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 f￿nanCIal 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 reSOur￿S 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 ac￿￿nting 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 aCCordar￿e 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 b9e. 9 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| |---|---|---| Page: 11 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 ap￿￿able 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 ¢￿$011￿318d 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 func11￿41 ¢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(4￿Y oullined In nole 11 8881¢ lin•ncial li•bilities 8asic financial liabilitiès In¢luLling Credi1￿$. bank loans. loan8 from fell¢)w 9r¢)up cowpanies and pr¢for¢n¢e sharos Ihal are classified as debt. are Init￿llY rèeognised al liansaciion price tsriless tho arrangewonl conslilules a IinaTILing Iransaciion. whore Ihe debt Instrument Is measured al the present value ol Itt8 fulur8 p8ymenls discoun18d al a marke¢ rate ol Inierest. Financial liabilities claSsif￿d as payab￿ ￿Thin one ￿ar are not amortised Dobt inslrumenls are subsequently carried at amornsed cosi. u&ng the etteclivè inièr¥gt rate rnethod. Trad9 creditors are obligalions to pay goods or services Ihat havo been acquired in thè ordinary cours• ol bu%ing5s from suppliers. Amounts payable are classified a5 cufTeni Iiabililies If payment Is duo within one y8ar or less If not, Ihey are piesenlpd as non-currenl Iiabiliiies. Trade creditors arè recognised Initially ai Iransaciion prKe and subsequwiiy mèasured ai amortise(J eosl using Ihe effeciive Inleresl method kl Equity instrumonts Equity Insirurnen15 Issued by the company are recorded al Ihe proceeds Teceived. nel of direct issue cosls. Dividends payable on equily Inslrvmenls are fecognised as Iiabilitses once they are no longer at the discretion ol Ihe company. Page 14 The Joseph and Lilian Sully Foundation Notes to the Financial Statements for the year ended 31 March 2023 1. Accounting poli¢i•s 11 Investments Investwent are slate¢ at market value ralheT than al hislorical cosl Any Un￿alISed or realised gains or losse5 arising from this policy are disc105ed in the statement of financial activities. ml Critical accountlng o$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 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 ertem819￿J4￿rs ro181ing io acwunli fees, i&x comp iancc. POyTnll DI￿ ol-ei ¥dwctTr. The sJbsidi3ry hès empbYees12￿2. 21 boih omplowce5 are dirur.lors ul Ihe tompany and Irusiees 01..￿ Foundat￿fi 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 em￿OyeeS The charity has no employees In the curreDI or weceaing ye8r The Iruslees cf the charity art Cons￿ere￿ 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 rGundat￿n 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