2021-08-31-accounts

Company registration number: 03039665 Charity registration number: 01045927

Boots Charitable Trust for the year ended 31 August 2021

Annual report and financial statements

Boots Charitable Trust

Contents

Strategic report	1
Trustees’ report	3
Statement of Trustees’ responsibilities	5
Independent auditor’s report	6
Statement of Financial Activities (incorporating the Income and Expenditure Account)	8
Reconciliation of funds	8
Balance sheet	9
Notes to the financial statements	10

Boots Charitable Trust

Strategic report

for the year ended 31 August 2021

The Trustees, in preparing this strategic report, have complied with s414c of the Companies Act 2006.

In accordance with Section 60 of the Companies Act 2006, the Trust is exempt from the requirements of that Act to include "Limited" as part of its name.

The Trustees are also the directors of the Trust for the purposes of the Companies Act 2006. Throughout the financial statements, they will be referred to as Trustees.

Principal Activity

The principal activity of the Boots Charitable Trust (the “Trust”) is that of a charitable trust. It is wholly funded by Boots UK Limited. The Trust provides charitable funds to registered charities and voluntary organisations working in the areas of health, lifelong learning, community development and social care in Nottingham.

Objectives and activities for the public benefit

In setting the Trust’s objectives and planning its activities, the Trustees have given due consideration to their duty in sec tion 4 and 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission. The Trustees consider the information, which is contained in this report in relation to the Trust’s objectives, activities and achievements, does demonstrate the benefit to the public that arises.

The Trust has achieved its objectives by providing financial support to registered charities and voluntary organisations working in the areas of health, lifelong learning, community development and social care, in the county of Nottinghamshire. Applications for funding are assessed with particular regard to evidence of need. By funding projects with clearly defined benefits, the Trust has improved the lives of people living in Nottinghamshire who are suffering as a result of financial disadvantage, social isolation, health or educational inequalities or specific issues in their local communities.

Business review, achievements and performance

COVID-19 was declared a global pandemic by the world Health Organisation on 20 March 2020. This outbreak h as continued to have a significant impact in the UK. Given the nature of the Trust, the Trustees do not consider there to be any significant impact on the Trust’s operations, nor for the proper understanding of these financial statements.

During the year the Trustees made grants to institutions in line with the Trust’s Giving Policy focusing on four key areas of health, lifelong learning, community development and social care:

1. Health

Community Healthcare, including community healthcare services; home care; after care; support for sufferers of medical conditions and people with disabilities; and continuing care.

Health Education and Prevention, including promoting knowledge and awareness of specific diseases or medical conditions.

2. Lifelong Learning

Helping people of any age to achieve their educational potential through supplementary schooling, literacy and numeracy projects, community education, vocational/restart education for the unemployed or alternative education for excluded school pupils.

3. Community Development

Helping groups to organise and respond to problems and needs in their communities or networks. This would include organisations such as Councils for Voluntary Services and self-help groups.

4. Social Care

Personal Social Services, including providing assistance to individuals or families to overcome social deprivation (including those who are homeless; disabled persons and their carers; lone parents; childcare groups and other family support groups).

Social Preventive Schemes, including activities to prevent crime, dropping out of education, general delinquency and providing other social care outreach work, social health and safety awareness schemes etc.

Community Social Activities, including activities to promote social engagement for vulnerable people, mitigating against isolation and loneliness.

The Trustees are especially keen on projects with the capacity to deliver significant impact.

In the year to 31 August 2021, the Trust received 94 applications from institutions (2020: 112). Grants to the value of £250,000 were authorised during the year (2020: £250,000).

Major grants of £10,000 during the year include:

• £10,000 awarded to NIDAS to fund a Court/Children Referral and Assessment Worker (CRAW) to undertake initial assessments to identify risks, safety planning and support needs for women, teenagers and families;

• £10,000 awarded to Spectrum WASP, to fund a Community Co-ordinator role that will organise the planning and running of a programme of monthly activities, and provide learning and life skills workshops for children and young people with autism and their siblings;

• £10,000 awarded to Dance4 to support the use of dance, choreography and artistic experiences to find innovative ways to support patients diagnosed with fibromyalgia to improve their health, wellbeing, confidence and self-efficacy;

• £10,000 awarded to Newark and Sherwood CVS to support community organisations and groups made vulnerable by the pandemic through bringing in the support of young volunteers to build their capacity and skills;

• £10,000 awarded to Hope Community Services to provide additional support to homeless people following an increase in demand during the COVID-19 pandemic;

• £10,000 awarded to Refugee Roots who will continue and sustain the Befriending & Navigator service which supports asylum seekers and refugees on a one-to-one basis as well as through group work;

• £10,000 awarded to Broxtowe Women’s Project who provide support to vulnerable children and young people who have been exposed to domestic abuse and violence;

1

Boots Charitable Trust

Strategic report (continued)

for the year ended 31 August 2021

Business review, achievements and performance (continued)

• £10,000 awarded to Trent Bridge Community Trust, who will launch a physical activities and mental health promotion project targeting men; and

• £10,000 awarded to PASIC – Cancer Support for Children and Young People. The project will fund a Family Support Co-ordinator from June 2021June 2022.

The number of awards made and the total expenditure during the year is summarised by category as follows:

Category	No. of awards	Expenditure
		£
Health	8	61,179
Social Care	14	117,550
Lifelong Learning	5	39,631
CommunityDevelopment	4	31,640
**Total **	**31 **	250,000

Principal risks and uncertainties

The Trustees have reviewed the strategic, operational and business risks which the Trust faces, and have confirmed that there are sufficient controls to mitigate the significant risks.

The Trustees consider that the principal risks and uncertainties that face Boots Charitable Trust during the year are as follows:

Insufficient funds

Risk

Insufficient funds are received to enable the Trust to achieve its stated objectives.

Mitigation

The Trust is wholly funded by Boots UK Limited, a related party within the Walgreens Boots Alliance, Inc. group. The award is agreed prior to the commencement of the financial year. Funds are divided equally for allocation to each meeting held in the year and expenditure against allocation is monitored closely during and at the conclusion of each meeting.

Incorrect books and records

Risk

The books and records of the Trust are not properly maintained.

Mitigation

The books and records are maintained by a fully qualified member of a professional accounting body and reviewed regularly.

Out of policy awareness

Risk

Commitments are made which do not fall within the stated aims of the Trust.

Mitigation

The Trust operates a rigorous process of short-listing qualifying applications against the Trust’s Giving Criteria prior to consideration by the Trustees and the issuance of a grant.

COVID-19

Risk

The COVID-19 pandemic has created significant volatility, uncertainty and economic disruption which continued into the current financial year. This might adversely affect the future business operations of Boots UK Limited, who provide funds to the Trust for onward distribu tion to selected charities.

Mitigation

The Trustees continue to monitor and respond to the impact of COVID-19 on the Trust and all available actions have been taken to protect performance and resources in collaboration with the Trust’s stakeholders. The profitability and cash flows of the funding entity are monitored regularly to ensure that adequate funds are available to continue to meet all financial commitments.

The Strategic Report was approved by the Board and signed on its behalf by:

Andrew Thompson (May 27, 2022 15:45 GMT+1) A Thompson Company Secretary 25th May 2022

2

Boots Charitable Trust

Trustees’ report

for the year ended 31 August 2021

The Trustees present their annual report and the audited financial statements for the year ended 31 August 2021.

The Trustees also confirm that the Trustees’ report and the financial statements comply with the Statement of Recommend ed Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Professional advisers

Auditor	Deloitte LLP, Statutory Auditor, 1 City Square, Leeds, LS1 2AL, United Kingdom
Bankers	National Westminster Bank, 3 Thurland Street, Nottingham, NG1 3DT
Registered office & principal office	1 Thane Road West, Nottinghamshire, NG2 3AA
Company registration number	03039665
Charity registration number	01045927

Structure, governance and management

The Trust is a limited company without share capital, limited by guarantee and registered in England and Wales. The liability of a member in the event of the Trust being wound up whilst a member, or within one year of ceasing to be a member, is not to exceed £1. The Trust is registered with the Charity Commission and must comply with the Companies Act 2006 and Charities Act 2011.

The Trust is governed by its Memorandum and Articles of Association which provide for a minimum of 3 Trustees to a maximum of 20 Trustees.

The Chair of Trustees together with the Company Secretary are responsible for the induction of any new Trustees. Trustee induction involves raising awareness of Trustees to their duties and responsibilities under both the Charities Act 2011 and the Companies Act 2006 , to emerging regulatory issues as well as an introduction to the governing documents of the Trust and the internal policies adopted. New Trustees receive an Induction Pack in which copies of the following are included:

1. The Trust’s latest annual report and accounts;

2. The Trust’s internal governing documents;

3. The Trust’s Memorandum and Articles of Association; and

4. The Charity Commission publications ‘The Essential Trustee: What You Need to Know’ and the Charity Governance Code.

When appropriate, Trustees receive regular Charity Commission updates and information about issues facing the voluntary sector locally.

Trustees are appointed following recommendation by the Members of the Committee and the consent of the individual proposed. The individual shall then hold office until the next Annual General Meeting where they may be re-appointed for a three-year term.

The Trustees meet six times a year to agree the strategic direction of the Trust, to review applications and award grants. Grants are awarded in line with the Trust’s Giving Policy. Whilst there is no maximum award, grants are generally awarded for £10,000 or less.

The Trust does not have any direct employees. On a day to day basis, the Trust is administered by members within the Corporate Social Responsibility team of Boots UK Limited, and associated costs are borne by Boots UK Limited and Boots Management Services Limited.

Going concern

The financial statements have been prepared on a going concern basis. In adopting the going concern basis, the Trustees have considered the business activities and principal risks and uncertainties as set out within the Strategic report including the impact of COVID-19.

The Trust had net expenditure of £nil in the current year (2020: net expenditure of £13,563). It has net current liabilities of £nil (2020: £nil) which is expected to continue. The donation from Boots UK Limited is anticipated to continue to be recei ved for the foreseeable future. The annual donation for the financial year ending 31 August 2022 to the value of £250,000 (2021: £250,000) was agreed in July 2021.

The donation is agreed prior to the commencement of the financial year, with all financial commitments agreed subsequently once the income is known. Funds are divided equally for allocation to each meeting held in the year and expenditure a gainst allocation is monitored closely during and at the conclusion of each meeting.

Based on these facts, the Trustees have assessed that there is no material uncertainty surrounding the going concern of the Trust and they therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Future developments

In the forthcoming year the Trust will continue to concentrate on the funding priorities in the four categories of health, lifelong learning, community development and social care.

Post balance sheet events

Following the outbreak during the previous financial year, COVID-19 has continued throughout the year and after the balance sheet date, including the identification of the new Omicron strain. Whilst restrictions have eased and the government's immunisation programme has been deemed successful, there remains some uncertainty relating to COVID-19. The Trustees do not consider this to have any significant impact on the Trust’s future nor the understanding of these financial statements.

3

Boots Charitable Trust

Trustees’ report (continued)

for the year ended 31 August 2021

Trustees

The following served as Trustees during the year and subsequently:

A Caplan L Moxley F Walton-Bateson P Bowrey (appointed on 5 October 2020) H Normoyle (resigned on 5 October 2020) S Buchanan (appointed on 24 February 2021) R Bradley (resigned on 24 February 2021) L Reynolds (appointed on 5 April 2022)

Remuneration of Trustees

The Trustees received no remuneration for their services during the year (2020: £nil).

Transactions with related parties

Details of transactions with related parties are set out in note 9 to the financial statements.

Financial review

The Trust is wholly reliant on funding from Boots UK Limited, which was £250,000 in the year (2020: £236,437) and has been agreed and received at £250,000 for the year ending 31 August 2022.

Reserves policy

The Trustees review the level of reserves annually to ensure the future expenditure will not exceed the funds that are available. At the year end, the level of deficit was £nil (2020: £nil).

References to strategic report

Details of the following areas can be found in the Strategic Report and form part of this report by cross-reference:

• Objectives and activities for the public benefit (including public benefit statement)

• Achievements and performance

Auditor

Pursuant to s487 Companies Act 2006, Deloitte LLP were deemed to be reappointed and will therefore continue in office.

Disclosure of information to auditor

The Trustees who held office at the date of approval of this Trustees’ report confirm that, so far as they are each aware, th ere is no relevant audit information of which the Trust’s auditor is unaware, and each Trustee has taken all the steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that the Trust’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The Trustees’ Report was approved by the Board and signed on its behalf by:

Andrew Thompson (May 27, 2022 15:45 GMT+1)

A Thompson

Company Secretary 25th May 2022

Registered Office: 1 Thane Road West Nottingham NG2 3AA Registered in England and Wales No. 03039665 Charity registration No: 1045927

4

Boots Charitable Trust

Statement of Trustees’ responsibilities for the year ended 31 August 2021

The Trustees, who are also directors of Boots Charitable Trust for the purposes of Company Law, are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard Applicable in the UK and Republic of Ireland”.

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsib le for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

5

Independent auditor’s report to the members of Boots Charitable Trust

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of Boots Charitable Trust (the “charitable company”):

• give a true and fair view of the state of the charitable company’s affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

• the statement of financial activities (incorporating the Income and Expenditure account);

• the balance sheet; and

• the related notes 1 to 12.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial stat ements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statement s 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 th e 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 oth er information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitab le company for the purpose of company law) are responsible for the preparation of the financial statem ents 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 tha t are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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.

A further description of our responsibilities for the audit of the financial sta tements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

6

Independent auditor’s report

to the members of Boots Charitable Trust (continued)

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

We considered the nature of the industry and its control environment, and reviewed the documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the charitable company operates in, and identified th e key laws and regulations that:

• had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act and UK Charities Act; and

• do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisatio n for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our specific procedures performed to address it are described below:

• We presume a risk of material misstatement due to fraud in revenue recognition which is related to the completeness of donation income. To address this risk, we reviewed the Trustees’ meeting minutes and bank statements in the period, and post year end records; an d tested a sample of income to supporting evidence, to test whether income had been appropriately included in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of mana gement override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rat ionale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• enquiring of management concerning actual and potential litigation and claims, and instances of non -compliance with laws and regulations; and

• • reading minutes of meetings of those charged with governance.

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the trustees’ report, which includes the strategic report and the directors’ report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

• In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report included within the trustees’ report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visite d by us; or

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

• certain disclosures of trustees’ remuneration specified by law are not made; or

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

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are requ ired 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 oth er than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Anderson

Sarah Anderson (May 27, 2022 17:03 GMT+1)

Sarah Anderson FCCA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor Leeds, United Kingdom

27th May 2022

7

Boots Charitable Trust

Statement of Financial Activities (incorporating the Income and Expenditure Account) for the year ended 31 August 2021

		2021	2020
	Notes	£	£
Income from
Donations	3, 4	266,834	254,212
Total income		266,834	254,212
Expenditure on
Charitable activities	4, 5	(266,834)	(267,775)
Total expenditure		(266,834)	(267,775)
Net expenditure		-	(13,563)
Net movement in funds		-	(13,563)

All funds are unrestricted in the current and preceding years.

The income/expenditure and resulting net movement in funds arise from continuing operations and includes all gains and losses recognised in the year.

The accompanying notes to the financial statements are an integral part of the Trust’s financial statements.

Reconciliation of funds

as at 31 August 2021

	2021	2020
	£	£
Total funds brought forward	-	13,563
Net movement in funds for theyear	-	(13,563)
Total surplus carried forward	-	-

The accompanying notes to the financial statements are an integral part of the Trust’s financial statements.

8

Boots Charitable Trust

Balance sheet

as at 31 August 2021

		2021	2020
	Notes	£	£
Current assets
Cash at bank and in hand		45,079	42,344
Liabilities
Creditors: amounts fallingdue within oneyear	8	(45,079)	(42,344)
Net liabilities, being net current assets and total assets less current liabilities		-	-
Funds
Unrestricted income funds:
General deficit		-	-
Total charity deficit		-	-

The accompanying notes to the financial statements are an integral part of the Trust’s financial statements.

The financial statements of Boots Charitable Trust (company registration number 03039665, charity registration number 01045927) were approved by the Board of Trustees and authorised for issue on 25th May 2022 and were signed on its behalf by:

F Walton-Bateson Trustee

25th May 2022

9

Boots Charitable Trust

Notes to the financial statements

for the year ended 31 August 2021

1. Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relat ion to the Trust’s financial statements.

General information

Boots Charitable Trust (the “Trust”) is a public benefit entity, a registered charity and is incorporated in England and Wales as a company limited by guarantee not having share capital. The address of the registered office is given on page 4. The nature of the Trust’s operations and its principal activity are set out in the strategic report on page 1.

Basis of preparation

The financial statements are prepared under the historical cost convention, in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2019)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective 1 January 2019; and the Companies Act 2006.

These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the Trust operates.

The Trust has taken the exemption as a small charity from the preparation of a cash flow statement.

Going concern

The financial statements have been prepared on a going concern basis. In adopting the going concern basis, the Trustees have considered the b usiness activities and principal risks and uncertainties as set out within the Strategic report including the impact of COVID-19.

The Trust had net expenditure of £nil (2020: net expenditure of £13,563) in the current year. It has net current liabilities of £nil (2020: £nil) which is expected to continue. The donation from Boots UK Limited is anticipated to continue to be received for the foreseeable future. The annual donation for the financial year ending 31 August 2022 was agreed in July 2021 to the value of £250,000 (2021: £250,000).

The donation is agreed prior to the commencement of the financial year, with all financial commitments agreed subsequently once the income is known. Funds are divided equally for allocation to each meeting held in the year and expenditure against allocation is monitored closely during and at the conclusion of each meeting.

Based on these facts, the Trustees have assessed that there is no material uncertainty surrounding the going concern of the Trust and they therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Statement of financial activities

The income/expenditure by the Trust are detailed below together with the respective accounting treatments.

Income

All income is recognised once the Trust has entitlement to the resources, it is probable that the income will be received, and the monetary value can be measured with sufficient reliability.

Donations

Such voluntary income is accounted for on the date when it becomes receivable. Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with th e Charities SORP (FRS 102), general volunteer time is not recognised - refer to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market ; a corresponding amount is then recognised in expenditure in the period of receipt.

Financial instruments

Financial assets and financial liabilities are recognised when the Trust becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transac tion costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument .

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Trust to expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Charitable activities

Donations are included in the Statement of Financial Activities when approved by the Trustees and agreed with the recipient o rganisation. If a donation is awarded that is dependent on certain conditions being met, it is treated as expenditure and a liability of the Trust if those conditions fall outside of the control of the charity. All expenditure is accounted for on an accruals basis.

10

Boots Charitable Trust

Notes to the financial statements (continued)

for the year ended 31 August 2021

1. Accounting policies (continued)

Basis of allocation of costs

Support costs are contributions from Boots UK Limited and Boots Management Services Limited, which is an approximation, based on separately identifiable costs, in respect of managing and administering the Trust. Governance costs comprise all costs involving its compliance with constitutional and statutory requirements. These costs include costs related to statutory audit. All support costs and governance costs are allocated to charitable activities on the basis of time spent on these activities.

Grants

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trust as stated in the Trustees’ Report.

Fund accounting

All funds are unrestricted. These are funds which are expendable at the discretion of the Trustees in furtherance of the objectives of the Trust.

Taxation

The company is a registered charity and has no liability to corporation tax on its charitable activities under the Corporatio n Tax Act 2010 (chapters 2 and 3 of part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the Trust’s accounting policies, which are described in note 1, the Trustees are required to make jud gements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estima tes and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estim ates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure.

3. Income from donations

Boots Charitable Trust is an independent registered charity wholly funded by Boots UK Limited and Boots Management Services L imited.

	2021	2020
	£	£
Company donations	250,000	236,437
Donated services (seenote4)	**16,834 **	17,775
	266,834	254,212
	~~834~~

4. Support costs and governance costs

Included within donations is £16,834 (2020: £17,775) from Boots UK Limited and Boots Management Services Limited in respect of managing and administering the Trust. This is an approximation based on separately identifiable costs and includes audit fees of £3,500 (2020: £3,500). There are no fees payable to the Trust’s auditor for non-audit services (2020: £nil). Governance costs of £3,500 (2020: £3,500) consist of the audit fee.

5. Analysis of charitable expenditure

		Support/
	Grants funded	Governance	2021
	activity	costs	Total
	£	£	£
Charitable activities	250,000	16,834	266,834
	Grants funded activity £	Support/ Governance Costs £	2020 Total £
Charitable activities	250,000	17,775	267,775

No grants were awarded to individuals in the current or preceding year.

Analysis of grants awarded during the year

All grants are agreed at bi-monthly meetings of the Trustees. During the year major grants amounted to £250,000 (2020: £250,000) and were made to 31 beneficiaries (2020: 28).

11

Boots Charitable Trust

Notes to the financial statements (continued)

for the year ended 31 August 2021

5. Analysis of charitable expenditure (continued)

A list of the awards donated during the year is set out below.

	2021
**Health **	£
NIDAS	10,000
Dance4	10,000
Trent Bridge Community Trust	10,000
Reach Learning Disability	9,987
HOST Nottingham	9,900
Nottingham CYF Project	4,712
HUMEN	4,080
Downs Syndrome Association	2,500
8grants(2020: 11grants totalling£101,957)	61,179
	2021
CommunityDevelopment	£
Refugee Roots	10,000
Jericho Road Project	9,568
The Friary	9,552
KidsOut UK	2,520
4grants (2020: 3grants totalling£29,424)	31,640
	2021
Lifelong Learning	£
Newark and Sherwood CVS	10,000
Literacy Volunteers	9,750
Community Recording Studio	8,956
First Story	8,925
ReadEasyNottingham	2,000
5 grants(2020: 5 grants totalling £49,192)	39,631
	2021
Social Care	£
Spectrum WASP	10,000
Hope Community Services	10,000
Broxtowe Women's Project	10,000
PASIC - Cancer Support for Children and Young People	10,000
Defence Medical Welfare Service (DMWS)	9,738
Safe Families for Children	9,667
Epic Partners	9,560
Framework	8,750
Nottingham Playhouse	8,463
Footprints Conductive Education Centre Ltd	7,054
Home-Start Nottingham	7,000
Open Minds	6,698
Good Vibrations	6,220
Good Companions	4,400
14 grants(2020: 9 grants totalling £69,427)	117,550

6. Trustee Remuneration

No Trustee has received or waived any remuneration or expenses for their services to the Trust durin g the year (2020: £nil).

7. Employee numbers and costs

The Trust has no employees (2020: none).

12

Boots Charitable Trust

Notes to the financial statements (continued)

for the year ended 31 August 2021

8. Creditors: amounts falling due within one year

	2021	2020
	£	£
Accruals	45,079	42,344

Creditors falling due within one year represent grants amounting to £45,079 (2020: £42,344) which were awarded during the year but not paid at the year end.

9. Related parties

Boots Charitable Trust is a wholly owned charitable company within the Walgreens Boots Alliance, Inc. Group. All companies within the Group are a related party to the Trust.

During the year, the Trust received a grant of £250,000 (2020: £236,437) and donated services to the value of £16,834 (2020: £17,775) from a related company, Boots UK Limited (a wholly owned subsidiary within the Group). Amounts due to/from Boots UK Limited at the year-end were £nil (2020: £nil).

10. Post balance sheet events

Following the outbreak during the previous financial year, COVID-19 has continued throughout the year and after the balance sheet date, including the identification of the new Omicron strain. Whilst restrictions have eased and the government's immunisation programme has been deemed successful, there remains some uncertainty relating to COVID-19. The Trustees do not consider this to have any significant impact on the Trust’s future nor the understanding of these financial statements.

11. Commitments

At the balance sheet date, there are no grants to which the Trust was committed to making that have not been provided for (2020: none).

12. Ultimate parent undertaking

The Trust has no share capital and is limited by guarantee of the members. At 31 August 2021 the Company's immediate holding companies were Alliance Boots Holdings Limited and Walgreens Boots Alliance Services Limited and its ultimate parent company and controlling party was Walgreens Boots Alliance, Inc. Walgreens Boots Alliance, Inc. is also the parent undertaking of the largest and smallest group in which the Trust is consolidated. The consolidated financial statements of this group are available from the Walgreens Boots Alliance website at www.walgreensbootsalliance.com.

Walgreens Boots Alliance, Inc. is incorporated in the United States of America, and its principal and registered office address is 108 Wilmot Road, Deerfield, Illinois, 60015. The principal purpose of Walgreens Boots Alliance is to help people across the world lead healthier and happier lives, and the principal activity is retail.

13