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CHK FOUNDATION
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2021
Company Number: 03130170 (England and Wales)
Charity Number: 1050900
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Page 1
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CHK FOUNDATION
CONTENTS
Page
Company Information 2
Report of the Trustees 3-7
Independent Auditors’ Report 8-10
Statement of Financial Activities (SOFA) 11
Balance Sheet 12
Statement of Cashflows 13
Notes forming part of the Financial Statements 14-27
Constitution CHK FOUNDATION is a company limited by guarantee and a registered charity
Charity number 1050900
Company number 03130170
Registered office c/o Price Bailey LLP, 24 Old Bond Street, London, United Kingdom, W1S 4AP
Correspondence Address PO Box 277, Royston, SG8 1EX
Investment managers Sarasin & Partners LLP
Juxon House, 100 St Paul's Churchyard, London, EC4M 8BU
Schroder & Co. Limited
1 London Wall Place, London EC2Y 5AU
Bankers Lloyds Bank plc
PO Box 1000, BX1 1LT
Independent auditors Price Bailey LLP, Tennyson House, Cambridge Business Park, Cowley Road,
Cambridge CB4 OWZ
Website www.chkfoundation.org.uk
Directors and trustees
The directors of the charitable company ("the Charity") are its trustees for the purpose of charity law and
throughout this report are referred to interchangeably as directors or trustees. As set out in the Articles of
Association, the chairman of the trustees is elected by the trustees by majority vote. The trustees of the Charity
may by ordinary resolution appoint a person who is willing to act, to be a trustee, either to fill a vacancy or as an
additional trustee.
The trustees serving during the year and since the year end: -
Mrs K S Loyd (Chair of the Board of Trustees)
Mrs D F Acland
Ms Ede Castro Peake Appointed 17 June 2020
Mr C Kirwan-Taylor
Mrs LH Morris
Miss P S Morris
Mrs C Peake Appointed 17 June 2020
Dr E Peake
Mrs S Peake Retired 13 January 2021
Mrs JAS Prest
Mr R Prest
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CHK FOUNDATION
(A Company Limited by Guarantee)
REPORT OF THE TRUSTEES, INCORPORATING A DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 JANUARY 2021
The trustees (who are also directors of the Charity for the purposes of the Companies Act 2006) are pleased to
present their report together with the financial statements of the Charity for the year ended 31 January 2021.
Company information set out on page 2 forms part of this report. The Financial Statements comply with the
Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and
Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their Financial
Statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland
(FRS 102).
Structure, governance and management
CHK Foundation (previously CHK Charities Limited) was incorporated on 20 November 1995 as a private company
limited by guarantee under a Memorandum of Association dated 17 November 1995. CHK Foundation was
registered as a charity on 22 November 1995.
The Charity's objectives are to promote and support, as the trustees shall in their discretion decide, such charitable
purposes and such charitable organisations as are exclusively charitable according to the law of England. CHK
Foundation operates as a grant-making charity, with no direct operating activity of its own.
The Board met formally on four occasions in the year to receive and review reports of the three subcommittees
of the Board; the Governance Committee, the Finance and Investment Committee, and the Grant Making
Committee. All the trustees sit on one or more of the subcommittees. During the pandemic lockdown periods,
the Board and subcommittee meetings were online.
Day to day management and administration of the Charity is delegated to the experienced Executive Director. She
is responsible for all operational matters and for helping in the delivery of the overall strategy set by the trustees.
The Executive Director reports directly to the Chair of the Board, has regular update discussions with Chair and
attends all subcommittee and Board meetings.
The performance and salary of the Executive Director is reviewed annually by the Governance Committee. Any
recommendation for a pay increase is presented to the full Board for approval when it agrees the annual budget.
In making any recommendation, the Governance Committee takes account of cost-of-living rises and inflation,
external benchmarking data, and the Executive Director’s performance and contributions to the Charity’s work.
Risk management
The trustees review and consider risks on a regular basis. During the year, the trustees regularly considered the
implications of the COVID-19 pandemic on operations. As the year progressed, it became apparent that the
Charity did not face any significant new risks. At subcommittee and Board meetings the trustees monitor a risk
register, and check that the steps put in place to mitigate risks are operating as intended.
Key risks are as identified in the prior year and as listed below, along with the processes in place to mitigate the
risks:
Poor investment performance: mitigated by retaining two separate, expert investment managers both operating
a diversified portfolio, with their performance monitored on a regular basis
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CHK FOUNDATION
(A Company Limited by Guarantee) REPORT OF THE TRUSTEES, INCORPORATING A DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 JANUARY 2021
Fraud: mitigated by control systems including segregation of duties, all payment authorisation undertaken by at least two people, and ensuring that donations are made to the independently verified bank accounts of registered charities Business interruption: the reliance placed on key staff and key systems (such as IT, accounting and banking) is noted, and the risks of business interruption through loss of these key aspects of operational capacity are appreciated. The risks are mitigated by using online services (which are updated and backed up on an ongoing basis), ensuring the trustees have a working knowledge of, and access to, the key systems, and maintaining thorough policies and procedures documentation.
Reserves Total reserves of the Charity at the 31 January 2021 were £138,578,215 (2020; £131,784,711), with an expendable endowment fund of £136,719,193 (2020; £130,148,233) and unrestricted funds of £1,859,022 (2020; £1,636,538)
The trustees reviewed and revised the Reserves Policy in the year. The Policy defines the funds detailed below.
Unrestricted General Fund
Cash returned by the Investment Managers from the total return generated from the investment portfolio in accordance with the Investment Policy is transferred to the Unrestricted General Fund. The aim is to apply all the cash received for grant making purposes, to maintain the Designated Funds, and to meet operational costs.
At the year end, the target is to hold a sum in the Unrestricted General Fund to cover outstanding grant commitments of £400,000 (2020; £1,431,759), as listed in Account Note 3
As in the prior year, due to accumulated unspent income from prior years, the Unrestricted General Fund was in excess of year end grant commitments. At 31 January 2021, the excess had been reduced to just over £500,000 and it is planned to continue to reduce this excess in the year to 31 January 2022.
~~Designated Funds~~
e AnEmergency/Disaster Fund to support selected national and international disaster/emergency appeals. The trustees have set a planned annual spend from this Fund of up to £300,000. In the year, the opening balance on the Fund was used for grant making purposes. Going forward, the Fund will be increased up to £300,000 from current year income.
e A Social Investment Fund to offer repayable finance to charities and social purpose organisations that are working to tackle social issues of interest to the trustees. In the year £780,000 (2020; Nil) was transferred to the Social Investment Fund.
e A CHK Mission Fund to offer support for the protection of the environment. The trustees have set a planned annual spend from this Fund of up to £100,000. The trustees have agreed to add a further £100,000 to this Fund for the next two financial years from income received in the next two financial years. In the year £100,000 (2020; £100,000) was spent from the CHK Mission Fund.
Objective, activities, achievements and public benefit The Charity's objective is to offer support to charitable organisations considered by the trustees to be undertaking valuable, effective work. As a grant making charity, the Charity delivers its objective by providing financial support.
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e = their involvement in the criminal justice system
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CHK FOUNDATION
(A Company Limited by Guarantee)
REPORT OF THE TRUSTEES, INCORPORATING A DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 JANUARY 2021
The investment exposure at the year-end was approximately 1% (2020; 6%) to cash, 11% (2020; 9%) to fixed
interest markets, 5% (2020; 5%) to property, 6% (2020; 5%) to alternative assets and the balance of 76% (2020;
75%) invested in equity markets.
Investment performance
The value of the investments increased in the year from £130,229,822 to £136,811,805, an increase of 5.05%
(2020; 13.5%).
The cash returned to the Charity from the investment portfolios was cautiously restricted to £2,975,000. This is
just under the target £3m and the restriction was due to initial concerns about the impact of the COVID-19
pandemic on dividend payments.
The growth in year-end value of the investments taking into account the actual cash of £2,975,000 returned to
the Charity was 7.34% ([136,811,805+2,975,000]/130,229,822) which is ahead of the growth target of 5.2% (CPI
of 0.7%+4.5%). The trustees are happy with this performance.
During the year, the Charity’s Finance and Investment Committee held online meetings with the two investment
managers to discuss and review the portfolio’s investment performance.
Fundraising
The Charity's income is derived from the investments held. No activities are undertaken by the Charity or by any
person on behalf of the Charity for the purpose of fundraising, and in particular no professional fundraiser or
commercial participator have carried on any such activities.
Neither the Charity nor any person acting on behalf of the Charity was subject to an undertaking to be bound by
any voluntary scheme for regulating fundraising, or any voluntary standard of fundraising, in respect of activities
on behalf of the Charity. In light of this, there was no failure to comply with a scheme or fundraising standard,
and there was no requirement for any monitoring of activities carried on by any person on behalf of the Charity
for the purpose of fundraising.
No complaints have been received by the Charity or a person acting on its behalf about activities by the Charity or
by a person on behalf of the Charity in connection with fundraising.
Whilst the trustees are aware and supportive of the need to protect vulnerable people and other members of the
public from any fundraising activities that potentially puts people at risk, as the Charity does not undertake any
fundraising, the trustees are confident that no one was put at risk from inappropriate fundraising activities of the
Charity.
Plans for the Future
Up to 31 January 2024, the trustees are following the 5-year grant strategy established in 2019. Under the strategy
the Charity will seek to build relationships and offer ongoing support to a limited number of charities that are
working to improve the lives and prospects of young people at risk.
At the end of the 5-year timeline, a new grant strategy may be implemented, unless there is support from a
majority of trustees to continue with the current focus.
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Katharine Lo d y
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CHK FOUNDATION
(A Company Limited by Guarantee)
Independent Auditor’s Report to the Members of CHK Foundation
Opinion
We have audited the financial statements of CHK Foundation (the ‘charity’) for the year ended 31 January 2021
which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, 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 Financial
Reporting Standard 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:
e give a true and fair view of the state of the charity’s affairs as at 31 January 2021, and of its incoming
resources and application of resources, including its income and expenditure, for the year then ended;
e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
and
e have been prepared in accordance with the requirements of the Companies Act 2006.
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 ofthe [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 charity's ability to continue as a going
concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the
relevant sections of this report.
Other information
The other information comprises the information included in the 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.
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CHK FOUNDATION
(A Company Limited by Guarantee)
Independent Auditor’s Report to the Members of CHK Foundation (continued)
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
e the information given in the trustees’ report for the financial year for which the financial statements are
prepared is consistent with the financial statements; and
e the trustees’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of
the audit, we have not identified material misstatements in trustees’ report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report
to you if, in our opinion:
e adequate and proper accounting records have not been kept for the charitable company, or returns
adequate for our audit have not been received from branches not visited by us; or
e =the financial statements are not in agreement with the accounting records and returns; or
e 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; or
e the trustees’ were not entitled to prepare the financial statements in accordance with the small
companies regime and take advantage of the small companies’ exemptions in preparing the trustees’
report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control
as the trustees determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
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 specific procedures for this engagement and the extent to which these are capable of
detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the charity and how it operates
and considered the risk of the charity not complying with the applicable laws and regulations including fraud in
particular those that could have a material impact on the financial statements. This included those regulations
directly related to the financial statements. In relation to the charity this included employment law, financial
reporting and health & safety.
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18 May 2021
CHK FOUNDATION
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (Incorporating income and expenditure account) FOR THE YEAR ENDED 31 JANUARY 2021 Note Expendable Total Total Unrestricted Endowment 2021 2020 Funds Fund £ £ £ £ and endowments Investment Income 2 2,940,772 - 2,940,772 3,024,478 Income 2 1,528 - 1,528 3,959 income and endowments 2,942,300 - 2,942,300 3,028,437
Income and endowments
Investment Income
Other Income
Total income and endowments
Expenditure
Cost of raising funds:
Investment management fee - (549,949) (549,949) (480,673) Expenditure on charitable activities: Grants 3 (2,652,500) - (2,652,500) (3,781,674) Support costs 4 (101,544) - (101,544) (110,708) Total expenditure (2,754,044) - (3,303,993) (4,373,055) Net et iincome/(expenditure)dit befbefore 188,256 (549,949) (361,693) (1,344,618) gains and losses on investments Net gain on investments 7 - 7,826,658 7,826,658 16,756,225 Net (loss)/gain on currency - (671,521) (671,521) 452,355 Net movement in funds in the year 188,256 6,605,188 6,793,444 15,863,962 Transfer between Funds 10 34,228 (34,228) - - 222,484 6,570,960 6,793,444 15,863,962 Funds At 1 February 2020 1,636,538 130,148,233 131,784,771 115,920,809 Net movement in funds in the year 222,484 6,570,960 6,793,444 15,863,962 At 31 January 2021 1,859,022 136,719,193 138,578,215 131,784,771
The statement of financial activities includes all gains and losses recognised in the year. All transactions are derived from continuing activities.
Page 11
Katharine Lo d y
(Apr 20, 2021, 4:26pm)
CHK FOUNDATION
(A Company Limited by Guarantee)
STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 JANUARY 2021
Note 2021 2020 Cash flows from operating activities: £ £ Net cash used in operating activities 14 (5,005,554) (3,024,306)
Cash flows from operating activities:
Cash flows from investing activities:
Investment Income 2,942,300 3,028,437 Proceeds from sale of investments 29,306,535 75,553,393 Purchases of investments (34,880,420) (71,743,923) Purchases of tangible fixed assets - (2,396) investing activities (2,631,585) 6,835,511 equivalents during the year (7,637,139) 3,811,205 brought forward 10,953,186 7,141,981 equivalents (7,637,139) 3,811,205 carried forward 13 3,316,047 10,953,186
Proceeds from sale of investments 29,306,535
Net cash (used)/provided by investing activities
Change in cash and cash equivalents during the year
Cash and cash equivalents brought forward
Change in cash and cash equivalents
Cash and cash equivalents carried forward 13
Analysis of changes in net debt
At start of the year Cashflows Other non-cash changes At end of the year £ £ £ £ Cash 3,059,434 (818,579) - 2,240,855 Cash equivalents 7,893,752 (6,818,560) - 1,075,192 10,953,186 (7,637,139) - 3,316,047
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
1. Accounting policies
These financial statements have been prepared in accordance with the particular accounting policies described
below.
The Charity is registered in England and Wales. The address of the Charity’s registered office is shown on page 1.
Basis of preparation and assessment of going concern
The financial statements have been prepared under the historical cost convention except for investments, which
have been included at market value. The financial statements have been prepared in accordance with the
Statement of Recommended Practice: Accounting and Reporting by Charities preparing their Financial Statements
in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)
(Charities SORP (FRS 102)), version 2, the Companies Act 2006 and the Charities Act 2011.
The financial statements are presented in sterling, which is the functional currency of the Charity.
The operations of the Charity have been largely unaffected by the restrictions put in place by the UK Government
in response the COVID-19 pandemic. The one member of staff, the Executive Director, previously worked from
home and so no change has been required for continuing operations.
Legal status of the Charity
There is no share capital as the company is limited by guarantee. The number of members during the year was 11
(2020; 9). Each member has guaranteed an amount, not exceeding £10 (ten pounds), towards the company’s
liabilities in the event of a winding up, provided that a member has not ceased to be a member one year prior to
any winding up order.
Basis of accounting
- Income recognition
All income is included in the Statement of Financial Activities when the Charity is legally entitled to the income,
receipt is probable, and the amount can be quantified with reasonable accuracy. Income tax recoverable in
relation to investment income is recognised at the time investment income is 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. Dividends are recognised once the dividend has been
declared and notification has been received of the dividend due.
- Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the
Charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can
be measured reliably. All expenditure is accounted for on an accruals basis and has been included under expense
categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to
activities, they have been allocated on a basis consistent with the use of the resources.
Grants payable are charged in the year when the offer is made and communicated to a third party to create a
constructive obligation except in those cases where the offer is conditional, such grants being recognised as
expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been
met at the year-end are noted as a commitment, but not accrued as expenditure.
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
Expenditure on charitable activities comprises the cost of grants awarded, support and governance costs of the
running of the Charity. Governance costs compromise the cost of complying with constitutional and statutory
requirements.
Fund accounting
Income funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of
the general objectives of the Charity. Designated funds are established from unrestricted funds and maintained
at the discretion of the trustees and used as set out in Account Note 10.
Capital funds comprise expendable endowments, whereby there is no requirement to spend the capital unless, or
until, the Charity trustees decide to do so. These funds are invested to produce unrestricted income which can be
spent in accordance with the charitable objectives.
Tangible fixed assets
Depreciation is calculated to write-offthe cost of tangible assets on a straight-line basis over their estimated useful
economic lives as follows:
IT and Computer equipment: 3 years
Investments
Investments held will be included in the Financial Statements at Fair value which is the bid price at the balance
sheet date. Investments include cash held for investment purposes. Income shall be applied solely towards the
promotion of the Charity's objects.
Realised and unrealised gains and losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on
investments are calculated as the difference between sales proceeds and their opening carrying value or their
purchase value if acquired after the first day of the financial year. Unrealised gains and losses are calculated as the
difference between the fair value at the year end and their carrying value.
Debtors
Other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.
Cash at bank
Cash at bank 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 accounts.
Creditors
Creditors are recognised where the Charity has a present obligation resulting from a past event that will result in
the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated
reliably. Creditors are normally recognised at their settlement amount.
Significant Estimates and Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances. The trustees
make estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will,
by definition, seldom equal the related actual results. These include depreciation, debtor recoverability and bad
debts. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year.
Financial instruments
The Charity 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 fair
value. Fixed assets are recorded at depreciated historical cost, investments are recorded at the bid value at the
year-end date and all other assets and liabilities are recorded at cost which is their fair value. For details of the
asset classes held, see Account Note 7.
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate of
exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded using the rate of
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
exchange ruling at the date of the transaction. Exchange gains and losses are recognised in the Statement of Financial Activities.
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2. Income
2021 2020
£ £
Dividend and other interest income 2,940,772 3,008,241
Bank interest 1,528 16,237
Other income (return of grant) - 3,959
2,942,300 3,028,437
Split of Dividend and other interest income between asset class and geography
2021 2020
UK Overseas TOTAL UK Overseas TOTAL
£ £ £ £ £ £
Equities 553,041 1,672,692 2,225,733 732,897 1,334,921 2,067,818
Fixed Income 327,675 21,452 349,127 437,318 - 437,318
Multi Asset Funds 2,338 - 2,338 10,622 - 10,622
Property 233,375 19,159 252,534 225,674 122,109 347,783
Other 115,040 - 115,040 144,700 - 144,700
2,940,772 3,008,241
3. Grants
2021 2020
£ £
Grants payable at start of year 1,431,759 500,000
Grants offered in the year (SOFA and Note 16) 2,652,500 3,781,674
Grants paid in the year (3,684,259) (2,849,915)
Grants payable at end of year (Note 9) 400,000 1,431,759
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
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FOR THE YEAR ENDED 31 JANUARY 2021
4. Support costs
2021 2020
Grant Support Grant Support
Making /Governance Totalora Making /Governance Totalora
£ £ £ £ £ £
SG Kleinwort Hambros Trust - - - 6,626 1,656 8,282
Charity (UK) Ltd Fee
Independent Auditors’ Fee - 9,360 9,360 - 7,440 7,440
Accountant’s fee - 900 900 - 1,440 1,440
Legal Fees - 342 342 - 6,569 6,569
Consultant fees 4,920 - 4,920 - - -
Subscription to the Association of - 5,000 5,000 - 4,880 4,880
Charitable Foundations
Depreciation 180 220 400 360 439 799
Travel, Training and Meeting Costs 4,108 5,022 9 130 1,517 1,853 3,370
Bank charges 377 461 3838 264 323 587
Staff Costs (Note 5) 30,061 36,742 66,803 32,082 39,211 71,293
Insurance 283 346 629 279 341 620
Website and IT Costs 414 507 921 1,286 1,571 2,857
Other Office Costs 1,035 1,266 2,301 1,157 1,414 2,571
Total Support Costs 41,378 60,166 101,544 43,571 67,137 110,708
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For all costs highlighted with an asterisk, the split of 45/55 is based on the allocation of staff time to Grant Making and Support/Governance respectively. The fee paid to SG Kleinwort Hambros Trust Charity (UK) Limited in the year to 31 January 2020 was for the administration support they provided up to July 2019, with the sum split 80/20 between Grant Making and Support/ Governance. 5. Staff Costs and Numbers 2021 2020 £ £ Staff costs were as follows: Salaries and wages 61,500 60,125 Social security costs 3,458 3,518 Pension 1,845 7,650
2021 2020 £ £ 61,500 60,125 3,458 3,518 1,845 7,650 66,803 71,293
Key management. The Executive Director is the Charity's only employee. The number of staff earning in the range £60,000 - £70,000 in the year was 1 (2020; 1). Page 17
CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
- Tangible Fixed Assets
2021 2020 IT and Computer Total IT and Computer Total Equipment Equipment Cost £ £ £ £ At start of year 2,396 2,396 - - Additions in the year - - 2,396 2,396 At end of year 2,396 2,396 2,396 2,396 Depreciation At start of year 799 799 - - Charge for the year 400 400 799 799 At end of year 1,199 1,199 799 799 Net book value at end of year 1,197 1,197 1,597 1,597 7. Investments 2021 2020 £ £ Market value brought forward 122,336,070 109,389,315 Purchases 34,880,420 71,743,923 Disposal Proceeds (29,306,535) (75,553,393) 127,909,955 105,579,845 Net gain on investments 7,826,658 16,756,225 Market value 135,736,613 122,336,070 Cash on deposit account (Note 13) 1,075,192 7,893,752 Total investments 136,811,805 130,229,822
Historical cost of investments: £109,009,955 £114,659,328 Investments by asset class split between UK and overseas 2021 2020 UK Overseas TOTAL UK Overseas TOTAL £ £ £ £ £ £ Equities 14,451,154 90,021,326 104,472,480 17,717,592 80,589,972 98,307,564 Fixed Income 14,044,770 1,548,904 15,593,674 10,934,596 1,314,438 12,249,034 Property 5,989,332 1,442,609 7,431,941 4,624,875 1,482,736 6,107,611 Other 4,044,907 4,193,611 8,238,518 4,406,196 1,265,665 5,671,861
38,530,163 97,206,450 135,736,613 37,683,259 84,652,811 122,336,070 Cash 1,075,192 - 1,075,192 7,893,752 - 7,893,752 Total ~~39,605,355 97,206,450 136,811,805 45,577,011 84,652,811 130,229,822~~ Page 18
CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
- Debtors
Accrued interest
- Creditors Amounts falling due within one year Accruals Grants payable Other creditors
Amounts falling due after more than one year Grants payable
2021 2020 £ £ 45,432 55,455 45,432 55,455 2021 2020 £ £ 119,127 116,644 375,000 1,346,759 1,947 13,134 496,074 1,476,537 £ £ 25,000 85,000 25,000 85,000
- Movement in funds
Balance Income — Expenditure Transfers Balance 1 February 2020 and Gains 31 January 2021 £ £ £ £ £ Funds Expendable Endowment 130,148,233 7,155,137 (549,949) *(34,228) 136,719,193 Unrestricted General 1,336,538 2,942,300 (2,354,044) (845,772) 1,079,022 Designated Funds Emergency/Disaster Fund 300,000 - (300,000) - - Social Investment Fund - - - 780,000 780,000 CHK Mission Fund - - (100,000) 100,000 - Total 131,784,771 10,097,437 (3,303,993) - 138,578,215 Balance Income Balance 1 February 2019 and Gains Expenditure Transfers 31 January 2020 Funds £ £ £ £ £ Expendable Endowment 112,939,653 17,208,580 - - 130,148,233 Unrestricted General 2,981,156 3,028,437 (4,303,055) (370,000) 1,336,538 Designated Fund Emergency/Disaster Fund - - (70,000) 370,000 300,000 Total 115,920,809 20,237,017 (4,373,055) - 131,784,771
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
The movement of *£34,228 from the Expendable Endowment Fund to the Unrestricted General Fund represents the difference in Dividend and other interest income of £2,940,772 (Account Note 2) recorded in the Unrestricted General Fund, and the cash transferred by the investment managers from the Expendable Endowment Fund, in line with the Charity Investment Policy. The actual cash transferred was £2,975,000, leading to the movement between the Funds of £34,228 (£2,975,000 - £2,940,772). The cash transfer £2,975,000 was slightly less that the target annual transfer of £3m set out in the Investment Policy as a cautious reduction was considered appropriate in light of uncertainties about the impact of the COVID-19 pandemic on dividend payments.
The Expendable Endowment Fund is represented by investments listed on recognised Stock Exchanges.
The Unrestricted General Fund is used for grant making purposes, to maintain the Designated Funds, and to meet operational costs.
Designated Funds The Emergency/Disaster Fund is used to support selected national and international disaster/emergency appeals. In the year, the Fund offered support to help address some of the major social issues that arose in the UK due the COVID-19 pandemic.
The Social Investment Fund will offer repayable finance to charities and social purpose organisations that are working to tackle social issues of interest to the trustees.
The CHK Mission Fund is used to offer grants for the protection of the environment.
- Analysis of net assets between funds Expendable Unrestricted Endowment Total 2021 £ £ £ 92,612 136,719,193 136,811,805 Assets 1,197 - 1,197 assets 2,286,287 - 2,286,287 (521,074) - (521,074) 1,859,022 136,719,193 138,578,215 Expendable Unrestricted Endowment Total 2020 £ £ £ 51,589 130,178,233 130,229,822 Assets 1,597 . 1,597 assets 3,144,889 - 3,144,889 (1,561,537) - (1,561,537) 1,636,538 130,178,233 131,784,771
Investments
Tangible Assets
Current assets Liabilities Investments
Tangible Assets Current assets Liabilities
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
12. Related party transactions and trustees’ expenses and remuneration
No remuneration was paid to the trustees during the year (2020; Nil).
No travel expenses were reimbursed to trustees (2020; £743 paid to one trustee)
A donation of £245,000 (2020; £195,000) was made to the Charities Aid Foundation to be allocated to the personal
CAF accounts of the trustees and a small number of other descendants of the founder of CHK Foundation. These
CAF accounts can only be used by the account holder to make charitable donations. This transfer to CAF accounts
therefore allows a small proportion of the grant making of CHK Foundation to efficiently reach typically smaller,
local charitable projects, that are of interest to the trustees.
MrsKSLoyd- - Trustee 2021; £30,000 (2020; £30,000)
Mrs D F Acland - Trustee 2021; £30,000 (2020; £30,000)
Mrs LH Morris - Trustee 2021; £30,000 (2020; £30,000)
Miss P S Morris - Trustee 2021; £20,000 (2020; £20,000)
Dr E Peake - Trustee 2021; £20,000 (2020; £20,000)
MrsJASPrest - Trustee 2021; £20,000 (2020; £20,000)
Mr R Prest - Trustee 2021; £20,000 (2020; £20,000)
Mrs SE Acland (daughter of the founder) 2021; £5,000 (2020; £5,000)
Mr R Baillieu (grandson of the founder) 2021; £5,000 (2020; £5,000)
MrHAcland (grandson of the founder) 2021; £5,000 (2020; £5,000)
Miss C Gwynne (granddaughter of the founder) 2021; £5,000 (2020; £5,000)
MrsLHardy (granddaughter of the founder) 2021; £5,000 (2020; £5,000)
Mr N Assheton (great grandson of the founder) 2021; £5,000 (2020; Nil)
Ms M Assheton (great granddaughter of the founder) 2021;£5,000 (2020; Nil)
Mrs L Morris, one of the trustees, and Ms J Darlington, the Executive Director of CHK Foundation, have trustee
roles with four of the grant recipients detailed below. These trustee roles were declared before the decision to
offer the grants. Mrs Morris took part in the trustees’ discussion and decision making about the grants.
Grants Made
The Amber Foundation 2021; £75,000 (2020; £100,000)
Break 2021; £50,000 (2020; £100,000)
KAA Intrepidus Trust 2021; NIL (2020; £40,000)
Nordoff-Robbins Music Therapy 2021; NIL (2020; £20,000)
Mr C Kirwan-Taylor, trustee of CHK Foundation, is the Chairman of Cure3, an art event which raises funds for the
Cure Parkinson’s Trust. CHK Foundation made a donation to Cure Parkinson’s Trust of £30,000 (2020; £50,000).
There are no other related party transactions (2020; no other related party transactions).
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
- Cash and cash equivalents
2021 2020 £ £ 2,240,855 3,059,434 1,075,192 7,893,752 3,316,047 10,953,186 operating activities 2021 2020 £ £ 6,793,444 15,863,962 (2,942,300) (3,028,437) (7,826,658) (16,756,225) 400 799 10,023 (3,810) (1,040,463) 899,405 (5,005,554) (3,024,306)
Cash at bank Cash on deposit account (Note7)
- Reconciliation of net movement in funds to net cash flow used in operating activities
Net movement in funds (SOFA) Deduct income from investing activities (SOFA) Deduct net gain on investments (SOFA) Depreciation charge (Note 6)
Movement in debtors
Movement in creditors
Net cash used in operating activities
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
- Comparative Statement of Financial Activities for the year ended 31 January 2020
Income and endowments
Investment Income
Other Income
Total income and endowments
Expenditure
Cost of raising funds:
Investment management fee
Expendable Total Unrestricted Endowment 2020 Funds Fund £ £ £ 3,024,478 - 3,024,478 3,959 - 3,959 3,028,437 - 3,028,437 480,673 - 480,673
Expenditure on charitable activities: Grants
Grants 3,781,674 - 3,781,674 Support costs 110,708 - 110,708 Total expenditure 4,373,055 - 4,373,055 Net (exper(expenditure)) before 8 gains and (1,344,618) - (1,344,618) losses on investments
Net gain on investments
Net gain on currency
Net movement in funds in the year
Funds
At 1 February 2019 Net movement in funds in the year At 31 January 2020
- 16,756,225 16,756,225 - 452,355 452,355 (1,344,618) 17,208,580 15,863,962 2,981,156 112,939,653 115,920,809 (1,344,618) 17,208,580 15,863,962 1,636,538 130,148,233 131,784,771
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
16. Grants offered in the year
Grants to charitable institutions
2021 2020
£ £
Access Project - 20,000
Action on Addiction - 30,000
Adolescent and Children’s Trust, The - 15,000
Amber Foundation, The 75,000 100,000
Aquarius Action Projects 25,000 45,000
Ark Resettlement Services 30,000 15,000
Ashmolean Museum - 20,000
Auditory Verbal Centre, The 50,000
Baca Charity, The 50,000 25,000
Bags of Taste 10,000
Beat - 75,000
Become 40,000 25,000
Best Beginnings - 25,000
Big Change 25,000 -
Big Give Trust, The - 26,250
Botanic Gardens Conservation International 10,000 -
Branch Trust 50,000 -
Break 50,000 100,000
Bristol Drugs Project Ltd 30,000 30,000
British Museum, The 1,500 1,500
British Wheelchair Sports Foundation Limited, The - 20,000
BYHP (Supporting Young People in Housing Need) 5,000 -
Camara Education UK Limited - 25,000
Caraline: Eating Disorders Counselling and Support Service - 5,000
Carefree - Fostering Independence Cornwall 40,000 25,000
Chance to Shine - 10,000
Charities Aid Foundation 245,000 195,000
Charlie Waller Memorial Trust 50,000 50,000
Cheltenham Festivals 20,000 -
Childhood Trust 65,000 -
Chipping Camden Music Festival 5,000 -
City Harvest 10,000 -
Clean Rivers Trust 20,000 10,000
Cleanup United Kingdom 10,000 5,000
Client Earth 25,000 -
Climate Change Crisis 20,000 -
Clinks - 500
Clonter Farm Music 20,000 20,000
Compassion in Dying - 50,000
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
Cool Earth Action - 75,000
Cornwall Partnership Foundation Trust Charitable Fund - 10,000
Coroner's Court Support Service, The 20,000 -
Cotswold Canals Trust, The - 50,000
Countryside Learning - 30,000
County of Gloucestershire Community Foundation 25,000 -
Criminon UK - 10,000
Cumbria Alcohol and Drug Advisory Service 25,000 25,000
Cure Parkinson's Trust, The 30,000 50,000
Dancers' Career Development 10,000 -
David Nott Foundation - 25,000
Developing Health & Independence - 50,000
Drive Forward Foundation 40,000 25,000
Early Break 30,000 30,000
English National Ballet - 10,000
English Stage Company Limited, The - 5,000
Exeter Royal Academy for Deaf Education - 20,000
Family Links - 50,000
Fine Cell Work 10,000 10,000
Food4Heroes 5,000 -
Forest Peoples Programme 50,000 40,000
Forward Trust, The 60,000 50,000
Friendship Café, The - 10,000
Global Canopy 25,000 25,000
Good Things Foundation 12,000 -
Great Western Air Ambulance Charity 5,000 -
Grove Trust 40,000 -
HACRO - 15,000
Hampshire and Isle of Wight Community Foundation 20,000
Hands Up Foundation 25,000 25,000
Healthworkers Support Foundation, The 5,000 -
Helpforce Community Trust 25,000 -
Home-Start Birmingham North and Inner City 10,000 -
Institute for Philanthropy, The 10,000 -
International Rescue Committee 25,000 -
James' Place Charity - 30,000
Jamie's Farm - 20,000
Jangala Communications Systems 2 Limited 20,000 20,000
KAA Intrepidus Trust - 40,000
Key 4 Life 50,000 50,000
Khulisa - 30,000
Leap Confronting Conflict 25,000 50,000
Longborough Church of England Primary School 10,000 -
Longborough Festival Opera 10,000 -
Making It Out 10,000 10,000
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
Margaret Pyke Foundation 50,000 85,000
Mary Hare Foundation 50,000 -
Mental Health Innovations 75,000 75,000
Mission Employable - 90,000
Moorfields Eye Charity 5,000 -
Museum of Modern Art Limited - 30,000
Music Works, The - 50,000
National Emergencies Trust 92,000 -
National Migraine Centre 60,000 -
National Opera Studio - 45,000
Nelson Trust - 75,000
No.5 Young People - 5,000
Nordoff-Robbins Music Therapy - 20,000
Offene Arme (See Note) (20,000) 20,000
Old Vic Theatre Trust 2000, The - 25,000
One Small Thing - 350,000
Opera Holland Park 20,000 20,000
Oppidan Foundation 10,000 -
Orchestras for All - 10,000
Oxford Parent Infant Project - 30,000
Partners of Prisoners and Families Support Group 12,000 -
Passage 2000 15,000 -
Pause Creating Space for Change 25,000 100,000
Plantlife 5,000 -
Plias Resettlement Ltd 30,000 30,000
Prince's Trust 20,000 40,000
Prism the Gift Fund 20,000 -
Prison Advice and Care Trust 12,000 50,000
Providence Row 10,000 -
Public Catalogue Foundation 10,000 -
Royal Agricultural Benevolent Institution 5,000 -
React 10,000 -
Read Easy UK 10,000 10,000
Re-engage 12,000 -
Rewilding Britain - 25,000
Royal Academy of Arts 10,000 10,000
Royal Academy of Dramatic Art 5,000 -
Royal Academy of Music 40,000 20,000
Royal Ballet School, The 25,000 25,000
Royal Horticultural Society 10,000 10,000
Royal National Theatre, The 10,000 10,065
Royal Shakespeare Company, The 12,000 10,000
Sadler's Wells Trust Limited - 10,000
Safe Families for Children 25,000 25,000
SafeLives 25,000 -
Save The Elephants 40,000 35,000
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CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 JANUARY 2021
Save The Rhino International School for Social Entrepreneurs Society for Horticultural Therapy Spark Inside St John Ambulance Thames Valley Air Ambulance Trinity Winchester Trussell Trust, The Tusk Trust Victoria And Albert Museum Villiers Park Educational Trust Voices from Care Volunteering Matters WESC Foundation West London Zone West Yorkshire Community Chaplaincy Project Whatever It Takes Wheels Project Limited, The Why Me? UK World Land Trust Young Gloucestershire Youth Action Alliance
12,000 12,000 - 16,000 - 17,600 - 3,759 25,000 - 10,000 - - 40,000 40,000 - 55,000 65,000 12,000 12,000 - 10,000 20,000 10,000 25,000 - 10,000 - - 50,000 - 15,000 - 30,000 15,000 10,000 20,000 - 50,000 200,000 - 92,000 5,000 - 2,652,500 3,861,674
No grants were made to individuals Note ** With mutual agreement, the grant offered in March 2020 to the German charity Offene Arme was cancelled in the year to 31 January 2021 due to difficulties and delays in determining how Offene Arme would use the sum to support refugees on the Greek Island of Chios. A grant of £20,000 was instead offered and paid in the year to 31 January 2021 to the English charity Prism the Gift Fund for their Help Refugees project supporting humanitarian work in Chios with refugees.
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