The Joseph and Lilian Sully Foundation Registered Charity No. 1014823
Annual Report and Consolidated Financial Statements for the Year Ended 31 March 2022
The Joseph and Lilian Sully Foundation Content page
| Page | |
|---|---|
| Report of the Trustees | 1 - 4 |
| Independent Auditor's Report | 5 - 8 |
| Consolidated Statement of Financial Activities | 9 |
| Balance Sheets | 10 |
| Consolidated Statement of Cash Flows | 11 |
| Notes to the financial statements | 12 - 23 |
The Joseph and Lilian Sully Foundation Trustees Annual Report for the Year Ended 31 March 2022
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Reference & Administrative Details
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(a) Name: The Joseph and Lilian Sully Foundation
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(b) Charity no: 1014823
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(c) Principal Office: Floor 6, 9 Appold Street, London EC2A 2AP
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(d) Names of Trustees on the date this report was approved:
Peter Timms John Mortimer Alastair Collett Dionne Dixon
Anthony Behrens was also a trustee up until 8 May 2021.
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(e) The Governing document of the Charity is the Trust Deed dated 25 September 1992 as amended by deed dated 2 February 2002.
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(f) Principal advisers:
Independent auditor – Moore Kingston Smith LLP
Investment managers – Quilter Cheviot and Close Brothers Bankers – HSBC plc
- (g) The Objects of the Charity are as follows:
1) the relief of suffering, distress, disease and poverty among children and the provision of education, assistance for children, their families and their communities;
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2) the conservation and other activities for the preservation of Epping Forest as a public amenity; and
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3) to support such other general charitable purposes as the trustees may in their absolute discretion determine.
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Explanation of the Work of the Charity, grant awarding policy and future plans The charity, although set up in 1992, only became adequately funded after the death of Lilian Sully in 2015. The residuary beneficiary of her will was the charity and £13 million was bequeathed from her estate.
The major part of Lilian Sully’s estate comprised 100% of the shares in the family investment company. This company is now a subsidiary of the charity and has funds of nearly £13 million comprising investments that are managed by investment advisors and 2 commercial properties.
The charity regularly receives appeals for assistance which, if the appeals are within its objects, are considered and, if approved, sums are donated. A major grantee of the charity is Voluntary Action Epping Forest (VAEF) which helps older people in the area in numerous ways. VAEF is a beneficiary of substantial grants from the Lottery Fund and this charity committed in 2020 that support will continue to be forthcoming for the next 5 years of at least £20,000 per annum. In pursuit of its charitable objectives several payments have also been made to other individual charities and organisations who provide direct benefit to the wider public. Details of grants made are shown in note 5 to the financial statements.
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The Joseph and Lilian Sully Foundation Trustees Annual Report for the Year Ended 31 March 2022
All decisions are made by the trustees and it is they who decide which grants should be awarded primarily through meetings held throughout the year.
The long term strategy, and hence the plan for the future, is to continue making payments at an increasing amount within the objects as defined by the Trust Deed. The Trustees have had regard to Charity Commission guidance on public benefit including the guidance ‘public benefit: running a charity (PB2),’ when reviewing the aims and objectives and in planning the future activities of the charity. The charity does not undertake fundraising activities and has received no complaints in relation to fundraising in the reporting period.
In September 2022 the trustees agreed to support an initiative by Alzheimer’s Research UK and Race against Dementia approving a grant of £500,000 over a fiveyear period to recruit an early career researcher with the aim of finding a breakthrough into the treatment and containment of the disease.
3. Reserves Policy
The policy of the Trustees towards reserves of the Foundation is that any part of the capital or income of the charitable funds which may not for the time being be immediately required for the purposes of the Foundation may be invested by the Trustees. It is the intention of the Trustees to sustain funds at a level which will provide sufficient investment income to increase the level of donations paid, cover the management and administration costs and to be able to respond to any emergency applications which may arise. In 2018 the Foundation recognised a significant endowment from the Estate of Lilian Sully as the charity is the principal beneficiary of her residuary estate.
The estate of Lilian Sully was fully administered during 2019 and the delayed proceeds from a Life Bond were received during the year under review. As all the funds in the charity are an expendable endowment the trustees do not consider it necessary to identify a particular level of free reserves. As at 31[st] March 2022 the charitable group had expendable endowment funds of £16,721,041 and unrestricted funds of £329,960.
4. Financial Review & Main Achievements
The charity generated net income (excluding any addition of endowment and gains and losses) of £435,503 in the year (2021: £48,715) and also had net investment gains of £266,167 (2021: £2,490,590). Grants awarded in the year were £391,750 (2021: £274,750). It is the aim of the trustees to distribute each year at least the net income to worthwhile causes within the objects of the charity.
Unspent income at 31[st] March 2022 is £329,960 (£304,909 at 31 March 2021). The definition of unspent income is the combined net income of the Foundation (excluding endowments) and the Company before any adjustment of movements in the value of investments and investment manager fees since 1[st] April 2018.
5. Investment Policy
The aim of the charity’s investment policy is to produce a mix of income and capital growth to balance the needs of current and future beneficiaries, with a moderate risk
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The Joseph and Lilian Sully Foundation Trustees Annual Report for the Year Ended 31 March 2022
profile. Of the £1,221,687 cash at bank shown in the balance sheet some £507,359 is with the investment advisors waiting to be invested.
6. Risk Management
Although the charity does not currently maintain a risk register, the trustees consider the principal risks to the achievement of the charity’s objectives at each meeting. The main risk is an unexpected drop in the level of investment income leading to a requirement to curtail the charity’s grant awarding programme. This is mitigated by the management of the investment portfolio by professional investment managers based on a moderate risk profile.
7. Related parties
The Joseph and Lilian Sully Foundation has one wholly owned trading subsidiary; Joseph Sully Holdings Limited, which generates income from two rental properties and an investment portfolio. Joseph Sully Holdings Limited distributes its taxable profits to the Foundation. There are occasionally other related party transactions entered into knowingly by the Foundation and details of these can be seen in note 15.
8. Trustees – Induction and training
The Trustees have acted as such for a number of years and are well aware of the responsibilities of their role and of its importance. The Trustees review the accounts annually and take advice from Moore Kingston Smith LLP who act as independent auditors for the charity.
9. Trustees – Going concern
The financial statements have been prepared on a going concern basis. 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 entity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. The trustees conclude there is a reasonable expectation that the Foundation has adequate resources and unrestricted reserves/cash balances to continue in operational assistance for the foreseeable future. The Foundation therefore continues to adopt the going concern basis in preparing its financial statements.
10. Statement of Trustees Responsibilities for the Financial Statements
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 Charity and the resources and application of resources, including income and expenditure for that period.
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Thg Josoph and Lillan Sulty Foundatlon Tntst#•8 Annual Report for thg Y••r Endod 31 Meh 2022 In weparing those frnal Statern Truslees are required to: SelwA $uRaL4e accounling FdicEs and then apptry them siStenI.. ObseNe the methols 8rvJ prinapies in the Charitie5 SORP: Makejudgments and estimates that we reasonab and prudent., Stats whether app&¢0• accounting standards and statements of rec¥)nNnended w8c#ice have been fdkA¥ed. subi8ct to any departur8¥ disdosed and eXalned in the financial statements", Pr8pare the tm8nual statements on a going concern baw"s urdess it ' inappropriate to prosume that tha Charity will cntInUe in business. In so far as the Trustees are aware: There is no rdev¥tt wjdrt infumation ofwhith th•tharitstA$ ex)mpany's audilc is Unare.. and The Truslees have laken steps that they Olht to have tsken to make themsefves &3re of any audrt Infomiabon to establish that thE BLKbrtor is aware of that infomiation. The Trustees a resFA)nsible lor keeping proper accounliTrJ rg(xKts that (lisdose wilh reasonable acrjjrY at any time the financial position of the Charity atMI to enatle them to &nsure the financial State[rts compty vthh th8 Chanty's Séttlement Deed. the Charilies Ad 2011 and the ¥evv1 st8t8rne of RecAynmended Praciic . AcntIng and Repth'rKJ by chariti.es (SORP 20151. The TfL&8tees are also re5POllSitA8 safeguarding the assets of the Charrty and hew forlaking reasonablè steps for Ihe prevention and dètection of fraud and other irregularities. Approved by ts Trustee5 and $igned on thwr beh#ff by". Tnth: John morts.mer t)ate: 13/ Page.. 4
Independent Auditor's Report to the Trustees of The Joseph and Lilian Sully Foundation
Opinion
We have audited the financial statements of The Joseph and Lilian Sully Foundation for the year ended 31 March 2022 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Foundation Balance Sheets, the Consolidated Statement of Cash Flows and 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 (United Kingdom Generally Accepted Accounting Practice) including FRS 102 "The Financial Reporting Standard Applicable in the UK and Ireland" (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the group’s and the parent charitable foundation’s affairs as at 31 March 2022 and of the group’s incoming resources and application of resources, including the income and expenditure 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 charity 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 charitable company'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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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Independent Auditor's Report to the Trustees of The Joseph and Lilian Sully Foundation
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 where the Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the Trustees' Annual Report is inconsistent in any material respect with the financial statements; or
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the charity has not kept adequate accounting records; or
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the financial records are not in agreement with the accounting records and returns; or
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• we have not received all the information and explanations we required for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, 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 trustees 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 charity’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 liquidate the charity or 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 regulations made under section 154 of that Act.
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 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.
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Independent Auditor's Report to the Trustees of The Joseph and Lilian Sully Foundation
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.
Our approach was as follows:
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We obtained an understanding of the legal and regulatory requirements applicable to the charity considered that the most significant are, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
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We obtained an understanding of how the charity company complies with these requirements by discussions with management.
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We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management.
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We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
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Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and obtaining additional corroborative evidence as required.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charity’s internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Independent Auditor's Report to the Trustees of The Joseph and Lilian Sully Foundation
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.
Moore Kingston Smith
17 January 2023 9 Appold Street London EC2A 2AP Date:
Moore Kingston Smith is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
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The Joseph and Lilian Sully Foundation Consolidated Statement of Financial Activities for the year ended 31 March 2022
| Note Income and endowments from: Donations and legacies Investment income 3 Total Expenditure on: Raising funds Investment management fees 5 Trading subsidiary costs Charitable activities Grants awarded 5 Total Realised gain on disposals 4 Unrealised gain on disposals 4 Net income 7 Transfer between funds 13 Net movement in funds Fund balances at 1 April 2021 13 Fund balances at 31 March 2022 13 |
Unrestricted Expendable Endowment Total Total Funds Funds 2022 2021 £ £ £ £ - 485,342 485,342 - 553,077 - 553,077 522,342 553,077 485,342 1,038,419 522,342 - 74,890 74,890 77,008 125,011 - 125,011 116,095 403,015 - 403,015 280,524 528,026 74,890 602,916 473,627 - 89,735 89,735 312,805 - 176,432 176,432 2,177,785 25,051 676,619 701,670 2,539,305 - - - - 25,051 676,619 701,670 2,539,305 304,909 16,044,422 16,349,331 13,810,026 329,960 16,721,041 17,051,001 16,349,331 |
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Th• Jo8•ph and Ullan Sulty Foundallo Shevts •131 lw¢th 21122 Group Th•J+)wh and U4•n Sulty Found•iio 2022 2021 2021 Fbx•d a88•ts 13.606.685 13.81fj263 1,800.C 1.800.WO 13.938.365 13,e61,888 Dèbt( Cash at bar 10 511.508 1.221.$87 1.TJ3,195 11.328 1.032.403 1,043.731 491.321 201.629 692.950 12.771 337.097 349.874 Crndttorn: aMAtr due I ttn one ar 11 68.879 00.6&3 35.4C 11gtCurrfrnt 5•ts 1.004.316 983.Cfj8 657.550 315.624 more than one ye 12 120.oc I40.0> 120.OTrJI 140.0 Totsl Asmts L•s Toial Llabllltl88 17.051.001 16.349.331 14,675.915 14.137.512 Totsl N•ts••ts 17J>51 001 16 34 31 14 $75 915 14.137.512 Fund¥ 13 329.96D 304.W9 13 16.721.041 16,044.422 14.575.915 14.137.512 Tolal Funds 17 051.001 16 31 14 76 915 14 137 612 fthrthl and we5P Imms TnJ5tee.' J Mèrttmer Charfty No. 1014823 Py.. 10
The Joseph and Lilian Sully Foundation Consolidated Statement of Cash Flows for the year ended 31 March 2022
| 2022 | 2021 | |||
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| £ | £ | |||
| Net cash (used in)/provided by operating activities (note a) | (554,648) | (425,299) | ||
| Cash flow provided by investing activities | ||||
| Dividends and interest from investments | 553,077 | 522,342 | ||
| Fund manager fees | (74,890) | (77,008) | ||
| Payments to acquire fixed asset investments | (1,129,778) | (2,550,763) | ||
| Proceeds received from investments | 1,395,523 | 1,806,813 | ||
| Net cash used in capital investment transactions | 265,745 | (743,950) | ||
| Net cash (used in)/provided by investing activities Change in cash and cash equivalents Cash and cash equivalents at the beginning of the year |
743,932 189,284 1,032,403 |
(298,616) (723,915) 1,756,318 |
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| Cash and cash equivalents at the end of the year | (note b) | 1,221,687 | 1,032,403 | |
| a. Net cash from operating activities Net income Adjustments for: - Net (loss)/gain on investments - Dividends and interest from investments - Fund manager fees - (Increase) / decrease in debtors - (Decrease) / increase in creditors |
2022 £ 701,670 (266,167) (553,077) 74,890 (500,180) (11,784) |
2021 £ 2,539,305 (2,490,590) (522,342) 77,008 (6,310) (22,370) |
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| Cash flow (used in)/provided by operating activities | (554,648) | (425,299) | ||
| b. Cash and cash equivalents at year end Cash held in operational bank account Cash held within investment portfolio (note c) |
2022 £ 714,328 507,359 |
2021 £ 465,906 566,497 |
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| Cash and cash equivalents at year end | 1,221,687 | 1,032,403 | ||
| c. Reconciliation of cash held in investment portfolio Cash held in investment portfolio at 1 April Net cash from dividends less management fees Net cash used to purchase investments Cash from operating accounts to fund investments Cash transfer to fund operational activities |
2022 £ 566,497 180,047 13,696 - (252,881) |
2021 £ 622,621 141,836 (743,953) 750,000 (204,007) |
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| Cash held in investment portfolio at 31 March | 507,359 | 566,497 |
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The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2022
1. Accounting Policies
a) Basis of preparation
These financial statements are prepared on a going concern basis, under the historical cost convention modified for the revaluation of investment assets to their market value at the balance sheet date.
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charity is a public benefit entity for the purposes of FRS 102 and therefore the charity prepares its financial statements in accordance with the 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 (The FRS 102 Charities SORP) and the Charities Act 2011. The consolidated statements comprise the financial statements of the Joseph and Lilian Sully Foundation and its trading subsidiary Joseph Sully Holdings Limited.
The financial statements are prepared in sterling, which is the functional currency of the Group. Monetary amounts in these financial statements are rounded to the nearest pound.
The Charity is a Public Benefit Entity as defined by FRS 102.
The consolidated financial statements comprise the financial statements of the Foundation and its trading subsidiary "Joseph Sully Holdings Limited" Company Number 01276376 made up to 31 March 2022. The total income and expenditure of these entities is shown in the Statement of Financial Activities ("SOFA"). The statements are consolidated on a line by line basis. The Foundation has taken advantage of the exemption from disclosing its individual SOFA. The Foundation only surplus (net movement in funds) was £438,403 (2021: £300,887).
b) Going concern
The financial statements have been prepared on a going concern basis. There are no material uncertainties about the company's ability to continue as a 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 entity to continue as a going concern. The trustees have considered the impact of Covid-19 on the investment portfolio and investment income generation to be short term. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. The trustees conclude there is a reasonable expectation that the Foundation has adequate resources and unrestricted reserves/cash balances to continue in operational existence for the foreseeable future. The Foundation therefore continues to adopt the going concern basis in preparing its financial statements.
c) Expenditure and its basis of allocation
Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered. Expenditure is recognised once there is legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
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The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2022
1. Accounting policies
c) Expenditure and its basis of allocation (continued)
Expenditure includes direct costs of activities and those costs of an indirect nature necessary to support those activities. Grants are recognised when the recipient has been notified of the grant awarded.
d) Income
Donations and legacies are recognised when there is evidence of entitlement, the receipt is probable and the amount can be measured reliably. Dividends are recognised when the charity is entitled to the income. Rental income in relation to the investment properties held by the subsidiary is recognised once the payment becomes due. All income is recognised net of VAT.
e) Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the Statement of Financial Activities.
f) Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of deprecation and any impairment losses. Depreciation is recognised so as to write off the cost of valuation of assets less their residual values other their useful lives on the following bases: Computer equipment 3 years straight line
g) Taxation
The charity has suffered no tax charge, as it is not subject to UK Corporation tax on its charitable activities. No liability to current or deferred tax in is consider necessary in the trading subsidiary as the directors have resolved to make charitable donations equivalent to the taxable profits to the Foundation.
h) Cash and Cash Equivalents
Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.
i) Fund accounting
The unrestricted income fund is for the objectives of the charity without further specified purpose, available as general funds.
The endowment fund represents expendable capital funds which have been bequeathed or donated to the charity. Transfers are made to the unrestricted income fund when necessary to support the charitable expenditure.
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The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2022
j) Financial Instruments
The Group 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 and company balance sheet when the Foundation or company becomes party to the contractual provisions of the instruments.
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. Listed investments are a basic financial asset and are accounted according to the policy outlined in note 1l.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 business 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.
k) Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2022
1. Accounting policies
l) Investments
Investment are stated at market value rather than at historical cost. Any unrealised or realised gains or losses arising from this policy are disclosed in the statement of financial activities.
m) Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events and are believed to be reasonable under the circumstances, as follows:
· Valuation of investment property
The carrying value of the investment property as at 31 March 2022 is based on a valuation carried out by the Foundation's property managers Strettons Limited in July 2020. The investment properties were not inspected as part of the valuation and as such the valuation has not been prepared in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation - Global Standards, incorporating the International Valuation Standards (IVS) 2017 (The Red Book). The valuation was made on an open market basis drawing upon comparable market transactions of most relevance. As a result of the outbreak of Covid19 and uncertainty in the property sector the report included a 'material valuation uncertainty' as per VPS 3 and VPGA 10 of the RICS Red Book Global.
2) Results from subsidiary
The Joseph and Lilian Sully Foundation has one wholly owned trading subsidiary: Joseph Sully Holdings Limited, which generates income from two rental properties and an investment portfolio. Joseph Sully Holdings Limited distributes its taxable profits to the Foundation. The registered office of the subsidiary is 9 Appold Street, London, EC2A 2AP. Unaudited financial statements for the subsidiary are filed annually with the Registrar of Companies. A summary of the results of Joseph Sully Holdings Limited for 2022 and 2021 are detailed on the next page.
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The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2022
2) Results from subsidiary (continued)
Profit and Loss
| Turnover Administrative expenses Operating profit Profit/(Loss) on disposal of listed investments (Loss)/Profit on revaluation of listed investments measured at fair value Profit before taxation Taxation Net result Distribution to the Foundation Balance Sheet Fixed Assets Investment properties Investments Current Assets Debtors Cash and cash equivalents Creditors: amount falling due within one year Net Current Assets Total assets less total liabilities Capital and Reserves Called up Share capital Revaluation Reserve Capital redemption reserve Retained earnings Total equity |
2022 £ 492,118 (176,978) 315,140 93,888 124,237 533,265 - 533,265 270,000 1,800,000 10,343,831 12,143,831 20,187 1,020,058 1,040,245 (33,480) 1,006,765 13,150,596 1,000,000 313,319 3,900,100 7,937,177 13,150,596 |
2021 £ 466,823 (172,798) 294,025 246,204 1,698,189 2,238,418 - 2,238,418 - 1,800,000 10,419,890 12,219,890 4,818 695,306 700,124 (32,682) 667,442 12,887,332 1,000,000 313,319 3,900,100 7,673,913 12,887,332 |
|---|---|---|
Page: 16
The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2022
| 3. Investment income | |||
|---|---|---|---|
| Expendable | |||
| Unrestricted | Endowment | Total | |
| Year to 31 March 2022 | Funds | Funds | 2022 |
| £ | £ | £ | |
| Investment income | |||
| Dividends and bank interest | 411,271 | - | 411,271 |
| Rental income | 141,806 | - | 141,806 |
| 553,077 | - | 553,077 | |
| Year to 31 March 2021 | Unrestricted Funds |
Expendable Endowment Funds |
Total 2021 |
| Investment income | £ | £ | £ |
| Dividends and bank interest | 377,614 | - | 377,614 |
| Rental Income | 144,728 | - | 144,728 |
| 522,342 | - | 522,342 | |
| 4. Fixed Asset Investments | 2022 | 2021 | |
| a. Group | £ | £ | |
| Market value at 1 April 2021 | 13,606,263 | 10,371,723 | |
| Additions | 1,129,778 | 2,550,763 | |
| Disposal proceeds | (1,395,523) | (1,806,813) | |
| Unrealised gain | 176,432 | 2,177,785 | |
| Realised gain | 89,735 | 312,805 | |
| Market value at 31 March 2022 | 13,606,685 | 13,606,263 | |
| Historic cost of investments of the Group | 11,345,487 | 10,996,177 | |
| Market value of investments by type for the Group | 2022 | 2021 | |
| UK listed investments | £ 13,546,660 |
£ 13,546,238 |
|
| Offshore bonds | 60,025 | 60,025 | |
| 13,606,685 | 13,606,263 | ||
| There were no significant holdings at 31 March 2022 or 31 March 2021. b. The Joseph and Lilian Foundation 2022 £ Market value at 1 April 2021 3,186,375 Additions 251,192 Disposal proceeds (222,757) Unrealised gain 52,196 Realised (loss)/gain (4,154) Market value at 31 March 2022 3,262,852 Investment in Subsidiary (at fair value on acquisition) 10,675,513 Total 13,938,365 3,004,983 Significant investment holdings for the Group based on market value at 31 March were: Historic cost of investments of the Foundation (excluding |
2021 £ 1,938,337 1,165,325 (463,484) 479,596 66,601 3,186,375 10,675,513 13,861,888 2,863,933 |
||
| trading subsidiary) |
Page: 17
The Joseph and Lilian Sully Foundation Notes to the Financial Statements
for the year ended 31 March 2022
5. Total Expenditure
| Raising funds Investment management fees Property Management fees Charitable activities Clapton Common Boys Club Crisis UK Parkinsons UK Holy Innocents Church Great Ormond Street Hospital NSPCC The Salvation Army Alzheimer's Research UK St Clare Hospice Macmillan Cancer Support Children with Cancer UK Voluntary Action Epping Forest Maxability The Royal British Legion ELHAP Misgav Oncourse Foundation Essex Community fund Barnardo's Orpheus Centre MusicAll Town Council of Loughton Mayors Appeal Race against Dementia Carers UK Kidney Research UK Open Road Chess Homeless Action for Children Age UK Haringey Law Centre Teenage Cancer Trust Blind Veterans UK Coopers Charity CIO Maggies Marie Currie New Directions Prostate Cancer UK ( Research Project) Royal National Institute of Blind People High Beech Church of England Primary School Music for my Mind 3Food4U Age UK Essex Cancer Research UK Children with Cancer Epping Forest Food Bank Phoenix Futures St Michael Church University of Nottingham Grants to Institutions: |
Total Total 2022 2021 £ £ 69,267 72,510 5,623 4,498 74,890 77,008 Total Total 2022 2021 £ £ - 1,000 10,000 10,000 5,000 10,000 20,000 5,000 10,000 10,000 10,000 10,000 10,000 10,000 20,000 10,000 10,000 10,000 10,000 10,000 5,000 - 8,250 7,750 10,000 10,000 10,000 5,000 5,000 5,000 10,000 5,000 10,000 10,000 15,000 15,000 10,000 5,000 10,000 10,000 10,000 10,000 - 10,000 10,000 5,000 10,000 10,000 10,000 5,000 15,000 5,000 10,000 10,000 2,500 2,500 5,000 10,000 10,000 10,000 2,500 2,500 10,000 5,000 - 5,000 2,500 2,500 10,000 5,000 5,000 5,000 15,000 5,000 7,500 2,500 12,500 5,000 - 1,000 10,000 - 5,000 - 5,000 - 5,000 - 10,000 - 5,000 - 5,000 - 1,000 - 391,750 274,750 |
|---|---|
Page: 18
The Joseph and Lilian Sully Foundation Notes to the Financial Statements
for the year ended 31 March 2022
5. Total Expenditure (continued)
| Governance costs | ||
|---|---|---|
| Audit fees | 9,900 | 9,150 |
| Prior year under/(over) accrual | 1,001 | (3,753) |
| Trustee expenses | 216 | 215 |
| Bank charges | 148 | 162 |
| 11,265 | 5,774 | |
| Total charitable expenditure | 403,015 | 280,524 |
| 6. Group tangible fixed assets Cost at 1 April 2021 and 31 March 2022 |
2022 £ 1,114 |
2021 £ 1,114 |
| Depreciation at 1 April 2021 and 31 March 2022 | 1,114 | 1,114 |
| Net book value at 1 April 2021 and 31 March 2022 | - | - |
| 7. Net income 2022 2021 £ £ This is stated after charging: External auditors: Audit fees 9,900 9,150 1,001 (3,753) Accounting services for Joseph Sully Holdings Ltd 22,934 23,295 8. Salaries and Wages 2022 2021 £ £ Wages and salaries 84,000 84,000 Social Security costs 5,152 6,167 Pension costs 1,253 1,253 Accounting services for Joseph Sully Holdings Ltd includes fees paid to the external auditors relating to accounting fees, tax compliance, payroll and other advice. The subsidiary has two employees (2021: 2) , both employees are directors of the company and trustees of the Foundation. Prior year under/(over) audit accrual |
||
| 90,405 | 91,420 | |
| Average number of employees | 2 | 2 |
The charity has no employees in the current or preceding year. The trustees of the charity are considered to be the key management personnel. 1 (2021: 2) trustee was reimbursed £216 (2021: £215) for travelling expenses.
The subsidiary has two 2 employees (2021: 2) , both employees are directors of the company and trustees of the Foundation. Their remuneration was as follows:
| J Mortimer PJ Timms |
2022 2021 £ £ 48,000 48,000 36,000 36,000 84,000 84,000 |
|---|---|
Page: 19
The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2022
| 9. Investment Property Fair value Brought forward Carried forward |
2022 2021 £ £ 1,800,000 1,800,000 1,800,000 1,800,000 |
|---|---|
The directors took formal advice from the managing agents of the property investments as to their open market value at 17 July 2020. The managing agents undertook a desktop valuation and based their valuation on their knowledge of properties as managing agents. This was not a full valuation in accordance with the RICS Appraisal and Valuation Manual. The valuation report included a 'material valuation uncertainty' as per VPS 3 and VPGA 10 of the RICS Red Book Global. A significant judgement has been included in the accounting policies in relation to this. The historic cost of the properties at the balance sheet date was £1,486,681 (2021: £1,486,681).
10. Debtors
| Other Debtors Trade Debtors Prepayments and accrued income Amounts owed by Joseph Sully Holdings Ltd |
2022 2021 £ £ 485,587 2,412 2,106 510 - - 23,815 8,406 511,508 11,328 Group |
2022 2021 £ £ 485,342 - - - - 6,267 5,979 6,510 491,321 12,777 Foundation |
|---|---|---|
11. Creditors: Amounts falling due in less than one year
| Accruals Trade creditors Grant creditor Other taxation and social security |
2022 2021 £ £ 31,706 28,858 8,121 1,276 20,000 20,000 9,052 10,529 68,879 60,663 Group |
2022 2021 £ £ 15,400 14,250 - - 20,000 20,000 - - 35,400 34,250 Foundation |
|---|---|---|
12. Creditors: Amounts falling due in more than one year
| Grant creditors | 2022 2021 £ £ 20,000 40,000 Group |
2022 2021 £ £ 20,000 40,000 Foundation |
|---|---|---|
Page: 20
| Year to 31 March 2022 £ £ £ £ £ £ Unrestricted Fund 304,909 553,077 (528,026) - - - 329,960 Transfers At 31 March 2022 As at April 2021 Income Expenditure Net investment gains Property revaluation |
Expendable Endowment Fund 16,044,422 485,342 (74,890) 266,167 - - 16,721,041 |
Total funds 16,349,331 1,038,419 (602,916) 266,167 - - 17,051,001 |
Year to 31 March 2021 As at April 2020 Income Expenditure Net investment losses Property revaluation Transfers At 31 March 2021 |
£ £ £ £ £ £ Unrestricted Fund 179,186 522,342 (396,619) - - - 304,909 |
Expendable Endowment Fund 13,630,840 - (77,008) 2,490,590 - - 16,044,422 |
Total funds 13,810,026 522,342 (473,627) 2,490,590 - - 16,349,331 |
The endowment fund is an expendable endowment based on the wishes of Mrs A H Sully, who died on 12 July 2015. Mrs Sully bequeathed the | residue of her estate to the Foundation as a further expendable endowment. | Transfers are made from the Expendable Endowment Fund where necessary to support the charity's grant making activity. |
|---|---|---|---|---|---|---|---|---|---|
At 31 March 2022 As at April 2021 Income Expenditure Unrealised gains Realised gains Transfers |
£ £ £ £ £ £ Unrestricted Fund - 330,959 (403,017) - - 72,058 - |
Expendable Endowment Fund 14,137,512 485,342 (22,923) 52,196 (4,154) (72,058) 14,575,915 |
Total funds 14,137,512 816,301 (425,940) 52,196 (4,154) - 14,575,915 |
Year to 31 March 2021 As at April 2020 Income Expenditure Unrealised losses Realised losses Transfers At 31 March 2021 |
£ £ £ £ £ £ Unrestricted Fund - 55,519 (280,524) - - 225,005 - |
Expendable Endowment Fund 13,836,625 - (20,305) 479,596 66,601 (225,005) 14,137,512 |
Total funds 13,836,625 55,519 (300,829) 479,596 66,601 - 14,137,512 |
The endowment fund is an expendable endowment based on the wishes of Mrs A H Sully, who died on 12 July 2015. Mrs Sully bequeathed the residue of | her estate to the Foundation as a further expendable endowment. | Transfers are made from the Expendable Endowment Fund where necessary to support the charity's grant making activity. |
|---|---|---|---|---|---|---|---|---|---|---|
The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2022
14. Analysis of net assets by fund a. Group
| Investments Investment Property Debtors Cash at bank Current liabilities Long term liabilities Total funds b. Foundation Investments Debtors Cash at bank Current liabilities Long term liabilities Total funds |
Unrestricted Funds Expendable Endowment Fund 31 March 2022 - 13,606,685 13,606,685 - 1,800,000 1,800,000 - 511,508 511,508 329,960 891,727 1,221,687 - (68,879) (68,879) - (20,000) (20,000) 329,960 16,721,041 17,051,001 Unrestricted Funds Expendable Endowment Fund 31 March 2022 - 13,938,365 13,938,365 - 491,321 491,321 - 201,629 201,629 - (35,400) (35,400) - (20,000) (20,000) - 14,575,915 14,575,915 |
|---|---|
15. Related Party Transactions
Included in debtors is an amount of £nil (2021: £6,267) due from Joseph Sully Holdings Limited.
During the year ended 31 March 2021, Coopers Charity CIO received a £5,000 grant from the foundation. P J Timms, who is a trustee of the Foundation, was also a trustee of Coopers Charity CIO at the time of the grant in 2021.
Page: 23