The TD Paton Trust {Charily No: SC0438191 Annual Report and Financial Statements For the Year Ended 28 February 2025
The TD Paton Trust Annual Report and Financial Statements for the Year Ended 28 February 2025 Contents Page Legal and Administrative Information Trustees, Report IndÈpendent Examiner 's Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements 8-13
The TD Paton Trust Legal and admlnlstrat5ve Informatlon Truslees Prlnclpal Addre55 clo Blair Cadell LLP The Bond House 5 Breadalbane Street Edinburgh EH6 5JH Independent Examiner MHA 6 St Colme Street Edinburgh EH3 6AD 8ank8rs The Royal Bank of Scotland plc Edinburgh West End Office 142-144 Princes Street EdinburBh EH2 4EQ Soli¢it¢rs and Se¢retaries Blair Cadell LLP The Bond House 5 Breadalbane Street Edinburgh EH6 5JH Investment Managers Rath+Jones The Athenaeum 8 Nelson Mandela Place Glasgow G2 IBT Scottlsh Charlty Number SC043819
The TD Paton Trust Trustees, Report For the Year Ended 28 February 2025 The Trustees have pleasure in submitting their Annual Report for the Year Ended 28 February 2025. Oblectlves The Trust was established in line with the testamentary wishes of the late Mr Paton. The objectives of the Trust are to hold the residue of the estate ènd apply the income arising there from in the proportions the Trustees $0 determlne in thelr sole ludgement for the benefit of animal welfare, hospice services for children and young people, cancer research and cancer support service5 in any part of the United Kingdom. The Trust will also benefit wildlife tonseNation and the protection of endangered specie5 and the environment in arsy part of the world, including the promotion of Sustainable resources. Di5tribLttion5 of income shall include but not be exclusive to.. The Dogs Trust (formerly The National Canine Defence League), The Scottlsh Society for the Preventlon of Cruelty to Animals (Scottish SPCA). Rachel House Childrens, Hospice Scotland and Cancer Research UK. Revlew of Actlvltles and Future Developments During the year the Trustees continued to gather investment income and deposit interest and applled this Income in making donations in line with the Trust's objectives. Donations made to other charitable organi5ations totalled £140,00012024.. £39,5001 and are detailed in note 3 to the financial statements. Financial InfoTmatlon The financial position of the Trust is disclosed in the financial statements on pages 6 to 13. The Trustees confirm that the assets of the Trust disclosed in the Balance Sheet are available to fulfil any of its obligations and that the finènclal posltlon is satisfactory in view of the Trust's future plans and commitments. Re5er¥e5 Pollcy The Trust has no identified minimum re5eTve requirement, however, in order to be able to meet commitments as they fall due. the Trustees take into account market volatility and. predicted In¢ome receipts in determining the reserve funds to be held. The "free" unrestricted general reserves, at the year end were £1,71212024: £7,885).
The TD Paton Trust Trustees, Report (continued) For the Year Ended 28 February 2025 Investment policy and performance During the year, Rathbones manoged the invested funds of the Trust with the investment aim of achieving a balance between capital and income growth. The investment objective is to try and offset the effect of inflation and to generate an income which will be used by the Trust to provide grants to certain named charities at the Trusts. discretion. At the year end the portfollo had a market value of £1,302,96312024.. £1,324,961) and cash held at Brokers on their capital account amounted to £2,39712024: £10.8231. With regard to performance, the portfolio had a total return after fees of £0.33% in the year to 28 February 2025. Thls compares to the benchmark whlch returned 0.02% over the same period. Taxatlon The Trust is a Scottish charity and is recognised as such by HMRC for taxation purposes. As a result, there is no liability to taxation on any of its income or gains to the extent that these are applied to its charitable objects. No tax charge has arisen in the Trust. Constltutlon The Trust was tonstituted by a Deed of Trust set up under the Will of the late Mr Paton dated 21 January 2005. The Trust was registered as a Scottish charity with effect from l March 2013. Organisation and Trustee Appointment Trustees are appointed and removed by the Board of Trustees in accordance with the Deed of Trust. The Tru5tee5 meet bi-annually to review the administration and activities of the TrLtst. The Trustees who held office during the year under review are detailed on page l.
The TD Paton Trust Trustees, Report (continued) For the Year Ended 28 February 2025 Trustees Responslbllltles Statement The Trustees are responsible for preparinE the Trustees, Report and the financial statements in accordance wlth applicable law and Unlted Kingdom Accounting Standards Iunlted Klngdom Generally Accepted Accounting Praclicel. The law applicable to charitie5 in Scotland requires the Trustee5 to prepare financial statements lor each financiil year which give a true and fair view of the state of affairs of the Trust and of the Incomlng fesources and applltatlon of resources of the Trust for thai perlod. In preparing these flnanclal statements, the Trustees are required to.. select suitable accounting policies and then apply them con5iStently observe the methods and principles in the Charities SORP 2019 IFRS 1021,. make judgements and estirnates that are reasonèble and prudent,. state whether applicable accounling Standard have been followed, subject to any material departures disclosed and explained in the financlal statements,. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will tontinue in operatlon. The Trustees are responslble for keeplng proper accountlng records that disc105e with reasonable accuracy at any time the financial posltion of the Trust and enable them to ensure that the financial statements comply with the charities and Trustee Investment 15cotland) Act 2005. the Charities Account5 IScot13ndl Regulation5 2006 la5 amended) and the provisions of the Trust Deed. They are also fespon5ible for 5afeguardlng the 35set5 of the Trust and hence for taking reasonable steps for the prevention and delection of fraud and other Irregularilles. 9 June 2025
Independent Examiner's Report to the Trustees on the Unaudited Financial Statements of The TD Paton Trust I report on the financial statements for the year ended 28 February 2025 set out on pages 6 to 13. Respective responsibilities of trustees and Independent examlner The charitvs Trustees are responsible for the prepaiation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotlandl Act 2005 and the Charities Accounts (Scotlandl Regulators 2006. The charity trustees consider that the audit requirement of Regulation 10111 {al to Icl of the Accounts Regulations does not apply. It is my responsibility to examine the financial statements as reqLbired under section 4411) Icl of the Act and to State whether particular matters have come to my attention. Basls of Independent examlner'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 Trust and a tomparlson of the financial statement5 presented with those records. It also includes consideration of any unusual Items or dlsclosures In the financlal statements, and seeks explanatlons from the trustees concerning any such matter5. The procedure5 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 rinancial statements. Independent examlner's statement In the course of my examinatlon, no matter has come to my attention- which gives me reasonable cause to believe that in any material respect the requirements: to keep accounting records in accordance with Section 44111 {al ol the 2LKJ5 Act and Regulation 4 of the 2006 Accounts Regulations,. and to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations,. have not been met,. or to whlch, In my opinion, attentlon should be drawn In order to enable a proper understanding of the financial statements to be reached. 9 June 2025 Independent Examiner MHA 6 St Colme Street Edinburgh EH3 6A0
The TD Paton Trust Statement of Financ5al Activities For the Year Ended 28 February 2025 Notes Revenue Capital Fund Fund lexperidable lunrestrictedl endowment) 2025 Total 2024 Total Income from: Investments 37,881 37,881 38,696 Total Income 37,881 37,881 38,696 Expendlture on: Roising funds- investment management fees Charitable activities 9,813 9,813 149,054 9,373 46,720 149,054 Total expendlture 149,054 9,813 158,867 56,093 Net lexpenditurel before gain5 On investments 1111,1731 19,8131 1120,9861 117,3971 Net gain5 on investment assets 84.417 84,417 35,603 Net lexpendlturell Income 1111,1731 74.604 136,569 18,206 Trarssfer5 between funds 105,000 1105,0001 Net movement In funds 16,1731 130,396) 136,5691 18,206 Funds at l March 2024 7,885 1,334,148 1,342,033 1,323,827 Funds at 28 February 2025 1.712 1,303,752 1,305,464 1,342,033 The statement of financial activities includes all 8ain5 and1055es in the year.
The T D Paton Trust Balance Sheet At 28 February 2025 Notes 2025 2024 Fixed Assets Investments 1,305,360 1,339,784 Current assèts Debtors Cash on deposlt 2.749 43,671 3.471 10,721 46.420 14,192 Liabllitie5: Creditor amount5 fallin8 due within one year 146,3161 17,943 Net current aSsetS 104 6,249 Net asset5 1,305.464 1,342,033 Represented by: Revenue - unrestritted funds Capital- endowment funds 1,712 1.303,752 7,885 1,334,148 1.305,464 1,342,033 These financial statements were approved and authorlsed for Issue by the Trustees on 9 June 202S and signed on their behalf by:
The T D Paton Trust Notes to the Financial Statements For the Year Ended 28 February 2025 l Accounting policies The significant accounting policies applied in the preparation of these financlal statements are set out below. These Policies have been consistently applied unless otherwise stated. Busls of prepumtlon and Gssessment uf golng concern The financial statements are prepared on a going concern basis under the historlcal cost convention wlth items recognised at COSt or transaction valL*es unless otherwise stated in the relevant notes to the financial statements. The financial statements are presented in sterling which Is the functional currency of the Trust and rounded to the nearest £. The financial statÈments have been prepared in atcordance with the Charities and Trustee Investment Iscotlandl Act 2005 and the Charities Accounts Iscotlandl Regulations 2006 las amended), Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to Charitle5 preparing their account5 in accordance wlth the Flnancial Reporting St2ndard applicable in the UK and Republic of Ireland IFRS 1021 issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and UK Generally Accepted Accounting Practice. The T D Paton Trust tonstitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared on a going concern basis. In December 2024, Trustees agreed to start the process of winding-down the charity over the next couple of years bv encroaching on capital and making larger donations. Trustees regularly monitor the income streams and projected expenditure and have concluded that the Trust has adequate resources to continue in operational existence for & period of at least 12 months from approving the financial Statements. Therefore, they continue to adopt the golng concern basis of accounting in preparing the financial statements. Intome All income is recognised once the Trust has entitlement to the income, It is probable that the Income will be received and the amount of income receivable can be measured reliably. Interest on funds held on deposit is Included when recelvable and the amount can be measured reliably by the Trust. This is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividends have been declared and notification has been received of the dividend due. Expendlture Expenditure is recognSsed as soon as there is a legal or constructive obligation committing the Trust to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basls and has been classified under headings that aggregate all costs related to the category. Expenditure on raising funds include costs associated with generating income for the Trust through Its investment portfolio. Expenditure on charitable activitie5 includes costs incurred in delivery of the Trust's objectives. It includes both the direct costs of grant making and those costs of an indirect nature necessary to support them. Donations payable are payments made to third parties in the furtherance of the charitable object5 of the Trust. In the case of an unconditional grant offer thls is accrued once the recipient has been nolified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant.
The T D Paton Trust Notes to the Financial Statements For the Year Ended 28 February 2025 l Actount5ng pollcies {contlnued} Expenditure (contlnuedj Support costs are allocated between governance costs and other support costs. Governance costs comprise those costs involving the public accountability of the Trust and therefore include the cost of Independent Examination. Other support costs relate to the administration costs of running the Trust. Irrecoverable VAT is charged against the expenditure heading for which it was incurred. Fixed asset investment5 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 Trust does not acquire put options, derivatives or other complex financial instrument5. The main form of financial risk faced by the TrLSSt is that of volatility in equity markets and investment market5 due to wider economic condition5, the attitude of investors to Investment risk. and changes in sentiment concerning equities and within particular sectors or sub sectors. All gains and losses are taken to the Statement of Financial Activities as they arise. Reali5ed gains and 1055es on investments are calctslated 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 caltulated 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. Debtors Debtors are measured at their recoverable amount and included when reasonable certalnty exist5 over their receipt. Cash Cash at bank includes cash and highly liquid short term investments with a maturity of three months or less from the date of opening of the deposit or similar account. Creditors Creditors are recognised when the Trust 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 reliably. Flnunclol investments The Trust only ha5 financial assets and financial Ilabllitie5 of a kind that quality as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
The T D Paton Trust Notes to the Financial Statements For the Year Ended 28 February 2025 l Accounting pollcles (contlnuedl Funds structure Unrestricted Income funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objects. Unrestricted funds can include designated funds where the trustees, at their discretion, have created a fund for a specific purpose. Endowment funds represent those investment assets which must be held permanently by the Trust. Income arising on the endowment funds can be used In accordance wlth the objects of the Trust and is included as unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and any legal advice relating to ihe fund are charged against the fund. Investment Income 2025 2024 Dividends received Bank interest 37,589 291 38,447 249 37,881 38,696 io
The T D Paton Trust Notes to the Financial Statements For the Year Ended 28 February 2025 Charitable activltles 2025 2024 Donation5 payable The Dog's Trust Scottish SPCA CHAS - for Rochel House Children's Hospice Cancer Research UK Canir)e Partners Hw8nge Conservation Soclety - PDSA - Renewable World Animals for Asia Johrb Muir Trust Surfers against Sewage Campalgn to Protect Rural England St Vincent's Hospice St Columbas Hospice Scottish Seabird Cer)tre Maggie's Centre, Edinburgh Scotland- The Big Picture Cat5 Protection Farm Anim81 Rescue Sanctuary Royal ZooloElcal Socletv - The GRAB Trust R R P B- Ponies at Loch Strathbeg 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 4,500 4,500 4,500 4,500 4,500 4,SOO 4,500 1,000 I,(N)o I,(N)o 1.000 1,000 1,000 5,000 5,000 5,000 5,OCNJ 5,0(N) 5,000 5,000 1,000 1,000 140.000 39.500 Support COSts- Secretarial fees Bank charges Storage costs Governance costs.. Independent Examiner's fee Secretarial fees Professional fees 3,858 225 3,408 130 25 2.298 1,653 1,020 2,196 1,461 9,054 7.220 149,054 46,720 Trustees, remuneratlon No trustee received any remuneration or was relmbursÈd expenses durlng the current or prior year. li
The T D Paton Trust Notes to the Financial Statements (Continued) For the Year Ended 28 February 2025 Flxed Asset Investments 2025 2024 Opening market value at l March 2024 Add.. Acquisltion5 at cost Less- Disposal proceeds Net gains on revaluation 1,324,961 65,758 1172,1731 84,417 1,299,821 135,075 1145,5381 35,603 1,302.963 1,324,961 Cash held by brokers- capital account 2,397 10,823 Market value at 28 February 2025 1,305,360 1,335,784 Hlstorlcal cost at 28 February 2025 974,315 1,069,856 Debtors 2025 2024 Dividends receivable 2,749 3,471 Credltors: Amounts falling due within one year 2025 2024 Donations payable Independent Examiner's fees Secretarial fees Investment manager's fees 40,000 2,298 2,410 1,608 1,000 2,196 3,111 1,636 46,316 7,943 12
The T D Paton Trust Notes to the Financial Statements (Continued) For the Year Ended 28 February 2025 Movemènt In funds 202412025 Atl March 2024 Income At28 Feb 2025 Expenditure Gains Transfers Income funds: General unrestricted 7,885 37,881 1149,0541 105,000 1.712 Capltal funds: Expendable endowment 1,334,148 19,8131 84,417 | 105,0001 1,303,752 Total funds 1.342,033 37,B81 1158,8671 84,417 1,305,464 202312024 Atl March 2023 At29 Feb 2024 Income Expenditure Gains Transfers Income funds- General unrestricted 9,015 38,696 146,720) 6,894 7,885 Capitsl funds., Expendable endowment 1,314,812 19,3731 35,603 16,8941 1,334,148 Total funds 1.323,827 38,696 156,0931 35.603 1,342,033 9 Analysls of net assels between funds Income Fund Capital Fund 2025 Total Income Fund Capital Fund 2024 Total Investments Net curient asSQts 1.30S,360 1,305,360 11.6081 104 1.335,784 1,335,784 11,6361 6,249 1,712 7,885 1,712 1,303,752 1,305,464 7,885 1,334,148 1,342,033 10 Related paities The firm of Blair Cjdel LLP. of which and are partners, receSved ftr.o. of f.S,511 1?.0?4.. f 4,8691 incliJ(Jing VAT in re.sppct of administration and secretarial services Provided during the year. Creditors at the year end included £2,41012024'. £3,111) In respect of these fees. 13