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2021-08-31-accounts

REGISTERED CHARITY NUMBER: 1000531

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 August 2021

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Contents of the Financial Statements FOR THE YEAR ENDED 31 August 2021

Page
Statutory information 2
Report of the Trustees 3 to 8
Independent Examiners' Report 10
Statement of Financial Activities 11
Balance Sheet 12
Statement of Cash Flows 13
Notes to the Financial Statements 14 to 19

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Statutory Information FOR THE YEAR ENDED 31 AUGUST 2021

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity Number

1000531

Principal Address

Floor 6 9 Appold Street London EC2A 2AP

Trustees

Sir H Kumar (Chair) C Lazarevic (Treasurer and Investment Committee)

M Balinska-Szczerba

C Stuart-Benson (Investment Committee and Gift Acceptance and Grant Making Committee)

S Burn-Murdoch (Deputy Treasurer, Investment Committee and Gift Acceptance and Grant Making Committee) J Gomm (retired 26 January 2022)

A Newcombe-Ellis (retired 28 January 2021)

P Lamb G Batool (Gift Acceptance and Grant Making Committee) M Yaovi Anani-Isaac (joined 23 September 2020)

Administrator

J Laney

Independent Examiners

Moore Kingston Smith LLP Floor 6 9 Appold Street London EC2A 2AP

Bankers

Barclays Bank Plc. Birmingham B1 3PF

Investment Fund Managers

Quilter Cheviot 1 Kingsway London WC2B 6AN

2

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees present their report together with the financial statements of the charity for the financial year ended 31 August 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's constitution, the Charities Act 2011 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).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is governed by its governing document, a deed of trust dated 1 August 1990, amended by a Scheme dated 19 June 2001, a supplemental trust Deed dated 3 July 2012 and Deeds of Amendment dated 23 September 2020 and 25 March 2021 , and constitutes an unincorporated charity registered in England and Wales.

Recruitment and appointment of new trustees

The trustees completed a Deed of Amendment dated 23 September 2020, which established new rules for the recruitment and appointment of trustees. New trustees will be appointed by nominations following circulation of a job description outlining the skills and experience required which will be reviewed by an ad hoc nominations committee for recommendation to the full Board. The Harvard Business School Club of London, the US-UK Fulbright Commission and Harvard Business School shall each have the right to nominate an individual for appointment as a Trustee of the charity. Currently, the Fulbright Commission has nominated a Trustee and HBS has nominated an Observor. Trustees serve for a term of three years, which may be renewed for a maximum of a further six years and exceptionally for longer.

Induction and training of trustees

Induction of new trustees is undertaken by existing trustees, through induction and information meetings with existing trustees and includes being given a copy of the charity's governance documents, the latest annual report and accounts, minutes of the last meeting and 'The Essential Trustee' (CC3 published by the Charity Commission). Existing appointed Trustees receive the latest copy of the CC3 annually which they are asked to review. In addition, at their meetings they discuss any latest compliance measures as well as reviewing the measures undertaken to mitigate risk.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The charity's objectives and purpose, for the public benefit, as set out in the governing document are as follows:

The aim of the charity is to finance tuition scholarships for UK students to attend HBS to study for an MBA, as well as to facilitate donations by UK based HBS alumni to HBS for appropriate educational purposes.

3

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

Both these aims are being achieved through the award of scholarships to those requiring financial assistance, and by facilitating donations to HBS for appropriate educational purposes. Fulbright/British Friends scholars are required, under the terms of their visa, to return to the UK for at least 2 years after graduation so benefitting the UK economy.

The Trustees usually hold an annual fundraising dinner with a distinguished speaker which is its principal fundraising activity. Due to the Covid-19 pandemic the annual dinner was not held in 2021. It is hoped that an annual dinner will be held later in 2022. Details of the annual dinner are circulated through the Harvard Business School Club of London to their UK alumni database. The charity also has a website, through which donors can learn about the charity and how to donate.

Organisational structure

The charity Trustees are responsible for the general control and management of the charity under the guidance of its chair. The Investment Committee is chaired by the treasurer and comprises the treasurer, deputy treasurer and a trustee. It oversees the charity's investment manager's performance according to investment guidelines agreed by all trustees.

Trustees meet several times a year to review policy and financial matters.

Scholarships are administered through the Fulbright Commission in the UK who receive the applications and screen them. The Trustees usually meet in April each year to review the applications and determine who will go forward for interview. One British Friends of Harvard Business School Trustee is then nominated to join the Fulbright interview panel following which the applicants are selected for scholarships.

The charity has no paid employees. Key management personnel consist of the Trustees . Trustees have delegated the day to day running of the charity to a part-time administrator and the oversight of the finances is delegated to the Treasurer who also chairs the investment committee. Trustees are given reports at each meeting on financial and administrative matters as well as how these duties are segregated and the controls in place to prevent fraud.

The charity liaises with the Fulbright Commission in the UK to review scholarship applications and approve scholarships. The charity liaises with the Harvard Business School Club of London to promote the charity and to encourage donations from alumni. Regular reports are sent to the alumni office at HBS to update them on donor status so that donors are given appropriate attribution in annual and reunion giving lists.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

During the year, the Trustees made charitable donations of £382,731 (2020: £179,230) and provided 3 scholarships (2020: 1) to the value of £53,680 (2020: £9,798).

Impact of charitable activities

The charity considers it plays an important role in enabling UK students to study at HBS who might otherwise have been unable to attend due to financial constraints. These students, as a condition of their visa, return to the UK and benefit the UK economy. In addition, it facilitates donations by UK alumni to HBS for appropriate educational purposes and thereby contributing to world class academic research.

4

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

Principal risks and uncertainties

The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Trustees review and discuss risk management at meetings and keep a risk register as a tool to document high, medium and low impact risks identified as well as areas affected by such risks, together with actions taken and persons responsible for them.

They have also identified that the principal risk is that of foreign currency. As the charity's grants are made in US dollars, this risk is mitigated by maintaining the majority of the investment portfolio in US dollar denominated securities.

There is also a risk that the investment portfolio does not perform as expected and that the return and capital growth that forms part of the trustees' strategy to help generate funds to further the charity's objectives is not achieved. The Investment Committee regularly reviews the charity's Investment Policy and risk profile.

Public benefit

The trustees, as required by the Charities (Accounts and Reports) Regulations 2008, have paid due regard to the Charity Commission's guidance on providing public benefit while reviewing the charity's aims and objectives, and while deciding what activities the charity should undertake and how the donations made will help the charity meet its objectives.

FINANCIAL REVIEW

Unrestricted funds

During the year, there was income of £125,565 (2020: £165,679) and expenditure of £101,275 (2020: £54,775) resulting in net income before investment and foreign exchange gains and losses, of £24,290 (2020: £110,904). Together with net investment gains of £453,733 (2020: £61,867) and FX loss of £23,638 (2020: gain of £61,948), there is an overall surplus of £454,425 (2020: £234,719) which has increased unrestricted funds to £3,004,311 (2020: £2,549,886).

Restricted funds

During the year, there was restricted income of £195,173 (2020: £403,742) and restricted expenditure of £382,731 (2020:£179,230) resulting in net restricted funds of £96,339 (2020: £283,897).

During the year there was income relating to donations in both restricted and unrestricted funds of £286,195 (2020: £529,745 ).

Reserves policy

The Trustees, in addition to the annual donations made to support its objects, wish to become established in academic circles as an important funder of scholarships for UK students to attend HBS. The trustees feel it is important to build up a cushion out of current income to ensure that the fund can meet commitments to students in future years if donations fall. As at 31 August 2021, total reserves stood at £3.1m (2020: £2.83m). As it seems likely that interest rates will remain low for the foreseeable future, a larger fund will be required to maintain our scholarships should income from donations decrease. On that basis, the target level of reserves has been increased to $5 million. Currently this converts to £3.77 million. The trustees' vision is that future surpluses will enable the charity to reach the target level of reserves which is reviewed annually.

5

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

Principal funding sources

Funding comes from donations made by HBS alumni.

During 2021, the Trustees established a Gifts Acceptance and Grant-Making Committee, comprising at least three Trustees. This committee ensures that all significant donations (£501 or greater) to the charity meet the Charity Commission’s “Know Your Donor” guidance, regarding source of funds and potential for reputational risk. Any proposed gifts that do not meet these criteria undergo further investigation and ultimately can be refused. Any proposed gift greater than £20,000 or which may have reputational implications must be approved by the whole Board.

Investment policy and objectives

The Trustees' investment policy was revised in October 2019 and set a more ambitious target of US CPI inflation plus 3% p.a. net of fees. The majority of the portfolio is held in US equities and the balance in UK and overseas equities and fixed income or other investments, or cash. This target was met in the current year. The Trustees changed the target because they wanted to reflect the new risk profile and felt that the previous target did not reflect their target risk profile.

Since awards are made in US dollars the trustees wish to hold most of the portfolio in that currency. The Trustees periodically review the Investment Policy and objectives.

During the year, the Investment Committee has been proactively involved in dealing with the fund managers through meetings and discussions.

Grant making

Grants are awarded each year in the form of scholarships to advance the education of British students studying at HBS. The award provides tuition fees to students. Applicants are chosen primarily on financial need and will normally be required to attend an interview as part of the selection process.

In addition, the charity makes grants to HBS in the form of donations from UK alumni wishing to promote the education of persons studying at HBS.

During 2021, the Trustees established a Gifts Acceptance and Grant-Making Committee, comprising at least three Trustees. This Committee ensures that all grants made to HBS are in compliance with the objects of the charity and public benefit guidance.

Plans for future periods

The aim of the trustees is to continue to attract donations from HBS alumni and provide scholarships and funding to support HBS. In the future, trustees would like to encourage able students from financially disadvantaged backgrounds to apply, who would not normally have considered doing this.

Fundraising

Fundraising is done through word of mouth amongst alumni, HBS development officers, and information circulated to UK alumni via the Harvard Business School Club's newsletters. There is also a dedicated website. There is no professional fundraiser. The charity has not subscribed to any fundraising standards/schemes.

6

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

The principal fundraising activity held by the Trustees is an annual fundraising dinner with a distinguished speaker to which the alumni and affiliated members of the HBS are invited to attend. As this is the main fundraising activity of the Charity, and this is not open to the wider public, the Charity does not have a formal complaints procedure regarding the fundraising activities of the Charity. No complaints were received during the year.

Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern, including the potential future impact of Covid-19 and related government restrictions. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charity's forecasts and projections and have taken account of the potential pressures on voluntary income. After making enquiries the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The Trustees are responsible for preparing the Report of the Trustees 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 England and Wales 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 those financial statements, the Trustees are required to:

7

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

22/06/2022

Approved by the order of the board of trustees on …………….

And signed on its behalf by:

Charles Lazarevic

Charles Lazarevic (Jun 22, 2022 12:19 GMT+1)

C Lazarevic B.Sc., M.B.A., F.C.A., M.A.E., B.F.P. Treasurer - Trustee

8

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Independent Examiner’s Report to the Trustees of The British Friends of Harvard Business School

I report to the charity trustees on my examination of the financial statements of British Friends of Harvard Business School for the year ended 31 August 2021

Responsibilities and basis of report:

Independent examiner’s statement

Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Floor 6 9 Appold Street London EC2A 2AP Date:

Andrew Stickland, FCA, ICAEW Independent Examiner For and on behalf of Moore Kingston Smith LLP

23/06/22 Andrew Stickland

Andrew Stickland (Jun 23, 2022 11:24 GMT+1)

9

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Statement of Financial Activities FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Unrestricted
Funds
£
Income from:
Donations and Legacies
3
91,022
Investments
4
34,543
Total income
125,565
Expenditure on:
Raising funds
5
17,518
Charitable activities
6
83,757
Total expenditure
101,275
24,290
Net gains/(losses) on investments
453,773
(Losses)/gains on foreign exchange movements
(23,638)
Net movement in funds
454,425
Funds as at 1 September 2020
2,549,886
13
3,004,311
Fund balances carried forward as at
31 August 2021		 Unrestricted
Funds
£
91,022
34,543		 Restricted
Funds
£
195,173
-
195,173
-
382,731
382,731
(187,558)
-
-
(187,558)
283,897
96,339		 2021
Total
Funds
£
286,195
34,543
320,738
17,518
466,488
484,006
(163,268)
453,773
(23,638)
266,867
2,833,783
3,100,650		 2020
Total
Funds
£
529,745
39,676
125,565 569,421
17,518
83,757		 15,084
218,921
101,275 234,005
335,416
61,867
61,948
454,425
2,549,886		 459,231
2,374,552
3,004,311 2,833,783

All activities in the year were attributable to continuing operations.

10

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Statement of Cash Flows FOR THE YEAR ENDED 31 AUGUST 2021

Note
Fixed assets
Investments
9
Current Assets
Debtors
10
Cash at bank and in hand
Creditors: Amounts falling due
within one year
11
Net Current Assets
Total assets less current liabilities
Net assets
Funds
13
Unrestricted funds
General Funds
Restricted funds
Total		 2021
£
7,975
156,781
164,756
(22,827)		 2021
£
2,958,721
141,929
3,100,650
3,100,650
3,004,311
96,339
3,100,650		 2020
£
60,013
422,681
482,694
(5,681)		 2020
£
2,356,770
477,013
2,833,783
2,833,783
2,549,886
283,897
2,833,783

22/06/2022

Approved and authorised for issue by the Board on ……………….

Signed on their behalf by:

Charles Lazarevic

Charles Lazarevic (Jun 22, 2022 12:19 GMT+1)

……………………………………………..

Trustee Charity Number: 1000531

11

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Statement of Cash Flows FOR THE YEAR ENDED 31 AUGUST 2021

Note
CASH USED IN OPERATIONS
12
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income
Investment additions
Sales proceeds
Change in investment cash
NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR		 2021
£
(133,526)
34,543
(543,371)
397,033
(20,579)
(132,374)
(265,900)
422,681
156,781		 2020
£
305,345
39,676
(2,186,311)
2,086,733
(5,378)
(65,280)
240,065
183,524
422,681

12

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting Policies

Charity information

The British Friends of Harvard Business School is an unincorporated charity registered in England and Wales (no. 1000531). Details of the principal office are given on page 2 of the financial statements.

Accounting convention

The financial statements have been prepared under the historical cost convention modified by the revaluation of investments. They are drawn up in accordance with the Charities Act 2011 and the 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) .

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following Accounting and Reporting by Charities preparing these accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The charity constitutes a public benefit entity as defined by FRS102.

The financial statements are presented in sterling which is also the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest whole £1.

Going concern

These financial statements have been prepared on the basis of accounting principals applicable to a "going concern", which assume that the charity will continue in operation for the foreseeable future and will be able to realise its assets and discharge its liabilities in the normal course of operations. The Trustees consider there are no material uncertainties about the Charity's ability to continue as a going concern.

Income

Income, including donations, is included on the Statement of Financial Activities when the charity is legally entitled to the income, there is sufficient probability of receipt and the amount can be quantified with reasonable accuracy.

Investment income

The charity recognises all investment income on the accruals basis.

Expenditure

Expenditure is accounted for on an accruals basis inclusive of irrecoverable VAT and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Expenditure on raising funds includes costs incurred to increase the funds raised by the charity for distribution to its beneficiaries.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity. Governance costs are apportioned to charitable activities.

13

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2021

Expenditure (cont.).

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grants and scholarships

Grants and scholarships are recognised at the point they are paid or committed to be paid resulting in a legal or constructive obligation.

Taxation

The charity is exempt from tax on income and gains falling within section 466 to 493 of the Corporation Tax Act 2010 to the extent that these are applied to charitable objects.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds comprise monies where a restriction has been placed on their use by a donor (for a purpose which falls within, but is narrower than the general charitable objectives). Restricted funds are distributed in accordance with the terms of the applicable restriction.

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken onto account in arriving at the operating result.

Fixed asset investments

Investments are a basic financial instrument and are included in the balance sheet initially at transaction value and subsequently recognised at their fair value at the end of the financial period which is the bid price quoted on a recognised stock exchange . Realised and unrealised gains and losses are credited or debited to the Statement of Financial Activities in the year in which they arise.

2 JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The Trustees do not consider there to be any key area of judgement or critical estimates that require further disclosure.

14

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2021
INCOME FROM DONATIONS AND LEGACIES
Unrestricted Restricted
2021
2021
£
£
Donations
78,190
158,555
Gift Aid
12,832
36,618
91,022
195,173		 Total
2021
£
236,745
49,450
286,195		 Total
2020
£
454,318
75,427
529,745

The income from donations and legacies was £286,195 (2020: £529,745) of which £91,022 was unrestricted (2020: £126,003) and £195,173 was restricted (2020: £403,742).

4
INCOME FROM INVESTMENTS
Unrestricted Restricted
2021
2021
£
£
Dividends and interest received
34,543
-
34,543
-		 Total
2021
£
34,543
34,543		 Total
2020
£
39,676
39,676

The income from investments was all unrestricted in the current and prior year.

5
EXPENDITURE ON RAISING FUNDS
Unrestricted Restricted
2021
2021
£
£
Investment manager fees
17,518
-
17,518
-		 Total
2021
£
17,518
17,518		 Total
2020
£
15,084
15,084

The expenditure on raising funds was all unrestricted in the current and prior year.

6
EXPENDITURE ON CHARITABLE ACTIVITIES
Unrestricted Restricted
2021
2021
£
£
Scholarships awarded
53,680
-
Donations to Harvard Business School
-
382,731
Support costs
7,328
-
Governance costs
22,749
-
83,757
382,731		 Total
2021
£
53,680
382,731
7,328
22,749
466,488		 Total
2020
£
9,798
179,230
16,162
13,731
218,921

The expenditure on charitable activities was £466,488 (2020: £218,921), of which £83,757 was unrestricted (2020: £39,691) and £382,731 was restricted (2020: £179,230).

Scholarships were paid to 3 individual (2020: 1). No grants were made to institutions other than the donation to Harvard Business School, as in the prior year.

15

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2021

6 EXPENDITURE ON CHARITABLE ACTIVITIES (cont.).

Unrestricted
Support Costs
2021
£
Bank charges
614
Insurance
876
Honorarium
-
Web Security
198
Legal and Professional
5,640
Catering
-
Trustee Expenses
-
7,328
Unrestricted
Governance costs
2021
£
Accountancy costs
17,499
Independent Examiner's Remuneration
5,250
22,749		 Unrestricted
Support Costs
2021
£
Bank charges
614
Insurance
876
Honorarium
-
Web Security
198
Legal and Professional
5,640
Catering
-
Trustee Expenses
-
7,328
Unrestricted
Governance costs
2021
£
Accountancy costs
17,499
Independent Examiner's Remuneration
5,250
22,749		 Restricted
2021
£
-
-
-
-
-
-
-		 Total
2021
£
614
876
-
198
5,640
-
-		 Total
2020
£
391
1,236
5,667
378
8,220
-
270
7,328 - 7,328 16,162
Restricted
2021
£
-
-		 Total
2021
£
17,499
5,250		 Total
2020
£
8,631
5,100
22,749 - 22,749 13,731

7 EMPLOYEES

The charity did not employ any staff in the year (2020: nil).

The Trustees did not receive any remuneration nor other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

There were no Trustee expenses incurred during the year (2020: £270).

8 KEY MANAGEMENT PERSONNEL

The key management personnel of the charity comprises the Trustees. The total employee benefits of the key management personnel of the charity were £nil (2020: £nil).

16

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2021

9
FIXED ASSET INVESTMENTS
2021
2020
£
£
FAIR VALUE
At 1st September 2020
2,335,501
2,182,567
Additions at cost
543,371
2,186,311
Disposals proceeds
(397,033)
(2,086,733)
Revaluations
453,773
61,867
Exchange difference
(18,739)
(8,511)
2,916,873
2,335,501
Cash held for investment
41,848
21,269
2,958,721
2,356,770
Analysis of investments between classes:
2021
2020
£
£
Fixed Interest Securities - Non-UK
436,592
379,127
Equity Investment UK
90,371
70,802
Equity Investment Non-UK
2,389,910
1,885,571
Cash held within the investment portfolio
41,848
21,269
2,958,720
2,356,770
Investments representing 5% or more of the portfolio are disclosed below:
Portfolio % Market Value
(£)
Ishares II Plc. TSY Bond 7-10Yr UCITS ETF USD
6%
186,309
10 DEBTORS
2021
2020
£
£
Gift aid recoverable
7,975
60,013
7,975
60,013
11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
2020
£
£
Accruals
6,360
5,100
Trade creditors
-
581
Scholarship Commitments
16,467
-
22,827
5,681
With respect to the next reporting period, the most significant area of uncertainty that affects the
carrying value of the assets held by the Charity is the level of investment return and the performance of
the investment markets. This has been detailed in the investment policy and objectives within the
Trustees' Report.		 2021
£
2,335,501
543,371
(397,033)
453,773
(18,739)		 2020
£
2,182,567
2,186,311
(2,086,733)
61,867
(8,511)
2,916,873
41,848		 2,335,501
21,269
2,958,721 2,356,770
2021
£
436,592
90,371
2,389,910
41,848		 2020
£
379,127
70,802
1,885,571
21,269
2,958,720 2,356,770
7,975
2021
£
6,360
-
16,467		 60,013
2020
£
5,100
581
-
22,827 5,681

17

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2021

12 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH USED IN OPERATIONS

Net movement in funds
Adjustments for:
Unrealised (gain)/ losses on investments
(Gains)/losses on foreign exchange on investments
Interest and dividends receivable (less not received by year end)
Operating cash flow before movement in working capital
(Increase) / Decrease in debtors
Increase / (Decrease) in creditors
Cash used in operations
13
MOVEMENT IN FUNDS
Brought
forward
01-Sep-20
£
Unrestricted funds
General fund
2,549,886
Restricted funds
283,897
2,833,783
Total
Total
Income
Expenditure
£
£
Unrestricted funds
General Fund
125,565
(101,275)
Restricted funds
195,173
(382,731)
320,738
(484,006)
Net movement in funds included in the above are as follows:		 Net movement in funds
Adjustments for:
Unrealised (gain)/ losses on investments
(Gains)/losses on foreign exchange on investments
Interest and dividends receivable (less not received by year end)
Operating cash flow before movement in working capital
(Increase) / Decrease in debtors
Increase / (Decrease) in creditors
Cash used in operations
13
MOVEMENT IN FUNDS
Brought
forward
01-Sep-20
£
Unrestricted funds
General fund
2,549,886
Restricted funds
283,897
2,833,783
Total
Total
Income
Expenditure
£
£
Unrestricted funds
General Fund
125,565
(101,275)
Restricted funds
195,173
(382,731)
320,738
(484,006)
Net movement in funds included in the above are as follows:		 Net movement in funds
Adjustments for:
Unrealised (gain)/ losses on investments
(Gains)/losses on foreign exchange on investments
Interest and dividends receivable (less not received by year end)
Operating cash flow before movement in working capital
(Increase) / Decrease in debtors
Increase / (Decrease) in creditors
Cash used in operations
13
MOVEMENT IN FUNDS
Brought
forward
01-Sep-20
£
Unrestricted funds
General fund
2,549,886
Restricted funds
283,897
2,833,783
Total
Total
Income
Expenditure
£
£
Unrestricted funds
General Fund
125,565
(101,275)
Restricted funds
195,173
(382,731)
320,738
(484,006)
Net movement in funds included in the above are as follows:		 2021
£
266,867
(453,773)
18,739
(34,543)		 2020
£
459,231
(61,867)
8,511
(39,676)
(202,710)
52,038
17,146		 366,199
(58,613)
(2,241)
(133,526) 305,345
Net
movement
in funds
£
454,425
(187,558)		 Carried
forward
31-Aug-21
£
3,004,311
96,339
2,833,783 266,867 3,100,650
Gains and
Losses
£
430,135
-		 Movement
in Funds
£
454,425
(187,558)
320,738 (484,006) 430,135 266,867

18

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2021

13 MOVEMENT IN FUNDS (cont.).

Net movement in funds during the prior year are as follows:

Brought
forward
01-Sep-19
£
Unrestricted funds
General fund
2,315,167
Restricted funds
59,385
2,374,552
Net movement in funds included in the above are as follows:
Total
Total
Income Expenditure
£
£
Unrestricted funds
General Fund
165,679
(54,775)
Restricted funds
403,742
(179,230)
569,421
(234,005)		 Brought
forward
01-Sep-19
£
Unrestricted funds
General fund
2,315,167
Restricted funds
59,385
2,374,552
Net movement in funds included in the above are as follows:
Total
Total
Income Expenditure
£
£
Unrestricted funds
General Fund
165,679
(54,775)
Restricted funds
403,742
(179,230)
569,421
(234,005)		 Brought
forward
01-Sep-19
£
2,315,167
59,385		 Net
movement
in funds
£
234,719
224,512
459,231
Gains and
Losses
£
123,815
-
123,815		 Carried
forward
31-Aug-20
£
2,549,886
283,897
2,374,552 2,833,783
Movement
in Funds
£
234,719
224,512
569,421 (234,005) 459,231

Restricted funds comprise monies where a restriction has been place on their use by a donor to ensure the donation is transferred to a specific or named fund. Restricted funds are distributed in accordance with the terms of the applicable restriction.

14 NET ASSETS

Unrestricted funds
Investments
Current assets
Current liabilities
Net assets
Restricted funds
Current assets
Net assets		 2021
£
2,958,721
68,417
(22,827)
3,004,311
96,339
96,339		 2020
£
2,356,770
198,797
(5,681)
2,549,886
59,385
59,385

15 RELATED PARTY TRANSACTIONS

There were no amounts due to or from the Trustees at the balance sheet date (2020: nil).

19

Y/E 2021 accounts BFHBS for signing

Final Audit Report

2022-06-23

Created: 2022-06-22 By: Jacky Laney (JLaney@mks.co.uk) Status: Signed Transaction ID: CBJCHBCAABAAsoktBsHYxtSbpEJ3mchOtH87YhqzNppv

"Y/E 2021 accounts BFHBS for signing" History

Document created by Jacky Laney (JLaney@mks.co.uk)

2022-06-22 - 10:42:51 GMT- IP address: 62.216.233.254

Document emailed to cl@charleslazarevic.com for signature

2022-06-22 - 10:48:16 GMT

Email viewed by cl@charleslazarevic.com

2022-06-22 - 11:16:43 GMT- IP address: 193.39.240.56

Document e-signed by Charles Lazarevic (cl@charleslazarevic.com)

Signature Date: 2022-06-22 - 11:19:41 GMT - Time Source: server- IP address: 193.39.240.56

Document emailed to Andrew Stickland (AStickland@mks.co.uk) for signature 2022-06-22 - 11:19:43 GMT

Email viewed by Andrew Stickland (AStickland@mks.co.uk)

2022-06-23 - 10:21:11 GMT- IP address: 104.47.21.254

Document e-signed by Andrew Stickland (AStickland@mks.co.uk)

Signature Date: 2022-06-23 - 10:24:49 GMT - Time Source: server- IP address: 81.107.156.12

Agreement completed.

2022-06-23 - 10:24:49 GMT