Charity No: 517177 THE TRAPNELL FUND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
THE TRAPNELL FUND CONTENTS Page FUND DETAILS TRUSTEES, ANNUAL REPORT REPORT OF THE INDEPENDENT AuDoR TOTHETrUSTEES STATEMENT OF FINANCIAL ACTIVITIES BALANCE SHEET NOTES TO THE ACCOUNTS io SCHEDULE OF INVESTMENTS 15
THE TRAPNELL FUND FUND DETAILS Trustees N Ward M Craven M Shadbolt A N Stephenson Mrs H Trapnell J Whitlock (Chairman) Seuetsry 8 E Clark M Walmsley (resigned 31 August 20231 (appointed l April 20231 Address R05sall School Fleetwood FY7 8JW Audltor MHA Moore and Smalley Chartered Ateountants Richard House Winckley Square Preston PR13HP Investment advlsers Cazenove Fund Management Limited 12 Moor8ate London EC2R 6DA Charlty number 517177 Page I
THE TRAPNELL FUND TRUSTEES'ANNUALREPORT FOR THE YEAR ENDED 31 AUGUST 2023 The Trustees present their annual report and financial ststements for the year ended 31 August 2023. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the chariws 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 IFRS 1021 published in October 2019. Strurturei govemance and management Goveming 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. Govemlng body The trustee5 who have served during the year are set out on page l. The trustee5 meet as required and, in any event, at least once a year. Re¢rultment and appolntment 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. Indurtlon and tralnln8 of trustees New trustees are Biven a copy of the governing document and briefed on the responsibility of charity trustees. Organisational management The trustees determine the trust'5 vision, values. strategy and policies. Day to day management is exercised by the Chairman and Secretary. Rlsk rnanagement 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. Objective5, activitie5 and public benefit Charitable objertives The objectives of the Trust are.. 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. To support or promote the purposes of the Rossall School Endowment Fund. To support or profflote such charitable purp05e5 a5 the trustees may in their ab501ute 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 2023 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 year5 from the creation of the Trust, atcumulate 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-maklng pollcy 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 £68,278. Net unrestrided income funds have increased by £68,393. Reserves poIIcy In accordance with the wishes of the settlor. the endowment funds are maintained at le35t 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 trustee5 on the advice of the Head of Rossall School. The accumulated unrestricted income at 31 August 2023 represents the equivalent of five to six terms, full boarding fee5 for 3 pupil5. Investment strateyi 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 School's Investment Committee meets during the year. The Investment Committee's chairman also confer5 regularly with Cazenove and reports directly to the School's Council at its meetings during the year. The Trapnell Fund's investments. under the management of Cazenove Capital. are invested in the Multi- Asset Fund which is designed for charities looking for real capital growth over the long-term while paying 4% per annual distribution. The Managers consider that Central Banks remain more focused on tackling inflation than supporting growth and the risk of recession remains elevated. They see corporate earnings start to decline in the remainder of the year. Given this environment, Cazenove are happy to remain underweight in equities, with a clear preference for higher-quality companies. Government bond valuation5 now look more attractive and increased exposure is likely over the coming months. with real assets such 35 property, renewable energy and infrastructure having an important role as diversifiers. Safe-haven investments such as gold and the US dollar provide some protection in this challenging environment. Page 3
THE TRAPNELL FUND TRUSTEES, ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Trustees. responsibilities for the accounts 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). 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 IFRS 1021,. 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 accountin8 records that disclose with reasonable accuracy at any time the financial p051tion of the charity and enable them to ensure that the financial statements comply with the Charities Att 2011, the Charity (Accounts Reportsl 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 irre8ularities. In so far as the trustees are aware.. there is no relevant audit information of which the charit$ auditor is unaware; and 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 27 November 2023 and signed on their behalf bv- ?w N Ward - Trustee Page 4
THE TRAPNELL FUND REPORT OF THE INDEPENDENT AuD0ft TOTHETRUSTEES Opinion We have audited the financial statements of the Trapnell Fund for the year ended 31 August 2023 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 Iunited Kingdom Generally Accepted Accounting Practicel- In our opinion the financial statements- give a true and fair view of the state of the charivs affairs as at 31 August 2023 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: and have been prepared in accordance with the requirements of the Charities Act 2011. 8asls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISA5 IUKII 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 audlt evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relatin8 to 80in8 tontern 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 concernfor 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 Boing concern are described in the relevarbt sections of this report. Other information The other information comprises the information included in the trustees, annual report, other than the financial statements and our avditorfs report thereon.The trustees are responsible for the other information contained within the annual 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. Page 5
THE TRAPNELL FUND REPORTOFTHE INDEPENDENT AUDITOR TOTHE TRUSTEES ICONTINUEDJ 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 course of the audit or otherwise appear5 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. 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 IActounts 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 tru5tee5' report,. or the charity has not kept adequate accountin8 records; or the financial statements are not in agreement with the accounting records and returns,. or we have not received all the infomiation and explanations we require for our audit. ResponslbllStles of trustees As explained more fully in the trustees. responsibilities statement. the trustees are responsible for the preparation of financial statements which 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 Boing 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 realistit alternative but to do so. Auditorfs responsibilities for the audit of the financial staternents 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 as5urante is a high level of assurance, but 15 not a guarantee that an audit conducted in accordante with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the 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 REPORTOFTHE INDEPENDENT AUDITOR TOTHE TRUSTEES ICONTINUEDJ 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 irregLJlarities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud. is detailed below= Enquiries with management and those charged with governance about any known or suspected instances of non-compliance with laws and regulations,. Enquiries with management and those charged with governance about any known or suspected instances of fraud,. and Examination of journal entries and other adjustments to test for appropriateness and identify any instances of rnanagement override of control5. Because of the field in which the client operates we identified that compliance with the Charities Act is the area most likely to have a material impact on the financial statements. Because of the inherent limitations of an audit, there 15 a risk that we will not detect all irregularities, including those leading to è material misstatement in the financial statements or non-compliance with regulation. This risk increèses the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment. forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements 15 located on the Financial Reportin8 Council's website at: www.frc.or8.uVauditorsresponsibilities. Thi5 destription forms part of our auditor's report. Use of our report This report is made solely to the charitvs trustees, as a body, in accordance with Part 4 of the Charities IAccounts 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 chariws trustees as a body. for our audit work. for this report, or for the opinions we have formed. MHA MHA Moore and Smalley Chartered Accountants & Statutory Audltor Richard House Winckley Square Preston PRI 3HP Date.. 2811112023 MHA Moore and Srnalley 15 eligible to act a5 an audwtor in term5 of section 1212 of the Companies Act 2006. Page 7
THE TRAPNELL FUND STATEMENT OF FINANCIAL ACtIVlTIES FOR THE YEAR ENDED 31 AUGUST 2023 Unrestrirted income fund Endowmentfunds Funding Capital attount Account Notes Total 2023 Total 2022 Incorne from Investments: Dividends Interest on stockbrokerfs account Interest on loan to School 136,268 6,365 136,268 6,365 113,989 685 744 744 5,605 Total income 143,377 143,377 120,279 Expendlture on Charitable activities 74.984 74.984 105,357 Total expendlture 74.984 74.984 105,357 Net Income / lexpendlture) before other retognised gains and losses 68,393 68,393 14,922 Gains / Ilosse51 on quoted investments 1197,4001 1197,41XII 1122,1271 Net Income I lexpendlture) 68,393 1197,4001 1129,0071 1107,2051 Other reco8nlsed 8alns and losses Loan indexation 6,707 6,707 67,564 Net movement in funds 68,393 (190,6931 1122,3001 139,6411 Funds brought forward 163,005 1,400,000 2,088,234 3,651,239 3,690,880 Funds carrled forward 231,398 1,400.000 1,897,541 3,528,939 3,651,239 The fund has no acquired or discontinued activities and all reeognised gains and losses are shown above. The comparative statement of financial artivities can be found in note 10 to the accounts. Page 8
THE TRAPNELL FUND BALANCE SHEEr AS AT 31 AUGUST 2023 2023 2022 Note Fixed assets Quoted investments Other investments 3,061,342 208,744 2,988,216 208,744 3,270,086 3,196,960 Current assets Debtors Cash held by stock broker 6,315 253,454 23,930 431,244 259,769 455,174 Current Ilabllltles Creditor5 (916) 18951 Net current asset5 258,853 454,279 Net assets 3,528.939 3,651,239 Funds Endowment- Funding account Endowment- Capital account Unrestricted income 1,400,000 1,897,541 231.398 1,400,000 2,088,234 163,005 3.528,939 3,651,239 The accounts were approved by the Trustees on 27 November 2023 N Ward - Trustee Page 9
THE TRAPNELL FUND NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 Accounting Policies Basls of preparatlon The accounts (financial statements) have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applitable 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 IFRS 1021, the Charities Act 2011 and UK Generally Accepted Accounting Practice. The financial statements have been prepared to Bive a 'true and fairf view and have departed from the Charities IAccounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view,. This departure has involved following Accounting and Reporting by Charities.. Statement of Recommended Practice applitable to tharities 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 l April 2005 which has since been withdrawn. The charity constitutes a public benefrt 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 notelsl 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. Golng 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 tontern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the fir)ancial statements. The Trustees consider forecasted income and expenditure and are satisfied that the level of reserves is sufficient 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 there are no material uncertainties about the charitrfs ability to continue as a 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 within the Trustees. Annual Report. Page 10
THE TRAPNELL FUND NOTESTOTHE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31AUGUST2023 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. Unreali5ed 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 tan be measured reliably. All income was unrestricted in the current and previous year. Expendlture Expenditure 15 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. Analysls of expendlture on Charltsble Artl¥ltles 2023 2022 Educational Purposes of Rossall School Due to R055all School (see note 81 Governance costs Ihonorarium - Secretary) Investment Management Fees 68.278 750 5,956 99.474 375 5,508 74,984 105,357 Page 11
THE TRAPNELL FUND NOTESTOTHE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Quoted investments 2023 2022 Market value at I September 2022 Additions during the year Disposals during the year Realised and unrealised investment11055es1 / gain5 Market value at 31 August 2023 2,988.216 2,826.045 303.220 311,510 132,6941 127,2121 197,400 122,127 2,988,216 3,061,342 Cost at 31 August 2023 3,049,501 2,788,615 Other Investments- Loan5 to Rossall School 2023 2022 Balance b/fwd Advance in year Repayment in year Indexation 208,744 611,659 16,7071 1470,4791 6,707 67,564 Balance c/hvd 208,744 208,744 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 15 unsecured and bears interest on the indexed capital sum at a rate of l%12022.. 1%). Debtors 2023 2022 Amounts due from Rossall School Amounts due from the jackson Fund 4,515 1,800 6,315 22,130 1,800 23.930 Page 12
THE TRAPNELL FUND NOTESTOTHE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUS[ 2023 Creditors- amounts falling due within one year 2023 2022 Amounts due to Rossall School Accru315 916 916 895 895 Analysis of net assets by fund- current year Unrestrirted Income Endowment funds Funding Capital Total Quoted investments Other investments Oebtor5 Cash held by stockbroker Creditors 1,163,801 208,744 1,897,541 3,061,342 208,744 6,315 253,454 19161 6.315 225,999 19161 27,455 231,398 1,400,0(X) 1,897,541 3,528,939 Analysls of net assets by fund- prevlous year Unrestricted Income Endowment fund5 Fundlng Capltal Total Quoted investments Other investments Debtors Cash held by stockbroker Creditors 899,982 208,744 2,088,234 2,988,216 208,744 23,930 431,244 18951 23,930 139.970 18951 291,274 163,005 1,400.000 2,088,234 3,651,239 Grants, awards and prize5 2023 2022 Grants, awards and prizes included in charitable activities comprised: Scholarships, grants etc net of parents. contributions 68.278 99,474 The above educational awards were made to three pupils at Rossall School12022.. four) 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 NOTESTOTHE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 io Statement of finantial actl¥itles- prevlous year Unrestricted Income fund Endowmentfunds Fundlng Capltal account Account Notes Total 2022 Total 2021 Income from Investment5: Dividends Interest on stockbrokerfs account Interest on loan to School 113,989 685 113,989 685 106,189 5.605 5.605 7,644 Total income 120,279 120,279 113,842 Expendlture on Charitable activitie5 105,357 105,357 104,374 Total expendlture 105,357 105.357 104,374 Net income / lexpenditure) before other reco8nlsed 8alns and1055es 14,922 14,922 9,468 Gains I Ilossesl on quoted investments 1122,1271 1122,1271 274,186 Net Income I lexpendlture) 14.922 (122.1271 1107.2051 283,654 Other recogni5ed gains and losses Loan indexation 67,564 67,564 18,761 Net movement in funds 14,922 154,563) 139,641) 302,415 Funds brought forward 148,083 1,41X),000 2,142,797 3,690,880 3,388,465 Funds carried forward 163.005 1.4th).1 2.088.234 3,651.239 3,690,880 Page 14
THE TRAPNELL FUND SCHEDULE OF INVESTMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Market value at 31 August 2023 Cost at 31 August 2023 Units held Quoted investments 5,669,151.00 Schroder Charity Multi-Asset Fund 3 061.342 3 049.501 3,061,342 3,049,501 Page 15