OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST

and other related charities

TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 Charity Commission No: 528066

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

CONTENTS
Trustees’ report for year ended 31 March 2022
Independent auditor’s report to the Trustees of the University of Newcastle upon Tyne Development Trust
and other Related Charities
Statement of financial activities for the year ended 31 March 2022
Balance sheet as at 31 March 2022
Cash flow statement for the year ended 31 March 2022
Notes to the accounts		 PAGE
3-15
16-19
20
21
22
23-38

2

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their report along with the audited accounts of the Trust for the year ended 31 March 2022.

REFERENCE AND ADMINISTRATIVE INFORMATION

Status The University of Newcastle upon Tyne Development Trust is a Charity registered with the Charity Commission (No. 528066)

Address Finance & Planning Newcastle University King’s Gate Newcastle upon Tyne NE1 7RU

Trustees

The Trustees of the Charity in office at the date of the approval of the financial statements were:

Mrs HA Parker (Chair) Professor D Burn* Mr W Connolly * Professor CP Day (Vice Chancellor) Dr VA Hammond Mrs VS Johnston * Mr DG Jennings (Honorary Treasurer) Mr N Swales

Trust Manager Ms FJ Watson

3

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

REFERENCE AND ADMINISTRATIVE INFORMATION (continued)

Independent Auditors Azets Audit Services Bulman House Regent Centre Gosforth Newcastle upon Tyne NE3 3LS

Solicitors

Wrigleys Rotterdam House 116 Quayside Newcastle upon Tyne NE1 3DY

Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

Investment Aon Investments Limited Investment The Bank of New York Mellon Managers The Aon Centre Custodians One Canada Square The Leadenhall Building London 122 Leadenhall Street E14 5AL London, EC3V 4AN

4

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Trust was established for the benefit of the University of Newcastle upon Tyne and is governed by a Deed dated 10 May 1972.

Appointment of Trustees

The Trust Deed allows for a minimum of six and a maximum of twelve Trustees. The Trustees, who were in post at 31 March 2022 and at the date of this report are set out on page 3. Dr VA Hammond was appointed as a Trustee on 1 May 2021. The Vice-Chancellor of the University is an ex-officio Trustee. The Council of the University appoints up to four of the total number of Trustees, excluding the Vice-Chancellor, and at the date of this report three of these posts were filled. The remaining non ex-officio Trustees are recruited from individuals recommended by the existing Trustees. No Trustees, whether ex-officio or non-ex-officio, receive benefits from the Trust in their capacity as Trustees other than occasional out of pocket expenses. Under the Trust Deed, Trustees may serve two consecutive three-year terms of office. They can be nominated to serve further terms but only after one year has elapsed from the date of the termination of their previous appointment. Mrs HA Parker, Prof D Burn, Mr W Connolly and Mrs VS Johnston are currently serving their second consecutive term of office. In the period, following legal advice, it was agreed by Trustees Resolution, to extend the term of Mrs HA Parker as Chair of the Trust past May 2022. This was agreed on the basis that the relationship between the Development Trust and the University is at a critical point. The relationship between the two organisations has changed dramatically and the University are about to launch the Campaign for Newcastle. The Development Trust will play an integral role in the Campaign, and the Chair has been involved with the planning for the Campaign, including being invited to sit on the Campaign Advisory Circle.

Trustee induction and training

On appointment, new Trustees receive an induction pack and are offered the opportunity to attend relevant courses. The induction pack contains, inter alia, copies of: the Trust Deed, the Trustee Act 2000 Policy Statement, the Trust Risk Register, the last two sets of the Trustees’ Report and Accounts, minutes of recent Trustee meetings and Sub-Committee meetings, and the Charity Commission booklet “The Essential Trustee”. During their term of office Trustees are encouraged to attend courses and conferences appropriate to their roles.

Organisational structure and decision making

Trustees’ Meetings are held twice each year and at such other times as the administrative requirements of the Trust dictate. An Investment SubCommittee holds meetings at least twice each year with the Investment Manager and there were four meetings during the year ended 31 March 2022. The Sub-Committee is chaired by the Honorary Treasurer (Mr DG Jennings). Mrs HA Parker and Mr N Swales are also Trustee members. The meetings are attended by the Trust Manager and the University Executive Director of Finance. The Sub-Committee reports to the full Board of Trustees twice each year. The Trustees form additional sub-committees in cases where the administration of endowments warrants them and such committees all report to the full Board of Trustees.

5

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

Organisational structure and decision making (continued)

There are currently sub-committees involved in the administration of the WE Harker Foundation, the Randerson Foundation and the Robinson Library and Marjorie Robinson Bequest Funds. The award of studentships from the Harker and Randerson Foundations is carried out by the University Faculty of Medical Sciences Post Graduate Research Committee and Ms FJ Watson attended their meeting in February 2022 to represent the Trust. The Robinson

Library/Marjorie Robinson Bequest Sub-Committee was chaired by Mrs HA Parker and then Dr VA Hammond (from 1 May 2021) during the year, with Mr DG Jennings also a Trustee member. Ms FJ Watson is the Trust Manager. The Trust Manager is employed on a part-time basis, by way of a Secondment from Newcastle University. The Trust’s accounts are prepared by the University’s Finance Office and the Trust Manager.

Related party

The Trust is a registered charity, independent of the University. The Trust holds funds received from donors for the benefit of the University, but only distributes these funds to the University after checking compliance with the donors’ wishes.

Risk Management

The Trustees have considered the major risks to which the Trust is exposed and have reviewed those risks and established systems and procedures to manage those risks.

The Trustees consider poor performance and variability of investment returns on the endowments to constitute the Trust’s primary financial risk, compared to our target long term real rate of return of 4.5% p.a. The extreme volatility in world stock markets in recent years, and particularly through 2021 and into 2022, has demonstrated this risk. In March 2021 the Trustees agreed to take action to change its fund management arrangements in order to enhance its investment in funds demonstrating Environmental, Social and Governance credentials; whilst mitigating its exposure to the equities market by investing in two alternative diversifier strategies. Aon proposed two replacement funds and a change in the Asset Allocation target, with a recommendation that 70% of funds be held in the new Global Impact Equities Fund (+/-5%) and 30% be held in two Diversified return funds. This revised asset allocation was approved by NUDT Trustees in March 2021. The necessary actions to make this change happened on 31[st] March 2021, and into early April 2021, with investment in a new Global Impact Equities Fund, and two Diversifier Funds to provide a degree of protection to the Trust in times of equity volatility. The funds continue to be managed by Aon Solutions UK Limited (formerly HRMSL and Aon Investment Limited) during the year of account, with scrutiny and oversight of their performance being undertaken by the Investment Sub-Committee in May 2021, November 2021, and May 2022.

In addition, the endowments are managed on a total return basis, as explained in the section headed ‘Financial Review: Investment Policy and Objectives’. The Trustees consider the use of the total return approach stabilises the resources available for making grants to the University.

The Trustees considered the main operational risk during this period to be associated with the retirement of the University’s Director of Finance. To manage

6

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

Organisational structure and decision making (continued)

this risk the Chair, Treasurer and Trust Manager met with the outgoing and incoming Directors of Finance as part of their handover and have continued to meet with the new Director of Finance on a regular basis. This risk is expected to be removed from the register early in the 2022/2023 year. The Trustees review these risks and other subsidiary risks identified in the Risk Register on an ongoing basis and satisfy themselves that adequate systems and procedures are in place.

OBJECTIVES AND ACTIVITIES

Public Benefit

Following the introduction of provisions regarding public benefit in the Charities Act 2011, the Trustees have reviewed the objectives and activities of the Trust in the context of the published guidance on public benefit produced by the Charity Commission. The Trustees consider that the objectives and activities of the Trust comply with this guidance and that, specifically, they support the University in the advancement of education and medical research for the public benefit.

Objects

The Trust was established to raise, receive and administer funds for the benefit of the University. The objects of the Trust remain as defined in the original Trust Deed: “such purposes as are exclusively charitable according to the Law of England and Wales and are deemed to further the work of the University.” The role of fundraising was assigned to the University Development and Alumni Relations Council on its creation in 2003. With the growth of the University Development Office, now called the Advancement Office, and the dissolution of the Development and Alumni Relations Council, fundraising is now led by the Advancement Team. As provided in the Trust Deed, all funds are held solely for the benefit of the University. Grants are not made to any other individuals, organisations or charities.

Aims

The long term aims of the Trust are:

7

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

Main objectives for the period

The Trust’s main objectives for the year ended 31 March 2022 were as follows:

Strategy to deliver objectives

ACHIEVEMENTS AND PERFORMANCE

Versus long term aims

8

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

Versus long term aims (continued)

ACHIEVEMENTS AND PERFORMANCE

“My lack of a quality personal computer has also impacted my university work thus far, as I've only been able to sufficiently complete my work on site - something that isn't practical in the later hours of the day in which I often have a want to complete work or further my knowledge in relation to my field of study. This award will allow me to invest in a personal computer, effectively increasing the hours that I'm able to work and allowing for further flexibility in when and how I work, further contributing to a healthier work-life balance for myself. For this, I'm incredibly grateful.” Bursary recipient, studying Computer Science

“This bursary will allow me to complete my studies as well as give me a great deal of financial security and the peace of mind that comes with it. As my family cannot always support me financially, money at university has always been one of my biggest stressors, so I truly cannot put into words how much this bursary will mean to me, and how much it will improve my mental health.” Bursary recipient, studying Public Health

9

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

FINANCIAL REVIEW

Introduction and Principal Funding Sources

As background, all the funds held by the Trust are applied for specific purposes in connection with the University’s work. Accordingly, it is the Trustees’ aim to invest these funds to maximise the total return (capital and income) from the funds, in accordance with prudent investment principles. This maximises the payments that can be made to the University whilst aiming to preserve the real value of the funds. Thus, the principal funding sources for the Trust are investment income and realised and unrealised gains and losses on investments. During the year there was no direct investment income received in respect of funds held with the Aon AIL Adept Funds, as income from these funds is accumulated, however £19,000 of direct investment income was received in respect to the funds held on the Flagstone Deposit Platform during the year.

In addition, the Trust receives donations and gifts which are designated for particular University purposes. As previously indicated, however, the Trust is not engaged in fundraising and so has no direct control over the level of donations and gifts received. Legacies received in the year were as follows:

Nature of the funds held

All but one of the funds have been given by donors for specific “ring-fenced” purposes and are typically utilised to support the salary costs of individual posts such as Chairs and Lectureships and also to support student-related scholarships and awards in various academic Schools within the University. The largest Fund, the Marjorie Robinson Bequest, was given for the benefit of the Library. Funds have usually been received in response to specific appeals, or in the form of bequests for the benefit of particular aspects of the University’s teaching or research.

There were 106 Funds held at 31 March 2022 which were categorised as follows:

Permanent Endowment
Expendable Endowment
Restricted Income WITH Endowment
Restricted Income NO Endowment
Unrestricted		 24
48
31
2
1
106

10

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

Nature of the funds held (continued)

It can be seen that, similar to the Endowments, all but one of the Income Funds are Restricted, i.e. donors have given directions as to how the monies are to be spent. In the case of Restricted Income Funds which are linked to Endowments the Trustees do not seek to hold reserves but rather to hold income in a designated fund until detailed spending proposals have been received in order to be sure that expenditure fully complies with the terms of the Endowment.

In the case of Restricted Income Funds which are not linked to an Endowment 2022: £0.018m (2021: £0.038m), monies have been received for expenditure over the short-term so have not been invested within the Trust’s Endowment portfolio. The Trustees keep all Funds under review, receiving detailed reports twice each year, and take such action as is necessary ensure that donors’ conditions continue to be met.

Results for the period

Following a large decrease the value of the Trust’s investment funds in 2020 of £7.078m, the value of equities improved significantly in 2021 as governments across the world addressed the financial fall out of Covid 19 resulting in a substantial investment gain of £13.640m. However, this was in the context of uncertainty in global economies and financial markets. Returns during 2021/22 have continued to be positive, gaining £3.733m, though our returns have reduced compared to a ‘highwater-mark of November 2021, reflecting a recovery in world markets after most of the COVID pandemic, but before the outbreak of war in Ukraine, which had, and continues to have, a major destabilising effect on world economies.

The Trust’s investment portfolio in 2021/22 delivered variable returns. Whilst there was positive growth in the total asset value of the Trust, the Global Impact Equities Strategy underperformed compared to its benchmark and compared to the investment objective (which is benchmark plus 1%). One year return was +6.6%, compared to benchmark of +9.6%, (3% lag), and a 4% lag compared to the investment benchmark of 10.6%. The Diversifier Strategies both performed better compared to benchmarks, though with some variability, and with the Alternative Diversifier Strategy performing better than the Diversified Alternatives Strategy. In their May 2022 meeting the Investment Sub-Committee spent their time focusing with Aon on understanding the variable returns being delivered, including the extent to which benchmarks have been influenced by the underlying strength in traditional industries such as Oil and Gas, which the Trustees decided to move away from in their April 2021 portfolio realignment.

However, as disclosed in the previous two year’s Annual Reports, Trustees remain concerned about the relative underperformance of funds compared to our investment return target and compared to investment benchmarks. This risk is still reflected in our risk register (see above) and is the subject of ongoing discussion with our Investment Managers, Aon Solutions UK Limited. The performance of Aon Solutions UK Limited was scrutinised by the Investment Sub-Committee during the year.

The year-end value of the funds is shown below together with their performance (net of fees) compared with their benchmark. The investment in new funds, completed in the subsequent financial year 2021/22, is shown further below for completeness.

11

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

Results for the period (continued)

Funds’ Performance 2021/22

Value
1.4.2021		 Value
31.3.2022		 % Holding
at Year end		 Change
In year
(includes
redemption)		 Absolute gain
in the year		 % Return
(net of
fees)		 %
Benchmark
Return		 Variation
from Target
Return*
£m £m % £m £m % % %
Adept Strategy 27 Fund:
Active Diversifiers Strategy
AND Adept Strategy 31 Fund:
Diversified Alternatives
Strategy		 19.123 16.838 28.1 -2.285 0.145 2.0 +2.9 -1.2
Adept Strategy 30 Fund:
Global Impact Strategy		 36.922 42.775 71.4 +5.853 3.419 4.6 +6.7 -2.8
Cash 0.132 0.297 0.5 +0.165
TOTAL 56.177 59.910 100 +3.733 3.564 6.6 +9.6 -4.0
*being 1% above benchmark**

The Trustees continue to recognise that the long-term objective of the portfolio delivering a real rate of return of 4.5% per annum is more challenging, particularly if RPI is used as a measure of inflation. Therefore it has been agreed that going forward CPI will be used as a measure of inflation.

Investment Policy and Objectives

Since 1994 the Trust has operated a total return policy (capital and income) for its Endowment Funds. This was formalised by the Charity Commission through a sealed order from 6 August 2003 onwards. The Charity Commission also formalised, through a sealed order, the Trust’s pooling scheme from 24 October 2003 onwards. This scheme authorises the Trust to combine its individual Permanent and Expendable Endowment Funds into one pooled fund and, separately, to also combine its Income Funds into one pooled fund. The Charity Commission has also confirmed that the base date for the purpose of Calculating the unapplied total return for the Permanent Endowment Funds can be the date on which donations have been received and the accounts have been prepared on this basis. The anticipated long term real rate of return from the Trust’s Endowment Funds is 4.5% per annum. The annualised rate of 4.5% is unchanged from last year. The Investment Sub-Committee continues to monitor this rate closely in conjunction with the Investment Manager, in order to balance the needs of both present and future beneficiaries. This is to ensure that annual distributions from Permanent Endowments will not

12

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

Investment Policy and Objectives (continued)

exceed the anticipated long term real rate of return. This is derived from a combination of the benchmarks for each of the individual Adept Strategy Funds in which the assets are invested. The performance objective agreed with Aon AIL is to outperform the Composite Benchmark by 1% or more per annum over the long term.

Distribution to the University

The distribution of £2.701m (2021: £2.295m)is calculated as 4.5% of the opening market valuation of endowments 2022 £60.020m (2021 £50.993) The distribution is allocated as follows; £1.556m (2021: £1.350) paid directly to the University as a contribution to salary costs, £0.959m (2021: £0.891m) transferred to the Income Funds pending spending plans being submitted to the Trust and a further £0.186m (2021: £0.0054m) reinvested due to vacant posts in the year or sufficient balances on Income Funds.

Charitable Expenditure

The total charitable expenditure for the year was £5.068m (2021: £4.760m). The endowment portion in the year was £4.458m (2021 £3.789m). This is an aggregate of endowment distribution paid/payable to the University £1.574m (2021 £1.350m) and the accelerated payments to cover salary costs of £2.107m (2021 £1.136m). In addition endowment expenditure includes £0.1m relating to a contribution to the Newcastle University Student Fund (which is recurring for five years) and a £0.677 provision for an agreed contribution to the Farrell Centre currently under construction by the University which is to come from the Florence Kirby expendable endowment fund. In 2021 there was a one off agreement to cover library periodicals in the year (2021: £1.303m). The charitable expenditure of the income funds is the actual payments from the income fund following agreement by the Trustees to the University following Trustee approval of spending plans in the year it amounted to £0.610m (2021: £0.971m).

Transfer between Funds

A total of £0.938m (2021: £0.891m), from the endowment funds, passed to the income funds in relation to the distribution. An additional capital transfer of £0.023m (2021 £0.010m) gives the total transfer between endowment funds and income funds of £0.961m (2021 £0.901m) in the year.

Reserves Policy

The Trust has a less well-developed Reserves policy than many charities because of the “ring-fenced” nature of the majority of Funds it administers. In practice, should the income from a particular Fund prove insufficient to meet fully the costs of the designated area of activity within the University (e.g. the relevant academic salary), the University itself meets that shortfall from its own funds. The Trust holds an “Undesignated” Fund, valued at £0.005m (2021: £0.005m).

13

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

Trustee Policy Act Statement

The Trust’s Trustee Policy Act Statement, is reviewed and approved annually. It includes detailed statements on:

Going Concern

The Trustees are satisfied that preparation of the financial statements on the going concern basis is appropriate as they have reasonable expectation that the Trust will continue in existence for a period until at least 31 March 2023. This expectation is based on the level of funds held (£60m at 31 March 2022) and the fact that Newcastle University is the sole beneficiary of disbursements from the Trust. The value of Investments at 31 March 2022 was £59.9m and even if this valuation was to fall by 75%, this would reduce the number of years the Trust could make the annual disbursement to Newcastle University to four years, but it would not impact the immediate solvency of the Trust. The Trustees will always have the option to pause the distributions to the University should investments fall significantly and the funds not be available.

PLANS FOR FUTURE PERIODS

14

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

POST BALANCE SHEET EVENTS

a University of Sanctuary, in light of the war in the Ukraine. The Trustees met and, following discussions, agreed to pledge a maximum of £1m of additional funding over a 12 month period, subject to a report being submitted to their summer 2022 Trustees Meeting, detailing both the demand for this funding and any actual or planned expenditure, therefore the actual level of this award is still to be confirmed.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year. Under the law the Trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Trust and of net income or expenditure and application of resources of the Trust for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust’s transactions and disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AUDITORS

Azets Audit Services Limited, trading as Azets Audit Services, were appointed as Auditors to the Trust during the year. Azets Audit Services have indicated their willingness to stand for reappointment at the forthcoming Trustees Meeting.

Approved by the Trustees and signed on their behalf by: DATE:

15

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST FOR THE YEAR ENDED 31 MARCH 2022

Opinion

We have audited the financial statements of The University of Newcastle upon Tyne Development Trust (the 'charity') for the year ended 31 March 2022, which comprise the Statement of Financial Activities, Balance Sheet, Cashflow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standard, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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.

16

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

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 original financial statements were 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 trustee is responsible for the other information. 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.

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

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee’s Report.

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

17

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

Responsibilities of the trustee

As explained more fully in the Statement of Trustee's Responsibilities (set out on page 15), the trustee is 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 trustee determines 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 trustee is 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 trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: anti – bribery and corruption; and, compliance with the UK Charities Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

18

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

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.

Use of our report

This report is made solely to the charity trustee in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our work has been undertaken so that we might state to the trustee those matters we are required to state to the trustee in an auditors' 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 its trustee for our audit work, for this report, or for the opinions we have formed.

......................................

Simon Brown BA ACA DChA (Senior Statutory Auditor) For and on behalf of Azets Audit Services

Chartered Accountants

Statutory Auditor Bulman House

Regent Centre Gosforth

Newcastle upon Tyne NE3 3LS

Date:

Azets Audit Services is a trading name of Azets Audit Services Limited

19

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 March 2022

Notes
Income and endowments from:
Donations and legacies
3
Investment income
4
Total
Expenditure on:
Charitable activities
Other
5/6
Total
Net gain on investments
Net (expenditure)/income
Transfers between funds
7
Net movement in Funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
14/15		 Endowment
2022
2021
Unrestricted
Restricted
Funds
Total
Total
£'000
£'000
£'000
£'000
£'000
Income
-
-
731
731
124
-
-
19
19
6
-
-
750
750
130
-
(610)
(4,458)
(5,068)
(4,760)
-
-
(58)
(58)
(51)
-
(610)
(4,516)
(5,126)
(4,811)
-
-
3,733
3,733
13,639
-
(610)
(33)
(643)
8,958
-
961
(961)
-
-
-
351
(994)
(643)
8,958
5
1,169
60,020
61,194
52,236
5
1,520
59,026
60,551
61,194

All incoming resources and resources expended are derived from continuing activities.

20

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

BALANCE SHEET as at 31 March 2022
Note
Fixed assets
Investments
8
Current assets
Debtors
9
Short-term liquid investments
Cash at bank and in hand
Total Current Assets
Creditors: Amounts Falling Due Within One Year
10
Net Current Assets
TOTAL ASSETS LESS CURRENT LIABILTIES
The Funds of the Charity:
Income Funds:
Restricted Funds
Unrestricted Funds
Total Income Funds
11/14
Total Endowment Funds
11/15
TOTAL CHARITY FUNDS		 2022
2022
2021
2021
£'000
£'000
£'000
£'000
59,911
56,178
530
11
-
1,685
1,610
4,141
2,140
5,837
(1,500)
(821)
640
5,016
60,551
61,194
1,520
1,169
5
5
1,525
1,174
59,026
60,020
60,551
61,194		 2022
2022
2021
2021
£'000
£'000
£'000
£'000
59,911
56,178
530
11
-
1,685
1,610
4,141
2,140
5,837
(1,500)
(821)
640
5,016
60,551
61,194
1,520
1,169
5
5
1,525
1,174
59,026
60,020
60,551
61,194
1,520
5
61,194


1,174
60,020
61,194

The financial statements on pages 20-38 were approved by the Board of Trustees on ………………………. and signed on its behalf by:

Hilary Parker (Chair) David Jennings (Honorary Treasurer)

21

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

CASH FLOW STATEMENT for the Year Ended 31 March 2022

Note
Cash flows from operating activities:
Net cash used in operating activities:
17
Cash flows from investing activities
Interest from investments
Proceeds from sale of investments
8
Purchase of investments
Change in cash and cash equivalents held in investments
(Increase) in short-term liquid investments
Net cash provided by investing activities
Cash at 1 April
Cash at 31 March		 £'000
£'000
£'000
£'000
-
(4,235)
-
(2,259)
19
6
922
30,484
(19,900)
(7,110)
18,978
(16,373)
1,685
(1,685)
1,704
5,322
(2,531)
3,063
4,141
1,078
1,610
4,141
Year Ended
31 March 2022
Year Ended
31 March 2021

22

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

ACCOUNTING POLICIES

1(a) Basis of Preparation

The financial statements have been prepared under the assumption that the Trust is a going concern and using the historic cost convention, with the exception that investments are included at market value.

The University of Newcastle upon Tyne Development Trust is an unincorporated Charity registered in England. The Registered Office is Newcastle University, King’s Gate, Newcastle upon Tyne, NE1 7RU. The financial statements have been prepared in compliance with the Charities SORP (FRS 102) “Accounting and Reporting by Charities: Statement of Recommended Practice" applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

A summary of the principal accounting policies, which have been applied consistently, is set out below:

1(b) Donations and Legacies

Donations, gifts and legacies are recognised when there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

1(c) Investment Income

Income for Restricted and Unrestricted Income Funds is allocated on the basis of actual interest receivable on the income fund bank accounts, in proportion to each income fund. There is no investment income for endowment funds.

1(d) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Charitable Activities - the costs identified as wholly or mainly attributable to achieving the charitable objects of the Trust, these are payments to Newcastle University to support their activities.

Other - includes all other costs relating to the general running of the Trust such as external audit fees, legal advice for Trustees, and administration the costs of meeting constitutional and statutory requirements and administration provided by Newcastle University and recharge to the Trust.

Investment Management Fees are currently deducted at source so are not included.

Irrecoverable VAT is charged to the category of expenditure for which it was incurred.

23

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

1. ACCOUNTING POLICIES (continued)

1(e) Payments to Newcastle University

Grants payable are recognised when payment is authorised by the Trustees

(ii) Endowment Funds : For the period ended 31 March 2022 payments were made out of the Endowment Funds which comprise 4.5 % of the endowment assets at 31 March 2021. In addition the Trustees have agreed the release of further funds to cover the full salary costs incurred by the University and these accelerated payments have been included here.

1(f) Income Funds

Income funds are classified as either R estricted or Unrestricted Income Funds:

(i) Restricted Income Funds: Donated for a specific purpose. There is no requirement to maintain the original level of the donation. These funds are further categorised:

'Income Funds with Supporting Endowments' - Income distributed from the endowments is placed on deposit pending approval of expenditure plans.

'Income Funds with no Supporting Endowments' - Funds donated with a definite purpose awaiting approval of expenditure plans.

(ii) Unrestricted Income Funds - These are funds which are donated with no specific purpose.

1(g) Endowment Funds

Endowments are held in a separate pool and are invested via an Investment Manager.

When monies are transferred to the Investment Manager they are deemed to acquire units within the investment pool. The total investment return is apportioned to each fund within the pool based on the number of units held.

24

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

1(g) Endowment Funds (continued)

Incoming resources comprise investment income, in the form of dividend income, and interest on the bank balances held by the Investment Manager.

Expenditure relating to Endowment Funds is the distribution made to the University, at a rate approved by the Trustees, currently 4.5% per annum, proportion of other costs.

If the Endowment is restricted to a particular post within the University and that post is vacant the University does not receive a distribution until the post is filled. The distribution during the vacant period is capitalised i.e. used to purchase an equivalent portion of units for the particular endowment.

Endowment funds are categorised as either Permanent or Expendable :

1(h) Fixed Asset Investments

Fixed asset investments are shown in the financial statements at their market value at the balance sheet date. The resulting unrealised surplus or deficit is credited or debited to the fund account through the movement of the funds in the Statement of Financial Activities.

The AIL Adept Funds are valued at net asset value at the accounting date.

2. RELATED PARTY TRANSACTIONS AND TRUSTEES' REMUNERATION

Trustees have not received, and are not entitled to receive remuneration for their services (2021: £nil). No Trustees have reclaimed any expenses in the period (2021: £nil). The ultimate controlling party of the Trust is considered to be the Trustees. There are no related party transactions.

3. DONATIONS AND LEGACIES

Income from donations and legacies in the year amounted to £0.730m (2021: £0.124m). The donations in the year was an additional contribution from the Alice Stephenson Bequest for Cancer Research Endowment Fund.

INVESTMENT INCOME
Bank interest		 2022
2021
£'000
£'000
19
6

4. INVESTMENT INCOME

There is no direct investments income in 2022 relating to the Trust investments with Aon as these funds are accumulating income funds. The majority of the income relates to interest attributed to the Trust from cash investments on the Flagstone platform.

25

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

5. EXPENDITURE ON CHARITABLE ACTIVITIES
Income Funds
Grants from Newcastle University
Expenditure Funds
Distribution to University in the Year
Accelerated salary payments
Kirkby Endownent contribution to the Farrell Centre
Contribution to Library periodicals
Contribution to Student Fund
Total Expenditure Funds
Total charitable expenditure in the year
The sole beneficiary of all charitable expenditure is Newcastle University		 2022
2021
£'000
£'000
610
971
1,574
1,350
2,107
1,136
677
-
-
1,303
100
-
4,458
3,789
5,068
4,760
Calculation of the distribution in the year
2022
2021
£'000
£'000
Market Value of endowments as at I Aug
60,019
50,992
Distribution 4.5% of 1 Apr Market value of endowments (a)
(i)
2,701
2,295
Distribution to Newcastle University funded by endowments in the year (b)
(ii)
1,575
1,350
Transfer to Income Funds (c)
(iii)
938
891
Retained in Endowment Funds (d)
(iv)
188
54
2,701
2,295
The total distribution in the year is 4.5% the opening market value (1st April) of the value of endowments (i). A portion of this is paid directly to the
University (ii). For Endowment Funds with Income Funds the distribution is held in the Income Fund bank account until a request is made for the
funds(iii). Also,some funds maybe retained in the endowment fund if there is a vacantpost or it is unlikelythat the funds will be needed in theyear(iv)		 2022
2021
£'000
£'000
60,019
50,992
2,701
2,295
1,575
1,350
938
891
188
54
2,701
2,295

26

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

6. OTHER EXPENDITURE

Investment Management Costs

The investment fees for AIL are deducted directly from the investment funds, these are the sole investment charges.

Analysis of Governance Costs
Wages and salaries
Social security costs
Office costs
Audit Fees
Legal Fees
Bank Charges
Other		 2022
2021
£'000
£'000
-
13
-
1
25
20
14
15
2
2
9
-
8
-
58
51

There were no direct employees in the year (2021: 1) so there were no remuneration costs (2021 £0.014m). So no employee received £60,000 per annum or above during the period (2021 £nil) and no provision therefore is needed for holiday pay accrual (2021 £nil).

Office costs include a recharge from the University £0.025m (2021: £0.019) for support services provided by Newcastle University finance and administrative staff. This includes a charge for trust management services provides by Newcastle University Advancement Office. All recharges and office costs have been allocated to governance costs. None of the costs have been allocated to charitable activities as the role of fundraising has been assigned to the costs have been Advancement Office of the University.

TRANSFERS
Distribution allocation transfer from Endowment Funds to Income Funds
Additional transfer from endowment capital: Wilson Campbell Endowment
Additional transfer from endowment capital: Charles Letts Endowment
Transfer from Endowment to Restricted Funds in the year		 2022
2021
£'000
£'000
938
891
14
10
9
-
961
901

7. TRANSFERS

27

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

8. INVESTMENTS
INVESTMENTS
Market value at start of year - 1 April
Additions
Disposals
Investment gains / (losses)
Market value at end of year - 31 March
Movement in Investment Managers’ Capital Accounts (cash)
Total Investments at end of year 31 March
Historical cost of quoted investments		 2022
2021
£'000
£'000
56,178
49,539
19,900
7,110
(922)
(30,484)
3,733
13,640
78,889
39,805
(18,978)
16,373
59,911
56,178
56,453
55,372

The Trustees believe that the carrying value of the investments is supported by the underlying net assets of the individual funds. The substantial decrease in in the Investment Managers' Capital Account (cash) 2022 £18.978m (2021 an increase of £16.373m) is due to the cash in transit at 31 March 2021 when we switched Adept UK equity funds.

Investment Asset Allocation
Adept 30/26 - Global Equities (excl. tobacco)
Adept 27 - UK equities
Adept 31 - Diversified alternatives stratergy
Cash & Equivalent : UK		 2022
2022
Control
2021
2021
£'000
%
Ranges
£'000
%
42,776
71%
65%-75%
36,922
66%
12,221
-
4,617
-
297
1%
0-10%
19,256
34%
59,911
100%
56,178
100%
25%-35%
28%
0%

On 31 March 2021 the Adept 24 fund was dissolved and associated cash in transit (£19m) at 1 April 2021 was dispersed between the Adept 27 -UK equity fund (£11m) and the Adept 31 fund (£5m) which is a diversified alternatives strategy fund and a further amount (£3m) to the Adept 30, which holds

9. DEBTORS

DEBTORS
Donation receivable
Investment income receivable		 2022
2021
£'000
£'000
530
-
-
11
530
11

The donation receivable is the estimated residual due from the Alice Stephenson bequest for Cancer Research 2021 £nil. The Investment income receivable in 2022 is £nil (2021: £0.0011m) due in 2021 from the Flagstone platform held with CAF bank which was closed on 31 March 2022.

28

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

10. CREDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR

S TO THE ACCOUNTS
CREDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR
Auditors
Newcastle University		 2022
2021
£'000
£'000
11
13
1,489
808
1,500
821

The amount owed to Newcastle University, £1.489m (2021: £0.808m) comprises the final distribution for the year of 2022: £0.736m (2021: £0.670m), £0.677m (£2021:£nil) contribution due from Florence Kirby Bequest to part fund capital works relating to the Farrell Centre at Newcastle University, a provision of £0.050m has been made relating to a contribution promised to Newcastle University Student Fund (2021: £nil), the recharge invoice for management and administration services provided by Newcastle University due at the year end is £0.026m (2021: £0.032). There was an adjustment made for £0.038m that relating to the Chinese Lectureship and deducted from the final distribution. In 2021 there was also a provision for £0.106m due to Newcastle University Library from the Marjorie Robinson Library Fund, there is no equivalent for 2022.

11. THE FUNDS OF THE CHARITY
Note
Income Funds:
Opening balance as at 1 April
Incoming funds
Expenditure
Net transfers to restricted funds
Total Income Funds at 31 March
14
Endowment Funds:
Opening balance as at 1 April
Donations and gifts
Investment income
Expenditure
Net transfers to restricted funds
Investment gains/(losses)
Total Endowment Funds at 31 March
15
Total Funds of the Charity		 2022
2021
£'000
£'000
1,174
1,242
0
2
(610)
(971)
961
901
1,525
1,174
60,020
50,994
731
124
19
4
(4,516)
(3,841)
(961)
(901)
3,733
13,640
59,026
60,020
60,551
61,194

29

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Fund balances as at 31 March 2022 are represented by:
Outstanding transfer between funds
Investments
Debtors
Cash
Current liabilities		 Endowment
Total
Unrestricted
Restricted
Funds
2022
£'000
£'000
£'000
£'000
-
-
-
-
-
-
59,911
59,911
-
-
530
530
5
1,520
85
1,610
-
-
(1,500)
(1,500)
5
1,520
59,026
60,551
Income Funds

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS

13 TAXATION

The charity is a registered charity and as such is entitled to certain tax exemptions on income and gains from investments and all non-trading income is exempt from taxation.

30

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

14. INCOME FUNDS

INCOME FUNDS
Movement Transfer
RESTRICTED FUNDS 1 April
2021		 in Incoming
Resources		 from
Endowment		 Expenditure 31 March
2022
£'000 £'000 £'000 £'000 £'000
Korean Studies 30 - 14 - 44
Dr W E Harker Foundation 162 - 45 - 207
Kritchman Scholarships 2 - 1 - 3
Student Exploration (Travel Awards) 8 - 4 - 12
Barton De Loach 5 - 2 (1) 6
Jeffreys 2 - 1 - 3
Konishi 57 - 14 (9) 62
Randerson Foundation 103 - 36 - 139
William Benedict Coleman Scholarships 9 - 31 (24) 16
Wilson Campbell Memorial Appeal 2 - 16 - 18
Henry Miller Memorial Appeal Fund 42 - - (18) 24
Sophia Lecture 9 - 2 - 11
Brian J Lewis Prize 2 - 1 - 3
Charles Letts Memorial Fund 6 - 20 (12) 14
James Skillington Memorial Fund 2 - 1 - 3
Charles Bosanquet Memorial Appeal 17 - 4 - 21
Swales Bequest 29 - 12 (15) 26
Mac Cooper Appeal 30 - 5 (32) 3
Robinson Library 71 - 37 (20) 88
Kummerman/Fisher Fund 4 - 4 - 8
Marjorie Robinson Bequest 186 - 567 (406) 347
Continued overleaf 778 - 817 (537) 1,058

31

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

14. INCOME FUNDS (continued)

INCOME FUNDS (continued)
Movement Transfer
RESTRICTED FUNDS 1 April
2021		 in Incoming
Resources		 from
Endowment		 Expenditure 31 March
2022
£'000 £'000 £'000 £'000 £'000
Continued from previous page 778 - 817 (537) 1,058
Jack Jeffery Fund 5 - 1 - 6
Elsie Jeffery Bursary 4 - 2 (2) 4
Museum Conservation Fund 9 - 4 - 13
The Vesuvius plc Partners Bursary Fund 15 - 7 (6) 16
EM Henderson Bequest 4 - 2 - 6
Duke of Northumberland Memorial Appeal 87 - - - 87
Organ Scholarship 4 - - - 4
Bremner Smith Bequest 34 - - (20) 14
Alice Stephenson Bequest (Cancer Research) 86 - 31 - 117
Florence Kirby Estate 49 - 38 - 87
Foxcroft Estate 94 - 59 (45) 108
RESTRICTED FUNDS 1,169 - 961 (610) 1,520
UNRESTRICTED FUNDS 5 - - - 5
TOTAL INCOME FUNDS 1,174 - 961 (610) 1,525

32

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

15. ENDOWMENT ACCOUNTS

ES TO THE ACCOUNTS
ENDOWMENT ACCOUNTS
PERMANENT 1 April 2021 Donations
and Gifts		 Investment
Income		 Transfer to
Rest'd Funds		 Expenditure Gains on
Investments		 31 March 2022
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Action Medical Research Chair of Neuromuscular Disease 1,922 - - - (106) 114 1,930
Tyne and Wear Chair of Environmental Control Engineering 998 - - - (126) 58 930
Readership in Microelectronics 577 - - - (98) 32 511
William Leech fund for Biomedical Science 791 - - - (60) 49 780
Lectureship in Rheumatology 1,053 - - - (92) 66 1,027
NCKRF Nephrology (1) 787 - - - (88) 47 746
NCKRF Nephrology (2) 781 - - - (90) 46 737
William Leech/McQueen Fund Neuromuscular Disease 827 - - - (124) 47 750
NECCR Clinical Paediatric Oncology 2,558 - 1 - (142) 173 2,590
NCKRF Transplant Immunology 821 - - - (120) 47 748
William Leech/Green Fund for Renal Transplantation 978 - - - (94) 61 945
NCKRF Nephrology (3P) 334 - - - (106) 13 241
Korean Studies 307 - - (14) - 20 313
Jeffcock Medical Research Fund 306 - - - (15) 20 311
Haswell Ellis Music Fellowship 75 - - - (29) 3 49
Dr WE Harker Foundation 1,950 - 3 (45) (52) 128 1,984
Kritchman Scholarships 19 - - (1) - 1 19
Boon Research Fund 44 - - - (2) 3 45
Student Exploration Appeal 98 - - (4) - 6 100
Barton De Loach Bequest 47 - - (2) - 3 48
Jeffreys Fund 14 - - (1) - 1 14
Chinese Lectureship 66 - - - (16) - 50
Konishi Foundation Fellowship in East Asian Studies 321 - - (14) - 20 327
Randerson Foundation 1,770 - - (36) (52) 102 1,784
TOTAL PERMANENT FUNDS 17,444 - 4 (117) (1,412) 1,060 16,979

33

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

15. ENDOWMENT ACCOUNTS (continued)

EXPENDABLE 1 April
2021		 Donations
and Gifts		 Net
Investment
Income		 Transfer to
Restricted
Funds		 Expenditure Gains on
Investments		 31 March
2022
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Jacobson Chair of Personalised Medicine 1,167 - - - (143) 70 1,094
Chair of Energy Studies 1,153 - - - (91) 73 1,135
Chair of Engineering Materials 235 - - - (110) 11 136
Henry Daysh Chair of Regional Development Studies 1,087 - - - (103) 65 1,049
Chair of Ocean Engineering 1,331 - - - (96) 84 1,319
Chair of Industrial Management 960 - - - (98) 60 922
Chair of Occupational Health 982 - - - (94) 62 950
Sir James Woodeson Chair of Manufacturing Eng. 1,127 - - - (103) 71 1,095
Roland Cookson Chair of Composite Materials Eng. 1,892 - - - (110) 120 1,902
William Leech Fund for Primary Care 1,545 - - - (156) 97 1,486
Readership in Marine Transport 690 - - - (121) 40 609
William Leech Fund for Ageing and Chronic Disease 1,132 - - - (167) 69 1,034
William Leech Fund for Bioengineering 864 - - - (93) 54 825
William Leech Fund for Neuroscience 825 - - - (70) 52 807
William Leech Fund for Musculoskeletal Disorders 762 - - - (124) 45 683
Senior Lectureship in Pathology (Upgrading) 482 - - - (23) 30 489
NECCR Non-Clinical Paediatric Oncology 1,780 - - - (137) 107 1,750
Lectureship in Haematology 773 - - - (68) 48 753
William Leech Fund for Immunology and inflamation 696 - - - (100) 41 637
NCKRF Nephrology (3E) 360 - - - (40) 25 345
continued overleaf 19,843 - - - (2,047) 1,224 19,020

34

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

15. ENDOWMENT ACCOUNTS (continued)

ENDOWMENT ACCOUNTS (continued)
EXPENDABLE 1 April
2021		 Donations
and Gifts		 Investment
Income
Transfer to
**Rest'd Funds **		 Expenditure Gains on
Investments		 31 March
2022
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Continued from previous page 19,843 - -
-		 (2,047) 1,224 19,020
Duke of Northumberland Appeal 2,368 - 1
-		 (139) 152 2,382
Research Technician in Haematology 313 - -
-		 (14) 19 318
The Vesuvius plc Partners Bursary Fund 152 - -
(7)		 - 10 155
Siemens Chair in Microelectronics 392 - -
-		 (135) 21 278
William Benedict Coleman Scholarships 667 - -
(31)		 (1) 43 678
Dina Atter Research Fund 278 - -
-		 - 17 295
Wilson Campbell Memorial Appeal 40 - -
(16)		 - 2 26
Dr Henry Miller Memorial Appeal 277 - -
-		 (12) 17 282
Sophia Lecture 46 - -
(2)		 - 3 47
Museum Conservation Fund 89 - -
(4)		 - 6 91
Studentships in Medicine 120 - -
-		 (6) 8 122
Haswell Music Fellowship 54 - -
-		 (55) 2 1
Brian J Lewis Prize Fund 15 - -
(1)		 - 1 15
Charles Letts Memorial Appeal 197 - -
(20)		 - 15 192
James Skillington Memorial Fund 19 - -
(1)		 - 2 20
Charles Bosanquet Memorial Appeal 89 - -
(4)		 - 6 91
Swales Bequest 225 - -
(12)		 - 17 230
Mac Cooper Appeal 107 - -
(5)		 - 7 109
Robinson Library Fund 793 - -
(37)		 (1) 51 806
Kummerman/Fisher Fund 91 - -
(4)		 - 6 93
continued overleaf 26,175 - 1
(144)		 (2,410) 1,629 25,251

35

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

15. ENDOWMENT ACCOUNTS (continued)

ENDOWMENT ACCOUNTS (continued)
EXPENDABLE (continued) 1 April
2021		 Donations
and Gifts		 Net
Investment		 Transfer to
Restricted		 Expenditure Gains on
Investments		 31 March
2022
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Continued from previous page 26,175 - 1 (144) (2,410) 1,629 25,251
Marjorie Robinson Bequest 10,691 - 12 (567) (14) 782 10,904
Jack Jeffery IRES Outreach Fund 19 - - (1) - 1 19
Elsie Jeffery Bursary 37 - - (2) - 2 37
EM Henderson Bequest 43 - - (2) - 3 44
Dunlevy Fund 10 - - - - 1 11
Alice Stephenson Bequest (Cancer Research) 960 730 1 (31) (1) 43 1,702
Florence Kirby Estate 1,760 - - (40) (677) 53 1,096
Foxcroft Estate 2,881 1 1 (57) (2) 159 2,983
TOTAL EXPENDABLE FUNDS 42,576 731 15 (844) (3,104) 2,673 42,047
TOTAL ENDOWMENTS FUNDS 60,020 731 19 (961) (4,516) 3,733 59,026

36

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

16. UNAPPLIED TOTAL RETURNS ON PERMANENT ENDOWMENT ACCOUNTS
Unapplied
Return at
1 April
2021
Total Return
in Year
Allocated to
Income in
Year
Unapplied
Return at
31 March
2022
Base Value
Total of
Unapplied
Return and
Base Value at
31 March 2022
£'000
£'000
£'000
£'000
£'000
£'000
Action Medical Research Chair of Neuromuscular Disease
1,722
114
(106)
1,730
200
1,930
Chair of Environmental Control Engineering
864
58
(126)
796
134
930
Readership in Microelectronics
386
32
(98)
320
191
511
William Leech fund for Biomedical Science
666
49
(60)
655
125
780
Lectureship in Rheumatology
898
66
(92)
872
155
1,027
NCKRF Nephrology (1)
657
47
(88)
616
130
746
NCKRF Nephrology (2)
601
46
(90)
557
180
737
William Leech/McQueen Fund for Neuromuscular Disease
665
47
(124)
588
162
750
NECCR Clinical Paediatric Oncology
1,654
174
(142)
1,686
904
2,590
NCKRF Transplant Immunology
606
47
(120)
533
215
748
William Leech/Green Fund for Renal Transplantation
798
61
(94)
765
180
945
NCKRF Nephrology (3P)
289
13
(106)
196
45
241
Korean Studies
230
20
(14)
236
77
313
Jeffcock Medical Research Fund
271
20
(15)
276
35
311
Haswell Ellis Music Fellowship
34
3
(29)
8
41
49
Dr WE Harker Foundation
1,215
131
(97)
1,249
735
1,984
Kritchman Scholarships
12
1
(1)
12
7
19
Boon Research Fund
24
3
(2)
25
20
45
Student Exploration Appeal
42
6
(4)
44
56
100
Barton De Loach Bequest
21
3
(2)
22
26
48
Jeffreys Fund
6
1
(1)
6
8
14
Chinese Lectureship
16
-
(16)
-
50
50
Konishi Foundation Fellowship in East Asian Studies
171
20
(14)
177
150
327
Randerson Foundation
640
102
(88)
654
1,130
1,784
Total Unapplied Return and Valuation as at 31/3/2022
12,488
1,064
(1,529)
12,023
4,956
16,979

37

THE UNIVERSITY OF NEWCASTLE UPON TYNE DEVELOPMENT TRUST and other related charities Trustee report and accounts for the year ended 31 March 2022

NOTES TO THE ACCOUNTS

17. RECONCILIATION OF THE NET OUTGOING RESOURCES TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES

Net (expenditure)/income for the year
(Gain) on investments
Investment income
(Increase)/Decrease in debtors (excluding investment income receivable)
Increase in creditors
Net cash (used in) operating activities
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Cash at bank
Debt
Closing net funds		 2022
2021
£'000
£'000
(643)
8,958
(3,733)
(13,640)
(19)
(6)
(519)
2,394
679
35
(4,235)
(2,259)
At 1 April
2021
Cashflow
At 31 March
2022
£'000
£'000
£'000		 2022
2021
£'000
£'000
(643)
8,958
(3,733)
(13,640)
(19)
(6)
(519)
2,394
679
35
(4,235)
(2,259)
4,141
(2,531)
1,610
-
-
-
4,141
(2,531)
1,610

18. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

38