Scottish Charity No: SC031442 REPORT AND ACCOUNTS FOR THE YEAR ENDED 30TH APRIL, 206 S.~ 800.002-AGMF-3 00416 11 / 10/2016
GENERAL INFORMATION AND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH APRIL. 2016 The trustees present their annual report and financial statements for the charity for the year ended 30th April 2016. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the y financial statements and comply with the Charity's Trust Deed, the Charities and Trustee Investment (Scotland) ~7 Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard for Smaller Entities (effective 1st January 2015). Objectives and activities Objectives of trust: The trustees are directed in terms of the Trust Deed to pay or apply the Income or Capital of the trust fund for the benefit or furtherance of such purposes, objects or institutions, charitable in law, as the trustees~n their absolute discretion shall determine. The trustees are also authorised to accumulate Income for the twenty one year period from 23rd February, 2001. Although the objectives asset out in the Trust Deed are far reaching, the trustees favour supporting projects in the fields of Health and Education. It should be noted that the trustees are not bound to continue supporting organisations in these areas and may in the future favour other areas of benefit whilst remaining within the objectives of the Trust Deed. ~ The trustees do not engage directly in charitable activities or projects. ` By support of other charities the trustees' aim is to provide public benefit by ensuring that the front line charitable activities of those organisations can be sustained. Grant making policy The trustees have opted for a policy of making donations to those organisations they feel require most support and whose purposes fall within the spectrum of the Trust Deed, and within the trustees' favoured areas of support. These are principally health related although consideration would be given to organisations involved in the areas of education, animal welfare or cultural causes. The trustees' preference is to make grants to UK charities where the grant will make a significant difference to a specific project and where the funds are applied to a particular project rather than the organisation's general expenditure. Report on the activities of the trust The trustees have received applications from a number of organisations throughout the year. During the year the trustees made donations totalling 10,430.00 as recorded at Note 6 of the financial statements (2015 10,000.00) and 59,500:00 (2015 89,000.00) of previous commitments were also paid. Commitments outstanding at 30th April, 2016 amount to 11,500.00 (2015 71,500.00). The donations made in the year included the release of the second part of a contingent obligation made in the p~euious account. The trustees are aware that, in previous years, the high level of commitments held has resulted in the depletion of capital arrd therefore wish to redress the balance. Accordingly, the trustees have decided to suspend making new commitments and donations until late 2017 and to reinvest ~ excess income as permitted under the Trust Deed until then. Going forward, and once the capital position has recovered, it is the intention of the trustees only to distribute the net income of the» trust. ~ Page 2
_i THE DEREK STEWART CHARITABLE TRUST GENERAL INFORMATION AND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH APRIL, 2016 Achievements and performance: Investment policy and performance In accordance with the Trust Deed, the Trustees have power to invest in such stocks, shares, investments and property in the United Kingdom or abroad as they in their sole discretion think fit. The trustees engaged Speirs &Jeffrey as investment managers. The trustees' investment policy is geared towards a balanced return between capital and income. There are some constraints as to the investments which may constitute the portfolio at any time. In the year to 30th April 2016 capital values have depreciated by 8.02% (2015 appreciated by 5.7%) although gross investment income increased by 2.42% (2015 decrease 236%). The capital depreciation has been attributed to net disposals of approximately f2,5,,,p00.00., in the year together with lower market prices at the account date. Income appreciation is due to changes in the portfolio on the current and prior years. Financial review: Financial report The trust's ability to make meaningful donations is reliant on income and investment returns from its investment portfolio. The trust investments have a fair value of 1,676,686.21 (2015 1,822,805.03) and there are net current assets of 36,70632 (2015 net current liabilities 5,315.90). During the financial year the trust received income of 70,556.50 (2015 68,962.10) and made net donations of 10,430.00 (2015 10,000.00). Reserves policy It is the policy of the trustees to distribute the income of the trust in the form of grants or donations. It is anticipated that any surplus income at the close of the account would normally be so distributed in the following year although this is subject to the trust first restoring its capital to its original levels to ensure the trust's sustainability. As the trust does not provide direct charitable services, the trustees befieve that normal expenditure can be met from income generated. The funds of the trust are wholly unrestricted and are represented by a portfolio of investments and cash balances. The Investments are managed on a discretionary basis by the investment managers. The trustees have power to draw upon the investments in furtherance of the trust's objectives whilst retaining sufficient funds to meet any commitments they may undertake. As the assets of the trust are held in a ready realisable form the trustees do not therefore consider it necessary to maintain specific reserves. Risk management The trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the trust and are satisfied that systems are in place to mitigate their exposure to the major risks. As the trust relies on its investment returns in order to make its donations, the, principal risk faced by the trust lies in the performance of its investments. The trustees consider variability of investment returns to constitute the charity's major financial risk and have mitigated this by retaining investment managers to advise them and by having a diversified portfolio. Going concern The trustees have no material uncertainties as to the trust's ability to continue as a going concern. Page 3
GENERAL INFORMATION AND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH APRIL, 2016 Structure. governance &.management Founding document Deed of Trust by Derek Robert James Stewart dated 23rd February, 2001 and registered in the Books of Council and Session on 8th March, 2001. Appointment of new trustees Reserved to the trustees in office. Training of trustees There are no formal training procedures in place, but the trustees receive advice from Turcan Connell regarding relevant changes in the regulation and governance of charities. Related parties The Partners of Turcan Connell are directors of Turcan Connell (Trustees) Ltd. Turcan Connell provide legal and accounting services to the trust for which fees are charged. In the year to 30th April 2016 Turcan Connell fees amounted to 20,592.00 (including VAT) (2015 16,824.00). is a partner of Peter Gregory &Associates who charged fees in the year of Z,ioo.00 (loss z,ioo.00a. Employees The trust has no employees (2015 None). The trustees have engaged Turcan Connell to undertake the administration of the trust, remuneration for which is recorded in the financial statements. Management All trustees are active in the management of the trust. Reference and administrative details Scottish Charity Number:- SC 031442 Address:- Turcan Connell Princes Exchange 1 Earl Grey Street Edinburgh, EH3 9fE Trustees (Appointed b Deed or Assumption Turcan Connell (Trustees) Ltd -per Appendix Solicitors Independent examiner Turcan Connell Princes Exchange 1 Earl Grey Street EDINBURGH EH3 9EE Springfords LLP DundasHouse Westfield Park Eskbank, EH22 3FB 'Investment advisers _ Bankers Speirs &Jeffrey 36 Renfield Street GLASGOW G2 1NA Bank of Scotland New Uberior House 11 Earl Grey Street EDINBURGH, EH3 9BN Paae 4
GENERAL INFORMATION AND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH APRIL. 2016 Statement of trustees' The trustees are responsible for preparing the Report and the financial statements in accordance with responsibilities in applicable law and regulations. respect of the financial statements The Charities and Trustee Investment (Scotland) Act 2005 and The Charities Accounts (Scotland) Regulations 2006 (as amended) require the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the trust and of its results for that period. K ` -. In preparing those financial statements, the trustees are required to follow best practice and: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis, unless it is inappropriate to assume that the. trust will continue on that basis. The above noted legislation also requires the trustees to be responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the trust to enable them to ensure that the financial statements comply with the legislation. They are also responsible for safeguarding the assets of the trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities: Financial statements preparation The trustees confirm that the financial statements for the year ended 30th April, 2016 have been prepared so as to comply with current statutory requirements, the Charity SORP and the charity's-own governing document. Approved by the trustees and signed on their behalf on Date:...~.J...~ l L~ ~'~ ~ ~... Trustee:..~^~'(~C~d1~ Page 5
! J THE DEREK STEWART CHARITABLE TRUST I NDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES report on the financial statements of the trust for the year ended 30th April 2016, which are set out on pages 8 to 14. This report is made to the trustees, as a body, in accordance with the terms of my engagement. My work has been undertaken to enable me to report my opinion as set out below and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the trustees, as a body, for my work or for this report. Respective responsibilities of trustees and examiner The charity's trustees are responsible for the preparation of the financial statements in accordance with the terms of the Charities &Trustee Investment (Scotland) Act 2005 ("the Act") and the Charities Accounts (Scotland) Regulations 2006 (as amended) (" the Regulations"). The charity trustees consider that the audit requirement of Regulation 10(1) (a) to (c) of the Regulations does not apply. It is my responsibility to examine the financial statements ~ as required under section 44(1) (c) of the Act and to state whether particular matters have come to my attention. Basis of independent examiner's report My examination was carried out in accordance with Regulation 11 bf the Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records.. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from you as trustees 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 financial statements. Independent examiner's statement In the course of my examination, no matter has come to my attention 1) which gives me reasonable cause to believe that in any material respect the requirements - to keep accounting records in accordance with Section 44 (1)(a) ofthe Act and Regulation 4 of the Regulations; and - to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Regulations have not been met; or 2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached: For and on behalf of Springfords LLP Chartered Accountants Dundas House Westfield Park Eskbank Edinburgh Date: 2~~/0~~~, i ~- :a --. Page 6 ~z~ ~
BALANCE SHEET AS AT 30TH APRIL. 2016 Fixed assets Notes Investments 4 1,676,686.21 1,822,805.03 Current assets Cash on deposit and in hand 53,144.32 56,413.28 Debtors 2 3$2.4-53,326.72 56,413.28 Current liabilities Amounts due within 12 months 3 (16,620.00) (61,729.18) Net current assets/(liabilities) 36,706.72 (5,315.90) Long-term liabilities Amounts due after more than 12 months 3 - (12,000.00) Net assets 1,713,392.93 1,805,489.13 The funds of the charity U nrestricted funds 10 1,713,392.93 1,805,489.13 Total charity funds 1,713,392.93 1,805,489.13 The financial statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective 1st January 2015) Approved by the Trustees and authorised to be signed on their behalf on Date:...4.7~?...1...~. ~.I.~~:(o Trustee...~r.Ct.-~C Page 7
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30TH APRIL, 2016 Income and endowments from: Notes Tota f f Investments 5 70,556.50 68,962.10 Total income 70,556.50 68,962.10 Expenditure on: Raising funds Charitable activities Donations Support and governance costs Total expenditure Net income before (losses')/gains on investments Net (losses)/gains on investments Net movement in funds 7 (7,972.77) (8,254.18) 6 (10,430.00) (10,000.00) 8 (23,712.00) (19,944.00) (42,114.77) (38,198.18) 28,441.73 30,763.92 4 (120,537.93) 82,894.85 (92,096.20) 113,658.77 Reconciliation of funds _~ Total funds brought forward Total funds carried forward 1,805,489.13 1,691,830,36 1, 713, 392.93 1, 805,489.13 ~ The incoming funds and resources expended are derived from continuing activities. Page 8
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH APRIL. 2016 1 Accounting Policies (a) Financial statements preparation The financial statements have been prepared under the historical cost convention modified to include revaluation of fixed assets and to comply with Trust Law. The financial statements have been prepared in accordance with the Accounting and Reporting by charities: Statement of Recommended Practice for charities preparing their financial statements in accordance with the Financial Reporting Standard for Smaller Entities effective 1st January 2015 the Financial Reporting Standard for Smaller Entities (FRSSE), the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006 (as amended). The trust constitutes a public benefit entity. The financial statements have been prepared on a going concern basis. The trustees have assessed the trust's a bility to continue as a going concern and have reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future, thus they continue to adopt the going concern basis of accounting in preparing the financial statements. In the previous financial statements the trustees recorded separate capital and income columns within the Statement of Financial Activities. As all of the funds of the trust are unrestricted and, in view of other presentational changes required by the new SORP, the trustees have opted to consolidate both columns. This has resulted in changes to a number of the accounting policies from the previous year which referred to the differentiation between capital and income. b) Investments Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value (open market value) at the balance sheet date. The Statement of Financial Activities includes the net gains or losses arising on revaluation and disposals throughout the year. c) Investment Gains and losses All gains or losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses are calculated as the difference between the sale 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 differencebetween the fair value at the year end and their carrying value. Realised and unrealised gains and losses are combined in the Statement of Financial Activities. d) Income Investment income is included in the financial statements in the year in which it becomes entitled to it, it can be reliably determined and there is probability of receipt. Donations are included in the financial statements together with associated gift aid, where applicable, when the trustees have been advised of the donation with notification of both amount and intended settlement date. e) Expenditure Expenditure is included in the financial statement on an accruals basis and recognised in full as soon as a constructive obligation exists, the sums payable can be reliably measured and there is probability y of payment. (e) Cost of raising funds Investment management charges are included on an accruals basis and recognised in full as soon as a constructive obligation exists. r ~~ Page 9
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH APRIL, 2016 (f) Support and governance costs Fees charged by Turcan Connell for legal and accounting services are included in the financial statements as follows: Support (Legal and Administrative Costs) - 66.667% Governance (Accountancy Costs) - 33.333% These are recorded in support and governance costs in the Statement of Financial Activities. Independent examination fees are recorded in support and governance costs in the Statement of financial Activities. All other support and governance costs are recorded in the Statement of Financial Activities as appropriate. As the charity does not provide services directly but byway of grants to other organisations, support and governance costs are not allocated against individual grants or donations. (g) Grants Grants authorise! to be paid in respect of the accounting year or future years are provided for in the financial statements. (h) VAT The Charity is not registered for VAT purposes and all VAT incurred is therefore irrecoverable. Where applied, VAT is included as part of the expense. 2 Debtors Income Tax Repayment f 182.40-182.40-3 Creditors Due within 12 months Turcan Connell, Solicitors, administration fee to 30th April 2016 Springfords LLP examination fee University of Edinburgh Development Trust 3 of 3 @ 11,500 Pain Concern 3 of 3 @ 500 H MRC, income tax due The Friends of Michael Sobell House SOS Bus NI Ltd SOS Bus NI Ltd PBC Foundation Due more than 12 months University of Edinburgh DevelopmentṮrust Pain Concern f 3, 600.00 1, 080.00 1,020.00 1,020.00 11,500.00 11,500.00 500.00 500.00-129.18-20,000.00-15,000.00-5,000.00-7,500.00 16,620.00 61,729.18-11,500.00-500.00-12,000.00 Page 10
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH APRIL, 2016 4 Investments Market Value of Investments at 30/04/15 Add Investments purchases Less Investment sales 1, 8.22, 805.03 1, 724, 538.00 291,127.80 183, 675.24 2,113,932.83 1,908,213.24 316, 708.69 16 8, 3 03.0 6 1,797, 224.14 1,739,910.18 Net realised (losses)/gains Unrealised (losses)% gains Fair value of investments at 30/04/16 Book value of investments at 30J04/16 (32,783.05) 10,259.08 (87,754.88) (120,537.93.. _. _.72,635J7 1, 676, 686, 21 1, 822,805.03 1,488,213.65 1,516, 634.56 5 Investment income Dividends and Interest Bank Interest 70,518.46 68,851.85 38.04 110.25 70,556.50 68,962.10 6 Donations Health The Friends of Michael Sobell House The PBC Foundation Pain Concern RAFT The Cure Parkinson's Trust 5 of 5 @ 20,000 5 of 5 @ 7,500 2 of 3 @ 500 f 20,000.00 20,000.00 7,500.00 7,500..00 500.00 - - 20,000.00-10,000.00 Other The Raeburn Place Foundation SOS Bus NI Ltd 7 of 7 @ 15,000 SOS Bus NI Ltd 6 of 6 @ 5,000 The University of Edinburgh Development Trust 2 of3 @ 11,500 St Crispin's Out of School Care 28,000.00 57,500.00 10,000.00 10,000.00 15,000.00 15,000.00 5,000.00 5,000.00 11,930.00 - - 11,500.00 41,930.00 69,930.00 99,000.00 Less: Committed payments (59,500.00) (89,000.00) 10,430.00 10,000.00 Page 11
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH APRIL. 2016 6 Future commitments The trustees' commitments carried forward at 30th April 2015 Less: Committed payments made in year New Commitments in 2015/16 71,500.00 (59,500.00) 12,000.00 N IL Total Commitments carried forward 12,000.00 Due thus: University of Edinburgh Development Trust Pain Concern 1 of 3 @ 11,500 1 of 3 @ 500 11,500.00 500.00 12,000.00 7 Costs of raising funds Speirs & Jeffery investment fees f 7,972.77 8,254.18 8 Support and governance costs 2016 2015 Management and administration Other costs 13,728.68 2,100.00 11,216.56 2,100.00 Governance Accountancy Examination fee 6,863.32 1,020.00 15,828.68 13,316.56 5,607.44 7,883.32 1,020.00 9 Trustee Expenses 23,712.00 19,944.00 No fees or expenses have been paid to the trustees (2015 nil). The trust has no employees. All trustees act gratuitously. Payments totalling 20,592.00 (2015 16,824.00) including VAT have been made to Turcan Connell, for their acting as Solicitors and for administering the trust. Turcan Connell (trustees) Ltd is a trustee Company of Turcan Connell. The trustee is a partner of Peter Gregory &Associates. Peter Gregory &Associates charged fees totalling f2,100.00 (2015 2,100.00) in the period. Page 12
APPENDIX TO ACCOUNTS TURCAN CONNELL (TRUSTEES) LIMITED DIRECTORS REPORT EXTRACT Directors and their in#erests The Directors who held office during the year ended 31st July 2015 were as follows (Retired 30th June 2015) (Assumed 1st April 2015) (Assumed 1st April 2015) (Assumed 1st April 2015) (Assumed 1st April 2015) Page 13