Watsonian Benevolent Fund Trustees’ report and accounts Charity Number: SC001821
31 July 2024
Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Contents
| Page | |
|---|---|
| Fund information | 1 |
| Trustees’ annual report | 2 |
| Statement oftrustees’ responsibilities | 4 |
| Independent Examiner's report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | vs |
| Statement of cash flows | 8 |
| Notestotheaccounts | 9 |
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Fund information
Principal office
Trustees (Claims Sub Committee)
Bankers
The Royal Bank of Scotland plc 36 St Andrew Square, Edinburgh EH2 2YB
Investment Advisers
Brewin Dolphin Atria One, 144 Morrison Street, Edinburgh EH3 8EX
Independent Examiner [iT
Gibson McKerrell Burrows Limited
28 Rutland Square, Edinburgh EH1 2BW
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Trustees’ annual report
Year ended 31 July 2024
The trustees present their annual report and accounts for the year ended 31 July 2024. Charity information is shown on page 1.
Structure, governance and management The Watsonian Benevolent Fund was founded by Deed of Trust dated 4 July 1946. A new Deed was adopted in substitution of earlier Deeds on 24 January 2023. The Charity is registered as a Scottish charity (charity number SC001821) with the Office of the Scottish Charity Regulator.
The trustees meet regularly to consider applications received. The Trustees review the applications received and grants will be awarded based on their consideration of the application and whether it fits with their grants policy.
The trustees who acted at any time during the year were as follows:
Training of trustees
Trustees have been briefed and updated on relevant changes in legislation and financial procedures and are aware of the new requirements and guidelines to the performance of trustees.
Risk assessment
The trustees have considered during the year the risks which the Trust faces, in particular those related to the financial and investment operations of the Trust, and are satisfied that systems are in place to minimise these risks. A risk register has been compiled and is reviewed on an annual basis.
Objectives, activities and achievements
The object of the Watsonian Benevolent Fund is to provide relief for former pupils and members and former members of staff of George Watson's College and their dependants who may be in circumstances requiring financial or other aid. Applicants are required to make written application for relief stating their circumstances and the grounds on which they claim relief from the Fund. Applications are reviewed by the Claims Sub-Committee which has power to make grants immediately in case of urgency, or to refer them to the Committee. During the year, the Trust awarded 3 grants (2023 - 4) totalling £6,763 (2023: £11,540). Details of grants are given in note 6 to the accounts.
The Trust's income from investments in the year totalled £13,960 (2023 - £15,335).
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
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Trustees’ annual report (continued)
Year ended 31 July 2024
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Financial review
The result for the year is set out in the statement of financial activities on page 6. The trustees consider operations to be satisfactory.
Investment policy and performance
The investment strategy pursued by the Trust is to balance income and capital growth. This policy is to enable the Trust to cover all expected grants payable within the period while limiting the fisk of financial exposure, and to date, the investment portfolio has performed in excess of this strategy.
Reserves policy
The trustees consider the free reserves of the Trust to be defined as total unrestricted funds. At 31 July 2024, the free reserves stood at £564,135 (2023 - £512,894). The Trust needs to hold a small amount of reserves (£5,000) to cover the governance and support costs. However, the main reason for holding reserves is to ensure that the Trust has sufficient incoming resources to fund the current level of grants which are made, as it is believed that the current level of grants is a good indicator of the level of future grants.
It is therefore the trustees’ policy to maintain the level of funds under management at such a level in order to maximise the total return on these to the Trust and therefore the amount available for ultimate distribution. In the current year, investment income stood at £13,960 (2023 - £15,335). The level of income is therefore generally in line with the level of grants made and it is the trustees’ intention to monitor this year on year.
Plans for future periods
The trustees aim to continue to support the beneficiaries.
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Approved by the Trustees and- on its behalf by:
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Trustee
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5 may 2025
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Statement of 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 GenerallyAccepted Accounting Practice).
The law applicable to charities in Scotland 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 its 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 of the applicable 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
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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 to enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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.
The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Independent Examiner’s report to the trustees of the Watsonian Benevolent Fund
| report on the accounts of the charity for the year ended 31 July 2024 which are set out on pages 6 to 13.
Respective responsibilities of trustees and independent examiner
The charity's Committee 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 (as amended). The charity's Committee consider that the audit requirements 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 Charities Accounts (Scotland) Regulations 2006 (as amended). 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 Committee concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently | 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
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(1) which gives me reasonable cause to believe that in any material respect the requirements: (a) to keep accounting records in accordance with section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
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(b) 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 a Independent Examiner Gibson McKerrell Burrows Limited 28 Rutland Square Edinburgh EH1 2BW
Relevant Professional Body: Institute of Chartered Accountants of Scotland
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S May 2025
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Statement of financial activities
for the year ended 31 July 2024
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|||||||
|---|---|---|---|---|---|
|Note|2024|2023|
|£|£|
|Income|from|
|Donations|2|11,050|50|
|Investments|3|13,960|15,335|
|Total|income|25,010|15,385|
|Expenditure|on:|
|Raising|funds|4|(2,942)|(2,908)|
|Charitable|activities|5|(7,763)|(12,248)|
|Total|expenditure|(10,705)|(15,156)|
|Net|gain/(loss)|on|investments|36,936|(19,474)|
|Net|income/(expenditure)|51,241|(19,245)|
|Total|funds|brought|forward|512,894|532,139|
|Total funds|carried|forward|564,135|512,894|
|All|of the|charity's|activities|are|continuing.|
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The statement of financial activities includes all gains and losses recognised in the year.
All funds are unrestricted.
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Balance sheet
as at 31 July 2024
| Note | 2024 | 2024 | 2023 | 2023 | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Fixed assets | |||||
| Investments | 8 | 515,185 | 479,841 | ||
| Current assets | |||||
| Investments | 4,978 | 6,654 | |||
| Cash at bank | 9 | 45,972 | 27,399 | ||
| 50,950 | 34,053 | ||||
| Creditors | |||||
| Amounts falling due within one year | 10 | (2,000) | (1,000) | ||
| Net current assets | 48,950 | 33,053 | |||
| Net assets | 564,135 | 512,894 | |||
| Funds | |||||
| Unrestrictedfunds | 11 | 564,135 | 512,894 |
All funds are unrestricted.
These accounts were approved by the trustees on > May 2025 and were signed on their behalf
Trustee
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
| 31 July | 2024 | |||
|---|---|---|---|---|
| Statement of cash flows | ||||
| at31 July2024 | ||||
| 2024 | 2024 | 2023 | 2023 | |
| £ | £ | £ | £ | |
| Cash flows from operating activities | ||||
| Net Income/(expenditure) | 51,241 | (19,245) | ||
| Investments (gains)/losses | (36,936) | 19,474 | ||
| Income from investments | (13,960) | (15,335) | ||
| (Decrease)/increase in creditors | 1,000 | - | ||
| Cash (used in)/provided by operating activities | 1,345 | (15,106) | ||
| Cash flows from investing activities | ||||
| Investment income | 13,960 | 15,335 | ||
| Purchase ofinvestments | (115,764) | (96,347) | ||
| Proceeds from sale of investments | 117,356 | 100,205 | ||
| _ | _ | |||
| Cash provided by investing activities | 15,552 | 19,193 | ||
| Increase in cash and cash equivalents in year | 16,897 | 4,087 | ||
| Cash and cash equivalents at the beginning ofyear | 34,053 | 29,966 | ||
| Total cash and cash equivalents at end ofyear | 50,950 | 34,053 | ||
| + —}— +} —+ J | bepam — |
|||
| Cash and cash equivalents comprise: | ||||
| Cash at bank | 45,972 | 27,399 | ||
| Investments held as cash | 4,978 | 6,654 | ||
| 50,950 | 34,053 | |||
| ssssss= | p+++] |
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Notes (forming part of the financial statements) for the year ended 31 July 2024
1 Principal accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the accounts.
General information
The charity is a registered charity in Scotland and is unincorporated. The address of the
Basis of preparation
The financial statements have been prepared on a going concern basis in accordance with applicable accounting standards and under the historical cost convention. The charity is a Public Benefit Entity. The financial statements are compliant with the charity's Trust Deed, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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), (Charities SORP (FRS 102)). The financial statements are prepared in sterling, which is the functional currency of the entity.
Tangible fixed asset investments
Investments are included at market value at the balance sheet date. Realised gains and losses are the difference between sale proceeds and market value at the end of the previous year end, or purchase cost if acquired during the financial year. Unrealised gains and losses are the difference between the market value at the start and end of the financial year, or between the date of acquisition and at the end of the financial year if acquired within the financial year. Unrealised surpluses and deficits are credited or charged to the unrestricted fund at the year end.
Income
Income is recognised when the charity has entitlement, there is probability of receipt and when the monetary value of the income can be measured with sufficient reliability. Bank interest is included gross of income tax.
Expenditure
Resources expended in the statement of financial activities include expenditure of grants payable, support costs and governance costs. These are charged to either charitable activities or governance costs as appropriate, being those expenses incurred in the ordinary operations of the charity. Expenses include irrecoverable VAT.
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Notes (continued)
for the year ended 31 July 2024
1 Principal accounting policies (continued)
Grants
Grants payable are accounted for on the accruals basis.
Cash
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.
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 a 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.
Funds
All the charity's funds are unrestricted and available for its charitable purposes at the discretion of the trustees.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
2 Income from donations and legacies
| 2 | Income from donations and legacies | ||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| Individual donations | 11,050 | 50 | |
| 3 | Income from investments | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Dividends and interest from securities received | 13,307 | 15,070 | |
| Bank deposit interest | 653 | 265 | |
| 13,960 | 15,335 |
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
| Notes | (continued) | ||
|---|---|---|---|
| fortheyearended31 July2024 | |||
| 4 | Expenditure on raising funds | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Investment manager's fees | 2,942 | 2,908 | |
| p++ +++} | p—$——pm |
||
| 5 | Expenditure on charitable activities | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Grants payable (see note 6) | 6,763 | 11,540 | |
| Miscellaneous expenses | : | (192) | |
| Governance costs (note 7) | 1,000 | 900 | |
| 7,763 | 12,248 |
Staff and trustee costs
The Trust has no employees and the trustees (who are considered to be key management) receive no remuneration or expenses for work performed in connection with the affairs of the Trust.
6 Grants payable
In the year ended 31 July 2024 the Trust made specific grants as follows:
| 2024 | 2023 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| 104 | 3,163 | 2,640 | |||
| 113 | 1,200 | 1,200 | |||
| 115 | 2,400 | 2.400 | |||
| 120 | - | 5,300 | |||
| 6,763 | 11,540 | ||||
| No | No | ||||
| Number | of | grants | payable | 3 | 4 |
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Notes (continued) for the year ended 31 July 2024
| 7 | Governance costs | ||
|---|---|---|---|
| 2024 | 2023 | ||
| 2 | £ | ||
| Independent Examiner's fee | 1,000 | 900 | |
| 8 | Fixed asset investments | ||
| 2024 | 2023 | ||
| UK Equity | UK Equity | ||
| Investments | Investments | ||
| £ | £ | ||
| Market value | |||
| At 31 July 2023 | 479,841 | 503,173 | |
| Additions at cost Disposals atopening market value |
115,764 (117,356) |
96,347 (103,919) |
|
| Net unrealised investment gains/(losses) | 36,936 | (15,760) | |
| At31 July 2024 | 515,185 | 479,841 | |
| bss | ===S==== | ||
| Cost | |||
| At 31 July 2024 | 444,318 | 440,745 | |
| sees | =====>S>= |
All investments are held for investment purposes and are direct investments in listed securities.
9 Current asset investment
Current asset investment represents a cash balance held by the charity’s investment advisers.
10 Creditors
| 2024 | 2023 | ||||||
|---|---|---|---|---|---|---|---|
| £ | £ | ||||||
| Amounts | falling | due | within | one | year | ||
| Accruals | 2,000 | 1,000 | |||||
| === | ===== |
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Watsonian Benevolent Fund Trustees’ report and accounts 31 July 2024
Notes (continued) for the year ended 31 July 2024
| 11 | Reserves | ||
|---|---|---|---|
| 2024 | 2023 | ||
| £ | £ | ||
| As at 31 July 2023 | 512,894 | 532,139 | |
| Total income | 25,010 | 15,385 | |
| Total expenditure | (10,705) | (15,156) | |
| Gain.(loss) on investments | 36,936 | (19,474) | |
| Surplus/(deficit) forthe year | 51,241 | (19,245) | |
| At 31 July 2024 | |||
| 564,135 | 512,894 | ||
| 12 | Financial instruments | ||
| 2024 | 2023 | ||
| £ | £ | ||
| Carrying amount of financial liabilities | |||
| Measured at amortised cost | 2,000 | 1,000 | |
| 13 | Relatedpartytransactions |
During the year there were no related party transactions (2023: None).
14 Trustee donations
The total amount donated to the Fund during the year by trustees was ENil (2023: ENil).
15 Ultimate controlling party
The charity is controlled by its Trustees.
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