FOUNDATION FOR SOCIAL AND ECONOMIC THINKING ## TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 APRIL 2022 REGISTERED CHARITY NUMBER: 1057509 ## FOUNDATION FOR SOCIAL AND ECONOMIC THINKING LEGAL AND ADMINISTRATIVE INFORMATION |TRUSTEES|Lord Charles Cecil| |---|---| ||Richard Simmons CBE| ||Dr Sheila Lawlor| |SECRETARY|Dr Sheila Lawlor| |PRINCIPAL OFFICE|42 Berkeley Square, London W1J 5AW| |SOLICITOR|Charles Russell Speechlys| ||5 Fleet Place| ||London| ||EC4M 7RD| |BANKERS|Lloyds Bank Plc| ||Cambridge| ||CB2 3HQ| 1 ## FOUNDATION FOR SOCIAL AND ECONOMIC THINKING Trustees Report Period ended 30 April 2022 The trustees submit their annual report and the financial statements of the Foundation for Social and Economic Thinking (the Charity FSET) for the period ended 30 April 2022. The trustees confirm that the annual report and financial statements of the Charity comply with current statutory requirements, the requirements of the Charity’s governing document and the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in March 2005. ## METHOD OF APPOINTMENT/ELECTION PROCESS The management of the Charity is the responsibility of the trustees. The trustees may not be less than three in number and the power of appointing new trustees without restriction in number is vested in the trustees under the terms of the Trust deed. CONSTITUTION POLICIES AND OBJECTIVES The Charity is constituted under a Trust deed on 18 June 1996 and is a registered charity number 1057509. The principal object of the Charity is to fund research studies, conferences and seminars which promote the education of the public in constitutional, economic and social issues that confront the United Kingdom. There have been no changes in the objectives since the last annual report. ORGANISATIONAL STRUCTURE AND DECISION MAKING The trustees who served throughout the period are set out on page 1. The trustees meet at regular intervals in order to consider and assess applications for grants for which they are solely responsible for approving or refusing. ## RELATED PARTY RELATIONS FSET enjoys, as its founding principles require, a close relationship with Politeia. Politeia is a non-profit making company limited by guarantee, whose principal activity is that of informing and encouraging public discussion on the relationship between the state and the people by way of seminars, conferences and publications. FSET has made most of its grants to Politeia during the current financial period, but in this financial period, as previously, some of these grants were to support joint projects with other charities or not for profit educational organisations **.** It is completely open to applications from any other body. FSET has also 2 worked together with the Institute for Policy Research on projects related to policy research. ## FOUNDATION FOR SOCIAL AND ECONOMIC THINKING Trustees Report for the year ended 30 April 2022 Continued REVIEW OF THE ACTIVITIES AND FUTURE DEVELOPMENTS As set out in the Statement of Financial Activities, the totals of incoming and expended resources were £40,500 and £54,140 respectively (2021: £52,000 and £68,785) respectively. On-going research projects, all of which were carried out through the auspices of Politeia, comprised studies relating to education reform, human rights law, the operation of the justice system, the framework for future international trade, the UK’s future constitutional relationship with the EU and the implications of Brexit for UK taxation. The Charity automatically receives a copy of all published work, which is also made publicly available. ## EMPLOYEES The Charity does not employ any staff directly; all of the administration is on a voluntary basis by personnel vetted by the trustees. This is likely to continue for the foreseeable future. RESERVES AND INVESTMENT POLICIES It is the policy of the Charity to maintain reserves at a minimum, the intention being to use its incoming resources in order to carry out its stated objectives; consequently, the trustees consider that an investment policy is inappropriate. ## TRUSTEES’ RESPONSIBILITIES Charity law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the Charity and of the surplus or deficit of the Charity for that period. In preparing those financial statements the trustees have: - Selected suitable accounting policies and applied them consistently - made judgements and estimates that are reasonable and prudent - stated whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepared the financial statements on a going concern basis (unless it is inappropriate to presume that the Trust will continue in operation). 3 The trustees have overall responsibility for ensuring that the Charity has an appropriate system of controls, financial and otherwise. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the assets of the Charity and hence for taking reasonable steps for the detection and prevention of fraud and other irregularities. ## FOUNDATION FOR SOCIAL AND ECONOMIC THINKING Trustees Report for the year ended 30 April 2022 Continued ## RISK MANAGEMENT The trustees have assessed the major risks to which the Charity is exposed, in particular those relating to the operations and finances of the Charity, and are satisfied that systems are in place to mitigate our exposure to the major risks. This report was approved by the trustees on 27 January 2023 and signed on its behalf, by: Dr Sheila Lawlor 4 ## FOUNDATION FOR SOCIAL AND ECONOMIC THINKING ## **Independent examiner’s report to the trustees of the Foundation for Social and Economic Thinking.** I report on the accounts of the Trust for the year ended 30 April 2022, which are set out on pages 5 and 6. ## **Respective responsibilities of trustees and examiner** The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. ## **Basis of independent examiner’s statement** . My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement. ## **Independent examiner’s statement** . In connection with my examination, no matter has come to my attention: - (i) which gives me reasonable cause to believe that in any material respect the requirements: - To keep accounting records in accordance with section 130 of the 2011 Act and 5 - To prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act have not been met; or - (ii) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. NJ Diss, Independent Examiner Chartered Accountant Reardon & Co Limited, Ash House, Breckenwood Road Fulbourn, Cambridge, CB21 5DQ ## FOUNDATION FOR SOCIAL AND ECONOMIC THINKING STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 30 APRIL 2022 ||Total and|Total and| |---|---|---| ||Unrestric|Unrestric| ||ted|ted| ||Funds|Funds| ||2022|2021| |INCOMING RESOURCES|£|£| |Donations including income tax recoverable|40,500|52,000| |Investment income comprising bank interest|-|-| |received||| ||----------|---------| |TOTAL INCOMING RESOURCES|40,500|52,000| ||----------|---------| |RESOURCES EXPENDED||| |Charitable expenditure:||| |Grants payable – institutional (Note 2)|47,500|53,500| |Administration (Note 4)|6,640|15,285| ||---------|--------| |TOTAL RESOURCES EXPENDED|54,140|68,785| ||--------|---------| |NET MOVEMENT IN FUNDS FOR THE|(13,64|(16,785)| |YEAR|0)|| |TOTAL FUNDS AT 30 APRIL 2021|22,526|39,311| ||6|| --------------TOTAL FUNDS AT 30 APRIL 2022 £8,886 £22,526 ===== ===== The statement of financial activities includes all gains and losses recognised in the current period and previous year. The notes on page 8 form part of these financial statements. ## FOUNDATION FOR SOCIAL AND ECONOMIC THINKING STATEMENT OF ASSETS AND LIABILITIES AT 30 APRIL 2022 ||2022|2021| |---|---|---| ||£|£| |CURRENT ASSETS||| |Cash at bank|9,761|23,401| ||---------|----------| ||9,761|23,401| |CREDITORS: Amounts falling due within one|(8|(87| |year|75)|5)| |( Note 3)||| ||----------|--------| |NET CURRENT ASSETS|£8,886|£22,526| ||=====|=====| ||=|| |TOTAL ASSETS|£8,886|£22,526| ||=====|=====| ||=|| ||2022|2021| 7 £ £ REPRESENTED BY FUNDS: Unrestricted – General £8,886 £22,526 funds ===== ===== = APPROVED BY THE TRUSTEES ON 24 January 2023 SIGNED ON BEHALF OF TRUSTEES Dr Shelia Lawlor 8 FOUNDATION FOR SOCIAL AND ECONOMIC THINKING NOTES TO THE FINANCIAL STATEMENTS 2022 ## 1. ACCOUNTING POLICIES ## BASIS OF ACCOUNTING The financial statements have been prepared under the historical cost convention on a receipts and payments basis. ## FUND ACCOUNTING General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. There were no restricted funds for the period under review. ## INCOMING RESOURCES All incoming resources are included in the SOFA when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation. ## RESOURCES EXPENDED Grants payable are charged in the year when the offer is made except on 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 committed, but not accrued as expenditure. 2. GRANTS PAYABLE TO INSTITUTIONS 2022 2021 £ £ Grants payable to Politeia 47,500 £53,500 ====== ====== 3. CREDITORS Accounts payable £875 £875 ==== ==== 9 ## FOUNDATION FOR SOCIAL AND ECONOMIC THINKING NOTES TO THE FINANCIAL STATEMENTS 2022 |4. RESOURCES EXPENDED|2022|2021| |---|---|---| |Administration|£|£| |Rent & rates|6,004|14,685| |Accountancy|636|600| |Insurance|-|-| ||--------|-----------| ||6,640|£15,285| ||======|======| ## 5. NET INCOMING RESOURCES/RESOURCES EXPENDED No trustee has received any remuneration, benefits in kind or reimbursement of expenses in the year or previous period. 10