BUSINESS ## Scottish Solicitors’ ## Benevolent Fund Annual Report and Financial Statements for the year ended 31 October 2024 Charity registration number SC000258 Scottish Solicitors’ Benevolent Fund 2024 1 BUSINESS ## CONTENTS Trustees’ report ....................................................................................................................................... 3 Trustees’ responsibilities ......................................................................................................................... 6 Independent examination report to Trustees of Scottish Solicitors’ Benevolent Fund ........................... 7 Statement of financial activities ............................................................................................................... 8 Balance sheet ......................................................................................................................................... 9 Notes to the financial statements .......................................................................................................... 10 Scottish Solicitors’ Benevolent Fund 2024 2 BUSINESS ## Trustees’ Report The trustees have pleasure in submitting their annual report and financial statements for the year ended 31 October 2024. ## Reference and administrative details The Scottish Solicitors’ Benevolent Fund was founded by a deed of trust. Its governing instrument is the trust deed and is managed by the Benevolent Fund Committee. The trustees are those individuals holding specific posts at the Law Society of Scotland (LSS) and the Scottish Law Agents Society (SLAS) as set out in the trust deed. ## Charity name Scottish Solicitors’ Benevolent Fund Charity registration number SC000258 Registered office 89 Glasgow Road Edinburgh EH12 8LJ Trustees ## Governing document The Benevolent Fund is a charitable trust and is governed by its trust deed. ## Administration Members of the Benevolent Fund Committee are appointed to deal with the day to day administration of the fund. The members of that committee shall not be less than seven in number. The president and vice president of the Law Society of Scotland and the president and secretary of the Scottish Law Agents Society shall be ex-officio members of the committee. At least two further members of the committee shall be nominated provided always that the balance of membership between the two societies is maintained. From that number, a convener of the committee shall be nominated to hold office at the pleasure of the committee. For the avoidance of doubt, members of the committee other than the ex-officio members need not be member of the Councils of either society. The funds and assets shall be administered by the management accountant of the Law Society of Scotland and the secretarial duties will be performed by the secretary of the Scottish Law Agents Society. Scottish Solicitors’ Benevolent Fund 2024 3 BUSINESS ## Trustees’ Report (continued) ## Bankers The Royal Bank of Scotland, 36 St Andrew Square Edinburgh EH2 2AD Independent Examiner Johnston Smillie Ltd. 5 South Gyle Crescent Lane Edinburgh, EH12 9EG Investment Advisors Investec Wealth & Investment Limited 5 George Square Glasgow, G2 1DY ## Structure, governance and management The Scottish Solicitors’ Benevolent Fund is a charitable trust governed by its trust deed. It has been entered into the Scottish Charity Register and is entitled, in accordance with section 13(1) of the Charities and Trustee Investment (Scotland) Act 2005, to refer to itself as a charity registered in Scotland. The Benevolent Fund Committee meets twice a year and makes all of the significant decisions in relation to the charity; day-to-day administration is delegated to the management accountant of the Law Society of Scotland and the secretary of the Scottish Law Agents Society. New trustees are appointed by the Benevolent Fund Committee from individuals of the respective societies possessing the relevant skills. Induction and training of new and existing members is dealt with as required. ## Objectives, activities and achievements The fund is intended to assist solicitors qualified in Scotland, or their dependants, who are in need of financial assistance and whose circumstances meet the criteria set by the trustees for the payment of grants. In light of this overarching objective, the Benevolent Fund Committee does not set annual objectives. ## Grants policy With consideration to the aim of the fund, potential beneficiaries are invited to complete the grant application form and submit to the trustees. This document is then considered in detail, so as to determine the suitability of the individual circumstance. A decision is then made on whether the grant application has been successful, and where appropriate, subsequent level of award. During the year, 8 grants were distributed to 6 individuals (2023 - 15 grants to 9 individuals) from general funds, and 2 grants were distributed to 2 individuals (2023 - no grant was distributed) from the Tod Endowment restricted fund. Scottish Solicitors’ Benevolent Fund 2024 4 Trustees, Report {continued) Financial review The Trust5 total income for the year wa5 £41,044 (2023.. £26,980). Contribution5 lotalling £7,500 from the Tod Endowment Fur￿ had been received in 2024 (2023.. £14,250). There was a net inerease in funds of £54,921 in the year12023: net decrease £10,629). Total funds at 31 October 2024 stood at £353,66912023'. £298,748}, ofwhieh unrestricted funds were £240,40012023'. £191,197). Reserves policy The Trustees have considered the level of free reserves required by the Fund should be sufficient to generate investment income of at least £10,000 per annum in order to minimise reductions in capital from charitable expendI￿re. Reserve levels are monrtored at each meeting. Al 31 October the free reserves. including investments. were £240,400 {2023'. £191,197). Risk policy The trustees examine the operational and busines5 risks that the charity faces and have established systems to mitigate the significant risk5. The principal risk is financial and exposure to stock market ffluctuations which in tum impacts on reserves. In the opinion of the Trustees such risk is being monitored adequately with reference to the balanee be￿een cash and sums invested, and the risk profile of the investment portfolio. Investment policy The investments are operated under delegated powers by investment brokers appointed by the trustees. Income is re-invested and the portfolio is considered low risk. Plans for future periods The tru5tee5 intend to continue to provide support to solicitors qualified in Seotland, or their dependants, who are in need of financial a5SiStance, in accordance with the objective5 of the eharity. Disclosure of information to independent examiner The trustees who held office al the date of approval of this trustees, report. cOnfi￿n that. so far as they each are aware, there is no relevant audit information of which the charity's independent examiner is unaware,. and each trustee has taken all the steps that they ought lo have taken as a trustee lo make themselves aware of any relevant audit infomiation and to establish that the ¢harty's independent examiner is aware of that infomiation. Dale." 10 June 2025 Scottish Solicrtors Benevolent Fund 2024 BUSINESS ## Trustees’ Responsibilities The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations. Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 charity and of the incoming resources and application of resources, including the income and expenditure, 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; - make judgements and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - 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 adequate accounting records that are sufficient to show and explain the charity’s transactions and 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 and Trustee Investment (Scotland) Act 2005. 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. Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein. Scottish Solicitors’ Benevolent Fund 2024 6 BUSINESS Statement of financial activities (incorporating income and expenditure account) I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 October 2024 which are set out on pages 8 to 16. ## Respective responsibilities of Trustees and examiner The charity’s Trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The charity Trustees consider that the audit requirement of Regulation 10(1) (a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1) (c) of the Act and to state whether particular matters have come to my attention. ## Basis of independent examiner’s statement My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. 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 seeks explanations from the Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. ## Independent examiner’s statement In the course of my examination, no matter has come to my attention: 1. which gives me reasonable cause to believe that in any material respect the requirements: - to keep accounting records in accordance with Section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; - and to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations; have not been met; or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached Member of the Institute of Chartered Accountants in England and Wales Johnston Smillie Ltd 5 South Gyle Crescent Lane Edinburgh EH12 9EG Date: 18 June 2025 Scottish Solicitors’ Benevolent Fund 2024 7 Statement of financial activities (incorporating income and expenditure account} for the year ended 31 October 2024 Notè Unrestricte¢J Restricted Endowment 2024 2023 Income.. Invsstmant Income 12,538 21.006 33.544 12,538 28.506 41,044 12.200 14.780 26.980 Donations 7.500 7.500 Income Exp8ndltur8.' Raising fund5 Charitable acb'vities 17,9871 8.645 116,6321 17,9871 114,8121 10.427 9.774 118,4141 124,5861 1.782 11,782 Expgnditur• (Lossesllgains Net raallsod Ilossygaln on dlsposal of Inv6stm&nts Net unreali5ed Ilossygain on investments Net Ilossesllgains 315 315 10,557 31.976 23.580 32.291 113.0231 31.976 32.291 Net movement in funds 49,203 5,718 54,921 110,6291 Balance brought YO￿ard at 1st Novèmber 191,197 92,551 15,OCMJ 298,748 309,377 Balance carried forward at 31st October 240,400 15.01)0 353,669 298.748 All of the charity's activities are continuing. The notes on pages 10 to 16 forn part of these financial statements. Scottish Solicrtors Benevolent Fund 2024 Balance sheet as at 31 October 2024 Note 2024 2023 Flx8d Assèts Invèstmants at martet valua 344,383 298,760 CuThent Assets Debtors and accrued Incoma Cash at Bank on dèwt 15,037 15.059 20.069 20.069 Current Liabilitios Sundry credltors 5,773 20,081 Net Currènt Assets 9,286 1121 Not Ass•ts 353,669 298,748 Represented by.. Unrestricted Funds 240.400 98,269 15,000 353,669 191.197 92,551 15,000 298,748 Rostricted funds Parmanant Endowmant Funt1 Total fun(Is The T￿leS on pages 10 to 16 fomi part oflhese financial statements. Scottish Solicrtors Benevolent Fund 2024 BUSINESS ## Notes to the Financial Statements ## 1. Accounting policies The following accounting policies have been applied consistently in dealing with items which are considered material to the financial statements. ## Basis of accounting The financial statements have been prepared on a going concern basis in accordance with applicable accounting standards and under the historical cost convention modified to include listed investments at fair value. The charity was founded by trust deed and is a Public Benefit Entity with the registered office as noted on page 3. The financial statements are compliant with the charity’s constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Statement of Recommended Practice (SORP) FRS 102 “Accounting and Reporting by Charities” (revised 2019), and in accordance with Financial Reporting Standard 102 (FRS 102). The financial statements are prepared in Sterling, rounded to the nearest pound, which is the functional currency of the charity. ## Going Concern The Trustees have examined the amount of free reserves available and determined that there are sufficient funds to comply with the reserves policy. To the Trustees’ knowledge there are no material uncertainties which would prevent the charity from operating for 12 months from the date of signing this report. ## 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 ## Interest and dividends Interest and dividends are shown inclusive of any tax credit which may be recoverable by the fund and are brought into account in the year in which they are receivable. ## Permanent endowment fund The principal sum of £15,000, described as the Alexander Stone Foundation Fund, is unavailable for distribution among beneficiaries of the Benevolent Fund. However, any income accrued on this fund is available for distribution. ## Restricted fund Donations which are received subject to conditions imposed by the donor are classified as restricted funds. ## Unrestricted funds These funds are expendable at the discretion of the trustees in furtherance of the objectives of the charity. Scottish Solicitors’ Benevolent Fund 2024 10 BUSINESS ## Notes to the Financial Statements (continued) ## 1. Accounting policies (continued) ## Income The charity welcomes donations from all sources. The majority of income is derived from donations from members of the Law Society of Scotland and Scottish Law Agents Society. Income is recognised when there is entitlement, probability of receipt and the value can be measured reliably. ## Expenditure and irrecoverable VAT The trustees review all applications for grants payable in the furtherance of the charity's objects twice a year. The principal aim is to distribute a significant proportion of annual income to needy beneficiaries. Grants are recognised when approved. All other expenditure is minimal and is categorised as either support costs (advertising and administration costs) or governance costs (independent examination fees). All expenditure includes irrecoverable VAT. A number of staff employed by the Law Society of Scotland provide general support for the charity’s administrative functions. However, the value of donated services in monetary terms cannot be reliably measured and are therefore not included in these financial statements. ## Taxation The fund is recognised by HM Revenue & Customs as a charity for the purposes of section 505 of the Income and Corporation Taxes Act 1988 and is exempt from taxation on its charitable activities. ## Cash and cash equivalents Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## Debtors Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due. ## Creditors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. ## Financial instruments Other than investments, the charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Scottish Solicitors’ Benevolent Fund 2024 11 Notes to the Financial Statements {continued I 2.Income Unrostricted runds Restrictsd funds Total 2024 Investment Income Donationg Total 12.538 21.006 33.544 12.538 28.5( 41.044 7.500 7.500 Unrestricted funds Restrictèd funds 2023 Total Invèstmant Incoma DonaUons Total 12,200 530 12,730 12,200 14,780 26,980 14,250 14,250 A restricted donation of £7,50012023: £14.250} was received from the Tod Endowment Fund. 3. Expenditure Unrestricted runds Restricted runds Raising Funds 2024 Total Support Costs Total 7.987 7.987 7.987 7,987 Unrestricted runds Restricted runds Raising Funds 2023 Total Support Costs Total 14.812 14.812 14.812 14.812 Scottish Solicrtors Benevolent Fund 2024 12 Notes to the Financial Statements {continued I 3. Expenditure (continued I Unrestricted funds Restricted fijnds Total Charitable Activities 2024 Grants awarded to individuals Totsl 8.645 8,645 1.782 1,782 10.427 10,427 Unrestricted funds Resliicted fvnds Charltablè Aetlvltlos 2023 Total Grants awarded to Individuals Total 9,774 9.774 9,774 9.774 Unrestricted funds Restricted funds Analysls af Support Costs 2024 Total Govemance Investrnant manag•ment f8 Independent examination fee Total 4,209 3,328 450 7.987 4,209 3,328 450 7.987 Unrestricted lunds Restricted funds Analysis of Support Costs 2023 Total Govemance Investsnant managèmont laa Independent examination feo Total 10,504 3,108 1,200 14.812 10.504 3,108 1,200 14.812 Unrestricted funds During the year, 8 grants were distributed to 6 individua15 totalling £8,645 {2023.. 15 grants to 9 individuals totalling £9,774). Restricted funds In the cu￿ent year, 2 grants were distributed to 2 individuals totalling £1,782 {2023.' no grants were distributed}- Governance costs Govemance eosts inelude amounts paid to the Scottish Law Agents Society for administering the funds. Scottish Solicrtors Benevolent Fund 2024 13 Notes to the Financial Statements {continued I 4. Staff costs The charity has no employees in either the current or previous year. The trustees (who are considered to be key management) received neither emoluments nor reimbursement of expenses in either the current or previous year. A number of staff employed by the Law Society of Scotland provide general support for the charity's nd raising and administrative functions. However. the value of donated services in monetary tenms cannot be reliably measured and are therefore not included in these financial statements. 5. Investments Unrestricted funds Restricted fund5 Pemianent endovnnent fund Total 2024 Market value at the beginning of the year Additions Disposals at opening market value Unrealised gainlllossl Market value at the end of the year 205,459 33,428 {19,8301 32,025 251.082 78.301 15,000 298,760 33,428 {19,830) 32,025 344,383 78,301 15,000 Unrestricted funds Restricted funds Permanent endowment fund 2023 Total Market value at the beginning of the year Additions Disposals at opening market value Unrealised Ilossllgain Market value at the end of the year 217,311 36,383 {24,6551 23.5801 205,459 78.301 15.000 310,612 36,383 (24,6551 123,5801 298,760 78.301 15.000 The historical cost of the listed investments at 31 October 2024 was £307,37712023'. £293,736). The listed investments are valued monthly to market value Imid-market closing value). 2024 2023 Equ(ties Fixed Interest Altemative Assets Propety Cash 61.33 25.30 7.06 3.76 2.55 100.00 58.91 23.12 9.71 4.00 4.26 100_00 At 31 October 2024 there are no holdings representing more than 5% of the total portfolio value. At 31 October 2023 there are no holdings representing more than 5% of the total portfolio value. Scottish Solicrtors Benevolent Fund 2024 14 Notes to the Financial Statements {continued I 6. Net Assets Unrestricted funds Restricted funds Permanent endovmient fund Total 2024 Investments Cash at bank Debtors Credttors 236,832 9,319 22 15,773} 240.400 92,551 5,718 15,000 344,383 15,037 22 {5,773) 353,669 98.269 15.000 Unrestricted funds Restricted funds Pernianent endowment fund Total 2023 Investments Cash at bank Debtors Creditors 205,459 5,819 78,301 14,250 15.000 298,760 20,069 (20,0811 191.197 120,0811 298.748 92,551 15.000 7. Funds Balance at I November 2023 Income Expenditure Gainsl Ilosses) Funds at 31 October 2024 Unrestricted Funds Restricted Funds Permanent Endowment Fund Total 191.197 92,551 15.000 298,748 33.544 7,500 116,6321 {1,7821 32,291 240,400 98,269 15,000 353,669 41,044 118,414) 32,291 Balance at 1 Novernber 2022 Income Expenditure Gainsl Ilosses) Funds at 31 October 2023 Unrestricted Funds Restricted Funds Pemianent Endowment Fund Total 216.076 78,301 15.000 309,377 12.730 14,250 (24,586} 113.023} 191,197 92,551 15,000 298,748 26,980 124,586) 113,023) Scottish Solicrtors Benevolent Fund 2024 15 BUSINESS ## Notes to the Financial Statements (continued) ## 7. Funds (continued) Restricted funds comprise funds received from the Tod Endowment Fund, a charity registered in Scotland. The fund is available for distribution among necessitous Scottish solicitors for the provision of holiday relief to be taken within Scotland. Charges for advertisements and administrative costs can be applied to the fund. The income derived from funds held is recognised in unrestricted funds. The permanent endowment fund represents the Alexander Stone Foundation Fund. The income derived from this endowment is recognised in unrestricted funds. ## 8. Related party transactions ## Law Society of Scotland Two trustees of the Scottish Solicitors’ Benevolent Fund are also employees of the Law Society of Scotland and two trustees are members of the Council of the Law Society of Scotland. At the year-end, £0 was due from the Scottish Solicitors’ Benevolent Fund to the Law Society of Scotland (2023: £10,058). ## Scottish Law Agents Society Two trustees of the Scottish Solicitors’ Benevolent Fund are also office bearers of the Scottish Law Agents Society. During the year, charges for services amounting to £4,000 (2023: £3,500) were made from the Scottish Law Agents Society. The charity is administered by the Law Society of Scotland and the Scottish Law Agents Society. The costs for administration including the external independent examination of the charity are charged to the Scottish Solicitors’ Benevolent Fund. Governance costs include amounts paid to the Scottish Law Agents Society for administering the funds and advertising fees for appealing for donations and applicants. Law Society of Scotland provides administration services to the charity for no consideration. Scottish Solicitors’ Benevolent Fund 2024 16