2021-03-31-accounts

The Borrow Foundation Report and Group Financial Statements

31 March 2021

Company Registration Number 03303900 (England and Wales) Charity Registration Number 1060308 (England and Wales)

Contents

Reports

Reports
Reference and administrative details of	the
company and its advisors	1
Trustees’ report	2
Independent auditor’s report	22
Financial statements
Group statement of financial activities	27
Balance sheets	28
Group statement of cash flows	30
Principal accounting policies	31
Notes to the financial statements	37

The Borrow Foundation

Reference and administrative details of the company and its advisors

Trustees	Professor A J Rugg-Gunn (Chair)
	N F Borrow
	Professor C Stecksen-Blicks
	Dr N M Thomas
Secretary	G D Secretarial Services Limited
Registered office	Padnell Grange
	Padnell Road
	Cowplain
	Waterlooville
	Hampshire
	PO8 8ED
Company registration number	03303900 (England and Wales)
Charity registration number	1060308
Auditor	Buzzacott LLP
	130 Wood Street
	London
	EC2V 6DL
Bankers	Lloyds Bank Plc
	43 West Street
	Fareham
	Hampshire
	PO16 0BE
Investment advisors	The Kane Group
	Westpoint House
	32-34 Albert Street
	Fleet
	Hampshire
	GU51 3RW
Solicitors	Goodman Derrick LLP
	10 St Bride Street
	London
	EC4A 4AD

The Borrow Foundation 1

Trustees’ report 31 March 2021

The trustees present their report and the audited group financial statements for the year ended 31 March 2021. The reference and administrative details of the charity, its trustees and advisers, set out on page 1, form part of this report.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purpose of company legislation.

The financial statements have been prepared in accordance with the accounting policies set out on pages 31 to 36 of the attached financial statements and comply with the charity’s Memorandum and Articles of Association, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Company registration

The charitable company is registered in England and Wales as company number 03303900.

Structure, governance and management

The Borrow Foundation (“the Foundation”) is a company limited by guarantee (company number 3303900) and is governed by its Memorandum and Articles of Association dated 24 March 2004. It is registered as a charity with the Charity Commission (charity number 1060308).

The original charity was set up as an unincorporated Trust under the terms of a Deed dated 23 March 1971. The Trust Deed was amended by a scheme approved by the Charity Commission dated 3 November 1993. The assets and liabilities were transferred in 1998 to the present charity being then a newly incorporated company.

Trustees

A trustee is a member of the Board of Trustees of the Foundation ("the Board") and a director for the purposes of the Companies Act 2006.

The trustees who held office during the year were as follows:

Professor A J Rugg-Gunn (Chair) JTP Roberts (resigned 5 November 2020) Professor Christina Stecksén-Blicks Dr N M Thomas N F Borrow

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Trustees’ report 31 March 2021

Trustees (continued)

Appointment of trustees

The Board keeps the skill requirements of the trustee body under review and is keen to ensure that representation is sufficiently diverse to meet the needs of the Foundation and its beneficiaries. Candidates are selected on the basis that they have the relevant skills and necessary commitment to contribute to the charity's development. Interviews are conducted by the trustees and appointments are subject to the formal approval of the Board. Trustees are encouraged to play an active role in the charity's work, according to their particular skills and experience, and this is an important factor when new appointments are under consideration.

Trustee induction and training

Prior to their appointments, prospective trustees are provided with an induction pack which includes the Charity Commission publication CC3 (‘The essential trustee: what you need to know, what you need to do’). The information also includes the financial statements of the charity and its subsidiary undertaking for the last three financial years, the minutes of recent trustees' meetings, a copy of the Memorandum and Articles of Association and details relating to the Finance Committee.

Those willing to undertake trusteeship are encouraged to visit the Foundation's offices to discuss further their potential role and obligations, meet the staff and be fully briefed on the charity's current activities and future plans.

Organisational structure

The charity is based in the UK, operating from offices in Cowplain, Hampshire.

The Board meets at least four times a year and Board members are in regular communication between meetings. It is responsible for the strategic direction and policy of the charity and for monitoring and evaluating performance.

Certain powers relating to the management of investments are delegated to a Finance Committee which has a duty to report back to the Board. Responsibility for the day-to-day management of the charity and the implementation of the policies and plans determined by the Board is delegated to one of the trustees, Nigel Borrow, who works full time for the group (as permitted by the charitable company's Memorandum and Articles of Association) in the capacity of Executive Director of the Charity and Managing Director of the subsidiary company.

Grant applications are determined by the trustees although external advice / guidance is often sought, for example, from the World Health Organization (WHO) and academics, particularly in the peer review of research proposals. Grants are awarded under formal agreements, requiring reports to be submitted at certain intervals and where appropriate, providing for periodic reviews.

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Trustees (continued)

Organisational structure (continued)

The charity's wholly owned subsidiary undertaking, Borrow Investments Limited (company registration number 00671291), carries out non-charitable trading activities. It holds approximately 287 acres of agricultural land at Horndean in Hampshire, together with an investment property in London. During the year the company made to the charity a Gift Aid payment of £608,369 (2020: £643,475), equivalent to all of its taxable profits relating to the previous financial year. The activities of that company are closely monitored by the trustees and in practice key decisions are subject to their approval.

Key management personnel

The trustees and the Executive Director are considered to be the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis.

The remuneration of the Executive Director is reviewed annually. In undertaking these reviews, the trustees have regard for performance, inflation, trends in pay in the relevant sectors and salaries paid for comparable roles, as well as any guidance from the charity’s professional advisers.

Objectives, activities and public benefit

The Foundation's objects are the prevention of oral disease and the promotion of oral health education for the benefit of the general public.

Despite being largely preventable, oral disease remains a global problem. It is a significant burden in virtually all countries and represents a widely underestimated public health challenge. It is the most prevalent non-communicable disease worldwide, affecting an estimated 3.5 billion people, almost half the world's population.

Good oral health is fundamental to general health, wellbeing and quality of life. Poor oral health can adversely impact on essential human functions such as eating, speaking, smiling and socialising; it can have serious consequences for children, affecting school attendance and performance, and causing low self-esteem and far-reaching effects into adulthood.

Oral diseases disproportionately affect poorer, socially disadvantaged and marginalised groups in society, creating unacceptable inequities.

Oral health has been acknowledged as an integral element of the right to health, and thus of the basic human rights enshrined in the UN Universal Declaration of Human Rights adopted by member states.

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Objectives, activities and public benefit (continued)

Mission and priorities

The Foundation’s mission is to promote the improvement of oral health, primarily in children, through the prevention of oral diseases. With the focus firmly on inequalities in oral health, the charity’s resources are being applied to strengthen the commitment to ‘prevention’ worldwide and more particularly to influence:

The wider engagement in prevention by health professionals and health authorities;

• Government policies and strategies that promote oral disease prevention as an integral part of wider health promotion programmes;

• The implementation and evaluation of sustainable population-based preventive programmes; and

Further research that will help strengthen the scientific basis for prevention.

Our priorities include:

• Population-based programmes that are targeted at the areas of greatest need and will help reduce inequalities, within and between countries;

• The use of fluorides in the prevention of dental caries, including their use in milk and milk products;

• The prevention of oral disease through the improvement of diet and nutrition;

• The use of kindergarten and school settings to promote oral health;

Early childhood caries (ECC);

• Strengthening the design of studies for the evaluation of community-based programmes;

Research into the above; and

Training and education in population oral health.

In particular we provide support to:

• Government agencies for the implementation and evaluation of sustainable population-based prevention programmes;

Academic institutes to undertake research;

• The World Health Organization to further its essential work in oral health promotion and integrated disease prevention; and

• Dental associations / organisations that promote dental public health and oral health research.

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Objectives, activities and public benefit (continued)

Mission and priorities (continued)

The trustees confirm that they have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

Risk management

The major risks to which the Foundation is exposed have been reviewed and the appropriate steps taken to manage such risks.

As the charity’s interests continue to grow and our support is reaching many countries around the world, the trustees recognise that there is an increased risk of grant funding being misappropriated or applied ineffectively due to the complexity of working overseas. Measures are taken to mitigate this risk.

Much of our work is carried out through leading organisations and academic institutions. Nevertheless, careful consideration is given to all potential partners and beneficiaries, having regard for their status and reputation, as well as their ability and capacity for managing and delivering the project or programme being contemplated. Regular reports required from beneficiaries under formal agreements enable performance to be measured against an agreed protocol or programme of work, and expenditure to be monitored against an approved budget. The reports are routinely considered at Board meetings. As a further control, grants are generally paid by instalments, the release of such instalments being conditional on the beneficiaries fulfilling their obligations.

The variability of investment returns is a major financial risk for the charity. The necessary measures have been taken to mitigate this risk. Professional advice is sought in respect of all investments. The long-term investment fund is managed by our investment advisors, The Kane Group. Quarterly meetings between the Finance Committee and the advisors ensure that the performance of the long-term investment fund is closely monitored, and that the investment strategy and portfolio diversification is kept under review. A substantial proportion of the charity’s income is generated by the subsidiary company; the company’s performance is also closely monitored, and management reports are routinely provided at Board meetings.

In addition to these measures, a cash reserve position adequate to meet the Foundation's short to medium term commitments is maintained, thereby minimising the potential impact of any sudden fall in income.

Like most other organisations, the Foundation is becoming increasingly reliant on IT and technology. The trustees consider digital development to be fundamentally important in the furtherance of the charity’s objects. At the same time, the trustees recognise that cybercrime poses an ever evolving threat and, as our dependence on technology grows, the risk and potential impact of security breaches increases and cybercrime poses an ever evolving threat to the charity.

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Objectives, activities and public benefit (continued)

Risk management (continued)

The necessary steps have been taken to mitigate these risks. IT consultants are engaged to manage, monitor and advise on IT systems and procedures. They have applied, and keep under review, the appropriate measures and controls to protect against cyberattacks; remote monitoring being a vital aspect of these defences. The consultants have also delivered a training and awareness programme for staff. This has been complemented by online training resources, provided by the National Cyber Security Centre, which have proved to be particularly important where staff have been working remotely during the pandemic.

COVID-19

The outbreak of COVID-19 and the measures applied around the globe to restrict the spread of the virus have had an adverse effect on the charity’s interests. The risks have been assessed and kept under review. Having followed government guidance and sought external advice, we have applied all reasonable measures to ensure the safety and wellbeing of those associated with the charity. We have also taken the necessary steps to minimise the financial and operational impact of the pandemic on the Foundation’s work.

With a small number of staff and good IT systems and support, when the nationwide lockdown was imposed in March 2020 we were well-placed to extend the facilities for homeworking to all staff that were able to carry out their duties remotely. Through these arrangements, and the embrace of new technologies and ways of working, the charity has continued to operate effectively throughout the pandemic.

The implementation of a number of programmes / projects supported by the charity has been delayed. However, extensive communication and careful planning with the grantees has ensured that the impact has been minimised and the charity’s resources protected. Where necessary, additional time has been provided to allow projects to be delivered safely and effectively. In some cases, no-cost extensions have been agreed. Other projects have been paused, and proposed new grants put on hold, until such time that the restrictions applied in respect of COVID-19 are eased. Towards the end of the year, a number of awards were made to leading academic institutes to undertake important research that can be described as ‘COVID-19 proof’; these studies are well under way and have ensured the furtherance of the charity’s objects despite the constraints faced over the pandemic.

With concern growing over the rapid spread of COVID-19 and the potential impact this could have on the world economy, in spring 2020 global markets plummeted. This led to a sharp fall in the capital value of the charity’s long-term investment portfolio. The investment income was also affected, with dividends being cut or suspended by many companies. Whilst there has been a substantial recovery in value during the financial year and markets have since held up well, regular discussions with our investment advisers, in between the quarterly meetings of the Finance Committee, have ensured that the performance of the portfolio is kept under close review and the necessary decisions made without delay.

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Achievements and performance

In recent years the Foundation’s work has expanded greatly in scope. The number of countries in which our resources are being applied, and the number of people benefitting from the activities we fund, has grown substantially. Despite the challenges faced over the pandemic, the trustees remain committed to the further expansion of the work supported by the charity.

Collaboration with the World Health Organization (WHO)

The Foundation is proud to be continuing to make contributions towards the vital work being undertaken by WHO.

Global oral health programme

A substantial grant has been made towards three key areas of work planned under the WHO’s Global Oral Health Programme.

Within this programme, the development of a Global Oral Health Report and Global Oral Health Strategy is ongoing. It has involved extensive consultation and is helping to revitalise WHO’s commitment to improve oral health worldwide.

The delivery of the report proved to be a vital step towards the adoption of a historic resolution on oral health, at the World Health Assembly in May 2021. The resolution urges member states to address key risk factors of oral diseases that are shared with other noncommunicable diseases, for example, high intake of free sugars, tobacco use and harmful use of alcohol. The resolution also recommends a shift away from the traditional curative approach, towards a preventive approach, highlighting the importance of oral health promotion within the family, schools, and workplaces, as well as timely, comprehensive, and inclusive care within the primary health care system. Capacity building for oral health professionals is another priority indicated in this landmark resolution.

The strategy will provide the basis for the development of a Global Oral Health Action Plan (2021 – 2030), under a wider programme of work being carried out by WHO’s Noncommunicable Diseases Department, to help meet the United Nations’ Sustainable Development Goals.

The grant also provides for:

• Capacity building and technical assistance provided by WHO at a regional and country level to promote the life-course approach and population-based strategies for oral health promotion and oral disease prevention. This work will extend across two regions. In the Eastern Mediterranean priority is being given to population-based fluoride programmes. In Africa the focus is firmly on cost-effectiveness of interventions, and more particularly, the development of ‘best buys’ in accordance with the guidance provided under the WHO Global Action Plan for the Prevention and Control of Non-communicable Diseases.

• The reinforcement of oral health information and integrated surveillance systems with the updating of the oral health element of the existing WHO survey tool known as ‘Stepwise approach to surveillance’, to place greater emphasis on the key indicators used for oral health policy decision making.

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Achievements and performance (continued)

Collaboration with the World Health Organization (WHO) (continued)

WHO Regional Office for Africa (WHO AFRO)

A contribution has also been made towards the first phase of an e-training project implemented by WHO AFRO.

The project has been developed in accordance with the regional oral health strategy and guidance published by the regional office on ‘Promoting Oral Health in Africa’. It aims to better equip chief dental officers or their equivalent (CDOs) to train primary care workers in oral health promotion and oral disease prevention and control. The project could also help establish a virtual community of practice, providing a platform for WHO and the CDOs to share information and experience. It is being delivered by WHO AFRO in collaboration with the Harvard School of Dental Medicine and the University of Montpellier. The first phase of this initiative will provide a clearer picture of the needs and opportunities for e-training in the region and inform the development of a protocol for the further stages of the project.

The Lancet Commission

The charity was pleased to provide support to help establish the Lancet Commission on Oral Health.

In July 2019 a ground-breaking oral health series was published in The Lancet . The series highlighted the global public health significance of oral diseases and the need for a radically different policy agenda to tackle this major problem. Never before in the 196-year history of this prestigious journal has oral health been given such a high profile, and the series generated considerable interest worldwide. This led to the decision to establish the commission, which was launched in London in March 2020. Twenty-seven experts engaged in academic research, policymaking, health and human rights advocacy, and clinical dentistry, from 16 countries, were appointed as commissioners. Their focus is on four key priorities: (i) global advocacy and policy development, (ii) equity, social justice, and oral health, (iii) health system reform, governance, and transformation, and (iv) commercial determinants.

Regular meetings of the working groups, held virtually, have ensured good progress in the planned programme of work. The advances made in the project have been kept under close review through meetings between the commission co-chairs and the editor and other principal staff at The Lancet . A comment article on the World Health Assembly resolution has been published in the journal. In July 2021, a satellite symposium was held during the General Session of the International Association for Dental Research (IADR). The commission has attracted considerable support worldwide, and interest in its work continues to grow.

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Achievements and performance (continued)

Oral Health Birth Cohort Studies Consortium

A grant has been provided to the National Dental Research Institute, Singapore , for a three-year programme of work, to help establish a global consortium on oral health birth cohort studies (OHBCS). The study commenced in March 2021.

The importance of birth cohort studies is widely recognised amongst the scientific community. The charity was therefore pleased to organise, in conjunction with Griffith University, South East Queensland, Australia, a workshop that brought together, from five continents, 12 researchers that had been closely engaged in OHBCS. The meeting, the first of its kind, was held in Thailand in November 2019. An important outcome of this event was the decision to form the consortium, the overarching aim being to establish a sustainable collaborative network of researchers working in this field, to strengthen and develop this important area of research.

Population-based oral health

Support has been provided for a number of ongoing and new population-based oral health projects.

New awards

Three important studies are being undertaken at the University of Glasgow, UK . These are linked to Childsmile; a national programme designed to improve the oral health of children in Scotland and reduce inequalities both in dental health and access to dental services.

The first of these is entitled ‘Early Childhood Caries: understanding the role of early life behaviours and social determinants on risk and inequalities: A novel data linkage cohort study’. The aim is to explore early life child-, family- and community-level influences on early childhood caries, the underlying inequalities, and the impact of the Childsmile programme on behaviour change, improving oral health, and reducing inequalities. It involves three cohorts of children, born in 2002 / 03, 2004 / 05, and 2010 / 11, and around 11,000 subjects in total.

There are two parts to the second study. The researchers will seek to establish a clear international consensus on fluoride-based ECC prevention in educational (pre-school) and other early years settings, from a panel of 20 purposively selected independent experts.

In the second part, programmes implemented in south-east Europe will be benchmarked against the WHO guidance on ECC which covers a range of risk factor reduction domains such as diet/ feeding in young children, fluoride exposure, and health education.

A subsequent online workshop will allow for benchmarking data to be presented and discussed; this will be guided by Childsmile programme theory and research. Brief reports will be procured from participants, at one- and six- month intervals, to assess impact and progress. The researchers will synthesise the results and disseminate clear programmelevel recommendations on the prevention and management of ECC.

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Achievements and performance (continued)

Population-based oral health (continued)

The third study will assess the reach and impact of the Childsmile programme on children living in the most deprived communities and on vulnerable groups of care-experienced children, having particular regard for their oral health and school attendance levels.

A grant has been provided to the University College of London, UK , to undertake a scoping review that could, potentially be of global significance. In recent years, reviews of the literature have highlighted the limitations of clinical and educational interventions (downstream) in achieving long-term sustainable improvements in population oral health and reducing oral health inequalities; there is a general consensus that a combination of downstream, midstream, and upstream interventions is required. By considering the global literature, the review will assess the effectiveness of upstream policy interventions in promoting oral health and reducing oral health inequalities. It will complement the work being undertaken by the Lancet commission which includes a policy and oral health inequalities workstream.

A study entitled ‘Holistic approach to address socioeconomic inequalities in child oral health – Evidence synthesis’ has been conducted at The University of Adelaide, Australia, aiming to investigate factors influencing socioeconomic inequalities in child dental health at multiple levels. This was achieved by synthesising the existing evidence of the effects of determinants of child oral health and inequalities, and developing a conceptual framework using a complex systems approach involving multiple sectors and players.

The WHO recommends using digital interventions and integrating technology in health care organisations to strengthen health care systems. Although interest in digital health is growing rapidly, it is suggested that the oral health community has failed to keep pace with the advances in this field. The trustees are therefore pleased to be supporting a project that will seek to assess, at a global level, the potential for digital oral health and the organisational, governmental, and societal e-readiness. The work is being conducted by the University of Montpellier, France, in collaboration with McGill University, Montréal, Canada, and WHO.

Funding is being provided for a scoping review being undertaken at Teesside University, UK. Whilst daily urinary fluoride excretion has been recognised as a suitable biomarker for monitoring fluoride exposure in community prevention programmes, there are practical difficulties in collecting samples from children over a 24-hour period. Spot urine samples and nail clippings are simpler alternatives, and the study will map the current literature / evidence on the use of these biomarkers for monitoring fluoride exposure at a community level. The results will help inform practice and guide future research.

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Achievements and performance (continued)

Population-based oral health (continued)

In the Netherlands , support has been provided for a project that aims to reduce the burden of caries amongst people of low socio-economic position (SEP) through the integration of oral health into an established programme (Amsterdam Healthy Weight Program) designed to reduce the rates of obesity in children. The first stage of the project, being undertaken by the Academic Centre for Dentistry Amsterdam, will provide an insight to the daily life of low SEP families and their stakeholders. This will be achieved through mapping the needs, perspectives, opportunities, and challenges faced in improving the oral health of children aged 0 – 4½ years. The findings will inform the second stage, which will adopt a participatory action research approach towards developing, implementing, and evaluating child oral health promotion interventions, tailored to needs and local context.

The Foundation is pleased to be amongst those supporting ‘The MalDent Project’, which aims to make important changes towards improving oral healthcare in Malawi. The Kamuzu University of Health Sciences and the University of Glasgow have secured a substantial grant from the Scottish Government to help establish the first dental school in Malawi and carry out complementary educational and research activities. One of those activities is the development of a child oral health improvement strategy. Our funding is being applied to this aspect of the project, which will involve three phases: a national child oral health survey, a situation analysis that will help identify potential models for the prevention of oral disease in children, and workshops for national stakeholders that will consider the findings of the first two phases and how these might be translated into strategy.

The support of health needs assessments remains a priority for the charity. In Uzbekistan a national child oral health survey of 7- and 12-year-old schoolchildren is being carried out by the Tashkent State Dental Institute, with the full endorsement of the Ministry of Health. Technical assistance is being provided by Witten / Herdecke University, Germany. A total of 12,340 children will be examined. The work is nearing completion and importantly, the results will inform the review and development of policies / strategies to improve oral health in Uzbekistan.

A national child oral health survey is being conducted in Bhutan under the auspices of the Ministry of Health. Data are to be collected from all 20 districts of the country, across six age groups: 6-, 12-, 15-, 35 – 44, 55 – 64, and 65 – 74-year-olds. More than 12,000 subjects will be examined, and the results will provide a sound basis for the review and development of oral health policy.

Ongoing Projects

Our support has continued to be applied to a number of other projects, in:

• Sudan for a study entitled ‘Dental fluorosis, molar incisor hypomineralization & amelogenesis imperfecta – Validated clinical assessment and evidence for genetic factors in Khartoum State’, being conducted under a PhD project at the Centre for Oral Health Research, School of Dentistry, University of Leeds.

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Achievements and performance (continued)

Population-based oral health (continued)

• Sweden where an intervention study is being carried out by the Faculty of Odontology, Malmö University, entitled ‘Bacterial acid tolerance – a new target for fluoridated milk in caries prevention’.

• Ethiopia to help establish a special care dentistry curriculum for dentists and dental students across the country. This was delivered and co-funded by the Global Child Dental Fund (operating from Kings College, London), and involved collaboration with Mekelle University and the Ethiopian Dental Association. The success of this project has encouraged the Global Child Dental Fund to promote similar programmes in other low-income countries.

• Palestine where an intervention has been piloted by the Ministry of Health to strengthen oral health promotion in schools. The project has been implemented in the West Bank and Gaza Strip, in accordance with the WHO Health Promoting Schools concept. The project is nearing the end and the results will be widely disseminated through a national workshop and presentations at scientific meetings. Papers will also be submitted for publication in peer-review journals.

• Cambodia where a longitudinal oral health survey has been designed to examine the ways in which dental caries experience is linked with, and contributes to undernutrition, and to establish evidence for a theoretical model of the relationship between dental caries and under-nutrition in a Cambodian environment. The survey has been implemented by the Oral Health Bureau, Ministry of Health. It focuses on early childhood caries and has been carried out alongside a UNICEF initiative known as the Cambodian Health and Nutrition Monitoring Study (CAHENMS). Importantly, the project has facilitated closer relationships between the agencies engaged in maternal and child health in Cambodia, and the outcomes will be used by the Ministry of Health and its collaborators to inform the review and development of strategies for the prevention and management of this important public health issue.

• The Dominican Republic where work is being carried out at the University of Iberoamericana to improve dental health among toddlers, by fostering cooperation between dentists and paediatricians. There are two parts to the project. An oral health education programme has been developed and is being evaluated through a randomised controlled trial. This aspect of the work is well advanced. An epidemiological survey, involving approximately 3,000 3-, 6-, and 8-year-old children is also planned, although this is on hold due to the measures taken by the government to restrict the spread of COVID-19.

• Chile where a school-based milk fluoridation scheme has been long established as an integral part of a national School Food Assistance Programme. This intervention is operated by the Junta Nacional de Auxilio Escolar y Becas, an agency of the Ministry of Education which seeks to achieve equality for all schoolchildren. Although it has been derailed by the pandemic, the recommencement of the programme is anticipated as schools across the country are reopening.

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Achievements and performance (continued)

Population-based oral health (continued)

Thailand , where the Department of Health, Ministry of Public Health, is seeking to reintroduce the supply of fluoridated milk to schools and kindergartens. These plans have been hampered by the pandemic although a retrospective study has been undertaken to reinforce the case for the programme.

Support for dental associations / organisations

We have continued to provide support for dental associations to undertake activities that help further the charity’s objects. For example, our sponsorship for the European Association for Dental Public Health (EADPH) has been applied to several valuable initiatives. One of these is the scheme providing membership subsidy to 100 dental public health professionals in the lower-income countries of Europe. This has proved most successful; awards have been taken up in 18 countries, many of which were previously under-represented or not represented in the organisation.

The EADPH Board has widely acknowledged that our contribution has made a significant impact on the organisation’s development. The success of this collaboration has also been hugely beneficial to the Foundation, helping to extend our links and raise our profile across Europe and beyond.

The charity has also enjoyed a longstanding and valuable relationship with the International Association for Dental Research (IADR). The IADR E.W. Borrow Memorial Award was established in 1992 to recognise and stimulate research in oral health promotion for children, with priority given to caries prevention using fluoride in different forms. The Award is made annually, during the IADR General Session; in 2021 the recipient was Professor Edward Lo, The University of Hong Kong, SAR, China.

During the Autumn Scientific Meeting of the British Association for the Study of Community Dentistry (BASCD), held in December 2020, the BASCD – Borrow Foundation Early Career Award was made to Yasmen Elsadek, Sheffield University, for her poster on ‘Assessing community readiness for child oral health improvement in Sheffield’. Aimed at early career researchers, this award is made at the annual meeting for the best poster presentation on population oral health, health improvement or oral health care and policy. The winner receives a small monetary prize and is also offered support to participate, and present their work, at the annual EADPH scientific congress.

A three-year grant provided to the British Fluoridation Society (BFS) has helped reinforce and extend its valuable work in promoting community water fluoridation in the UK. There have been some encouraging developments. Most importantly, under the Government's recently published Health and Care White Paper, it is proposed that the Department of Health and Social Care should assume responsibility for any new fluoridation schemes, thereby streamlining the process and removing the burden from local authorities.

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Achievements and performance (continued)

Publications

The following publications and presentations resulted from research supported by the Foundation:

• Benzian H, Guarnizo-Herreño CC, Kearns C, Muriithi MW, Watt RG. The WHO global strategy for oral health: an opportunity for bold action. Lancet 2021;398:192-194 DOI:https://doi.org/10.1016/S0140-6736(21)01404-5

• Peres KG, Thomson WM, Chaffee BW, Peres MA, Birungi N, Do LG, Feldens CA, Fontana M, Marshall TA, Pitiphat W, Seow WK, Wagner Y, Wong HM, Rugg-Gunn AJ. Oral Health Birth Cohort Studies: Achievements, Challenges, and Potential. J Dent Res. 2020;99(12):1321-1331.

• Phurpa D, Ngedup S, Pem D, Lee MA. Oral Health Status of 3- to 5 -Year-old children attending early childhood care and development centers in Bhutan: A pilot study. Bhutan Health Journal. 20;6(2)19-26.

• Renggli EP, Turton B, Sokal-Gutierrez K, Hondru G, Chher T, Hak S, Poirot E, Laillou A. Stunting malnutrition associated with severe tooth decay in Cambodian toddlers. Nutrients 2021;13,290.

• StangvaltaiteErosive tooth wear among adults in Lithuania: a cross-sectional national oral health study. Caries Res. 2020;54:283-291.

• Szöke J, Petersen PE. Changing levels of dental caries over 30 years among children in a country of central and Eastern Europe – The case of Hungary. Oral Health Prev Dent. 2020;18:177-183.

• Stangvaltaite-Mouhat L, A, Aleksejuniene J, Stankeviciene I, Tommeras B and Al-Haroni M. Amylase Alpha 1 Gene (AMY1) Copy Number Variation and Dental Caries Experience: A Pilot Study among Adults in Lithuania. Caries Res. 2021;55:174–182.

• Caries Experience of 6-Years Old Children in Romania – The National Romanian Oral Health Survey R. Sava-Rosianu R, Campus G, Galuscan A, Dumitrescu L. Caries Res 2020;54:369–456 DOI: 10.1159/000511860, 67[th] ORCA Congress.

Plans for future periods

A number of the population-based prevention projects and clinical and laboratory studies funded by the charity have been affected by the pandemic. We will continue to work closely with our grant holders to ensure that these projects can be delivered safely and effectively.

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Trustees’ report 31 March 2021

Plans for future periods (continued)

We will seek to develop and further strengthen our collaboration with WHO, extending our support for the vital work being carried out under its oral health programme. The development of the Global Oral Health Report proved to be fundamental to the adoption by member states of the landmark resolution on oral health (WHA74.5), during the World Health Assembly on 31[st] May 2021. The resolution calls for the development of a global oral health strategy (2022) and action plan (2023), to be aligned with the with noncommunicable disease (NCD) and universal health coverage (UHC) agendas. The trustees recognise the potential importance of the steps being taken by WHO to revitalise and extend commitment to the improvement of oral health worldwide. The focus on prevention is particularly important to the charity, and ongoing support will be provided for the development of the global strategy and action plan.

Since the financial year end, a call for grant applications has been made. Having reviewed the funding priorities, the trustees invited proposals for projects that could help achieve the Foundation’s mission and in particular, for:

• The implementation and evaluation of sustainable population-based projects / programmes that are targeted at the areas of greatest need, and could help reduce inequalities in oral health within and between countries

• The implementation of other population-based oral health initiatives that could influence / inform the review and development of health policy and strategies

• The conduct of research that could strengthen the evidence base for the prevention of dental diseases.

Applicants have been encouraged to consider WHA74.5 and advised that applications that are in line with the recommendations set out in this resolution will be viewed favourably. There has been unprecedented interest shown in the call and it is anticipated that a number of grants will be awarded by 31[st] March 2022.

We are also looking to develop existing and new partnerships with leading agencies, organisations and charities whose interests overlap with those of the charity.

Financial review

Results for the year

The statement of financial activities shows an increase in unrestricted funds during the year of £304,922 (2020 – increase of £198,659) with total income amounting to £1,804,000 (2020 – £1,598,485) and expenditure totalling £1,499,078 (2020 – £1,399,826).

Total income comprises £1,522,228 (2020 – £1,240,269) of income from commercial activities and £281,772 (2020 – £358,216) generated by the charity’s investments.

Total expenditure comprises expenditure on charitable activities of £806,189 (2020 – £780,728) and cost of raising funds of £692,889 (2020 – £619,098).

The Borrow Foundation 16

Trustees’ report 31 March 2021

Financial review (continued)

Results for the year (continued)

The revaluation of the listed investment portfolio resulted in an unrealised gain of £1,959,071 (2020 – £1,301,298 loss). The revaluation of the investment property held in the Foundation’s subsidiary resulted in an unrealised gain of £1,200,000 (2020 – £nil).

The results of the Foundation's subsidiary undertaking, Borrow Investments Limited contributed net profits to the group excluding investment gains of £856,099 (2020 – £685,413) on a turnover of £1,498,288 (2020 – £1,216,330).

Investment policy

The trustees consider that the variability of investment returns on the Foundation's longterm investment fund inevitably constitutes a potential risk to the charity's funds. Appropriate steps therefore have been taken to mitigate this risk through a defined investment strategy, professional advice, portfolio diversification and a suitable reserves policy.

The nature of the Foundation's charitable activity together with its cash reserves policy are such that the trustees consider the appropriate objective for the portfolio is one of a balance between income and capital growth. It is the trustees' view that a balanced investment strategy will enable the charity to meet its funding commitments and potentially, expand further the level of support applied to its charitable activities.

The trustees recognise that an investment policy with a capital growth objective necessarily involves some risk to capital. Consequently, it is understood that the value of investments will routinely fluctuate and sometimes the value change will be swift and extreme. It is the trustees' view that they are prepared to tolerate a reasonable degree of capital risk and volatility on the long-term investment portfolio so long as this is commensurate with the potential for growth and subject to adequate portfolio diversification. In particular, the trustees consider the use of collective investment funds within the portfolio to be important in helping to achieve a suitable balance between investment risk and reward and to gain appropriate and diversified exposure to overseas and specialist markets.

Additionally, the trustees deem a deliberate policy of high cash retention outside of the long-term investment portfolio to be relevant to buffer short-term fluctuations in capital value and to maintain liquidity for committed funding programmes.

Investment performance

Over the year ended 31 March 2021, the group's investments increased in value by £3,860,926 from £25,288,200 to £29,149,126 in total. This increase in value includes an increase of £1,959,071 (2020 – £1,301,298 loss) in the unrealised value of the group's long-term investment portfolio for the year, and an unrealised gain of £1,200,000 (2020 – £nil) on the revaluation of the investment property.

The Borrow Foundation 17

Trustees’ report 31 March 2021

Financial review (continued)

Investment performance (continued)

The substantial increase in the capital value of the portfolio was, primarily, a bounce back from the COVID-19 induced trough. Since year-end, there has been continued growth in capital value and a good recovery in income yield, which had also been adversely affected by the pandemic. Despite this, the trustees and their advisers recognise that investment values are vulnerable to uncertainty over the economic outlook. The ongoing global challenges faced around COVID-19 and the long-term impact of Brexit on the UK economy are of particular concern. Inflation is also considered to be a key metric.

The Foundation has a core target for its long-term investment portfolio to out-perform cash or near cash instruments over 3-year rolling periods, measured on a total return basis net of fees. Over the period from 1 April 2018 to 31 March 2021 this core target was achieved (this target was not achieved over the period 1 April 2017 – 31 March 2020).

Investment strategy

The investment strategy is kept under regular review; the trustees and their investment advisers remain vigilant around the risk to capital value and have taken appropriate steps to mitigate the potential for enforced losses. Additionally, the trustees are satisfied that the income yield is sustainable and has potential to increase over time.

A cash reserve position adequate to meet the Foundation's short to medium term commitments is maintained so as to negate the need for enforced realisation of investments; thereby limiting the impact on its long-term portfolio of any adverse changes in financial markets.

Going concern assessment

The trustees / directors and the management have undertaken an assessment of the group’s ability to continue operating as a going concern. The assessment covers a period of 16 months, ending on 31 March 2023. Consideration has been given to all available information about the future, as well as the ongoing impact of COVID-19.

Base case and worst-case cash flow forecasts have been prepared for the charity and the subsidiary company. In the worst-case scenarios, a significant fall across all income streams has been projected. In the case of the subsidiary company, we have assumed that gift aid payments equal to the taxable profits will continue to be made to the charity. We have also assumed that the anticipated sale of land at Hazleton Farm will not proceed and made allowance for abortive costs. In the case of the charity, under the worst-case scenario, we have assumed that the projected level of charitable expenditure would not be adjusted despite a substantial fall in income.

Having carried out the assessment, the trustees / directors are satisfied that both the charity and subsidiary company have sufficient reserves to meet their obligations over the period in question and there are no material uncertainties over the viability of the two entities and the financial statements should be prepared using the going concern basis of accounting.

The Borrow Foundation 18

Trustees’ report 31 March 2021

Financial review (continued)

Fixed assets

The trustees confirm that the assets of the Foundation are adequate and available to fulfil their obligations.

The trustees believe that the market value of the freehold land and buildings held by the group and charitable company is substantially in excess of the carrying value but no formal valuation has been commissioned and any value attributed cannot be assessed with sufficient precision, particularly in current market conditions.

On 15 September 2017 Borrow Investments Limited entered into an option agreement to sell farmland, which is held at a net book value of approximately £300,000, for a minimum price of £20m, with the proceeds of any sale being payable in four tranches; on completion and then in three subsequent tranches. The purchaser has the right to exercise the option until the expiry date of 14 September 2022, which is likely to be dependent on obtaining planning permission for the site.

Reserves policy

The trustees have reviewed the Foundation's needs for reserves in line with the guidance issued by the Charity Commission and have concluded that the charity requires reserves in order to meet its current grant commitments and to provide a sustainable future income for the charity. The charity aims to maintain its free reserves balance (excluding all fixed assets, deferred tax liabilities and grant commitments) between £nil and £300,000 to ensure there is a small reserve to meet future unforeseen expenditure. The deferred tax liability, required by FRS 102 within the financial statements of the subsidiary undertaking, has been excluded because it is likely that a gift aid payment would be made upon sale of the underlying asset to ensure there is no actual liability

The trustees have set aside £615,956 (2020 – £529,228) to meet commitments made at the year-end for research grant payments covering a period to 31 March 2022 (note 17). The Foundation also considers that the group's total fixed assets of £29,941,070 (2020 – £26,091,223), which includes the group's investments, do not constitute free reserves as they are held for the purpose of generating income to further the Foundation's objectives. The balance of funds (excluding all fixed assets, deferred tax liabilities and grant commitments) therefore amounts to a deficit of £226,175 (2020 – surplus of £246,407). The group is working towards meeting its free reserves policy. Although there is a deficit in free reserves based on the group’s own policy, including investments in the free reserves calculation gives a free reserves balance of £9,988,775 (2020 - £8,244,437). The intention is to hold these funds for the purpose of generating income, however these funds are able to be withdrawn if necessary.

Indemnity given by the charitable company in favour of its trustees

The trustees are indemnified by the charitable company against all losses which they may incur in the execution of the duties of their office, other than those arising as a result of their gross negligence or wilful default. No insurance policy effecting cover against any such liability has been purchased by the charitable company.

The Borrow Foundation 19

Trustees’ report 31 March 2021

Trustees' responsibilities statement

The trustees (who are also directors of The Borrow Foundation for the purposes of the company law) are responsible for preparing the trustees' report and the group financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure of the group for that period. Under company law the trustees 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 group and of the income or expenditure of the group for that period.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102);

• make judgements and accounting estimates that are reasonable and prudent;

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

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

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

Each of the trustees confirms that:

• so far as the trustee is aware, there is no relevant audit information of which the company’s auditor is unaware; and

• the trustee has taken all the steps that he or she ought to have taken as a trustee in order to make himself or herself aware of any relevant audit information and to establish that the company’s auditor is aware of the information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

The Borrow Foundation 20

Trustees’ report 31 March 2021

Small companies provision

The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime in Part 15 of the Companies Act 2006.

Approved and authorised for issue by the Board of Trustees on and signed on its behalf by

Trustee

Nigel Thomas

The Borrow Foundation 21

Independent auditor’s report 31 March 2021

Independent auditor’s report to the members of The Borrow Foundation

Opinion

We have audited the financial statements of The Borrow Foundation (the ‘charitable parent company’) and its subsidiary (the ‘group’) for the year ended 31 March 2021 which comprise the group statement of financial activities, the group and charitable parent company balance sheets, the statement of cash flows, the principal accounting policies and the notes to the financial statements. 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:

• give a true and fair view of the state of the group’s and of the charitable parent company’s affairs as at 31 March 2021 and of the group’s income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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 group and the charitable company 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 group’s or the charitable parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

The Borrow Foundation 22

Independent auditor’s report 31 March 2021

Other information

The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report and financial statements. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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

• the Trustees’ report, which is also the directors’ report for the purposes of company law, 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 group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept; or

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

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

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

• 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.

The Borrow Foundation 23

Independent auditor’s report 31 March 2021

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the group and the charitable parent company for the purposes of company law) 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 group’s and the charitable parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group and the charitable parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the charitable parent company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102)), Charities Act 2011, the Companies Act 2006, and those that relate to data protection (General Data Protection Regulation); and

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

The Borrow Foundation 24

Independent auditor’s report 31 March 2021

Auditor’s responsibilities for the audit of the financial statements (continued)

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the group’s and the charitable parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of key management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested and reviewed journal entries to identify unusual transactions;

• tested the authorisation of expenditure, ensuring expenditure was approved in line with the group and the charitable parent company’s financial procedures;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;

• reviewing the minutes of meetings of those charged with governance; and

• enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

The Borrow Foundation 25

Independent auditor’s report 31 March 2021

Auditor’s responsibilities for the audit of the financial statements (continued) A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the 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.

Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 16 December 2021

The Borrow Foundation 26

Group statement of financial activities Year to 31 March 2021 (including an income and expenditure account)

Notes	Unrestricted	Unrestricted	Total funds 2021 £	Unrestricted	Unrestricted	Total funds 2020 £
	General funds £	Revaluation reserves £		General funds £	Revaluation reserves £
Income from Other trading activities 1 Investments 2 Total income Expenditure on Raising funds . Commercial trading operations . Professional fees 3 Charitable activities 4 Total expenditure Net investment gains (losses) 11 Revaluation of investment property 11 Deferred tax on revaluation 14 Net income (expenditure) 7 Net movement in funds for the year 15 Total funds brought forward Total funds carried forward 15	1,522,228 281,772	— —	1,522,228 281,772	1,240,269 358,216	— —	1,240,269 358,216
	1,804,000 646,253 46,636	— — —	1,804,000 646,253 46,636	1,598,485 575,800 43,298	— — —	1,598,485 575,800 43,298
	692,889 806,189	— —	692,889 806,189	619,098 780,728	— —	619,098 780,728
	1,499,078 — — — 304,922 304,922 12,941,210	— 1,959,071 1,200,000 (441,370) 2,717,701 2,717,701 12,112,003	1,499,078 1,959,071 1,200,000 (441,370) 3,022,623 3,022,623 25,053,213	1,399,826 — — — 198,659 198,659 12,742,551	— (1,301,298) — — (1,301,298) (1,301,298) 13,413,301	1,399,826 (1,301,298) — — (1,102,639) (1,102,639) 26,155,852
	13,246,132	14,829,704	28,075,836	12,941,210	12,112,003	25,053,213

Net income for the year derives from the continuing operations of the charitable company and its subsidiary undertaking.

All income and expenditure relates to unrestricted funds in both the current and prior years.

All gains and losses are included in the statement of financial activities.

The Borrow Foundation 27

Group balance sheet As at 31 March 2021

Notes	2021 £	2021 £	2020 £	2020 £
Fixed assets Tangible assets 10 Investments 11 Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors:amounts falling due after more than one year 14 Net assets The funds of the group General funds 15 Revaluation reserves 15 Total funds 15	399,859 743,519	791,944 29,149,126	208,700 1,376,587	803,023 25,288,200
		29,941,070 636,046 30,577,116 (2,501,280) 28,075,836 13,246,132 14,829,704		26,091,223 1,021,900 27,113,123 (2,059,910) 25,053,213 12,941,210 12,112,003
	1,143,378 (507,332)		1,585,287 (563,387)
		28,075,836		25,053,213

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime in Part 15 of the Companies Act 2006.

Approved and authorised for issue by the Board of Trustees on:

and signed on its behalf by

Trustee

Nigel Thomas

Company registration number 03303900 (England and Wales)

The Borrow Foundation 28

Charitable company balance sheet As at 31 March 2021

Notes	2021 £	2021 £	2020 £	2020 £
Fixed assets Tangible assets 10 Investments 11 Current assets Debtors 12 . Amounts due after one year . Amounts due within one year Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current (liabilities) assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 The funds of the charity General funds 15 Revaluation reserves 15 Total funds 15	69,613 71,920	491,610 15,648,662	73,437 790,101	498,028 12,987,736
		16,140,272 1,900,000 (39,032)		13,485,764 1,900,000 520,728
	141,533 (180,565)		863,538 (342,810)
		18,001,240 (3,990) 17,997,250 13,987,531 4,009,719		15,906,492 (3,990) 15,902,502 13,851,854 2,050,648
		17,997,250		15,902,502

Approved and authorised for issue by the Board of Trustees on and signed on its behalf by

Trustee

Nigel Thomas

Company registration number 03303900 (England and Wales)

The Borrow Foundation 29

Group statement of cash flows 31 March 2021

Notes	2021 £	2020 £
Cash flows from operating activities: Net cash (used in) provided by operating activities A Cash flows from investing activities: Investment income Purchase of tangible fixed assets Purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 April 2020 B Cash and cash equivalents at 31 March 2021 B	(176,206)	66,863
	249,248 (4,256) (11,440) 233,552 57,346 4,645,350	308,122 (288) (13,871) 293,963 360,826 4,284,524
	4,702,695	4,645,350

Notes to the statement of cash flows for the year to 31 March 2021.

A Reconciliation of net movement in funds to net cash used in operating activities

----- Start of picture text -----
2021 2020
£ £
Net movement in funds (as per the statement of financial activities) 3,022,623 (1,102,639)
Adjustments for:
Depreciation charge 15,335 14,971
(Gains) losses on investments (3,159,071) 1,303,656
Investment income (249,248) (308,122)
(Increase) decrease in debtors (191,159) 74,538
Increase in creditors 385,314 84,459
Net cash (used in) provided by operating activities (176,206) 66,863
----- End of picture text -----

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
	2021 £	2020 £
Cash at bank and in hand Cash held by investment managers Total cash and cash equivalents	743,519 3,959,176	1,376,587 3,268,763
	4,702,695	4,645,350

C Analysis of changes in net debt

	At 1 September 2020 £’000	Cash flows £’000	At 31 August 2021 £’000
Cash Total	4,645,350 4,645,350	57,346 57,346	4,702,695 4,702,695

The Borrow Foundation 30

Principal accounting policies 31 March 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 March 2021.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Basis of consolidation

These financial statements consolidate the results of the charitable company and its wholly owned subsidiary undertaking, Borrow Investments Limited, drawn up to 31 March each year. A separate Statement of Financial Activities for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees and management to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

estimating the liability for multi-year grant commitments;

• estimating the useful economic life of tangible fixed assets;

• estimating the value of any bad debt provisions; and

the valuation of the investment property.

The Borrow Foundation 31

Principal accounting policies 31 March 2021

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have made this assessment whilst considering the impact of the continuing covid-19 pandemic on the day-to-day activities of the charity.

The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 March 2023, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets.

Company status

The charitable company is a company limited by guarantee and does not have a share capital. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £10 per member of the charitable company.

Fund accounting

Unrestricted funds are defined as income received or generated which are available for use at the discretion of the trustees in furtherance of the general objectives of the charitable company which have not been designated for other purposes.

Designated funds are unrestricted funds which have been earmarked by the Board for specific purposes.

Income

All income is included in the statement of financial activities when the group is legally entitled to the income, when it is probable that the income will be received and when the monetary value of the incoming resources can be measured with sufficient reliability.

Leasing income

Rents receivable under operating leases are credited to the statement of financial activities on a straight line basis over the lease term.

Income arising on rent reviews is recorded as income in the period in which it is earned.

Leasing income is deferred when rents are received in advance for rental periods in subsequent financial periods. This income is released to the statement of financial activities in the period in which the group is entitled to it.

The Borrow Foundation 32

Principal accounting policies 31 March 2021

Income (continued)

Investment income

Interest received from cash at bank and from fixed asset investments is included in the statement of financial activities for the period in which the charitable company is entitled to receipt.

Dividend and distribution income from fixed asset investments is included in the statement of financial activities on a receivable basis.

Expenditure

Expenditure is accounted for on an accruals basis and includes irrecoverable VAT. The majority of costs are directly attributable to the specific activities of the charitable company. The residual support costs have been allocated between charitable activities and governance costs on the basis of time spent by staff.

Expenditure on raising funds

Expenditure on raising funds comprise the costs associated with the commercial trading operation and with generating investment income and include investment advisors' and investment managers' costs.

Charitable activities

Charitable activities includes resources expended associated with the furtherance of the charitable company's objectives and any support costs associated with those activities.

Grants payable

Grants payable are payments to third parties for community schemes or research, in furtherance of the charitable company's objectives. They are accounted for when paid unless a firm commitment to pay the grant exists at a date prior to the year end. Grants committed subject to conditions to be fulfilled by the charity have been disclosed in note 17. These have not been included in the financial statements.

Support costs

Support costs are those incurred in connection with the administration and operation of the charitable company.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charitable company and include audit fees and other costs linked to the strategic management of the charitable company.

The Borrow Foundation 33

Principal accounting policies 31 March 2021

Fixed assets

Depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

Freehold buildings	-	2% to 8% straight line
Building improvements	-	8% straight line/over the remaining lease
		term
Plant, equipment, fixtures and fittings	-	10% to 33% straight line

The carrying values of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

Land is not depreciated and is held at cost, being purchase price, in the balance sheet.

Assets with a net cost of £500 or more are capitalised.

Investments

Listed investments are stated at market value at the balance sheet date. Any unrealised and realised gain or loss on revaluation is shown in the statement of financial activities. Other investments are stated at the lower of cost and net realisable value.

Investment properties are valued at current open market value and are revalued annually, where such revaluation is material. The revaluation surplus or deficit is transferred to the revaluation reserve unless a deficit on investment property is expected to be permanent, in which case it is charged to the statement of financial activities.

Investment cash is stated at the amount of cash held in investment accounts. Interest is accrued in the statement of financial activities when receivable.

In accordance with FRS 102, no depreciation is provided in respect to investment properties. This is a departure from the requirements of the Companies Act 2006 which requires all properties to be depreciated. The properties are not held for consumption but for investment and the trustees consider that to depreciate them would not give a true and fair view because it would not be compliant with applicable accounting standards.

The investment in the subsidiary undertaking is included at its net asset value when it was transferred to the charitable company upon the incorporation of the earlier charitable trust.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

The Borrow Foundation 34

Principal accounting policies 31 March 2021

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Leasing commitments

Rentals payable under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

Pensions

The group contributes to the defined contribution personal pension schemes of certain employees. Contributions are charged to the statement of financial activities as they become payable in accordance with the contribution rates agreed with those employees.

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the statement of financial activities.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in a future obligation to pay more tax, or a right to pay less tax, have occurred at the balance sheet date. Timing differences are differences between the group's profits as stated in the financial statements and its taxable profits, that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

The Borrow Foundation 35

Principal accounting policies 31 March 2021

Deferred tax (continued)

Deferred tax is measured at the average tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse. Deferred tax is measured on a nondiscounted basis.

Net deferred tax assets are regarded as recoverable, and therefore recognised, only to the extent that, on the basis of all available evidence, it is regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing difference can be deducted.

The Borrow Foundation 36

Notes to the financial statements Year to 31 March 2021

1 Income from commercial trading operations

Income from commercial trading operations represents amounts receivable from property rental in the UK and a limited amount of farming activity, stated net of value added tax, undertaken by the charitable company's trading subsidiary.

	2021 £	2020 £
Rental income generated from UK operating leases Rental income (Foundation) Other income	1,402,565 23,940 95,723 1,522,228	1,120,335 23,940 95,994 1,240,269

2 Income from investments

Income from investments
	2021 £	2020 £
Income from fixed asset investments Bank interest received	249,248 32,524 281,772	308,122 50,094 358,216

3 Expenditure on raising funds: professional fees

Expenditure on raising funds: professional fees
	2021 £	2020 £
Investment advisors and investment managers Surveyors and other property related advice	39,419 7,217 46,636	41,528 1,770 43,298

4 Expenditure on charitable activities

Expenditure on charitable activities
	2021 £	2020 £
Grants (note 5) Expenses relating to research and grant making activity Conference activities Information and education Subscriptions and media costs Support costs . Staff costs . Office costs . Depreciation . Travel expenses . Legal and professional fees . Bank charges/foreign currency gains and losses . Governance costs (note 6)	448,441 — — 9,690 7,486 245,786 59,712 9,608 — 12,261 845 12,360	351,842 92,847 22,505 10,317 7,280 194,373 49,017 9,045 7,405 17,649 783 17,665
	806,189	780,728

The Borrow Foundation 37

Notes to the financial statements Year to 31 March 2021

5 Grants payable

----- Start of picture text -----
2021 2020
£ £
Community schemes
Australia — 2,191
Bhutan — 12,209
Cambodia — 789
Chile 20,634 45,110
—
Asian Chief Dental Officers Meeting (ACDOM) 16,307
Lithuania — 2,164
Romania — 15,070
Russia — (2,500)
Serbia — 7,488
Tanzania — 21,881
Thailand 21,704 25,586
42,338 146,295
Clinical/laboratory/research grants
ACTA Netherlands 24,581 —
British Fluoridation Society 10,000 10,000
British Association for the Study of Community Dentistry (BASCD) 300 200
Global Child Dental Fund 4,000 6,000
GP – UK programme — 100
IADR Memorial Award 3,013 3,084
Leeds Institute, UK 12,850 15,350
—
Maldent, Uni Malawi 7,673
—
Nat Dental Centre, Singapore 13,627
Tashkent Uzbekistan 20,989 —
Teesside University, UK 25,420 21,802
University College London 45,805 42,000
—
UNIBE, Dominican Republic 6,859
University of Adelaide, Australia 19,462 27,170
—
University of Glasgow 148,639
University of Jordan 219 5,225
—
Uni Montpelier France 46,118
University of Newcastle, UK — 992
382,696 138,782
World Health Organisation – collaboration 14,166 53,582
Grants towards training, travel, conference attendance and sponsorship
of Dental Association 9,241 13,183
Total grants payable (notes 4 and 17) 448,441 351,842
----- End of picture text -----

The Borrow Foundation 38

Notes to the financial statements Year to 31 March 2021

6 Governance costs

Governance costs
	2021 £	2020 £
Management meetings Accountancy and audit	— 12,360	6,985 10,680
	12,360	17,665

7 Net income (expenditure) for the year

a. Net income (expenditure) for the year is stated after charging:

	2021 £	2020 £
Depreciation of owned fixed assets Auditor’s remuneration (note 7b) Operating lease rentals – land and buildings	15,335 23,850 57,500	14,971 22,200 57,500

b. Analysis of auditor’s remuneration

b. Analysis of auditor’s remuneration
	2021 £	2020 £
Audit fees (audit of the Foundation and subsidiary) . Current year Other services (taxation)	20,900 2,950 23,850	19,300 2,900 22,200

c. Employees

The average number of employees was:

----- Start of picture text -----
2021 2020
No. No.
The Borrow Foundation 7 7
Borrow Investments Limited 5 5
12 12
2021 2020
£ £
Staff costs for the above persons:
. Wages and salaries 375,235 384,510
. Social security costs 37,242 38,778
. Other pension costs 20,749 18,994
433,226 442,282
----- End of picture text -----

No employee of either the charitable company or its subsidiary undertaking earned at a rate of £60,000 per annum or more in the current or the prior year. One of the trustees has been remunerated by both the charitable company and its subsidiary undertaking and the remuneration in aggregate is in excess of £60,000 (note 7(d)).

The Borrow Foundation 39

Notes to the financial statements Year to 31 March 2021

7 Net income for the year (continued)

d. Trustees' remuneration and expenses

N F Borrow, a trustee of the charitable company and a director of the subsidiary undertaking received remuneration from the group (as permitted by the charitable company's Memorandum and Articles of Association) as follows:

	Borrow Foundation 2021 £	Borrow Investments 2021 £	Total 2021 £	Borrow Foundation 2020 £	Borrow Investments 2020 £	Total 2020 £
Remuneration Company contributions to a money purchase pension scheme	37,339 3,360 40,699	74,677 6,721 81,398	112,016 10,081 122,098	36,529 3,288 39,817	73,057 6,575 79,632	109,586 9,863 119,449

The trustees are considered to be the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. The total remuneration paid to key management personnel (including pension contributions and employer’s national insurance contributions) was £135,131 (2020 - £132,189).

Other than as stated above, none of the other trustees received any remuneration during the current or preceding year. The number of trustees to whom retirement benefits are accruing under money purchase pension schemes amounted to 1 (2020 - 1).

Trustee expenses amounted to £nil (2020 - £18,647). The 2020 expenses related mainly to travel and subsistence and were reimbursed to or incurred by 4 trustees.

8 Taxation

a. Current tax

The charitable company is exempt from the liability to taxation by virtue of Sections 466 to 493, Corporation Tax Act 2010.

The subsidiary undertaking pays Gift Aid equivalent to all its taxable profits to The Borrow Foundation, its parent undertaking.

b. Deferred tax provided

Deferred tax has been recognised on the value of the investment property held by the subsidiary undertaking. Further details are provided in note 14.

9 Net income attributable to members of the parent undertaking

The net income for the year dealt with in the financial statements of the parent undertaking was £2,094,748 (2020 – net expenditure of £1,058,015).

The Borrow Foundation 40

Notes to the financial statements Year to 31 March 2021

10 Tangible fixed assets

Group

Group
	Freehold land and buildings £	Building improve- ments £	Plant, equipment, fixtures and fittings £	Total £
Cost At 1 April 2020 Additions At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book values At 31 March 2021 At 31 March 2020	1,082,009 — 1,082,009 293,949 5,093 299,042 782,967 788,060	64,404 640 65,044 60,080 1,594 61,674 3,370 4,324	100,615 3,616 104,231 89,976 8,648 98,624 5,607 10,639	1,247,028 4,256 1,251,284 444,005 15,335 459,340 791,944 803,023

The trustees believe that the market value of the freehold land and buildings is substantially in excess of the carrying value but no formal valuation has been commissioned and any value attributed cannot be assessed with sufficient precision, particularly in current market conditions.

On 15 September 2017 Borrow Investments Limited entered into an option agreement to sell farmland, which is held at a net book value of approximately £300,000, for a minimum price of £20m, with the proceeds of any sale being payable in four tranches; on completion and then in three subsequent tranches. The purchaser has the right to exercise the option until the expiry date of 14 September 2022, which is likely to be dependent on obtaining planning permission for the site.

• Included within freehold land and buildings is land valued at £647,967 (2020 £647,967) which is not being depreciated.

The Borrow Foundation 41

Notes to the financial statements Year to 31 March 2021

10 Tangible fixed assets (continued)

Charity

Charity
	Freehold land and buildings £	Building improve- ments £	Plant, equipment, fixtures and fittings £	Total £
Cost At 1 April 2020 Additions At 31 March 2021 Depreciation At 1 April 2020 Charge for the year At 31 March 2021 Net book values At 31 March 2021 At 31 March 2020	674,356 — 674,356 184,691 4,637 189,328 485,028 489,665	64,407 640 65,047 60,081 1,594 61,675 3,372 4,326	57,662 2,549 60,211 53,625 3,376 57,001 3,210 4,037	796,425 3,189 799,614 298,397 9,607 308,004 491,610 498,028

The trustees believe that the market value of the freehold land and buildings is substantially in excess of the carrying value but no formal valuation has been commissioned and any value attributed cannot be assessed with sufficient precision, particularly in current market conditions.

• Included within freehold land and buildings is land valued at £350,000 (2020 £350,000) which is not being depreciated.

The freehold land and buildings were held for leasing under operating leases during the year.

The Borrow Foundation 42

Notes to the financial statements Year to 31 March 2021

11 Investments

Group

	Listed invest- ments £	Investment property £	Cash £	Total £
At 1 April 2020 Additions Unrealised gains on revaluation (note 15) At 31 March 2021 Investment assets held in the UK Investment assets held overseas	8,244,437 11,442 1,959,071 10,214,950 9,966,303 248,647 10,214,950	13,775,000 — 1,200,000 14,975,000 14,975,000 — 14,975,000	3,268,763 690,413 — 3,959,176 3,959,176 — 3,959,176	25,288,200 701,855 3,159,071 29,149,126 28,900,479 248,647 29,149,126

All investments are held primarily to provide an investment return for the group.

Listed investments:

The historical cost of listed investments to the group was £6,181,197 (2020 - £6,196,147).

At 31 March, 2021, the following individual investment holdings were considered material in the context of the total listed investment portfolio:

	Market value £	% of total listed investment
Schroder Managed Balanced Institutional Blackrock Charishare (Inc) Charities only	2,040,600 603,643	20% 5%

Investment property

The investment property was valued independently on 27 August 2021, as at the valuation date of 31 March 2021, at £14,975,000 being the open market value for existing use, in accordance with the RICS Appraisal and Valuation Standards (6th Edition), by C Walker FRICS of Vail Williams LLP (Chartered Surveyors and Property Advisors). In the directors’ opinion after consultation with their chartered surveyor, the open market value of the property for existing use as at 31 March 2021 is £14,975,000. The historical cost of this property was £1,900,000. The investment property is held for leasing under operating leases.

The Borrow Foundation 43

Notes to the financial statements Year to 31 March 2021

11 Investments (continued)

Charity

Charity
	Listed investments £	Cash £	Shares in subsidiary undertaking £	Total £
At 1 April 2020 Additions Unrealised gains on revaluation (note 15) At 31 March 2021 Investment assets held in the UK Investment assets held overseas	8,244,437 11,442 1,959,071 10,214,950 9,966,303 248,647 10,214,950	3,268,763 690,413 — 3,959,176 3,959,176 — 3,959,176	1,474,536 — — 1,474,536 1,474,536 — 1,474,536	12,987,736 701,855 1,959,071 15,648,662 15,400,015 248,647 15,648,662

Listed investments

The historical cost of the listed investments to the charitable company was £6,181,197 (2020 - £6,196,147).

At 31 March 2021, the following individual investment holdings were considered material in the context of the total listed investment portfolio:

	Market value £	% of total listed investment
Schroder Managed Balanced Institutional Blackrock Charishare (Inc) Charities only	2,040,600 603,643	20% 5%

The Borrow Foundation 44

Notes to the financial statements Year to 31 March 2021

11 Investments (continued)

Shares in subsidiary undertaking

The charitable company owns the entire issued ordinary share capital of Borrow Investments Limited, a company registered in England and Wales (Company Registration No. 671291). The subsidiary undertaking carries out trading activities, namely property rental and limited farming activity. The total taxable profit of the subsidiary undertaking is gifted to the parent undertaking each year. Audited financial statements of Borrow Investments Limited will be filed with Companies House.

A summary of the results of the subsidiary undertaking to 31 March 2021 is shown below:

----- Start of picture text -----
2021 2020
£ £
Turnover 1,498,288 1,216,330
Cost of sales (500,562) (360,686)
Gross profit 997,726 855,644
Administrative expenses (184,277) (252,706)
Operating profit 813,449 602,938
Interest receivable 4,065 12,523
Interest payable and similar charges (39,900) (51,711)
Profit on ordinary activities before Gift Aid 777,614 563,750
Gift Aid (note 20) (608,369) (643,475)
Surplus (deficit) on ordinary activities before revaluation of investment
property 169,245 (79,725)
—
Unrealised gain on revaluation of investment 1,200,000
—
Deferred tax on revaluation of investment property (441,370)
Profit (loss) for the financial year 927,875 (79,725)
Accumulated surplus at 1 April 11,233,616 11,313,341
Total comprehensive income (expenditure) 927,875 (79,725)
Accumulated surplus at 31 March 12,161,491 11,233,616
----- End of picture text -----

The Borrow Foundation 45

Notes to the financial statements Year to 31 March 2021

11 Investments (continued)

----- Start of picture text -----
2021 2020
£ £
The aggregate of the assets and liabilities was:
. Assets 16,969,438 15,607,685
. Liabilities (4,807,947) (4,374,069)
12,161,491 11,233,616
Represented by:
. 30,002 ordinary shares at £1 each 30,002 30,002
. Investment revaluation reserve 10,819,985 10,061,355
. Profit and loss account 1,311,504 1,142,259
12,161,491 11,233,616
----- End of picture text -----

12 Debtors

----- Start of picture text -----
Group Charity
2021 2020 2021 2020
£ £ £ £
Trade debtors 106,590 76,418 — (646)
— —
Loan to subsidiary undertaking (note 20) 1,900,000 1,900,000
Prepayments and accrued income 293,269 132,282 69,613 74,083
399,859 208,700 1,969,613 1,973,437
----- End of picture text -----

The loan to the subsidiary undertaking is secured via a charge over their investment property, bears interest at 2% above Barclays Bank plc base rate and is due more than twelve months from the balance sheet date.

13 Creditors: amounts falling due within one year

----- Start of picture text -----
Group Charity
2021 2020 2021 2020
£ £ £ £
Trade creditors 17,776 20,481 8,069 6,528
Amounts owed to subsidiary undertaking
— —
(note 20) 83,889 197,572
Taxation and social security 11,131 11,230 7,083 6,432
Accruals and deferred income 350,163 405,030 81,524 132,278
Other creditors 128,262 126,646 — —
507,332 563,387 180,565 342,810
----- End of picture text -----

• Included within Group accruals and deferred income is £250,061 (2020 £235,654) of deferred income. This income relates to leasing income paid in advance, which the group will recognise in the Statement of Financial Activities in the next accounting period.

The Borrow Foundation 46

Notes to the financial statements Year to 31 March 2021

13 Creditors: amounts falling due within one year (continued)

The movement on deferred income account is set out below:

	2021 £	2020 £
At 1 April 2020 Released from prior year Deferred in current year At 31 March 2021	235,654 (235,654) 250,061 250,061	243,999 (243,999) 235,654 235,654

14 Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
Group	2021 £	2020 £
Rent deposits Deferred tax liability Charity	246,265 2,255,015 2,501,280 2021 £	246,265 1,813,645 2,059,910 2020 £
Rent deposits	3,990	3,990

The deferred tax liability has arisen from revaluing the investment property held by the charity’s subsidiary. The movement on the deferred tax liability is as follows:

	2021 £	2020 £
At 1 April Movement in the year At 31 March	1,813,645 441,370 2,255,015	1,813,645 — 1,813,645

15 Statement of movements on reserves

Group

Revaluation reserves

----- Start of picture text -----
Unrestricted Investment
funds property Other Total
£ £ £ £
At 1 April 2020 12,941,210 10,061,355 2,050,648 25,053,213
— —
Surplus for the year 304,922 304,922
— —
Unrealised gains (note 11) 1,959,071 1,959,071
— —
Revaluation of investment property 1,200,000 1,200,000
Deferred tax — (441,370) — (441,370)
At 31 March 2021 13,246,132 10,819,985 4,009,719 28,075,836
----- End of picture text -----

The Borrow Foundation 47

Notes to the financial statements Year to 31 March 2021

15 Statement of movements on reserves (continued)

----- Start of picture text -----
Revaluation reserves
Unrestricted Investment
funds property Other Total
£ £ £ £
At 1 April 2019 12,742,551 10,061,355 3,351,946 26,155,852
— —
Surplus for the year 198,659 198,659
— —
Unrealised gains (note 11) (1,301,298) (1,301,298)
At 31 March 2020 12,941,210 10,061,355 2,050,648 25,053,213
----- End of picture text -----

Charity

----- Start of picture text -----
Unrestricted Revaluation
funds reserve Total
£ £ £
At 1 April 2020 13,851,854 2,050,648 15,902,502
—
Surplus or the year (excluding realised losses) 135,677 135,677
—
Unrealised losses (note 11) 1,959,071 1,959,071
At 31 March 2021 13,987,531 4,009,719 17,997,250
Unrestricted Revaluation
funds reserve Total
£ £ £
At 1 April 2019 13,608,571 3,351,946 16,960,517
—
Surplus for the year (excluding realised gains) 243,283 243,283
—
Unrealised gains (note 11) (1,301,298) (1,301,298)
At 31 March 2020 13,851,854 2,050,648 15,902,502
----- End of picture text -----

16 Analysis of net assets between funds

Net assets of the group relate solely to unrestricted activities in the current and preceding year.

The Borrow Foundation 48

Notes to the financial statements Year to 31 March 2021

17 Future commitments – grants payable

The charitable company is committed to making certain grant expenditure, upon agreed conditions being fulfilled by the recipient which have not been provided in the financial statements. The movement in the commitment was as follows:

	2021 £
Grant commitments at 1 April 2020 Charged to the statement of financial activities in the year (note 5) New commitments arising Grant commitments at 31 March 2021 Payable within one year Payable after more than one year	529,228 (448,441) 535,169 615,956 390,980 224,976
	615,956

----- Start of picture text -----
Year Year Year
ended 31 ended 31 ended 31
March March March
2022 2023 2024 Total
£ £ £ £
Population-based projects & Clinical,
laboratory and population research
ARCPOH, Univ. of Adelaide, Australia 566 — — 566
— —
University of Chile, Chile 40,510 40,510
— —
Univ. Iberoamericano, Dominican Republic 6,327 6,327
—
University of Montpelier, France 9,792 1,490 11,282
University of Malawi, Malawi 14,106 23,510 9,404 47,020
Academic Centre for Dentistry, Netherlands 19,584 39,169 39,169 97,922
Nat. Dental Research Institute, Singapore 27,216 21,811 6,032 55,059
— —
Malmo University, Sweden 10,266 10,266
— —
Ministry of Health, Thailand 10,005 10,005
—
Tashkent State Dental Inst., Uzbekistan 15,828 1,374 17,202
—
University of Leeds, UK (project in Sudan) 12,850 1,500 14,350
—
Teesside University, UK 25,883 53,267 79,150
—
University of Glasgow, UK 24,750 26,750 51,500
—
University College London, UK 52,000 1,500 53,500
269,683 170,371 54,605 494,659
Dental Associations / Meetings
The British Association for the Study of
— —
Community Dentistry 1,750 1,750
WHO Collaboration
— —
WHO HQ, Geneva, Switzerland 119,547 119,547
Total 390,980 170,371 54,605 615,956
----- End of picture text -----

The Borrow Foundation 49

Notes to the financial statements Year to 31 March 2021

17 Future commitments – grants payable (continued)

----- Start of picture text -----
Year Year Year
ended 31 ended 31 ended 31
March March March
2021 2022 2023 Total
£ £ £ £
Population-based projects & Clinical,
laboratory and population research
Australian Research Centre for Population
Oral Health, Australia 16,535 508 — 17,043
—
University of Chile, Chile 45,150 22,575 67,725
Universidad Iberoamericano, Dominican
—
Republic 5,641 1,410 7,051
University of Jordan, Jordan 900 — — 900
University of Malawi, Malawi 20,156 20,156 20,156 60,468
— —
Belau National Hospital, Palau 8,063 8,063
— —
Ministry of Health, Palestine 4,838 4,838
— —
Malmo University, Sweden 10,663 10,663
— —
Ministry of Health, Thailand 10,622 10,622
Hanoi National Hospital of Odonto-
— —
Stomatology, Vietnam 1,134 1,134
— —
Global Child Dental Fund, London UK 4,000 4,000
Leeds University, UK 12,850 12,850 1,500 27,200
—
Teesside University, UK 66,156 11,494 77,650
— —
University College London, UK 42,000 42,000
206,708 110,993 21,656 339,357
Dental Associations / Meetings
International Association for Dental
Research 3,144 3,144 3,144 9,432
European Association of Dental Public
Health 11,056 — — 11,056
— —
British Fluoridation Society 10,000 10,000
The British Association for the Study of
— —
Community Dentistry 1,950 1,950
26,150 3,144 3,144 32,438
WHO Collaboration
—
WHO HQ, Geneva, Switzerland 89,513 43,732 133,245
WHO HQ, Geneva, Switzerland - Core
— —
Support 24,188 24,188
Total 346,559 157,869 24,800 529,228
----- End of picture text -----

The Borrow Foundation 50

Notes to the financial statements Year to 31 March 2021

18 Commitments under operating leases

At 31 March the group had total minimum lease commitments under non-cancellable operating leases as set out below:

----- Start of picture text -----
Land and buildings
2021 2020
£ £
Operating leases payments:
. within one year 57,500 57,500
. within two to five years 287,500 287,500
. after more than 5 years 2,736,042 2,793,542
3,081,042 3,138,542
----- End of picture text -----

19 Pensions

The group contributes to the defined contribution personal pension schemes of certain employees. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the contribution rates agreed with those employees. The charge for the year was £20,749 (2020 - £18,994). There were contributions of £3,405 (2020 - £9,863) outstanding at the year end.

20 Related party transactions

a. Transactions with subsidiary undertaking

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

Gift Aid paid to the Foundation (note 11) Interest payable to the Foundation Management fees charged by the Foundation Loan due from Borrow Investments Limited at the balance sheet date (note 12) Due to Borrow Investments Limited at the balance sheet date (note 13)	608,369 39,900 38,586 1,900,000 (83,889)	643,475 51,711 37,596 1,900,000 (197,572)

b. Transactions with trustees

For details of trustees’ remuneration and expenses, see note 7(d).

There were no further related party transactions in the year (2020: none).

21 Controlling party

Control of the charitable company lies with the Board, who are the members of the charitable company; there is no overall controlling party.

The Borrow Foundation 51

DRAFT

Charitable company statement of financial activities Year to 31 March 2021 Not for publication

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2021 2021 2020 2020
£ £ £ £
Income from:
Rental income 23,940 23,940
Income from Borrow Investments Limited
including Gift Aid 686,854 697,676
Investment income 277,707 345,693
Total income 988,501 1,067,309
Expenditure on:
Raising funds
. Costs re investment advisors and
investment managers 39,419 41,528
. Surveyors and other property related
advice 7,217 1,770
(46,636) (43,298)
Charitable activities
. Grants 448,441 351,842
. Expenses relating to research and grant
—
making activity 92,847
. Conference activities — 22,505
. Information and education 9,690 10,317
. Subscriptions and media costs 7,486 7,280
. Support costs:
.. Staff costs 245,786 194,375
.. Office costs 59,712 49,017
.. Depreciation 9,608 9,045
.. Legal and professional fees 12,261 17,649
—
.. Travel expenses 7,403
.. Bank charges/foreign currency gains and
losses 845 783
—
. Management meetings 6,985
. Accountancy and audit 12,360 10,680
(806,189) (780,728)
Total expenditure (852,825) (824,026)
Net income for the year before
investment gains 135,677 243,283
Net investment gains (losses) 1,959,071 (1,301,298)
Net income (expenditure) 2,094,748 (1,058,015)
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The Borrow Foundation 52