Charity Registration No. 1003316
THE FRESHFIELD FOUNDATION
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 5 APRIL 2021
THE FRESHFIELD FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees P A Moores E J Potter P C Kurthausen N Carter Charity number 1003316 Principal address BWM Suite 5.1 12 Tithebarn Street Liverpool L2 2DT Auditor BWM Suite 5.1 12 Tithebarn Street Liverpool L2 2DT Bankers Barclays Bank plc Leicester Service Centre Leicester LE87 2BB Solicitors Brabners LLP Horton House Exchange Flags Liverpool L2 3YL Investment advisors Rathbones 8 Finsbury Circus London EC2M 7AZ CCLA Senator House 85 Queen Victoria Street London EC4V 4ET
(Appointed 26 August 2020)
THE FRESHFIELD FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Statement of trustees' responsibilities | 3 |
| Independent auditor's report | 4 - 7 |
| Statement of financial activities | 8 - 9 |
| Balance sheet | 10 |
| Statement of cash flows | 11 |
| Notes to the accounts | 12 - 21 |
THE FRESHFIELD FOUNDATION
TRUSTEES' REPORT
FOR THE YEAR ENDED 5 APRIL 2021
The trustees present their report and accounts for the year ended 5 April 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 Foundation's Trust Deed , 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)” (as amended for accounting periods commencing from 1 January 2016) .
The accounts 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
Objectives and activities
The Foundation's objects, as set out in the Trust Deed, are to apply the income, and if the trustees see fit, the capital of the expendable endowment fund, towards general charitable purposes. The Foundation’s chosen primary aim is to support sustainable development charities and projects by way of well targeted grants.
Public benefit
The trustees have complied with the requirements of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission in deciding what activities the Foundation should undertake for the purposes of public benefit.
Grant making policy
The trustees proactively research and identify those organisations and projects that will best achieve the Foundation’s aims and objectives and make grants accordingly.
Achievements and performance
With partners we have continued to develop our plans in the fields of climate change mitigation and sustainable development (in particular cycling, walking and placemaking) and have made grants of £691,785 in this field during the year to April 2021. In this field at 5 April 2021 we also have outstanding commitments of £2,617,215 which are due to be settled over the coming three years.
In the fields of health and education, the charity made a grants of £319,731 to organisations involved in these areas in the year to April 2021. In this field at 5 April 2021 we have outstanding commitments of £219,731 which are due to be settled over the next year. The scope of this activity includes citizen’s advice, support for the homeless and research into Motor Neurone Disease.
Financial review
The Statement of Financial Activities on page 8 to the accounts shows the charity's income of £1,553,888 of which £1,250,000 comprised donations from the trustee Mr P A Moores inclusive of recoverable taxation. These donations have been added to the Expendable Endowment Fund. Income from the charity's investments contributed to most of the investment income of £303,888, the balance being interest on the deposits held with Barclays Bank.
Income was applied towards the funding of the grants payable of £2,355,174 and a small amount of governance costs of £19,128. These grants have been analysed according to each of the Foundation's activities and reflect the additional grant funding commitments undertaken by the charity.
The unrealised gain on investments amounted to £2,975,112, this along with a realised gain of £1,068,746 on the disposal of shares has been added to the Expendable Endowment Fund, which was £26,870,930 at the year end. This fund has arisen from accumulated donations and of this fund £26,437,193 was in the form of long-term investments, the income therefrom being used in full to fund the charitable activities of the charity, as has been explained above .
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THE FRESHFIELD FOUNDATION
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
Each year, the trustees intend to make a full distribution of the income from the long-term investments held within the Expendable Endowment Fund, but any amounts not distributed should be accumulated within a n income fund.
Investment policy
The balance held in each type of investment at any one time depends on the Foundation's cashflow forecasts. The Trustees refrain from making investments in any companies that were directly involved in tobacco production, arms manufacturing or gambling.
Risk assessment
The trustees have assessed the major risks to which the Foundation is exposed, and are satisfied that systems are in place to manage exposure to the major risks.
Ethical Policy
The Trustees have no specific investment restrictions other than the companies invested in are expected to act in an ethical, socially responsible and environmentally sound manner.
Plans for the future
The Foundation’s primary objective continues to be to promote sustainable development. It plans to focus in particular on promoting sustainable development in cities by supporting cycling, walking and placemaking and long-term holistic planning.
Structure, governance and management
The Foundation was established by a charitable Trust Deed dated 2 April 1991 and was registered as a charity on 2 8 Ju ne 1991.
The trustees who served during the year and up to the date of signature of the financial statements were:
P A Moores E J Potter P C Kurthausen N Carter (Appointed 26 August 2020)
The trustee P A Moores has the power to appoint new or additional trustees during his lifetime.
The organisational structure of the Foundation comprises a board of trustees. Day-to-day decision making is dealt with by the managing trustee, P A Moores, in consultation with other trustees where necessary.
The Foundation is related to The Formby Land Trust, a registered charity, through P A Moores and P C Kurthausen being trustees of both charities. In previous years the grant support given to the The Formby Land Trust by The Freshfield Foundation has enabled the construction of a swimming pool and leisure centre for the use of the residents of Formby and those of the surrounding areas of Merseyside.
Freshfield Research (a dormant company) was incorporated on 3 May 2011 and it is related to The Freshfield Foundation through having the same three trustees as directors, P A Moores, P C Kurthausen and E J Potter.
The trustees' r eport was approved by the Board of Trustees.
P A Moores
Trustee Dated: 13 January 2022
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THE FRESHFIELD FOUNDATION
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 5 APRIL 2021
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 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 Foundation and of the incoming resources and application of resources of the Foundation for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation and 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 Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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THE FRESHFIELD FOUNDATION
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE FRESHFIELD FOUNDATION
Opinion
We have audited the financial statements of The Freshfield Foundation (the ‘Foundation’) for the year ended 5 April 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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).
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In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 5 April 2021 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 Foundation 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
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Foundation’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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THE FRESHFIELD FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FRESHFIELD FOUNDATION
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors 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 Foundation’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 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 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
The extent to which the audit was considered capable of detecting irregularities, including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we identified the laws and regulations applicable to the company through discussions with directors and other management ;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence ; and
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
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THE FRESHFIELD FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FRESHFIELD FOUNDATION
W e assessed the susceptibility of the c harit y’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested journal entries to identify unusual transactions;
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assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias ; and
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investigated the rationale behind significant or unusual transactions .
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation;
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reading the minutes of meetings of those charged with governance; and
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enquiring of management as to actual and potential litigation and claims .
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustee s and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matter s
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
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THE FRESHFIELD FOUNDATION
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FRESHFIELD FOUNDATION
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 auditors' 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.
BWM Chartered Accountants Statutory Auditor
14 January 2022
Suite 5.1 12 Tithebarn Street Liverpool L2 2DT
BWM is eligible for appointment as auditor of the Foundation by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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THE FRESHFIELD FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 5 APRIL 2021
| Current financial year Unrestricted Endowment funds funds 2021 2021 Notes £ £ Income and endowments from: Voluntary income 3 - 1,250,000 Investments 4 303,888 - Other income 5 3,298,869 (3,298,869) Total income and endowments 3,602,757 (2,048,869) Expenditure on: Raising funds 6 - 75,165 Charitable activities 7 2,408,681 - Total expenditure 2,408,681 75,165 Net gains/(losses) on investments 13 - 4,043,858 Net movement in funds 1,194,076 1,919,824 Fund balances at 6 April 2020 200,262 24,951,106 Fund balances at 5 April 2021 1,394,338 26,870,930 |
Total 2021 £ 1,250,000 303,888 - 1,553,888 75,165 2,408,681 2,483,846 4,043,858 3,113,900 25,151,368 28,265,268 |
Total 2020 £ 11,453,354 459,089 - 11,912,443 75,261 683,296 758,557 (2,792,737) 8,361,149 16,790,219 25,151,368 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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THE FRESHFIELD FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
| Prior financial year Unrestricted Endowment funds funds 2020 2020 Notes £ £ Income and endowments from: Voluntary income 3 - 11,453,354 Investments 4 459,089 - Other income 5 (16,815) 16,815 Total income and endowments 442,274 11,470,169 Expenditure on: Raising funds 6 - 75,261 Charitable activities 7 683,296 - Total expenditure 683,296 75,261 Net gains/(losses) on investments 13 - (2,792,737) Net movement in funds (241,022) 8,602,171 Fund balances at 6 April 2019 441,284 16,348,935 Fund balances at 5 April 2020 200,262 24,951,106 |
Total 2020 £ 11,453,354 459,089 - 11,912,443 75,261 683,296 758,557 (2,792,737) 8,361,149 16,790,219 25,151,368 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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THE FRESHFIELD FOUNDATION
BALANCE SHEET
AS AT 5 APRIL 2021
| Notes Fixed assets Investments 14 Current assets Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 18 Net assets The funds of the charity Endowment funds 19 Unrestricted funds |
2021 £ £ 26,870,930 250,000 4,073,201 4,323,201 (1,677,184) 2,646,017 29,516,947 (1,251,679) 28,265,268 26,870,930 1,394,338 28,265,268 |
2020 £ £ 24,951,106 350,000 1,443,990 1,793,990 (947,047) 846,943 25,798,049 (646,681) 25,151,368 24,951,106 200,262 25,151,368 |
|---|---|---|
The accounts were approved by the Trustees on 13 January 2022
P A Moores Trustee
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THE FRESHFIELD FOUNDATION
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2021
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ |
||
| Cash flows from operating activities | ||||||
| Cash generated from operations | 23 | 201,289 | 10,266,654 | |||
| Investing activities | ||||||
| Purchase of investments | (16,140,094) | (12,593,805) | ||||
| Proceeds on disposal of investments | 18,264,128 | 1,198,897 | ||||
| Investment income received | 303,888 | 459,089 | ||||
| Net cash generated from/(used in) | ||||||
| investing activities | 2,427,922 | (10,935,819) | ||||
| Net cash used in financing activities | - | - | ||||
| Net increase/(decrease) in cash and cash | ||||||
| equivalents | 2,629,211 | (669,165) | ||||
| Cash and cash equivalents at beginning of year | 1,443,990 | 2,113,155 | ||||
| Cash and cash equivalents at end of year | 4,073,201 | 1,443,990 |
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
1 Accounting policies
Charity information
The Freshfield Foundation is a UK registered charity. The principal address can be found on the Legal and Administrative information page.
1.1 Accounting convention
The accounts have been prepared in accordance with the Foundation's Trust Deed, 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)” (as amended for accounting periods commencing from 1 January 2016). The Foundation is a Public Benefit Entity as defined by FRS 102.
The financial statements 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the Foundation. Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the accounts and as detailed in the Trustees’ report the Trustees have considered the impact of Covid-19 on the charity and the trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
The endowment fund is an unrestricted fund and is expendable. It has arisen mainly from the periodic donations made in the past by the trustee P A Moores. The fund is matched by the investments that are held and transfers are made to maintain this.
1.4 Income
Income is recognised when the Foundation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Foundation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
The principal sources of income come from donations from the trustee P A Moores, augmented by income tax recovered from H M Revenue and Customs under the Gift Aid scheme for charities. The income tax recoverable is recognised at the time of the donation.
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is largely in the form of grants to institutions undertaking activities consistent with the charity's aims and objectives. The se are allocated to the relevant charitable activity .
These grants and other expenditure are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure and the amount can be measured with reasonable reliability. All amounts include irrecoverable VAT since the charity is not required to register for VAT.
Governance costs are those costs associated with the governance arrangements of the charity, which pertain to its strategic management as distinct from those of the provision of charitable activities. The costs allocated to this heading include fees for the preparation of the financial statements, their audit, legal advice for trustees, and the costs of holding trustee meetings.
1.6 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
1.8 Financial instruments
The Foundation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Foundation's balance sheet when the Foundation becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
1 Accounting policies
(Continued)
Derecognition of financial liabilities
Financial liabilities are derecognised when the Foundation’s contractual obligations expire or are discharged or cancelled.
1.9 Taxation
The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. Recovery is made of tax deducted from qualifying income and from receipts under Gift Aid.
The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.
2 Critical accounting estimates and judgements
In the application of the Foundation’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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Voluntary income
| Endowment | Endowment | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Donations and gifts | 1,250,000 | 11,453,354 |
No restrictions have been made by the donor P A Moores over the charitable uses to which donations to the expendable endowment fund of £1,250,000 (2020: £11,453,354), inclusive of recoverable taxation, can be put.
4 Investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2021 | 2020 | |
| £ | £ | |
| Income from listed investments | 282,872 | 413,967 |
| Interest receivable | 21,016 | 45,122 |
| 303,888 | 459,089 |
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
5 Other income
| Unrestricted Endowment funds funds general £ £ Other income 3,298,869 (3,298,869) For the year ended 5 April 2020 (16,815) 16,815 |
Total 2021 £ - |
Total 2020 £ - - |
|---|---|---|
Transfers are made to and from the endowment fund as required in order to match the fund to the investments held and to ensure that the general unrestricted fund has adequate funds to cover grants in excess of income.
6 Raising funds
| Investment management Charitable activities Sustainable developmen t & climate change control Education, health & general wellbeing of mankind 2021 2021 £ £ Expert fees 34,379 - Grant funding of activities (see note 8) 100,000 2,255,174 Share of governance costs (see note 9) 9,564 9,564 143,943 2,264,738 |
EndowmentEndowment funds funds 2021 2020 £ £ 75,165 75,261 TotalSustainable development & climate change control Education, health & general wellbeing of mankind Total 2021 2020 2020 2020 £ £ £ £ 34,379 10,709 - 10,709 2,355,174 100,000 555,193 655,193 19,128 8,697 8,697 17,394 2,408,681 119,406 563,890 683,296 |
|---|---|
7 Charitable activities
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
8 Grants payable
| Sustainable | Sustainable | Education, | Total |
Sustainable | Sustainable | Education, | Total | |
|---|---|---|---|---|---|---|---|---|
| development | health & | development | health & | |||||
| & climate | general | & climate | general | |||||
| change | wellbeing of | change | wellbeing of | |||||
| control | mankind | control | mankind | |||||
| 2021 | 2021 | 2021 |
2020 |
2020 | 2020 | |||
| £ | £ | £ |
£ | £ | £ | |||
| Grants to institutions: | ||||||||
| Sustrans | 100,000 | - | 100,000 |
100,000 |
- | 100,000 | ||
| St. Mungo's Community | ||||||||
| Housing Association | ||||||||
| Limited | - | 8,000 | 8,000 |
- | 20,000 | 20,000 | ||
| Motor Neurone Disease | ||||||||
| Association | - | 8,000 | 8,000 |
- | 20,000 | 20,000 | ||
| Citizens Advice Bureau | - | - | - |
- | 515,193 | 515,193 | ||
| Sustrans - Liveable | ||||||||
| Neighbourhoods | - | 2,239,174 | 2,239,174 | - | - | - | ||
| 100,000 | 2,255,174 | 2,355,174 | 100,000 |
555,193 | 655,193 | |||
| Support costs | ||||||||
| Support | Governance |
2021 | Support | Governance | 2020 | |||
| costs | costs | costs | costs | |||||
| £ | £ | £ | £ | £ | £ | |||
| Audit fees | - | 2,226 | 2,226 | - | 2,160 | 2,160 | ||
| Accountancy | - | 8,782 | 8,782 | - | 3,834 | 3,834 | ||
| Legal and professional | - | 8,056 | 8,056 | - | 11,400 | 11,400 | ||
| Accountancy fees | - | 64 | 64 | - | - | - | ||
| - | 19,128 | 19,128 | - | 17,394 | 17,394 | |||
| Analysed between | ||||||||
| Charitable activities | - | 19,128 | 19,128 | - | 17,394 | 17,394 |
9 Support costs
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
10 Auditor's remuneration
The analysis of auditor's remuneration is as follows:
| Audit of the annual accounts Non-audit services All other non-audit services |
2021 £ 2,226 8,782 |
2020 £ 2,160 3,834 |
|---|---|---|
11 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year, or was reimbursed expenses (2020: £nil reimbursed to trustees).
12 Employees
There were no employees during the current or pervious year.
13 Net gains/(losses) on investments
| Revaluation of investments Profit / (Loss) on sale of investments |
2021 2020 £ £ 2,975,112 (2,517,403) 1,068,746 (275,334) 4,043,858 (2,792,737) |
|---|---|
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
14 Fixed asset investments
| Listed investments £ Cost or valuation At 6 April 2020 16,750,180 Additions 16,140,094 Valuation changes 2,975,112 Cash movements - Disposals (9,428,193) At 5 April 2021 26,437,193 Carrying amount At 5 April 2021 26,437,193 At 5 April 2020 16,750,180 15 Financial instruments Carrying amount of financial assets Debt instruments measured at amortised cost Instruments measured at fair value through the SOFA Carrying amount of financial liabilities Measured at amortised cost 16 Debtors Amounts falling due within one year: Other debtors 17 Creditors: amounts falling due within one year Grant commitments payable < 1 year Other creditors Accruals |
Cash in portfolio £ 8,200,925 - - (7,767,188) - 433,737 433,737 8,200,925 2021 £ 4,756,939 26,437,192 2,928,863 2021 £ 250,000 2021 £ 1,649,858 18,958 8,368 1,677,184 |
Total £ 24,951,105 16,140,094 2,975,112 (7,767,188) (9,428,193) 26,870,930 26,870,930 24,951,105 2020 £ 9,994,917 16,750,180 1,593,728 2020 £ 350,000 2020 £ 910,479 29,941 6,627 947,047 |
|---|---|---|
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 5 APRIL 2021
| 18 | Creditors: amounts falling due after more than one year | ||
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| Grant commitments payable > 1 year | 1,251,679 | 646,681 |
Commitments entered into after 5 April 2021 have been disclosed in the post balance sheet event note in the accounts.
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
19 Endowment funds
----- Start of picture text -----
Movement in funds Movement in funds
Balance at Income Expenditure Transfers Investments Balance at Income Expenditure Transfers Investments Balance at
6 April 2019 gains/losses 6 April 2020 gains/losses 5 April 2021
£ £ £ £ £ £ £ £ £ £ £
Expendable endowments
P A Moores 16,348,935 11,453,354 (75,261) 16,815 (2,792,737) 24,951,106 1,250,000 (75,165) (3,298,869) 4,043,858 26,870,930
16,348,935 11,453,354 (75,261) 16,815 (2,792,737) 24,951,106 1,250,000 (75,165) (3,298,869) 4,043,858 26,870,930
----- End of picture text -----
The Expendable Fund comprises special receipts, in particular capital items donated to the Foundation over the years and subsequent movements. Realised and unrealised movements on investments held for the Expendable Endowment Fund are credited or charged to the Fund on an annual basis.
Income arising from the Expendable Endowment Fund Investments is credited directly to the Income Fund and is applied for the purposes of the Foundation as detailed in the Trustees' Report.
Transfers are made to and from this fund as required in order to match the fund to the investments held and to ensure that the general unrestricted fund has adequate funds to cover grants in excess of income.
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THE FRESHFIELD FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
20 Analysis of net assets between funds
| Unrestricted funds Endowment funds 2021 2021 £ £ Fund balances at 5 April 2021 are represented by: Investments - 26,870,930 Current assets/ (liabilities) 2,646,017 - Long term liabilities (1,251,679) - 1,394,338 26,870,930 |
TotalUnrestricted funds Endowment funds 2021 2020 2020 £ £ £ 26,870,930 - 24,951,106 2,646,017 846,943 - (1,251,679) (646,681) - 28,265,268 200,262 24,951,106 |
Total 2020 £ 24,951,106 846,943 (646,681) 25,151,368 |
|---|---|---|
21 Events after the reporting date
New commitments entered into after the year end and up to the date of signing amounted to £19,800, this amount will be paid in the current financial year.
22 Related party transactions
Mr P A Moores, a trustee, made a donation of £1,250,000 (20 20: £11,543,354 ) including gift aid to The Freshfield Foundation.
There were no other related party transactions.
The trustees are also the key management of the Foundation.
| 23 Cash generated from operations Surplus for the year Adjustments for: Investment income recognised in statement of financial activities (Gain)/loss on disposal of investments Fair value gains and losses on investments Movements in working capital: Decrease/(increase) in debtors Increase/(decrease) in creditors Cash generated from operations |
2021 £ 3,113,900 (303,888) (1,068,746) (2,975,112) 100,000 1,335,135 201,289 |
2020 £ 8,361,149 (459,089) 275,334 2,517,403 (350,000) (78,143) 10,266,654 |
|---|---|---|
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