The Joseph and Lilian Sully Foundation Registered Charlty No. 1014823 Annual Report and Consolldated Financial Slatoments for the Year Ended 31 March 2023
The Joseph and Lilian Sully Foundation Contents page Pa9e Report of the Truslees Independent Audilorfs Report Consolidated Statement of Financial Activities Balanc6 Sheets 10 Consol¢dated Slalement of Cash Notes lo the flnancial $lalenwnls 12-23
The Joseph and Lilian Sully Foundation Trustees Annual Report for the Year Ended 31 March 2023 Reference & Administrative Details lal Name. The Joseph 2nd Lilian Sully Foundation Ibl Charity No.. 1014823 Icl Principal Office-. Floor 6, 9 Appold Slreel. London EC2A 2AP Idl Names of the Trustees on the dale this report was approved.. Peler Timms John Mortimer Alastair Collell Dionne Dixon Stella Murphy lappoinled 31 May 2023) le} The Governing document ol Ihe charity is the Trust Deed dated 25 Seolember 1992 as amended by deed dated 2 February 2002. 111 Principal advisers.. Independent auditor- Moore Kin9Ston Smith LLP Lawyers- BDB Pilmans LLP Investment managers - Quilter Cheviot and Rathbones Bankers- HSBC UK Bank plc 191 The objects ol the Charity are as follows.. 1 } the relief of suffering, distress, disease and poverty among children and the prov1sion ol education. assistance for children. their families and their communities.. 2} the conservation and other aclivilies lor the preservation of Epping Forest as a public amenily.. and 3) lo support such other general charitable purposes as the Iruslees may in their absolule discfelion delermine. Explanatlon of the work of the Charity, grant awarding poli¢y and future plans The Charity, alihough sel up in 1992 only became adequately funded after the dealh of Lilian Sully ir12015. 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 IOOVO of the shares in the family investment company. This company is now a subsidiary of the charity and has funds of £4.4 million compnsing Investments that are managed by Investment advisors and 2 commercial properties. During the year inveslments lo the value of £3.966.168 were Iransferred from the company lo the charity. The charity regularly receives appeals for assislance which. if (he appeals are within its object5, are considered and. if approved, sums are donated. A major grantee ol the charity Is Volunlary Action Epping Forest IVAE Fl which helps older people in the area in numerous ways. VAEF is a beneficiary of 5ubslanlial grants from the Lollery Fund and this charity commilled in 2020 that support will continue lo be forthcoming for the next 5 years of al least £20.000 per annum In this year the charity gave £500.000 to support an Initiative by Alzheimer's Research UK and Race against Dementia lo recruit an eady career researcher wilh Page 1
the aim of finding a breakthrough into the treatment conlainrnenl of the disease. A Dr. Jake Brooks was recruited who is based at Warwick University. In pursuit of its charilable objectives several payments have also been Tnade to other individual charilies 2nd organisations who provide direct benefit lo the wider public. Details of gr8nls Tnade are shown in note 5 lo the financial slalemenls All decisions are made by the Iruslees 2nd il is Ihey who decide which grants shoLJld be awardeii primarily Ihrough meetings held throughout the year. The long term slralegy, and hence the plan for the future. is lo continue making payments of an amount possibly greater Ihan the Investment Income of the charity within the objects as defined by the Trust Deed. The Trustees have had regard lo Charity Comm15sion guidance on public benefit Including the guidance 'public benefit running a charity {PB21.' when reviewing the aims and objectives and In planning the future activities of the d)arity The charily does not undertake fundraising aclivilies. Reserves Policy The policy of the Trustees towards reserves of the Foundation is Ihal any parl of the capital or income of the charitable funds which may not for the lime being be immediately required lor the purposes of the Foundation may be invested by the Trustees li Is the intention of the Trustees to sustain lunds al a level which will provide suflicient Inveslmenl incorne lo cover the level of donations paid and cover Ihe management and adminislralion costs and be also able to respond lo any emergency applications which may arise. As all the funds in the charity are an expendable endowment the trustees do not consider il necessary lo identify a particular level of free reserves. Al 31 March 2023 the charitable group had expendable endowment funds 01 £15.337,639 Financial Review and main aehievements The charity generated nel loss in the year of £796. 74812022 Income of £435 5031 and had nel investment losses of £916.61412022 gain of £266.1671 Grants awarded In the year were £1,005.00012022 £391.7501. As well as the setting up ar) early career researcher for Alzheimer's at a cost of £500.000 the charity has also bought a vehicle for a local food bank al a cost of £35,000 to enable the free food charity to comply with the new ULEZ policy In the whole of Greater London. Inveslment Policy The aim of the charity s Inveslrnenl policy Is to produce a mix of income and capital growth lo balance the needs of cuirenl and fulure beneficiaries. with a moderate risk profile Of the £1 037.428 cash at bank shown in the balance sheet some £359,286 Is with the investment advisors waitsng to be Inve51ed. Risk Management Although the charity does not currenlly maintain a risk register. the trustee5 consider the principal risks lo the achievement of the charity s obieclives al each eeling. The main risk Is an unexpected drop In the level of Investment income leading lo a requirement to curtail the charity's grant awarding programme. This is Page 2
miligaled by the management of the investment portfolio by professional investment managers base(i on a moderale risk profile. Related parties The Joseph and Lilian Sully Foundation ha5 one wholly owned trading subsidiary., Joseph Sully Holdings Limited, which generates income from two renlal properties and an investment portfolio Joseph Sully Holdings Limited dislribules ils taxable profits to the Foundalion. There are occasionally olher relaled party transactions entered into knowingly by the Foundation and details of these can be seen in note 15. Trustees - Induction and training The Trustees have acted as such for a number of year5 and are well aware of the responsibilities of their role and of it5 Imporlance. The Trustees review the accoun15 annually and lake advice from Mooie Kingston Smilh LLP who act as independent auditors for the charity. Truste&s- Golng Concern The financial slalemenls have been prepared on a going concem basis. The Iruslees have assessed whether Ihe use of Ihe going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the entily lo conlinue as a going concern. The trustees have made this assessment lor a peri(Kl ol al least one year from the dale of approval ol the fnanCIal statements. The Iruslees conclude there Is a reasonable expectation that the Foundation has adequale resources and unreslricled reserveslcash balances lo continue in operational assislarnce for Ihe foreseeable future. The Foundation therefore continues lo adopl the going concern basis in preparing Its linancial slalemenls. 10. Statement of Truslees Responsibilities for the Financial Statements The Trustees are responsible lor preparing the Trustees Report and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards {Uniled Kingdom Generally Accepled Accounting Practice). The law applicable lo charities in England and Wales requires the Trustees lo prepare financial slalements for each financial year which give a true and fair view of the slate of affairs ol the Charily and the reSOurS and application of resources, induding income and expenditure for that period. In preparing those financial slatemenls the Trustees are required to: Select suitable accounting policies and then apply them consi8lenlly.' Observe the methods and principles in the Charities SORP". Make judgments 2nd estimate5 that are reasonable and prudent.. Stale whether applicable accounting slandards and statements of recomrnended praclice have been followed, subject lo any departures disclosed and explained in the financial slalemenls.. and Prepare the financial slalements on a going concern basis unless il is inappropriate to presume Ihal the Charity will continue in business. In so far as the Trustees are aware". Page 3
There Is no relevant audit information of which the charitable company's auditor is unaware. and The Truslees have taken all steps Ih21 they ought lo have taken to make themsèlves aware of any audit informatson and lo e51ablish that the auditor 15 aware of that Information. The Trustees are responsible for keeping proper acnting records that disclose with reasonable accuracy al any lime the financial position of the Charity and lo enable them to ensure the financial slalemenls comply with the Charity's Seiilemenl Deed, the Charities Acl 2011 and the reviewed Slaternent of Recommended Praclice - Accounting and Reporting by Charilies ISORP 20151. The Trustees are also responsible for safeguarding the assets ol the Charity and hence for taking reasonable sleps for the prevention and detection of fraud and other irregulanties. Approved by the Trustees and slgned on Iheir behalf by.. Trust••: John Mortimer Datè: 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 lor the year ended 31 March 2023 which comprise the Group Slalemenl ol Financial Aclivities. the Group and Parpnl Charitable Foundation Balance Sheets. the Consolidated Statement ol Cash Flow5 and notes lo the financial stalements. Including a summary of signilicant accounting policies. The financial rcporting framework Ihal 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 Ihe UK and Ireland (Uniled Kingdom Generally Acceptod Accounting Praclicel. In our opinion the financial slalomonls.. give a true and fair view of Ihe slate ol the group's and the pafenl charitable foundation's affairs a5 at 31 March 2023 and of Ihe group's Incoming iesoufces and application ol resources, Including the Income and expenditure for the ycar then ended." have been property prepared In accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in aCCordare with the requiremenls of the Charities Act 2011. Basls for opinlon We conducted our audit in accordance ¥Mth Inlernalional Standards on Auditing IUKI IISASIUKII nd applicable law. Our responsibilitses under (hose 51andards are further described in Ihp Auditor's Responsibilities lor the audit ol the financial stalemenls section of our report We are independent ol the charity in accordance with Ihe ethical requirem8nLs that are relevant 19 our audit ol the financial slalements In the UK. Including the FRC s Ethical Standard, and we have lullillod our other ethical responsibilities In accordance with Ihese requirements. Wo beliuvc that the audil evidence we hclvc oisiained is Sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the linancial slalemenls. we have concluded thal the Ifuslees, use of the going Concern b<lSlS of accounling In the preparation of Ihe financial slalemenls Is appropriate. Based on the work we. have performed. we have not Idenlilied any material un[lainI1eS relating lo events or conditions Ihal individually or collectively. may cast signilicanl doubl on the charitable company's abilily lo continue as a going concern lor a period of al least e1ve months from when the financial slalemenls are authorised lor issue. Our responsibilities and the responsibililics of Ihe Irusteos wth respect lo going corrn are described in the rpie.vanl sections ol this report. Other information The other information Comprises Ihc inlomalion included In the annual report. other than the financial statements and our auditor's report Ihefeon. The Iruslees are responssble for the other Information. Our Cjpininn on the financial statements does not cover the other Information and. except to the exienl otherwise explicitty staled in our report, we do nol express any form of assurance conclu510n Ihefeon. Page. 5
Independent Audilor's Report to the Trustees of The Joseph and Lilian Sully Foundation In connection wth our audrt of the financial statements, our responsibilty is to read the olheT Information and, in doing 50. conther whether the other Inlormalion Is malerially incon51slenl with the financial slalemenls or Dur knoedge obtained in the audit or olhemse appears lo be materially misstated. 11 we identify such material inconsistencies or apparent material misslatemenls, we are required lo determine whethei there is a material misstatement in the financial slalemenls or a material mi5Statemenl of the other inlormabon. If. based on Ihe work we havt) performed, we concludc Ihal there is a fflalerial misstalemenl of this other information. we are required to report that fact. We have nothing lo report In Ihis regar(l. Matters on whlch we ar• r•quired to report by exception We have nothing lo report in respect of the lollowing matlers where the Charities Act 2011 requires us lo report lo you If, in our opinion". the inlormalion given in the Trustees, Annual Report is inconstslenl in any material fespecl with the Iinancial slalements". or the charity has nol kepl ¢idequale accounting COrds.. or the financial records arc not in agreemenl with the accounts.ng records and returns.. or we have not rcc?ived all the Inlomiaiion an¢J explanations we required for our audit. Rosponsibllltles of trusteos As explained more lully In the Iruslee$' responsibililies stalemenl the Iruslees are responsible lor the proparalion ol the financial 5t318menls and lor being salislied that they give d true and lair view. and lor such internal conlrol as the Irusleos determine Is necessary lo enable the preparation ol financial stdlemcnls Ihal are free from material misslatemenl. whether due lo fraud or orror. In preparing the linan¢ial slalemenls. Ihe Iruslees are responsible lor assessing the charity's ability io continue as a going concern. éisclosing. as applicablc. mattors relaleé lo going concern and using the going concern basis ol accounling unless the trustees either intend lo liouidale the Charity or lo ceaso operations, or have no realistic alternaiive bul lo do so. Auditor's responsibilities for the audit of the financlal ytatements We have been appoinlcd as auditor und?r seCtn 144 01 the Charities Act 2011 and report in accordance with regulations made untjer 5eelion 154 of that Act. Our objectives are lo obtain reasonable assurance aboul whether the financial statements AS a whole are free from malcrial misslalemenl. whether due to fraud or error. and lo issuc an auditor's ieport that includes our opinion. Reasonable asstjrance Is a high level of assurance, bul is not a guarantpg that an audit conductcd In accold<in wth ISAS IUKI will always delecl a material mi8slalemcnl when Il exists. Misslalemenls can arise from fraud or error and are considered material il. Individually or in aggregale. they could reason(Ibly be expected to influence the economic decisions ol users taken on the basis ol these financial statement%. Irregularilie5, including fraud. are instances of non-compliance wlh laws and regulation5. We design procedLJres in line with our rp.sponsibilities. oullinod above. lo delect material mis5talements in re8pect ol irregularities. including fraud. The extent to which our procedures Page.. 6
Independent Auditor's Report to the Trustees of The Joseph and Lilian Sully Foundation Explanation as lo what extent the audit was ¢onsidgred capable of detecting Irregularities. including fraud The objectives ol our audil in respect of fraud a", to identify and assess the risks ol malerial misstalemenl ol the financial slatemenls due lo fraud" to obtain sufficient appropriate audit cvidentye regarding the assessed risks ol material misslatemenl due lo fraud. Ihrough designing and implementing approprialc responses lo Ihose assessed risks,. and to respond appropriately to instances ol fraud or su5pecled fraud identified during the audit. However, the pnfflary responsibility for the prevention and detection of Ifaud rests wlh bolh management and those charged with governance ol ihe charity. Our approach was as follows". We oblained an urnderslanding ol the legal and regulatory requiremenls applicablL. lo the charily considered that the mst s1gnifinI are. the Charitie8 Act 2011. th8 Charity SORP. anrt UK financial reporting slandar¢Js as issued by the Financial Reporting Council We obtained an underslarwjing of how Ihe charity company complies wlh these requirernenls by discussions wilh manaqemenl. Wc assesscd the risk of material missialemenl of the financial 5talemenls, including the risk of material mi5Statemen( due to Iraud and how rt rn1 occur. ty hokling discussion5 with management. We inquired ol management and those charged wlh govemance a8 to any known instances of non-compliance or suspecled non-compliance wlh laws and regulations. Based this understanding. we designed specific appropnale audit procedure5 10 idcnlify Instances of non-compliance wilh laws and regulalions This Inclv¢ed making enquiries of rnanagcmenl and obtaining addilional corr0ratIVe evi(Jenco as required. As part of an audit in accord<incc with ISAS IUKI we exercise professional judgemenl and maintain professional sceplicism throughout Ihe audil. Wc also.. Identify and assess Ihe risks ol malefk81 misstatement of ihe finaneial stalpmenls, whether dup lo fraud or error, destgn and perform audil procedures responsive lo those risks. and obtain audit evidence that is sufficient and appropriate lo provide a basis lor our c)pinion. The risk of not detecting a material misstalemcnl resulting from Iraud is higher than lor one resulting from error. as fraLKI may Involve collusion. foryery. intcnlK)nal omissions. misrepre5enlalions. or the override ol internal conirol. Obtain an understanding of internal Gontrol relevant to the audil in order to des1gn audit procedures that are appropriate In the circumstances. bul not for the purposes ol expressing an opinion on the effecliveness ol the charity"5 Internal control. Evaluale the ¢lPPfoprialencss ol accounling pnli¢ies used and the reasonablenes5 01 accounting estimatcs and related disclo¥urcs made by the tiuslees. Page.. 7
Independent Auditor's Report to the Trustees of The Joseph and Lilian Sully Foundation Conclude on the appropiialeness of the Iruslees, use of the going concern basis of accounting and. based on the audit evidence obtained. whether a material uncertainly exists related lo events or conditions that may cast signrficanl doubl on the charity's ab111ty 10 continue as a g(Jing concem. 11 we conclude thal a material uncertainly exists, we are required lo draw attentn in our auditor's report lo the related disclosures In the financial statements or, If such disG105ures are Inadequate. lo modily our opinion. Our conclusions are based on the audit ev¥Jen obtained up lo the date of our audrtor's report However. future evenlb or conditions may cause the charity lo cease to continue as a going concern. Evaluate the overall presentation, slruclure and conlenl ol the financial statements. including the disclosures, and whether the financial slalements represent the underlying transactions and events in a manner that achieve% fail presentation. We communicate with those charged with govemance regarding, among olher matters, the planned scope and timing ol the audil and significant au(Jit f1ndings, including any significant deficiencies in internal Control that we identify during our audit. Us• of our report This report is ma(Je solely lo the charity's truslees. as a LyJdy. in accordaneo wlh Chapler 3 of Part 8 01 the Charities Acl 2011. Our audit work hds been undertaken so that we miahl slalp. to the charity's Iruslees Ihose mallers we are required lo slate lo them in an audilof's report and for no olhor purFiose. To the fullest exlenl permitted by law. we do not accept or assume re&ponsibilily lo any party olhor than the chaiity ané charily'5 trustees as a body, for our audll work, fcjr this report, or for the opinion we have formed. trlkirL (JF 9 Appold Slrccl London EC2A 2AP Dale.. Moore Klngston Smith If ULJ Moore Kingston Smith is eligible lo act as auditor in temis of Section 1212 of the Companies Act 2006. Pag8. 8
The Joseph and Lilian Sully Foundatlon
Consolidated Ststemenl of Financial Activitias
for the year ended 31 March 2023
Exp•ndable
Unreslrithd Endowment
Funds
Funds
Total
2023
Total
2022
Note
Income and èndowments from-
Donations and legacies
Investment Income
485,342
553,077
447.832
447.832
Total
447.832
447,832
1,038.419
Expendllure on..
Raising funds
Invesim8ni managem8nl fees
Tradin9 tsubsidiary costs
56.788
56.788
129.597
74,890
125,011
129.597
Chorit•bl• o¢livili••
Grants awarded &
The Joseph and Lilian Sully Foundatlon Balancè Sheets as at 31 March 2023 Group The Joseph and LllSJn Sully Foundatlon 2023 2022 2&23 2022 Flxed assets Invesimenls Invgslmenl Property 12.580.0 13.606.685 1.780.OLKI 1.800,0 15.100.255 13,938.365 Current assets Debtors Cash al bank 10 27.543 1.037.428 1.064.g71 511.508 1.221.687 1.733.195 8.990 267,19J 276,185 491.321 201.629 692,950 Crèdltorg.. amounts lallirvJ due in less thèn one year 88.879 38.796 35.400 Net Curr•nt Assèts 976,486 1.864.316 237.389 657.550 Crodltors amounts falling due In more than one year 12 120,0001 120,0001 Total A8¥¢t$ Less Total Liabllities 15.336.582 17,051.001 1 5.337,644 14 575,915 Total Net Assets 15.336,582 17,051.001 15,337,644 14,575,91 S Funds Unreyirieled InCOff fund 13 329.960 638.236 Expcn(J#ibl¢ En¢Jowrneni fund 13 15,336.582 16.721.041 14.699 408 14,575.915 Total Funds 1 S.3J6.582 17,051,001 15,337,644 14,575,915 The financial stat8 were signe approved by Ihe Trusle6s and aulhorised for issu¥ on
nd
Trustee.. P J Tru51eè". J Mortimer Charlty No. 1014823 Page. 10
The Joseph and Lilian Sully Foundation Consolidated Statement of Cash Flows for the year ended 31 March 2023
| Net cash (used in) operating activities (note a) Cash flow provided by investing activities Dividends and interest from investments Fund manager fees Payments to acquire fixed asset investments (8,112,537) Proceeds received from investments 8,221,455 Net cash used in capital investment transactions Net cash provided by investing activities Change in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year (note b) a. Net cash from operating activities Net (expenditure)/income Adjustments for: - Net (loss)/gain on investments - Dividends and interest from investments - Fund manager fees - (Increase) / decrease in debtors - (Decrease) / increase in creditors Cash flow (used in)/provided by operating activities b. Cash and cash equivalents at year end Cash held in operational bank account Cash held within investment portfolio (note c) Cash and cash equivalents at year end 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 Cash held in investment portfolio at 31 March |
2023 £ (684,221) 447,832 (56,788) (1,129,778) 1,395,523 108,918 499,962 (184,259) 1,221,687 1,037,428 2023 £ (1,714,419) 937,671 (447,832) 56,788 483,965 (394) (684,221) 2023 £ 678,142 359,286 1,037,428 2023 £ 507,359 291,548 (2,107,259) 2,000,000 (332,362) 359,286 |
2022 £ (554,648) 553,077 (74,890) 265,745 743,932 189,284 1,032,403 1,221,687 2022 £ 701,670 (266,167) (553,077) 74,890 (500,180) (11,784) (554,648) 2022 £ 714,328 507,359 1,221,687 2022 £ 566,497 180,047 13,696 - (252,881) 507,359 |
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The Joseph and Lilian Sully Foundation Notes lo thè Financial Statements for the year Ènded 31 March 2023 1. Accounting Polkles al Basis of preparation These financial stalemÈnls are prepared on a goiThJ concern basis. un¢eT the historical cost convention iodified lor Ihe revaluation of Investment assets to their market value al Ihe balance sheet dale_ Th8 financial slaiemen15 hawe been prepared in accordance wilh Ihe Financial Repofling Standard applica0 In the UK and Republic of Ireland IFRS 1021. Tho ¢harily is a public benefil enlily ltsr th8 purposes of FRS 102 and therefore Ihe chaniy prepares Ils financial Slalements in a¢cordÉince with Ihe Slaiament of Recommended Practice apable 10 charilies preparing their accounts in ac¢ordanr.e wilh the Financial Reponing Standard applicable In Ihe UK and Republic of Ireland (The FRS 102 Charities SORPI and the Charities Act 2011. The ¢$011318d s'.alemenis comprise Ihe financial statements of Ihe Joseph and Lilian Sully Foundation and Its irading 5ub5idiary Joseph Sully HokJiThgs Limiied. The financial statements are prepared In sterling. which is the func1141 ¢urrency of the Group. Monetary afflounls in these financthi stalernenls are foJn(Jed lo Ih8 noa$1 ptyjnd. The Charily Is a Public 8onefii Entily as defined by FRS 102. The wnsolidaled financial slatemepis compnse Ihe fvnancial siaiernents of the fobndaiion and ils trading gubsidiary'Jo8eph Sully Holdin9s Lirniied. Company Numbp.r 01276378 maae up 10 31 2023 Th8 total Income expandilure ol these enlilies 1$ shown In Ihe Siaiernenl ol Financial A¢.Iivi11851 SOFA'I. Tha 51alements are crin8olidaled an a line by line basis The Foundation has taken advaniag8 01 Ihe oxerTTrplion from disclosing Ils Individual SOFA Tha FtAJndalion onty surplu5 (net movement in lund51 was £781 731 12022 £438.4031 bl Going con¢¢rn The finariLiJl 51atements have been pr8par¢d on a going concÈm basis There ar8 nts material unc8rtainlies aboui lh8 ¢ompaiiy'5 ability lo conliiiue a5 a going cmcern The Iruslegs have assèss&e wholho. Ihp. use of the going concern Dasis Is appropriate and hdve coritsidÈied p0551ble events or condition5 that might cast siqnilic£nl cjoubi on the ability of Ine enlrtylo coniinue as a wing conc The Iruslegs have rnade this ass8ssment for a period ol al lo851 one yoar from Ihè dale of aoproval of ltte financial staiemttiils. The trustee5 conclude there Is a reasonable expeciaiion Ihal Ilie Foundation adequafe resources and unrcsiricl8d resefveslcash balances 10 continue In op8ralionai &xisiepce lor Ihe loresooable fJlure. The Foundation therefore continues to adopt the gtyng conce'n basis in preparing ils Iinancial siatenienls. el Expgndtture and its basis of allocation Exp&ndi'.ure Is Included in Ihe Slal*menl of Financial AclNities an atewuals basis. indusivè ol any VAT which cannol be recovered. Expencilure Is recognise(J once there is legal or consiruclive obligalion ID Iransfer econornic henelil lo a third party. il Is probablè that a Iranslèr of economic bellefits wll be rcqui¥8d in selllerllenl and the amouni of the oblig31ion can be measured reliably Page 12
The Joseph and Lilian Sully Foundatlon Notes to the Financial Staternents for the year ended 31 Mar¢h 2023 1. Accountin9 poli¢ies cl Expenditure and its basis of allo¢ation Icontinuedl Expenditure include5 direct r.(J515 01 aclivilies and those ¢osis of an indirect natufe necessary lo support those activities. Grants are reccgnised when the retipieni has been notsf of thÈ grant awarded. dl Income Donations and legacie5 are recognised when there is evidence of oniiU&m8nl, ihe receipt is probable and the amount can be Tnea5ured reliably Dividends are recognisee wh8n the charity Is entitled lo the incotne Rental Income in relalion lo the Invtsslmenl propertl85 held by Ihe subsidiary 15 ieccgnised once the payment becomes du8. All incorTTe 15 recognisee nèi of VAT. el Investment properti•* Inv85tmenl property, which Is pr¢Jperty lo earn rentals anélor foT capital appreciation. is Initially recogriised ai cost, which includ85 the purchase Cost and any directly aitnbulable expenditure. Subsequently il Is rneasured at fair value al lh8 reponing en¢ dale. The surplus or doficil revaldalion Is re¢ognis8d In the Statement of Financial Aciivilies. n Tanqlble flxed assets Tangible fixed assois are Initially rnea5ur8d al cosl and subsequenlly rneasured al cost nel ol depr8calinn and any Impairment losses D8preciaiion is iecognised $0 as 10 wrilc om Ihe cosl ol vaiuaiion ol assets le5S their residu81 value5 Olh&r Ih8ir uselul lives on the lollovthng bases. Cvmpuler equipment 3 ar$ sirai9hl line gl Taxatlon The charity has sullered no Idx charge. as il Is nol 8ubiecl lo UK Corwai on lax on Ils char,iable aclivilios. No Iièbilily la CLirrenl or delerred tax In Is C$14 n8cessary In the tra¢ing subsidiary as Ihe dirociofs havè resolved lo make chariiablè donaiions eouivalonl lo the taxable piofils lo Ihe Foundation h) Cash and Cash Equivalents Cd5h and cash equivalenis include cash at banks and In ha and short tefm deposits th a malufily dale of thrèe months or less. 11 Fund ac¢ountlng The unreslricled income lund Is for Ihe obje¢lives ol lh& chafrty wilh<)ut furthw spgcified purpose. 8vailable as general funds The endowment fund reprèsents expendable capilal funds wh¢h have been bgouealhed or donated lo th charity. Translers arc rnadc to the unreslricle¢ In¢ome fund when necessary to supporl the charitable expenditure. Page 13
The Joseph and Lilian Sully Foundatlon Notes to thè Financial Statements for the year ended 31 March 2023 jl Financial Instruments The Group has elected lo apply Ihe provisions of Section 11 'Basic Financial Instruments. and Sectson 12 'Other Financial Instruments Issuès, of FRS 102 to all of ils financial instruments Financial Instruments are retognised In the Foundation company balance sheet whan the Foundation or company becorres party to the contractual provisi¢$ ol Ihe in5trumenls. Financial assets and liabilities aTe olf5et. with the net amounts presented In ihe financial staternenls. when Ihere is a legally enforceable righl lo set off the re¢osnised amounts and there Is an Intention 10 settle on a net basis or lo reali58 the assei and settle the liability Simullanaously. 88si¢ fjn•ncial Assets 885ic financial assets. which Include deblors and cash and bank ba13nce5. are Initially measuied ai Ir8n53clion price Including Iransa¢liN costs and av• subsequently Carried ai arnortised cost using the effective Interest melhtsd unless the arrangemèni conslilules a finanong Iransaciion. where Ihe transaction Is rneasured al the present value of the future receipts discounted at a market ralc ol Interest Financial assets classifiett as rÈt*ivable within one year are not amorlised Listed invesimèn15 are a ba&c finarncial 9S581 and are accountèd according to Ihe p(4Y oullined In nole 11 8881¢ lin•ncial li•bilities 8asic financial liabilitiès In¢luLling Credi1$. bank loans. loan8 from fell¢)w 9r¢)up cowpanies and pr¢for¢n¢e sharos Ihal are classified as debt. are InitllY rèeognised al liansaciion price tsriless tho arrangewonl conslilules a IinaTILing Iransaciion. whore Ihe debt Instrument Is measured al the present value ol Itt8 fulur8 p8ymenls discoun18d al a marke¢ rate ol Inierest. Financial liabilities claSsifd as payab Thin one ar are not amortised Dobt inslrumenls are subsequently carried at amornsed cosi. u&ng the etteclivè inièr¥gt rate rnethod. Trad9 creditors are obligalions to pay goods or services Ihat havo been acquired in thè ordinary cours• ol bu%ing5s from suppliers. Amounts payable are classified a5 cufTeni Iiabililies If payment Is duo within one y8ar or less If not, Ihey are piesenlpd as non-currenl Iiabiliiies. Trade creditors arè recognised Initially ai Iransaciion prKe and subsequwiiy mèasured ai amortise(J eosl using Ihe effeciive Inleresl method kl Equity instrumonts Equity Insirurnen15 Issued by the company are recorded al Ihe proceeds Teceived. nel of direct issue cosls. Dividends payable on equily Inslrvmenls are fecognised as Iiabilitses once they are no longer at the discretion ol Ihe company. Page 14
The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2023 1. Accounting poli¢i•s 11 Investments Investwent are slate¢ at market value ralheT than al hislorical cosl Any UnalISed or realised gains or losse5 arising from this policy are disc105ed in the statement of financial activities. ml Critical accountlng o$limates and aroa5 of judgement Eslifflates and judgements are continually evaluaied and are base(J on hislorical expenence arKJ other laclors, Including expeclaliop5 of future evenls and are believed 10 be reasonablo under the circumstances, as follows. Valuation of investm•nt proporty The carryng value ol the mveslmenl property as ai 31 March 2023 Is based on (i valuation carTi8d out by Ihe Foundation's property rnanagers Slrellon5 Limi113d in July 2020 subsequenity adiusied for due to Ihe sale of the property <iflvr tho year end. For Ihe July 2020 valuations. the Inwèsimenl properties were not inspected a5 pari of th6 valuaiion and as such lh8 valuaiion ha5 not been prcpared In a¢¢ordance with the fioyal Instilullon of Chartered Surveyors IRIC.Sl Valuation - Global Siandaids. Incorporating the Initsrnalional Valuation Standards IIVSI 2017 IThe Rert Bookl. The valuaiion was rnade on an open market basis drawing upon comparable markel Iransaclions ol mosl relevance As a iesuli ol Ihe oulbreak ot Covid-19 and uncertainly in th8 property se¢lor IhÈ report included a 'maierial valuation uneertainirf as per VPS 3 8nd VPC?A 10 of tho RICS Red Book Global. 21 Results from subsldiary The Joseoh and Lilian Sully Foundation has one %tholly ¢)wned Irading Sijbsidiary. Joscph Sully Holdings Limited. which genera185 Inccwno from fft rental proportlC8 and an inveslmenl portlolio Joseph Sully Holding8 Limited disiribijies Ils taxable prolils to Ihe Founealion. The regisiered office ol the sub$i(Jiary is g Appold Slreel. London, EC2A 2AP Unaudiled financial siaiemenls the 5ub5idiary are filed annually with the Fiegistrar ol Companies. A summary ol Ihe r85ullS ol Joseph Sully Holding5 Limited for 2023 and 2022 are deldil6d on Ihé n•xl pa98. Page. 15
The Joseph and Lilian Sully Foundation Notes to the Flnancial Statemants for the year ended 31 March 2023 21 Results frorn $ub$idlary Iconlinued} Prollt and Loss 2023 2022 Turnover Adminislralive expenses Qperaling profil 335.905 1172,134 163.771 492,118 1176,9781 315,140 Decrtsase In fair value of investment property ILossllProfil on dispos81 of listed inyeslrnenls Iransferred IO Ihè Foundabon ILossllProfil on revaluat#)n ol listed Investsnents measutyd al lair value Proflt bofor• taxatlDn 120.0001 1754.Dg11 181.7021 93,888 124.237 1692,0221 533.265 Taxalion Not result 1692,0221 533,265 Dislnbution to tho Foundaknon 5 530 672 270 000 Balance Sh••t Flxed Asset8 Investment properties Investments 1.780000 4,408,807 6. 188,807 1.800.000 10.343.831 12.143.831 Curr•nt A58ets Deblar8 Cash and cash •quiV•nIS 18.553 770.233 788 786 20.187 1020 058 1,040,245 Creditors anxiunt falling due within onè year 149.6891 133.4801 Nèt Current Ass•ts 739 097 1,006,765 Total ?$sets le8$ total liabilitles 6.927.904 13.150.596 Capltal and Reseryes Ca118d up Share caprtal Revaluation Reserve Capital redemption reseThe Retained eafnings 1.000.000 313.319 3.900.100 1.714.485 1,000.000 313.319 3,900,100 7.937, 177 Total equity 6.927 904 13,1,596 During the year the subsidiary company transferred cash and Inveslments lo the ¥aiue of £5.53D,872 to th• Foundation 12022 £270.0001 Page. 16
The Joseph and Lilian Sully Foundatw)n Notes to the Flnancial Statements for the yeaf ended 31 Mareh 2023 3. Invostment incomF- yroup Expgndablo EndowrnBrrt Funds UNo¥tri¢ted Fur¥Js T¢Jtal 2023 Year to 31 March 2023 In¥0Stment income Dividpnds and bank Inl£rtrsi Ren'.al IncDme 303.104 144.728 303,104 144.728 447.YJ2 441 BJ Exwndabl• Endowmonl Funds Unr08trictod Total 2022 Ye•r ¢0 31 March 2022 Invostm•Tht Incom• Oividends and bank Ini&iest Rtnial Income 411.271 141.806 411.271 147.806 553 077 553.077 4. Fix•d A8801 InwJ6tm•nt¥ Group 2023 2D22 Market value at 1 Apni 2022 Addi15 Uisposai proceeds IL05¥11gdin on Fixed asset Inv•51rneni$ l3,f.85 8 112.SJ7 18.3?1.4551 13.606,263 1.129,778 11,395,523) 266,167 Mark¢t value ai 31 March 2023 12 580.096 13606685 Hi51ori¢ cost ol Inve4lmenls off Ihp Group 134U5 112 11.345487 ma8t ¥4luv of invtrstrnènts by lypo fov the Group 2023 2022 UK li$ied Invoslmenis Offshore bo1$ 12.520,071 13 546.660 12580096 1..1 bDb 685 Signlflcant In¥•ment holdlngs lor the Group b88ed on m•rkel v4u& ai 31 March w•ro: There were no Sn1C8n hokjings ai 31 Marth 2C23 or 31 March 2Q22 b. Thg Josqph and LillaTh Foundation 2023 2022 MackBI v8lue al 1 April 22 Ade lions IinG Jdiffj Iransfeis ffLXP subsidiary) Disp0581 proceed5 Unr¢alisec ga n Reaiiseu 1055 3.2e2.852 9.821,621 14.lJ31.3011 39.416 3.186.375 251 19? 1222.7571 52,196 Market value al 31 MaTch 2023 8.172,3S1 3.262.852 Investment In SubsKJiary ilat fair valuv on acqn} Less unrealised 1055 10 revalue lo nel a55els ol subs18 10.875.513 I3.747.9) 10.675.513 15,1CpJ.255 13,938,365 H15torit=osl Inves•meryts of the FourKJabon (excludij Iradiry 5ubsi¢iaryl 5. Total Expenditure 8.752.830 3 OQ4 983 Page 17
The Joseph an41 Lilian Sully Foundats"on Notes tc+ tho Flnancial Statements lor the y3r ended 31 Marth 2023 Total 2023 Total 2022 Raising funds Investrent mana9einent foes Property Managemen". fees 50.643 69.267 56.788 74.890 Charllablo act111•$ Gr3n15 to Insblulr. Total 2023 Totsl 2022 Action for Chihttr8n 3Food4U Age UK Age UK E55ex A12heimers Resèai¢h UK Baryardos Blind Veleranh UK Cancer Resoarch UK CarÈr5 LJK Chess HDrnele55 ChIren with Cancer ClTrilJi#n with Cancer UK CRISIS UK ELHAP Eppirg Forest Frttjo Bank ',y FoJndalion Grcal Omiond Slreei Fknspiial Haringey Law Centre High Beech ColE Piimary Sth)ol Holy InnoLrII% Chul KrnoV Rc5carch UK M3cmillan C8nc8r Supwrt Magg e5 Marie Currie 2.500 45.000 2,500 10.000 5,OOQ 5,000 20.DCO 10.DOO 10,D 5.DOO 10, 10.000 5.000 5.000 10,OVO 5.000 10,000 15 000 10.oc 10.0 12 500 ?o.o 10.000 10.OQKI 2.500 10,000 10,000 10,000 10,000 5,000 5,000 S,OC¥) 10.000 15.000 10.OOD 5.000 S.OOD 15,000 10.000 10,000 7.500 10,0 5.000 2,500 10.QOO 1,000 8,250 540.000 10.000 10.000 10.000 10,0 10,000 10,000 10,000 10.0Tr) 10.oc 200 Ic.ofMJ 10.0Tr) s.o 10.000 10,000 10,0 7,500 10.OIXI 10.ODO 10.000 10.0( 30.0 MisglV MuslcA.I New Directions NSPC FUu1tn NSPCC l ouqhlon Branch On CouryÈ Foundat Open Roa Orpheus PdfkinSOnS Research UK Ph()v.nix Futures Prosiale Cancer UK RÈce Against Demerylia Royal 8Tilish Legion 10.0 20,OOCI 20.COD 10, 11.000 10.0(K) 10.000 20.00? 10.00? 7.500 20.000 Sl Clare Hospice Sl Michael Church Teenagp Canr Trust The Salvation Army UniveTsily ol NolliryhAm Volunta? ActKD Epping Forest VAEF JJbilee Lunch VAEF Cl¥islrnas LUrh 5.000 10.OOD 5.000 3.OOD 3.500 005 oon Page 18
The Joseph and Lllian Sully Foundation Notes to the Flnancial Statements for the y8ar endod 31 March 2023 5. Total Expendlturfr IcontlnuBdl Go¥ernanca co8t6 Audit fees Prior year unde"Iloverl awual Legal fees Trtee 8¥p8nses Bank ch8rg&s 15.09) 9.900 1.C01 17.052 216 14B 127 .195 Total ch¥ritablo oxpeTrdblur• 1.038.1 4D3.0' 5 6. Group tanglbl¢ assets 2023 2022 Coyl 311 Apni 2022 and 31 March 2023 DepreciAlion ai i April 2022 and 31 March 2023 Nei book ¥alu8 811 Apiil 2D22 31 NlarcTh 2023 7. Nat Incom• 2023 2022 Thi$ 18 sialed aft81 charg19 E181 aLoiiors' Audit fe¢$ Prior year under.'loverS athil aeciu81 Accouniing >efvLLgS for J05ep SJIY Hoklirys Lld 15.0 9.900 1.001 2k,9.14 28.066 Ar.couiiliTIII SVIVIC8s lor JoseplT Sully Huldings Lld Includes ees oa#1 10 the ertem819J4rs ro181ing io acwunli fees, i&x comp iancc. POyTnll DI ol-ei ¥dwctTr. The sJbsidi3ry hès empbYees122. 21 boih omplowce5 are dirur.lors ul Ihe tompany and Irusiees 01.. Foundatfi Salarlp8 and Wag86 2023 2022 WJ9cs anc salaries sor.ial Seeurily c051s Pension eosts 84.OLXJ 4.S61 1.248 84.000 5,152 1,2$3 Average nwibEr ¢1 emOyeeS The charity has no employees In the curreDI or weceaing ye8r The Iruslees cf the charity art Consere 10 tse the key man2gÈmeni persc*nnel I 12022 11 Irusiee was reirnbur5ed 1926 12022 É2'.61 lor IFa¥elliry eApènses Tke subsidiary has 2 employee512022" 21. IM)th empknyees are directlK5 ltrt company ar¢ Irusiees of Ine rGundatn Their rernuneralKJr. was as folknws 2023 2022 J Mvftiryier PJ Titnms 48.000 36,000 48.000 36.DOD 84.0?0 Page 19
The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2023 9. Investment Property 2023 2022 Fair value Brought fonNard 1 Aprl 2022 Revaluation Carried forward 31 M<irch 2023 1.800.(100 1,800,000 The caryng value of the investment pioperty as at 31 March 2023 15 based on a valuatron carried out by the Foundation'5 property managers Strettons Limited In July 2020 5ubsequenlly adiu5ted for due lo the sale of the property aftor the year and The direclors lock formal adwce from the rnanaging agents of the properly inveslmenls as to their open market value at 17 July 2020. The managing agents undertook a eesklop valualion and based their valuation on their knoedge ol propertie5 as managing agents. This was not a lull valuabon In accordance th the RICS Appraisal an¢ Valuation Manual. The valuation report inGluded a'malerial valuatson unceriainly, as por VPS 3 and VPGA 10 of the RICS Red 8ry)k Global A sigt711icanl judgement has been Includod In the accounting policie5 In relation to this The histonc cost ol ihe properties al the balance sheet date was £1,486,681 12022 £1.486,6811 10. Debtors Group 2023 Foundation 2023 2022 2022 Other Debtors Tr3de Debtors Prepaymonis and accrued income 485 587 2.106 23.815 511 508 485,342 23 27 520 491 321 11. Cr•dltors'. Amounts lalling in legs than on• yèar Group 2023 Foundation 2023 2022 2022 Accruals and dèferre(I In¢x)me Tradè creditors Grant creditor Other laxalion and social security $7.195 1.776 20.000 9.S14 31.706 8.121 20,000 9.052 68 879 17,020 1,776 20,000 15,400 20,000 35 400 Included In a¢¢ruals and deferred Income for the gro¢Jp Is £18.925 of deferred rental income12022'. 12. Creditors= Arnounts falling due in more than one year Group 2023 Foundation 2023 2022 2022 Grant creditors 20 000 20,000 Page 20
The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the yèar ènd•d 31 March 2023 14. Analy515 01 net a$sets by fund a. Group Unrestrlcted Funds Expendable Endowm•nt Fund 31 March 2023 Investments Inv•stment Property D$btors Cash at bank Currgnt Ilabllitios 12.580.096 1.780.000 27.543 1,037.428 188.4851 12,580,096 1,780,000 27,543 1.037,428 188.4851 Total fvnds 15.336.582 15.336.582 b. Foundation Unrestricted Funds Exp•ndabl• eMdvv#rnvn¢ 31 Mattth 2023 Fund Investmen¢¥ Debtors Cash ai bank Current liabllltles 15,100,255 8.990 {371,0411 138.7961 15.100.255 8.990 287.195 138.7961 638.236 Total fund$ 638 236 14,699.408 15,337.644 1 S. R•lat•d Party TranJ8etlons Th8re were no related party Iran5aclions during the year12022.' non81. Page 23