CHK FOUNDATION TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
Company Number: 03130170 (England and Wales) Charity Number: 1050900
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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 14-28
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 0WZ 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 period 1 February 2023 to 31 December 2023 and since 31 December 2023: - Dr E Peake (Chair of the Board of Trustees)
Mrs E Jewell
Mr C Kirwan-Taylor Mrs K S Loyd Mrs L H Morris Miss P S Morris Mrs C Peake Mr R Prest
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CHK FOUNDATION
(A Company Limited by Guarantee)
REPORT OF THE TRUSTEES, INCORPORATING A DIRECTORS’ REPORT
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
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 period 1 February 2023 to 31 December 2023.
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 majority of the trustees are related to the founder by birth or marriage/civil partnership. Non family trustees may be appointed to fill a recognised gap in skills or experience considered to be critical to the effective running of the Charity. When there is vacancy, potential candidates are provided with information about the role, responsibility, operations and aims of the Charity. Potential trustees are invited to meet with existing trustees to discuss and understand the required commitment, and to review the recent history and future plans. Trustees that are appointed to the role are provide with induction support, training as appropriate and supported to visit some of the funded projects. All trustees are required to sit on one or more of the trustee subcommittees (the Governance Committee, the Finance and Investment Committee, and the Grant Making Committee) and these regular meetings provide context, information for decision making and the opportunity for trustee to develop an understanding of the strategy. In addition, a trustee training budget encourages external training to be accessed to build or develop any knowledge or skills that are considered helpful for the performance of the trustee role.
During the period, the accounting period end was changed to 31 December. This change was principally to align the accounting period end to a date on which non quoted asset values are, as standard, published. Accordingly, these financial statements are drawn up for the 11-month period 1 February 2023 to 31 December 2023
The Board met formally on two occasions in the 11-month period to conduct the business of the Board and to receive and review reports of the three subcommittees of the Board. When physical meetings were not possible, 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 increases and
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CHK FOUNDATION
(A Company Limited by Guarantee)
REPORT OF THE TRUSTEES, INCORPORATING A DIRECTORS’ REPORT
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
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. At subcommittee and Board meetings the trustees discuss and monitor risk using a risk register. As part of the review, the trustees seek assurance that steps are in place to mitigate the identified risks as far as it is possible to do so.
The key risks identified remain constant and are 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
Fraud : mitigated by control systems including segregation of duties, all financial authorisations 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 December 2023 were £155,098,192 (at 31 January 2023; £147,924,416), with an expendable endowment fund of £151,977,194 (at 31 January 2023; £146,782,841) and unrestricted funds of £3,120,998 (at 31 January 2023; 1,141,575)
The Charity Reserves Policy defines the following unrestricted funds;
Unrestricted General Fund
Cash returned by the investment managers on a monthly basis, in accordance with the agreed drawdown set out in the Charity’s Investment Policy, is held in the Unrestricted General Fund. The Unrestricted General Fund is used to fund the Designated Funds as set out below, for grant making purposes and to meet operational costs.
Designated Funds
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CHK Emergency/Disaster Fund. This fund supports selected national and international disaster/emergency appeals. The Trustees agree an annual target (typically £300,000) spend from the Emergency/Disaster Fund.
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CHK Social Impact Fund (previously referred to as a Social Investment Fund). This fund was set up in 2020 to invest in charities, social purpose organisations and funds tackling social issues of interest to the trustees. Investments considered by the Trustees for the Fund need to be offering both social return and financial returns. In the period, a sum of £525,000 was transferred from the expendable endowment to the Social Impact Fund, and a new commitment of $650,000 was made from the Social Impact Fund to an investment offering a dual financial and social return
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CHK Mission Fund. This fund offers support for the protection of the environment. In the 11 months to 31 December 2023, £100,000 (12 months to 31 January 2023; £100,000) was awarded from the CHK
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CHK FOUNDATION
(A Company Limited by Guarantee)
REPORT OF THE TRUSTEES, INCORPORATING A DIRECTORS’ REPORT
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
Mission Fund. The CHK Mission Fund closed on 31 December 2023, as the new 5 year grant programme commencing 1 January 2024 supersedes 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. The Charity delivers its objective by providing financial support, primarily through grant making but also through small levels of social investment. The social investment is via the Social Impact Fund referred to above.
Grant Making
A 5-year grant making programme ended on 31 December 2023. Charities funded under this programme were working throughout the UK in a targeted way to improve the lives and prospects of young people aged between 11 and 24 who are “at risk” as a result of:
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their involvement in the criminal justice system
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their own addictions
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leaving the care system
In the 11-month period, under the main young people at risk theme, 40 (12 months to 31 January 2023; 24) grants totalling £1,360,621 (12 months to 31 January 2023; £1,125,162) were offered to charitable projects.
In addition to young people at risk theme, grants of £1,745,196 (12 months to 31 January 2023; £1,638,260) were offered to other charities undertaking work in line with the charitable interests of the trustees. These grants include 18 (12 months to 31 January 2023; 17) grants totalling £300,000 (12 months to 31 January 2023; £300,000) to respond to national and international disasters/emergencies.
Overall, the total awards for the 11-month period were £3,105,817 (12 months to 31 January 2023; £2,820,422), supporting 134 (12 months to 31 January 2023; 83) charitable projects. A full list of the awards is given in Account Note 16.
The trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Charity's aims and objectives, and in planning future activities.
Financial review
The Charity’s income, derived entirely from investment income and interest on cash deposits, totalled £3,287,402 (12 months to 31 January 2023; £3,437,423). £3,015,817 (12 months to 31 January 2023; £2,820,422) was committed to charitable grants and donations. Governance and support expenses totalled £105,727 (12 months to 31 January 2023; £109,562). Total investment management fees, including VAT, amounted to £496,561 (12 months to 31 January 2023; 558,399).
Investment powers, policy and performance
Under the Memorandum and Articles of Association, there are no restrictions on the Charity's power to invest. The trustees have the power to delegate the management of their investments to investment specialists.
For financial investments (as opposed to dual motive social and financial investments) the objective is to achieve long term capital growth in real terms and to release cash on an annual basis to fund grant making. The investment objective is achieved by investment in a diverse range of assets which are screened as responsible investments, demonstrating good environmental, social and governance credentials
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CHK FOUNDATION
(A Company Limited by Guarantee)
REPORT OF THE TRUSTEES, INCORPORATING A DIRECTORS’ REPORT
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
The CHK Investment Policy, which is reviewed annually and updated as appropriate, in place at the period end sets out the following;
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A growth target for the investment of an average of CPI+4.5% over a three-year rolling period, after the fees of the investment managers
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The return, over 12 months, of £3,480,000 of cash to the Charity by the investment managers from the invested portfolio
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The intention to invest responsibly and sustainably, following “best practice” in environmental, social, and governance, and related risk management
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The fees of the investment managers can be taken from capital
The financial investment portfolio at the period end was approximately 4% (at 31 January 2023; 6%) in cash, 12% (at 31 January 2023; 8%) in fixed interest markets, 1% (at 31 January 2023; 5%) in property, 13% (at 31 January 2023; 14%) in alternative assets and the balance of 70% (at 31 January 2023; 67%) invested in equity markets. A table showing the split of investments is given in Account Note 7.
Investment performance
The market value of the financial investments held at the period end was £152,051,925, an increase of 3.49% from the 31 January value of £146,921,796 (12 months to 31 January 2023; plus 9.59%).
The cash returned to the Charity from the investment portfolios of £3,110,000 was the targeted sum for the period.
During the period, the Charity’s Finance and Investment Committee had regular discussions with the two investment managers to review the portfolio’s investment performance.
Separate to the financial investment portfolio, the CHK Social Impact Fund (referred to above) invests in impactled social investments, that is, those which are mission-aligned with a higher degree of social impact but come with a higher degree of financial risk or lower returns. Investments considered by the Trustees for the Social Impact Fund need to be offering both social return and financial returns. During the period the trustees continued to receive and review reports from existing investments and are happy with the social outcomes reported to date. A new investment was made from the CHK Social Impact Fund in the period as set out in Account Note 7.1
Fundraising
The Charity's income is derived from the investments held and cash deposits. 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
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CHK FOUNDATION
(A Company Limited by Guarantee)
REPORT OF THE TRUSTEES, INCORPORATING A DIRECTORS’ REPORT
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
fundraising, the trustees are confident that no one was put at risk from inappropriate fundraising activities of the Charity.
Plans for the Future
A new 5-year main grant programme commenced on 1 January 2024. Under this programme, support is planned for charities working to protect the environment, and for charities enabling the successful transition from secondary education to employment.
Statement of trustees' responsibilities
The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they 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 the income and expenditure, of the charitable company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP FRS102;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departure disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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 responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
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there is no relevant audit information of which the charitable company’s auditor is unaware; and
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the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report, which has been prepared in accordance with the special provisions relating to companies subject to the small companies’ regime within Part 15 of the Companies Act 2006.
By order of the trustees:
Edward Peake Dr E Peake (May 10, 2024, 2:29pm) Dr E Peake Date: 10 May 2024 Chair of the Board of Trustees
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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 period ended 31 December 2023 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:
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give a true and fair view of the state of the charity’s affairs as at 31 December 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 and Trustees 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:
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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
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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:
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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
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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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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CHK FOUNDATION
(A Company Limited by Guarantee)
Independent Auditor’s Report to the Members and Trustees of CHK Foundation (continued)
The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:
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We reviewed systems and procedures to identify potential areas of management override risk. In particular, we agreed the financial statements to underlying records, we carried out testing of journal entries and other adjustments for appropriateness
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We reviewed minutes of Trustee Board meetings and agreed the financial statement disclosures to underlying supporting documentation.
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We have made enquiries of the Executive Director of the charitable company regarding laws and regulations applicable to the organisation.
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We reviewed the risk management processes and procedures in place.
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We have reviewed any correspondence with the Charity Commission and reviewed the procedures in place for the reporting of incidents to the Trustee Board including serious incident reporting of any such matters if necessary.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidancefor-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
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 required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.
Suzanne Goldsmith FCA (Senior Statutory Auditor) for and on behalf of
PRICE BAILEY LLP
Chartered Accountants Statutory Auditors Tennyson House Cambridge Business Park Cambridge CB4 0WZ Date: 13 May 2024
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CHK FOUNDATION
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (Incorporating income and expenditure account) FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
| Account Note Income and endowments Investment Income 2 Other Income 2 Total income and endowments Expenditure Cost of raising funds: Investment management fee Expenditure on charitable activities: Grants 3 Other charitable activities 4 Total expenditure Net expenditure before gains and losses on investments Net (loss)/gain on investments 7 Net gain/(loss) on currency Net income/(expenditure) Transfer between Funds 10 Net movement in funds Funds at start of period Net movement in funds Funds at end of period |
Total Total Unrestricted Funds Expendable Endowment Fund 1 February to 31 December 2023 Year to 31 January 2023 £ £ £ £ 3,260,366 - 3,260,366 3,434,812 27,036 - 27,036 2,611 |
|---|---|
| 3,287,402 - 3,287,402 3,437,423 |
|
| - (496,561) (496,561) (558,399) (3,015,817) - (3,015,817) (2,820,422) (105,727) - (105,727) (109,562) |
|
| (3,121,544) (496,561) (3,618,105) (3,488,383) |
|
| 165,858 (496,561) (330,703) (50,960) (4,516) 7,143,611 7,139,095 (1,761,624) - 365,384 365,384 (1,103,583) |
|
| 161,342 7,012,434 7,173,776 (2,916,167) 1,818,081 (1,818,081) - - |
|
| 1,979,423 5,194,353 7,173,776 (2,916,167) |
|
| 1,141,575 146,782,841 147,924,416 150,840,583 1,979,423 5,194,353 7,173,776 (2,916,167) |
|
| 3,120,998 151,977,194 155,098,192 147,924,416 |
The statement of financial activities includes all gains and losses recognised in the year. All transactions are derived from continuing activities.
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CHK FOUNDATION
(A Company Limited by Guarantee)
BALANCE SHEET
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
| Account Note Fixed Assets Tangible assets 6 Financial Investments 7 Impact-led Social Investments 7.1 Current Assets Cash at Bank 13 Debtors 8 Total Current Assets Creditors: amounts falling due within one year 9 Net Current Assets less Current Liabilities Total Assets less Current Liabilities Creditors: amounts falling due after more than one year 9 Total Assets Capital Fund Expendable Endowment 10 Income Funds Unrestricted General 10 Unrestricted Designated 10 |
At 31 December 2023 At 31 January 2023 £ £ - 673 152,051,925 146,921,796i 796,572 535,070i 3,330,145 2,176,711 119,662 36,501 |
|---|---|
| 3,449,807 2,213,212 (1,128,112) (1,573,835) |
|
| 2,321,695 639,377 |
|
| 155,170,192 148,096,916 (72,000) (172,500) |
|
| 155,098,192 147,924,416 |
|
| 151,977,194 146,782,841 1,910,444 451,505 1,210,554 690,070 |
|
| 155,098,192 147,924,416 |
i An investment has been moved from its recording as a Financial Investment in the prior year, to an Impact-led Social Investment
The notes which are set out on the following pages 14- 28 form part of these accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
10 May 2024 The financial statements were approved by the Board of Trustees on and signed on their behalf by:
Edward Peake
Dr E Peake (May 10, 2024, 2:29pm)
Dr E Peake Chair of the Board of Trustees
Company registration number: 03130170
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CHK FOUNDATION
(A Company Limited by Guarantee)
STATEMENT OF CASHFLOWS
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
| Account Note 1 February to 31 December 2023 For the year to 31 January 2023 Cash flows from operating activities: £ Net cash used in operating activities 14 (3,881,432) (5,032,340) Cash flows from investing activities: Investment Income 2 3,287,402 3,437,423 Proceeds from sale of investments 7 38,593,915 81,802,449 Purchase of financial investments 7 (38,510,600) (73,537,249) Purchase of impact led social investments 7.1 (266,018) Net cash provided by investing activities 3,104,699 11,702,623 Change in cash and cash equivalents during the period (776,733) 6,670,283 Cash and cash equivalents brought forward 10,510,326 3,840,043 Change in cash and cash equivalents (776,733) 6,670,283 Cash and cash equivalents carried forward 13 9,733,593 10,510,326 Analysis of changes in net debt At start of the period £ Cashflows £ Other non-cash changes £ At end of the period £ Cash 2,176,711 1,153,434 - 3,330,145 Cash equivalents 8,333,615 (1,930,167) 6,403,448 10,510,326 (776,733) 9,733,593 |
Account Note 1 February to 31 December 2023 For the year to 31 January 2023 Cash flows from operating activities: £ Net cash used in operating activities 14 (3,881,432) (5,032,340) Cash flows from investing activities: Investment Income 2 3,287,402 3,437,423 Proceeds from sale of investments 7 38,593,915 81,802,449 Purchase of financial investments 7 (38,510,600) (73,537,249) Purchase of impact led social investments 7.1 (266,018) Net cash provided by investing activities 3,104,699 11,702,623 Change in cash and cash equivalents during the period (776,733) 6,670,283 Cash and cash equivalents brought forward 10,510,326 3,840,043 Change in cash and cash equivalents (776,733) 6,670,283 Cash and cash equivalents carried forward 13 9,733,593 10,510,326 Analysis of changes in net debt At start of the period £ Cashflows £ Other non-cash changes £ At end of the period £ Cash 2,176,711 1,153,434 - 3,330,145 Cash equivalents 8,333,615 (1,930,167) 6,403,448 10,510,326 (776,733) 9,733,593 |
Account Note 1 February to 31 December 2023 For the year to 31 January 2023 Cash flows from operating activities: £ Net cash used in operating activities 14 (3,881,432) (5,032,340) Cash flows from investing activities: Investment Income 2 3,287,402 3,437,423 Proceeds from sale of investments 7 38,593,915 81,802,449 Purchase of financial investments 7 (38,510,600) (73,537,249) Purchase of impact led social investments 7.1 (266,018) Net cash provided by investing activities 3,104,699 11,702,623 Change in cash and cash equivalents during the period (776,733) 6,670,283 Cash and cash equivalents brought forward 10,510,326 3,840,043 Change in cash and cash equivalents (776,733) 6,670,283 Cash and cash equivalents carried forward 13 9,733,593 10,510,326 Analysis of changes in net debt At start of the period £ Cashflows £ Other non-cash changes £ At end of the period £ Cash 2,176,711 1,153,434 - 3,330,145 Cash equivalents 8,333,615 (1,930,167) 6,403,448 10,510,326 (776,733) 9,733,593 |
|---|---|---|
| 10,510,326 (776,733) |
9,733,593 |
Page 13
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
1. Accounting policies
These financial statements have been prepared in accordance with the accounting policies described below.
The Charity is registered in England and Wales. The address of the Charity’s registered office is shown on page 2.
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.
Legal status of the Charity
There is no share capital as the company is limited by guarantee. The Trustees are the Members, and 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 period 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.
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.
Page 14
CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
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-off the cost of tangible assets on a straight-line basis over their estimated useful economic lives as follows:
IT and Computer equipment: 3 years
Investments
Financial investments held will be included in the Financial Statements at Fair value which is the bid price at the balance sheet date. Impact-led social investments are held at cost, less any diminution in value, unless is it possible, on a timely basis, to obtain a reliable estimate of fair value. 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 period 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. The accounting estimates include depreciation. 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 and of the historical cost of investments, 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 exchange ruling at the date of the transaction. Exchange gains and losses are recognised in the Statement of Financial Activities.
Page 15
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
2. Income
| 1 February 2023 to 31 December 2023 Year to 31 January 2023 £ £ Investment Income 3,260,366 3,434,812 Bank interest 27,036 2,611 3,287,402 3,437,423 SplitInvestment Incomebetween asset class and geography 1 February 2023 to 31 December 2023 Year to 31 January 2023 UK Overseas TOTAL UK Overseas TOTAL £ £ £ £ £ £ Equities 497,332 1,170,944 1,668,276 668,789 1,512,957 2,181,746 Fixed Income 559,975 - 559,975 248,057 113,439 361,496 Other, including Multi Asset Funds 124,388 360,213 484,601 187,421 355,661 543,082 Property 260,016 17,495 277,511 331,054 17,434 348,488 Liquid Assets 270,003 - 270,003 3,260,366 3,434,812 3. Grants 1 February 2023 to 31 December 2023 Year to 31 January 2023 £ £ Grants payable at start of period 1,602,059 2,043,247 Grants offered in the period (SOFA and Account Note 16) 3,015,817 2,820,422 Grants paid in the period (3,573,265) (3,261,610) Grants payable at end of period (Account Note 9) 1,044,611 1,602,059 |
1 February 2023 to 31 December 2023 Year to 31 January 2023 £ £ 3,260,366 3,434,812 27,036 2,611 |
1 February 2023 to 31 December 2023 Year to 31 January 2023 £ £ 3,260,366 3,434,812 27,036 2,611 |
|---|---|---|
| 3,287,402 | 3,437,423 | |
| 31 January 2023 TOTAL £ 2,181,746 361,496 543,082 348,488 |
||
| 3,434,812 |
Page 16
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
4. Other charitable activities
| 1 February | 2023 to 31 December 2023 | 2023 to 31 December 2023 | Year to | 31 January 2023 | 31 January 2023 | |||
|---|---|---|---|---|---|---|---|---|
| Direct Grant Making |
Support /Governance |
Total | Direct Grant Making |
Support /Governance |
Total | |||
| £ | £ | £ | £ | £ | £ | |||
| Independent Auditors’ Fee | - | 12,040 | 12,040 | - | 9,230 | 9,230 | ||
| Legal Fees | - | - | - | - | 810 | 810 | ||
| Consultant fees and other third- | 1,242 | - | 1,242 | 2,273 | - | 2,273 | ||
| party costs for grant programmes | ||||||||
| Subscriptions | - | 488 | 488 | - | 6,782 | 6,782 | ||
| Depreciation (Account Note 6) | 303 | 370 | 673 | * | 102 | 123 | 225 | * |
| Travel, Training and Meeting | 1,484 | 1,814 | 3,298 | * | 1,318 | 1,610 | 2,928 | * |
| costs | ||||||||
| Bank charges | 396 | 483 | 879 | * | 460 | 563 | 1,023 | * |
| Staff Costs (Account Note 5) | 37,674 | 46,046 | 83,720 | * | 37,439 | 45,758 | 83,197 | * |
| Insurance | 982 | 1,201 | 2,183 | * | 929 | 1,135 | 2,064 | * |
| Website and IT Costs | 447 | 546 | 993 | * | 457 | 559 | 1,016 | * |
| Other Office Costs | 95 | 116 | 211 | * | 6 | 8 | 14 | * |
| Total | 42,623 | 63,104 | 105,727 | 42,984 | 66,578 | 109,562 |
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. Included in the Support/Governance costs are auditor costs of £12,040 (Year to 31 Jan 2023; £9,230).
5. Staff Costs and Numbers
| 5. Staff Costs and Numbers |
|
|---|---|
| Staff costs were as follows: Salaries and wages Social security costs Pension |
1 February 2023 to 31 December 2023 Year to 31 January 2023 £ £ 74,814 76,327 4,170 4,711 4,736 2,159 |
| 83,720 83,197 |
Key management. The Executive Director is the Charity's only employee. The number of staff earning in the following ranges
£80,000-£90,000
| 1 February 2023 to | Year to 31 January |
|---|---|
| 31 December 2023 | 2023 |
| 1 | 1 |
Page 17
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
6. Tangible Fixed Assets
| . Tangible Fixed Assets |
|
|---|---|
| Cost At start of year Additions in the year At end of year Depreciation At start of year Charge for the year At end of year Net book value at end of year |
1 February 2023 to 31 December 2023 Year to 31 January 2023 IT and Computer Equipment Total IT and Computer Equipment Total £ £ £ £ 2,396 2,396 2,396 2,396 - - - - |
| 2,396 2,396 2,396 2,396 |
|
| 1,723 1,723 1,498 1,498 673 673 225 225 |
|
| 2,396 2,396 1,723 1,723 |
|
| Nil Nil 673 673 |
7. Investments
To reflect updated guidance issued in August 2023 in the Charity Commission Investing Charity Money: Guidance For Trustees (CC14), the investments held by the Charity have been recategorised in the period into two separate streams; Financial Investments and Impact-led Social investments
Financial investments are made with the ultimate objective of generating income from the investment and /or increasing the capital value of an investment
| Financial Investments Market value brought forward Purchases Disposal Proceeds Net (loss)/ gain on investments Market value Cash on deposit account (Account Note 13) Total financial investments Historical cost of investments: |
1 February to 31 December 2023 Year to 31 January 2023 £ £ 138,588,181 149,125,075 38,510,600 73,037,249 (38,593,915) (81,802,449) |
|---|---|
| 138,504,866 140,359,875 7,143,611 (1,771,694) |
|
| 145,648,477 138,588,181 |
|
| 6,403,448 8,333,615 |
|
| 152,051,925 146,921,796 |
|
| 128,123,110 £127,701,785 |
Page 18
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
Quoted Investments by asset class split between UK and overseas
| Equities Fixed Income Property Other,including Multi Asset Funds Liquid Assets Total |
1 February to 31 December 2023 UK Overseas TOTAL £ £ £ 12,295,198 95,167,854 107,463,052 17,989,305 - 17,989,305 4,040,264 687,401 4,727,665 4,169,178 11,144,924 15,314,102 6,557,801 - 6,557,801 45,051,746 107,000,179 152,051,925 |
Year to 31 January 2023 UK Overseas TOTAL £ £ £ 12,960,709 85,744,345 98,705,054 7,983,926 4,165,256 12,149,182 6,198,179 735,984 6,934,163 6,798,182 14,001,600 20,799,782 33,940,996 104,647,185 138,588,181 8,183,017 150,598 8,333,615 |
|---|---|---|
| 42,124,013 104,797,783 146,921,796 |
7.1 Impact-led Social Investments
Impact-led Social Investments offering both social return and financial returns, are made in charities, social purpose organisations and funds tackling social issues of interest to the trustees. They may have a higher degree of financial risk or lower return. Overall, when making the investment the trustees are happy that should there be a lower than anticipated financial return, the social return of the investments will recompense any loss in financial value.
| financial value. | |
|---|---|
| Value brought forward Purchases Disposal Proceeds Net (loss)/ gain on investments Value carried forward Historical cost of investments: |
1 February to 31 December 2023 Year to 31 January 2023 £ £ 535,070 25,000 266,018 500,000 - - |
| 525,000 (4,516) 10,070 |
|
| 796,572 535,070 |
|
| £791,018 £525,000 |
Impact-led social investments are held at cost, less any diminution in value, unless CHK Foundation is able to obtain a reliable estimate of fair value
In the period, units costing $138,000 (£116,018) were purchased in a fund-of-funds. This product invests across a wide range of fund types, sectors, and geographies with the aim to generate long-term, sustained funding for selected high impact NGOs. The units purchased were the first call of a $650,000 commitment made in the period.
In addition, in the period an unsecured facility of £150,000 was made available to an incorporated Limited Liability Partnership. The sum was the balance of finance required for acquisition of premises to create a collaborative space for Social Enterprise. The facility has a 6.0% per annum Interest rate and a maximum term of 10 years.
In the prior year, a £500,000 investment was made to buy units in a fund-of-funds product investing in funds which contribute towards social equity and environmental solutions. At 31 December 2023, the CHK Foundation share of the audited net asset value of the Fund was reported as £505,586 .
Page 19
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
An interest free £25,000 loan was made in 2021 to a UK registered charity repayable to CHK Foundation in 2027. The loan is to a programme helping those, who have claimed asylum in the UK, to have the opportunity to return to their previous career by covering the cost of requalification. The loan was made with a view to furthering CHK Foundation’s charitable aims, and with the expectation of repayment. CHK Foundation has had regular updates on the programme’s progress.
8. Debtors
| 1 February to 31 December 2023 Year to 31 January 2023 £ £ Accrued interest 119,662 36,501 9. Creditors 1 February to 31 December 2023 Year to 31 January 2023 Amounts falling due within one year £ £ Accruals 152,260 131,000 Grants payable 972,611 1,429,559 Other creditors 3,241 13,276 1,128,112 1,573,835 Amounts falling due after more than one year £ £ Grants payable 72,000 172,500 10. Movement in funds Funds Balance 01-Feb-23 Income and Gains Investment Gains/(Losses) Expenditure Transfers Subtotal of unrestricted funds Balance 31-Dec-23 £ £ £ £ £ £ Expendable Endowment 146,782,841 7,508,995 (496,561) (1,818,081) N o t e a - 151,977,194 Unrestricted General Fund 451,505 3,287,402 (2,721,544) 893,081 1,910,444 Designated Funds Emergency/Disaster - - - (300,000) 300,000 - Social Impact 690,070 - (4,516) 525,000 1,210,554 CHK Mission - - - (100,000) 100,000 - - 3,120,998 3,120,998 |
1 February to 31 December 2023 Year to 31 January 2023 £ £ Accrued interest 119,662 36,501 9. Creditors 1 February to 31 December 2023 Year to 31 January 2023 Amounts falling due within one year £ £ Accruals 152,260 131,000 Grants payable 972,611 1,429,559 Other creditors 3,241 13,276 1,128,112 1,573,835 Amounts falling due after more than one year £ £ Grants payable 72,000 172,500 10. Movement in funds Funds Balance 01-Feb-23 Income and Gains Investment Gains/(Losses) Expenditure Transfers Subtotal of unrestricted funds Balance 31-Dec-23 £ £ £ £ £ £ Expendable Endowment 146,782,841 7,508,995 (496,561) (1,818,081) N o t e a - 151,977,194 Unrestricted General Fund 451,505 3,287,402 (2,721,544) 893,081 1,910,444 Designated Funds Emergency/Disaster - - - (300,000) 300,000 - Social Impact 690,070 - (4,516) 525,000 1,210,554 CHK Mission - - - (100,000) 100,000 - - 3,120,998 3,120,998 |
1 February to 31 December 2023 Year to 31 January 2023 £ £ Accrued interest 119,662 36,501 9. Creditors 1 February to 31 December 2023 Year to 31 January 2023 Amounts falling due within one year £ £ Accruals 152,260 131,000 Grants payable 972,611 1,429,559 Other creditors 3,241 13,276 1,128,112 1,573,835 Amounts falling due after more than one year £ £ Grants payable 72,000 172,500 10. Movement in funds Funds Balance 01-Feb-23 Income and Gains Investment Gains/(Losses) Expenditure Transfers Subtotal of unrestricted funds Balance 31-Dec-23 £ £ £ £ £ £ Expendable Endowment 146,782,841 7,508,995 (496,561) (1,818,081) N o t e a - 151,977,194 Unrestricted General Fund 451,505 3,287,402 (2,721,544) 893,081 1,910,444 Designated Funds Emergency/Disaster - - - (300,000) 300,000 - Social Impact 690,070 - (4,516) 525,000 1,210,554 CHK Mission - - - (100,000) 100,000 - - 3,120,998 3,120,998 |
1 February to 31 December 2023 Year to 31 January 2023 £ £ Accrued interest 119,662 36,501 9. Creditors 1 February to 31 December 2023 Year to 31 January 2023 Amounts falling due within one year £ £ Accruals 152,260 131,000 Grants payable 972,611 1,429,559 Other creditors 3,241 13,276 1,128,112 1,573,835 Amounts falling due after more than one year £ £ Grants payable 72,000 172,500 10. Movement in funds Funds Balance 01-Feb-23 Income and Gains Investment Gains/(Losses) Expenditure Transfers Subtotal of unrestricted funds Balance 31-Dec-23 £ £ £ £ £ £ Expendable Endowment 146,782,841 7,508,995 (496,561) (1,818,081) N o t e a - 151,977,194 Unrestricted General Fund 451,505 3,287,402 (2,721,544) 893,081 1,910,444 Designated Funds Emergency/Disaster - - - (300,000) 300,000 - Social Impact 690,070 - (4,516) 525,000 1,210,554 CHK Mission - - - (100,000) 100,000 - - 3,120,998 3,120,998 |
|---|---|---|---|
| 1,128,112 | |||
| £ | |||
| 72,000 | |||
| Subtotal of unrestricted funds - 1,910,444 - 1,210,554 - |
|||
| £ 151,977,194 - 3,120,998 |
|||
| 3,120,998 |
Page 20
Total 147,924,416 3,287,402 7,504,479 (3,618,105)
155,098,192
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
NOTE a The sum of £1,818,081 is the net difference between i) funds from the liquidation of an investment fund moving from the Expendable Endowment Fund to the Unrestricted General Fund, and ii) funds of £150,366 moving from the Unrestricted General Fund to the Expendable Endowment Fund, representing the difference in Dividend and other interest income of £3,260,366 (Account Note 2) and the actual cash returned of £3,110,000 by the investment managers in line with the Charity Investment Policy. £525,000 of the sum received into the Unrestricted General Fund was reallocated to the Social Impact Fund to support the planned new commitment of $650,000 to an investment offering a dual financial and social return.
| Funds Expendable Endowment General Fund Designated Funds Emergency/Disaster Social Impact Fund CHK Mission Fund Total |
Balance 1 February 2022 Income and Gains Investment Losses Expenditure Transfers Balance 31 January 2023 £ £ £ £ £ £ 149,806,705 (2,875,277) (558,399) 409,812 NOTEb 146,782,841 378,878 3,437,423 - (2,529,984) (834,812) 451,505 - - - (300,000) 300,000 - 655,000 10,070 - - 25,000 690,070 - - - (100,000) 100,000 - |
|---|---|
| 150,840,583 3,447,493 (2,875,277) (3,488,383) - 147,924,416 |
NOTE b The net transfer of £409,812 is made up of 1) a £25,000 transfer out to reinstate this sum as a balance in the Social Impact Fund. Last year the £25,000 loan (See Account Note 7.1) was incorrectly recorded as part of the Expendable Endowment. 2) A transfer in of £434,812 from the Unrestricted General Fund to the Expendable Endowment Fund representing the difference in Dividend and other interest income of £3,434,812 (Account Note 2) recorded in the Unrestricted General Fund, and the cash transferred of £3,000,000 by the investment managers from the Expendable Endowment Fund, in line with the Charity Investment Policy.
11. Analysis of net assets between funds
| Investments Current assets Liabilities |
Unrestricted Expendable Endowment Total 31 December 2023 General £ Designated £ £ £ 871,324 151,977,194 152,848,518 3,110,556 339,230 - 3,449,786 (1,200,112) - - (1,200,112) |
|---|---|
| 1,910,444 1,210,554 151,977,194 155,098,192 |
Page 21
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
| Investments Tangible Assets Current assets Liabilities |
Unrestricted Expendable Endowment Total 31 January 2023 General £ Designated £ £ £ - 674,045 146,782,841 147,456,886 - 673 - 673 2,197,860 15,352 - 2,213,212 (1,746,355) - - (1,746,355) |
|---|---|
| 451,505 690,070 146,782,841 147,924,416 |
12. Related party transactions and trustees' expenses and remuneration
No remuneration was paid to the trustees during the period (Year to 31 January 2023; NIL).
No travel expenses were reimbursed to trustees during the period (Year to 31 January 2023; NIL)
A donation of £180,000 (Year to 31 January 2023; £180,000) 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 personal 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/descendants of the founder.
| 1 February 2023 - 31 | Year to 31 January | ||
|---|---|---|---|
| December 2023 | 2023 | ||
| Mrs E Jewell | Trustee | £20,000 | £20,000 |
| Mrs K S Loyd | Trustee | £20,000 | £30,000 |
| Mrs L H Morris | Trustee | £30,000 | £30,000 |
| Miss P S Morris | Trustee | £20,000 | £20,000 |
| Mrs C Peake | Trustee | £20,000 | £20,000 |
| Dr E Peake | Trustee | £30,000 | £20,000 |
| Mr R Prest | Trustee | £20,000 | £20,000 |
| Mrs S E Acland | Daughter of the founder | £5,000 | £5,000 |
| Mr H Acland | Grandson of the founder | £5,000 | £5,000 |
| Miss C Gwynne | Granddaughter of the founder | £5,000 | £5,000 |
| Mrs L Hardy | Granddaughter of the founder | £5,000 | £5,000 |
A £5,000 sum (Year to 31 January 2023; £5,000) was also paid to the Good2Give Community Fund Charity Account of Mr R Baillieu (grandson of the founder). Mr Baillieu resides overseas. The Good2Give Community Fund Charity Account fulfils the same purpose in Australia as described above for CAF accounts in the UK.
Mrs L Morris, trustee of CHK Foundation, has trustee, fundraising committee, or financial advisory board, roles with the grant recipients detailed below. The roles were declared before the decision to offer the grants. Mrs Morris took part in the CHK Foundation trustees’ discussion and decision making about the grants.
Page 22
CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
| OTES TO THE ACCOUNTS OR THE PERIOD 1 FEBRUARY 2023 |
to 31 DECEMBER 2023 | |
|---|---|---|
| Grants Made | ||
| 1 February 2023 to 31 December 2023 | Year to 31 January 2023 | |
| The Amber Foundation | £50,000 | £50,000 |
| Nordoff and Robbins | £5,000 | £20,000 |
| KAA Intrepidus Trust | - | £200,000 |
| IntoUniversity | £25,000 | £120,000 |
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 £5,000 (Year to 31 January 2023; £10,000).
There are no other related party transactions (Year to 31 January 2023; no other related party transactions)
| 13. Cash and cash equivalents | ||
|---|---|---|
| 1 February to 31 December | Year to 31 January | |
| 2023 | 2023 | |
| £ | £ | |
| Cash at bank | 3,330,145 | 2,176,711 |
| Cash on deposit account (Account Note 7) | 6,403,448 | 8,333,615 |
| 9,733,593 | 10,510,326 | |
| 14. Reconciliation of net movement in funds to net cash flow used in operating activities | ||
| 1 February to 31 December | Year to 31 January | |
| 2023 | 2023 | |
| £ | £ | |
| Net movement in funds (SOFA) | 7,178,312 | (2,916,167) |
| Deduct income from investing activities (SOFA) | (3,287,402) | (3,437,423) |
| Add net loss /Deduct net gain on investments (SOFA) | (7,143,611) | 1,761,624 |
| Add Depreciation charge (Account Note 6) | 673 | 225 |
| Deduct increase/Add decrease in debtors | (83,161) | (12,939) |
| Deduct decrease /Add increase in creditors | (546,223) | (427,660) |
| Net cash used in operating activities | (3,881,412) | (5,032,340) |
Page 23
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
15. Comparative Statement of Financial Activities for the year ended 31 January 2023
| Account Note Income and endowments Investment Income 2 Other Income 2 Total income and endowments Expenditure Cost of raising funds: Investment management fee Expenditure on charitable activities: Grants 3 Other charitable activities 4 Total expenditure Net income/(expenditure) before gains and losses on investments Net gain/(loss) on investments 7 Net (loss)/gain on currency Net income/(expenditure) Transfer between Funds 10 Net movement in funds in the year Funds at start of year Net movement in funds in the year Funds at end of year |
Unrestricted Funds Expendable Endowment Fund Total 31 January 2023 £ £ £ 3,434,812 - 3,434,812 2,611 - 2,611 |
|---|---|
| 3,437,423 - 3,437,423 |
|
| - (558,399) (558,399) (2,820,422) - (2,820,422) (109,562) - (109,562) |
|
| (2,929,984) (558,399) (3,488,383) |
|
| 507,439 (558,399) (50,960) 10,070 (1,771,694) (1,761,624) - (1,103,583) (1,103,583) |
|
| 517,509 (3,433,676) (2,916,167) (409,812) 409,812 - |
|
| 107,697 (3,023,864) (2,916,167) |
|
| 1,033,878 149,806,705 150,840,583 107,697 (3,023,864) (2,916,167) |
|
| 1,141,575 146,782,841 147,924,416 |
Page 24
CHK FOUNDATION
NOTES TO THE ACCOUNTS FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
16. Grants offered
Grants to charitable institutions
| 1 February 2023 to | Year to 31 | |
|---|---|---|
| 31 December 2023 | January 2023 | |
| £ | £ | |
| 1625 Independent People | 153,620 | 52,380 |
| Action Against Hunger | 10,000 | - |
| AfghanAid | 60,000 | 25,000 |
| Afghanistan And Central Asian Association | - | 10,000 |
| Alina Cojocaru Foundation | 50,000 | - |
| Amber Foundation, The | 50,000 | 50,000 |
| Anna Freud Centre, The | 25,000 | - |
| BACA | 58,250 | - |
| Barn Theatre Project | 10,000 | 5,000 |
| Battle of Ideas | - | 5,000 |
| Beat | 30,000 | - |
| Beating Time | 20,000 | - |
| Bees for Development | 10,000 | - |
| Big Change | 50,000 | - |
| Big Give Trust, The | 25,000 | 24,000 |
| Bike Project, The | 5,000 | - |
| Break | 1,550 | - |
| Breathe Youth | - | 2,802 |
| British Exploring Society | 10,000 | |
| British Museum, The | - | 1,500 |
| British Pilgrimage Trust | 10,000 | - |
| British Red Cross | 80,000 | - |
| Camara Education UK | 5,000 | 23,760 |
| Carefree- Fostering Independence Cornwall | 4,250 | - |
| Charities Aid Foundation | 180,000 | 180,000 |
| Charlie Waller Trust | 25,000 | - |
| CHASE Africa | 20,000 | 25,000 |
| Childhood Trust, The | 25,000 | 35,000 |
| Chipping Norton Theatre | 11,000 | - |
| City Harvest | 10,000 | 10,000 |
| Cleanup | 12,000 | 10,000 |
| Clonter Farm Music Trust | 20,000 | 20,000 |
| Coroner's Court Support Service, The | - | 10,000 |
| Country Food Trust | - | 60,000 |
| Countryside Learning | 10,000 | 10,000 |
| County of Gloucestershire Community Foundation | 10,000 | 30,000 |
Page 25
CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
| Cowrie Scholarship Foundation | 10,000 | - |
|---|---|---|
| Crisis UK | 10,000 | - |
| Cure Parkinson's Trust, The | 5,000 | 10,000 |
| David Nott Foundation | 20,000 | 10,000 |
| Developing Health & Independence | 18,000 | - |
| Disabled Sailors Association | - | 20,000 |
| Disasters Emergency Committee | - | 50,000 |
| Door, The | 268,278 | 16,121 |
| Drive Forward Foundation | 42,300 | - |
| ESTEEM | 20,000 | - |
| Fantasia Orchestra | 10,000 | 8,000 |
| Fine Cell Work | 45,000 | - |
| Forest Peoples | - | 50,000 |
| Foyer Federation | 3,000 | 120,000 |
| Friendship Cafe | 24,000 | - |
| Garsington Opera Ltd. | 7,500 | - |
| Global Canopy | 50,000 | 25,000 |
| Gloucester Cathedral | - | 10,000 |
| Gloucestershire Academy of Music | - | 20,000 |
| Gloucestershire Society, The | 5,000 | - |
| Gloucestershire VCS Alliance | 75,000 | - |
| Goed Life, The | 15,000 | - |
| Good2Give ATF | 5,000 | 5,000 |
| Handicap International (operating as Humanity & Inclusion) | 10,000 | - |
| Hands Up Foundation | 20,000 | - |
| Hazara Charitable Trust | 10,000 | 20,000 |
| Home-Start (Cotswolds) Ltd. | 5,000 | - |
| Home-Start North and West Gloucestershire | 5,000 | - |
| Home-Start Stroud and Gloucester | 5,000 | - |
| Imperial College London | 10,000 | - |
| Institute For Philanthropy, The | 5,000 | - |
| Intermission Youth | - | 10,000 |
| IntoUniversity | 25,000 | 120,000 |
| Irene Taylor Trust, The | 15,000 | 10,000 |
| James' Place Charity | 50,000 | - |
| Jangala | - | 5,000 |
| KAA Intrepidus Trust | - | 200,000 |
| Kensington and Chelsea Foundation, The | 10,000 | 25,000 |
| Key4life | 50,000 | - |
| LIFEbeat | 20,000 | 20,000 |
| Longborough Festival Opera | - | 40,000 |
| Margaret Pyke Foundation | 90,000 | 50,000 |
| Medecins Sans Frontiere (UK) | 25,000 | - |
| Mental Health Innovations | 50,000 | 95,000 |
| Page 26 |
CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
| OTES TO THE ACCOUNTS OR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023 |
||
|---|---|---|
| Mindfulness In Schools Project | - | 50,000 |
| Mulberry Bush | - | 140,000 |
| Museum of Modern Art | - | 10,000 |
| MYTIME | 10,000 | 10,000 |
| National Opera Studio | 48,000 | - |
| National Youth Choirs of Great Britain | 10,000 | - |
| Nelson Trust | 87,403 | 7,500 |
| Nordoff-Robbins Music Therapy | 5,000 | 20,000 |
| North Cotswold Community Awareness | 10,000 | 22,500 |
| OCD Action | 25,000 | 25,000 |
| Old Vic Theatre | 20,000 | 17,500 |
| One Small Thing | - | 100,000 |
| Opera Holland Park | 20,000 | 20,000 |
| Operation Reach | 11,000 | 5,000 |
| Oppidan Foundation, The | - | 5,000 |
| Pause | - | 75,000 |
| Place2Be | - | 125,000 |
| Plan International | 50,000 | 10,000 |
| Providence Row | 10,000 | - |
| Quentin Blake Centre for Illustration | - | 25,000 |
| Rekindle School | 15,000 | - |
| Right to Play | 15,000 | - |
| Royal Academy of Arts | - | 10,000 |
| Royal Academy of Dramatic Art | - | 30,000 |
| Royal Academy of Music | 20,000 | - |
| Royal Ballet School | 25,000 | - |
| Royal Free Charity | - | 5,000 |
| Royal Horticultural Society | - | 10,000 |
| Royal National Theatre, The | 7,500 | - |
| Safe Families for Children | - | 64,000 |
| Save The Rhino International | 15,000 | 10,000 |
| SchoolReaders | - | 45,000 |
| SeaView Sailing Trust | 30,000 | 15,000 |
| Shaw Trust | 31,500 | 60,000 |
| Southmead Development Trust | 10,000 | - |
| Spark Inside | 10,000 | - |
| St John's College Oxford | 5,000 | 10,000 |
| St Mungo Community Housing Ass | 5,000 | - |
| St Richards Hospice | 5,000 | - |
| St. John of Jerusalem Eye Hospital Group | 25,000 | - |
| Stockwell Charitable Trust, The | 10,000 | - |
| Supporting Wounded Veterans Ltd. | 10,000 | - |
| Sustainable Food Trust | - | 150,000 |
| Temple Guiting Primary School | - | 15,000 |
Page 27
CHK FOUNDATION
NOTES TO THE ACCOUNTS
FOR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023
| OTES TO THE ACCOUNTS OR THE PERIOD 1 FEBRUARY 2023 to 31 DECEMBER 2023 |
|
|---|---|
| TERN (The Entrepreneurial Refugee Network) Thames Valley Partnership Thrive-Northox TimeGivers Trussell Trust, The Tusk Trust Tutor The Nation United in Design Charitable Trust University of Oxford Development Trust Fund University of the West of England Victoria and Albert Museum Villiers Park Educational Trust Volunteering Matters War Child We All Matter West London Welcome West London Zone Wheels Project Wild Survivors Willow Trust, The Winchester College World Land Trust Yorkshire Ballet Seminars Young Gloucestershire Reduction in grant paid compared to sum awarded in prior year |
5,000 5,000 - 5,126 10,000 - 5,000 - 10,000 10,000 65,000 25,000 10,000 10,000 - 75,000 - 15,250 - - 12,000 - 5,000 3,000 - 10,000 - - 3,103 10,000 15,000 25,000 - 20,000 - 20,000 - 10,000 - 5,000 - 10,000 100,000 15,000 - 118,470 10,130 (54) |
| 3,015,817 2,820,422 |
No grants were made to individuals
Page 28