2022-04-05-accounts

Charity registration number 1003316

THE FRESHFIELD FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022

THE FRESHFIELD FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

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||| |---|---| |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|

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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 2022

The trustees present their report and accounts for the year ended 5 April 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 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)" (effective 1 January 2019).

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the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.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 paid grants of £434,950 in this field during the year to April 2022. In this field at 5 April 2022 we also have outstanding commitments of £209,244 which are due to be settled over the coming two years.

In the fields of health and education, the charity paid grants of £140,709 to organisations involved in these areas in the year to April 2022. In this field at 5 April 2022 we have outstanding commitments of £1,889,946 which are due to be settled over the next two years. 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 £1,398,809 of which £1,074,233 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 £324,576, the balance being interest on the deposits held with Barclays Bank.

Income was applied towards the funding of the grants payable of £167,800 and a small amount of governance costs of £12,940. 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 £1,710,476, this along with a realised gain of £491,717 on the disposal of shares has been added to the Expendable Endowment Fund, which was £30,319,427 at the year end. This fund has arisen from accumulated donations and of this fund £29,883,749 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.

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 an income fund.

• 1 -

THE FRESHFIELD FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

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 28 June 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

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' report was approved by the Board of Trustees.

P A Moores

Trustee Dated: 30 January 2023

• 2 -

THE FRESHFIELD FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 5 APRIL 2022

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:

• 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 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 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.

• 3 -

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 2022 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).

In our opinion, the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 5 April 2022 and of its incoming resources and application of resources, for the year then ended;

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

• 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.

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:

• the information given in the financial statements is inconsistent in any material respect with the trustees' report; or

• sufficient accounting records have not been kept; or

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

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

• 4 -

THE FRESHFIELD FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FRESHFIELD FOUNDATION

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:

• 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;

• we identified the laws and regulations applicable to the company through discussions with directors and other management;

• 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 Charities Act 2011, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

• 5 -

THE FRESHFIELD FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE FRESHFIELD FOUNDATION

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• 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:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• 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:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance; and

• 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 trustees 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: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

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.

• 6 -

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 2 February 2023 Chartered Accountants Statutory Auditor 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.

• 7 -

THE FRESHFIELD FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 5 APRIL 2022

Current financial year

Current financial year	Current financial year	Current financial year
Unrestricted Endowment funds funds 2022 2022 Notes £ £			Total	Total
	funds	funds
	2022	2022	2022	2021
	£	£	£	£
Income and endowments from:
Voluntary income 3	-	1,074,233	1,074,233	1,250,000
Investments 4	324,576	-	324,576	303,888
Other income 5	(243,880)	243,880	-	-
Total income	80,696	1,318,113	1,398,809	1,553,888
Expenditure on:
Raising funds 6	-	71,809	71,809	75,165
Charitable activities 7	212,528	-	212,528	2,408,681
Total expenditure
	212,528	71,809	284,337	2,483,846
Net gains/(losses) on investments 13	-	2,202,193	2,202,193	4,043,858
Net movement in funds Fund balances at 6 April 2021 Fund balances at 5 April 2022
	(131,832)	3,448,497	3,316,665	3,113,900
	1,394,338	26,870,930	28,265,268	25,151,368
	1,262,506	30,319,427	31,581,933	28,265,268

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

• 8 -

THE FRESHFIELD FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

Prior financial year

Prior financial year	Prior financial year	Prior financial year
Unrestricted Endowment funds funds 2021 2021 Notes £ £			Total
	funds	funds
	2021	2021	2021
	£	£	£
Income and endowments from:
Voluntary income 3	-	1,250,000	1,250,000
Investments 4	303,888	-	303,888
Other income 5	3,298,869 3,602,757	(3,298,869)	-
Total income		(2,048,869)	1,553,888
Expenditure on:
Raising funds 6	-	75,165	75,165
Charitable activities 7	2,408,681	-	2,408,681
Total expenditure
	2,408,681	75,165	2,483,846
Net gains/(losses) on investments 13	-	4,043,858	4,043,858
Net movement in funds	1,194,076	1,919,824	3,113,900
Fund balances at 6 April 2020 Fund balances at 5 April 2021
	200,262	24,951,106	25,151,368
	1,394,338	26,870,930	28,265,268

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

• 9 -

THE FRESHFIELD FOUNDATION

BALANCE SHEET

AS AT 5 APRIL 2022

Notes	2022	2022	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	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
	£	£	£
Fixed assets
Investments 14 Current assets	- 3,742,180 3,742,180 (1,804,296)	30,319,427 1,937,884 32,257,311 (675,378) 31,581,933	250,000 4,073,201 4,323,201 (1,677,184)
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
				(1,251,679)
				28,265,268 26,870,930 1,394,338 28,265,268
The funds of the charity
Endowment funds 19		30,319,427 1,262,506 31,581,933
Unrestricted funds

The accounts were approved by the Trustees on 30 January 2023

P A Moores Trustee

• 10 -

THE FRESHFIELD FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 5 APRIL 2022

Notes Cash flows from operating activities Cash generated from operations 23 Investing activities Purchase of investments	2022 2021	2022 2021	2022 2021
	£	£ £	£
	(7,431,891) 6,185,587 324,576	590,707 (16,140,094) 18,264,128 303,888 (921,728) (331,021) 4,073,201 3,742,180
			201,289
Proceeds on disposal of investments
Investment income received
Net cash (used in)/generated from investing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
			2,427,922
			2,629,211
			1,443,990
			4,073,201

• 11 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 5 APRIL 2022

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 financial statements have been prepared in accordance with the Foundation's Trust Deed, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). 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 amounts 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 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.

• 12 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

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. These 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 payments 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.

• 13 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

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
	2022	2021
	£	£
Donations and gifts	1,074,233	1,250,000

No restrictions have been made by the donor P A Moores over the charitable uses to which donations to the expendable endowment fund of £1,074,233 (2021: £1,250,000), inclusive of recoverable taxation, can be put.

4 Investments

Unrestricted Unrestricted funds funds 2022 2021 £ £	Unrestricted Unrestricted funds funds 2022 2021 £ £	Unrestricted Unrestricted funds funds 2022 2021 £ £
	funds	funds
	2022	2021
	£	£
Income from listed investments	284,928	282,872
Interest receivable	39,648	21,016
	324,576	303,888

• 14 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

5 Other income

Unrestricted Endowment funds funds general £ £ Other income (243,880) 243,880 For the year ended 5 April 2021 3,298,869 (3,298,869)	Unrestricted Endowment funds funds general £ £ Other income (243,880) 243,880 For the year ended 5 April 2021 3,298,869 (3,298,869)	Unrestricted Endowment funds funds general £ £ Other income (243,880) 243,880 For the year ended 5 April 2021 3,298,869 (3,298,869)	Total	Total
	funds	funds	2022	2021
		general
	£	£	£	£
	(243,880)	243,880	-	-
	3,298,869 (3,298,869)
For the year ended 5 April 2021				-

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

	Endowment	Endowment
	funds	funds
	2022	2021
	£	£
Investment management	71,809	75,165

7 Charitable activities

Sustainable development & climate change control Education, health & general wellbeing of mankind 2022 2022 £ £	Sustainable development & climate change control Education, health & general wellbeing of mankind 2022 2022 £ £	Sustainable development & climate change control Education, health & general wellbeing of mankind 2022 2022 £ £	Total Sustainable development & climate change control Education, health & general wellbeing of mankind	Total Sustainable development & climate change control Education, health & general wellbeing of mankind	Total Sustainable development & climate change control Education, health & general wellbeing of mankind	Total
	2022	2022	2021	2021	2021	2020
	£	£	£	£	£	£
Expert fees	31,788	-	31,788	34,379	-	34,379
Grant funding of activities (see note 8)
	100,000	67,800	167,800	100,000	2,255,174	2,355,174
Share of governance costs (see note 9)
	6,470	6,470	12,940	9,564	9,564	19,128
	138,258	74,270	212,528	143,943	2,264,738	2,408,681

• 15 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

8 Grants payable

Sustainable development & climate change control Education, health & general wellbeing of mankind 2022 2022 £ £ Grants to institutions: Sustrans Core Funding 100,000 - St. Mungo's Community Housing Association Limited - - Motor Neurone Disease Association - 48,000 Sustrans - Liveable Neighbourhoods - - Sustrans - City Lab Development - 19,800 100,000 67,800	Sustainable development & climate change control Education, health & general wellbeing of mankind 2022 2022 £ £ Grants to institutions: Sustrans Core Funding 100,000 - St. Mungo's Community Housing Association Limited - - Motor Neurone Disease Association - 48,000 Sustrans - Liveable Neighbourhoods - - Sustrans - City Lab Development - 19,800 100,000 67,800	Sustainable development & climate change control Education, health & general wellbeing of mankind 2022 2022 £ £ Grants to institutions: Sustrans Core Funding 100,000 - St. Mungo's Community Housing Association Limited - - Motor Neurone Disease Association - 48,000 Sustrans - Liveable Neighbourhoods - - Sustrans - City Lab Development - 19,800 100,000 67,800	Sustainable development & climate change control Education, health & general wellbeing of mankind 2022 2022 £ £ Grants to institutions: Sustrans Core Funding 100,000 - St. Mungo's Community Housing Association Limited - - Motor Neurone Disease Association - 48,000 Sustrans - Liveable Neighbourhoods - - Sustrans - City Lab Development - 19,800 100,000 67,800	Sustainable development & climate change control Education, health & general wellbeing of mankind 2022 2022 £ £ Grants to institutions: Sustrans Core Funding 100,000 - St. Mungo's Community Housing Association Limited - - Motor Neurone Disease Association - 48,000 Sustrans - Liveable Neighbourhoods - - Sustrans - City Lab Development - 19,800 100,000 67,800	Sustainable development & climate change control Education, health & general wellbeing of mankind 2022 2022 £ £ Grants to institutions: Sustrans Core Funding 100,000 - St. Mungo's Community Housing Association Limited - - Motor Neurone Disease Association - 48,000 Sustrans - Liveable Neighbourhoods - - Sustrans - City Lab Development - 19,800 100,000 67,800	Total Sustainable development & climate change control Education, health & general wellbeing of mankind Total	Total Sustainable development & climate change control Education, health & general wellbeing of mankind Total	Total Sustainable development & climate change control Education, health & general wellbeing of mankind Total	Total Sustainable development & climate change control Education, health & general wellbeing of mankind Total	Total Sustainable development & climate change control Education, health & general wellbeing of mankind Total	Total Sustainable development & climate change control Education, health & general wellbeing of mankind Total
		2022		2022		2022		2021		2021 2021
		£		£		£		£		£ £
		100,000		-		100,000		100,000		- 100,000
		-		-		-		-		8,000 8,000
		-		48,000		48,000		-		8,000 8,000
		-		-		-		-		2,239,174 2,239,174
		-		19,800		19,800		-		-	-
		100,000		67,800		167,800		100,000		2,255,174 2,355,174
9 Support costs
Audit fees Accountancy Legal and professional Bank charges Analysed between Charitable activities	Support costs Governance costs					2022 Support costs Governance costs					2021
	£		£			£	£		£		£
	-		2,400			2,400	-		2,226		2,226
	-		6,820			6,820	-		8,782		8,782
	-		3,720			3,720	-		8,056		8,056
	-		-			-	-		64		64
	-		12,940		12,940		-		19,128		19,128
	-		12,940		12,940		-		19,128		19,128

Governance costs have been split equally between all active charitable activities.

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, or was reimbursed expenses (2021: £nil reimbursed to trustees).

• 16 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

11 Auditor's remuneration

The analysis of auditor's remuneration is as follows:

The analysis of auditor's remuneration is as follows:
	2022	2021
	£	£
Audit of the annual accounts	2,400	2,226
Non-audit services
All other non-audit services	6,820	8,782

12 Employees

There were no employees during the current or pervious year.

13 Net gains/(losses) on investments

	2022	2021
	£	£
Revaluation of investments	1,710,476	2,975,112
Profit / (Loss) on sale of investments	491,717	1,068,746
	2,202,193	4,043,858

• 17 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

14 Fixed asset investments

Listed investments £ Cost or valuation At 6 April 2021 26,437,193 Additions 7,431,891 Valuation changes 1,700,426 Cash movements - Disposals (5,685,761) At 5 April 2022 29,883,749 Carrying amount At 5 April 2022 29,883,749 At 5 April 2021 26,437,193	Listed investments £ Cost or valuation At 6 April 2021 26,437,193 Additions 7,431,891 Valuation changes 1,700,426 Cash movements - Disposals (5,685,761) At 5 April 2022 29,883,749 Carrying amount At 5 April 2022 29,883,749 At 5 April 2021 26,437,193	Cash in portfolio	Total £ 26,870,930 7,431,891 1,700,426 1,941
	£	£
	26,437,193	433,737
	7,431,891	-
	1,700,426	-
	-	1,941
	(5,685,761)	-	(5,685,761)
			30,319,427 30,319,427 26,870,930 2021 £ 4,756,939 26,437,193 2,928,863 2021 £ 250,000 2021 £ 1,649,858 18,958 8,368 1,677,184
	29,883,749	435,678
	29,883,749	435,678
	26,437,193	433,737
15 Financial instruments		2022
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		£
		4,177,858
		29,883,749
		2,479,674
		2022
		£
		-
17 Creditors: amounts falling due within one year
Grant commitments payable < 1 year Other creditors Accruals		2022
		£
		1,423,812
		20,183
		360,301
		1,804,296

• 18 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

18	Creditors: amounts falling due after more than one year
		2022	2021
		£	£
	Grant commitments payable > 1 year	675,378	1,251,679

Commitments entered into after 5 April 2022 have been disclosed in the post balance sheet event note in the accounts.

• 19 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022

19 Endowment funds

Balance at 6 April 2020 £	Balance at 6 April 2020 £		Movement in funds	Movement in funds				Movement in funds	Movement in funds
		Income	Expenditure	Transfers	Investments gains/losses	Balance at 6 April 2021	Income	Expenditure	Transfers	Investments gains/losses	Balance at 5 April 2022
		£	£	£	£	£	£	£	£	£	£
Expendable endowments
P A Moores	24,951,106	1,250,000 1,250,000	(75,165)	(3,298,869)	4,043,858	26,870,930	1,074,233 1,074,233	(71,809)	243,880	2,202,193	30,319,427
	24,951,106		(75,165)	(3,298,869)	4,043,858	26,870,930		(71,809)	243,880	2,202,193	30,319,427

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.

• 20 -

THE FRESHFIELD FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 5 APRIL 2022

20 Analysis of net assets between funds	20 Analysis of net assets between funds	20 Analysis of net assets between funds				Total 2021 £ 26,870,930 2,646,017
Unrestricted funds Endowment funds 2022 2022 £ £ Fund balances at 5 April 2022 are represented by: Investments - 30,319,427 Current assets/(liabilities) 1,937,884 - Long term liabilities (675,378) - 1,262,506 30,319,427			Total Unrestricted funds Endowment funds
	2022	2022	2022	2021	2021
	£	£	£	£	£
	-	30,319,427	30,319,427	-	26,870,930
	1,937,884	-	1,937,884	2,646,017	-
	(675,378)	-	(675,378)	(1,251,679)	-	(1,251,679)
						28,265,268
	1,262,506	30,319,427	31,581,933	1,394,338	26,870,930

21 Events after the reporting date

New commitments entered into after the year end and up to the date of signing amounted to £268,000 of which £48,000 will be paid in theyear ended 5 April 2023.

22 Related party transactions

Mr P A Moores, a trustee, made a donation of £1,074,233 (2021: £1,250,000) 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	2022	2021 £ 3,113,900
	£
Surplus for the year	3,316,665
Adjustments for: Investment income recognised in statement of financial activities Gain on disposal of investments Fair value gains and losses on investments Movements in working capital:
	(324,576)	(303,888)
	(491,717)	(1,068,746)
	(1,710,476)	(2,975,112)
		100,000 1,335,135 201,289
Decrease in debtors	250,000
(Decrease)/increase in creditors	(449,189)
Cash generated from operations	590,707

• 21 -