Charity Registration No England and Wales: 310952 Sotland: SC038722 ~ Roya I Caledonian Eduation Trust REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2014 )
CONTENTS Page Diretors' report 1-9 Independent auditors' report 10 Statement of Finanial ativities 11-12 Balane sheet 13 Notes to the aounts 14-23
Offie Copv The Diretors and sole Trustees of the Royal Caledonian Eduation Trust presen( the following annual report and aounts for the year ended 31 July 2014 The aounts have been prepared in aordane with the aounting poliies set out in note 1 to the aounts and omply with the Trust's governing doument, the Charities At 2011, The Charities and Trustees Investment (Sotland) At 2005, the Charities Aounts (Sotland) Regulations 2006 and the Statement of Reommended Pratie, "Aounting and Reporting by Charities", issued in Marh 2005. OBJECTIVES AND ACTIVITIES The Royal Caledonian Eduation Trust is an eduation trust supporting the hildren of Sots who are serving, or who have served, in the Armed Fores. It is learly understood that Armed Fores hildren who experiene frequent moving of home, shool and ommunities do not perform as well in shools as non-armed Fores hildren. Mobility, deployment or absene of a serving parent, whih an often be for long periods at a time, an lead to under ahievement at shool. There are exeptions, but many of the families that we support are experiening finanial hardship. Many of those that the Trust helps are living in some of the most deprived ommunities in Sotland and /or living with post-traumati stress disorder, disability or other health issues leaving family members unable to work following ative servie. The Trust has two major areas of ativity: 1. We urrently make between 250 and 300 individual grants a year to the hildren of Sots who are serving or have served in the Armed Fores. 2. We also work through our Eduation Programme in Sotland with shools, loal authorities, Armed Fores harities and the military and military ommunities on initiatives to support Armed Fores hildren, their teahers and their families in the shool environment, espeially in relation to hildren's emotional well-being. (J G Ativity Strands Grants to Individuals The Trust has a grant making poliy whih is available to download from the Trust's website (www.ret.org.uk). The aim of that poliy is to provide finanial assistane that will help disadvantaged individuals fulfil their eduational potential with the opportunity to progress with their studies in the same way as any non-armed Fores hild. Grants over items suh as shool lothing, after-shool ativities, extra tuition support where home irumstanes have impated on progress at shool, through to an assistane towards the living expenses for those going on to ollege or further and higher eduation whose finanial irumstanes might otherwise prevent them from doing so. In all grants ases the Trust aims to help those families who are faing partiular and hallenging finanial irumstanes, health problems and other diffiulties at home. - 1 -
DIRECTORS' REPORT (CONTINUED} FOR THE YEAR ENDED 31 JULY 2013 OBJECTIVES AND ACTIVITIES - Grants to Individuals (ontinued) The Trust makes between 250 and 300 grants to individuals in a year and the demand for support from appliants ontinues to show inreasing omplexity of need. The Trust attempts to take aount of the inreasing finanial hallenges and hardship faed by appliant families in the urrent eonomi limate and the Trust views those hallenges as beoming greater over the next few years. Work ontinues in improving the administrative proesses and reord keeping supporting the grant making. July 2014 saw the start of a major review of the Trust's grant making by two Diretors, both with signifiant relevant experiene. Grants by Armed Servie 2013/14 OTHER RAF 5% ROYA NAVY 7% Grants by Country 2012/13 ARMY 81% ( l 14% ENG- SCOT LAND 86% - 2 -
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31JULY2013 OBJECTIVES AND ACTIVITIES (ontinued) Eduation Programme, Sotland The Trust's Eduation Programme in Sotland ontinues to make signifiant progress in the period under review. Two grants were made to individual shools in Sotland, both in the Edinburgh area. One reeived a grant to utilise musi therapy as a onstrutive support at a time of great hange in the shool whih had a very signifiant enrolment of Armed Fores hildren. The other shool reeived a transitional grant allowing the ontinued employment of a play therapist who has been working with those Armed Fores pupils enrolled at the shool and having issues that affet their performane at shool. The transitional grant provided the shool with time to seek longer term funding for the play therapist role. The Trust's Eduation Programme Manager extended her seondment for a seond year during 2013/14 to the Assoiation of Diretors of Eduation in Sotland (ADES) as National Transitions Offier. Her work with ADES enompasses the poliies, proesses and issues assoiated with Armed Servies hildren moving in and out of the Sottish Eduation system as well as between the 32 Loal Authority eduation systems in Sotland. The Trust is fully supportive of this seondment to work at the national level whih builds on previous work undertaken by Trust's Eduation Programme Manager, who ontinues to at as an adviser to the Trust during her seondment. l The Trust's part-time Eduation Programme Offier ontinued her work developing the Eduation Programme both in developing further the resoures supporting and the spreading use of the Trust DVD, Fores Kids - This is My Life whih the Trust launhed in November 2012. Current work with the Highland, Moray, Edinburgh and Midlothian loal authorities has given the Eduation Programme's work the potential to reah 15,000 pupils, a target that is being rapidly realised. The Eduation Programme Offier has extended her work helping shools develop emotional literay strategies. Additionally, working with Highland Region a template of oordinated ation is bei11g developed in support ofthe emotional wellbeing of Armed Fores hildren involving the Eduation Department of the Region, military personnel as well as Armed Fores hampions. This is a template that will have diret relevane to other Loal Authorities in Sotland. The work of the Eduation Programme was showased at the Trust's bi-annual Eduation Pratitioners' Conferene in Edinburgh in Otober 2013. Attended by over 100 pratitioners drawn from shools, loal authorities, the military, Sottish Government and the third setor the Conferene featured a blend of key-note speehes and workshop ativity. Sir Andrew Cubie gave a very well reeived keynote speeh as did Major General Nik Eeles, CBE, General Offier Commanding Sotland. In a new development for the Trust, a partnership has been developed with the Shool of Eduation at the University of Stirling. Under a Collaborative Studentship Award sheme a PhD studentship has been awarded and taken up. The researh will address the urrent lak of understanding about the ways in whih hildren of Armed Fores families experiene shool. The researh will also identify suessful shool proedures and targeted interventions that an support pupils, partiularly during heightened periods of stress suh as the deployment of a parent to a onflit zone. - 3 -
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31JULY2013 OBJECTIVES AND ACTIVITIES (ontinued) Marketing, Communiations, Publi Relations and Fundraising The Trust ontinues to invest in the expertise and the resoures needed in a highly ompetitive market, to present itself in a foused and positive way. Considerable work has been undertaken to ensure that the Trust has an inreasing profile in regional and national media in Sotland. Case studies and support from several individuals who are being or have been supported through individual eduation grants by the Trust have helped in the launh of fund raising initiatives during the year. A Reeption held in London in Marh 2014 allowed the Trust's supporters and partners in the South to hear of the Trust's work from both a former benefiiary of the Trust's eduation grants and from the General Offier Commanding Sotland. Arhives ( ' The London Metropolitan Arhives (LMA) ontinues the work of ataloguing the Trust's arhives. This is - a signifiant task and it is hoped that the proess will now be ompleted by the end of 2015. The Trust is partiularly grateful to LMA for undertaking this ruial work. Offie Move In June 2014 the Trust ompleted the first year in the new offies of the Soldiers, Sailors and Airmen's Families Assoiation (SSAFA) in London. The move has proved an outstanding suess, not least due to the welome and support extended to the Trust by SSAFA. PLANS FOR THE FUTURE Grants to Individuals The Trust is undertaking a major review :>f its grant making to individuals. The review started in July 2014 with a report and reommendations to be presented to the Committee of Diretors by the end of 2014 with a view to implementing the agreed reommendations during 2015. Eduation Programme, Sotland The use of the film, 'Fores Kids -This is My Life' and the resoures developed to ensure the film's optimum impat have been requested by eduational institutions as well as loal authority and devolved administrations within and out with Sotland. The Trust ontinues to work on the best way to further these wider partnerships to the benefit of Armed Fores hildren. Fundraising, Marketing and Communiations Building on the initial fundraising work undertaken in the last year the Trust has appointed a professional fundraiser who is based in Sotland. Starting in Otober 2014, the fund raiser will be able to apitalise on the fundraising opportunities arising from the Trust's Bientenary in 2015-4 -
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2013 PLANS FOR THE FUTURE (ontinued) Plans are underway to elebrate the Trust's 200th Anniversary of the inorporation of the Trust by At of Parliament in 1815. These inlude the launh of the Bientenary elebrations at a dinner hosted by the Caledonian Soiety of London in Marh 2015 at whih a short history of the Trust, written by the Trust's Chairman, will also be launhed. Other planned ativities inlude a Theatre in Eduation prodution ommissioned by the Trust. This will involve a speially written play working with the themes addressed by the work of the Trust's Eduation Programme being performed in a number of shools in Sotland raising awareness of the work of the Trust and its support for Armed Fores hildren at shool in Sotland. The Trust will also hold its Bientenary Eduation Prationers' Conferene in Edinburgh in Otober 2015. This will be the most signifiant and important Conferene that the Trust has held in 200 years. STRUCTURE, GOVERNANCE AND MANAGEMENT The Trust was inorporated by an At of Parliament dated 14 June 1815. Sine its inorporation the Trust has ontinued to review the methods under whih it fulfils its funtions. Sine November 2012 the Trust has faility to appoint 9 Diretors (sole Trustees) to the Committee of Diretors (CoD). The CoD meets 6 times a year with responsibility for broad strategy, finanial and risk management, investments, grant making poliy and measuring the Trust's overall performane. The Chief Exeutive, who reports to the Chairman, is responsible for the day-to-day running of the Trust. The CoD appoints, from amongst the Diretors the Chair of the Grants Sub-Committee whih meets quarterly and is responsible for the Trust's grant making to individuals. The CoD reviews the skills needed both amongst its Diretors and for any relevant Sub-Committees. CoD operates a proess of skills identifiation, aountable and open Diretor reruitment and indution in line with Charity Commission requirements for the appointment of new Diretors. During the period under review 3 individuals applied to beome Diretors, were interviewed and subsequently o-opted onto CoD ahead of approval by the Trust's AGM in November 2014. The Trust is a member of two relevant national umbrella bodies: the Assoiation of Charity Offiers (ACO) and the National Counil of Voluntary Organisations (NCVO) both of whih provide information on good pratie and hanges in the law affeting harities and at as an authoritative lobby on behalf of the haritable foundations with the government and regulators. The Trust is registered with the Offie of Sottish Charity Registration, registration number SC038722 and is omplying with their requirements. - 5 -
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2013 STRUCTURE, GOVERNANCE AND MANAGEMENT (ontinued) The Trust looks to ahieve its strategi aims and arry out its operational objetives of the year through partnerships with other harities, in partiular, SSAFA branhes throughout the UK, Poppy Sotland and other servies and eduation harities. The Trust's ability to ontinue our work is dependent on sound management of its invested funds and an ative fundraising programme. When making grants and setting grant poliy, the Trustees have onsidered the guidane issued by the Charity Commission in respet of publi benefit and believe that they meet the riteria set for ahievinc I this. ~ FINANCIAL REVIEW Finanial Poliies The Trust's finane and investment poliies aim to provide long term stability and liquidity suffiient to finane the Trust's on-going programmes to balane the needs of urrent and future benefiiaries. C1 Review of inome The Trust is not finanially dependent on any speifi individual or orporation as its inome is primarily derived from its investment portfolios. The balane of inome omes from donations and grants from a wide range of individuals, Sottish lubs and soieties, trusts and orporations. During 2014 the Trust was also re-imbursed by the Assoiation of Diretors of Eduation in Sotland (ADES) for the salary and expenses of the Trust's Eduation Programme Manager who was seonded to that organisation in the year. Review of Expenditure During the year the Trust spent 449,969 {2013: 242,254) on grant making and operations as detailedr in note 6 of whih 97,098 was spent on support osts {2013: 92,207) as detailed in note 8. The estimated ommitment for grants awarded rose from 377,492 at 31July2013 to 475,931 at 31 July 2014 resulted in a hange to the Statement of Finanial Ativities in the year. Estimated ommitment an hange from year to year and the Trustees take this in to aount when reviewing the Trust's expenditure. J Reserves Poliy The aim of the trustees is to hold suffiient unrestrited reserves to fund operating expenses for one year. At 31 July 2014 this amounted to required reserves of approximately 258,000 (2013: 246,000). Of these funds, 39,369 {2012: 49,369) were designated as desribed in note 19. As the urrent level of free reserves is in exess of the required reserves, the trustees aim to utilise the exess in the appropriate development of the Trust's ativities whilst keeping in mind the flutuations of the investment marketplae. - 6 -
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31JULY2013 FINANCIAL REVIEW (ontinued) Other Funds The Trust holds two endowment funds (a) The Royal Caledonian Shools Endowment Fund is a permanent endowment fund to provide inome for arrying out the objets of the Trust. This fund represents the apital sum realised on the sale of the Shool premises and the apital must be retained and annot be onverted to inome. (b) The Legay Fund is an expendable endowment fund invested to provide inome for arrying out the objets of the Trust but whose apital funds may be used at the disretion of the Trustees in the furtherane of the aforementioned objetives. Investments The Trustees' investment powers are governed by the At of Parliament dated 14 June 1815 whih "requires that it shall be lawful to and for the Treasurers for the time being of the said hereby eleted Corporation and they are hereby authorised and required from Time to Time by and with the Consent and Approbation of the Committee of Trustees for the time being, or the major part of suh Committee present at any of their meetings, to lay out and invest all or any suh sum or sums of money as have or hath been given, devised or bequeathed by any haritable or well-disposed person or persons, to and for the said End, Intents and Purposes in this At mentioned, or any part thereof as the Exigenies of the said Corporation shall all for the immediate Appliation of Expenditure of any of the Publi Funds in the name of the said hereby eleted Corporation". The Trustees' poliy is reviewed regularly and the urrent poliy is to invest the funds for long term apital and inome growth with a short-term emphasis on both growing the annual inome and ontinue utilising some of the apital growth in the urrent exeptionally hallenging times. The annual inome target was 160,000 and during the year, the inome from investments was 161, 792 (2012: 164,115). - 7 -
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31JULY2013 LEGAL AND ADMINISTRATIVE INFORMATION Patron Vie Presidents Chairman Deputy Chairman Committee of Diretors and Sole Trustees Chief Exeutive Charity Number Prinipal Address Auditors Myers Clark lveo House, Station Road Watford WD171DL Her Majesty The Queen Lieutenant General Sir Alistair Irwin Mr AW Wilson (Deeased 14.09.2013) Mr I C Stewart Hunter Mr D Keith Robertson Miss M Holmes Mrs J AD Anderson Mr AR Madonald Miss M Harvey Lt Col A Middlemiss Mr M Noble Mrs C Butler Mrs C Butler Lt Col H Cowan Mrs D Strikland Mr J Robertson Mr M Noble Mr G Gray (o-opted 11th Deember 2013) Brigadier M Roberts (o-opted 11th Deember 2013) Ms V Peay (o-opted 2nd July 2014) Mr J MaBain England and Wales: 310952 Sotland: SC038722 Queen Elizabeth House 4 St Dunstan's Hill London EC3R 8AD Bankers Clydesdale Bank 2nd Floor,35 Regent Street Piadilly, London SW1 Y 4N D ( Investment Advisors Adam & Company 22 King Street London SW1 6QY - 8 -
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2013 STATEMENT OF DIRECTORS' RESPONSIBILITIES The Committee of Diretors and sole trustees is responsible for preparing the aounts in aordane with appliable law and United Kingdom Generally Aepted Aounting Pratie. Law appliable to harities in England and Wales and Sotland requires the Committee of Diretors and sole trustees to prepare aounts for eah finanial year whih give a true and fair view of the Trust's finanial ativities during the year and of its finanial position at the end of the year. 0 0 In preparing these aounts giving a true and fair view, the Committee of Diretors and sole trustees should follow best pratie and: selet suitable aounting poliies and then apply them onsistently; make judgements and estimates that are reasonable and prudent; state whether appliable aounting standards and statements of reommended pratie have been followed, subjet to any departures dislosed and explained in the aounts; and prepare the aounts on the going onern basis unless it is inappropriate to presume that the Trust will ontinue in operation. The Committee of Diretors and sole trustees are responsible for keeping aounting reords that dislose with reasonable auray the finanial position of the Trust and whih enable it to asertain the finanial position of the Trust and whih enable them to ensure that the aounts omply with the Trust's governing doument, the Charities At 2011, The Charities and Investment (Sotland) At 2005; the Charities Aounts (Sotland) Regulations 2006 (as amended) and the Statement of Reommended Pratie, "Aounting and Reporting by Charities", issued in Marh 2005. It is also responsible for safeguarding the assets of the Trust and hene for taking reasonable steps for the prevention and detetion of fraud and other irregularities. On behalf of the board of Committee of Diretors and sole trustees Mr MN Noble Chairman 31 Otober 2014-9 -
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE We have audited the aounts of Royal Caledonian Eduation Trust for the year ended 31July2014 whih omprise the Statement of Finanial Ativities, Balanes Sheet and related notes. The finanial reporting framework that has been applied in their preparation is appliable law and United Kingdom Aounting Standards (United Kingdom Generally Aepted Aounting Pratie) Respetive responsibilities of trustees and auditors As explained more fully on page 6, the Committee of diretors and sole trustees are responsible for preparing finanial statements whih give a true and fair view. We have been appointed as auditor under s 144 of the Charities At 2011ands44(1) () of the Charities and Trustee Investment At (Sotland) At 2005 and report in aordane with regulations made under those Ats. Our responsibility is to audit and express an opinion on the finanial statements in aordane with appliable law and International Standards on Auditing (UK and Ireland). Those standards require us to omply with the Auditin(_-- Praties Board Ethial Standards for Auditors. Sope of the audit of the finanial statements An audit involves obtaining evidene about the amounts and dislosures in the finanial statements suffiient to give reasonable assurane that the finanial statements are free from material misstatement, whether aused by fraud or error. This inludes an assessment of: whether the aounting poliies are appropriate to the harity's irumstanes and have been onsistently applied and adequately dislosed; the reasonableness of signifiant aounting estimates made by the trustees; and the overall presentation of the finanial statements and the Diretors' report to identify material inonsistenies with the audited finanial statements. If we beome aware of any apparent material misstatements or inonsistenies we onsider the impliation for our report. Opinion on the finanial statements In our opinion the finanial statements: give a true and fair view of the harity's affairs at 31July 2014 and of its inoming resoures and appliation of resoures in the year then ended; the aounts have been properly prepared in aordane with United Kingdom Generally Aepted C Aounting Pratie; and have been prepared in aordane with the requirements of the Charities At 2011, The Charities anr lnvestment (Sotland) At 2005 and regulation 8 of the Charities Aounts (Sotland) Regulations 2006 (a::.~ amended) Matters on whih we are required to report by exeption We have nothing to report in respet of the following matters where the Charities At 2011 or the Charity Aounts (Sotland) Regulation 2006 (as amended) require us to report to you if, in our opinion the information given in the Diretors' Report is inonsistent in any material respet with the finanial statements; or suffiient aounting reords have not been kept; or the finanial statements are not in agreement with the aounting reords and returns; or we have not reeived all the information and explanations we require for our audit. ~u~ MYERWLARK CHARTERED ACCOUNTANTS and STATUTORY AUDITOR lveo House Station Road Watford WD17 ldl Date: 11 November 2014-10 -
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2014 Inoming resoures from generated funds Voluntary inome 2 28,897 Investment inome 3 161,792 Fee inome 49,448 \ 240,137 Inoming resoures ( 'im haritable Unrestrited Designated Restrited funds funds funds Notes ativities 4 9,747 Endowment Total Total funds 2014 2013 28,897 30,799 161,792 164,115 49,448 42,824 240,137 237,738 9,747 10,320 Total inoming resoures 240,137 9,747 249,884 248,058 Resoures expended Costs of generating funds 5 81,865 81,864 85,137 Charitable ativities 6 Eduation 432,159 9,747 (_ \dvie and information 8,063 441,906 230,231 8,063 12,023 (~ i al haritable expenditure 440,222 9,747 449,969 242,254 Governane osts 9 11,859 11,859 9,687 Total resoures expended 533,946 9,747 543,692 337,078 Net (outgoing)/inoming resoures before transfers (arried forward) (293,808) (293,808) (89,020) - 11 -
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2014 Net (outgoing)/inoming resoures before transfers Unrestrited funds (brought forward) (293,808) Designated funds Restrited Endowment Total Total funds funds 2014 2013 (293,808) (89,020) Gross transfers between funds 10,000 (10,000) Net (outgoing)/inoming resoures before other reognised gains and losses (283,808) (10,000) = (293,808) (89,020 Other reognised gains and losses Gains I (Loss) on investment assets 41,296 216,750 258,046 590,544 Net movement in funds (242,512) (10,000) 216,750 (35,762) 501,524 Fund balanes at 1 August 2013 565,685 49,369 325 3,865,959 4,481,338 3,979,814 Fund balanes at 31 July 2014 323,173 39,369 -- -- 325 4,082,709 4,445,576 4,481,338 -- -- -- L ' - 12 -
BALANCE SHEET AS AT 31JULY2014 Notes 2014 2013 Fixed assets Tangible assets 12 2,231 Investments 13 4,905,964 4,764,779 4,908,195 4,764,779 Current assets Debtors 14 37,242 31,058 Cash at bank and in hand 43,193 127,226 ~) 0 Creditors: amounts falling due within one year 15 80,435 (183,895) 158,284 (161,584) Net urrent liabilities (103,460) (3,300) Total assets less urrent liabilities 4,804,735 4,761,479 Creditors: amounts falling due after more than one year 16 (359,159) (280,141) Net assets 4,445,576 4,481,338 ( 1,r-- l ) Capital funds Endowment funds 17 Inome funds = 4,082,709 3,865,959 Restrited funds 18 325 325 Unrestrited funds: Designated funds 19 39,369 49,369 Other haritable funds 323,173 565,685 4,445,576 4,481,338 The aounts were approved by the diretors on 22 Otober 2014. ~ -Id<"' ~-?t MrMNoble Chairman - 13 -
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31JULY2014 1 Aounting poliies 1.1 The aounts have been prepared under the historial ost onvention modified to inlude the revaluation of ertain fixed assets. The Trust has taken advantage of the exemption in Finanial Reporting Standard No 1 from the requirement to produe a ash flow statement on the grounds that it is a small Trust. The aounts have been prepared in aordane with appliable aounting standards, the Statement of Reommended Pratie, a Aounting and Reporting by Charities", issued in Marh 2005 and the Charities At 2011. 1.2 Inoming Resoures Voluntary inome, inluding donations, gifts and legaies are reognised where there is entitlement,rertainty of reeipt and if the amount an be measured with suffiient ertainty. Suh inome is only\ deferred when either the donor speifies that the grant or donation an only be used in future aounting periods, or if the donor has imposed onditions that must be met before the harity has unonditional entitlement. Investment inome is reognised on a reeivable basis. 1.3 Resoures expended Resoures expended are reognised in the period in whih they are inurred with liabilities being reognised where there is a legal or onstrutive obligation to pay. Grants payable are payments made to third parties in the furtherane ofthe haritable objetives ofthe trust. Single or multi-year grants are aounted for when either the reipient has a reasonable expetation that they will reeive a grant and the trustees have agreed tot pay the grant without ondition, or the reipient has a reasonable expetation that they will reeive a grant and any ondition attahing to the C grant is outside the ontrol of the trust. ( Provisions for grants are made when the intention to make a grant has been ommuniated to the reipient...,, but there is unertainty about either the timing of the grant or the amount of grant payable. Resoures expended are alloated to a partiular ativity where the osts relate diretly to that ativity. Resoures expended have been alloated on the basis indiated below: Cost of generating funds: These inlude a share of the support osts representing the time and resoures spent in generating the voluntary inome. Charitable ativities: These inlude all expenditure diretly related to the objets of the harity plus a share of support osts and omprise the following Eduational grants - grants payable and a share of support osts. The Eduation Programme (Sotland) - grants payable and a share of support osts representing the time spent expanding this programme. Advie and information - diret osts and a share of support osts. - 14 -
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31JULY2014 1 Aounting poliies (ontinued) 1.3 Resoures expended (ontinued) Governane osts: These osts inlude the ost of governane arrangements whih relate to the general running of the harity as opposed to the diret management funtion inherent in the haritable ativity. This inludes suh items as external audit and osts assoiated with onstitutional and statutory requirements. A share of the support osts is also inluded within governane osts. ) 0 1.4 Support osts: These osts inlude all the management, administration and entral funtions that have been alloated to the trusts' ativities, as indiated above, on the basis of time spent on eah ativity. Tangible fixed assets and depreiation Tangible fixed assets are stated at ost less depreiation. All items of apital expenditure over 500 are apitalised. Depreiation is provided at rates alulated to write off the ost less estimated residual value of eah asset over its expeted useful life, as follows: Computer Equipment Fixtures, fittings and equipment over 4 years over 5 years 1.5 Leasing and hire purhase ommitments Rentals payable under operating leases are harged against inome on a straight line basis over the period of the lease. 1.6 Investments Investments held as fixed assets are revalued at mid-market value at the balane sheet date and the gain or loss taken to the Statement of Finanial Ativities. (_; 1.7 Aumulated funds Permanent endowment funds are funds whih have been given to the harity to be held as apital with no power to onvert the funds to inome. 0 Expendable endowment funds are funds given to the harity to be held as apital. The Trustees may onvert the funds to inome if no other inome funds are available. Restrited funds are to be used for speifi purposes as laid down by the donor. Expenditure whih meets these riteria is identified to the fund, together with a fair alloation of overheads and support osts. Unrestrited funds are donations and other inome reeived or generated for the objets of the harity without further speified purpose and are available as general funds. Designated funds are unrestrited funds earmarked by the diretors for partiular appliations. 1.8 Value added tax As the majority of the Royal Caledonian Eduation Trust's ativities are lassified as exempt or non-business ativities for the purposes of value added tax The Royal Caledonian Eduation Trust is unable to relaim the value added tax whih it suffers on its purhases. Expenditure in these finanial statements is therefore shown inlusive of value added tax. - 15 -
NOTES TO THE ACCOUNTS (ontinued) FOR THE YEAR ENDED 31JULY2014 1 Aounting poliies (ontinued) 1.9 Taxation No provision has been made for orporation tax or deferred tax as the Trust is a registered harity and its ativities are exempt. 1.10 Provisions for future grants Provisions are made for all grants awarded to the extent that the trustees onsider a onstrutive liability arises based on past pratie. 2 Voluntary inome Donations and gifts: Unrestrited funds 2014 2013 ( 1 Covenants 2,771 1,665 Friends 11,751 10,974 Soieties 6,490 3,767 Trusts 7,725 8,153 Corporate 160 240 _ 28,897 24,799 Legaies reeivable 6,000 3 Investment inome 28,897 30,799 -- 2014 2013 Inome from listed investments 158,614 155,492 Interest reeivable 3,178 8,623 4 Inoming resoures from haritable ativities 161,792 164,115 -- -- 2014 2013 Grants reeivable 9,747 10,320 -- -- - 16 -
NOTES TO THE ACCOUNTS (ontinued) FOR THE YEAR ENDED 31 JULY 2014 5 Costs of generating inome Cost of generating voluntary inome Diret osts Support osts 2014 2013 29,160 42,018 8,024 20,666 ) ) Cost of generating investment inome Investment management fees Support osts 37,184 62,684 35,039 15,051 9,642 7,402 44,681 22,453 81,865 85,137 -- ) 0 6 Charitable Diret Grants to ativities osts individuals Eduation (grants to individuals) 40,949 207,114 Eduation Programme 100,524 (Sotland) 141,473 207,114 Advie and 6,323 information 147,796 207,114 -- -- 141,428 (14,740) Grants to institutions (2,039) (2,039) (2,039) 23,359 Support Total Total osts 2014 2013 68,258 316,321 88,412 27,100 125,585 141,819 95,358 441,906 230,231 1,740 8,063 12,023 97,098 449,969 -- 92,207 242,254 -- -- -- -- -- The inrease in grants awarded to individuals arises from inreasing the provision for future ommitments for next eight years (see note 16) 7 Grants payable 2014 2013 Signifiant grants were made to institutions during the year as follows Colinton Shool 2,081 9,000 Mauriewood Primary Shool 2,880 12,160 Teeny Tiny films 1,600 Prior year grant awards withdrawn (7,0CJJ) (2,039) 22,760 -- - 17 -
NOTES TO THE ACCOUNTS (ontinued) FOR THE YEAR ENDED 31 JULY 2014 8 Support Costs 2014 2013 Wages & salaries 54,648 50,529 Premises expenses 10,510 23,247 Advertising and publiity 15,478 17,050 Printing and stationary 4,418 4,833 Telephone and postage 2,219 3,568 Travelling 4,956 6,729 Legal & professional 5,550 3,795 Aountany 8,327 4,970 Computer & offie equipment osts 5,131 4,410 - Sundry 2,725 424 Bank harges 489 761 -- Reruitment and staff development 454 Meetings and events 2,128 2,857 Depreiation 744 95 9 Alloation: 117,323 123,722 -- -- Cost of generating inome 17,666 28,068 Eduation 95,358 87,431 Advie and information 1,740 4,777 Governane 2,559 3,446 117,323 123,722 -- -- Governane osts 2014 2013 Audit fee 9,300 6,240 Support osts 2,559 3,447 11,859 9,687 -- -- 10 Diretors and sole trustees None of the Trustees reeived any remuneration during the year. One trustee was reimbursed 105 for travelexpenses(2013: none) The harity paid for insurane premiums to indemnify the Diretors and other offiers against laims for losses arising from the neglets or defaults of Diretors, employees or their agents and any onsequent loss. The ost of the insurane is inluded as part of the harity's general insurane poliy, the total premium being 627 (2013: 611). - 18 -
NOTES TO THE ACCOUNTS (ontinued) FOR THE YEAR ENDED 31JULY2014 11 Employees Number of employees The average monthly number of full time equivalent employees during the year was: 2014 2013 Number Number 3.67 3.97 -- Employments osts (~l 2014 2013 0 Wages and salaries Soial seurity osts 157,044 15,437 149,533 15,065 172,481 164,598 -- There were no employees whose annual emoluments were 60,000 or more. One full time employee was on seondment in 2014 and 2013. 12 Tangible fixed assets Computer Equipment Fixtures, fittings & equipment Total Cost At 1 August 2013 Additions Disposals 10,885 2,976 (10,885) 3,712 (2,843) 14,597 2,976 (13,728) At 31 July 2014 2,976 869 3,845 Depreiation At 1 August 2013 Charge for the year Disposals 10,885 745 (10,885) 3,712 (2,843) 14,597 745 (13,728) At 31 July 2014 745 869 1,614 Net book value At 31 July 2014 2,231 2,231 At 31 July 2013 -- - 19 -
NOTES TO THE ACCOUNTS (ontinued) FOR THE YEAR ENDED 31JULY2014 13 Fixed asset investments Market value at 1 August 2013 Net Capital withdrawn Change in value in the year 4,764,779 (116,861) 258,046 Market value at 31 July 2014 The investment assets are held: In the UK Outside the UK 4,905,964 -- 3,485,776 1,420,188 ~ I Historial ost: At 31 July 2014 At 31 July 2013 4,905,964 -- 3,685,882 --- 3,571,227 The investments are managed by Adam and Company and the ertifiates are held by Produtive Nominees Limited. == Fixed asset investments inlude ash held awaiting investment of 227,549 (2013: 9,599). (. Other investments that omprise more than 5% of the total market value as at 31 July 2014 is as follows: 280,800 JPMorgan Fund ICVC Shares Class -C- - 523,973 C 14 Debtors 2014 2013 Inome tax reoverable 597 308 Debtors 721 721 Prepayments and arued inome 35,924 30,029 37,242 31,058 -- -- - 20 -
NOTES TO THE ACCOUNTS (ontinued) FOR THE YEAR ENDED 31 JULY 2014 15 Creditors: amounts falling due within one year 2014 2013 Taxes and soial seurity osts 4,830 Grants payable 116,772 97,351 Aruals 62,293 64,233 r,,--. \ 1 16 Creditors: amounts falling due after more than one year 183,895 161,584 -- -- 2014 2013 Grant ommitments: As at 31 July 2013 475,931 377,492 Payable within one year 116,772 97,351 (. \ ) ( ) 17 Payable after one year 359,159 280,141 -- = Endowment funds Movement in funds Balane at Inoming Resoures Investment Balane at 31 1 August 2013 resoures expended gain July 2014 Permanent endowments Sale of shool 3,247,278 182,062 3,429,340 Expendable endowments Legay 618,681 34,688 653,369 3,865,959 216,750 4,082,709 The Legay Fund was reated following the reeipt of a substantial legay in order to provide assistane for ativities that lie outside of the Trust's three urrent grant-making shemes, suh as the Shools projet. Inome from the investment is available to the harity to assist with day to day operations and is not added to the fund balane. - 21 -
NOTES TO THE ACCOUNTS (ontinued) FOR THE YEAR ENDED 31JULY2014 18 Restrited funds The inome funds of the harity inlude restrited funds omprising the following unexpended balanes of donations and grants held on trust for speifi purposes. Movement in funds Balane at 1 Inoming Resoures Balane at 31 August 2013 resoures expended July 2014 Queen Mother Memorial Fund 325 325 Poppy Sotland 9,747 (9,747) 325 9,747 (9,747) ( ' 325 -- -- = -- C. The aim of the Queen Mother Memorial Fund is to provide a permanent sholarship in memory of the Trust's late patroness. The money donated by Poppy Sotland is restrited against speifi students for best use by the trust. 19 Designated funds The inome funds of the harity inlude the following designated funds whih have been set aside out of unrestrited funds by the Trustees for speifi purposes: Movement in funds Balane Inoming at 1 Resoures August 2013 Resoures Expended Investment gain Transfers Balane (. at 31 July 201/1-" L. Monia Cran Legay Fund 49,369 (10,000) 39,369 The Monia Cran Legay Fund was reated following the reeipt of funds from the estate of Monia Cran. The fund will be used to award an annual grant to support eduation projets. - 22 -
NOTES TO THE ACCOUNTS (ontinued) FOR THE YEAR ENDED 31JULY2014 20 Analysis of net assets between funds Unrestrited funds Designated funds Restrited Endowment Total funds funds ( 1 '---- Fund balanes at 31 July 2014 are represented by: Tangible fixed assets 2,231 Investments 645,252 Current assets 218,744 Creditors: amounts falling due within one year (183,895) Creditors: amounts falling due after more than one year (359,159) 39,369 2,231 4,082,709 4,767,330 325 219,069 (183,895) (359,159) 323,173 -- 39,369 -- 325 4,082,709 4,445,576 -- -- 21 Commitments under operating leases At 31July2014 the ompany had annual ommitments under non-anellable operating leases as follows: Land and Buildings Other 2014 2013 2014 2013 C1 Ci Expiry date: Within one year 907 Between two and five years 5,667 5,374 5,667 5,374 907 -- -- -- -- - 23 -