**CHARITY NUMBER: 526031** **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED** **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS** **YEAR ENDED 31 DECEMBER 2023** **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED** ## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** **CONTENTS Page** Report of the Board of Trustees 1 - 4 Independent Examiner’s Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements 8 – 11 **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023** The Council of the Old Birkonian Society, on behalf of the Trustees for the Birkenhead School Endowment Fund in connection with the Birkenhead School Limited, whose working name is The Birkenhead School Endowment Fund, presents its report and the financial statements for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Fund’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **Objectives and Activities for the public benefit** The Fund was set up by its governing trust deed dated 21 November 1928 as an unincorporated charitable body. Day to day management of the Fund is devolved to the Council of the Old Birkonian Society. The trustees, through the Council, have the power to spend or retain both capital and income and so the fund is classed as expendable endowment. The purposes of the Fund are set out in detail in the Trust Deed, but can be summarised as the advancement of education at Birkenhead School for such purposes as the Council of the Old Birkonian Society shall think fit, but principally through the making of grants to Birkenhead School. The Council confirms that it has referred to the Charity Commission’s guidance on public benefit when reviewing the Fund’s aims and objectives, in planning future activities, and setting the grant making policy for the year. - The Fund furthers its charitable purposes for the public benefit through its grant-making policy which aims at: - Financing scholarships and bursaries provided by Birkenhead School in order to assist pupils and potential pupils whose financial circumstances are such that they are unable to meet the fee obligation. - Providing grants to Birkenhead School for specific capital projects that will improve the fabric of the educational establishment. By focusing on these areas, the Fund achieves its strategic priority of maintaining both the continuity of education by Birkenhead School, and also providing the opportunity for those unable to meet the fee obligation to attend and receive the benefit of the education provided by the school. ## **Grant making policy** The Fund has established its grant making policy to achieve its objects for the public benefit. The Fund’s aim is to provide educational opportunities through Birkenhead School, and in particular to those who are unable to meet the fee obligation. The Fund meets on an at least an annual basis with the senior management of Birkenhead School who presents a formal request for assistance, having identified pupils requiring bursary assistance. The request is considered by the Council and the decision on the level of funding to be provided agreed. ## **Achievements, Performance and Financial Review** The benefits of the Fund’s work are the provision of a Birkenhead School education to pupils that would otherwise be unable to attend the school. The Council is pleased that the continuing success of the school is testament to the level of education delivered and that such an education is available to those who would not otherwise be able to take advantage is evidence of the delivery of benefits though the Fund. Page 1 **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)** The Fund’s work is entirely reliant on income and investment returns from its investments which are managed on a total return basis. Whilst investment income performance in 2023 continues to be stable the overall value of the portfolio increased in value by £42,663 – 3% (2022: decrease £128,579 – 8%). Overall, the Fund increased in 2023 by £62,466 to £1,386,594. Investment returns continued to be impeded by volatile markets, especially in light of the post pandemic period and war in Ukraine, and a profit on disposal of investments of £31,627 was realised (2022: £26,215). In 2020, the Fund reinstated the Old Birkonian War Memorial Scholarships, dormant for many years, to provide assistance for those entering at Sixth Form level. Also, The Neil Gracey Memorial Fund, a restricted fund within the Old Birkonian War Memorial and Scholarship Fund, instituted in order to provide fee assistance for a potentially talented student of financially disadvantaged parents, exhausted its funds during 2020. The Trustees of both that fund and this have committed to continue such fee funding for the future, and support of £14,867 was provided in 2023 to enable this. ## **Investment policy and performance** The underlying objective is to achieve a balanced return from both income and capital whilst accepting a moderated degree of risk. Within this overall objective, the Trustees aim to generate an income return so as to maintain the level of grant to Birkenhead School whilst maintaining the real value of capital in order to maintain the viability of the charity for future beneficiaries. The performance of the Fund’s investment portfolio will be measured, broadly, in reference to the WMA Balanced index. ## **Risk management** The Trustees recognise the risks associated with investment in mainstream financial markets and accept this risk in return for the prospect of additional returns over the long term. As such, they wish to remain largely invested at all time, subject to cash reserves held as part of the investment management process to cover known liabilities such as fees. The investments should be well diversified and include a range of assets such as fixed interest stocks, UK shares, overseas shares and alternative investments. In light of the size of the investment portfolio, exposure to these asset classes should be through collective investment funds. The investment management of the fund has been mandated to Rathbone Investment Management on a discretionary basis. ## **Reserves policy** Whilst Council is seeking to rebuild the Fund’s investment funds, following volatile financial markets over the past decade, the overall aim is to maintain so far as is possible the investment fund, distributing income. The balance of unrestricted funds at 31 December 2023 was £1,514,030. ## **Plans for Future Periods** The Council confirms its commitment to provide as much assistance as possible to Birkenhead School in future years. Page 2 **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)** ## **Structure, governance and management** The Fund is a registered charity, number 526031. The Fund was set up by its governing trust deed dated 21 November 1928 as an unincorporated charitable body. Day to day management of the Fund is devolved to the Council of the Old Birkonian Society. New Trustees are appointed periodically. However, the Council of the Old Birkonian Society consists of members who are elected on an annual basis at the Annual General Meeting of the Society. Council meets at least four times per year at which meetings the performance of the fund is considered. Council is assisted by professional investment managers. ## **Key management personnel remuneration** Neither the Trustees nor the members of the Council of the Old Birkonian Society are remunerated. ## **Reference and administrative information** ## **Board of Trustees** Trevor Mathew-Jones William Nute Daniel Ellis **Chair, Old Birkonian Society** Will Roberts ## **Hon Treasurer, Old Birkonian Society** Rob Young ## **Registered Charity Number:** 526031 ## **Principal Address** 30 Bertram Drive, Wirral CH47 0LQ ## **Correspondence Address** c/o Oriel House, Oriel Road, Bootle L20 7EP ## **Solicitors** Brabners Chaffe Street LLP, Horton House, Exchange Flags, Liverpool L2 3YL ## **Bankers** HSBC Plc, 21 Pensby Road, Heswall, Wirral, CH60 7RL ## **Investment Managers** Rathbone Brothers Plc, Port of Liverpool Building, Pier Head, Liverpool L3 1NW CCLA Investment Management Ltd, St Alphage House, 2 Fore Street, London EC2Y 5AQ ## **Independent Examiner** Jean Ellis BA FCA CTA, DSG, Castle Chambers, 43 Castle Street, Liverpool L2 9TL Page 3 **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)** ## **Trustees’ responsibilities in relation to the financial statements** The charity’s 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 charity 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 year. In preparing the financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principle in the applicable Charities 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; and - prepare the financial statements on a going concern basis unless it is inappropriate to assume that the charity will continue in business The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations 2008, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. The charity’s Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Approved by the Council of the Old Birkonian Society, on behalf of the Trustees on 9 October 2024, and signed on its behalf by ## **T Mathew-Jones Trustee** Page 4 ## **Independent Examiner's Report to the Trustees of The Birkenhead School Endowment Fund in connection with The Birkenhead School Limited** I report to the trustees on my examination of the financial statements of the Birkenhead School Endowment Fund (‘the charity’) for the year ended 31 December 2023 . This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed. ## **Responsibilities and basis of report** As the trustees of the charity, you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner’s statement** Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - accounting records were not kept in respect of the charity as required by section 130 of the Act; or - the financial statements do not accord with those records; or - the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. ## **Jean Ellis BA FCA CTA** DSG Chartered Accountants Castle Chambers 43 Castle Street Liverpool L2 9TL 9 October 2024 Page 5 ## **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023** |**Note**
**Income from:**
Investments
Donations
Bank interest received
**Expenditure on:**
_Costs of raising funds_
Investment managers’
fees
3
_Expenditure on charitable_
_activities_
Grants to Birkenhead
School
Neil Gracey Memorial
Grant
Grant to Old Birkonian
War Memorial &
Scholarship Fund
4
_Governance Costs_
5
**Net incoming and net movement in**
**funds before gains on investments**
Net (losses)/gains on investments
8
**Net movement in funds**
Total Funds at 1 January 2023
**Total Funds at 31 December 2023**|**Unrestricted**
**funds**
**Unrestricted**
**funds**
**2023**
**2022**
**£**
**£**
42,023
40,397
2,153
2,747
1,565
123
**45,741**
**43,267**
14,669
15,300
5,608
14,867
-
9,823
14,867
-
1,700
1,500
**36,844**
**41,490**
**8,896**
**1,777**
74,290
(154,848)
**83,186**
**(153,071)**|**Unrestricted**
**funds**
**Unrestricted**
**funds**
**2023**
**2022**
**£**
**£**
42,023
40,397
2,153
2,747
1,565
123
**45,741**
**43,267**
14,669
15,300
5,608
14,867
-
9,823
14,867
-
1,700
1,500
**36,844**
**41,490**
**8,896**
**1,777**
74,290
(154,848)
**83,186**
**(153,071)**| |---|---|---| |||**43,267**| |||15,300| |||9,823
14,867
-| |||1,500| |||**41,490**| |||**1,777**
(154,848)| |||**(153,071)**| ||1,430,844
1,514,030|1,583,915
1,430,844| Page 6 ## **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED BALANCE SHEET AS AT 31 DECEMBER 2023** |**Note**
**Fixed Assets**
Investments
8
**Current Assets**
9
Debtors
Balances at Bank
**Current Liabilities**
Creditors under 1 year
10
**Net current assets**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
Financed by:
**Funds of the Charity**
Unrestricted
General Funds
11
Unrealised investment gains
11
**TOTAL CHARITY FUNDS**|**£**
-
149,844|**2023**
**£**
1,386,594
127,436|**£**
-
131,756|**2022**
**£**
1,324,128
106,716| |---|---|---|---|---| ||149,844
22,408||131,756
25,041|| |||||| |||1,514,030||1,430,844| |||1,225,126
288,904||1,184,603
246,241| |||1,514,030||1,430,844| The financial statements were approved by the Council of the Old Birkonian Society, on behalf of the Trustees, on 9 October 2024 and signed on its behalf by **T Mathew-Jones Trustee** **R J R Young Hon Treasurer** Page 7 **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** ## **1 Accounting Policies** ## **Charity information** The Birkenhead School Endowment Fund is an unincorporated charity governed by its trust deed dated 21 November 1928. The charity’s principal address is 2-8 Oriel Road, Bootle L20 7EP. ## **Basis of preparation and assessment of going concern** The 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 to these accounts. The financial statements have been prepared in accordance with the charity's governing document, 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 (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102. The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations, but which has since been withdrawn. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows. ## **Going concern** The Trustees consider that there are no material uncertainties about the Fund’s ability to continue as a going concern. ## **Fund Structure** The Fund has a single permanent endowment. Endowment funds are unrestricted and comprise accumulated surpluses and deficits on general funds and cumulative realised and unrealised gains on property. They are available for use at the discretion of the Trustees in furtherance of the Fund’s charitable objectives. As in previous years, the financial statements include the Neil Gracey Memorial Fund set up in memory of the passionate and long standing supporter of both Birkenhead School and the Old Birkonian Society. The funds in respect of this Fund are transferred to the Birkenhead School War Memorial Scholarship Fund. ## **Income recognition** All income is recognised once the Fund has an entitlement to the income, it is probable that the income will be received and the amount of income can be measured reliably. Donations are recognised when the Fund has been notified in writing of both the amount and the settlement date. In the event that a donation is subject to conditions that require a level of performance before the Fund is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Fund and it is probable that those conditions will be fulfilled in the reporting period. Page 8 **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)** Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor of the estate has communicated in writing both the amount and settlement date. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by the Fund’s investment advisors of the dividend yield of the investment portfolio. ## **Expenditure recognition** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Fund to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution please refer below. Grants payable are payments made to Birkenhead School in the furtherance of the charitable objects of the Fund. Provisions for grants are made when the intention to make the grant has been communicated to the School. ## **Allocation of support and governance costs** Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to accounts examination and legal fees together with an apportionment of overhead and support costs. No support costs are incurred by the Fund. ## **Charitable activities** Costs of charitable activities include grants made to Birkenhead School and governance costs. ## **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 an disposals throughout the year. The Fund does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the Fund 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. ## **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 sale 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. Page 9 **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)** ## **Contingent liabilities** A contingent liability is identified and disclosed for those grants resulting from: - a possible obligation which will only be confirmed by the occurrence of one or more uncertain future events not wholly within the Trustees’ control; or - a present obligation following a grant offer where settlement is either not considered probable; or - the amount has not been communicated in the grant offer and that amount cannot be reliably estimated. - **2 Related party transactions and trustees’ expenses and remuneration.** - The trustees and members of the Council of the Old Birkonian Society all give freely of their time and expertise without any form of remuneration or other benefit in cash or in kind or of reimbursement of expenses. There were no disclosable related party transactions in the year. ## **3 Investment management costs** - Investment management costs are represented by fees charged by the Fund’s investment advisors. ## **4 Charitable grants** - Grants are represented by bursary support grants to Birkenhead School in accordance with the charitable objectives of the Fund. - **5 Governance costs** - Governance costs are represented by the independent examiner’s costs. - **6 Staff costs and remuneration of key management personnel** - The Fund has no staff and no individual received any remuneration during either 2023 or 2022. ## **7 Independent examiner’s costs** - The independent examiner’s remuneration consisted of an examination fee of £1,700 (2022: £1,500) ## **8 Fixed Asset Investments** |**Movement in fixed asset listed investments:**
**Cost**
Cost at 1 January 2023
Additions
Disposal proceeds
Profit/(Loss) on disposal of investments
Cost at 31 December 2023
Unrealised gains on restatement to market value
**Market value at 31 December 2023**|**2023**
**£**
1,324,128
363,268
(375,093)
31,627
1,343,931
42,663
1,386,594|**2022**
**£**
1,496,400
346,963
(364,439)
(26,215)| |---|---|---| |||1,452,707
(128,578)
1,324,128| Page 10 ## **BIRKENHEAD SCHOOL ENDOWMENT FUND IN CONNECTION WITH THE BIRKENHEAD SCHOOL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (continued)** |**8**
**Fixed Asset Investments**
**Net gains on investments comprise:**
Profit/(loss) on disposal of investments
Movement in unrealised gains for the year
**9**
**Analysis of current assets**
Birkenhead School – Grants in advance
Balances at bank
**10 Analysis of current liabilities - creditors under 1 year**
Old Birkonian Society
War Memorial Prize & Scholarship Fund
Accruals
**11 Funds of the Charity**
**General Funds**
At 1 January 2023
Surplus/(Deficit) for the year
At 31 December 2023
**Unrealised investment gains**
At 1 January 2023
Movement for the year
At 31 December 2023|**2023**
**£**
31,627
42,663
74,290
**2023**
**£**
-
149,844
131,756
**2023**
**£**
14,893
5,815
1,700
22,408
**2023**
**£**
1,184,603
40,523
1,225,126
**2023**
**£**
246,241
42,664
288,904|**2022**
**£**
(26,268)
(128,580)
(154,848)
**2022**
**£**
-
131,756
131,756
**2022**
**£**
17,725
5,815
1,500
25,041
**2022**
**£**
1,209,094
(24,493)
1,184,603
**2022**
**£**
374,821
(128,580)
246,241| |---|---|---| Page 11