2022-08-31-accounts - The British Friends Of Harvard Business School

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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 2022

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Contents of the Financial Statements FOR THE YEAR ENDED 31 August 2022

	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 2022

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity Number

1000531

Principal Address

St James House

Vicar Lane Sheffield S1 2EX

Trustees

C Benson (Chair, Investment Committee and Gift Acceptance and Grant Making Committee) Sir H Kumar (Resigned 31 December 2022)

C Lazarevic (Deputy Chair, Treasurer and Investment Committee)

M Balinska-Szczerba

S Burn-Murdoch (Deputy Treasurer, Investment Committee and Gift Acceptance and Grant Making Committeeresigned 31 December 2022)

J Gomm (retired 26 January 2022)

P Lamb

G Batool (Gift Acceptance and Grant Making Committee)

M Yaovi Anani-Isaac

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

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees present their report together with the financial statements of the charity for the financial year ended 31 August 2022. 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

New trustees are appointed by nominations following circulation of a job description outlining the skills and experience required which are 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 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 Observer. The trustees recently decided to process scholarship applications independently of the US-UK Fulbright Commission, with the result that the deed will be amended to remove the Commission's right to nominate a Trustee. 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:

To advance the education of British students studying at HBS by award of scholarships, loans or other assistance.
To promote the education of persons studying at HBS by the provision of facilities and equipment, faculty and academic programmes, scholarships, special educational programmes and to advance research at the School.

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.

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2022

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. In future scholars will not require a visa that requires them to return to the UK for at least 2 years after graduation, scholars are encouraged to return to the UK and 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 2022. It is hoped that an annual dinner will be held later in 2023. 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. Trustees meet several times a year to review policy and financial matters.

The Investment Committee 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.

Applications for scholarships are now made directly to the charity. The Trustees usually meet in April each year to review the applications and determine who will go forward for interview. Two trustees form an 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. 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 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 £57,467 (2021: £382,731) and provided one new scholarship (2021: 3) to the value of £35,715 (2021: £53,680).

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.

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2022

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 £100,653 (2021: £125,565) and expenditure of £75,688 (2021: £101,275) resulting in net income before investment and foreign exchange gains and losses, of £24,966 (2021: £24,290). Together with net investment losses of £483,541 (2021 gain of £453,733) and FX gain of £378,226 (2021:loss of £23,638), there is an overall deficit of £80,349 (2021: surplus of £454,425) which has reduced unrestricted funds to £2,923,962 (2021: £3,004,311).

Restricted funds

During the year, there was restricted income of £19,108 (2021: £195,173) and restricted expenditure of £57,467 (2021: £382,731) resulting in net restricted funds of £57,980 (2021: £96,339).

During the year there was income relating to donations in both restricted and unrestricted funds of £75,410 (2021: £286,195 ).

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 2022, total reserves stood at £2.98m (2021: £3.1m). In view of the volatility in equity markets, 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 £3.64 million. The trustees' vision is that future surpluses will enable the charity to reach the target level of reserves which is reviewed annually.

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2022

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 not met in the current year.

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.

The Trustees have 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. The 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.

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2022

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 current economic challenges. 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:

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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Report of the Trustees FOR THE YEAR ENDED 31 AUGUST 2022

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.

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

And signed on its behalf by:

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

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 2022

Responsibilities and basis of report:

As Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5) (b) of the Act.

Independent examiner’s statement

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:

1 accounting records were not kept in respect of the Charity as required by section 130 of the 2006 Act; or
2 the financial statements do not accord with those records; or
3 the financial statements do not comply with the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a ‘true and fair view' which is not a matter considered as part of an independent examination.

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

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Statement of Financial Activities FOR THE YEAR ENDED 31 AUGUST 2022

Notes Unrestricted Funds £ Income from: Donations and Legacies 3 56,303 Investments 4 44,350 Total income 100,653 Expenditure on: Raising funds 5 20,154 Charitable activities 6 55,534 Total expenditure 75,688 24,965 Net gains/(losses) on investments (483,541) (Losses)/gains on foreign exchange movements 378,226 Net movement in funds (80,350) Funds as at 1 September 2021 3,004,311 13 2,923,961 Fund balances carried forward as at 31 August 2022	Unrestricted Funds £ 56,303 44,350	Restricted Funds £ 19,108 - 19,108 - 57,467 57,467 (38,359) - - (38,359) 96,339 57,980	2022 Total Funds £ 75,411 44,350 119,761 20,154 113,001 133,155 (13,394) (483,541) 378,226 (118,709) 3,100,650 2,981,941	2021 Total Funds £ 286,195 34,543
	100,653			320,738
	20,154 55,534			17,518 466,488
	75,688			484,006
				(163,268) 453,773 (23,638)
	(80,350) 3,004,311			266,867 2,833,783
	2,923,961			3,100,650

All activities in the year were attributable to continuing operations.

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Statement of Cash Flows FOR THE YEAR ENDED 31 AUGUST 2022

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	2022 £ - 112,599 112,599 (8,520)	2022 £ 2,877,862 104,079 2,981,941 2,981,941 2,923,961 57,980 2,981,941	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

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

Signed on their behalf by:

……………………………………………..

Trustee Charity Number: 1000531

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Statement of Cash Flows FOR THE YEAR ENDED 31 AUGUST 2022

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	2022 £ (59,557) 44,350 (223,278) 220,203 (25,940) 15,335 (44,222) 156,781 112,559	2021 £ (133,526) 34,543 (543,371) 397,033 (20,579)
		(132,374)
		(265,900) 422,681
		156,781

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2022

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.

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2022

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.

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2022

3 INCOME FROM DONATIONS AND LEGACIES Unrestricted Restricted 2022 2022 £ £ Donations 45,557 15,670 Gift Aid 10,746 3,438 56,303 19,108	Total 2022 £ 61,227 14,184 75,411	Total 2021 £ 236,745 49,450
		286,195

The income from donations and legacies was £75,410 (2021: £286,195) of which £56,302 was unrestricted (2021: £91,022) and £15,670 was restricted (2021: £195,173).

4 INCOME FROM INVESTMENTS Unrestricted Restricted 2022 2022 £ £ Dividends and interest received 44,350 - 44,350 -	Total 2,022 £ 44,350 44,350	Total 2021 £ 34,543
		34,543

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

5 EXPENDITURE ON RAISING FUNDS Unrestricted Restricted 2022 2022 £ £ Investment manager fees 20,154 - 20,154 - 6 EXPENDITURE ON CHARITABLE ACTIVITIES Unrestricted Restricted 2022 2022 £ £ Scholarships awarded 35,715 - Donations to Harvard Business School - 57,467 Support costs 1,744 - Governance costs 18,075 - 55,534 57,467 The expenditure on raising funds was all unrestricted in the current and prior year.	Total 2022 £ 20,154 20,154 Total 2022 £ 35,715 57,467 1,744 18,075 113,001	Total 2021 £ 17,518
		17,518
		Total 2021 £ 53,680 382,731 7,328 22,749
		466,488

The expenditure on charitable activities was £113,001 (2021: £466,488), of which £55,534 was unrestricted (2021: £83,757) and £57,467 was restricted (2021: £382,731 ).

Scholarships were paid to 2 individual (2021: 3). No grants were made to institutions other than the donation to Harvard Business School, as in the prior year.

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 2022 £ Bank charges 582 Insurance 965 Web Security 198 Legal and Professional - 1,744 Unrestricted Governance costs 2022 £ Accountancy costs 13,155 Independent Examiner's Remuneration 4,920 18,075	Restricted 2022 £ - - - -	Total 2021 £ 614 876 198 5,640
1,744	-	7,328
	Restricted 2022 £ - -	Total 2021 £ 17,499 5,250
18,075	-	22,749

7 EMPLOYEES

The charity did not employ any staff in the year (2021: nil).

The Trustees did not receive any remuneration nor other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.

Total Trustee expenses incurred during the year £307 in relation to trustee travel (2021: £nil).

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 (2021: £nil).

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2022

9	FIXED ASSET INVESTMENTS
		2022	2021
		£	£
	FAIR VALUE
	At 1st September 2021	2,916,873	2,335,501
	Additions at cost	223,278	543,371
	Disposals proceeds	(220,203)	(397,033)
	Revaluations	(483,541)	453,773
	Exchange difference	373,667	(18,739)
		2,810,074	2,916,873
	Cash held for investment	67,788	41,848
		2,877,862	2,958,721
	Analysis of investments between classes:
		2022	2021
		£	£
	Fixed Interest Securities - Non-UK	497,551	436,592
	Equity Investment UK	93,105	90,371
	Equity Investment Non-UK	2,219,418	2,389,910
	Cash held within the investment portfolio	67,788	41,848
		2,877,862	2,958,720
	Investments representing 5% or more of the portfolio are disclosed below:
		Portfolio % Market Value
			(£)
	Ishares II Plc. TSY Bond 7-10Yr UCITS ETF USD	9%	237,931
	Ishares VII Plc Ishares USD Treasury Bd 3-7	5%	138,231
	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.
10	DEBTORS
		2022	2021
		£	£
	Gift aid recoverable	-	7,975
		-	7,975
11	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2022	2021
		£	£
	Accruals	7,020	6,360
	Trade creditors	1,500	-
	Scholarship Commitments	-	16,467
		8,520	22,827

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2022

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 MOVEMENT IN FUNDS Brought forward 01-Sep-21 £ Unrestricted funds General fund 3,004,311 Restricted funds 96,339 3,100,650	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 MOVEMENT IN FUNDS Brought forward 01-Sep-21 £ Unrestricted funds General fund 3,004,311 Restricted funds 96,339 3,100,650	2022 £ (118,709) 483,541 (373,707) (44,350) (53,225) 7,975 (14,307) (59,557) Net movement in funds £ (80,349) (38,359) (118,709)	2021 £ 266,867 (453,773) 18,739 (34,543)
			(202,710) 52,038 17,146
			(133,526)
			Carried forward 31-Aug-22 £ 2,923,962 57,980
	3,100,650		2,981,941

13 MOVEMENT IN FUNDS

Net movement in funds included in the above are as follows:

Unrestricted funds General Fund Restricted funds	Total Income £ 100,653 19,108	Total Expenditure £ (75,688) (57,467)	Gains and Losses £ (105,315) - (105,315)	Movement in Funds £ (80,349) (38,359)
	119,761	(133,155)		(118,709)

THE BRITISH FRIENDS OF HARVARD BUSINESS SCHOOL

Notes to the Financial Statements FOR THE YEAR ENDED 31 AUGUST 2022

13 MOVEMENT IN FUNDS (cont.).

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

Brought forward 01-Sep-20 £ Unrestricted funds General fund 2,549,886 Restricted funds 283,897 2,833,783 Net movement in funds included in the above are as follows: Total Total Income Expenditure £ £ Unrestricted funds General Fund 125,565 (101,275) Restricted funds 195,173 (382,731) 569,421 (234,005)	Brought forward 01-Sep-20 £ 2,549,886 283,897	Carried forward 31-Aug-21 £ 3,004,311 96,339
	2,833,783	2,833,783
		Movement in Funds £ 454,425 (187,558)
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	2022 £ 2,877,862 54,619 (8,520) 2,923,961 57,980 57,980	2021 £ 2,958,721 68,417 (22,827)
		3,004,311
		96,339
		96,339

15 RELATED PARTY TRANSACTIONS

There were no amounts due to or from the Trustees at the balance sheet date (2021: nil).