Governance TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2018 The Trustees present their annual report together with the audited financial statements for the year 1 April 2017 to 31 March 2018. The Trustees confirm that the annual report and financial statements of the charity comply with current statutory requirements, the requirements of the charity’s governing document and the provisions of the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for Smaller Entities published on 16 July 2014. Objectives and Activities a. Policies and Objectives The objectives of the charity are very broad and in consequence the Trustees have over the years adopted policies in order to indicate the nature of applications which will be considered for support and thus enable the Trust funds to be available to achieve the objectives. The Constitution provides that the purpose of the Trust is to provide opportunities for young people of Scottish birth or parentage to extend the boundaries of their knowledge of human life and to employ their leisure in such pursuits as will foster their love of nature and improve their physical health and well being and whereby the British and especially the Scottish public may participate in the enjoyment of drama and opera from which Sir Alexander Cross himself derived lasting pleasure. In terms of the Constitution the Trustees have an absolute discretion as to whether or not to make an award to any applicant. There have been no changes in the objectives since the last annual report. b. Grant Making Policies Awards may be made to individuals and to organisations. The Trustees have the benefit of the knowledge of Sir Alexander’s known wishes and therefore award applications that best reflect the raison d’etre of the Trust. Individuals Most awards are provided for short term educational studies or projects. Applicants require to have a record of distinction and ability and to put forward proposals for study or projects which are of demonstrable merit. Such proposals may be in any recognised discipline including the visual and performing arts plus music. Awards are made having regard to the extent of financial hardship which might otherwise be expected to occur if no award should be made. In particular, awards are made to enable participation in a project or course of study which otherwise would not be practical because of insufficient financial resources. Organisations With regard to organisations, the Trustees support certain aspects of drama, opera, music plus the visual and performing arts. Occasionally awards are also made to charities which seek to provide support to disadvantaged young people who are involved with environmental and recreational projects. All of these awards are on a very restricted basis and only a small number of awards are made in any year. Achievements and Performance a. Review of activities As in previous years, the Trustees have responded to a wide range of applications in terms of courses and projects proposed by individuals and organisations. In total 118 applications were received from individuals (130 in 2017) and 37 from organisations (31 in 2017). The Trustees continue to support students undertaking Medical Elective studies abroad and also the promotion of Vacation Studies in the Arts. Medical Elective studies were awarded in 5 cases. There were 10 awards for Arts Vacation studies. The range of awards made in relation to individual applications varied from £250 to £6,000. Awards were made to individuals across a wide variety of disciplines including music, dance, medicine, geography, design and law. Awards to Organisations of £2,000 or more were made as follows: Edinburgh International Science Festival £5,000 National Youth Orchestra for Scotland £5,000 Paws for Progress £4,000 Perth Festival of the Arts £12,000 Royal Scottish National Orchestra £3,600 Scottish Seabird Centre £2,500 Toonspeak Young People's Theatre £4,312 Traverse Theatre £3,124 Trees for Life £5,000 Venture Trust £4,427 Horsecross Arts £15,000 National Theatre of Scotland £2,500 Ocean Youth Trust Scotland £5,000 Reforesting Scotland £3,000 Scottish Opera £3,000 A special additional award of £13,000 was made to Perth Festival of the Arts as the principal sponsor of the production of The Marriage of Figaro Opera held at Perth Concert Hall on 17 May 2018. This production was sponsored to mark the 75th Anniversary of the Cross Trust and was a great success. b. Factors relevant to achieve objectives The Trust is administered on a day to day basis by the firm of McCash & Hunter LLP, solicitors, in accordance with directions given by the Trustees at their meetings, now normally held three times per year. The firm acts as the Trust’s Secretaries and Treasurers. Arrangements are made in certain circumstances for applications to be considered out with these formal meetings. Within the firm of McCash & Hunter LLP, Paul R McGregor, a partner of the firm, has the responsibility of the administration of the Trust. The Cross Trust was established by Sir Alexander Cross, Baronet, LLD of Battleby, Redgorton, Perthshire in terms of the Constitution completed in 1943 and is a Scottish Charity, number SCO08620. Trustees' responsibilities statement The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in Scotland requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and accounting estimates that are reasonable and prudent; Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.