2021-12-31-accounts - The Robert Anderson Research Charitable Trust

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THE ROBERT ANDERSON RESEARCH CHARITABLE TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Charity Registration No. 800617

THE ROBERT ANDERSON RESEARCH CHARITABLE TRUST CONTENTS

	Page
Legal and Administrative Details	1
Trustees’ Report	2 – 6
Independent Examiner’s Report	7
Statement of Financial Activities	8
Balance Sheet	9
Notes to the Accounts	10 – 13

THE ROBERT ANDERSON RESEARCH CHARITABLE TRUST LEGAL AND ADMINISTRATIVE DETAILS

Trustees:	S J A Stuart-Smith (Chairman)
	A C Berendt
	Miss E K Gray
Director,	C H Naunton M Phil, PhD
Charity Correspondent	54 Hornton Street
and registered address:	London W8 4NT
Coordinator:	D H Davies
Bankers:	Barclays Bank Plc.
	Leicester
	LE87 2BB
Independent Examiner:	C E Osborn ACA
	Brook Cottage
	Petworth Road
	Haslemere
	Surrey GU27 3BG

THE ROBERT ANDERSON RESEARCH CHARITABLE TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their report and financial statements of the charity for the year ended 31 December 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply 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 (effective 1 January 2019).

Objects, Structure, Governance and Management

The charitable trust was established under a trust deed made by the late Dr Robert Anderson (“the Founder”) dated 8 December 1988. The objects of the charity are to advance the education of undergraduate and post-graduate students, whether from the United Kingdom or overseas, by the provision of financial grants and research facilities to enable them to study in the fields of historical, archaeological, artistic and scientific research.

The original cash bequest was supplemented by further gifts from the Founder, including in 2000 freehold residential property in Highgate, London N6. In 2006 the Founder gifted his half share in freehold residential accommodation in Kensington, London W8 while the Trustees were able to purchase the other half share for a sum payable by instalments, paid in full by 2019. These properties are partly let to provide income for the charity, with those parts not let being devoted to the provision of accommodation for visiting students, principally for short periods of intensive research in London.

Those who were the Trustees of the charity during the year are disclosed on page 1. The trust deed provides for a new Trustee to be appointed by a resolution at a meeting of the Trustees, subject to the number of Trustees being not less than three and not more than five.

The Trustees have been fully briefed on the charity's assets together with its governance and management. They have been provided with a copy of the Charity Commission guidance note - "The Essential Trustee: what you need to know". The Trustees are kept informed of key changes in Charity Law by their professional advisers.

Investment policy and means for raising additional funds have been kept under review, as appropriate, with a view to enabling the objects to be promoted over the longer term. The trustees have unlimited powers of investment. The investment strategy is set by the trustees for an anticipated cycle of five years or more, having regard to the expected level of grant applications in the medium term. The trustees consider the income requirements, the risk profile and independent advice on the market prospects in the medium term. Funds are invested in low and medium risk investments, including unit trusts aimed at capital appreciation.

Public Benefit Statement

The charity's Trustees have considered the guidance on public benefit published by the Charity Commission, when reviewing the Trust’s aims and objectives and in planning future activities, and are of the view that their policies and activities are consistent with the requirements of Section 17 of the Charities Act 2011.

Policy concerning Academic Visitors and Grant Applications

Applications for grants and administration of the charity are dealt with jointly by the Director and the Coordinator. The Trustees take decisions on applications for charitable grants in consultation with them at meetings during the year.

The Trustees aim to make charitable grants broadly equivalent to the net incoming resources, excluding capital gains or losses on investment assets and after provision for known property commitments. The policy on grants also reflects the charity’s obligation to maintain, and where appropriate refurbish, its properties to a standard consistent with achievement of its principal objectives.

The charity invites applications for grants towards the cost of short-term visits for research purposes to the United Kingdom, through its contacts with many universities worldwide. The applications are reviewed to enable research students of proven calibre to extend the scope of their studies within the United Kingdom, where the circumstances are such that, without assistance provided by the charity, they would be unable to do so. The cash grants (awarded primarily to assist with incidental travel costs) are supplementary to the principal benefit provision for visitors being in the form of free residential accommodation together with, where appropriate, related support and advice.

Achievements and Performance

The charity has benefitted from an unexpected and substantial legacy from the Estate of Jean Middlemiss, the distinguished musician and teacher, who had been a professional colleague of the Founder. The initial distribution received during 2021 is £420,000, with any further smaller amount to be recognised as and when confirmed. The Trustees have undertaken a selection process with a view to appointment of an investment adviser and manager, due to be concluded during April 2022.

The MMus residency established in 2017 for postgraduate music students studying at an approved London music college, has continued during 2021 offering free accommodation at the Kensington property and access to its music library. The holder of this award (David Hedley) duly completed his Masters degree course at the Royal College of Music (RCM) during 2021, with distinction, while also resuming his performance programme. Following the Special Award made in 2020 to John-Paul Jennings towards the cost of his Master of Performance in Conducting course at the RCM, and in view of the favourable feedback, he has succeeded to the MMus residency as from September 2021.

The Trustees wish to record their sincere thanks once again to Dr Chris Naunton who, as Director, has continued admirably with adapting activities affected by the Covid-19 pandemic, while maintaining the charity’s international contacts through maintenance of its website – essential both for sustaining over the longer term the required calibre of applications for visitor grants and for contributing effectively to excellence in music education – as well as overseeing the accommodation in Kensington provided for those awarded longer term music scholarships.

The Trustees likewise remain indebted to Mr Howard Davies, whose broad contribution to the charity’s continued progress has included a vital role in completion of the substantial refurbishment work undertaken at Highgate (see further details below under Financial Review).

While time and resources have continued to be allocated towards longer term benefits, for research to be undertaken within the UK by students travelling from further afield, rescheduling of the visitor programme has been necessary, as outlined in the next section of this report.

Covid-19, the Visitor Programme and Alternative Strategies

As with so many organisations worldwide, the Covid-19 pandemic has continued to cause significant interruption to the charity’s activities. Although it was hoped that the visitor programme originally planned for 2020 might be revived during 2021 so that as many as possible of those academic visitors due to arrive in London during 2020 could still be accommodated, this programme has been further deferred to 2022, for which the outlook now looks more promising.

Accordingly, the usual Appendix listing the grants that would otherwise have been made during 2021 is not included with this report and the financial statements.

At the time of writing (March 2022) the Trust thus plans to resume its programme of visits and has begun planning to accommodate all those who had originally been invited to London during 2020 between May and November 2022. A total of 26 students from countries including Croatia, Egypt, Lithuania, Poland, Russia and Spain have received invitations. As Covid-19 remains a threat and those who are unvaccinated are therefore significantly more likely to catch the virus and to spread it to others, in light of the disruption this would cause to any visit to London, and the risk it would pose to the permanent residents in the Trust’s houses, the Trust has decided not to support visits for anyone not fully vaccinated. The Director, Coordinator and Trustees will continue to monitor the rules for travel to the UK and have asked visitors to do likewise. At present it is unclear what, if any, effects the hostilities in Ukraine will have on the Trust’s programme and in particular on those visitors coming from countries which are affected (directly or indirectly); Trust officials will also continue to monitor this situation closely. In light of the difficulties encountered by some prospective visitors in securing visas to enter the UK, the Trust has for some time been considering offering fewer short-term visits, in favour of longer stays in London, of six months to one year. The climate emergency and Covid-19 situation, and consequent importance of minimising air travel and additional obstacles to travel including visa applications, Covid-testing, isolation etc, has made such a shift in focus even more desirable, and the Trustees will be reviewing options during 2022.

The charity has in the meantime continued to promote its objectives within the constraints caused by Covid-19, including further development of existing links with the RCM. Support provided during 2021 has included:

Augmenting the MMus residency award, with a further grant to David Hedley of £500 towards online concert expenses;
Continued accommodation in Kensington provided at a concessional rent for a music undergraduate from Portugal (José Teixeira) to enable studying bass trombone at the RCM;
A contribution of £1,000 towards the cost of John Paul Jennings’s participation during May 2021 in both an opera master class in the Czech Republic and an international opera conducting competition in Bulgaria; and
Special grants of £10,000 to the RCM’s music scholarship programme, of which £5,000 has been awarded to Anibal Vidal, a Chilean composer studying for the Art Diploma in Composition. The other £5,000 relates to the first “Jean Middlemiss Award”, being made by the RCM to Elena Accogli, a third year student of the viola.

Financial review

The results for the year are set out in the attached financial statements, which have been prepared in accordance with the accounting policies set out on pages 9 and 10 and comply with the charity's trust deed and applicable law.

The income and expenditure of the general fund is set out on page 7. Income, including the above mentioned legacy, amounted to £452,031 (2019: £58,685). Expenditure amounting to £74,952 (2020: £86,315) includes £33,694 (2020 £41,184) incurred on completion of the refurbishment programme for the property at Highgate, in line with the total budgeted cost of £75,000.

The retained funds as at 31 December 2021 amounted to £7,425,000 (2020: £7,035,853). The net movement in funds, increased by £389,147 (2020 reduced by £34,184), reflects principally the legacy income net of the 2021 refurbishment costs incurred in 2021 at Highgate.

The returns on investment property and financial investments achieved are considered by the Trustees to remain satisfactory against a backdrop of volatile markets.

Overall, the charity’s balance sheet has acquired greater strength and liquidity during 2021, with refurbishment of its properties now concluded for the time being. This should enable a broadening of the scope for both the resumption of the visitor programme and support for longer term residency and other beneficiaries.

Reserves Policy

It is the policy of the charity to maintain unrestricted funds, which are free reserves of the charity (excluding listed investments and chattels held as fixed assets), of sufficient liquidity to cover approximately 12 months expenditure. After allowing for anticipated property maintenance, this should ensure funds will remain available to meet management, administration and support costs as well as enabling commitment to the planned programme of grants for the coming year.

Risk management

The Trustees take this area seriously and have considered the risks faced by the Trust. These include the risk of fraud and error, catastrophe, and reputational risks amongst others. Regular review and updating by the Trustees of the relevant procedures and processes already in place are designed to mitigate these risks.

In the opinion of the Trustees, the key risk to the Trust continues to be ensuring that sufficient income can be generated to sustain a capability to meet property maintenance costs as and when required.

Plans for the future

In accordance with the objects of the charity, and as outlined above, the Trust fully intends to resume its programme of grants to academic visitors during 2022, once the various Covid-19 restrictions have receded, but also to the extent that other uncertainties affecting the global outlook, and hence potential limitations on travel, will allow.

As also indicated above, the manner in which the charitable objectives are realised is thus expected to be modified to optimise opportunities in the light of these uncertainties, as underpinned by completion of the charity’s property refurbishment programme. This is expected in due course to enable fuller use of the accommodation available, including over the winter months, than was previously practicable.

Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

Select suitable accounting policies and then apply them consistently;
Observe the methods and principles in the Charities SORP 2015 (FRS 102);
Make judgements and estimates that are reasonable and prudent;
State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
Prepare the financial statements on the going concern basis unless it is inappropriate to presume the charity will continue in operation.

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

Approved by the Trustees and signed on their behalf by:

S J A Stuart-Smith

Date: 28 March 2022

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ROBERT ANDERSON RESEARCH CHARITABLE TRUST

I report on the accounts for the year ended 31 December 2021 set out on pages 8 to 13.

Respective responsibilities of the Trust and examiner

The trustees are responsible for the preparation of the accounts. The 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.

It is my responsibility to:

examine the accounts under section 145 of the 2011 Act;
follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
state whether particular matters have come to my attention.

Basis of independent examiner’s report

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

which gives me reasonable cause to believe that, in any material respect, the requirements:
to keep accounting records in accordance with section 130 of the 2011 Act; and
to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act

have not been met; or

to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

C E Osborn ACA

Brook Cottage Petworth Road Haslemere Surrey GU27 3BG

Date: 28 March 2022

THE ROBERT ANDERSON RESEARCH CHARITABLE TRUST

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Restricted Notes Funds Funds	Unrestricted Restricted Notes Funds Funds	Unrestricted Restricted Notes Funds Funds	Unrestricted Restricted Notes Funds Funds	Unrestricted Restricted Notes Funds Funds		Total 2021 £	Total 2021 £	Total 2020 £	Total 2020 £
Income from:
Donations and Legacies
Annual receipts under gift aid	125			-		125			125
Other donations receivable	1,668			-		1,668			-
Legacies	420,000			-		420,000			1,011
Investment income
Interest receivable	18			-		18			397
Dividends receivable	1,725			-		1,725			1,725
Rental income	-			28,495		28,495			55,427
Total income	423,536			28,495		452,031			58,685

Expenditure on:
Cost of raising funds
Property maintenance costs 3		-		56,618			56,618		71,789
Charitable activities
Academic grants		11,500		-			11,500		7,098
Support costs 4		6,834		-			6,834		7,428
Total expenditure		18,334		56,618			74,952		86,315
Net income / (expenditure) before gains / (losses) on investments

	405,202

Other recognised gains and losses
Realised gain on disposal of listed investments 6			-			-		(3,151)
	-
Unrealised gain on revaluation of investment property 5			-			-		-
	-
Net unrealised gains / (losses) on listed investments 6			-			12,068		(3,403)
	12,068
			(28,123)			389,147		(34,184)
	417,270
Transfer between funds	(28,123)		28,123			-		-

Net movement in funds	389,147		-			389,147		(34,184)
Reconciliation of funds

Total funds brought forward	2,359,829		4,710,208		7,035,853			7,070,037
Total funds carried forward			4,710,208		7,425,000			7,035,853
	2,748,976
The notes on pages 10 to 13 form part of these accounts.

THE ROBERT ANDERSON RESEARCH CHARITABLE TRUST

BALANCE SHEET AS AT 31 DECEMBER 2021

ALANCE SHEET S AT 31 DECEMBER 2021	ALANCE SHEET S AT 31 DECEMBER 2021	ALANCE SHEET S AT 31 DECEMBER 2021
Unrestricted Restricted Notes Funds Funds £ £			Total 2021 £	Total 2020 £
Fixed Assets
Investment properties 5	2,375,000	4,375,000	6,750,000	6,750,000
Listed investments 6	82,652	-	82,652	68,859
Tangible fixed assets 7	37,715	-	37,715	37,715
	2,495,367	4,375,000	6,870,367	6,856,574
Current Assets
Debtors 8	100	-	100	75
Cash at bank and on hand 9	556,846	-	556,846	181,212
	556,946	-	556,946	181,287
Creditors: Amounts falling due within one year 10	2,313	-	2,313	2,008
Net Current Assets	554,633	-	554,633	179,279

Total assets less current liabilities	3,050,000	4,375,000	7,425,000	7,035,853

Inter-fund balances	(335,208)	335,208	-	-
Total Net Assets	2,714,792	4,710,208	7,425,000	7,035,853
Funds of the Charity
Unrestricted funds	841,643	-	841,643	452,496
Restricted funds – permanent endowment	-	2,288,771	2,288,771	2,288,771
Revaluation reserve – freehold properties	1,873,149	2,421,437	4,294,586	4,294,586
Total Funds	2,714,792	4,710,208	7,425,000	7,035,853

Approved by the Trustees on 28 March 2022 and signed on their behalf by:

S J A Stuart-Smith Miss E K Gray

A C Berendt

The notes on pages 10 to 13 form part of these accounts

THE ROBERT ANDERSON RESEARCH CHARITABLE TRUST

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 ACCOUNTING POLICIES

1.1 Basis of preparation

The Robert Anderson Research Charitable Trust is a registered charity with the Charity Commission in the United Kingdom. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities is to apply the capital and income of the Trust to advance the education of under-graduate and post-graduate students, whether from the United Kingdom or overseas, by the provision of financial grants and research facilities to enable them to study in the fields of historical, archaeological, artistic and scientific research.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) as amended by bulletin 1, the Charities Act 2011, and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, the functional currency of the charity, and rounded to the nearest £.

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

1.2 Funds

Unrestricted general funds are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

The restricted fund represents investment property gifted by the Founder under a permanent endowment, to be held as capital which is not to be converted to income.

1.3 Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Donations are included in full in the Statement of Financial Activities when receivable.
Tax reclaimable in respect of deeds of covenant is accounted for when the income giving rise to the reclaim of tax is received.
Investment income is included when receivable.
Dividend and interest income is accounted for on an accruals basis.

Legacy income is recognised in the Statement of Financial Activities provided that sufficient information has been received to enable valuation of the charity's entitlement.

1.4 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

1.5 Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Investment properties are measured at valuation less impairment, subject to revaluations every 5 years, the most recent being undertaken in 2019.

1.6 Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

1.7 Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

2 TRUSTEES’ REMUNERATION AND STAFF COSTS

The Trustees neither received nor waived any emoluments. Trustees’ expenses paid during the year were £nil (2020: £nil).

Although the Trustees did not employ any staff, the Coordinator is provided with rent free accommodation at Highgate, necessary to enable him properly to assist with visitor programmes at the properties in London and to carry out associated trust administration. In addition, the Director was awarded an honorarium of £5,000 (2020: £5,000).

3 PROPERTY MAINTENANCE COSTS Council tax and water rates Buildings insurance Utilities Repairs and maintenance 4 SUPPORT COSTS Bank Charges Honorarium for director Independent examination fee Trustees’ travel expenses Other expenses 5 FIXED ASSET INVESTMENT PROPERTIES Unrestricted Funds £ Freehold property: Opening market value 2,375,000 Net unrealised gains/(losses) on revaluation - Closing market value 2,375,000			2021	2021
			£
			7,734
			3,033
			9,209
			36,642
			56,618

				2021
				£
				84
				5,000
				1,750
				-
				-
				6,834


	Restricted		Total
Funds	Funds		2021
£	£		£
	4,375,000
2,375,000
	-	-
-
2,375,000	4,375,000	6,750,000

Restricted Funds represents property under a permanent endowment. The freehold property was valued during 2019 on the basis of, and subject to, the ongoing tenancies.

6 FIXED ASSET LISTED INVESTMENTS Opening market value Investment additions – reinvested dividends Investment disposals – proceeds Net unrealised gains / (losses) Net realised gains / (losses) Closing market value 7 TANGIBLE FIXED ASSETS Library and sundry chattels – at cost 8 DEBTORS Income tax recoverable	2021 2020 £ £	2021 2020 £ £
	68,859 84,165
	1,725 1,725
	- (10,477)
	12,068	(3,403)
	-	(3,151)
	82,652	68,859
	2021 £	2020 £
	37,715	37,715
	2021 £	2020 £
	100	75

2021 £	2021 £	2020 £	2020 £
6,834		13,089
550,012		168,123
556,846		181,212
	2021 £		2020 £
	2,313		2,008