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2021-12-31-accounts

Charity number: 1015648

The Andrew Lloyd Webber Foundation

Report and financial statements For the year ended 31 December 2021

The Andrew Lloyd Webber Foundation

Contents

For the year ended 31 December 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 2 Independent auditor’s report ....................................................................................................... 15 Statement of financial activities .................................................................................................... 19 Balance sheet ............................................................................................................................... 20 Notes to the financial statements ................................................................................................. 21

The Andrew Lloyd Webber Foundation

Reference and administrative information

For the year ended 31 December 2021

Charity number 1015648 Country of registration England & Wales Registered office and Sydmonton Court Estate operational address Burghclere Newbury, Berkshire, RG20 9NJ Trustees Trustees who served during the year and up to the date of this report were as follows: The Lady Lloyd Webber L E Fennell P W Freedman E K Marsh K G Reardon Dr S Thurley CBE M G Wordsworth Chair Key Management Personnel Sarah Miller Director Website www.andrewlloydwebberfoundation.com Bankers Handelsbanken Basingstoke Branch Matrix House, Basing View Basingstoke, RG21 4FF Investment Managers Rothschild Wealth Management (UK) Ltd New Court, St Swithin's Lane London, EC4N 8AL Cazenove Capital 1 London Wall Place London, EC2Y SAU Solicitors Macfarlanes LLP 20 Cursitor Street London, EC4A 1LT Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane London, EC1Y 0TL

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

The trustees present their report and the audited financial statements for the year ended 31 December 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the charity's trust deed and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. We are pleased to report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps us ensure the charity's aims, objectives and activities remained focused on its stated purposes.

Objectives and activities for the public benefit

When shaping the strategy, aims and activities of the Foundation and making decisions on the projects they support, the trustees comply with their duty in section 17 of the Charities Act 2011 and refer to the Charity Commission's guidance on public benefit. In particular, we consider how planned activities will contribute to the aims and objectives that have been set.

The Andrew Lloyd Webber Foundation (‘the Foundation’) exists to promote the advancement of the arts, culture and heritage for the public benefit. Our four year strategy, ‘Unlock, Enhance, Empower’ outlines our commitment to achieve these objectives and sets out how we will work to maximise the impact of the Foundation's charitable activities for our beneficiaries.

Unlock, Enhance, Empower - a four-year strategic vision 2019 - 2022

Our Mission - to champion access, participation and engagement in the arts and heritage to improve skills, change behaviour, increase confidence and empower the next generation to succeed.

We believe

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

We will

We will do this by:

UNLOCK creative potential and increase diversity in the arts and heritage by breaking down social, economic and geographical barriers, encouraging engagement and providing high quality training for young people under 25.

ENHANCE skills by providing specialist training and work-place experience and apprenticeships for emerging artists and newly graduated professionals.

EMPOWER the next generation by unlocking access to high quality arts and heritage education and training for a significant number of people.

Activities

The Foundation's main activities and who it tries to help are described below. All its charitable activities focus on promoting the advancement of arts, culture and heritage and are undertaken to further the Foundation’s charitable purposes for the public benefit.

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

Scholarships and grants

2021 marks the eleventh full year of the Foundation's scholarship and grant giving programme. The total amount awarded for new grants and scholarships during the year was £625,061 (2020: £1,552,940) to fund 31 (2020: 28) performing arts scholarships and 7 (2020: 9) new grants. After adjustments for funds awarded but not required, the net amount awarded was £620,559 (2020: £1,545,551).

In addition, £547,845 (2020: £645,613) was paid out in grant instalments to 22 (2020: 23) organisations that had been awarded funding in previous years.

Scholarships

Performing Arts and Technical Theatre Scholarships are funded through UK schools and colleges renowned as leaders in the field of performing arts education, including Liverpool Institute of the Performing Arts, Mountview Academy of Theatre Arts, LAMDA, Urdang, Bristol Old Vic Theatre School, Rose Bruford, Royal Central School of Speech and Drama, Royal Welsh School of Music and Drama and Royal Birmingham Conservatoire. The scholarships are awarded by the institutions as part of the audition process on the combined basis of talent and financial need and cover the course fees on an annual basis. The Foundation is advised by David Grindrod Associates in the selection of scholarship courses and students.

Grants

A small number of grants that aligned with the key strategic aims of the Foundation were awarded during the year.

Grants – Music Education

The trustees believe in the empowering force of music education and are passionate to champion the right of every child to receive free music education. In 2021 they were delighted to continue their advocacy and multi-year support of Music in Secondary Schools Trust (‘MiSST’). During the last eight years of the Foundation’s support, MiSST has given free, regular classical music tuition and free musical instruments to more than 11,000 Key Stage 3 children (11 to 14-year-olds) in 22 secondary schools in challenging circumstances across the UK. The Andrew Lloyd Webber Programme of Music Education run by MiSST clearly demonstrates the power of music to change lives by unlocking creative potential and teaching resilience, self-confidence and teamwork.

Grants – Theatre

Theatre Production Arts Course at BRIT School (£143k) provides free training in technical theatre in industry-standard facilities for up to 41students aged 16-18 every year. As part of the Foundation’s support, ‘BRIT in A Box’ outreach programme was developed, reaching 11 secondary

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

schools across Croydon with production arts sessions designed to inspire the next generation and widen knowledge of technical production & backstage careers.

Get Into Theatre (£95k) www.getintotheatre.org provides an online theatre careers resource and outreach activities to raise awareness and widen opportunities for young people from all backgrounds eager to start a career, both on and off stage, in the theatre industry. In early 2022, with assistance from the Foundation, Get into Theatre became a registered charity and has entered a new phase of development, establishing theatre partnerships to run career open days, digital theatre career programmes, teacher development and work experience opportunities.

Funding for the Mountview André Ptaszynski Memorial Fund (£30k) will establish The Ptaszynski Producer post for an early career producer from a background currently underrepresented in theatre.

Grants - Other

A full list of scholarships and grants awarded during the year is contained in note 6 of these accounts. Further details of all the activities and projects supported can be found on the Foundation's website www.andrewlloydwebberfoundation.com.

Grant applications are made through the Foundation's website which sets out the trustees' objectives and priorities and provides guidance on funding criteria, along with news and examples of projects supported. One, two and three-year grants are awarded. A new open funding round opened in December 2021 and closed in February 2022. Applications will be considered and grant awards made from this round during 2022.

The trustees strive to be informed, effective and strategic grant funders. The charity is a member of the Association of Charitable Foundations and works with 360Giving to publish information on all grants and scholarships awarded.

Heritage asset

Giovanni Antonio Canal Canaletto The Old Horse Guards from St James's Park (c.1749), oil on canvas, 117 x 236cm, is one of only two of Canaletto’s London views on this scale remaining the UK. The work is a significant historical record of the Horse Guards building commissioned by Charles II, painted just prior to its demolition in 1749. Since it was purchased by the Foundation in 1992, this important painting has been publicly displayed in museums and galleries throughout the UK and in North America. The painting has been on long term loan to Tate Britain, London since 2009 where it is on permanent exhibition and was available for free public access throughout the year, and where it will remain for the foreseeable future.

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

Research

During the year, the Foundation published Centre Stage 2021, a follow up report to the 2016 Centre Stage research which made recommendations for change to achieve diversity within the arts sector and ensure theatre is relevant to everyone.

Centre Stage 2021 investigated changes in drama school intake since 2016, finding that the ethnic and socioeconomic diversity of intakes has slowly improved since 2016 although there is still a long way to go. Written during the Covid-19 pandemic and amidst the Black Lives Matter protests, the report cautioned that already fragile diversity initiatives may be at risk as the arts industry recovers from the devastating impact of the pandemic.

The report found that the most significant progress had been made where drama schools partnered with state schools, regional theatres and other community organisations to reach under-represented groups. In addition, there was a direct correlation between those schools that used regional auditions and fee waivers for the most disadvantaged groups, and those with the highest increase in the diversity of their student intake.

Informed by Centre Stage and Centre Stage 2021 recommendations, the trustees continue to shape their giving to support organisations that increase diversity in the arts and heritage by widening access to professional training, encouraging participation and nurturing skills to provide life changing opportunities to talented young people from diverse and under-represented communities in the theatre, both on and off stage.

Achievements and performance

The trustees have been successful in following their strategic aims in the following ways:

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

Impact

The Foundation monitors and evaluates the public benefit and impact of its activities through Grant Recipient Activity Reports, by visiting projects supported when possible and in requiring annual reports on the progress of the scholarship recipients, which all also serve to guide and inform future grant making policy by identifying the key hallmarks of successful projects. The trustees have been pleased to recognise wider impact of their support demonstrated in the following ways:

Financial review

Under the terms of their governing deed, the trustees have broad powers to apply both the income and the capital of the charity towards their charitable objectives.

The statement of financial activities (SOFA) shows the incoming resources available to the Foundation and the extent to which its funds have been spent.

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

Unrestricted income of £324,236 (2020: £334,421) during the year was derived from the charity’s investment portfolios.

The trustees were very grateful to receive a donation of £10,000 from Richard Hughes to support a performing arts scholarship at Royal Welsh School of Music and Drama. This donation, together with gift aid on the donation, form the restricted income of £12,500 (2020: nil) shown on the SOFA.

The investment gains of £2,523,954 (2020: £2,386,044) comprise unrealised gains of £2,358,786 (2020: £1,215,517) and realised gains of £165,168 (2020: £1,170,527).

Total expenditure on charitable activities, including grant and scholarship awards was £793,214 (2020: £1,738,698). Investment management costs are charged on a percentage basis and totalled £185,339 (2020: £167,831).

The current value of the Foundation's unrestricted funds at 31 December 2021 was £40,639,365 (2020: £38,759,402).

The Foundation's accounting policies do not include revaluation of its tangible assets. Insurance valuations of works of art held as fixed assets are carried out regularly and based on the most recent valuation, the work of art had a market value significantly more than its cost of £10,120,000 at the year end.

The principal source of funding has been in the form of donations received from Lord Lloyd Webber, who since inception in 1992 has donated a total of £28,067,229 (net of Gift Aid) to the Foundation.

The Foundation does not seek to raise funds from the public and seeks to continue the charitable work desired by the Settlor through careful stewardship of its existing resources.

Reserves policy and assessment of going concern

The assets that make up the Foundation's funds are unrestricted and accordingly they are also available as the general reserves. It is the policy of the trustees to maintain sufficient cash reserves within the Foundation to meet all known commitments for a minimum of twelve months. The trustees monitor the level of reserves on an annual basis and more often if necessary. The amount of unrestricted general reserves held at 31 December 2021 was £40,639,365 (2020:£38,759,402). The amount of free reserves, excluding the value of Canaletto Old Horse Guards from St James’s Park at cost, held at 31 December 2021 was £30,519,365 (2020: £28,639,402).

In addition to careful planning of the cash flow which ensures grant commitments and operating expenses from the agreed budget are met, as a response to continued financial market uncertainty, the trustees currently maintain cash reserve to cover all future liabilities for multi-year grants already awarded as well as the operating costs of the Foundation together with a limited

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

fund for potential new grants for at least two years. £1.7m of this cash reserve was invested throughout 2021 on fixed term Bond deposits which is included within investment assets.

The trustees are aware of the wish of the Settlor that the Foundation will continue to support the arts, culture and heritage in perpetuity. Due to the strong recovery of financial markets in 2020/2021, the trustees were pleased to review their discretionary policy and resolve to maintain an investment portfolio together with cash reserves to not less than £30m. At 31 December 2021, the combined value of the investment portfolio and cash reserve was £30.9m (2020: £29.6m). Over the next three years, after ongoing commitments, paying out previously awarded multi-year grants and by adopting a limited new grant giving programme aligned with the strategic objectives, the trustees are satisfied this benchmark of £30m can be sustained.

The trustees hold sufficient liquidity in cash and bonds to meet their existing commitments and planned ongoing expenditure for the next twelve months without the need to draw from their investment portfolios. The trustees are therefore confident about the Foundation's ability to continue as a going concern.

Investment policy

The Trust Deed gives the trustees wide powers of investment as if they were absolute owners beneficially entitled to the underlying assets.

The trustees' investment objectives as set out in the Foundation's Investment Policy Statement are to invest the funds to generate sufficient returns to be able to protect the value of the capital in real terms and to fund the Foundation's grant making programme. Their target for average returns is 3% above UK inflation, as measured by the Consumer Price Index ('CPI') over the long term and accept that a reasonable level of volatility is to be expected, particularly in current market conditions.

The trustees have resolved that the Foundation's average total annual spend over the four-year period of their Unlock, Enhance, Empower Strategy will not exceed 5% of their available reserves per year in order to maintain minimum reserves of £30m in line with the Investment Policy.

In pursuance of these strategic objectives, the trustees, under the guidance of an independent investment consultant, have appointed Rothschild Wealth Management (UK) Ltd and Cazenove Capital to manage the Foundation's investment portfolios.

The performance of the investment managers is closely monitored on a quarterly basis and the trustees or a delegated committee of trustees and executives formally meet with the investment managers to review performance at least once a year or more often as necessary. Both Cazenove and Rothschild have a discretionary mandate to operate a balanced portfolio with a medium risk profile.

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

The combined value of the investment portfolios increased by 9.4% over the twelve-month reporting period, exceeding the trustees’ return objectives of 8.4%, being the average of CPI plus 3% for the year.

Investments are shown at market value rather than book cost in accordance with the charity SORP (FRS102). In the year to 31 December 2021 the Foundation's investments made net investment gains of £2,523,954 (2020: £2,386,044).

Principal risks and uncertainties

Risk management

The trustees regularly consider financial and legal risks to which the Foundation is exposed, including financial risks, governance risks, fraud, cyber security, safeguarding, reputational risks, public perception risks and reliance on key personnel and take independent professional advice to establish and review their systems, policies and procedures to manage and mitigate those risks.

The trustees recognise the importance of carefully managing the capital of the Foundation to generate income for the future. They continue to take independent professional advice on the management of their investment portfolio and to monitor the performance of the Foundation's invested funds.

The trustees also acknowledge that the Foundation is exposed to the risk of the painting (the heritage asset) owned by the Foundation falling in market value. This is something over which they have no control. A professional valuation of the painting undertaken during the year demonstrated that its carrying value is very significantly in excess of its cost. The risk of the painting being damaged was mitigated during the year by the trustees taking advice from experienced art galleries, conservators and auction houses on the preservation and management of the painting, including upkeep, care and handling of the work of art, ensuring that it was kept securely and in good order and that its insured value is adequate at all times.

One of the trustees' key objectives is to ensure the public has a clear understanding of the nature of the Foundation's activities and that public perception of the charity is accurate. To mitigate the risks of inaccuracy of public perception, the charity:

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

The trustees are confident that the robust operational policies and internal control procedures in place have been followed to safeguard the assets of the organisation during the exceptionally difficult circumstances of operation during the global pandemic.

At the last review all controls to limit risks were found by the trustees and their advisors to be satisfactory.

Looking ahead

The Foundation believes that education in the arts and music is every child's entitlement and will continue to support projects that further this principal aim and use the high-profile position of its Founder to champion the benefits of arts engagement to government.

It is the trustees' hope that the activities of the Foundation will contribute to nurturing a culture of philanthropic giving and encourage other individuals, organisations and public bodies to recognise the importance of the arts, culture and heritage and to support well managed and life changing projects into the future.

British Academy research published in March 2021 found that Covid-19 will have a decade long impact on mental health and result in growing inequality. Many of the projects and organisations funded by the Foundation work with communities and individuals facing these particular challenges and the trustees will continue to prioritise giving to projects that contribute to positive long-term change.

A match-funding grant programme, targeted at vital repairs for Victorian Theatres, opened for expressions of interest in February 2021. The Victorian Theatres Small Repairs Fund will provide capital funding to discreet and vital repairs or conservation projects in listed theatre buildings built between 1837 and 1910. The Fund will have a particular focus on urgent or historically significant projects for which it is otherwise difficult to raise money. In addition, an emphasis will be placed on theatre buildings which have a programme of performing activity which encourages social, economic and cultural diversity in the arts.

Structure, governance and management

The Foundation was founded in 1992 and is a charitable trust regulated by a Trust Deed dated 5 April 1992 (as amended by a deed of amendment dated 22 December 2009 and a Charity Commission Scheme dated 29 December 2009). It was registered with the Charity Commission of England and Wales on 10 December 1992 and is listed in the Central Register of Charities as Registered Charity Number 1015648. The Settlor is Lord Lloyd Webber who has the power to appoint new trustees during his lifetime and thereafter the statutory power applies.

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

The trustees, as a board, recognise that they are responsible for the good standing of the Foundation, the safe management of its assets, the strategic decisions for its future development and all key policy decisions for the governance, management and activities of the Foundation.

The trustees regularly review the Foundation’s governance procedures and are guided by recommendations of the Charity Commission and Charity Governance Code to ensure the charity remains effective and efficient throughout its operations. They recognise the importance of public trust in their activities to deliver public benefit, that they must be clear about their purpose, understand their responsibilities, act with integrity and be open about their decision making and controls.

The trustees aim to meet either in person or virtually on a formal basis at least twice a year and more often as necessary to carry out such responsibilities. The professional experience of the trustee board provides strong support and advice to the Foundation's staff to whom they delegate the day to day management of operations.

All grant applications are vetted by the Director and Administrator of the Foundation to ensure they are in accordance with the Foundation's objectives and the trustees' current priorities for public benefit. A shortlist of grants applications over £10,000 is presented to the trustees for consideration at their regular board meetings where decisions for funding are made. The Director and Administrator have the authority to make decisions on grant awards of £10,000 and under, up to a maximum of £30,000 in any one year; all such decisions are presented to the trustees for endorsement at the trustee board meeting following the award. In 2021, grants awarded in this category totalled £18,200 (2020: £8,530).

All the trustees give their time freely and no trustee remuneration was paid in the year. There were no expenses claimed by trustees during the year (2020: £nil). The remuneration of the Foundation's staff is reviewed annually and normally increased in accordance with the increase in the retail price index.

Trustees and key management personnel are required to disclose and register all relevant interests with their Chair and Director and withdraw from decisions where a conflict of interest arises. Details of related party transactions are provided in note 10 of the Financial Statements.

Appointment of trustees

The trustees are appointed by the Settlor based on their professional judgement and experience and taking care to ensure an appropriate mix of skills and knowledge to conduct the activities of the Foundation in line with its objectives. The Trust Deed provides for a minimum of three trustees.

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The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

Trustee induction and training

There is a formal induction process for new trustees who are provided with an information pack about the Charity including the governing deed and amendments, latest trustees' Annual Report and Financial Statements, policies, recent minutes and grant activity reports together with copies of the Charity Commission's guidance on trusteeship and public benefit.

Ongoing trustee training is undertaken when considered appropriate and the aim is for all serving trustees to visit at least one funded project during the year.

Statement of responsibilities of the trustees

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 charity's financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the fiduciary and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

13

The Andrew Lloyd Webber Foundation

Trustees’ annual report

For the year ended 31 December 2021

Auditor

Sayer Vincent LLP was re-appointed as the charity's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 30 March 2022 and signed on their behalf by

M G Wordsworth Chair of Trustees

14

Independent auditor’s report

To the trustees of

The Andrew Lloyd Webber Foundation

Opinion

We have audited the financial statements of The Andrew Lloyd Webber Foundation (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 Andrew Lloyd Webber Foundation’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

15

Independent auditor’s report

To the trustees of

The Andrew Lloyd Webber Foundation

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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.

16

Independent auditor’s report

To the trustees of

The Andrew Lloyd Webber Foundation

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

17

Independent auditor’s report

To the trustees of

The Andrew Lloyd Webber Foundation

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity's trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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 anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

6 April 2022 Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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The Andrew Lloyd Webber Foundation

Statement of financial activities

For the year ended 31 December 2021

Note
Income from:
2
3
4
4
12
7
Reconciliation of funds:
Total funds carried forward
Transfers between funds
Foreign exchange gains
Net movement in funds
Total funds brought forward
Net gains on investments
Net income for the year
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Donations
Total expenditure
Net (expenditure)/income before net
gains on investments
Other income		 Unrestricted
£
400
925
324,236		 Restricted
£
12,500
-		 2021
Total
£
12,900
925
324,236		 Unrestricted
£
-
475
334,421		 2020
Total
£
-
475
334,421
325,561 12,500 338,061 334,896 334,896
185,339
784,213		 -
9,000		 185,339
793,213		 167,831
1,738,698		 167,831
1,738,698
969,552 9,000 978,552 1,906,529 1,906,529
2,523,954
-
(643,991)		 -
-
3,500		 2,523,954
-
(640,491)		 2,386,044
2,293
(1,571,633)		 2,386,044
2,293
(1,571,633)
1,879,963
-		 3,500
-		 1,883,463
-		 816,704
-		 816,704
-
1,879,963
38,759,402		 3,500
-		 1,883,463
38,759,402		 816,704
37,942,698		 816,704
37,942,698
40,639,365 3,500 40,642,865 38,759,402 38,759,402

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18a to the financial statements.

19

The Andrew Lloyd Webber Foundation

Balance sheet

As at 31 December 2021

Note
£
Fixed assets:
11
12
Current assets:
13
4,849
697,147
701,996
Liabilities:
14
(659,508)
15
18a
40,639,365
Total unrestricted funds
Debtors
Total assets less current liabilities
Restricted income funds
Unrestricted income funds:
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets/( liabilities)
Total net assets
Creditors: amounts falling due after one year
Investments
Cash at bank and in hand
Heritage assets
General funds
Total charity funds		 Note
£
Fixed assets:
11
12
Current assets:
13
4,849
697,147
701,996
Liabilities:
14
(659,508)
15
18a
40,639,365
Total unrestricted funds
Debtors
Total assets less current liabilities
Restricted income funds
Unrestricted income funds:
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets/( liabilities)
Total net assets
Creditors: amounts falling due after one year
Investments
Cash at bank and in hand
Heritage assets
General funds
Total charity funds		 2021
£
10,120,000
30,924,660		 £
4,076
502,241		 2020
£
10,120,000
29,618,472
41,044,660
42,488		 39,738,472
(198,966)
701,996
(659,508)		 506,317
(705,283)
40,639,365 38,759,402
41,087,148
(444,283)		 39,539,506
(780,104)
40,642,865 38,759,402
3,500
40,639,365		 -
38,759,402
40,642,865 38,759,402

Approved by the trustees on 30 March 2022 and signed on their behalf by

M G Wordsworth Chair of Trustees

20

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies

a) Statutory information

The registered office address is Sydmonton Court Estate, Burghclere, Newbury, RG20 9NJ

b) Basis of preparation

The Foundation meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to the accounts. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

As a smaller charity, in accordance with SORP Update Bulletin 1, a Statement of Cash flows is not required.

The Foundation's activities, together with the factors likely to affect its future development, performance and position are set out in the Trustees' Report.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £1.

c) Going concern

Having reviewed the Foundation's forecasts the trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future, accordingly they continue to adopt the going concern basis in preparing the financial statements.

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

d) Fund accounting

The Foundation maintains a general unrestricted fund. This represents unrestricted income that is expendable at the discretion of the trustees in the furtherance of the objects of the Foundation.

Such funds may be held in order to finance both working capital and capital investment.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

e) Revenue recognition Investments and investment income

Investment income is credited to the Statement of Financial Activities when receivable. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Donations

Donations are accounted for on a receivable basis and are recognised when the charity becomes entitled to the income, it is probable that the income will be received and it is capable of reliable measurement.

f) Cash at bank

Cash at bank includes funds in a current account and a deposit account.

21

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

Costs of charitable activities

These include all expenditure directly related to the objects of the Foundation and comprise the costs of grants and scholarships awarded, management and administration, art care and professional consultancy. Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Governance and support costs

Governance costs relate to expenditure incurred in the governance of the Foundation's assets and compliance with constitutional and statutory requirements. These include costs relating to statutory audit and legal fees together with an apportionment of management and administration. Support costs represent the administration of the grant giving process.

Staff costs

All staff costs are recharged from Escaway, a self-employed business of Lord Lloyd Webber. Staff costs are apportioned based on the time spent between the core grant-making activities of the Foundation (75%) and governance/ compliance (25%).

Cost of raising funds

The cost of raising funds consists of investment management fees.

Creditors are recognised as soon as there is a legal or constructive obligation committing the Foundation to the expenditure. For grants, scholarships and bursaries which are subject to an annual review and re-assessment the liabilities are included in the statement of financial position in the year in which the obligation to pay becomes unconditional. For other grants awarded the full costs are included in the year in which they are approved.

i) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Heritage assets gifted to the foundation are carried at valuation at the date of receipt of the gift in kind, shown as 'cost' in the financial statements.

No depreciation is provided on fixed assets on the grounds that their expected residual value is expected by the trustees to exceed their carrying value. Impairment reviews are carried out constantly on the works of art. The valuation of the heritage asset is therefore a significant estimate / judgement made by the trustees. A professional valuation of market and insurance values is carried out every five years or more often if there is a significant change in market conditions.

k) Financial instruments - listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

22

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

Income from donations
One-off Donations from individuals Unrestricted
£
400		 Restricted
£
12,500		 2021
Total
£
12,900		 Unrestricted
£
-		 2020
Total
£
-
400 12,500 12,900 - -
Income from investments
Dividends
Interest received		 2021
Total
£
323,599
637		 2020
Total
£
330,318
4,103
324,236 334,421

All income from investments is unrestricted.

23

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

Grants and scholarships awarded
Investment management costs
Staff costs (Note 8)
Scholarship consultancy fees
Public relations consultancy fees
Market research
Audit fees
Investment consultancy fees
Website database, maintenance and IT support
Legal and professional fees
Other - incl. insurance, training & treasury
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Raising
funds
£
-
185,339
-
-
-
-
-
-
-
-
-		 Charitable
activities
£
620,559
-
66,877
-
-
14,484
-
6,961
-
-
2,778		 Governance
costs
£
-
-
34,389
-
-
-
10,800
-
-
-
2,219		 Support
costs
£
-
-
-
28,800
-
-
-
-
5,346
-
-		 2021
Total
£
620,559
185,339
101,266
28,800
-
14,484
10,800
6,961
5,346
-
4,997		 2020
Total
£
1,545,551
163,631
97,772
28,800
17,880
18,780
10,502
4,200
5,394
6,130
7,889
185,339
-
-		 711,659
34,146
47,408		 47,408
-
(47,408)		 34,146
(34,146)
-		 978,552
-
-		 1,906,529
-
-
185,339 793,213 - - 978,552 1,906,529
167,831 1,738,698 - -

24

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

Grants and scholarships awarded
Investment management costs
Staff costs (Note 8)
Scholarship consultancy fees
Public relations consultancy fees
Market research
Audit fees
Investment consultancy fees
Website database, maintenance and IT support
Legal and professional fees
Other - incl. insurance, training & treasury
Support costs
Governance costs
Total expenditure 2020		 Raising funds
£
-
163,631
-
-
-
-
-
4,200
-
-
-		 Charitable
activities
£
1,545,551
-
64,169
-
-
18,780
-
-
-
-
6,449		 Governance
costs
£
-
-
33,603
-
-
-
10,502
-
-
6,130
1,440		 Support costs
£
-
-
-
28,800
17,880
-
-
-
5,394
-
-		 2020
Total
£
1,545,551
163,631
97,772
28,800
17,880
18,780
10,502
4,200
5,394
6,130
7,889
167,831
-
-		 1,634,949
52,074
51,675		 51,675
-
(51,675)		 52,074
(52,074)
-		 1,906,529
-
-
167,831 1,738,698 - - 1,906,529

25

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

Grant making
Grants payable at the start of the year
Grants and scholarships awarded:
Total grants and scholarships awarded (note 4)
Payments made in the year
Grants payable at the end of the year
Grants payable: amounts falling due within one year
Grants payable: amounts falling due after one year
Total grant creditors at the end of the year
Performing arts scholarships
Grants		 2021
£
1,435,718
328,440
292,119		 2020
£
964635
292,684
1,252,867
620,559
(979,087)		 1,545,551
(1,074,468)
1,077,190 1,435,718
632,907
444,283		 655,614
780,104
1,077,190 1,435,718

All awards were made to institutions in both periods, the detailed breakdown of which are included within Note 6.

Grants awarded
Arts Educational Schools
Urdang Schools Ltd
Royal Central School of Speech & Drama
Royal Conservatoire of Scotland
Performing Arts Scholarships
Royal Northern College of Music
Italia Conti
University of Surrey - Guildford School of Acting
LAMDA
Rose Bruford College of Theatre & Performance
Birmingham Conservatoire
Bristol Old Vic Theatre School
Royal Welsh College of Music & Dance
Mountview Academy of Theatre Arts
Sylvia Young Theatre School - fee reduction Summer 2020 due to COVID
Liverpool Theatre School
Birkbeck, University of London
Liverpool Institute for Performing Arts
Leeds College of Music
Scholarships sub-total		 Grants
awarded
2021
£
48,528
38,400
27,750
27,750
24,250
24,057
18,500
18,500
18,500
18,500
15,000
14,995
10,000
9,460
9,250
5,000
-
-		 Grants
awarded
2020
£
44,654
38,400
9,250
27,750
24,250
15,509
18,500
18,500
9,250
18,500
15,000
14,700
10,000
9,250
9,250
-
12,000
(2,079)
328,440 292,684

26

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

6
Grants awarded (continued)
7
Net income / (expenditure) for the year
Auditor's remuneration (excluding VAT):
This is stated after charging / (crediting):
Audit
Music in Secondary Schools Trust - over 3 years
Theatres Development Trust: Theatre Artists Fund
Help Musicians UK: Coronavirus Financial Hardship Fund
Broadway Cares: Covid-19 Emergency Assistance Fund ($50k)
United Learning - reduction in funds required
Eton College: 6th Form Music Scholarships - fee reduction Summer 2020 due to COVID
Ulster Architectural Heritage Society: Northern Ireland Heritage Angel Awards
Acting for Others: Covid Emergency Fund
RNCM: Music Pathfinder programme - over 3 years
Prince's Foundation: Heritage Building Craft programme
Friends of the City of Sheffield Youth Orchestra: Bursaries
Brit School - over 3 years
Get into Theatre - over 3 years
Mountview - Andre Ptaszynski memorial fund - over 3 years
MiSST Create
Music Connect CIC (Wiltshire Music)
Black British Theatre Awards
Total grants
Foreign exchange gains or losses
All Saints Church Kings Lynn refurbishment project
Grants awarded
Scholarships
Total scholarships and grants		 Grants
awarded
2021
£
143,254
94,927
30,100
10,100
10,100
5,100
3,000
(1,012)
(3,450)
-
-
-
-
-
-
-
-
-		 Grants
awarded
2020
£
-
-
-
-
-
-
-
(7,389)
-
1,050,000
55,875
50,000
42,506
20,000
15,000
12,000
9,000
5,875
292,119
328,440		 1,252,867
292,684
620,559 1,545,551
2021
£
9,000
-		 2020
£
8,700
2,293

8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel Staff costs were as follows:

Staff costs were as follows:
Employer’s contribution to defined contribution pension schemes
Salaries and wages
Social security costs		 2021
£
85,013
10,264
5,989		 2020
£
82,007
9,616
6,149
101,266 97,772

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £57,996 (2020: £54,994).

No employee earned more than £60,000 during the year (2020: nil).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

No trustee expenses were paid in this or the previous year.

27

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

9 Staff numbers

The Foundation has three part-time employees (2020: four part-time) used in finance, management and administration.

Staff are split across the activities of the charity as follows (full time equivalent basis):

Governance
Grant-making activities		 2021
No.
0.8
0.5		 2020
No.
0.8
0.5
1.3 1.3

10 Transactions with Trustees and related parties

Included within expenditure are the costs of three part-time members of staff (2020: three part-time) employed jointly by The Andrew Lloyd Webber Foundation and Escaway, a self- employed business of Lord Lloyd Webber. The total cost of all staff re-charged from Escaway is £101,267 (2020: £97,772). Escaway has also recharged the Foundation a fee of £1,440 inclusive of VAT (2020: £1,440) to cover the cost of providing treasury support to the Foundation. At the year end the Foundation owed Escaway £nil (2020: £nil). The Foundation shares the same premises and services as used by Escaway.

During the year The Andrew Lloyd Webber Foundation awarded grants totalling £10,100 (2020: £1,050,000) to Music in Secondary Schools Trust (MiSST). Lady Lloyd Webber is a trustee of MiSST and sits on the board to represent the interests of The Andrew Lloyd Webber Foundation.

£350,100 was paid to MiSST in the current year for grants awarded in previous years (2020: £350,000).

During the year, The Andrew Lloyd Webber Foundation awarded a multi-year grant of £94,927 to Get Into Theatre online theatre careers initiative www.getintotheatre.org. Get Into Theatre was accepted by the Charity Commission as Registered Charity 1197412 in January 2022. Sarah Miller became a trustee of Get Into Theatre on 10 January 2022 and sits on the board to represent the interests of The Andrew Lloyd Webber Foundation.

Tangible fixed assets - Heritage assets
At the end of the year
Cost and net book value
At the start of the year		 Painting
£
10,120,000		 Total
£
10,120,000
10,120,000 10,120,000

Depreciation is not provided as the future residual value is expected by the trustees to exceed the carrying value.

The preservation and management of the heritage asset owned by the Foundation is discussed in the Trustees' annual report.

28

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

Investments
Disposal at cost
Fair value at the start of the year
Additions at cost
Fair value at the end of the year
Investments comprise:
Accumulated income and investment cash held by investment managers
Investment value excluding cash at the end of the year
Shares listed on the London Stock Exchange
Net unrealised gains on change in fair value*
Unlisted shares in UK registered companies
Unlisted shares in non-UK registered companies
Cash
Shares listed overseas		 2021
£
26,024,618
6,114,441
(6,040,567)
2,358,783		 2020
£
25,725,741
7,612,326
(8,528,966)
1,215,517
28,457,275
2,467,385		 26,024,618
3,593,854
30,924,660 29,618,472
2021
£
1,523,091
9,553,395
4,491,664
12,889,125
2,467,385		 2020
£
1,252,860
10,108,658
4,267,727
10,395,373
3,593,854
30,924,660 29,618,472

Investment managers have discretion over their portfolios and perform regular capital transactions in order to maximise performance in line with their mandate. The effect of these transactions and other market activity is included in net investment gains and losses.

13
14
15
Accruals
Debtors
Creditors: amounts falling due after one year
Grants authorised but not yet paid (Note 16)
Prepayments
Grants authorised but not yet paid (Note 16)
Creditors: amounts falling due within one year		 2021
£
4,849		 2020
£
4,076
4,849 4,076
2021
£
632,907
26,601		 2020
£
655,614
49,669
659,508 705,283
2021
£
444,283		 2020
£
780,104
444,283 780,104

29

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

16 Financial instruments

Financial assets measured at fair value through the statement of financial activities

2021 2020
£ £
Investments 28,457,275 26,024,618

17a Analysis of net assets between funds (current year)

Net assets at 31 December 2021
Long term liabilities
Investments
Net current assets/(liabilities)
Heritage assets		 General
unrestricted
£
10,120,000
30,924,660
38,988
(444,283)		 Restricted
funds
£
-
-
3,500
-		 Total funds
£
10,120,000
30,924,660
42,488
(444,283)
40,639,365 3,500 40,642,865

17b Analysis of net assets between funds (prior year)

Long term liabilities
Net assets at 31 December 2020
Heritage assets
Investments
Net current liabilities		 General
unrestricted
£
10,120,000
29,618,472
(198,966)
(780,104)		 Total funds
£
10,120,000
29,618,472
(198,966)
(780,104)
38,759,402 38,759,402

30

The Andrew Lloyd Webber Foundation

Notes to the financial statements

For the year ended 31 December 2021

Movements in funds (current year)
Total restricted funds
General funds
General funds
Unrestricted funds:
Restricted funds:
Movements in funds (prior year)
Total funds
Richard Hughes scholarship fund
Total funds		 At 1 January
2021
£
-		 Income & gains
£
12,500		 Expenditure &
losses
£
(9,000)		 Transfers
£
-		 At 31
December
2021
£
3,500
- 12,500 (9,000) - 3,500
38,759,402 2,849,515 (969,552) - 40,639,365
38,759,402 2,862,015 (978,552) - 40,642,865
At 1 January
2020
£
37,942,698		 Income & gains
£
2,723,233		 Expenditure &
losses
£
(1,906,529)		 Transfers
£
-		 At 31
December
2020
£
38,759,402
37,942,698 2,723,233 (1,906,529) - 38,759,402

Purposes of restricted funds

Richard Hughes scholarship fund

Individual donation to be used towards non-specific Scholarships (£10,000 plus £2,500 gift aid). The donor has agreed for the unused balance to be carried forward into next year.

31