Charity registration number: 802750
Adam Smith Research Trust
Annual Report and Financial Statements
for the Year Ended 30 September 2024
Adam Smith Research Trust
Contents (continued)
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Statement of Trustees' Responsibilities | 4 |
| Accountants' Report | 5 |
| Independent Examiner's Report | 6 |
| Statement of Financial Activities | 7 |
| Balance Sheet | 8 |
| Notes to the Financial Statements | 9 to 16 |
Adam Smith Research Trust
Reference and Administrative Details
Trustees
Mr James Anthony David Lawson Charity Registration Number 802750 Principal Office 23 Great Smith Street London SW1P 3BL Independent Examiner Stuart Maurice Partnership Teknov8 House 24-26 Fowler Road Ilford Essex IG6 3UT
Page 1
Adam Smith Research Trust
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the year ended 30 September 2024.
Objectives and activities
Objects and aims
The objects of the Trust are the advancement of public education by research into applied economics, political science and philosophy, and public policy options; publishing the results of such research, providing support to students and teachers; spreading the understanding of policy issues; and collaborating with other bodies with compatible objects.
In pursuit of the trust's objectives the trustees have made a number of research grants during the year.
Fundraising disclosures
It is the policy of the Trust to maintain unrestricted reserves at a level which meets its needs.
Public benefit
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Structure, governance and management Financial instruments
Objectives and policies
The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.
Cash flow risk
The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
Credit risk
The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
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Adam Smith Research Trust
Trustees' Report (continued)
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.
Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
The annual report was approved by the trustees of the charity on 28 May 2025 and signed on its behalf by:
......................................... Mr James Anthony David Lawson Trustee
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Adam Smith Research Trust
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities 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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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 Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees of the charity on 28 May 2025 and signed on its behalf by:
......................................... Mr James Anthony David Lawson Trustee
Page 4
Accountants' Report to the Trustees on the Preparation of the Unaudited Statutory Accounts of Adam Smith Research Trust for the Year Ended 30 September 2024
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Adam Smith Research Trust for the year ended 30 September 2024 as set out on pages 7 to 16 from the company's accounting records and from information and explanations you have given us.
This report is made solely to the Board of Directors of Adam Smith Research Trust, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Adam Smith Research Trust and state those matters that we have agreed to state to the Board of Directors of Adam Smith Research Trust, as a body, in this report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Adam Smith Research Trust and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Adam Smith Research Trust has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and of Adam Smith Research Trust. You consider that Adam Smith Research Trust is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Adam Smith Research Trust. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
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Adam Smith Research Trust
Independent Examiner's Report to the trustees of Adam Smith Research Trust
I report to the trustees on my examination of the accounts of Adam Smith Research Trust for the year ended 30 September 2024.
Responsibilities and basis of report
As the charity trustees of Adam Smith Research Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Adam Smith Research Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
Since Adam Smith Research Trust's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of Association of Accounting Technicians, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of Adam Smith Research Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Midiyman
...................................... Maurice Nyman MAAT
Association of Accounting Technicians
Teknov8 House 24-26 Fowler Road Ilford Essex IG6 3UT
28 May 2025
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Adam Smith Research Trust
Statement of Financial Activities for the Year Ended 30 September 2024
| Note Income and Endowments from: Donations and legacies Total income Expenditure on: Raising funds Charitable activities Total expenditure Net expenditure Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 9 Note Income and Endowments from: Donations and legacies Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 9 |
Unrestricted funds £ 287,785 287,785 (37,000) (287,052) (324,052) (36,267) (36,267) 130,248 93,981 Unrestricted funds £ 408,026 408,026 (36,500) (272,548) (309,048) 98,978 98,978 17,264 116,242 |
Total 2024 £ 287,785 |
|---|---|---|
| 287,785 | ||
| (37,000) (287,052) |
||
| (324,052) | ||
| (36,267) | ||
| (36,267) 130,248 |
||
| 93,981 | ||
| Total 2023 £ 408,026 |
||
| 408,026 | ||
| (36,500) (272,548) |
||
| (309,048) | ||
| 98,978 | ||
| 98,978 17,264 |
||
| 116,242 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 9.
The notes on pages 9 to 16 form an integral part of these financial statements. Page 7
Adam Smith Research Trust
(Registration number: 802750) Balance Sheet as at 30 September 2024
| Note Current assets Cash at bank and in hand 8 Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 9 |
2024 £ 93,981 93,981 93,981 |
2023 £ 116,242 |
|---|---|---|
| 116,242 | ||
| 116,242 |
The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 28 May 2025 and signed on their behalf by:
......................................... Mr James Anthony David Lawson Trustee
The notes on pages 9 to 16 form an integral part of these financial statements. Page 8
Adam Smith Research Trust
Notes to the Financial Statements for the Year Ended 30 September 2024
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
Adam Smith Research Trust meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
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Adam Smith Research Trust
Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
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Adam Smith Research Trust
Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
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Adam Smith Research Trust
Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)
Debt instruments
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
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Adam Smith Research Trust
Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)
Derivative financial instruments
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
2 Income from donations and legacies
| Donations and legacies; Donations from individuals Total for 2024 Total for 2023 |
Unrestricted funds General £ 287,785 287,785 408,026 |
Total funds £ 287,785 |
|---|---|---|
| 287,785 | ||
| 408,026 |
3 Expenditure on raising funds
a) Investment management costs
| Note Allocated support costs Total for 2024 Total for 2023 |
Unrestricted funds General £ 37,000 37,000 36,500 |
Total funds £ 37,000 |
|---|---|---|
| 37,000 | ||
| 36,500 |
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Adam Smith Research Trust
Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)
Total costs £
4 Expenditure on charitable activities
| Note Governance costs Total for 2023 |
Unrestricted funds General £ 287,052 272,548 |
Total funds £ 287,052 |
|---|---|---|
| 272,548 |
Total expenditure £
5 Analysis of governance and support costs
Governance costs
| Audit fees Other fees paid to auditors Other governance costs Total for 2024 Total for 2023 |
Unrestricted funds General £ 4,500 282,552 287,052 272,548 |
Total funds £ 4,500 282,552 |
|---|---|---|
| 287,052 | ||
| 272,548 |
6 Net incoming/outgoing resources
Net (outgoing)/incoming resources for the year include:
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Adam Smith Research Trust
Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)
2024 £
7 Taxation
The charity is a registered charity and is therefore exempt from taxation.
8 Cash and cash equivalents
| 8 Cash and cash equivalents |
|||
|---|---|---|---|
| Cash at bank 9 Funds Balance at 1 October 2023 £ Unrestricted funds General 130,248 Balance at 1 October 2022 £ Unrestricted funds General 17,264 10 Analysis of net assets between funds Current assets Current assets |
Incoming resources £ 287,785 Incoming resources £ 408,026 |
2024 £ 93,981 Resources expended £ (324,052) Resources expended £ (309,048) Unrestricted funds General £ 93,981 Unrestricted funds General £ 116,242 |
2023 £ 116,242 |
| Balance at 30 September 2024 £ 93,981 |
|||
| Balance at 30 September 2023 £ 116,242 |
|||
| Total funds at 30 September 2024 £ 93,981 |
|||
| Total funds at 30 September 2023 £ 116,242 |
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Adam Smith Research Trust
Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)
11 Analysis of net funds
| 11 Analysis of net funds | ||
|---|---|---|
| Cash at bank and in hand Net debt Cash at bank and in hand Net debt |
At 1 October 2023 £ 116,242 116,242 At 1 October 2022 £ 17,264 17,264 |
At 30 September 2024 £ 116,242 |
| 116,242 | ||
| At 30 September 2023 £ 17,264 |
||
| 17,264 |
12 Related party transactions
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