2020-08-31-accounts

The Trapnell Fund Financial Statements For the year ended 31 August 2020

THE TRAPNELL FUND

CONTENTS

	Page
FUND DETAILS	1
TRUSTEES' ANNUAL REPORT	2
REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES	5
STATEMENT OF FINANCIAL ACTIVITIES	8
BALANCE SHEET	9
NOTES TO THE ACCOUNTS	10
SCHEDULE OF INVESTMENTS	16

THE TRAPNELL FUND

FUND DETAILS

Trustees	J Whitlock	(Chairman)
	M Craven
	Mrs S Richardson	(resigned 26 November 2019)
	M Shadbolt
	A N Stephenson
	Mrs H Trapnell
	N Ward	(appointed 26 November 2019)
Secretary	B E Clark
Address	Rossall School
	Fleetwood
	FY7 8JW
Auditor	MHA Moore and Smalley
	Chartered Accountants
	Richard House
	Winckley Square
	Preston
	PR1 3HP
Investment advisers	Cazenove Fund Management Limited
	12 Moorgate
	London
	EC2R 6DA
Charity number	517177

Page 1

THE TRAPNELL FUND

TRUSTEES

FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees present their annual report and financial statements for the year ended 31 August 2020. The financial statements have been prepared in accordance with the accounting policies set out in notes to the t 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 (FRS 102) published in October 2019.

Structure, governance and management

Governing document

The trust was founded on 30 November 1985 by a gift from R L Trapnell and is governed under the terms of a Charitable Trust Deed.

Governing body

The trustees who have served during the year are set out on page 1. The trustees meet as required and, in any event, at least once a year.

Recruitment and appointment of trustees

New trustees are appointed by the existing trustees as and when vacancies arise and having regard to the skills and expertise of the individuals.

Induction and training of trustees

New trustees are given a copy of the governing document and briefed on the responsibility of charity trustees.

Organisational management

The trustees determine the trust's vision, values, strategy and policies. Day to day management is exercised by the Chairman and Secretary.

Risk management

Other than investment risk, which is dealt with below, the major risk is that the cost of scholarship exceeds available income. The risk is managed by the trustees when considering the appointment of new scholars.

Objectives, activities and public benefit

Charitable objects

The objects of the Trust are:

• 1 To support or promote the advancement of education by the provision of bursaries and scholarships at Rossall School and by the provision of grants and scholarships to persons leaving Rossall School for full-time education at any university, college, school or other educational establishment.

• 2 To support or promote the purposes of the Rossall School Endowment Fund.

• 3 To support or promote such charitable purposes as the trustees may in their absolute discretion determine after taking into account the settler's wish that if Rossall School ceased to operate or if it is nationalised or if any other reason the payment of school fees becomes unnecessary the trustees

Page 2

THE TRAPNELL FUND

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

shall transfer the Trust Fund equally between the National Trust, Kings College Cambridge and the Woodland Trust.

The trustees may, within a period of 21 years from the creation of the Trust, accumulate the whole or any part of the income and shall hold such accumulation as an accretion to the capital of the Trust Fund.

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives, and in planning future activities and setting up the grant making policy for the year.

Grant-making policy

Scholarships are awarded by the trustees on the basis of recommendations by the Head of Rossall School.

Financial review and results for the year

During the year the fund paid school fees of £115,185. Net unrestricted income funds have reduced by £6,617.

Reserves policy

In accordance with the wishes of the settlor, the endowment funds are maintained at least in line with inflation so that there is sufficient income to pay the full fees and extras of the scholars. Scholarships are awarded by the trustees on the advice of the Head of Rossall School.

The accumulated unrestricted income at 31 August 2020 represents the equivalent of four to five terms boarding fees for 3 pupils.

Investment strategy and performance

The objective of the fund is preservation and growth of capital and achievement of income. Within this context, a spread of investments is made. In this way, it is hoped to achieve the necessary balance to ensure the objectives of the fund are achieved.

The School Trust Funds are held under management by Cazenove Capital Investment Ltd with whom the etings during the year.

The School funds are deemed by the investment manager, Cazenove Capital, to be appropriate given its objectives of real capital growth and a 4% dividend distribution. Within the portfolios a cash position is maintained which provides some extra protection against any negative fund movements.

12.7% fall in the FTSE and a 6% positive gain by the MSCI World Index. Gilts over this period recorded a 2.4% return. The managers have continued to reduce the equity exposure and transition towards a more global approach. This has served well in recent months given the underperformance of the U.K. equity market. A defensive arm of the portfolios has been an allocation in gold.

With the US elections, Brexit and Covid-19 issues ongoing, the market outlook ahead is somewhat cloudy. However given there are signs of economic recovery and support from central banks, this should act as a tailwind for global markets.

Page 3

THE TRAPNELL FUND

TRUSTEES' ANNUAL REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

responsibilities for the accounts

The trustees are respons Report and the 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 & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP 2019 (FRS 102);

• make judgments and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts Reports) Regulations 2008 and trust deed. They 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.

In so far as the trustees are aware:

• there is no relevant audit informatio

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Approved by the trustee on 23 November 2020 and signed on their behalf by:

J Whitlock - Trustee

Page 4

THE TRAPNELL FUND

REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES

Opinion

We have audited the financial statements of the Trapnell Fund for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet and the 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:

• 2020 and of its incoming

• resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• have been prepared in accordance with 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 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Trustees have not disclosed in the financial statements any identified material uncertainties that pt the going concern basis of

• accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The Trustees are responsible for the other information. The other information comprises the information 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.

Page 5

THE TRAPNELL FUND

REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES (CONTINUED)

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:

• the information given in the financial statements is inconsistent in any material respect with the

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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.

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 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 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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.

Page 6

THE TRAPNELL FUND

REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES (CONTINUED)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Counci t: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

(Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

MHA Moore and Smalley Statutory Auditor Richard House Winckley Square Preston PR1 3HP

30/11/2020 Date :

MHA Moore and Smalley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 7

THE TRAPNELL FUND

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2020

		Unrestricted	Endowment funds	Endowment funds
	Notes	income	Funding	Capital	Total	Total
		fund	account	Account	2020	2019
		£	£	£	£	£
Income from
Investments:
Dividends		105,320	-	-	105,320	101,947
		602	-	-	602	1,026
account
Interest on loan to School		7,644	-	-	7,644	7,644
Total income		113,566	-	-	113,566	110,617
Expenditure on
Charitable activities	2	120,183	-	-	120,183	113,524
Total expenditure		120,183	-	-	120,183	113,524
Net income / (expenditure)		(6,617)	-	-	(6,617)	(2,907)
before other recognised gains
and losses
Gains / (losses) on quoted		-	-	(22,576)	(22,576)	(55,496)
investments
Net income / (expenditure)		(6,617)	-	(22,576)	(29,193)	(58,403)
Other recognised gains and
losses
Loan indexation		-	-	4,186	4,186	18,154
Net movement in funds		(6,617)	-	(18,390)	(25,007)	(40,249)
Funds brought forward		145,232	1,400,000	1,868,240	3,413,472	3,453,721
Funds carried forward		138,615	1,400,000	1,849,850	3,388,465	3,413,472

The fund has no acquired or discontinued activities and all recognised gains and losses are shown above.

The comparative statement of financial activities can be found in note 10 to the accounts.

Page 8

THE TRAPNELL FUND

BALANCE SHEET

AS AT 31 AUGUST 2020

Note Fixed assets Quoted investments 3 Other investments 4 Current assets Debtors 5 Cash held by stock broker Current liabilities Creditors 6 Net current assets Net assets 7 Funds Endowment Funding account Endowment Capital account Unrestricted income	£ 7,868 141,690	2020 £ 2,476,200 764,574	£ 35,325 180,637	2019 £ 2,453,841 764,574
		3,388,465		3,413,472
		1,400,000 1,849,850 138,615 3,388,465		1,400,000 1,868,240 145,232 3,413,472

The accounts were approved by the Trustees on 23 November 2020

J Whitlock - Trustee

Page 9

THE TRAPNELL FUND

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting Policies

Basis of preparation

The accounts (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 UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The fin olved following 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are prepared on a going concern basis under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts, and are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements. The trustees expect that Covid-19 will have some impact, though not significant, in relation to expected future performance, or on future asset valuations. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. The Trustees have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and

going concern. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Funds structure

Details of the funds can be found wi

Page 10

THE TRAPNELL FUND

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (continued)

Investments

Investments are initially recognised at their transaction value and subsequently measured at their market 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.

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.

Income

All incoming resources are included in the SOFA once the Trust has entitlement to the income, there is sufficient certainty or receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably. All income was unrestricted in the current and previous year.

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 measured reliably. Expenditure has been classified under headings that aggregate all costs related to the category. All expenditure was unrestricted in the current and previous year.

2 Analysis of expenditure on Charitable Activities

Educational Purposes of Rossall School Due to Rossall School (see note 8) Governance costs (honorarium - Secretary) Investment Management Fees	2020 2019 £ £ 115,185 108,467 375 375 4,623 4,682 120,183 113,524

Page 11

THE TRAPNELL FUND

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

3 Quoted investments

Market value at 1 September 2019 Additions during the year Disposals during the year Realised and unrealised investment (losses) / gains Market value at 31 August 2020 Cost at 31 August 2020 Other investments - Loans to Rossall School Balance b/fwd Advance in year Repayment in year Indexation Balance c/fwd		2020 2019 £ £ 2,453,841 2,473,113 44,935 59,125 - (22,901) (22,576) (55,496)
		2,476,200 2,453,841
		2,415,413 2,370,478
		2020 2019 £ £ 764,574 764,574 - - (4,186) (18,154) 4,186 18,154
		764,574 764,574

4 Other investments - Loans to Rossall School

The capital sum is index linked and was repayable over ten years with the final repayment in 2021. This was then extended such that the final repayment is now due in 2024. The loan is unsecured and bears interest on the indexed capital sum at a rate of 1% (2019: 1%).

5 Debtors

Amounts due from Rossall School Amounts due from the Jackson Fund	2020 2019 £ £ 6,068 - 1,800 35,325 7,868 35,325

Page 12

THE TRAPNELL FUND

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

• 6 Creditors amounts falling due within one year

Amounts due to Rossall School Accruals	2020 2019 £ £ - 18,948 1,867 1,957 1,867 20,905

7 Analysis of net assets by fund current year

Quoted investments Other investments Debtors Cash held by stockbroker Creditors	Unrestricted Endowment funds Income Funding Capital Total £ £ £ £ - 626,350 1,849,850 2,476,200 - 764,574 - 764,574 7,868 - - 7,868 132,614 9,076 - 141,690 (1,867) - - (1,867) 138,615 1,400,000 1,849,850 3,388,465

Analysis of net assets by fund previous year

Quoted investments Other investments Debtors Cash held by stockbroker Creditors	Unrestricted Endowment funds Income Funding Capital Total £ £ £ £ - 585,601 1,868,240 2,453,841 - 764,574 - 764,574 35,325 - - 35,325 130,812 49,825 - 180,637 (20,905) - - (20,905) 145,232 1,400,000 1,868,240 3,413,472

8 Grants, awards and prizes

Grants, awards and prizes
	2020	2019
Grants, awards and prizes included in charitable activities comprised:	£	£
Scholarships, grants etc net of parents' contributions	115,185	108,467

The above educational awards were made to seven pupils at Rossall School (2019: seven)

9 Trustees

The trustees give their time voluntarily and they receive no remuneration, benefits or expenses from the fund. All audit and accountancy fees are paid by the Corporation of Rossall School.

Page 13

THE TRAPNELL FUND

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

10 Statement of financial activities previous year

		Unrestricted	Endowment funds	Endowment funds
	Notes	income	Funding	Capital	Total	Total
		fund	account	Account	2019	2018
		£	£	£	£	£
Income from
Investments:
Dividends		101,947	-	-	101,947	91,066
		1,026	-	-	1,026	359
account
Interest on loan to School		7,644	-	-	7,644	11,174
Total income		110,617	-	-	110,617	102,599
Expenditure on
Charitable activities	2	113,524	-	-	113,524	108,869
Total expenditure		113,524	-	-	113,524	108,869
Net expenditure before other		(2,907)	-	-	(2,907)	(6,270)
recognised gains and losses
Gains / (losses) on quoted		-	-	(55,496)	(55,496)	19,542
investments
Net income / (expenditure)		(2,907)	-	(55,496)	(58,403)	13,272
Other recognised gains and
losses
Loan indexation		-	-	18,154	18,154	25,439
Net movement in funds		(2,907)	-	(37,342)	(40,249)	38,711
Funds brought forward		148,139	1,400,000	1,905,582	3,453,721	3,415,010
Funds carried forward		145,232	1,400,000	1,868,240	3,413,472	3,453,721

Page 14

THE TRAPNELL FUND

SCHEDULE OF INVESTMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

Units held Quoted investments 4,548,493.90 Schroder Charity Multi-Asset Fund	Market value at Cost at 31 August 31 August 2020 2020 £ £ 2,476,200 2,415,413 2,476,200 2,415,413

Page 15

Kendi, KwktyLlThd￿C, LwL¥lw.Lr*p¢e4 IN PEOPLE nwrear￿rnaI￿cQ.uk .MWreW$rn￿