Charfty Registrallon No. SC006938 (Scotland ESDAILE TRUST ANNUAL REPORT AND INDEPENDENTLY EXAMINED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ESDAILE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Clerk and Treasurè Azets Quay 2 139 Fountai￿ridge Edinbur EH3 9QG Charlty's Reglstered Address Azgts Quay 2 139 Founlainbridge Edinburgh EH3 9QG Chartered Accountsnts and Independent Examintr Steven Smiliie CA Chiene & Tail LLP Ilrading 8$ CTI Chartered Accountants 61 Dublin Street, Edinburgh, EH3 6NL Bankers CalerAl￿Th Bank 9 Nelson Street Bradford BD1 SAN Investment advisers Rathbone$- Incorptsraling Investec Wealth & Investment 10 George Street , Edinburgh, EH2 2PF Charlty nwrnber Iscotlandl SC006938 ESDAILE TRUST CONTENTS Page Govemors report Independent examinerfs report Statement of financial activities Balance sheet Notes to the financial ststemenls 9-14 ESDAILE TRUST GOVERNORS REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Governors have pleasure in submitting their annual rep(*l for the year ended 31 Augu* 2024. The financial statements have been prepa￿d in accordance with the a¢wunting TKsliae$ set out IN note 1 to the financial sl8lemenls 8nd comply with the Trust's constiluiion, the Charilles and Trustee Investment (Scolland} Act 2005, the Chanties Accounts IScotl8nd) Regulations 2006 las amended) and 'AccounliTrJ and Reporbng by ChaTlties. Statement ol Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Repo￿ng Standard applicable irt the UK and Republic of Ireland IFRS 1021" (effective 1 January 20191. Ob}ectlves and activities ObleGtiYes The objectiV6s of the Trust are the provision of grants to assisl in the education of daughters of Ministers ol the Church of Scotland. of Deacones8es Of the Church of Scotland who are Wdows and of Missionaries appolnlecl or nominaled by Overseas Council ol the Church of Scotland (now Fallh Impad Forum) who require aid to complete a ¢ourse of secondary education. to follow a course of study at any University, Central Institution. College of Education or other Institution of Higher Edu￿tIOn approved by Ihe goveming body, lo obtain special tuilw)n lor any benefiriary who shows promise in music, arts and sport or to travel or study abroad. Revlew of activltles The actvrt￿S ol the Trust are to make grants for eduealional purposes in accordance Imth 11$ objectives. Grant maklng pollcy In aGcordance wrth the objectives of the Trust grants are made for the education of daughters of Vanislers and other personnel of the Church of Scot18nd. Normally the beneficiaries are between 12 and 25 years old. The Trust is advertised widely among Ministers of the Church of Scotland and preference 15 given to those wth a low family Income. A $l￿dard applicats.on lorm is used and applications afft reviewed against predetemiined ¢rileria. A¢hlevements and performanc Achievements The Trust continues lo give grants for the educatron of daughters of the Minlsters and other personn&l of Ihe hurch of Scotland. in line wrth the clkgrilable objedives aLY)ve. Educalion grants were awarded lo support g individu81s, ranging from £100 to £3,350, and lotalling £15,688 en8bling enhanced locus on their studies by the individuals concerned 12023 - 10 grants ranging from £200 10 £3,350, tolalling £24.8251 Grants payments have remained consistent with18St year's awards. Education grants assist in training and educab'on of individuals in preparats'on for gainful employ7nenl, and contribution to the wider eGgnomy. ESDAILE TRUST GOVERNORS REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Flnancial review Flnanclal Information During the year the Trust's income amounted 10 £31,979 12023 - £27,245) and afier net grant expenditure of £15.688 (including movements for grant credilorsl {2023 £24,8251 and other expenses are deducted and movements on portfolio market value there wa5 an operating surplus on the unrestricted funds of £74,191 12023 deficl 01 £43,749}. The Govemrs reviewed the grant makn"rKJ criteria in t￿ light of prevailing cir¢umslances. There hos been a increase in the value of investments from £1,021,528 at 31 August 2023 10 £1,094.937 as at 31 ALgUSt 2024 as a result of the sland8rd valuation change$. The cash balance held by R81htrM)nes Incorporating Investfrc Wealth & Investment I"Ralhbones"l in¢re8sed from £2,379 at 31 August 2023 10 £5.462 at 31 August 2024. The investment income has increased to £31,979 from £27,245 in 2023. Al 31 August 2024 there were lotsl funds of £1.104,893 12023 £1,030,702) which wa5 made up of general unrestricted funds of £14,473 {2023 - £16,714), and designated endowment funds of £1,090,420 (2023 £1,013,988} w(th movement being due lo market movernents and operation81 ad'vity. Re$tNg5 poIIcy On o year lo year b8sls the budget for grants is bas8d on the forecast fvnds available. The amount of the grants is fixed so that all applicants who rneet the ¢nteria receive a grant. Revenue surpluses brc￿ght forward from previous years are avallable if there is a shortfall. Endowment funds are not nomally used for revenue purposes althou* there is no r8slriclion a5 Such. As a result of inve$ting lund5 received from donations and other cl)8ritses. and reinvesting the pr￿eedS of investment sales, thè Trust has accumulated frJnds over the years. In the opinion of the Trustees rt is necessary lo maintain such funds, together with any which ?rise in the I￿￿re. As a result a Designated Endowment Fund wa5 created in August 2014 to reflect the value of the Trust's investments al th81 time, and cash held by Fund Managers for investment al that lime. Such a fund should not, in the Trustees, view, be regarded as bèing available for dislribulion. However ShO￿d any defficit on the General Fund occur the Trustees have the ability to meet any future obligatsons from the Deggnated Er￿OWmenI Fund Ff required_ The Trusl allempts to maintain a cash balance in the general fund in excess of the average quarterfy expenditure which in the current year before the discrelionary payments of the educational grants is £5,652 12023 - £5,040). Total funds at the year end are included in the financial review above. Investment policy The Governors employ Rathbones as invgslmant advisors lo manag8 the portfolio on a discretionary basis The objt¢tive is one of a balanced portfolio subject to a medium degree of risk. In order to maximlse retums there are no stEcifK investment restrictions or limitations applied lo the portfdv) other than the general ethical investment principals that Ralhbones adopt for charities. The target for Income is that il should increase by at least the iale of inflation. The value of the portfolio is berthmarked against the investment advisors bespoke charity benchrnark and their representatives meet with the Board annually. Plans for future periods The Trust is working lowardg m¥ging ￿1th the Society for the Benefi'l of Sons & Daughters rjf bye Clergy of the Church of Scotland due lo falling number of yant applications and the %milar purpose of the charities. Until Ihe merger occurs the trust will conlinue to support the education of daughters of Ministers ol the Church ol Scotland in line wilh the tharitab￿ objectives. ESDAILE TRUST GOVERNORS REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Rolated parties Vvhile there is no formal relalionshlp the Trust continues lo cooperate wlh the Glasgow SDciety Df the Sons & Daughters of Ministers of the Church of SGolland and the Socièty for the Benefit of Sons & Daughters of the Clergy of the Church of Scotland in the awardlng of educational grants. Struclure> governance and management Constftutlon The Esdaile Trust Scheme 1968 was approved on 10 February 1969 by Order in Council following the closure of Esdaile School and was endowed by the amalgamation of the various lund$ whlch supported the school. Appointmenl induction and tralnlng of Governors The govemirE body consists of one ex-officio Governor who is the Procurator of the Church ol Scotland, five Governors nominated 8s follows, two by the General Assemb￿ of the Church of Scotland, one by the Presbytery ot Edinburgh, one by the Glasgow Society ol Sons & Daughtèrs of Ministers of the Church Df Scotland, one by the Society for the Benefit of Sons & Daughters of the Clergy of the Church of Scotland and up to four GovernoTS Co-opted by the ex-offiao and nominated Govemors. here 8 vacancy occurs for a nominated Governor the appropriate body is contscted to pul fcrtward a replacement. The c&opted Govemors are chosen foT their complementsry skllls and whether it is thought that they will make a valuable contribution to the management of the Trust. New Governors are provided with a copy of the Esdaile Trust Scheme, the Annual Report and Accounts 8nd are briefed as to their duts'es by the Chairman and Secretary. From lime to lime the Governor$ 8re updated on their duties and r8sponslbilit￿s. Key management personnel The Tiust considers Ihgl its key management personnel comprise the Govemors and no remuneration pay8lJe lo the key m3nag8m8nl personnel. The Trust employs no staff. Decision making process The Governors meet formally ￿ce a year and have appointed a Clgrk & Treasurer to handle day lo day administration. Rlsk management pollcy The major risks lo which Esdaile Trust is exposed as identified by th¢ Governors has been reviewed and Systems have been established lo mrtl9ale those risks. ESDAILE TRUST GOVERNORS REPORT ICONTINUED) FOR THE YEAR ENDED 31 AUGUST2024 Stalement of Governors responslbllltles The Gtsvemors are responsible for prepaiing the Govgmors Report and the financial statements In accordan wilh applicsble law and United Kingdom Accounting Stsndards (United Kingdom GenerallyAcLepled Acwunting Practi￿1. The law applicable lo charities in Scotland requires the Govemors to prepare financi81 ststements for each finan081 year which give a true and fair view ol the Slate of affairs of the Trust ancl of the incomin9 resources anil applicab'on of resources ol the Trust for that year. In pr?panng these financial statements, Ihe Govemor5 are required to.. select suitable accounting pdicies and then apply them consistenlty., observe Ihe methods and princlples in the Charitj'es SORP., - make judgements and estimates Ihat are reasonable and prudent., - stale whèthèr applicable accounts'ng standards have been followéd, subject lo any material departures disdosed and explained in the finanaal statements. and prepare the financial statements on the going concern basig unles3 il 13 inappropriate to p￿￿me that the charity will continue in operabon. The Govemors are responsible for keeping SLffi¢ient accounting records Ihal disclose wlh reasonable accuracy al any lime the fia￿101 position of the Trust and enable thgm to ensure that the financial statements comply with the Charities and TnJstee Inve61menl {Scollandl Acl 2005, the Charities Accounts Iscotlandl Reoulalions 2006 las arnendedl and the provisions ol the trust deed Thèy are also resFt)nsible for safeguarding the assets ol the Trust and hence tsklng reasonable steps for the preventIc￿ and detection of fraud and other irregularities. The Govemors report was approved by the Board of Governors. ESDAILE TRUST INDEPENDENT EXAMINER'S REPORT TO THE GOVERNORS OF ESDAILE TRUST I report on the financial statements ofthe TTUSI for the year ended 31 August 2024, which are set out on p8ges 6 10 14. This report is made lo the Governors, as a body, in accordance with the terms of my engagement. My WO￿ has bèen undertakgn to enable me lo report my opinion as set out below and for no other purposes. To the fullest extent pemiitled by law, I do not accept or assume responsibilty to anyone other than the Trust and the Govemors. as a body, for by work or for this report. Respedive responslbllities of Govemors and examlner The Trust's Governors are responsible for the preparation of the fina￿la1 statements in accordance wlh the terms of the Charities and Trustee Investments (Scolland) Act 2005 and the Charrties Accounts IS¢otlandl Regulation5 2006. The chaiity's Governors consider that the audit requirement ol Regulation 101llla} to Icl of the 2006 Accounts Regulation5 does not apply. 11 is my responsibilrty lo examine the financial statements as required under section 4411)(cl ot the Act and to *ate whether particular matter$ have come to my attention. Basls of Independent examSn•es ststement examination is Carrie￿ out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination Include$ a rewew ol the accounting records kept by the Charty and a comparison of the financi81 statements presented with those records. 11 also indudes consideration of any unusual items or disclosures in the financial stalemeT)1s, and seeks explanations from the trustees concerning any 5u¢h matters. The prO￿dureS undertaken do not provicse all the ewidence that would be requireij in an audit and consequently I do not express an audit opinK)n the view gwen by the financial ststements. Independent examin*s statement In connection %wth my examination. ￿ other matter ex￿p1 that referre(I lo in the previous paragroph has Gome lo my attention". lal which gives me rea50n&)le ￿￿Se lo believe that in any material respect the requirements.. to keep accounting records in accordan￿ with section 4411) lal of the 20QS Act and Regulation 4 01 the 2006 Accounts Regulations, and lil) to prepare financial slalements which accord with the accounting records and comply with Regulab'on 8 of the 2006 A￿UnIS Regulatfons, have not been mel or Ibl to which, in my opinion, attention shc4Jld be drawn in order lo tsnable a proper understanding of t financial slalemenls lo be reached. Chiene & T3iI LLP Ilrading as CT) Charterese whiGh have been gNen lo the Tnjsl for use in aC￿rdanCe with the wshes of donors, wmmonty for use in relation lo a specific service. There are no rèstricted funds 0131 August 2024 12023- £nill. 1.4 Incomè Income is recognised when the Trust become5 legally enlitkd to the income, receipt is probablè and the amount can be ￿lIa￿Y measured. Cash donations are recognised on receipt. Other donation$ are recognised once the Trust has been notified of the donation, unless performance conditions require deferral of the amount. Investment income interest is recognised using the effective interest rale applt¢able lo the asset Div1dend income is ￿COgniSed when the right lo receipt 13 estsblishod and is measured at the fair value. ESDAILE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng pollcies (Continued 1.5 Expondlture Exp8ndilure is reco9nised on an accruals b25is and rel8letJ where pr￿icable lo the Trust's actlvlties. Where possible. expenditure is allocated directly to the function to which il relates. Where this is not possible, il is allocated by the time spent on Ihal activity. Cost$ of iaising funds cornprise those cosls are associated wilh the gan8ralion of income ft)mi $ource8 olh&r1han undertaking ehari18ble activities. and includes investment management costs. Charitable expenditure comprises those ¢osts incurred by the Trust in the delivery of its charitable activities and services. Support costs and governance costs lindudirKJ independent examination fee$ and offices costs} are apportioned between activities or the basis ol lime spent on that activity. 1.6 Fixed ass•t Investments Quoled investments are ststed al their fair value at the reportirrfJ dale. Gains and losses arising are recognised in the ststemenl of financial activities in the period in which they arise. Realised gains and losses are calculated 85 the difference betwe￿ disposal proceeds and their opening carrying value lor acquisition value if acquired during the yearl. Unrealised gains and IDsse5 are calculated as the difference belween the fair value of the investments al the year end dale and their brought fO￿ard ￿ryIng value. adjuslad for acquisitions and disposals. The principal rlsk to the Trust is loss of capital due lo market risk on the investment porlfolp). This is mitigated by appropiiale systems and controls and the engagement of an appropriate firm ol investment advisors. The Trust antiCiP81es a long-term future and accepts the reality that financial markets are such that thè capital value of investments will flucluale during a long tirne-5cale. 1.7 Cash and ¢a¥h equivalents Cash and cash equivalents indude cash in hand. deposits hekl at call with banks, othèr short-tem) liquid investments with original malurilies of three rnonths or less, and bank overdrafts. Bank overdrafts are shown within borrDwngs in current liabilities. 1.8 Financlal ingtrumgTh1$ Financial instrLtment5 are recognised in the statement of financial po&tion when thè Trust becomes a paity lo the contra¢tual provisions of the inslrumenl. Financial instruments are Ini118lly measured al transaction price. Subsequent lo Inrtial recognition, thèy aré aecounled for as sèt oul below. Financial inslrurnenls are dassified a$ gther'ba5ic' or'otherf in a￿OrdanCe wlh Chapter 11 of FRS 102. Al the end of each reporting per￿d. debt Instruments classified as basic are measured at arnortised cost using the effeelive interest mathod. Financial assets a￿ clerecognised when the contraclual rights lo the cash flows from the asset extyre. or when the Tiust has transferred substantially all the risks and reward Df Dwrhership. Financial li8bilitEs are derecognised only once the liability has been extin9uished through discharge. cancelalv)n or expiry. 1.9 Taxation The Trust is a charity and is recognised as such by HMRC for taxation purposes. AS such there is no tax chargeable Dn income a55wated with ils charitable activities. 10- ESDAILE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST2024 Crftlcal accountlng èstlmates and Judgemènts In the application of the Trust's accounting policies, the GoverncAs are required lo make ludgemenls, estimates and assumptions about the carrylng amount of assets and liabilities that are nol readily app8￿nI from other sources. The estimates and asso¢ialed assumptions are based on historical experientt and other factors that are considered lo be relevant. Actual results may differ from these estimates. Tha estimates and underlying assumptions are reviewed on an ongoing basis Revisions lo accounl'ng estimates are recognised in the period in which 1he estimate is revlsed where the revision affects t￿lY that period. or in the period of the rev¢sion and luture periods where the revision affeds tolh current and fuiure periods. The Governors are of the opinion that Ihere are no signrficanl estimates or ju(bJemenls Ihal would have a matoriaj impact on the financwl slatemenls. Investments Unr8strlcted Unrestricled fund$ lunds 2024 2023 Dividends Interest ￿ fixed interest securities 31,907 72 26,765 460 31,979 27,245 Ralslng funds Unrestricted Endowment funds funds general 2024 Total Unrestrlcted Endowment fund5 fund$ general 2023 Total 2024 2024 2023 2023 Fundraising and publicity Support costs Investment management 4,265 4,265 8.880 4,106 4,106 6,252 8,880 6.252 4,265 8,880 13,145 4,106 6,252 10,358 11 ESDAILE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Charltablè actlvlllgs Educallonal Educational grants grants 2024 2023 Grant funding of activities Isee note 6} 15,688 24,825 Share of support ¢osls {see note 71 Share of govewnance costs {see note 71 5,130 g,137 5.166 4,635 29,955 34,626 Grants payablè EduGatlonal Educational grants grants 2024 2023 Grants to indlwduals 15,688 24,825 15,688 24,825 Support costs Support Governance costs ¢o¥ts 2024 Support Governance costs costs 2023 Finance Advertising and sundries Legal fees Independent examinalton Office costs attributed lo governance 9,139 256 9,139 256 4,801 1,548 8,798 474 8,798 474 4.801 1,548 1.702 1,702 2.788 2,788 2,933 2,933 9,395 9,137 18,532 9,272 4,635 13,907 Analy5ed be￿een Fundraising Charitable activities 4,265 5,130 4,265 14,267 4,106 5,186 4,106 9,801 9,137 4,635 9,395 9,137 18.532 9,272 4,635 13,907 12_ ESDAILE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 AUGUST 2024 Govorr￿T5 None of the Governors lor any p8rsons ¢onne¢ted with them) re￿iVed any remuneration, benefiis, or expenses from the Trust during 1he current or prior year. Employeos There were no employees during the year. 10 Net {10o8esllgain on invè$tmonts Endowmènt Endowm9nt funds funds general general 2024 2023 R8valualion of investments ILos$llgain on sals of inv8Stments 88,005 12,6931 {36.8701 10.860 85,312 126,0101 11 Fixed asset investm•nts Llsted inve$tM•nt$ Valuatlon Al 1 September 2023 Addititsns Valuation Change5 Disposal$ 1.021,528 63,092 88,005 177,6881 Al 31 August 2024 1,094,937 Carrylng amount Al 31 August 2024 1,094,937 Al 31 August 2f)23 1,021,528 12 Financial instrumgnts 2024 2023 Equity instruments measured at fair value 1.094,937 1,021,528 13- ESDAILE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 13 D•btors 2024 2023 Amounts falling due vAthln one year: Accrued Investment inccme 1,875 3,760 14 Credltors: amounts falllng due withln one year 2024 2023 Olh¥ Creditors Accruals 2,522 6.934 2,102 9,456 IS Analygis of net assets amongst funds Unrestrlcted Deslgnated lunds endowment funds 2024 Total 2024 2024 Fund balances at 31 August 2024 are represented by. Investments Current assetsllliabilitiesl 1.094,937 (4,5171 1,094,937 9,956 14,473 14,473 1.090,420 1,104,893 Unrestrlcted Deslgnated funds endowment funds 2023 Total 2023 2023 Fund balances at 31 August 2023 are represented by.. Investments Current assets 1.021.528 7,5401 1,021.528 9.174 1e,714 16,714 1.013.988 1,030,702 16 Related party tran$actlon5 There were discl¢)sable related party transactions during the year12023- nonel. 14