Trust Funds’ charitable purposes. The trustees will continue to preserve the capital of these endowment funds and, if possible, to increase their value for the long-term.

Employee benefits

The Trust Funds have no employees.

October 2024, v4.1

Page | 23

aaa Middle Temple Ff. “ee TRUST w” FUNDS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Note 2: Donations and legacies

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Current|Year|£000s|Unrestricted|Restricted|Endowed|2023| |Income|Income|Funds|£000s| |Funds|Funds| |Middle Temple|grant|-|-|500|500| |Legacies|5|-|-|5| |Donations| |Gift Aid donations|24|9|-|33| |Non-gift aid donations|5|-|-|5| |Total|donations|er:| |Tax|recovered|on|donations|1|1|-|-| |TOTAL VOLUNTARY|INCOME|[3s]|L__s| |Prior|Year|£000s|Unrestricted|Restricted|Endowed|2022| |Income|Income|Funds|£000s| |Funds|Funds| |Middle Temple|grant|-|-|500|500| |Legacies|11|11|-|22| |Donations| |Gift|Aid donations|28|9|-|37| |Non-gift aid donations|18|3|1|22| |Total|donations| |Tax|recovered|9|-|~|9| |TOTAL VOLUNTARY|INCOME|[23]| |Note|3:|analysis|of|expenditure| |Current|Year|Direct|Direct|Grant|Support|2023| |Costs|Costs|Funding|Costs|Total| |Staff|Other|£000s| |Middle|Temple|Trust|Funds|-|73|977|18|1,068| |Prior|Year|Direct|Direct|Grant|Support|2022| |Costs|Costs|Funding|Costs|Total| |Staff|Other|£000s| |Middle Temple|Trust|Funds|-|86|1,239|16|1,34]| |TOTAL EXPENDITURE|[|

----- End of picture text -----

Note 3: analysis of expenditure

October 2024, v4.1

P a g e | 24

FOR THE YEAR ENDING 31 DECEMBER 2023 TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS

[TRUST] 4[re] wa Middle Temple ¢ #7} FUNDS

Note 4: analysis of support costs

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£000s|£000s| |Governance|18|16| |TOTAL SUPPORT|COSTS|

----- End of picture text -----

Note 5: operating lease income

Th Middle Temple Trust Funds own three investment properties, located in Clapham, London. The leases are all residential and during the reporting year generated income of £131k. Each of the leases has a fixed term of between two and a half and three years.

----- Start of picture text -----
£000s
Not later than One year 13]
Later than one year but not later than Five years; and 32
Later than five years -
Note 6: Governance costs
2023 2022
£000s £000s
Auditor's remuneration 18 16
TOTAL GOVERNANCE COSTS
Note 7: net income for the year
2023 2022
£000s £000s
This is stated after charging/crediting
Auditor's remuneration
----- End of picture text -----

October 2024, v4.1

Page | 25

pee Middle Temple i , J TRUSTFUNDS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Note 8: investments

2023 2022
Investment Properties £000s £000s
Market value at
1 January		 3,339 3,339
Unrealised loss on revaluation (67) -
Market value at 31 December 3,272
Investment Funds 2023 2022
£000s £000s
Market value at
1 January		 18,539 17,406
Acquisitions/additions at cost 2,840 4,667
Proceeds ofdisposal (4,338) (4,569)
Net (losses}/gains on disposals & revaluations (2,509) 1,035
14,532 18,539
Cash held in investment portfolio 1,610 181
Marketvalueat31December 18,720

The following individual investment represent 5% or more of the aggregate value of the charity investments:

Blackrock Fm Ltd Blackrock European Dynamic 5.0%
Vanguard Funds PlcS&P 500 Ucits Etf USD Dis 16.8%
2023 2022
£000s £000s
Analysis ofInvestments
Investment Properties 3,272 3,339
InvestmentFund 16,142 18,720

Total Investments

All investments in the Investment Funds are listed on recognised stock exchanges.

October 2024, v4.1

Page | 26

pate Middle Temple Fe we TRUST @/ FUNDS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Note 9: Debtors

2023 2022
£000s £000s
Tax recoverable - 1
Investment income 43 43
TOTAL DEBTORS & PREPAYMENTS
Note 10: Creditors -amounts falling due within one year
2023 2022
£000s £000s
Audit & taxation 17 16
Investment management fees - 17
MiddleTemple 2 12
Accruals for scholarships payable 554 626
TOTAL CREDITORS: amounts falling
sae
due withinoneyear		 573 671

Note 10: Creditors - amounts falling due within one year

October 2024, v4.1

Page | 27

Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Note 11: analysis of net assets between funds

Current Year £000s Unrestricted Restricted Endowed Total
Income Income Funds £000s
Funds Funds
Investment properties - - 3,272 3,272
Investment funds 4,484 - 11,658 16,142
Net current assets 1,420 1,789 - 3,209
TOTAL NET ASSETS BETWEEN FUNDS 1,789
Prior Year £000s Unrestricted Restricted Endowed Total
income income Funds £000s
Funds Funds
Investment properties - - 3,339 3,339
Investment funds §,243 - 13,477 18,720
Net current assets 1,270 1,820 - 3,090
TOTALNETASSETSBETWEENFUNDS 16,816] [25,149

October 2024, v4.1

Page | 28

ae Middle Temple 4i-——_TRUST {jAs FUNDS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Note 12: analysis of funds

ENDOWED FUNDS

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |Movement|in|Movement|in| |CU|investment|investment| |RRENT Y|EAR|Balance as at|property|funds market|| Balance as at| |I|Janvary|New|capital|market|value|value|31|December| |ENDOWED|FUNDS| |£000's| |Alfred|Harmsworth|Memorial|Fund|1,241|-|-|(134)|1,107| |The|Astbury Scholarship|Fund|1,424|-|-|(154)|1,270| |Middle Temple|Benefactors’|Fund|9,830|-|(67)|{1,064)|8,699| |Jules Thorn|Fund|1,399|-|-|(151)|1,248| |The|Queen|Mother|Scholarships|&|Awards|Fund|2,422|-|-|(262)|2,160| |The Joseph|Jackson|Memorial|Fund|500|-|-|(54)|446| |TOTAL|ENDOWED|FUNDS|16816|{ ||(67)|||[14,930]| |Movement|in|Movement|in| |PRIOR|investment|investment| |YEAR|Balance as at|property|funds market|| Balance as at| |1|January|New|capital|market|value|value|| 31|December| |ENDOWED|FUNDS| |£000's| |Alfred|Harmsworth|Memorial|Fund|1,185|-|-|56|1,241| |The|Astbury Scholarship|Fund|1,360|-|-|64|1,424| |Middle|Temple|Benefactors’|Fund|9,385|-|-|445|9,830| |Jules|Thorn|Fund|1,336|-|-|63|1,399| |The Queen|Mother|Scholarships|&|Awards|Fund|2,312|-|-|110|2,422| |The|Joseph|Jackson|Memorial|Fund|477|-|-|23|500| |TOTAL ENDOWED FUNDS|Y16055|{|-j[|]|16,816|

----- End of picture text -----

October 2024, v4.1

Page | 29

Oo oO te) oO Q is}NO * x=bh

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is}NO
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bh
=bh		 Aalance as ai oo
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.		 ,
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;
Scholarship		 investment Other Movementin
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A Q
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UNRESTRICTED
INCOMEFUNDS£000s
AlfredHarmsworthMemorialFund
Scholarship ReserveAccount
Benevolent Account
TotalAlfredHarmsworthMemorialFund		 - _
-
=
-		 -
=
-		 112
:
112		 21
=
2}		 ——
-
:
-		 3
=
3		 (131)
=
{131}		 -
=
-		 (3)
=
(3)		 (1)
=
(1)		 -
-
-		 ] 0
S
(@)
re)
=		 &
(77)
°
a)
=
=
a.
wn		 — i=
Los)
mi
TheAstburyScholarshipFund
MiddleTempleBenefoctors' Fund
JulesThornFund
TheQueenMotherScholarships&AwardsFund
TheJoseph Jackson MemorialFund
MiddleTempleScholarship Fund		 -
{156}
-
-
19
6,650		 -
-
-
-
-
-		 -
-
>
-
-
35		 76
139
6&8
89
16
:		 24
165
24
4}
8
108		 -
131
-
-
-
-		 3
22
3
t)
]
15		 (99)
(280)
(90)
(127)
(4)
(207)		 -
{16}
-
-
-
-		 (4)
(24)
(3)
(6}
Q)
{15}		 Q)
{7)
(1)
(2)
-
(7)		 :
:
-
-
-
(690)		 (1)
(26}
]
]
39
5,889		 7
S
z
oO
”
TOTAL UNRESTRICTEDINCOMEFUNDS 65i3}[__-J[__35
Tt		 L131]L__s3] L__s3] [5.904]
~”
a —— =I
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incoming
.
.
Uniesticted
resources,
5,olewant
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property costs
Incomefunds
from activities
ee		 Investment
management
costs		 expending Movementin
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marketvalue		 Svianes
0: of
INRESTRI
INCOMEFUNDS £000s
U
TRICTED
INCO.
U		 2
O
az
.
AlfredHarmsworth MemorialFund
Scholorship ReserveAccount		 - - 134 20 - } { 150) - (4) (1) - 4c
= >
mr
-
:
Q
ie]
(1)		 Benevolent Accouni
Total Alfred Harmsworth Memorial Fund
TheAstburyScholarshipFund
Middle Temple Benefactors’Fund
JulesThorn Fund
The Queen MotherScholarships
& AwardsFund
TheJosephJackson Memorial Fund
Middle Temple ScholarshipFund
TOTALUNRESTRICTED INCOMEFUNDS		 :
-
:
-
:
-
-
-
-
-
-
-
-
-
-
-
-
14
-
-
6,417
-
57
 ¢a3i}[-}[__s7]
[		 -
134
69
10
147
140
-
-		 -
20
23
157
22
39
8
97		 -
-
:
134
-
-
-
-		 1
1
5
1
]
-
3
[13]		 :
(150)
(87)
{419}
(165)
(171)
()
{173}		 :
-
-
{8)
-
-
-
-		 (4)
(4)
{29}
(4)
{7)
(1)
(18)
(67)		 >
(4)
(2)
(6)
(1)
(2)
(1)
(7)		 :
-
-
-
-
-
-
274		 -
-
(156)
-
-
19
6,650
[6.513
L
_ as
Go
©		 Bsza
SZ
On

Middle Temple TRUST

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Note 12: analysis of funds

RESTRICTED INCOME FUNDS

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |CU|incoming| |RRENT YEAR|Balance as at|resources|Other|| Balance as at| |1|January|||from|activities|expenditure|| 31|December| |RESTRICTED|INCOME|FUNDS| |£000's| |Access|to|the|Bar|Fund:|Sherrard|23|]|(13)|1]| |Accessto|the|Bar|Fund:|McMullen|17|-|-|17| |VIS|Moot|Fund|1|(2)|-|(1)| |Reader's Scholarship|Fund|15|-|-|15| |Sir|Paul|Jenkins’|Memorial|Fund|1,577|5|-|1,582| |Emergency|Assist|ance|Fund|187|4|(26)|165| |TOTAL RESTRICTED INCOME FUNDS|||1,820]|1,789| |PRIOR|incoming| |YEAR|Balance as|at|resources|Other|| Balance as|at| |I|January||from|activities|expenditure|||31|December| |RESTRICTED|INCOME|FUNDS| |£000's| |Access|to|the|Bar|Fund:|Sherrard|29|-|(6)|23| |Access|to|the|Bar|Fund:|McMullen|16|]|-|17| |VIS|Moot|Fund|-|]|-|]| |Reader's|Scholarship|Fund|15|-|-|15| |Sir|Paul|Jenkins’|Memorial|Fund|1,562|15|-|1,577| |Emergency|Assistance|Fund|230|6|(49)|187| |TOTAL RESTRICTED INCOME FUNDS||1,852|[ 23]|(55)|||1,820)|

----- End of picture text -----

All funds, with the exception of the Middle Temple Emergency Assistance Fund, support the award of scholarships to intending practitioners at the Bar of England & Wales. These costs include course fees to gain the required academic qualifications, living expenses whilst studying, the fees for[joining][the][Inn,][and][the][fees][to][enable][Call][to][the][Bar.]

All Unrestricted Income Funds support these types of expenditure.

October 2024, v4.1

Page | 31

peaeeee Middle Temple we7 TRUST ¥” FUNDS

TRUSTEES’ ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR ENDING 31 DECEMBER 2023

Restricted Income Funds are used in accordance with the donor restrictions, i.e., the Sherrard and McMullen Access to the Bar awards provide an opportunity for undergraduate students from communities where a career at the Bar of England & Wales may not be an immediate career path to see how the profession works in practice. The VIS Moot Fund provides financial support to Middle Temple students taking part in the annual mooting competition. The Readers’ Scholarship Fund provides an annual scholarship to one of the successful scholarship applicants. The Sir Paul Jenkins’ Memorial Fund provides funding to support fully funded scholarships to two eligible scholarship award candidates each year, as well as supporting the Inn’s ‘outreach’ programme.

The Middle Temple Emergency Assistance Fund was established during the COVID-19 pandemic to support those Middle Temple members in need of financial assistance who would not meet the criteria for support from the Barristers’ Benevolent Association.

Note 13: reconciliation of net income to net cash flow from operating activities

2023 2022
£000s £000s
Netincome/(expenditure) forthe reporting
period (as perthe statement offinancial
activities)		 (1,502) (239)
Adjustmentsfor:
Unrealised (gains)/losses on investments 2,449 2,635
Dividends, interest and rent from investments (575) (512)
2 (14)
{Decrease)/increase in creditors (96) 187
Netcash provided by/ (used in) operating activities
Analysis ofCash and Cash Equivalents
Cash at bank and in hand 3,74] 3,717
Cashatinvestmentmanagers 1,610 181

Note 14: related party transactions

There were no related party transactions during the year, nor in the prior year.

During the year, no trustees received any remuneration or other benefits (2022: £nil).

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