THE NEWBATTLE ABBEY COLLEGE TRUST Accounts for the Year

THE NEWBATTLE ABBEY COLLEGE TRUST

Accounts

For The Year Ended

5th April 2020

Registered Scottish Charity No: SC018166 THE NEWBATTLE ABBEY COLLEGE TRUST

Contents

Page

1 - 6 Trustees' Report

7 Statement of Financial Activities

8 Balance Sheet

9 - 10 Statement of Cash Flows

11 - 18 Notes to the Accounts

19 - 21 Report of the Independent Auditors THE NEWBATTLE ABBEY COLLEGE TRUST

Trustees' Report

For the year ended 5 April 2020

The financial statements are prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Trust Deed, 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 (FRS 102) (effective 1 January 2019).

Objectives: (Extracted from the Trust Deed as amended by Interlocutor and Deed of Supplementary Trust Provisions)

"I, The Most Honourable , MARQUESS OF LOTHIAN, Companion of Honour, considering that with the object of establishing at Newbattle Abbey, Midlothian, a Residential Adult Education College, for the purposes of annual and shorter courses of study for adults and Summer Schools and Conferences and for other purposes….I have conveyed….in trust to….the Principals of the Universities of Glasgow and Edinburgh and also the Principal of the University of Aberdeen…as Trustees….and their successors as Trustees….The heritable subjects known as Newbattle Abbey amounting in all to about 125 acres; And Considering further that certain Funds, Endowments and Bursaries have been and may in the future be given for the purposes foresaid;…

Second: … the Trustees shall hold the said heritable subjects for use….

(a) As a Residential Adult Education College for students of not less than 18 years of age.

(b) As a centre for Conferences on educational subjects or public questions, Summer Schools for students regardless of age and short or long term courses of study and also for educational and social activities in the neighbourhood.

(d) As a holiday centre for British and other students of not less than 18 years of age…

Sixth: The whole of the Trust Funds shall be held by the Trustees. The Trust Funds, and the income thereof, shall not be capable of being attached by the Governors, or their creditors and shall be applied, paid or conveyed by the Trustees for all or any of the following purposes, viz:

(a) The income and, if necessary, the capital shall be applied in the first place and preferably in payment, so far as not met by the Governors, of the expenses of executing this Trust (including the upkeep of the said heritable subjects and maintaining, adapting or improving the said heritable subjects and the facilities therein as necessary to meet the purposes in clause Second hereof).

(b) Any surplus income after meeting the expenses of the Trust (including as aforesaid) shall, in the option of the Trustees, be applied in the first place and preferably in restoring any part of the capital of the Trust Funds which may have been spent by them as above- mentioned. The balance of such surplus income shall be paid over annually or at such times as the Trustees may deem advisable to the Governors to be applied by them for the purposes of the Constitution so long as the Governors continue to exist and to meet the obligations imposed on them under the second clause hereof...

Page 1 THE NEWBATTLE ABBEY COLLEGE TRUST

Trustees' Report

For the year ended 5 April 2020 (Contd)

Objectives (Contd): Notwithstanding what is provided in this Article Sixth, the Trustees shall be entitled, in their sole discretion, and subject to such conditions as they may think fit to impose, to advance on such terms as the Trustees may in their absolute discretion think fit to the Governors by way of grant or loan (including interest-free), or otherwise apply for the general purposes of the Trust, so much of the capital of the Trust Funds as they may consider reasonable; declaring that in the event that any such advance or advances of capital shall be made to the Governors by way of loan, the Trustees may in their absolute discretion discharge any such loan without payment in whole or in part, in which event the Governors shall be under no obligation to the Trustees to repay any such advance or advances.

In terms of clause Eighth, the trustees are prohibited from selling or feuing the heritable subjects owned by the trust without the consent of the Court of Session.

Grant Making Policy: The trustees meet four times a year to consider applying trust funds in furtherance of the charitable objects of the trust. The trustees are kept informed by the College Principal of developments at the College and the future plans of the College Directors. The trustees are advised of their responsibilities and legislative changes by the trust solicitors, who attend trust meetings as and when required.

Achievements and The trustees are pleased to report the majority of the assets and liabilities of the charity Performance: have been transferred to Newbattle Abbey College Trust Limited and these charitable payments are referenced in Note 7.

Financial Review: The trustees are in the process of dissolving the trust.

The closing balance of funds is £1,910,000 (2019; £5,466,905) which is comprised of £1,910,000 (2019; £2,080,682) of Unrestricted Funds and £nil (2019; £3,740,405) of Restricted Funds.

Total income for the period amounted to £70,943 (2019; £61,001). The trustees awarded charitable payments of £3,677,849 (2019; £378,379) as set out in note 7 to the accounts. The trustees report an overall net deficit for the period of £3,556,905 (2019; £411,041 overall net deficit) following the transfer of assets to Newbattle Abbey College Trust Limited. The trustees originally lent the College £150,000 interest-free in order to clear the College's bank overdraft. The loan was to be repaid by fifteen annual instalments from 2008. The trustees also lent the College £20,000 interest-free in order to facilitate the refurbishment of the Main House toilets. This loan was to be repaid by five annual instalments. At meetings of the trustees held on 6 June 2013 and 23 August 2013 the trustees agreed to allow the College a one year moratorium on the total annual repayments of £14,000. At the meeting of the trustees held on 21 October 2013 the trustees agreed to write off against the outstanding loans a sum equivalent to some identified insurance premiums for the accounting period ended 5 April 2013 (£35,168). £8,000 of the sum of £35,168 has been applied against the toilet refurbishment loan and the remainder applied against the original loan. Therefore, the toilet refurbishment loan has been repaid. At the meeting of the trustees held on 19 May 2016 the trustees agreed to a loan repayment moratorium of one year.

Page 2 THE NEWBATTLE ABBEY COLLEGE TRUST

Trustees' Report

For the year ended 5 April 2020 (Contd)

Financial Review In March 2010 the trustees decided to cease paying general revenue grants to the College (Contd): for the foreseeable future. On 1 April 2014 the clerk to the trustees notified the then trust administrators that "The trustees are minded to remit to the College the sum of £96,307 to meet 2013/14 insurance premiums and a number of contingencies, including improvements to security".

At their meeting in May 2015 the trustees received a request from the College to contribute £40,769 towards identified insurance premium costs pertaining to 2014/15. This amount was agreed. At the same meeting the trustees also received a request from the College to contribute £31,442 towards the cost of specific urgent repairs pertaining to 2014/15. This amount was also agreed subject to the strong proviso that a contribution towards such costs in the future could not be accommodated unless additional trust funds were to materialise.

At the October 2018 meeting, revised at the January 2019 meeting, the trustees agreed to commit £301,000 to the College to fund the refurbishment of the residential area. At the same meetings it was agreed to make an annual grant of £75,000 to the College for four years to cover additional insurance premiums, and also meet certain legal costs defending and raising actions concerning a former tenant. These legal actions have now been resolved.

Following approval by the Scottish Charity Regulator, the Office of the Scottish Charity Regulator, during the accounting period the assets and liabilities of the charity were transferred to Newbattle Abbey College Trust Limited, registered Scottish charity number SC048902. The tangible heritable property known as Newbattle Abbey is in the process of being transferred to Newbattle Abbey College Trust Limited.

Investment Policy: In accordance with the Trust Deed, as amended, and statutory provision, the trustees have the power to invest in such stocks, shares and investments in the United Kingdom or overseas as they in their sole discretion think fit. In view of the heavy demands on the cash funds in the trust, the trustees agreed to maintain a tranche of funds in a relatively short term notice account with Investec Bank which have now been transferred to Newbattle Abbey College Trust Limited.

The trustees engaged Brewin Dolphin Limited to manage restricted funds. The trustees' investment policy was geared towards a balanced return between capital and income from a medium risk perspective. The trustees were satisfied with the performance of the investments up to the point of transfer to Newbattle Abbey College Trust Limited.

Reserves Policy: In terms of the Trust Deed, as amended, the Directors of Newbattle Abbey College are entitled to surplus income from the trust after payment of expenses and restoration of trust capital, and the trustees can apply the capital in maintaining, adapting or improving the heritable property and the facilities therein. The trustees are also entitled to advance capital to the College by way of grant or loan (including interest-free) and discharge any such loan without payment. Payments are made to the College on consideration of its request for assistance. At their meeting on 7th May 2014, the trustees formally ratified their conclusion following email correspondence in March 2014 that the minimum amount to be held in reserves should be re-set to £160,000 and at the meeting of 17 November 2017 it was agreed to maintain this level. The trustees acknowledge a reserves policy is no longer appropriate.

Page 3 THE NEWBATTLE ABBEY COLLEGE TRUST

Trustees' Report

For the year ended 5 April 2020 (Contd)

Risk Management: The trustees have assessed the risks to which the trust is exposed and are satisfied that systems are in place to mitigate those risks. The most significant areas of uncertainty were the level of investment return and overall performance over time of the mix of assets in the portfolio in volatile markets. These areas were regularly reviewed by both the investment managers and the trustees.

Related Parties: The trustees received no remuneration during the year nor were reimbursed any expenses (2019; £nil). The amount of waived expenses is immaterial with respect to the overall expenditure of the trust. In the accounting period there were no related party transactions (2019; £219 to settle the annual premium on the trustee indemnity insurance policy) and (2019; £219 to settle the annual premium on the management liability insurance policy).

Future Activities: Once the tangible heritable property known as Newbattle Abbey has been transferred to Newbattle Abbey College Trust Limited the trustees will apply to the Scottish Charity Regulator to dissolve the charity. The trustees are very much adhering to the Scottish Government's Covid-19 guidance, meetings will be conducted by video conferencing until such time as it is safe to meet in person.

Structure, Governance and Management:

Overview: The founding document of the trust is a Deed of Trust by The Most Honourable , Marquess and Earl of Lothian, Companion of Honour, dated 8 March 1937 and registered in the Books of Council and Session on 31 March 1937 as amended by Interlocutor of the Court of Session dated 23 December 2003 and registered in the Books of Council and Session 21 January 2004 and the Deed of Supplementary Trust Provisions dated 16 September 2011 (and subsequent dates) and registered in the Books of Council and Session on 9 December 2011.

Trustee Tenure: Other than the ex officio trustees, there is no predefined period of trustee appointment. A new trustee may be appointed by Deed of Assumption and Conveyance. At trustee meetings the trustees reviewed the control functions of the trust and considered the merits of appointing new trustees who would be able to offer a positive contribution to running the trust.

The trustee induction process involves awareness of a trustee's responsibilities, the governing documents, administration procedures, and the history of the charity. A new trustee received a copy of the previous year's account and also an extract from the Charities and Trustee Investment (Scotland) Act 2005 relating to the duties and responsibilities of running a charity.

Charitable Status: The trust is a registered Scottish charity. As such, until such time as the charity is dissolved the trustees must ensure the circumstances and operations of the trust continue to meet the charity test and the trustees are required to comply with their statutory duty to supply information to the Scottish Charity Regulator, the Office of the Scottish Charity Regulator.

Page 4 THE NEWBATTLE ABBEY COLLEGE TRUST

Trustees' Report

For the year ended 5 April 2020 (Contd)

Reference and Administrative Details

Charity Number: SC018166

Address of Principal Office:

Trustees: The current trustees of the trust include the Principal of the University of Glasgow being an ex officio appointment, currently:

and the following trustees, namely:

Clerk to the Trustees:

Solicitors and Shepherd and Wedderburn LLP Administrators: 1 Exchange Crescent Conference Square Edinburgh EH3 8UL

Bankers: Bank of Scotland Investec Bank 33 Old Broad Street 2 Gresham Street London London EC2V 7QP PO Box 1000 BX2 1LB

Investment Brewin Dolphin Limited Managers: Sixth Floor, Atria One 144 Morrison Street Edinburgh EH3 8EX

Independent Wylie & Bisset (Audit) Limited Auditors: 168 Bath Street Glasgow G2 4TP

Page 5

THE NEWBATTLE ABBEY COLLEGE TRUST

Statement of Financial Activities for the year ended 5 April 2020

Unrestricted Funds Unrestricted Funds General Endowment Restricted Total General Endowment Restricted Total Fund Fund Fund 2020 Fund Fund Fund 2019 £££ ££££ £ Notes Income and Endowments From:

Investments 4 70,943 - - 70,943 59,842 - - 59,842 Other Income 5 ------1,159 1,159

Total Income 70,943 - - 70,943 59,842 - 1,159 61,001

Expenditure on:

Raising Funds 6 (8,827) - - (8,827) (11,319) - (894) (12,213)

Charitable Activities 7 593,997 (826,795) (3,469,577) (3,702,375) (105,382) - (377,265) (482,647)

Total Expenditure 585,170 (826,795) (3,469,577) (3,711,202) (116,701) - (378,159) (494,860)

Net Realised Gains on Disposal of Fixed Assets 8 ------7,135 7,135 Net Realised Gains on Disposal of Investments 9 - - 741 741 - - - - Net Unrealised Gains on Revaluation of Investments 9 - - 82,613 82,613 - - 15,683 15,683

Total Net Gains - - 83,354 83,354 - - 22,818 22,818

Net Income/(Expenditure) and Net Movement in Funds 12 656,113 (826,795) (3,386,223) (3,556,905) (56,859) - (354,182) (411,041)

Reconciliation of Funds Total Funds as at 05/04/2019 12 (656,113) 2,736,795 3,386,223 5,466,905 (599,254) 2,736,795 3,740,405 5,877,946

Total Funds as at 05/04/2020 - 1,910,000 - 1,910,000 (656,113) 2,736,795 3,386,223 5,466,905

The notes on pages 11 - 18 form part of these accounts.

The charity has no recognised gains or losses other than the results for the year as set out as above.

Charitable activity has now ceased and the charity is in the process of being wound-up.

The trustees no longer consider the charity to be operating as a going concern.

Page 7

THE NEWBATTLE ABBEY COLLEGE TRUST

Statement of Cash Flows for the year ended 5 April 2020

Unrestricted Funds General Endowment Restricted Total Total Fund Fund Fund 2020 2019 Notes £ £ £ £ £

Cash Flows From Operating Activities: Net Cash Provided by/(Used in) Operating Activities 530,161 (826,795) (3,770,577) (4,067,211) (3,796,429)

Cash Flows From Investing and Financing Activities: Dividends and Interest From Investments 4 70,943 - - 70,943 59,842 Proceeds From Sale of Investments 9 - - 62,062 62,062 3,491 Purchase of Investments 9 - - (37,496) (37,496) (2,987,967) Transfer of Investments 9 - - 3,058,947 3,058,947 - Loan repayment/transfer 32,832 - - 32,832 10,000

Net Cash Provided by/(Used in) Investing and Financing Activities 103,775 - 3,083,513 3,187,288 (2,914,634)

Change in Cash and Cash Equivalents in the Reporting Period 633,936 (826,795) (687,064) (879,923) (6,711,063)

Cash and Cash Equivalents at the Beginning of the Reporting Period (633,936) 826,795 687,064 879,923 7,590,986

Cash and Cash Equivalents at the End of the Reporting Period - - - - 879,923

Reconciliation of Net Income/(Expenditure) to Net Cash Flows From Operating Activities

Unrestricted Funds General Endowment Restricted Total Total Fund Fund Fund 2020 2019 Notes £ £ £ £ £ Net Income/(Expenditure) For The Year (As Per Statement of Financial Activities) 656,113 (826,795) (3,386,223) (3,556,905) (411,041)

Adjusted For: Net Realised (Gains) on Disposal of Investments 9 - - (741) (741) - Net Unrealised (Gains) on Revaluation of Investments 9 - - (82,613) (82,613) (15,683) Dividends and Interest From Investments 4 (70,943) - - (70,943) (59,842) Decrease/(Increase) in Debtors 10 20,035 - - 20,035 (10,035) (Decrease) in Creditors 11 (75,044) - (301,000) (376,044) (3,299,828)

Net Cash Provided by/(Used in) Operating Activities 530,161 (826,795) (3,770,577) (4,067,211) (3,796,429)

Page 9 THE NEWBATTLE ABBEY COLLEGE TRUST

Statement of Cash Flows for the year ended 5 April 2020 (Contd)

Analysis of Cash and Cash Equivalents Unrestricted Funds General Endowment Restricted Total Total Fund Fund Fund 2020 2019 Notes £ £ £ £ £

Instant Access Bank Deposits - - - - 44,076 Time Deposit Account - - - - 835,847

Balance at End of Reporting Period - - - - 879,923

Page 10 THE NEWBATTLE ABBEY COLLEGE TRUST

Notes to the Accounts

For the year ended 5 April 2020

1 Accounting Policies

Accounting Convention and Going Concern

The accounts have been prepared under the historical cost convention, as modified by the inclusion of fixed asset investments at fair value (market value), and are in accordance the Charities and Trustees Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) 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 (FRS102) (effective 1 January 2019).

The charity constitutes a public benefit entity.

Charitable activity has now ceased and the charity is in the process of being wound-up. The trustees no longer consider the charity to be operating as a going concern. Any remaining assets will be realised in the normal course of business and no amendment has been made to the balances in the financial statements in relation to the wind-up.

Funds Structure

The charity has two unrestricted funds, a General Fund and an Endowment Fund. Unrestricted funds comprise those funds which the trustees are 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. The Endowment Fund is comprised of tangible heritable property known as Newbattle Abbey which is in the process of being transferred to Newbattle Abbey College Trust Limited (SC048902).

In addition, the charity has a restricted fund comprised of tangible heritage assets which were left in the tangible heritable property by Lord Lothian at the time of gifting Newbattle Abbey. These items are subject to a letter of wishes by Lord Lothian.

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 and legacies 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 on 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.

Expenditure Recognition

Liabilities are recognised as expenditure as soon as there is a 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.

Page 11 THE NEWBATTLE ABBEY COLLEGE TRUST

Notes to the Accounts

For the year ended 5 April 2020 (Contd)

1 Accounting Policies (Contd)

Expenditure Recognition (Contd)

All expenditure is included on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. The trust is not VAT registered and as such expenditure is shown inclusive of VAT where applicable.

Charitable payments are payments made in the furtherance of the charitable objects of the trust. In the case of an unconditional payment this is accrued once the payment has been made or the recipient has been notified of the award. The notification gives the recipient a reasonable expectation that they will receive funds. 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 attaching to that grant is outside of the control of the trustees.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include Independent Auditor's fee and costs linked to the strategic management of the charity. Shepherd and Wedderburn's fee is split between general bookkeeping costs and governance costs. The allocation is based on staff time.

Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Costs of Raising Funds

Costs of raising funds include expenditure relating to the disposal of tangible heritage assets.

Tangible Heritable Property

Heritable property is shown in the Balance Sheet at a historic book value based on a valuation carried out prior to 5 April 1998. The trustees are of the opinion that since the property is in the process of being transferred to Newbattle Abbey College Trust Limited it would be inappropriate to account for this at fair value, therefore the most recent valuation is taken as deemed cost.

Tangible Heritage Assets

An inventory of artworks of artistic and cultural value were conditionally gifted to the trust and are on display at the College. The ownership structure on disposal has however not been agreed between all interested parties and therefore it was not possible to attribute a fair value in the Balance Sheet. Realised and unrealised gains or losses are recognised in the Statement of Financial Activities. These assets have now been transferred to Newbattle Abbey College Trust Limited.

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. Realised and unrealised gains or losses are recognised in the Statement of Financial Activities. These investments have now been transferred to Newbattle Abbey College Trust Limited. The trust does not acquire securities, put options, derivatives or other complex financial instruments.

Page 12 THE NEWBATTLE ABBEY COLLEGE TRUST

Notes to the Accounts

For the year ended 5 April 2020 (Contd)

1 Accounting Policies (Contd)

Interest Free Loans

The trustees made interest free loans to Newbattle Abbey College. The value in the accounts is recognised as anticipated cash receivable rather than measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. The trustees do not believe this would have a material impact on the charity finances based on the sums involved. These assets have now been transferred to Newbattle Abbey College Trust Limited.

2 Trustees' Reimbursements

The trustees received no remuneration during the year nor were reimbursed any expenses (2019; £nil). The amount of waived expenses is immaterial with respect to the overall expenditure of the trust. In the accounting period there were no related party transactions (2019; £219 to settle the annual premium on the trustee indemnity insurance policy) and (2019; £219 to settle the annual premium on the management liability insurance policy).

3 Employees

There were no salaried employees during the year (2019; £nil). The clerk to the trustees is contracted on a self- employed basis.

4 Income from Investments General Endowment Restricted Total Total Fund Fund Fund 2020 2019

UK dividends£ 40,192 £ - £ - £ 40,192 £ 18,692 UK interest 10,723 - - 10,723 8,945 Property income distributions 2,957 - - 2,957 1,565 Overseas dividends 5,016 - - 5,016 6,266 Overseas interest 7,370 - - 7,370 6,385 Bank interest 4,685 - - 4,685 17,989

£ 70,943 £ - £ - £ 70,943 £ 59,842

5 Other Income General Endowment Restricted Total Total Fund Fund Fund 2020 2019

Relative to Heritage Assets £ - £ - £ - £ - £ 1,159

£ - £ - £ - £ - £ 1,159

Page 13 THE NEWBATTLE ABBEY COLLEGE TRUST

Notes to the Accounts

For the year ended 5 April 2020 (Contd)

6 Expenditure on Raising Funds General Endowment Restricted Total Total Fund Fund Fund 2020 2019

Relative to Heritage Assets £ - £ - £ - £ - £ 894 Investment Management Costs: Brewin Dolphin Limited fees (inc VAT) 8,827 - - 8,827 11,235 Legal Entity Identifier fee - - - - 84

£ 8,827 £ - £ - £ 8,827 £ 12,213

7 Charitable Activities General Endowment Restricted Total Total Fund Fund Fund 2020 2019

Charitable Payments: Newbattle Abbey College Trust Limited (SC048902)£ (618,523) £ 826,795 £ 3,469,577 £ 3,677,849 £ - Relative to Newbattle Abbey College: Repairs and Maintenance - - - - 376,000 Fine Art Insurance - - - - 2,273 Donations to Forest College Project - - - - 106

Governance Costs: Shepherd and Wedderburn LLP: Fees to 05/04/2020 (inc VAT) 6,558 - - 6,558 9,570 Wylie & Bisset (Audit) Limited; Auditor's Fee to 05/04/2020 (inc VAT) - - - - 1,176 Trustee Indemnity Insurance - - - - 219 Management Liability Insurance - - - - 219 Companies House dues - - - - 100 Registers of Scotland, recording dues - - - - -

Support Costs: Relative to Newbattle Abbey College 5,928 - - 5,928 74,965 Clerk's Remuneration and Expenses 7,000 - - 7,000 12,000 Shepherd and Wedderburn LLP: Fees to 05/04/2020 (inc VAT) 5,040 - - 5,040 5,970 Other Support Costs - - - - 49

£ (593,997) £ 826,795 £ 3,469,577 £ 3,702,375 £ 482,647

Page 14 THE NEWBATTLE ABBEY COLLEGE TRUST

Notes to the Accounts

For the year ended 5 April 2020 (Contd)

8 Fixed Assets Disposals

General Endowment Restricted Total Fund Fund Fund 2020

Fixed Assets Nil£ - £ - £ - £ -

£ - £ - £ - £ -

Fixed assets disposals 2019 £ - £ - £ 7,135 £ 7,135

These items were recorded in the accounts with a nil book value and as a consequence the full gross proceeds are recognised as realised gains in the Statement of Financial Activities.

9 Investments

All Investments are held in the Restricted Fund 2020 2019

Opening value£ 3,000,159 £ - Additions during the year 37,496 2,987,967 Disposals during the year (62,062) (3,491) Realised gains on investments 741 - Unrealised gains on revaluation of investments 82,613 15,683 Transferred to Newbattle Abbey College Trust Limited (3,058,947) -

Fair value at 5 April 2020 £ - £ 3,000,159

Historic cost of investments £ - £ 2,984,326

UK domiciled securities were held on the trust’s behalf by Brewin Dolphin Limited and registered in their nominee name. Overseas domiciled securities were held on the trust's behalf by a sub-custodian appointed by Brewin Dolphin Limited and registered in the name of the sub-custodian's nominee. As at 5 April 2020 no investments were held in the trust.

Investments were all traded in quoted public markets. 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 transaction value). The main form of financial risk faced by the trust was that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of the investors to investment risk, and changes in sentiment concerning equities and within particular sectors and sub sectors, particularly as the trust was reliant on the dividend yield in part to finance its work. The trust has managed the investment risks by retaining an expert advisors and operating an investment policy that provides a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchange. The trust does not make use of derivatives and other similar complex financial instruments.

Page 15 THE NEWBATTLE ABBEY COLLEGE TRUST

Notes to the Accounts

For the year ended 5 April 2020 (Contd)

10 Debtors General Endowment Restricted Total Total Fund Fund Fund 2020 2019

2018/19 Loan Repayment£ - £ - £ - £ - £ 10,000 Brewin Dolphin remittance - - - - 10,035

£ - £ - £ - £ - £ 20,035

11 Creditors General Endowment Restricted Total Total Fund Fund Fund 2020 2019

Shepherd and Wedderburn LLP: Fees to 05/04/2020 (inc VAT)£ - £ - £ - £ - £ 2,700 Wylie & Bisset (Audit) Limited; Auditor's Fee to 05/04/2020 (inc VAT) - - - - 1,176 Brewin Dolphin Limited, Fees to 05/04/2020 (inc VAT) - - - - 4,287 Bluefin Insurance - - - - 1,516 Relative to Newbattle Abbey College: Repairs and Maintenance - - - - 301,000 Support Costs - - - - 65,365

£ - - £ - £ - £ 376,044

12 Analysis of Funds Transfers Funds at Investment Between Funds at 05/04/2019 Income Expenditure Gains Funds 05/04/2020

Unrestricted Funds: General Fund£ (656,113) £ 70,943 £ 585,170 £ - £ - £ - Endowment Fund 2,736,795 - (826,795) - - 1,910,000

Total Unrestricted Funds 2,080,682 70,943 (241,625) - - 1,910,000

Restricted Fund 3,386,223 - (3,469,577) 83,354 - -

Total Funds £ 5,466,905 £ 70,943 £ (3,711,202) £ 83,354 £ - £ 1,910,000

Page 16 THE NEWBATTLE ABBEY COLLEGE TRUST

Notes to the Accounts

For the year ended 5 April 2020 (Contd)

12 Analysis of Funds (Contd)

Prior year comparison: Transfers Funds at Investment Between Funds at 05/04/2018 Income Expenditure Gains Funds 05/04/2019

Unrestricted Funds: General Fund£ (599,254) £ 59,842 £ (116,701) £ - £ - £ (656,113) Endowment Fund 2,736,795 - - - - 2,736,795

Total Unrestricted Funds 2,137,541 59,842 (116,701) - - 2,080,682

Restricted Fund 3,740,405 1,159 (378,159) 22,818 - 3,386,223

Total Funds £ 5,877,946 £ 61,001 £ (494,860) £ 22,818 £ - £ 5,466,905

13 Analysis of Net Assets by Fund Other Tangible Cash at Bank Net Assets Total Assets Investments & in Hand Debtors (Liabilities) 05/04/2020 Unrestricted Funds: General Fund£ - £ - £ - £ - £ - £ - Endowment Fund 1,910,000 - - - - 1,910,000

Total Unrestricted Funds 1,910,000 - - - - 1,910,000

Restricted Fund ------

Total Funds £ 1,910,000 £ - £ - £ - £ - £ 1,910,000

Page 17 THE NEWBATTLE ABBEY COLLEGE TRUST

Notes to the Accounts

For the year ended 5 April 2020 (Contd)

13 Analysis of Net Assets by Fund (Contd)

Prior year comparison: Other Tangible Cash at Bank Net Assets Total Assets Investments & in Hand Debtors (Liabilities) 05/04/2020 Unrestricted Funds: General Fund£ - £ - £ (633,936) £ 20,035 £ (42,212) £ (656,113) Endowment Fund 1,910,000 - 826,795 - - 2,736,795

Total Unrestricted Funds 1,910,000 - 192,859 20,035 (42,212) 2,080,682

Restricted Fund - 3,000,159 687,064 - (301,000) 3,386,223

Total Funds £ 1,910,000 £ 3,000,159 £ 879,923 £ 20,035 £ (343,212) £ 5,466,905

Page 18 THE NEWBATTLE ABBEY COLLEGE TRUST

Independent Auditor's Report to the Trustees of Newbattle Abbey College Trust for the Year Ended 5 April 2020

Opinion

We have audited the financial statements of Newbattle Abbey College Trust (the ‘charity’) for the year ended 5 April 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charity’s affairs as at 5 April 2020, and of its incoming • resources and application of resources, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting • Practice;

have been prepared in accordance with the requirements of the Charities and Trustee Investment • (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the trustees’ use of the going concern basis of accounting in the preparation of the financial statements • is not appropriate; or

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of • accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Page 19 THE NEWBATTLE ABBEY COLLEGE TRUST

Independent Auditor's Report to the Trustees of Newbattle Abbey College Trust for the Year Ended 5 April 2020 (Contd)

Other information

The other information comprises the information included in the report and financial statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charity Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the • Trustees’ Report; or

• proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 6, the trustees are responsible for the preparation of financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Page 20 THE NEWBATTLE ABBEY COLLEGE TRUST

Independent Auditor's Report to the Trustees of Newbattle Abbey College Trust for the Year Ended 5 April 2020 (Contd)

Auditor’s responsibilities for the audit of the financial statements (Contd)

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Wylie & Bisset (Audit) Limited Statutory Auditor 168 Bath Street Glasgow G2 4TP

Date; ……………………..21/8/20

Wylie & Bisset (Audit) Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 21

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