## **The Borrow Foundation Report and Group Financial Statements**
## 31 March 2022
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|
|**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**|RWK Goodman|
||69 Carter Lane|
||London|
||EC4V 5EQ|
The Borrow Foundation **1**
**Trustees’ report** 31 March 2022
The trustees present their report and the audited group financial statements for the year ended 31 March 2022. 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) Professor Christina Stecksén-Blicks Dr N M Thomas N F Borrow
The Borrow Foundation **2**
**Trustees’ report** 31 March 2022
## **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.
The Borrow Foundation **3**
**Trustees’ report** 31 March 2022
## **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 £781,327 (2021 – £608,369), 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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**Trustees’ report** 31 March 2022
## **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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**Trustees’ report** 31 March 2022
## **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 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 dependence on technology grows, the risk and potential impact of security breaches increases.
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**Trustees’ report** 31 March 2022
## **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. A staff training and awareness programme delivered by the consultants has been complemented by online training resources, provided by the _National Cyber Security Centre._
## **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, all reasonable measures have been applied to ensure the safety and wellbeing of those associated with the charity. The necessary steps were also taken to minimise the financial and operational impact of the pandemic on the Foundation’s work.
The facilities for homeworking were extended 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 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 ensured that the impact was minimised and the charity’s resources protected. Where necessary, additional time has been allowed to enable projects to be delivered safely and effectively.
## **Cost of living crisis**
The trustees are naturally concerned over the cost-of-living crisis and the implications this has for the charity’s finances. The potential impact of high inflation, rising interest rates and the dramatic increase in energy costs is a particular concern and is being carefully monitored. Additional measures have been applied, to complement routine checks and controls on budgets and cashflow forecasts. In parallel to this, we continue to look for opportunities to make savings and improve cost efficiency.
## **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 and the uncertainties surrounding the war in Ukraine and the global economy, the work supported by the charity continues to evolve and the trustees remain committed to further expansion.
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**Trustees’ report** 31 March 2022
## **Achievements and performance** (continued)
## _**Collaboration with the World Health Organization (WHO)**_
The Foundation has been pleased to support vital work undertaken by WHO and this has proved to be most important in the furtherance of the charity’s objects.
A grant has been made towards three key areas of work planned under the WHO’s oral health programme. This included the development of a Global Oral Health Report which has been described as a major milestone in a move to mobilise political action and resources for 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 74[th] World Health Assembly held in May 2021. The resolution urges member states to address key risk factors of oral diseases that are shared with other non-communicable 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.
Under the resolution, the WHO Director General was requested to develop a global strategy for tackling oral diseases. Our support has been applied to this essential work. The strategy was adopted at the 75[th] World Health Assembly, held in May 2022. It sets four overarching goals to guide Member States, to:
- Develop ambitious national responses to promote oral health
- Reduce oral diseases, other oral conditions and oral health inequalities
- Strengthen efforts to address oral diseases and conditions as part of universal health coverage
- Consider the development of targets and indicators, based on national and subnational contexts, building on WHO guidance, to prioritise efforts and assess the progress made by 2030.
The strategy includes six strategic objectives, on oral health governance, oral health promotion and disease prevention, health workforce, oral health care, oral health information systems, and oral health research.
In accordance with the resolution, the strategy is being translated into an action plan for public oral health that will be aligned with the Global Action Plan for the Prevention and Control of Noncommunicable Diseases 2013 – 2030. The action plan will involve extensive consultation and seek to deliver a set of evidence-informed actions that can be adapted to national and sub-national contexts.
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**Trustees’ report** 31 March 2022
## **Achievements and performance** (continued)
## _**Collaboration with the World Health Organization (WHO)** (continued)_
Our support for the WHO oral health programme has been extended until the end of 2023. Under this agreement, the dissemination of the report and the advancement and release of the action plan will be priorities. A particularly important area of this work will be the development of a monitoring framework for the action plan, with measurable targets to be achieved by 2030. This will require a set of robust indicators, covering key areas such as oral health status, risk factors for oral diseases, the response of national health authorities, and the integration of oral health into universal health coverage and general healthcare. A group of international experts has been appointed by WHO to support this work.
A multidisciplinary technical advisory group will be established to provide guidance on the prevention and control of oral diseases, the aim being to help strengthen the commitment towards, and accelerate the implementation of, the global oral health strategy and action plan.
Our funding will also be applied to two other important projects. These focus on ‘life-course approach, population-based strategies and cost-effective interventions on oral health’ and ‘oral health information systems and integrated surveillance’.
## _**The Lancet Commission**_
The charity has been pleased to continue to provide support to 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. This generated considerable interest worldwide and led to the decision to establish the commission, which was launched in London in March 2020. At the outset, 27 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. The work will be completed mid-2023.
## _**Oral Health Birth Cohort Studies Consortium**_
We are also proud to have helped establish a global consortium on oral health birth cohort studies (GLOBICS) through a grant awarded to the National Dental Research Institute, Singapore.
The importance of birth cohort studies is widely recognised amongst the scientific community. GLOBICS has for the first time brought together, from five continents, researchers engaged in oral health related studies, with the aim of creating a sustainable collaborative network to strengthen and develop this important area of research. The threeyear project commenced in March 2021.
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**Trustees’ report** 31 March 2022
## **Achievements and performance** (continued)
## _**Digital oral health survey**_
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 were therefore pleased to support a project that is seeking 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 the WHO.
A two-step approach is being used to gather quantitative and qualitative data. In the 1[st] phase an e-questionnaire was distributed to chief dental officers across the world to identify where digital oral health programmes had been implemented, the barriers and facilitators to introducing such programmes, the infrastructures in place to support implementation, the readiness at all levels to do so, the target populations, and the support that might be required. There were 101 responses from 86 countries. The findings will be disseminated widely and reported in a peer-reviewed publication.
## _**Scoping review of upstream interventions**_
Recent reviews have indicated 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. A grant has therefore been provided to the University College of London, **UK** , to undertake a scoping review of global literature, to assess the effectiveness of upstream policy interventions. This review will complement the work being undertaken by the Lancet Commission which includes a policy and oral health inequalities workstream. It will also inform the work being carried out by WHO on the Global Oral Health Action Plan.
## _**Population-based oral health**_
During the financial year, our funding was applied to a number of other population-based projects / research:
## _New projects_
New awards were made to:
- The University of Bern, Switzerland, for a study that seeks to assess and understand how the beliefs of immigrant parents can shape the oral health of their children. The outcomes will provide vital information for the development of policies and strategies aimed at reducing inequalities in oral health in immigrant children.
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**Trustees’ report** 31 March 2022
## **Achievements and performance** (continued)
## _**Population-based oral health** (continued)_
- Newcastle University, UK, to construct a cost-benefit framework for community water fluoridation in England, using local area data. As the political environment changes, it is important that public valuations of community water fluoridation are understood, and that comprehensive economic evaluations are available to inform decisions on new schemes.
- The University of Puthisastra, Cambodia, to develop a national oral heath strategy. The work is being carried out under the auspices of the Ministry of Health and will reflect the six principles of the WHO global oral health strategy. An important aspect of the project will be to build a multisectoral oral health advocacy network that could play an important role in the formulation and implementation of the strategy.
- The University of Copenhagen, Denmark, to undertake work with the ministries of health in Tanzania and Burkina Faso, to assess primary schoolteachers’ knowledge, attitudes and practices relating to the prevention of oral manifestations of HIV / AIDS and the teachers’ capacity for educating on this important public health issue.
## _Ongoing projects_
We continued to provide support to:
- The University of Glasgow, UK for three important studies linked to Childsmile, a national programme funded by the Scottish government, designed to improve the oral health of children in Scotland and reduce inequalities both in dental health and access to dental services.
The first is a data linkage cohort study, which aims is to explore early life child-, familyand 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 / 5, and 2010 / 11: around 11,000 subjects in total.
The second study has two aims. The first is to establish a clear consensus, from a panel of 20 international independent experts, on fluoride-based interventions which reduce early childhood caries in pre-school and other early years settings. The second is to benchmark programmes implemented in south-east Europe against the WHO guidance on the prevention and management of ECC.
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 children who have been ‘in care’, having particular regard for their oral health and school attendance levels.
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## **Trustees’ report** 31 March 2022
## **Achievements and performance** (continued)
## _**Population-based oral health** (continued)_
- The University of Adelaide, Australia, for a scoping review to investigate factors influencing socioeconomic inequalities in child dental health at multiple levels. The review has involved 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, with the engagement of multiple sectors and players.
- Teesside University, UK, for a scoping review of the literature / evidence on the use of spot urine samples and nail clippings as biomarkers for monitoring fluoride exposure in community-based programmes. Given the practical challenges faced in collecting urinary fluoride samples over a 24-hour period, simpler alternatives could potentially be extremely important across the globe.
Support has also been provided to Teesside University for a study that aims to assess whether spot urine samples are reliable for monitoring fluoride exposure in children ingesting fluoride through toothpaste, community water, milk, and salt, in different geographical locations. Twenty-four-hour urinary fluoride excretion samples will be used as the ‘gold standard’ in this crossover study. The work is being conducted in collaboration with the University of Bogotá, Colombia, the University of Talca, Chile, and the University of São Paulo, Brazil.
- Academic Centre for Dentistry Amsterdam, Netherlands, where support has been provided for a project that aims to improve the oral health of children aged 0 – 4½ years from low socio-economic families. An insight will be gained from these families and their stakeholders on the challenges faced in improving the oral health of their children. The findings will be used to develop a participatory action research approach towards implementing and evaluating appropriate interventions to improve oral health.
- The Kamuzu University of Health Sciences, Malawi, towards the development of a child oral health improvement strategy to form part of a wider initiative, ‘The MalDent Project’, which aims to make important changes towards improving oral healthcare in the country. The survey involves close collaboration between the University, the Malawi Ministry of Health and the University of Glasgow, and is being delivered in three phases: a national child oral health survey, a situation analysis to identify potential models for the prevention of oral disease in children, and workshops for national stakeholders to consider how these findings might be translated into strategy.
- Tashkent State Dental Institute, Uzbekistan, to implement a national child oral health survey. Involving children aged 7 and 12 years, the survey has the full endorsement of the Ministry of Health, and the results will inform the review and development of policies / strategies to improve oral health in the country.
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## **Trustees’ report** 31 March 2022
## **Achievements and performance** (continued)
## _**Population-based oral health** (continued)_
- The Ministry of Health, Bhutan, to conduct a national oral health survey. Data were collected from all 20 districts of the country, across six age groups: 6-, 12-, 15-, 35 – 44, 55 – 64, and 65 – 74-year-olds. The results will provide a sound basis for the review and development of oral health policy.
- The University of Leeds, UK, for work being carried in Sudan, under a PhD project, which focuses on improving the diagnosis of the more common developmental defects of enamel: dental fluorosis, molar incisor hypoplasia and amelogenesis imperfecta.
- Malmö University, Sweden, to investigate whether dental caries is caused by specific disease- inducing activities in dental biofilms, and whether caries can be prevented by using milk with added fluoride to interfere with the development of aciduric phenotypes.
- The Ministry of Health, Palestine, for the implementation and evaluation of a schoolbased oral health promotion programme in the West Bank and Gaza Strip, conducted in accordance with the WHO Health Promoting Schools concept. The results are being disseminated through publication in peer-review journals and presentations at scientific meetings.
- The University of Puthisastra, Cambodia for secondary data analysis to be carried out in respect of a longitudinal oral health survey that investigated the ways in which dental caries experience is linked to stunting and malnutrition.
- The Institute of Nutrition and Food Technology, University of Chile, Chile, for essential technical support provided for the milk fluoridation scheme which is targeted at rural schools across the country. The scheme has been long established as an integral part of a national School Food Assistance Programme operated by the Junta Nacional de Auxilio Escolar y Becas, an agency of the Ministry of Education that seeks to achieve equality for all schoolchildren. Although affected by COVID-19, the schools have now reopened, and the scheme recommenced.
- **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. A retrospective evaluation study has been undertaken to reinforce the case for the programme.
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**Trustees’ report** 31 March 2022
## **Achievements and performance** (continued)
## _**Call for grant applications**_
We had an excellent response to a call for grant applications made late summer / autumn 2021 with 87 proposals having been received. Applications were invited for the support for (i) sustainable population-based programmes / projects targeted at the areas of greatest need, that could help reduce inequalities in oral health, within and between countries, (ii) projects that could influence / inform the review and development of health policy and strategies and (iii) research studies that could strengthen the evidence base for the prevention of dental diseases. Recognising the importance of the work being carried under the WHO global oral health programme, priority was given to applications that were in line with the recommendations set out in the WHO Resolution.
Eighteen proposals could potentially be funded. Four grants were made by the financial year end, to the University of Bern, Newcastle University, University of Puthisastra, and University of Copenhagen respectively (as reported above). A further eight awards have since been confirmed and six remain under consideration.
## _**Support for dental associations / organisations**_
We have continued to provide support for dental associations to undertake activities that help further the charity’s objects.
## _European Association for Dental Public Health (EADPH)_
Our sponsorship for EADPH has been applied to several valuable initiatives. One 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. Our funding has also helped extend the EADPH's travel grant scheme that enables participation at the annual conferences by those who may otherwise find it difficult to attend.
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.
## _International Association for Dental Research (IADR)_
The charity has also enjoyed a longstanding and valuable relationship with 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; the 2022 recipient was Associate Professor Karen Peres, National Dental Research Institute, Singapore.
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## **Achievements and performance** (continued)
## _**Support for dental associations / organisations** (continued)_
## _British Association for the Study of Community Dentistry (BASCD)_
During the Autumn Scientific Meeting of BASCD, held in December 2021, the BASCD – Borrow Foundation Early Career Award was presented to Rachael England from Teesside University for her poster ‘Oral health under the clouds of COVID-19’. 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.
## _British Fluoridation Society (BFS)_
A new three-year grant has been provided to BFS covering the period 2022 -2024 inclusive. Our support is helping to reinforce and extend the society’s valuable work in promoting community water fluoridation in the UK. There have been some encouraging developments. The government’s commitment to fluoridation appears to be strengthening with moves being made to streamline the process for the implementation of new schemes.
## _Asian Chief Dental Officers’ Meetings_
Our sponsorship of the Asian Chief Dental Officers’ Meetings has provided, particularly to those working in lower-income countries, wider access to these important events and closer engagement between the oral health decision makers in the region and WHO. The most recent meeting was held in Phuket, Thailand, in March 2022; it was organised jointly by the Foundation of Oral Health, a Thai NGO, and the Department of Health. The theme was the emerging WHO global strategy on oral health, and the event proved to be a very timely opportunity to discuss its potential impact on the oral health agenda in Asia.
## **Publications**
Abuhaloob L, Petersen PE. Oral health status and oral health behaviour among 5- to 6- year-old Palestinian Schoolchildren – Towards engagement of parents and schoolteachers for oral health through schools. Oral Health Prev Dent 2021;19:673-682.
Peres KG, Nascimento GG, Gupta A, Singh A, Schertel Cassiano L. Rugg-Gunn A. Scoping review of oral health-related birth cohort studies: Toward a global consortium. J. Dent. Res. 2022 (onlinefirst) https://doi.org/10.1177/00220345211062475
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.
Sava-Rosianu, R.; Campus, G.; Matichescu, A.; Balean, O.; Dumitrache, M.A.; Lucaciu, P.O.; Daguci, L.; Barlean, M.C.; Maricutoiu, L.; Postolache, M.; et al. Caries Prevalence Associated with Oral Health-Related Behaviors among Romanian Schoolchildren. Int. J. Environ. Res. Public Health 2021;18:6515. https://doi.org/10.3390/ ijerph18126515
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## **Publications** (continued)
Sah O, Maguire A, Zohoori F.V. Fractional urinary fluoride excretion and nail fluoride concentrations in normal, wasted and stunted 4–5 year-old children in Nepal. J Trace Elem Med Biol 2022;69: 126876. https://doi.org/10.1016/j.jtemb.2021.126876
Stangvaltaite-Mouhat L, Puriene A, Stankeviciene I, and Aleksejuniene J. Fluoride in the drinking water and dental caries experience by tooth surface susceptibility among adults. BMC.Oral Health 2021;(1):234.
Stankeviciene I, Puriene A, Mieliauskaite D, Stangvaltaite-Mouhat L, and Aleksejuniene J. Detection of xerostomia, Sicca, and Sjogren's syndromes in a national sample of adults. BMC.Oral Health 2021;(1):552.
Stankeviciene I, Aleksejuniene J, Puriene A, and Stangvaltaite-Mouhat L. Association between Diet and Xerostomia: Is Xerostomia a Barrier to a Healthy Eating Pattern? Nutrients. 2021;13(12):4235. doi: 10.3390/nu13124235.
Tan L, Lai SM, Geres N, Innes NPT, Radford JR, Revie G, Mossey PA, Hector M. Effectiveness of the Wikipedia collaboration of dental schools’ training programme: a new paradigm for teaching and learning of evidence-based dentistry. Community Dental Health 2021;38:1–5
## **Plans for future periods**
The Board has identified the need to appoint new trustees, to ensure that the Foundation will continue to be run effectively and efficiently and is well-placed to meet the challenges and opportunities that lie ahead. Consideration has been given to the qualities, skills, knowledge and experience that would complement the existing Board, and the recruitment process is underway.
The awards made under the call for grant applications represent a substantial commitment for the charity and we will work closely with the awardees over the implementation of this important programme of work.
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 progress made with the global oral health report, strategy and action plan is helping to revitalise and extend commitment to the improvement of oral health worldwide, and priorities identified by WHO underpin the work of the charity.
We are also proud to be supporting other important initiatives that have potential global significance. These include the Lancet Commission and the consortium on oral health birth cohort studies, as well as the work being carried on digital oral health and upstream measures. We aim to build on the success of these projects and will look to establish other ‘partnerships’ that could help extend the reach of the charity and further its objects.
A new call for research grant applications will be considered. However, the current geopolitical and economic challenges will inevitably have a bearing on the development
The Borrow Foundation **16**
**Trustees’ report** 31 March 2022
## **Plans for future periods** (continued)
plans and will be foremost in our minds in the review of the charity’s strategies and application of its resources.
## **Financial review**
## _**Results for the year**_
The statement of financial activities shows an increase in unrestricted funds during the year of £108,413 (2021 – increase of £304,922) with total income amounting to £1,532,856 (2021 – £1,804,000) and expenditure totalling £1,424,443 (2021 – £1,499,078).
Total income comprises £1,298,431 (2021 – £1,522,228) of income from commercial activities and £234,425 (2021 – £281,772) generated by the charity’s investments.
Total expenditure comprises expenditure on charitable activities of £786,674 (2021 – £806,189) and cost of raising funds of £637,769 (2021 – £692,889).
The revaluation of the listed investment portfolio resulted in an unrealised gain of £360,487 (2021 – £1,959,071 gain). The revaluation of the investment property held in the Foundation’s subsidiary resulted in an unrealised loss of £975,000 (2021 – £1,200,000 gain).
The results of the Foundation's subsidiary undertaking, Borrow Investments Limited contributed net profits to the group excluding investment gains of £511,887 (2021 – £856,099) on a turnover of £1,274,491 (2021 – £1,498,288).
## _**Investment policy**_
The trustees consider that the variability of investment returns on the Foundation's longterm investment portfolio 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.
The Borrow Foundation **17**
**Trustees’ report** 31 March 2022
## **Financial review** (continued)
## _**Investment policy**_ (continued)
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 2022, the group's investments decreased in value by £510,761, from £29,149,126 to £28,638,365 in total. This decrease in value includes an increase of £360,487 (2021 – £1,959,071 increase) in the unrealised value of the group's long-term investment portfolio for the year, and an unrealised loss of £975,000 (2021 – £1,200,000 gain) on the revaluation of the investment property.
The increase in the capital value of the portfolio was due primarily to the continued recovery from market setbacks related to COVID-19, with markets having moved towards their pre-pandemic peaks. Whilst, following the decline in dividends during the pandemic, income yields remained subdued, they stabilised and the income target for the year was met. The overall performance was considered satisfactory, particularly when taking into account the impact of changes made during the year to streamline the portfolio and improve its efficiency.
Since year-end, global markets have been volatile and the economic outlook has deteriorated, with growing concern over inflation, the cost-of-living crisis and geopolitical uncertainty. Despite the fact that markets have shown resilience, the trustees and their investment advisers are conscious of the heightened risk to capital values.
The Foundation has a core target for its long-term investment portfolio to out-perform cash or near cash instruments over three-year rolling periods, measured on a total return basis net of fees. Over the period from 1 April 2019 to 31 March 2022 this core target was achieved (as it had been in the prior three-year period ending 31 March 2021).
## _**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 this risk. The trustees are satisfied that the income yield is sustainable and has potential to increase over time.
The cash reserve policy is adequate to meet the Foundation's short to medium term commitments, avoiding 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 18 months, ending 31 March 2024. Consideration has been given to all available information about the future.
The Borrow Foundation **18**
**Trustees’ report** 31 March 2022
## **Financial review** (continued)
## _**Going concern assessment** (continued)_
Base case and worst-case cash flow forecasts have been prepared for the charity and the subsidiary company. In the worst-case scenarios, we have provided for a significant fall across all income streams. The projected expenditure assumes that over the period in question, high inflation will persist and interest rates will increase further. Particular consideration has been given to energy supplies. It has been assumed that prices will remain high and that the support received under the government’s Energy Bill Relief Scheme will not extend beyond 31 March 2023. An assumption has been made that the anticipated sale of land at Hazleton Farm by the subsidiary company will not proceed to completion and there will be abortive costs.
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, 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.
## _**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 £20 million. The proceeds of any sale will be payable in four tranches, the first on completion and then in three subsequent tranches. A planning agreement was completed, and planning permission subsequently granted in December 2021. The final negotiations over the possible sale of the land are ongoing.
## _**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 Borrow Foundation **19**
**Trustees’ report** 31 March 2022
## **Financial review** (continued)
## _**Reserves policy** (continued)_
The trustees have set aside £458,068 (2021 – £615,956) to meet commitments made at the year-end for research grant payments covering a period to 31 March 2023 (note 17). The Foundation also considers that the group's total fixed assets of £29,425,972 (2021 – £29,941,070), 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 £59,289 (2021 – £226,175).
## **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.
## **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 Borrow Foundation **20**
**Trustees’ report** 31 March 2022
**Trustees' responsibilities statement** (continued)
- 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.
## **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
Nigel Thomas
Trustee
The Borrow Foundation **21**
**Independent auditor’s report** 31 March 2022
## **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 2022 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 2022 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 2022
## **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 2022
## **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 2022
## **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.
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.
The Borrow Foundation **25**
## **Independent auditor’s report** 31 March 2022
## **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: 13 December 2022
The Borrow Foundation **26**
## **Group statement of financial activities** Year to 31 March 2022
(including an income and expenditure account)
|Notes|**Unrestricted**|**Unrestricted**|**Total funds**
**2022**
**£**|Unrestricted|Unrestricted|Total funds
2021
£|
|---|---|---|---|---|---|---|
||**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
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|**1,298,431**
**234,425**|**—**
**—**|**1,298,431**
**234,425**|1,522,228
281,772|—
—|1,522,228
281,772|
||**1,532,856**
**591,509**
**46,260**|**—**
**—**
**—**|**1,532,856**
**591,509**
**46,260**|1,804,000
646,253
46,636|—
—
—|1,804,000
646,253
46,636|
||**637,769**
**786,674**|**—**
**—**|**637,769**
**786,674**|692,889
806,189|—
—|692,889
806,189|
||**1,424,443**
**—**
**—**
**—**|**—**
**360,487**
**(975,000)**
**185,250**|**1,424,443**
**360,487**
**(975,000)**
**185,250**|1,499,078
—
—
—|—
1,959,071
1,200,000
(441,370)|1,499,078
1,959,071
1,200,000
(441,370)|
||**108,413**|**(429,263)**|**(320,850)**|304,922|2,717,701|3,022,623|
||**108,413**
**13,246,132**|**(429,263)**
**14,829,704**|**(320,850)**
**28,075,836**|304,922
12,941,210|2,717,701
12,112,003|3,022,623
25,053,213|
||**13,354,545**|**14,400,441**|**27,754,986**|13,246,132|14,829,704|28,075,836|
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 2022
|Notes|**2022**
**£**|**2022**
**£**|2021
£|2021
£|
|---|---|---|---|---|
|**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|**405,014**
**772,128**|**787,607**
**28,638,365**|399,859
743,519|791,944
29,149,126|
|||**29,425,972**
**644,354**
**30,070,326**
**(2,315,340)**||29,941,070
636,046
30,577,116
(2,501,280)|
||**1,177,142**
**(532,788)**||1,143,378
(507,332)||
|||**27,754,986**||28,075,836|
|||**13,354,545**
**14,400,441**||13,246,132
14,829,704|
|||**27,754,986**||28,075,836|
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
Nigel Thomas
Trustee
Company registration number 03303900 (England and Wales)
The Borrow Foundation **28**
## **Charitable company balance sheet** As at 31 March 2022
|Notes|**2022**
**£**|**2022**
**£**|2021
£|2021
£|
|---|---|---|---|---|
|**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|**66,760**
**193,010**|**485,836**
**16,112,901**|69,613
71,920|491,610
15,648,662|
|||**16,598,737**
**1,900,000**
**146,370**||16,140,272
1,900,000
(39,032)|
||**259,770**
**(113,400)**||141,533
(180,565)||
||||||
|||**18,645,107**
**(3,990)**||18,001,240
(3,990)|
|||**18,641,117**||17,997,250|
|||**14,270,911**
**4,370,206**||13,987,531
4,009,719|
|||**18,641,117**||17,997,250|
Approved and authorised for issue by the Board of Trustees on on its behalf by
and signed
Nigel Thomas
Trustee
Company registration number 03303900 (England and Wales)
The Borrow Foundation **29**
## **Group statement of cash flows** 31 March 2022
|Notes|**2022**
**£**|2021
£|
|---|---|---|
|**Cash flows from operating activities:**
Net cash used in operating activities
A
**Cash flows from investing activities:**
Investment income
Purchase of tangible fixed assets
Proceeds from the disposal of investments
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 2021**
B
**Cash and cash equivalents at 31 March 2022**
B|**(98,090)**|(176,206)|
||**234,425**
**(3,974)**
**779,501**
**(708,846)**|249,248
(4,256)
—
(11,440)|
||**301,106**|233,552|
||**203,016**
**4,702,695**|57,346
4,645,350|
||**4,905,711**|4,702,695|
## **Notes to the statement of cash flows for the year to 31 March 2022.**
## **A Reconciliation of net movement in funds to net cash used in operating activities**
**----- Start of picture text -----**
2022 2021
£ £
Net movement in funds (as per the statement of financial activities) (320,850) 3,022,623
Adjustments for:
Depreciation charge 8,311 15,335
Losses (gains) on investments 614,513 (3,159,071)
Investment income (234,425) (249,248)
(Increase) in debtors (5,155) (191,159)
(Decrease) increase in creditors (160,484) 385,314
Net cash used in operating activities (98,090) (176,206)
**----- End of picture text -----**
## **B Analysis of cash and cash equivalents**
|**Analysis of cash and cash equivalents**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Cash at bank and in hand
Cash held by investment managers
**Total cash and cash equivalents**|**772,128**
**4,133,583**|743,519
3,959,176|
||**4,905,711**|4,702,695|
## **C Analysis of changes in net debt**
||At 1
September
2021
£’000|Cash
flows
£’000|**At 31**
**August**
**2022**
**£’000**|
|---|---|---|---|
|Cash and cash equivalents
**Total**|4,702,695
4,702,695|203,016
203,016|**4,905,711**
**4,905,711**|
The Borrow Foundation **30**
**Principal accounting policies** 31 March 2022
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 2022.
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 2022
## **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 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 2022
**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 2022
## **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 2022
## **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 2022
## **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 2022
## **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.
||**2022**
**£**|2021
£|
|---|---|---|
|Rental income generated from UK operating leases
Rental income (Foundation)
Other income|**1,180,440**
**23,940**
**94,051**
**1,298,431**|1,402,565
23,940
95,723
1,522,228|
## **2 Income from investments**
|**Income from investments**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Income from fixed asset investments
Bank interest received|**211,739**
**22,686**
**234,425**|249,248
32,524
281,772|
## **3 Expenditure on raising funds: professional fees**
|**Expenditure on raising funds: professional fees**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Investment advisors and investment managers
Surveyors and other property related advice|**45,001**
**1,259**
**46,260**|39,419
7,217
46,636|
## **4 Expenditure on charitable activities**
|**Expenditure on charitable activities**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Grants (note 5)
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)|**404,932**
**16,783**
**7,406**
**251,540**
**67,913**
**7,127**
**438**
**14,825**
**1,070**
**14,640**|448,441
9,690
7,486
245,786
59,712
9,608
—
12,261
845
12,360|
||**786,674**|806,189|
The Borrow Foundation **37**
## **Notes to the financial statements** Year to 31 March 2022
## **5 Grants payable**
**----- Start of picture text -----**
2022 2021
£ £
Community schemes
Chile 43,026 20,634
Bhutan 39,379 —
ACDOM 12,092 —
Cambodia 43,787 —
Thailand 19,964 21,704
158,248 42,338
Clinical/laboratory/research grants
ACTA Netherlands 40,160 24,581
British Fluoridation Society 10,000 10,000
British Association for the Study of Community Dentistry (BASCD) — 300
Global Child Dental Fund — 4,000
IADR Memorial Award 2,944 3,013
Leeds Institute, UK 12,850 12,850
Maldent, Uni Malawi — 7,673
Nat Dental Centre, Singapore 29,152 13,627
Tashkent Uzbekistan 12,123 20,989
Teesside University, UK 3,430 25,420
University College London 10,000 45,805
University of Adelaide, Australia 577 19,462
University of Glasgow 19,948 148,639
University of Jordan — 219
Uni Montpelier France — 46,118
—
University of Bern 12,616
—
University of Newcastle, UK 55,000
208,800 382,696
World Health Organisation – collaboration 28,695 14,166
Grants towards training, travel, conference attendance and sponsorship
of Dental Association 9,189 9,241
Total grants payable (notes 4 and 17) 404,932 448,441
6 Governance costs
2022 2021
£ £
Accountancy and audit 14,640 12,360
14,640 12,360
**----- End of picture text -----**
The Borrow Foundation **38**
**Notes to the financial statements** Year to 31 March 2022
## **7 Net income (expenditure) for the year**
## _**a. Net income (expenditure) for the year is stated after charging:**_
||**2022**
**£**|2021
£|
|---|---|---|
|Depreciation of owned fixed assets
Auditor’s remuneration (note 7b)
Operating lease rentals – land and buildings|**8,311**
**25,510**
**57,500**|15,335
23,850
57,500|
## _**b. Analysis of auditor’s remuneration**_
|**_b. Analysis of auditor’s remuneration_**|||
|---|---|---|
||**2022**
**£**|2021
£|
|Audit fees (audit of the Foundation and subsidiary)
. Current year
Other services (taxation)|**22,360**
**3,150**
**25,510**|20,900
2,950
23,850|
## _**c. Employees**_
The average number of employees was:
**----- Start of picture text -----**
2022 2021
No. No.
The Borrow Foundation 7 7
Borrow Investments Limited 5 5
12 12
2022 2021
£ £
Staff costs for the above persons:
. Wages and salaries 361,332 357,894
. Social security costs 36,880 37,242
. Other pension costs 19,883 20,749
418,095 415,885
**----- 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 2022
## **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**
**2022**
**£**|**Borrow**
**Investments**
**2022**
**£**|**Total**
**2022**
**£**|Borrow
Foundation
2021
£|Borrow
Investments
2021
£|Total
2021
£|
|---|---|---|---|---|---|---|
|Remuneration
Company contributions to a money
purchase pension scheme|**38,561**
**3,470**
**42,031**|**74,800**
**6,732**
**81,532**|**113,361**
**10,202**
**123,563**|37,339
3,360
40,699|74,677
6,721
81,398|112,016
10,081
122,098|
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 £136,767 (2021 – £135,131).
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 (2021 – 1).
Trustee expenses amounted to £nil (2021 – £nil).
## **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 £643,867 (2021 – net income of £2,094,748).
The Borrow Foundation **40**
**Notes to the financial statements** Year to 31 March 2022
## **10 Tangible fixed assets**
## _**Group**_
|**_Group_**|||||
|---|---|---|---|---|
||Freehold
land and
buildings
£|Building
improve-
ments
£|Plant,
equipment,
fixtures
and
fittings
£|**Total**
**£**|
|**Cost**
At 1 April 2021
Additions
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book values**
At 31 March 2022
At 31 March 2021|1,082,009
—|65,044
—|104,231
3,974|**1,251,284**
**3,974**|
||1,082,009|65,044|108,205|**1,255,268**|
||299,042
4,641|61,674
1,099|98,624
2,571|**459,340**
**8,311**|
||303,683|62,773|101,195|**467,651**|
||778,326
782,967|2,271
3,370|7,010
5,607|**787,607**
**791,944**|
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 £20 million. The proceeds of any sale will be payable in four tranches, the first on completion and then in three subsequent tranches. A planning agreement was completed, and planning permission subsequently granted in December 2021. The final negotiations over the possible sale of the land are ongoing.
Included within freehold land and buildings is land valued at £647,967 (2021 – £647,967) which is not being depreciated.
The Borrow Foundation **41**
**Notes to the financial statements** Year to 31 March 2022
## **10 Tangible fixed assets** (continued)
## _**Charity**_
|**_Charity_**|||||
|---|---|---|---|---|
||Freehold
land and
buildings
£|Building
improve-
ments
£|Plant,
equipment,
fixtures
and
fittings
£|**Total**
**£**|
|**Cost**
At 1 April 2021
Additions
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book values**
At 31 March 2022
At 31 March 2021|674,356
—|65,047
—|60,211
1,355|**799,614**
**1,355**|
||674,356|65,047|61,566|**800,969**|
||189,328
4,641|61,675
1,099|57,001
1,389|**308,004**
**7,129**|
||193,969|62,774|58,390|**315,133**|
||480,387
485,028|2,273
3,372|3,176
3,210|**485,836**
**491,610**|
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 (2021 – £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 2022
## **11 Investments**
## _**Group**_
||Listed
invest-
ments
£|Investment
property
£|Cash
£|**Total**
**£**|
|---|---|---|---|---|
|At 1 April 2021
Additions
Disposals (proceeds £779,501; realised
losses £6,150)
Net gains on revaluation (note 15)
At 31 March 2022
Investment assets held in the UK
Investment assets held overseas|10,214,950
708,846
(785,651)
366,637
10,504,782
10,290,016
214,766
10,504,782|14,975,000
—
—
(975,000)
14,000,000
14,000,000
—
14,000,000|3,959,176
174,407
—
—
4,133,583
4,133,583
—
4,133,583|**29,149,126**
**883,253**
**(785,651)**
**(608,363)**
**28,638,365**
**28,423,599**
**214,766**
**28,638,365**|
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 £6,284,949 (2021 - £6,181,197).
At 31 March, 2022, 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|**650,051**
**2,108,400**|**6.2**
**20.0**|
## _**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 2022 is £14,000,000. 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 2022
## **11 Investments** (continued)
## _**Charity**_
|**_Charity_**|||||
|---|---|---|---|---|
||Listed
investments
£|Cash
£|Shares
in
subsidiary
undertaking
£|**Total**
**£**|
|At 1 April 2021
Additions
Disposals (proceeds £779,501; realised
losses £6,150)
Net gains on revaluation (note 15)
At 31 March 2022
Investment assets held in the UK
Investment assets held overseas|10,214,950
708,846
(785,651)
366,637
10,504,782
10,290,016
214,766
10,504,782|3,959,176
174,407
—
—
4,133,583
4,133,583
—
4,133,583|1,474,536
—
—
—
1,474,536
1,474,536
—
1,474,536|**15,648,662**
**883,253**
**(785,651)**
**366,637**
**16,112,901**
**15,898,135**
**214,766**
**16,112,901**|
## _**Listed investments**_
The historical cost of the listed investments to the charitable company was £6,284,949 (2021 – £6,181,197).
At 31 March 2022, 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|**650,051**
**2,108,400**|**6.2**
**20.0**|
## _**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.
The Borrow Foundation **44**
**Notes to the financial statements** Year to 31 March 2022
## **11 Investments** (continued)
## _**Shares in subsidiary undertaking** (continued)_
A summary of the results of the subsidiary undertaking to 31 March 2022 is shown below:
**----- Start of picture text -----**
2022 2021
£ £
Turnover 1,274,491 1,498,288
Cost of sales (438,287) (500,562)
Gross profit 836,204 997,726
Administrative expenses (192,374) (184,277)
Operating profit 643,830 813,449
Interest receivable 4,195 4,065
Interest payable and similar charges (41,665) (39,900)
Profit on ordinary activities before Gift Aid 606,360 777,614
Gift Aid (note 20) (781,327) (608,369)
(Deficit) surplus on ordinary activities before revaluation of investment
property (174,967) 169,245
Unrealised (loss) gain on revaluation of investment (975,000) 1,200,000
Deferred tax on revaluation of investment property 185,250 (441,370)
(Loss) profit for the financial year (964,717) 927,875
Accumulated surplus at 1 April 12,161,491 11,233,616
Total comprehensive (expenditure) income (964,717) 927,875
Accumulated surplus at 31 March 11,196,774 12,161,491
**----- End of picture text -----**
**----- Start of picture text -----**
2022 2021
£ £
The aggregate of the assets and liabilities was:
. Assets 15,864,691 16,969,438
. Liabilities (4,667,917) (4,807,947)
11,196,774 12,161,491
Represented by:
. 30,002 ordinary shares at £1 each 30,002 30,002
. Investment revaluation reserve 10,030,235 10,819,985
. Profit and loss account 1,136,537 1,311,504
11,196,774 12,161,491
**----- End of picture text -----**
The Borrow Foundation **45**
**Notes to the financial statements** Year to 31 March 2022
## **12 Debtors**
**----- Start of picture text -----**
Group Charity
2022 2021 2022 2021
£ £ £ £
Trade debtors 191,895 106,590 — —
Loan to subsidiary undertaking (note 20) — — 1,900,000 1,900,000
Prepayments and accrued income 213,119 293,269 66,760 69,613
405,014 399,859 1,966,760 1,969,613
**----- 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
2022 2021 2022 2021
£ £ £ £
Trade creditors 22,413 17,776 6,976 8,069
Amounts owed to subsidiary undertaking
(note 20) — — 37,209 83,889
Taxation and social security 10,536 11,131 6,885 7,083
Accruals and deferred income 370,046 350,163 62,330 81,524
Other creditors 129,793 128,262 — —
532,788 507,332 113,400 180,565
**----- End of picture text -----**
Included within Group accruals and deferred income is £258,625 (2021 - £250,061) 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 movement on deferred income account is set out below:
||**2022**
**£**|2021
£|
|---|---|---|
|At 1 April 2021
Released from prior year
Deferred in current year
At 31 March 2022|**250,061**
**(250,061)**
**258,625**
**258,625**|235,654
(235,654)
250,061
250,061|
The Borrow Foundation **46**
**Notes to the financial statements** Year to 31 March 2022
## **14. Creditors: amounts falling due after more than one year**
|**Creditors: amounts falling due after more than one year**|||
|---|---|---|
|**_Group_**|**2022**
**£**|2021
£|
|Rent deposits
Deferred tax liability
**_Charity_**|**245,575**
**2,069,765**
**2,315,340**
**2022**
**£**|241,265
2,255,015
2,501,280
2021
£|
|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:
||**2022**
**£**|2021
£|
|---|---|---|
|At 1 April
Movement in the year
At 31 March|**2,255,015**
**(185,250)**
**2,069,765**|1,813,645
441,370
2,255,015|
## **15 Statement of movements on reserves**
## **Group**
**----- Start of picture text -----**
Revaluation reserves
Unrestricted Investment
funds property Other Total
£ £ £ £
At 1 April 2021 13,246,132 10,819,985 4,009,719 28,075,836
Surplus for the year 108,413 — — 108,413
Unrealised gains (note 11) — — 366,637 366,637
Realised losses — — (6,150) (6,150)
Revaluation of investment property — (975,000) — (975,000)
Deferred tax — 185,250 — 185,250
At 31 March 2022 13,354,545 10,030,235 4,370,206 27,754,986
**----- End of picture text -----**
**----- Start of picture text -----**
Revaluation reserves
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 2022
## **15 Statement of movements on reserves** (continued)
## **Charity**
||Unrestricted
funds
£|Revaluation
reserve
£|**Total**
**£**|
|---|---|---|---|
|At 1 April 2021
Surplus for the year (excluding realised losses)
Unrealised gains (note 11)
Realised losses (note 11)
At 31 March 2022|13,987,531
283,380
—
—
14,270,911|4,009,719
—
366,637
(6,150)
4,370,206|**17,997,250**
**283,380**
**366,637**
**(6,150)**
**18,641,117**|
|_At 1 April 2020_
_Surplus for the year (excluding realised gains)_
_Unrealised gains (note 11)_
_At 31 March 2021_|_Unrestricted_
_funds_
_£_|_Revaluation_
_reserve_
_£_|_Total_
_£_|
|---|---|---|---|
||_13,851,854_
_135,677_
_—_
_13,987,531_|_2,050,648_
_—_
_1,959,071_
_4,009,719_|_15,902,502_
_135,677_
_1,959,071_
_17,997,250_|
## **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 2022
## **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:
||**2022**
**£**|
|---|---|
|Grant commitments at 1 April 2021
Charged to the statement of financial activities in the year (note 5)
New commitments arising
Grant commitments at 31 March 2022
Payable within one year
Payable after more than one year|**615,956**
**(404,932)**
**247,044**|
||**458,068**|
||**321,223**
**136,845**|
||**458,068**|
**----- Start of picture text -----**
Year Year Year
ended 31 ended 31 ended 31
March March March
2023 2024 2025 Total
£ £ £ £
Population-based projects & Clinical,
laboratory and population research
Ministry of Health, Bhutan 4,815 — — 4,815
Univ. of Puthisastra, Cambodia — 20,400 — 20,400
Univ. Iberoamericana, Dominican Rep. 6,659 — — 6,659
University of Montpellier, France 11,212 — — 11,212
Kamuzu University of Health Sciences,
Malawi 26,647 17,893 — 44,540
Academic Centre for Dentistry, Netherlands 19,463 38,925 2,539 60,927
— —
Malmo University, Sweden 10,202 10,202
University of Bern, Switzerland — 11,542 742 12,284
— —
University of Glasgow, UK 36,500 36,500
Teesside University, UK 1,500 — — 1,500
— —
University College London, UK 1,500 1,500
University of Leeds (project in Sudan) 1,500 — — 1,500
University of Newcastle, UK 26,500 28,500 — 55,000
146,498 117,260 3,281 267,039
Dental Associations / Meetings
British Fluoridation Society 10,000 10,000 — 20,000
University College London, UK 42,000 — — 42,000
GLOBICS Nat. Dental Centre, Singapore 22,792 6,304 — 29,096
74,792 16,304 — 91,096
WHO Collaboration
WHO HQ, Geneva, Switzerland 99,933 — — 99,933
Total 321,223 133,564 3,281 458,068
**----- End of picture text -----**
The Borrow Foundation **49**
## **Notes to the financial statements** Year to 31 March 2022
## **17 Future commitments – grants payable** (continued)
**----- 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 -----**
## **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
2022 2021
£ £
Operating leases payments:
. within one year 57,500 57,500
. within two to five years 287,500 287,500
. after more than 5 years 2,678,542 2,736,042
3,023,542 3,081,042
**----- End of picture text -----**
The Borrow Foundation **50**
**Notes to the financial statements** Year to 31 March 2022
## **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 £19,883 (2021 – £20,749). There were contributions of £3,470 (2021 – £3,405) outstanding at the year end.
## **20 Related party transactions**
## _**a. Transactions with subsidiary undertaking**_
**----- Start of picture text -----**
2022 2021
£ £
**----- End of picture text -----**
||**£**|£|
|---|---|---|
|Gift Aid paid to the Foundation (note 11)|**781,327**|608,369|
|Interest payable to the Foundation|**41,665**|39,900|
|Management fees charged by the Foundation|**39,152**|38,586|
|Loan due from Borrow Investments Limited at the balance sheet date|||
|(note 12)|**1,900,000**|1,900,000|
|Due to Borrow Investments Limited at the balance sheet date (note 13)|**(37,209)**|(83,889)|
## _**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 (2021: 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.
## **22 Post balance sheet events**
The sale of 0.4 acres of land was completed in August 2022, for sale proceeds of £275,000.
The Borrow Foundation **51**
## **Charitable company statement of financial activities** Year to 31 March 2022 **Not for publication**
**----- Start of picture text -----**
2022 2022 2021 2021
£ £ £ £
Income from:
Rental income 23,940 23,940
Income from Borrow Investments Limited
including Gift Aid 862,144 686,854
Investment income 230,230 277,707
Total income 1,116,314 988,501
Expenditure on:
Raising funds
. Costs re investment advisors and
investment managers 45,001 39,419
. Surveyors and other property related
advice 1,259 7,217
(46,260) (46,636)
Charitable activities
. Grants 404,932 448,441
. Information and education 16,783 9,690
. Subscriptions and media costs 7,406 7,486
. Support costs:
.. Staff costs 251,540 245,786
.. Office costs 67,913 59,712
.. Depreciation 7,127 9,608
.. Legal and professional fees 14,825 12,261
.. Travel expenses 438 —
.. Bank charges/foreign currency gains and
losses 1,070 845
. Accountancy and audit 14,640 12,360
(786,674) (806,189)
Total expenditure (832,934) (852,825)
Net income for the year before
investment gains 283,380 135,677
Net investment gains 360,487 1,959,071
Net income 643,867 2,094,748
**----- End of picture text -----**
The Borrow Foundation **52**