Registration No: 506823
## **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **FINANCIAL STATEMENTS**
**FOR THE PERIOD ENDED 31ST AUGUST 2023**
## **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **ANNUAL REPORT AND ACCOUNTS 2023 REFERENCE AND ADMINISTRATIVE INFORMATION**
## **CHARITY TRUSTEES**
The charity Trustees have all served in office throughout the year except where indicated. Together with the past Trustees who served in the year as indicated, they are:
Mr C Saunders OBE, MA, FSI (Chairman) Mr A Clarke FCA Mr G N Elliott CBE, FCA Mrs C Walker BA (retired 05 September 2022) Mr D Herman BA(Com), FCA Mr G C Burton B.Sc., C.Eng, F.I.Struct.E., F.C.S., F.Cons. E. Mr J Moran FCCA
## **OFFICERS**
Director of Finance and Operations Ms E A Smith (resigned 31/10/2023) Clerk to the Trustees: Mrs S Sutton Registered Address: Grangethorpe Road Fallowfield MANCHESTER M14 6HS Registration Number: 506823
```
- -1
```
# **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST**
## **OPERATING AS MHSG BURSARY FUND**
## **ANNUAL REPORT AND ACCOUNTS 2023 REFERENCE AND ADMINISTRATIVE INFORMATION**
## **ADVISERS:**
Auditors: Crowe U.K. LLP The Lexicon Mount Street Manchester M2 5NT
Solicitors: Addleshaw Goddard LLP 100 Barbirolli Square MANCHESTER M2 3AB Bankers: Santander Bridle Road Bootle L30 4GB
Investment Advisers: Redmayne Bentley LLP 3 Hardman Square Spinningfields Manchester M3 3EB
```
- -2
```
**THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **TRUSTEES REPORT FOR THE PERIOD ENDED 31[ST] AUGUST 2023**
The Trustees present their annual report and financial statements of the charity for the 13-month period ended 31st Augst 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and 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 UK and Republic of Ireland (effective 1[st] January 2019).
The Manchester High School for Girls General Charitable Trust (the Trust) operates as MHSG Bursary Fund.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The Charitable Trust, which was established by a Trust Deed in 1971 with a further supplement in 1987, is governed under a Charity Commission Scheme (number 506823) as an unincorporated association in the name of The Manchester High School for Girls General Charitable Trust. The Trust now operates as MHSG Bursary Fund.
## **Connected Charity**
Manchester High School for Girls is closely connected to the Trust. The School transferred £260,655 (2022 - £309,504) of funds to the Trust. The Trust paid a bursary grant amounting to £410,933 (2022 - £329,084) which the School awarded as bursaries during the year.
The General Charitable Trust provides essential support to the advancement of educational work of the school by providing means tested bursaries to students who have performed well in the entrance exams and interview for entry into Year 7 and GCSE results for Sixth Form. The work of the Trust is essential to achieving the School's objective of becoming increasingly socially diverse regardless of the financial means of parents and the girls school of choice across the North West.
A small number of part or full fee bursaries are offered to pupils who can demonstrate the need for financial support. Bursaries can be worth up to 100 per cent of fees – and in some cases 110 per cent if they cover trips, lunches, travel grants and uniform and some extracurricular activities. The school is aiming to award more transformative bursaries at 110%, designed to support those with the greatest financial need, ensuring they can truly benefit from a life changing MHSG education.
At the moment, the school is only able to fund 5% of all applications for bursary support, with 1 in 4 applications for Year 7 entry requesting some form of financial assistance. As the political uncertainty and cost of living continues to impact many households, we expect demand for bursaries to increase.
The School works hard to ensure bursary funding is awarded to those who will benefit most from an MHSG education. The application process for bursaries usually involves interviewing parents / guardians to ensure vital bursary funding is awarded those most suitable, with the greatest financial need and academic potential.
```
- -3
```
# **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST**
# **OPERATING AS MHSG BURSARY FUND**
## **TRUSTEES REPORT FOR THE PERIOD ENDED 31[ST] AUGUST 2023**
## **Recruitment and training of Trustees**
All Trustees are recruited by invitation, dependent upon their expertise, experience and skills.
The Trustees may appoint any number of additional trustees by a resolution of the Trustees recorded in the Trustees’ minutes.
New Trustees are inducted into the workings of the Trust, including policies and procedures, together with an appropriate training schedule depending upon their existing area of expertise.
## **Organisational management and decision making**
The Trustees determine the strategic direction and general policy of the Trust. A Full Trustees meeting normally takes place twice a year, covering operational, tactical and strategic issues. The day-to-day administration of the Trust is provided by the School.
## **Risk Management**
The Trustees have considered the major risks faced by the Trust and believe that the principal threat to its ability to achieve its objectives lies in its ability to maintain its revenues from its investments, donations and legacies.
In order to manage this risk, regular meetings are held with the investment advisor and the School continues to seek to develop its relationship with local organisations and former pupils to increase the level of donations and legacies.
```
- -4
```
# **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **TRUSTEES REPORT (Cont’d) FOR THE PERIOD ENDED 31[ST] AUGUST 2023**
## **OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES**
## **Charitable objects**
The Trustees shall pay or apply the entirety of the annual income of the Trust Fund to or for 1) Such charitable purposes connected with the School as the Trustees shall from time to time in their absolute discretion determine or 2) Such other charitable purposes or such charitable foundations (whether or not connected with the School) as the Trustees shall in like manner determine.
## **Charitable aim**
The aim of the Trust is to assist Manchester High School for Girls (“the School”) and where appropriate, any other charitable foundations in fulfilling their charitable purposes.
## **Objectives for the year**
This year the focus continues to be to build up and maintain adequate funds in order to sustain the level of bursary support as previously provided to pupils at Manchester High School for Girls. The target each year is to provide a grant which will maintain bursary support.
The Trustees are actively seeking ways to enhance the underlying capital of the Trust so as to maximise the possibility of future awards.
## **Strategies to achieve the year’s objectives**
In order to achieve the objects and aims of the Trust we have retained the services of Redmayne Bentley LLP, who report to the Trustees on their performance at the two Trustees Meetings each year. During the course of each year the total resources of the Trust are compared to the projected cost of providing the bursaries over a full seven-year period, in order to ensure that there are adequate resources to provide the grants for the new pupils each year.
## **Public benefit**
In line with the charitable objectives of the Trust a bursary grant was awarded to Manchester High School for Girls (Charity number 1164323) which is a connected charity. Those funds have been ring fenced in the School and allocated on a means tested basis to provide bursaries to high ability girls from low income families.
## **Principal activities of the year**
In order to achieve this year’s objectives, the Trustees have continued to support and assist the School in its endeavour to provide bursaries to pupils with high ability from low income families, on a means tested basis. The Trustees have also reviewed the financial resources available to ensure, as much as is possible, that the School can fulfil its financial commitments in relation to bursaries.
```
- -5
```
# **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST**
## **OPERATING AS MHSG BURSARY FUND**
## **TRUSTEES REPORT (Cont’d) FOR THE PERIOD ENDED 31[ST] AUGUST 2023**
## **Grant making policy**
The Trustees, after consideration of the financial state of affairs of the fund and requests for support for pupils in the Senior School prepared by the Head Mistress, make an annual grant to Manchester High School for Girls for the provision of bursaries. The application of the grant towards the individual bursaries is determined by the Head Mistress on the basis of educational ability and financial need. Any restrictions imposed by the original donor of the funds are recognised.
## **REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD**
## **Operational performance**
The grant provided to the School this year to fund school bursaries was a grant amounting to £410,933 (2021/22 £329,084). It was used by the School, together with its own resources, to award bursary assistance to 66 pupils across the School.
## **The 150th Anniversary: Empowering lives one girl at a time**
As the School approaches its 150th anniversary as the first academic girls’ school in the north of England, a key objective of our celebrations in 2024 is to increase fundraising for means tested transformative bursaries aiming to raise £500,000 to fund more students for whom an MHSG experience.
This key objective outlined above, is matched with the vision of the School: to deliver a pioneering, innovative and dynamic learning experience within a compassionate and caring environment for a diverse community regardless of financial means where the wellbeing and happiness of every individual and the fulfilment of their potential are our priority. As the school of choice for girls in the North-West, our pupils - like those who have attended the school before them - will go on to be global citizens and courageous motivators of change.
The three strategic objectives within the strategic plan are:
- To deliver a pioneering, innovative and dynamic learning experience
- To support a pioneering approach to the wellbeing and happiness of every individual student
- To be a school that embraces its pioneering history and pioneering future
The School is striving to increase transparency within its school community of the value of social diversity and increasingly celebrating the life changing difference bursaries make to the lives of our students and their families. Increasing the visibility of the success of alumnae who have benefited from bursaries or assisted places provides critical reminders of the truly transformative effect of bursary funding.
As we approach the 150th Anniversary, the School’s development team is working through priorities including: updating all collateral and web content; devising a campaign plan and planning a number of high profile events for 2024.
A number of key fundraising events have been scheduled for 2024 including:
- 150th Anniversary Founders Day Fundraising Launch – 19th January 2024
- MHSG Ramadan Iftari – 14th March 2024
- MHSG Bursary Ball – 29th June 2024
- Fundraising Dinner hosted by Aneel Mussarat – 14th November 2024
## **Key activities under way:**
Identifying bursary / assisted funding students who can help tell the story: We’ve now amassed a pool of alumnae who are willing to support our bursary messages. These alumnae will be critical in telling the story in video, written word and visually. They will play an important role in key events as well as within regular communications and collateral.
```
- -6
```
## **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **TRUSTEES REPORT (Cont’d) FOR THE PERIOD ENDED 31[ST] AUGUST 2023**
Creation of a 150th Fundraising Leadership Board: Identifying a number of key individuals from across our alumnae, current and former parents, governors and supporters of the school. This group will help us access high net worth individuals and parents with the ability and willingness to support the school.
Increasing bursary funding from current students and parents: Parents donating their child’s full deposit upon leaving school at the end of Sixth Form will have their child’s name featured on a Class of 2023 donor wall within the Sixth Form Centre. The creation of a parent led subgroup of the 150th Anniversary Fundraising Leadership Board will allow parents to become more engaged with the schools vision.
Increasing the visibility of our bursary provision: Showcasing the success of our bursary students with alumnae, students and parents as a source of pride. At the 2024 Celebration and Awards evening, the keynote alumnae speaker Dr Laura Ajram, the Chair of Governors and current Head Girl all spoke of their pride of receiving bursary funding and the life changing impact bursary funding had on each of them.
Dr Laura Ajram said:
“I don’t think I understood what empowerment meant aged 11 and I certainly didn’t appreciate the significance and generosity of the act of paying for a stranger’s education, but now reflecting back -the act of donating to the bursary fund was the definition of empowerment – somebody gave me the power to get a brilliant education and to access the support, skills and friendships that have set me up to be who I am today.”
Dr Laura Ajram, class of 2009, Chief Executive of the British Neuroscience Association.
## **Fundraising performance**
The Trust’s fundraising is entirely promoted by the School with the aim of ensuring that funding from donations and sponsorship is maximised. A proportion of funds raised for bursaries by the School are included within the accounts of The Manchester High School for Girls Charitable Trust **.**
## **Investment performance against objectives**
The performance objective for the fund is to outperform, over the long-term, on the investment composite benchmark which has been agreed with the Investment Manager. The performance of the fund is monitored quarterly against the benchmark. Any major variations are discussed by the Bursar / Director of Finance and Operations, and Investment Adviser.
## **FINANCIAL REVIEW AND RESULTS FOR THE PERIOD**
The decrease in funds this year amounts to £74,173 (2022: increase of £10,322).
Total funds decreased to £4,570,360 from £4,644,533.
## **Reserves policy**
The Trustees seek to maintain undesignated and unrestricted funds, which are the free reserves of the Trust and effectively include its entire funds, at a level that is adequate to fund the grants made to pupils throughout their expected attendance at school.
The Trustees currently feel that reserves to underpin an average disbursement of £400K for 7 years, i.e. £2.8M, would be sufficient. The total funds shown in the balance sheet are adequate to enable the Trust to continue to provide grant support to the School at the targeted level.
```
- -7
```
## **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **TRUSTEES REPORT (Cont’d) FOR THE PERIOD ENDED 31[ST] AUGUST 2023**
## **Principal funding sources**
The Trust’s principal funding source is from a transfer of funds from Manchester High School for Girls, donations, legacies and investment income.
The transfer from the School is to augment the Trust’s resources in order for them to pay for bursaries for pupils of the School.
The majority of expenditure of the Trust during the year was the payment of a bursary grant to the School; this expenditure is in excess of the income generated from the principal income sources and directly supports the key objectives of the Trust.
## **Investment policy and objectives**
The Trustees seek to ensure that the funds of the Trust are invested in medium and high-risk equities in order to protect the long term ‘real’ value of its assets. The investment managers are engaged on a discretionary basis which means that investment decisions are made using their judgement. Their approach will involve purchasing a variety of securities in the market as long as they fall in line with the Trust’s medium to high risk profile, financial and ethical aims. The Trustees would therefore expect an average 5% Return on Investment over a rolling 5-year period. Above all, the Trustees are committed to an investment policy which seeks to maximise ‘overall return’ – being the combined return from income and capital growth, subject to the required level of income being generated.
## **Public Benefit and Future Plans**
The Trustees consider the funds available each year that can be made available to provide bursary grants. They are advised by the Trust’s Investment Managers in relation to the investments held. They assess the level of funds now and those expected in the next few years to see how sustainable they are against expected grants. The current expectation is that this Trust will continue to make modest bursary grants for the foreseeable future. The level of bursary grants will of course continue to be considered each year.
The Trustees continue to consider the public benefit requirement in light of the guidance issued by the Charity Commission and in the commitment of Manchester High School for Girls to its provision of the public benefit. The Trustees are in regular contact with Manchester High School for Girls in relation to the public benefit requirement and the criteria for determining the award of bursaries.
## **ACCOUNTING AND REPORTING RESPONSIBILITIES**
The Trust Trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trust Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources, of the Trust for that period. In preparing the financial statements, the Trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the applicable Charities Statement Of Recommended Practice (“SORP”);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the trust will continue in operation.
```
- -8
```
**THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST**
## **OPERATING AS MHSG BURSARY FUND**
## **TRUSTEES REPORT(Cont’d) FOR THE PERIOD ENDED 31[ST] AUGUST 2023**
The Trustees are responsible for keeping proper accounting records which are such as to disclose, with reasonable accuracy, the financial position of the Trust at any time, and to enable them as Trustees to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust Deed. The Trustees are also responsible for safeguarding the Trust’s assets, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.
The financial statements contained on pages 13 to 19 have been approved by the Trustees of The Manchester High School for Girls General Charitable Trust on and signed on their behalf by:
Trustees:
Christopher Saunders OBE, MA, FSI (Chairman)
Alan Clarke FCA
```
- -9
```
**REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE MANCHESTER HIGH SCHOOL FOR GIRLS**
## **GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND FOR THE PERIOD ENDED 31ST AUGUST 2023**
## **Opinion**
We have audited the financial statements of The Manchester High School for Girls General Charitable Trust operating as MHSG Bursary Fund (‘the charity’) for the 13-month period ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including 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:
- give a true and fair view of the state of the charity’s affairs as at 31 August 2023 and of its income and expenditure, for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 Trustee's 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 contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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 this gives rise to a material misstatement in the financial statements themselves. 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.
```
- -10
```
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND FOR THE PERIOD ENDED 31ST AUGUST 2023**
## **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 requires us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Trustees’ report; or
- sufficient and proper accounting records have not been kept by the charity; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the Trustees’ responsibilities statement set out on page 7, 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**
We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity for fraud. The laws and regulations we considered in this context for the UK operations were the Charities Act Regulations.
```
- -11
```
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE MANCHESTER HIGH SCHOOL FOR GIRLS**
## **GENERAL CHARITABLE TRUST**
## **OPERATING AS MHSG BURSARY FUND FOR THE PERIOD ENDED 31ST AUGUST 2023**
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of voluntary income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, reading minutes of meetings of those charged with governance and sample testing of income.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## **Use of our report**
This report is made solely to the charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Crowe U.K. LLP**
Statutory Auditor The Lexicon Mount Street Manchester M2 5NT
Date: 22nd March 2024
```
- -12
```
**THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **Statement of Financial Activities for the period ended 31st August 2023**
|**Notes**
**Income and endowments from:**
Donations and legacies
Charitable activities:
Transfer from the school
Investment income
**Total**
**Expenditure on:**
Charitable activities:
Bursary grants awarded
Raising funds:
Brokers fees & bank charges
Other costs 3
**Total**
Net income and net movement in funds
before gains and losses on investments
Net (losses)/gains on investments:
Net movements in funds
**Reconciliations of Funds**
Total funds brought forward
**Total funds carried forward**||**Unrestricted**
**Capital**
**Fund**
168,684
260,655
131,127
**560,466**
410,933
33,916
4,110
**448,959**
111,507
(185,680)
**(74,173)**
4,644,528
**4,570,355**|**Restricted**
**Endowment**
**Fund**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
5
**5**||**31 August**
**2023**
**£**
**Total**
168,684
260,655
131,127
**560,466**
410,933
33,916
4,110
**448,959**
111,507
(185,680)
**(74,173)**
4,644,533
**4,570,360**||**31 July 2022**
**£**
**Total**
240,957
309,504
124,567|**31 July 2022**
**£**
**Total**
240,957
309,504
124,567|
|---|---|---|---|---|---|---|---|---|
||||||||||
|||||||||**675,028**|
||||
|||||329,084
23,909
3,360|
|||||||||**356,353**|
|||||||||318,675
(308,353)|
|||||||||**10,322**|
|||||||||4,634,211|
|||||||||**4,644,533**|
The notes on pages 16 to 19 form part of these financial statements.
```
- -13
```
## **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **Balance Sheet as at 31st August 2023**
|**Fixed Assets**
Investments
**Current Assets**
Accrued income
Manchester High School for Girls
Cash at bank and in hand
**Total current assets**
**Creditors:**
Amounts falling due within one year
Accruals
Manchester High School for Girls
**Net current assets**
**Net Assets**
**The funds of the Charity**
Unrestricted capital fund
Endowment Fund
Total charity funds|**Notes**
**2**||**31 August 2023**
**£**
3,416,146
6,397
-
1,245,632
1,252,029
(3,750)
(94,065)
(97,815)
1,154,214
4,570,360
4,570,355
5
4,570,360||**31 July 2022**|
|---|---|---|---|---|---|
||||||
**£**
3,406,920|
||||||29,937
33,970
1,176,946|
||||||1,240,853|
||||||(3,240)
-|
||||||(3,240)|
|||||||
||||||1,237,613|
||||||4,644,533|
||||||4,644,528
5|
||||||4,644,533|
Approved on behalf of the Trustees on
Trustees Christopher Saunders OBE, MA, FSI (Chairman)
Alan Clarke FCA
The notes on pages 16 to 19 form part of these financial statements.
```
- -14
```
**THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **Cashflow Statement For the period ended 31[st] August 2023**
|Cash flows used in operating activities
_Net cash provided by operating activities_
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Proceeds from sale of investments
Cost of purchasing investments
**_Net cash provided by investing activities_**
**Change in cash and cash equivalents in the reporting period**
**Cash and cash equivalents at the beginning of the reporting period**
**Cash and cash equivalents at the end of the reporting period**
**Notes on the Cashflow Statement**
**a). Reconciliation of net movement in funds to net cash from**
**operating activities**
Net movements in funds
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Dividends, interest and rents from investments
(Gains)/losses on investments
**Net cash used in operating activities**
**b).Analysis of cash and cash equivalents**
Cash in hand
Total cash and cash equivalents|**Notes**
(a)||**31 August 2023**
**£**
126,146
137,446
1,553,720
(1,748,626)||**31 July 2022**
**£**
154,334
124,567
661,448
(581,394)
204,621
358,955
817,991
1,176,946
10,322
(2,289)
(37,485)
(124,567)
308,353
154,334
1,176,946
1,176,946|
|---|---|---|---|---|---|
||||(57,460)
68,686
1,176,946
1,245,632
(74,173)
57,510
94,575
(137,446)
185,680
126,146
1,245,632
1,245,632|||
|||||||
|||||||
|||||||
|||||||
|||||||
```
- -15
```
## **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **Notes on and forming part of the Financial Statements for the period ended 31st August 2023**
## **1). a) Accounting Policies**
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Trust constitutes to be a public benefit entity as defined by FRS 102.
These financial statements have been prepared for a 13-month period ending 31 August 2023 with the comparative period being prepared for the year ended 31 July 2022.
## **b) Going Concern**
The Trustees believe that the Trust has adequate resources to continue operation for at least twelve months from the date of approval of these financial statements and for the foreseeable future. The accounts are therefore prepared on a going concern basis. The Trustees have also assessed the current economic environment, taking into account investment income, expenditure and potential future financial uncertainty. They have concluded the Trust is well positioned, in the current environment, to continue as a going concern. The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.
## **c) Fund Accounting**
All of the Trust's funds, other than a permanent endowment of £5, are available for the Trustees to use at their discretion.
## **d) Donations and Legacies**
Donations and legacies are recognised as income to the capital fund when received or earlier if, before receipt, there is sufficient evidence to provide the necessary certainty that the donation or legacy will be received and the value of the incoming resources can be measured with sufficient reliability.
Transfers from the School are recognised in the year to which they relate.
Donations for the purposes restricted by the wishes of the donor are taken to Restricted Funds where these wishes are legally binding on the Trustees of the Charitable Trust, except that any amounts required to be retained as capital in accordance with the donor’s wishes are accounted for instead as Endowments- permanent or expendable according to the nature of the restriction.
## **e)**
## **Investment Income**
Dividends are credited to the statement of financial activities when they are receivable.
## **f)**
## **Interest Received**
Interest is credited to the statement of financial activities on an accruals basis.
```
- -16
```
## **THE MANCHESTER HIGH SCHOOL FOR GIRLS**
## **GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **Notes on and forming part of the Financial Statements for the period ended 31st August 2023 (continued)**
## **g)**
## **Allocation of costs**
Whenever possible expenditure is allocated to an activity cost category. Where items of expenditure contribute directly to more than one activity cost, they are apportioned on a reasonable, justifiable, and consistent basis.
Support costs are also, wherever possible, attributed to a single activity but where apportionment is required this is done on a reasonable, justifiable, and consistent basis.
Governance costs comprise the costs of running the Trust, including strategic planning for its future development, external audit, any legal advice for the Trustees, and all the costs of complying with constitutional and statutory requirements, such as the costs of Trustee meetings and of preparing statutory accounts and satisfying public accountability.
## **h) Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits.
## **i)**
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to chargeable purposes.
## **j)**
## **Fixed Asset Investments**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Trust does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
## **k)**
## **Realised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to 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 their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
```
- -17
```
## **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **Notes on and forming part of the Financial Statements for the period ended 31st August 2023**
|**2).**
**Fixed Assets Investments**
Market value at 1st August 2022
Additions
Proceeds from sale of investments
Unrealised (loss)/gain on revaluation
Market value at 31st August 2023
Cost at 31st August 2023||**31 August 2023**
**£**
3,406,920
1,748,626
(1,553,720)
(185,680)
3,416,146
3,301,498||**31 July 2022**
**£**
3,795,327
581,394
(661,448)
(308,353)|
|---|---|---|---|---|
|||||3,406,920|
||||||
|||||2,966,614|
Investments at fair value comprise Fixed Income Bonds £1,014,677 (31 July 2022: £104,278) Equities £1,928,435 (31 July 2022: £2,747,833) Property £161,495 (31 July 2022: £134,590) and Alternatives £311,539 (31 July 2022: 420,219).
Fixed assets investments are stated at market value. The net movement in funds therefore includes an unrealised loss on revaluation of £185,680 (2022: £308,353). This represents losses which have not and may never be realised. No provision has been made for any costs arising on disposal.
Investments are held and managed by Redmayne Bentley LLP in accordance with the investment asset allocation as instructed by the Trustees. This allocation is reviewed and agreed by the Trustees at their biannual committee meetings.
All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
The significance of financial instruments to the ongoing financial sustainability of the Trust is considered in the financial review and investment policy and performance sections of the Trustees’ Annual Report.
|**3).**|**Other Costs**
Audit||**31 August**
**2023**
4,110||**31 July**
**2022**|
|---|---|---|---|---|---|
|||||||
||||||3,360|
No Trustees received any remuneration or expenses during the period.
```
- -18
```
## **THE MANCHESTER HIGH SCHOOL FOR GIRLS GENERAL CHARITABLE TRUST OPERATING AS MHSG BURSARY FUND**
## **Notes on and forming part of the Financial Statements for the period ended 31st August 2023 (continued)**
## **4). Related Party Transactions**
During the period under review the following transactions took place between The Manchester High School for Girls General Charitable Trust and Manchester High School for Girls (RCN 1164323), which is a connected charity.
The Trust awarded £410,933 (Year ended 31 July 2022: £329,084) by way of a bursary grant during the period to Manchester High School for Girls.
A transfer of £260,655 (Year ended 31 July 2022: £309,504), was received from the Manchester High School for Girls.
At the period end the Trust owed Manchester High School for Girls £94,065 (31 July 2022: £33,970) owed to the Trust).
```
- -19
```