Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
Scottish Charity Number SC026572
THE TULIP CHARITABLE TRUST REPORT OF THE TRUSTEE
AND
STATEMENT OF ACCOUNTS
FOR THE YEAR TO 31 JANUARY 2024
Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST
ANNUAL REPORT AND STATEMENT OF ACCOUNTS for the year ended 31 January 2024
| Contents Report of the Trustees Independent Examiner's Report Statement of Financial Activities Balance Sheet Notes on Accounts |
Page 1-3 4 5 6 7 - 10 |
|---|---|
Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST
REPORT OF THE TRUSTEES
for the year ended 31 January 2024
The Trustee has the pleasure in submitting the Annual Report for the year ended 31st January 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, The Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 issued in October 2019.
Objectives and activities
The objectives of the charity are to hold the trust capital and income and to pay or apply the same to or for benefit of or in furtherance of such charities as the Trustee, in its sole discretion thinks fit; provided always that in exercise of its discretion the trustee shall give primary consideration to the wishes of those persons who gift or lend funds to the charity although this is not a binding obligation on the Trustee. The Trust policy is to accumulate all appeals received and look at each on individual merit. No particular charity sector is identified or excluded. The Trustee met this objective by making donations as detailed in note 6.
Public benefit
The objectives (see above) of the charity are clearly of public benefit both directly and indirectly. The trustee confirms that due regard has been paid to the public benefit guidance published by the OSCR.
Grant making policy
The Trustee aims to meet once a year and aims to distribute the net available income.
Achievements and performance
The objectives of the charity during the year were to support charities chosen by the Trustee. This was done by making donations as detailed on note 6 of the accounts.
Financial review
The financial position of the Trust at 31 January 2024 is as disclosed in the Statement of Financial Activities and Balance Sheet on pages 5 and 6. The appreciation is mainly due to lower donations paid in this year.
Investment policy and performance
In accordance with the Trust Deed, the Trustee has the power to invest in such stocks, shares, investments and property in the UK as seen fit, with the exception of tobacco and armament shares. The Trustee has engaged Quilter Cheviot as investment managers. The policy is to adopt a medium risk strategy, balancing income and growth over the medium to long term. The structure of the portfolio during the year has been retained in line with this strategy.
Risk management
The Trustee has assessed the major risks to which the Charity is exposed, in particular those related to the operations and finance of the Trust, and is satisfied that the systems are in place to mitigate their exposure to the major risks. The Trustee considers the major risks to be fluctuations in the value of its investment portfolio and investment returns.
Reserve policy
It is the Trustee's intention to reserve income, partly to offset the possible fall in investment income, and to enable the continued policy of responding quickly to appeals for significant support where appropriate, the timing of which is unpredictable. The total funds held at the year end was £3,083,503.
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Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST
REPORT OF THE TRUSTEES for the year ended 31 January 2024
Plans for the future
The Trustee wishes to continue to build the capital of the fund, taking due account of risk, to enable them to have sufficient funds to meet the various appeals received from the chosen categories.
Structure, governance and management
The Trust was registered in the books of the Lords of Council and Session on 21 May 1997.
The Trust does not actively fundraise and seeks to continue the charitable work desired by the donor through careful stewardship of its existing resources.
Reference and administrative information
Trustees
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Day to day management
Brodies LLP 58 Morrison Street Edinburgh
Independent Examiner's
Neil Ritchie Chartered Accountant Brodies LLP 58 Morrison Street Edinburgh EH3 8BP
Investment Managers
Quilter Cheviot Queens Quay 33-35 Queen Square Bristol BS1 4LU
Bankers
Royal Bank of Scotland Plc 36 St Andrews Square Edinburgh EH2 2YB
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Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST
REPORT OF THE TRUSTEES
for the year ended 31 January 2024
Trustee's responsibilities in relation to the financial statements
The charity trustee is responsible for preparing a trustee's annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The Law applicable to charities in Scotland required the charity trustee to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the income and expenditure, of the charity for that period. In preparing the financial statements, the trustee is 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 applicable Charities SORP 2015 (FRS 102);
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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;
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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 Trustee is responsible for keeping proper accounting records which disclose with reasonable accuracy at any position the financial position of the Charity and enable them to ensure that the accounts, which they are responsible for preparing, comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charity Account (Scotland) Regulation 2006 (as amended) and the terms of the constitution. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
06 November 2024 | 7:50 AM PST
Approved by the trustee on
2024 and signed on their behalf by: [Katrina Turner ]
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Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST
INDEPENDENT EXAMINERS' REPORT for the year ended 31 January 2024
I report on the accounts of the charity for the year ended 31 January 2024, which are set out on pages 5 to 10.
Respective responsibilities of trustee and examiner
The charity's trustee is 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 Trustee considers 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 to state whether particular matters have come to my attention.
Basis of independent examiners' statement
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. 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 Trustee 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 examiners' statement
In connection with my examination, no matter has come to my attention
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which gives me reasonable cause to believe that in any material respect the requirements:
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. 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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. to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations
have not been met, or
- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
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31 October 2024 | 2:37 PM GMT
Chartered Accountant Brodies LLP 58 Morrison Street Edinburgh EH3 8BP
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Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT for the Year ended 31 January 2024
| Income Investment income Total income Expenditure on Raising funds: Investment management costs Charitable activities: Independent examination fees and trustee expenses Support costs Donations to charitable bodies Total expenditure Net expenditure before gains and losses on investments Net (losses)/gains on investments Net income/(expenditure) and Net movement in funds Funds balance brought forward at 1 February 2023 FUNDS BALANCE CARRIED FORWARD at 31 January 2024 |
Notes 3 4 5 5 6 7 |
2024 £ Unrestricted 57,777 |
2023 £ Unrestricted 45,617 |
|---|---|---|---|
| 57,777 | 45,617 | ||
| 17,163 3,000 6,590 6,500 |
17,311 2,100 5,078 30,000 |
||
| 16,090 | 37,178 | ||
| 33,253 | 54,489 | ||
| 24,524 | (8,872) | ||
| 150,353 | (195,246) | ||
| 174,877 | (204,118) | ||
| 2,908,625 | 3,112,743 | ||
| 3,083,503 | 2,908,625 |
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Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST
BALANCE SHEET as at 31 January 2024
| Fixed assets: Investments Current assets: Quilter Cheviot Royal Bank of Scotland Liabilities: Creditors Net current assets Total net assets Financed by: The funds of the charity: Unrestricted Total charity funds |
Notes 2024 2023 £ £ 7 2,988,637 2,850,970 5,048 2,847 94,617 59,677 99,665 62,524 8 (4,800) (4,869) 94,865 57,655 3,083,503 2,908,625 3,083,503 2,908,625 |
Notes 2024 2023 £ £ 7 2,988,637 2,850,970 5,048 2,847 94,617 59,677 99,665 62,524 8 (4,800) (4,869) 94,865 57,655 3,083,503 2,908,625 3,083,503 2,908,625 |
|---|---|---|
| 7 8 |
||
| 5,048 2,847 94,617 59,677 |
||
| 99,665 62,524 |
||
| (4,800) (4,869) |
||
| 94,865 57,655 3,083,503 2,908,625 |
||
| 3,083,503 2,908,625 |
Approved and authorised for issue by the Trustee and signed on its behalf by
Katrina Turner
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The notes which follow form part of the accounts.
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Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST year ended 31 January 2024
NOTES ON ACCOUNTS
1 Accounting policies
(a) Basis of preparation and of assessment of going concern
The accounts 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. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the United Kingdom and Republic of Ireland (FRS 102) issued in October 2019, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulation 2006 (as amended).
The trust constitutes a public benefit entity as defined by FRS 102.
(b)
Fund structure
Unrestricted income funds compromise those funds which the trustee is free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.
All the funds of the trust are unrestricted.
- (c) Income recognition
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations, are recognised when the Trust has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Interest of funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.
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Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST year ended 31 January 2024
NOTES ON ACCOUNTS Contd
(d) Expenditure recognition
Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note (g) below.
Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaining to that grant is outside the control of the Trust.
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.
The Trustee does not normally make multi-year grants but encourage recipients to reapply where there is a particular interest.
(e) Allocation of support and governance costs
Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.
(f) Cost of raising funds
The cost of raising funds consist of investment management costs and certain legal fees.
- (g) Cost of charitable activities
Cost of charitable activities include grants made, governance costs and an apportionment of support as shown in note 6.
(h) Debtors
Debtors are recognised at the settlement amount due. Prepayments are valued at the amount.
(i) Cash at bank
Cash at bank is held to meet the day to day running costs of the charity as they fall due.
(j) Creditors
Creditors are amounts owed by the charity. They are measured at the amount that the charity owes at the year end.
(k) Fixed asset investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
(l) Realised gains and losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
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Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST year ended 31 January 2024
NOTES ON ACCOUNTS Cont'd
2 Related party transactions and trustee expenses and remuneration
The Trustee gives freely time and expertise without any form of remuneration or other benefit in cash or kind. Anderson Strathern LLP prepare the accounts and deal with the administration. Their fee for this for the year amounted to £5,058 (2022 £5,075).
3 Investment income
| Dividends and fixed interest securities Interest on cash deposit |
2024 2023 £ £ 50,464 44,368 7,313 1,248 |
|
|---|---|---|
| 57,778 45,617 |
4 Investment management costs
| Investment management costs | ||
|---|---|---|
| Investment management fees All investment management costs are attributable to unrestricted funds. |
2024 2023 £ £ 17,163 17,311 |
|
5 Allocation of governance and support costs
| 5 Allocation of governance and support costs |
||
|---|---|---|
| Governance Independent Examiner's fee Support costs Administration fees Accountancy fees 6 Donations Disaster Emergency Committee Turkey Ukraine Pakistan Young Musicians Donations by category Community development - 2 donation Education 9 |
2024 2023 £ £ 3,000 2,100 |
|
| 6,590 3,018 3,000 2,060 |
||
| 9,590 5,078 |
||
| 12,590 7,178 |
||
| 2024 2023 £ £ 5,000 - - 10,000 - 20,000 1,500 - |
||
| 6,500 30,000 |
||
| 5,000 30,000 1,500 - |
||
| 6,500 30,000 |
||
Docusign Envelope ID: 21B5BD86-F5BC-4130-AB3B-B2B9B4A5246A
THE TULIP CHARITABLE TRUST year ended 31 January 2024
NOTES ON ACCOUNTS Cont'd
7 Fixed Asset Investments
Movement in fixed asset listed investments
| Market value brought forward at 1 February 2023 Add: additions to investment cost Disposal at carrying value Add net (losses)/gains on revaluation Cash available for investment |
2024 2023 £ £ 2,603,090 2,921,666 837,968 960,492 (771,558) (1,083,823) 150,353- 195,246 |
|
|---|---|---|
| 2,819,853 2,603,090 168,784 247,880 |
||
| 2,988,637 2,850,970 |
Net cash released from investments in the period was £61,933 (2023: £127,486).
Historic book cost 2,413,359 2,430,865
All investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investments funds, unit trusts and open ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transactions value).
The main risk to the Trust from financial instruments lies in the combination of uncertain investment markets and volatility in yield. The Trust is reliant on dividend yield in part to finance its work and this leads to a greater exposure to international companies, the values of which, together with their yield are exposed to exchange rate risk when converting the holdings into sterling.
The Trust manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges.
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Creditors
| Creditors | ||
|---|---|---|
| Independent examiner fee Accountancy and secretarial fees quarter to 31 January 2023 St Mary's Music School - 3rd of three annual donations |
2024 2023 4,800 3,600 - - 1,269 - |
|
| 4,800 4,869 |
Analysis of charitable fund
| 2024 Unrestricted 2023 Unrestricted |
Balance b/fwd Income Expenditure (Losses)/Gains Balance c/fwd 2,908,625 57,778 (33,253) 150,353 3,083,503 |
|---|---|
| Balance b/fwd Income Expenditure Gains Balance c/fwd 3,112,743 45,617 (54,489)- 195,246 2,908,625 |
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