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2024-03-31-accounts

Charity registration number 528288

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees R Armitage
A Gavin
Mr J A G Crossley
J Reddin
S Spillane
A Mitchell (Appointed 3 March 2024)
Charity number 528288
Principal address The Clerk
58 Beverley Road
Leamington Spa
CV32 6PJ
Independent examiner Rachel Skells BA FCA
c/o The Old Exchange
64 West Stockwell Street
Colchester
Essex
CO1 1HE

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

CONTENTS

Page
Trustees report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 12

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2024

The trustees present their annual report and financial statements for the year ended 31 March 2024.

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 charity's trust deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The charity's objectives are the provision of education to children attending Ratcliffe College, Leicester with preference given to children of former pupils of Ratcliffe College and children of poor Irish parents.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Grant making policy

The Trustees review new applications for grants towards the provision of education to children in accordance with the objectives of the charity. All grants have for many years been based on financial need as against scholastic ability and the Trustees have endeavoured wherever possible to fund pupils whose parents are unable to complete their studies as a result for instance of the loss of a job or redundancy.

The Trustees have had due regard to guidance issued by the Charity Commission on public benefit and consider that the activities of the charity meet the requirements of the guidance.

The Trustees policy also necessitates review of all grants where the grantee has reached year eight at Ratcliffe College and is proceeding to GCSE. Grantees who have completed GCSE courses and are continuing to A level courses are also reviewed.

Achievements and performance

During the current financial year the fund paid £39,000 in grants for attendance at Ratcliffe College.

Financial markets have seen some volatility as a result of the economic impact of the pandemic and the war in Ukraine. The Fund is still in a healthy position with over £2.0m invested with our Fund Managers, James Hambro Partners, at 31st March 2024. This is a similar position to 31st March 2022 and 31[st] March 2023 despite taking additional cash away from the Fund Managers during the year to pay for the grants and paid out over £176,000 over the last three years.

The charity retains approximately one year’s grants in bank balances and the Trustees believe that in the event of any further reduction in the fund’s investments the charity will remain a going concern and be able to cover its liabilities. The Trustees will continue to closely monitor the situation, with quarterly and ad hoc reports from their professional financial advisor.

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

Financial review

The results for the year are shown on pages 5 to 12 of the financial statements. The charity has incurred a deficit of £15,731 before investment gains of £148,544.

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

The total unrestricted reserves at the year-end stood at £209,883 (2023: £193,434) Endowment funds totalled £1,849,007 (2023: £1,732,643). The Trustees have agreed a policy whereby unrestricted funds not committed or invested in tangible fixed assets or investments held by the charity should be maintained at approximately a year's outgoings on scholarship awards.

Additional surplus income has been invested to provide additional income.

This policy allows for a possible reduction in the more stable parts of income and so would allow the charity to continue its activities at the current level for some years.

The Trustees have considered the risks to which the charity is exposed and have established monitoring processes to understand and mitigate those risks. Strategic and shorter-term plans are reviewed regularly, and funding obtained from a number of sources. Internal risks are minimised by implementing procedures for authorising transactions, grants etc, and to ensure consistent quality of delivery for all operational aspects of the charity.

The Trustees review these procedures periodically.

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

TRUSTEES REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

Structure, governance and management

The charity was formed following the amalgamation of the Ratcliffian Association Centenary Fund, Ratcliffian Association Land Trust, Cunningham Centenary Fund, and the Ratcliffian Association University Scholarship Trust Fund.

The approval of this scheme was given by the Association Council on 27 November 1997, and the scheme was registered with the Charity Commissioners for England & Wales (registered number 528288) and is regulated by schemes sealed on 7 January 1998.

The trustees who served during the year and up to the date of signature of the financial statements were: R Armitage

A Gavin Mr J A G Crossley J Reddin S Spillane A Mitchell (Appointed 3 March 2024)

Provincial of the Institute of Charity and the Headmaster are ex-officio Trustees. Other Trustees are appointed by the Council of the Ratcliffian Association for periods of 4 years in accordance with the scheme rules. All Trustees are long standing and experienced. Any new Trustees are advised concerning their duties and responsibilities by the Clerk to the Charity.

New co-optative trustees are appointed by the Ratcliffian Association Council based on their character, experience and suitability for trusteeship of the Charity and receive ad hoc training.

The Trustees report was approved by the Board of Trustees.

R Armitage Trustee Dated: 19 November 2024

Mr J A G Crossley

Trustee Dated:19 November 2024

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

I report to the trustees on my examination of the financial statements of The Ratcliffian Association and Cunningham Fund (the charity) for the year ended 31 March 2024.

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 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

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:

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.

Rachel Skells BA FCA

c/o The Old Exchange 64 West Stockwell Street Colchester

Essex CO1 1HE

Dated: 19 November 2024

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2024

Unrestricted Endowment
funds
funds
2024
2024
Notes
£
£
Income from:
Donations and legacies
2
395
-
Investments
3
34,654
-
Total income
35,049
-
Expenditure on:
Raising funds
4
-
4,777
Charitable activities
5
46,003
-
Total expenditure
46,003
4,777
Net gains/(losses) on
investments
9
27,403
121,141
Net income/(expenditure) and
movement in funds
16,449
116,364
Reconciliation of funds:
Fund balances at 1 April 2023
193,434
1,732,643
Fund balances at 31 March
2024
209,883
1,849,007
Total
Unrestricted Endowment
funds
funds
2024
2023
2023
£
£
£
395
395
-
34,654
29,128
-
35,049
29,523
-
4,777
-
4,834
46,003
41,867
-
50,780
41,867
4,834
148,544
17,870
(80,631)
132,813
5,526
(85,465)
1,926,077
187,908
1,818,108
2,058,890
193,434
1,732,643
Total
2023
£
395
29,128
29,523
4,834
41,867
46,701
(62,761)
(79,939)
2,006,016
1,926,077

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

BALANCE SHEET

AS AT 31 MARCH 2024

Notes
Fixed assets
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets/(liabilities)
Total assets less current liabilities
Capital funds
Endowment funds - general
14
Income funds
Unrestricted funds
2024
£
89
68,313
68,402
(54,380)
£
2,044,868
14,022
2,058,890
1,849,007
209,883
2,058,890
2023
£
-
34,486
34,486
(50,522)
£
1,942,113
(16,036)
1,926,077
1,732,643
193,434
1,926,077

The financial statements were approved by the Trustees on 19 November 2024

R Armitage Trustee

Mr J A G Crossley Trustee

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

Charity information

The Ratcliffian Association and Cunningham Fund is a charity, registered with the Charity Commission for England and Wales and is regulated by the Trust Deed dated 7 January 1998.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's trust deed, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

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.

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 financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected.

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure on grants is recorded once the Trust has made an unconditional commitment to pay the grant and this is communicated to the beneficiary or the grant has been paid, whichever is the earlier.

Other expenditure is included in the accounts on the accruals basis. Irrecoverable VAT is charged to the SOFA as incurred.

The cost of managing investments is split 25:75 between administration fees charged to raising funds and endowment investment fees charged to unrealised gains on investments.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

Cash and cash equivalents include deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets comprise cash at bank together with other debtors. Cash at bank is defined as all cash held in instant access bank accounts and used as working capital. Investments are held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure. Financial liabilities held at amortised cost comprise all creditors.

2 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Donations and gifts 395 395

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

3 Income from investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Income from listed investments 32,443 28,310
Interest receivable 2,211 818
34,654 29,128

4 Raising funds

Endowment Endowment
funds funds
general general
2024 2023
£ £
Investment management 4,777 4,834
4,777 4,834

The portfolio is managed by James Hambro. Investment managers fees for the year totalled £19,198 (2023: £19,337) and have been split 25:75 between raising funds (£4,777) and unrealised gains on investments (£14,421) and both expensed within the endowment funds.

5 Charitable activities

Charitable activities
Independent examiners fees
Sundry expenses
Grant funding of activities (see note 6)
2024
£
3,180
377
3,557
42,446
46,003
2023
£
2,935
105
3,040
38,827
41,867

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

6 Grants payable

Grants to individuals 2024
£
42,446
42,446
2023
£
38,827
38,827

7 Trustees

During the year, no Trustees received remuneration for their services (2023: £Nil). During the year, two trustee was reimbursed a total of £342 for travel expenses (2023: £70).

8 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

9 Gains and losses on investments

Unrestricted Endowment
funds
funds
2024
2024
Gains/(losses) arising on:
£
£
Revaluation of
investments
21,533
149,012
Sale of investments
5,870
(27,871)
27,403
121,141
Total
Unrestricted Endowment
funds
funds
2024
2023
2023
£
£
£
170,545
11,305
(98,855)
(22,001)
6,565
18,224
148,544
17,870
(80,631)
Total
2023
£
(87,550
24,789
(62,761

10 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

11
Fixed asset investments
Listed
investments
£
Cost or valuation
At 1 April 2023
1,897,897
Additions
584,316
Valuation changes
170,545
Movements
-
Gain on sale of investments
(7,602)
Disposals
(618,009)
At 31 March 2024
2,027,147
Carrying amount
At 31 March 2024
2,027,147
At 31 March 2023
1,897,897
12
Debtors
Amounts falling due within one year:
Other debtors
13
Creditors: amounts falling due within one year
Bursaries pledged for future terms
Accruals and deferred income
Cash in
portfolio
£
44,216
-
-
(26,495)
-
-
17,721
17,721
44,216
2024
£
89
2024
£
46,200
8,180
54,380
Total
£
1,942,113
584,316
170,545
(26,495)
(7,602)
(618,009)
2,044,868
2,044,868
1,942,113
2023
£
-
2023
£
42,642
7,880
50,522

THE RATCLIFFIAN ASSOCIATION AND CUNNINGHAM FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2024

14 Endowment funds

The income earned by the endowment investments is utilised to provide grants in accordance with the charity's governing document.

Balance at Resources Revaluation
Balance at
1 April 2023 expended gains and
31 March 2024
losses
£ £ £ £
Expendable endowments
Endowment Fund 1,732,643 (4,777) 121,141 1,849,007
1,732,643 (4,777) 121,141 1,849,007

Endowment funds are funds which have been given to the charity subject to the restriction that they are held as capital.

15 Analysis of net assets between funds

Unrestricted
Endowment
funds
funds
2024
2024
£
£
At 31 March 2024:
Investments
195,861
1,849,007
Current assets/(liabilities)
14,022
-
209,883
1,849,007
Unrestricted
Endowment
funds
funds
2023
2023
£
£
At 31 March 2023:
Investments
209,470
1,732,643
Current assets/(liabilities)
(16,036)
-
193,434
1,732,643
Total
2024
£
2,044,868
14,022
2,058,890
Total
2023
£
1,942,113
(16,036)
1,926,077

16 Related party transactions

There were no further disclosable related party transactions during the year other than those included in note 8 of the financial statements (2023- none).