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← The Borrow Foundation

2023-03-31-accounts

The Borrow Foundation Report and Group Financial Statements

31 March 2023

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 3
report 25
Financial statements
Group statement of financial activities 30
Balance sheets 31
Group statement of cash flows 33
Principal accounting policies 34
Notes to the financial statements 40

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 (resigned 17 February
2023)
Professor L M D Macpherson (appointed
29 March 2023)
Professor J T Newton (appointed 7 June
2023)
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

The Borrow Foundation 1

Reference and administrative details of the company and its advisors

Solicitors RWK Goodman 69 Carter Lane London EC4V 5EQ

The Borrow Foundation 2

Trustees 31 March 2023

The trustees present their report and the audited group financial statements for the year ended 31 March 2023. 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

The financial statements have been prepared in accordance with the accounting policies set out on pages 34 to 39 of the attached financial statements 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

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 for England and Wales (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 U M C Stecksén-Blicks Dr N M Thomas (resigned 17 February 2023) Professor L M D Macpherson (appointed 29 March 2023) Mr N F Borrow

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Structure, governance and management (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.

Over the past year, there have been several changes to the Board. Dr Nigel Thomas retired in February 2023. Dr Thomas proved to be an excellent trustee and the valuable en two important appointments, bringing new skills and considerable experience to the Board. Professor Lorna Macpherson joined in March 2023, and Professor Tim Newton in June 2023.

Trustee induction and training

Prior to their appointments, prospective trustees are provided with an induction pack which tatements 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.

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Structure, governance and management (continued)

Organisational structure (continued)

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 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 £634,489 (2022 £781,327), 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 t 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.

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31 March 2023

Trustees

Objectives, activities and public benefit (continued)

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.

Mission and priorities

children, through the prevention of oral diseases. With the focus firmly on inequalities in ent to

Our priorities include:

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Objectives, activities and public benefit (continued)

Mission and priorities (continued)

In particular we provide support to:

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.

around the world, the trustees recognise that there is an increased risk of grant funding being misappropriated or applied ineffectively due to the complexities of working overseas. Measures are taken to mitigate this risk.

Much of our work is carried out through or with leading organisations and academic institutions. Careful consideration is given to all potential partners and beneficiaries, having regard for their ability and capacity for managing and delivering the project or programme being contemplated, as well as their status and reputation. Regular reports required from our 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. These 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 our 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 performance is also closely monitored, and management reports are routinely provided at Board meetings.

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Objectives, activities and public benefit (continued)

Risk management (continued)

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 se that cybercrime poses an ever-evolving threat, and as dependence on technology grows, the risk and potential impact of security breaches increases.

Steps have been taken to mitigate these risks. IT consultants, Cyan Solutions Ltd, 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 cyber-attacks, remote monitoring being a vital aspect of these defences. Our staff training has been delivered through online resources, provided by the National Cyber Security Centre and iHasco respectively. Just recently, a cyber awareness programme, tailored to the needs of the charity, has been developed by our consultants through their training platform. This is one of several measures being taken to strengthen further our systems and procedures, following a recent review.

Cost of living crisis

The trustees remain alert to the risks posed by the cost-of-living crisis and the implications interest rates and increased energy costs is a particular concern and 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

countries in which our resources are being applied has risen, and the number of people benefitting from the activities we fund has grown substantially. Despite the geopolitical uncertainty and challenging economic climate, the work supported by the charity continues to evolve.

Collaboration with the World Health Organization (WHO)

We have continued to support the vital work undertaken by WHO and this has proved to

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Achievements and performance (continued)

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

Our contributions have been largely applied to the delivery of the WHO global oral health status report, strategy, and action plan. The progress made in these important initiatives by WHO has been impressive, and it has been widely recognised that this has helped elevate oral health onto the global health agenda and generated momentum for the improvement of oral health worldwide.

The Global Oral Health Report provided for the first time a comprehensive picture of the global oral disease burden. It includes data from 194 countries, providing a unique insight into key areas and markers of oral health that are relevant to decision makers. Released in November 2022, this report has been described as an important milestone in a move to mobilise political action and resources to address the challenges faced over this major public health issue.

The WHO Global Oral Health Strategy was adopted at the 75[th] World Health Assembly in May 2022. This sets out the bold vision of universal health coverage (UHC) for oral health to reach all individuals and communities by 2030. The strategy includes actions for international partners, civil society and the private sector, and sets out four overarching goals to guide member states, to:

Following extensive consultation, the strategy has been translated into the Global Oral Health Action Plan, which is aligned with the Global Action Plan for the Prevention and Control of Noncommunicable Diseases 2013 2030. This plan seeks to strengthen national leadership, enhance oral disease prevention, improve oral health workforce capabilities, and scale up research. It comprises 100 evidence-informed actions for stakeholders which, importantly, includes direction for member states that can be adapted to national and sub-national contexts. A monitoring framework has been developed, providing a clear set of measurable targets and core indicators that are being used to assess implementation progress.

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Achievements and performance (continued)

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

Our contributions made to WHO have also been applied to another important project which -course approach, population-based strategies and best buy interventions xpert consensus process used to identify and prioritise the cost-effective and evidence-based - and middle- income countries and included in the action plan for the prevention and control of noncommunicable diseases. Under this project, a series of interventions is being promoted for inclusion in the WHO Universal Health Coverage Compendium online platform, the purpose being to - he interventions needed for a UHC package. Also, an updated list of fluoride-containing formulations has consideration by a WHO expert committee.

The Lancet Commission

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 Lancet Commission on Oral Health.

Under a grant awarded by the Foundation to University College London, UK, the commission was launched in March 2020. At the outset, 27 experts from 16 countries, engaged in academic research, policymaking, health and human rights advocacy, and clinical dentistry, were appointed as commissioners. Their focus has been 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 commission has enjoyed a high profile. Its work has been carried out over a term of three years and has been well received. A report on the outcomes of this collaborative project is being prepared, for publication in the Lancet in spring 2024. A launch event is also planned, to maximise the impact of the work.

The commissioners have received good support from the senior team at the Lancet, and the Editor, Dr Richard Horton, has become an valuable advocate for oral health. Also, the de emergence of the WHO global oral health status report, strategy and action plan. Several scientific papers / commentaries have been published, to inform global oral health policy decision making.

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Achievements and performance (continued)

Oral Health Birth Cohort Studies Consortium

Our funding has 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.

An extensive programme of work is well advanced, and our three-year funding commitment will expire in March 2024. The successful implementation of the project has however recently attracted a substantial grant from the National Medical Research Council of Singapore, thereby ensuring the continuation and expansion of this important international collaboration.

Digital oral health survey

The potential for using technology to strengthen health care systems and interventions is widely recognised, and a priority for WHO. Although, interest in digital health is growing rapidly, it has been suggested that the oral health community has failed to keep pace with the advances in this field. The trustees were therefore pleased to provide a grant to the University of Montpellier, France , to assess, at a global level, the potential for digital oral health and the organisational, governmental, and societal e-readiness. The work was carried out in collaboration with McGill University, Montréal, Canada. Technical support was provided by WHO.

A two-step approach was used to gather quantitative and qualitative data. In the first phase an e-questionnaire was distributed to chief dental officers (CDOs) across the world. There were 101 responses from 86 countries. In the second phase, online interviews were conducted with 12 of the CDOs.

The results showed a clear digital divide between developed and developing countries. It was found that in high income countries, it is far more likely that a national digital health policy will be in place and that digital oral health will feature in any national oral health policy. The same pattern applied to training. Unsurprisingly, funding for digital health / oral health was identified as a major barrier in low- and middle- income countries.

The survey did confirm that the potential for using digital technology in public oral health is widely recognised and that the pandemic has accelerated the use of digital platforms. However, the researchers felt that commitment towards digital oral health programmes must be strengthened globally, and set out four aims that could help achieve this:

Advocate on the use of digital technologies in public oral health

Use digital technology to improve oral health advocacy

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Achievements and performance (continued)

Digital oral health survey (continued)

Improve digital health knowledge of oral health professionals and students

Integrate the sustainability concept in digital oral health programmes.

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 consensus that a combination of downstream, midstream, and upstream interventions is required. We therefore provided a grant 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 complemented work undertaken by the Lancet Commission on policy and oral health inequalities. It has also informed the work being carried out by WHO on the Global Oral Health Action Plan.

Despite the detailed and thorough search, the review identified only a limited number of upstream interventions that focused on improving oral health, and an even smaller number that tackled oral health inequalities. However, three levels of upstream intervention were identified, including policies tackling the broader socio-political determinants of health, policies combating NCDs linked to oral health, and some specific interventions focusing on oral health, e.g., water fluoridation.

The researchers concluded that the upstream approach to prevention remains highly relevant to public health policy and provides a guiding principle for future strategic action to promote oral health and tackle oral health inequalities. They did however feel that there is a pressing need for more research to develop further the evidence base for upstream interventions using appropriate evaluation methods.

Population-based oral health

During the financial year, our funding was also applied to the following population-based programmes and research.

New projects

Awards were made to:

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Achievements and performance (continued)

Population-based oral health (continued)

New projects (continued)

Ongoing projects

We have continued to provide support to:

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Achievements and performance (continued)

Population-based oral health (continued)

Ongoing projects (continued)

Teesside University, UK , for three studies.

The first study aims to assess whether spot urine samples are reliable for monitoring fluoride exposure in children ingesting fluoride, in different geographical locations, through toothpaste, community water, milk, and salt. Twenty-four-hour urinary fluoride work is being conducted in collaboration with the University of Bogotá, Colombia, the University of Talca, Chile, and the University of São Paulo, Brazil.

A scoping review, the second study, has been conducted to map the literature /evidence on the use of spot urine samples and nail clippings as biomarkers for monitoring fluoride exposure in community-based programmes.

The third study is considering the effects of milk supplemented with fluoride and / or probiotics on controlling cariogenic biofilm growth, using an in vitro experimental mode. It has been suggested that the effectiveness of fluoride in preventing caries could be boosted when combined with probiotics, but despite the potential benefits of using probiotics for improving general health, the evidence for their benefit to oral health is still limited. The researchers are also looking to identify which probiotics could be most beneficial for oral health.

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Achievements and performance (continued)

Population-based oral health (continued)

Ongoing projects (continued)

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Achievements and performance (continued)

Support for dental associations / organisations

We have continued to provide support for dental associations to undertake activities that

European Association for Dental Public Health (EADPH)

Since 2009 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 continued to be 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 26th EADPH conference, held in Montpellier in September 2022, was organised as a hybrid meeting. Thirty travel grants were made in respect of this event, including awards for eight researchers attending in person, and 22 virtual participants.

The EADPH Board has widely acknowledged that our sponsorship has made a significant 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 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 at the IADR General Session. In June 2023, in Bogotá, Colombia, it was received by Professor Richard Niederman, New York University, USA.

At the same meeting, our Chair, Professor Andrew John Rugg-Gunn, was announced as the 2023 recipient of the IADR Gold Medal. This is a most prestigious award, being the highest recognition bestowed by the IADR. It is presented to a previous recipient of an IADR Distinguished Scientist Award who later builds on their original scientific achievements to more broadly impact science, health research, or population health through the expansion of their field into other disciplines, or through higher administrative positions in academia, government, non-profit, or private industry.

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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, in November 2022, the BASCD Borrow Foundation Early Career Award was presented to Dr Julia Hurry, Queen Mary University of 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 was provided to BFS covering the period 2022 2024 inclusive. community water fluoridation in the UK. There have been some encouraging developme with moves being made to streamline the process for the implementation of new schemes.

European Organisation for Caries Research (ORCA)

We were pleased to sponsor a symposium held in Egmond aan Zee, Netherlands, in July 2023, in conjunction with the ORCA Congress. The theme was dental public health interventions. At the well-attended event, there was a particular focus on programmes aimed at improving the oral health of young children and elderly persons.

(ACDOM)

Our sponsorship of ACDOM has provided wider access to these important events, particularly to those working in lower-income countries, and closer engagement between the oral health decision makers in the region and WHO. The next meeting will be held in Phra Nakhon Si Ayutthaya, Thailand, in December 2023. It is being organised jointly by WHO Collaborating Centre for Oral Health Education and Research, Mahidol University, and the Department of Health, Ministry of Public Health, Thailand. This event will bring together decision makers from the region to consider the WHO global oral health action plan and to agree the steps to be taken towards meeting overarching targets.

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Achievements and performance (continued)

Publications

Abreu-Placeres N, Ekstrand KR, Garrido LE, Bakhshandeh A and Martignon S (2023) An interdisciplinary intervention program to prevent early childhood caries in the Dominican Republic. Front. Oral. Health 4:1176439. doi: 10.3389/froh.2023.1176439

address persistent oral health inequality among young children: an exploratory multistakeholder analysis in a disadvantaged neighbourhood of Amsterdam, the Netherlands. BMC Oral Health 22, 488 (2022). https://doi.org/10.1186/s12903-022-02510-w

Balasooriyan A, Dedding C, Bonifácio CC, van der Veen MH (2023) Parental and children. Abstract 113 ORCA congress, 5th 8th July 2023.

Dawson ER, Stennett M, Daly B, et al. Upstream interventions to promote oral health and reduce socioeconomic oral health inequalities: a scoping review protocol. BMJ Open 2022;12:e059441. doi:10.1136/ bmjopen-2021-059441.

Do LG, Song YH, Du M, Spencer AJ, Ha DH. Socioecological determinants of child oral healt ~~h~~ A scoping review. Community Dent Oral Epidemiol. 2022;00:1-13. doi:10.1111/cdoe.12819.

Eskandari F, Kumah E.A, Azevedo L, Stephenson J, John S, Zohoori FV. Fluoride exposure in community prevention programmes for oral health using nail clippings and spot urine samples: a systematic review and meta-analysis 10.1159/000533721.

Khudanov BO, Gulyamov DT, Tuygunov NN, Turaev KI, Abdurahimova FA, Schulte AG. National survey on caries prevalence in 12-year-old children In Uzbekistan (Orca congress, June 2022, Cagliari, Sardinia, Italy).

Kumah AE, Eskandari F, Azevedo LB, John S, Zohoori FV. Mapping the evidence for monitoring fluoride exposure in community prevention programmes for oral health using nail clippings and spot urine samples: a scoping review BMC Oral Health 2022;22:575 https://doi.org/10.1186/s12903-022-02615-2.

Sava-Rosianu R, Campus G, Dumitrescu R, Maricutoiu L, Galuscan A. Oral health behaviours, living conditions and caries experience of 6-year-olds in Romania (Orca congress, June 22, Cagliari, Sardinia, Italy).

Thwin KM, Ogawa H, Phantumvanit P, Miyazaki H, Songpaisan Y, Maung K. Dental caries in the Myanmar population: Findings from the first national oral health survey in 2016 2017. Community Dent Oral Epidemiol. 2023;00:1-10. doi:10.1111/cdoe.12896.

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Achievements and performance (continued)

Publications (continued)

Turton B, Sullivan S, Chher T, Hak S, Sokal-Gutierrez K, Wieringa F, Singh A. Caries Incidence Is Associated with Wasting among Cambodian Children. 2023;102(2):157-163. doi:10.1177/00220345221126713. Epub 2022 Oct 10.

Plans for future periods

undertaking a fundamental review of its mission, and the strategies and steps that it will take to achieve it. Stakeholder / external consultation will be an important aspect of this process.

A call for grant applications was made and the response has been most encouraging. It is likely that a significant number of grants will be awarded over the coming months. This will represent a substantial funding commitment for the charity, and we will work closely with

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 -year funding agreement is under consideration.

We are proud to have supported other important initiatives that are of global significance. These include the Lancet Commission and the consortium on oral health birth cohort studies, as well as the work being carried out on digital oral health and upstream measures. We aim to build on these successes and will look to establish other partnerships that could help extend the reach of the charity and further its objects.

Financial review

Results for the year

The statement of financial activities shows an increase in unrestricted funds during the year of £355,545 (2022 increase of £108,413) with total income amounting to £2,012,850 (2022 £1,532,856) and expenditure totalling £1,657,305 (2022 £1,424,443).

Total income comprises £1,690,972 (2022 £1,298,431) of income from commercial activities and £321,878 (2022

Total expenditure comprises expenditure on charitable activities of £913,208 (2022 £786,674) and cost of raising funds of £744,097 (2022 £637,769).

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Financial review (continued)

Results for the year (continued)

The revaluation of the listed investment portfolio resulted in an unrealised loss of £363,650 (2022 £360,487 gain). The revaluation of the investment property held in the £975,000 loss).

The results of the Foundation's subsidiary undertaking, Borrow Investments Limited contributed net profits to the group excluding investment gains of £734,544 (2022 £511,887) on a turnover of £1,392,032 (2022 £1,274,491).

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.

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 2023, the group's investments decreased in value by £1,583,679, from £28,638,365 to £27,054,686 in total. This decrease in value includes a decrease of £364,306 (2022 £366,637 increase) in the unrealised value of the group's long-term investment portfolio for the year, and an unrealised loss of £1,000,000 (2022 £975,000 loss) on the revaluation of the investment property.

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Financial review (continued)

Investment performance (continued)

The decrease in the capital value of the portfolio was triggered primarily by the upswing in inflation and increases in interest rates made by central authorities to counter this. There were further economic headwinds faced, including geopolitical tensions and the threat of recession in the US, as well as a developing crisis in bond markets caused by rising interest rates. On a positive note, the income yield from the portfolio grew considerably and the income target for the year was surpassed. The overall performance was considered satisfactory, when compared to market indices.

Since year-end, global markets have remained unstable with continued uncertainty over inflation, the possibility of recession and geopolitical issues. The ongoing risk to capital value is recognised by the trustees and their advisers and is a key factor in the decisions made around portfolio construction.

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 2020 to 31 March 2023 this core target was achieved (as it had been in the prior three-year period ending 31 March 2022).

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 of 15 months, ending 31 March 2025. Consideration has been given to all available information about the future.

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, inflation, interest rates and energy costs will remain high. It has also been assumed that the anticipated sale of land at Hazleton Farm, by the subsidiary company, will not proceed to completion and there will be abortive costs.

The Borrow Foundation 21

Trustees 31 March 2023

Financial review (continued)

Going concern assessment (continued)

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, over a period of 36 months. A planning agreement was completed, and planning permission subsequently granted in December 2021. The principal terms for the sale of the land were agreed in July 2023 and the contract negotiations are now at an advanced stage.

Reserves policy

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

The trustees have set aside £522,151 (2022 £458,068) 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 £27,836,105 (2022 £29,425,972), 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 surplus of £458,390 (2022 a deficit of £59,289).

The Borrow Foundation 22

Trustees 31 March 2023

Fundraising

The charitable company and the group does not actively solicit donations from the public and is therefore not registered with the Fundraising Regulator and does not subscribe to any fund-raising codes of practice. Should donations from individuals be received, the group would aim to protect personal data and would never sell data or swap data with other organisations and undertake to react to and investigate any complaints regarding fundraising activities and to learn from them and improve the service.

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:

The Borrow Foundation 23

31 March 2023

Trustees

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:

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

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

Trustee

The Borrow Foundation 24

31 March 2023

Opinion

year ended 31 March 2023 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 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 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

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 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 25

31 March 2023

Other information

The other information comprises the information included in the annual report and financial 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:

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 misstat . 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 Borrow Foundation 26

31 March 2023

Responsibilities of Trustees

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.

and the charitable parent 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.

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 gh 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 Borrow Foundation 27

31 March 2023

(continued)

statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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;

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.

report.

The Borrow Foundation 28

31 March 2023

Use of our report

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: 15 December 2023

The Borrow Foundation 29

Group statement of financial activities Year to 31 March 2023 (including an income and expenditure account)

Notes Unrestricted Unrestricted Unrestricted Total funds
2023
£		 Unrestricted Unrestricted Total funds
2022
£
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 (losses)/
gains
13
Revaluation of investment
property
11
Deferred tax on revaluation
14
Net (expenditure)
7
Net movement in funds
for the year
15
Total funds brought forward
Total funds carried
forward
15		 1,690,972
321,878		 1,690,972
321,878		 1,298,431
234,425		 1,298,431
234,425
2,012,850
695,140
48,957		 2,012,850
695,140
48,957		 1,532,856
591,509
46,260		 1,532,856
591,509
46,260
744,097
913,208		 744,097
913,208		 637,769
786,674		 637,769
786,674
1,657,305 (363,650)
(1,000,000)
190,000		 1,657,305
(363,650)
(1,000,000)
190,000		 1,424,443 360,487
(975,000)
185,250		 1,424,443
360,487
(975,000)
185,250
355,545 (1,173,650) (818,105) 108,413 (429,263) (320,850)
355,545
13,354,545		 (1,173,650)
14,400,441		 (818,105)
27,754,986		 108,413
13,246,132		 (429,263)
14,829,704		 (320,850)
28,075,836
13,710,090 13,226,791 26,936,881 13,354,545 14,400,441 27,754,986

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 30

Group balance sheet As at 31 March 2023

Notes 2023
£		 2023
£		 2022
£		 2022
£
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		 407,312
1,371,631		 781,419
27,054,686		 405,014
772,128		 787,607
28,638,365
27,836,105
1,220,963		 29,425,972
644,354
1,778,943
(557,980)		 1,177,142
(532,788)
29,057,068
(2,120,187)		 30,070,326
(2,315,340)
26,936,881 27,754,986
13,710,090
13,226,791		 13,354,545
14,400,441
26,936,881 27,754,986

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

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

and signed on its behalf by

Trustee

Company registration number 03303900 (England and Wales)

The Borrow Foundation 31

Charitable company balance sheet As at 31 March 2023

2023 2023 2022 2022
Notes £ £ £ £
Fixed assets
Tangible assets 10 480,743 485,836
Investments 11 15,529,222 16,112,901
16,009,965 16,598,737
Current assets
Debtors 12
. Amounts due after one year 1,900,000 1,900,000
. Amounts due within one year 94,536 66,760
Cash at bank and in hand 446,441 193,010
540,977 259,770
Creditors: amounts falling due
within one year 13 (38,393) (113,400)
Net current assets 502,584 146,370
Total assets less current
liabilities 18,412,549 18,645,107
Creditors: amounts falling dueafter
more than one year 14 (3,990) (3,990)
18,408,559 18,641,117
The funds of the charity
General funds 15 14,402,003 14,270,911
Revaluation reserves 15 4,006,556 4,370,206
Total funds 15 18,408,559 18,641,117

Approved and authorised for issue by the Board of Trustees on on its behalf by A J Rugg-Gunn

and signed

Trustee

Company registration number 03303900 (England and Wales)

The Borrow Foundation 32

Group statement of cash flows 31 March 2023

Notes
2023
£		 2022
£
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 2022
B
Cash and cash equivalents at 31 March 2023
B
59,647		 (98,090)
321,866
(2,039)
271,244
(51,215)		 234,425
(3,974)
779,501
(883,253)
539,856 126,699
599,503

772,128		 28,609
743,519

1,371,631		 772,128

Notes to the statement of cash flows for the year to 31 March 2023.

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

2023
£		 2022
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Losses on investments
Investment income
(Increase) in debtors
Increase (decrease) in creditors
Net cash used in operating activities		 (1,008,105)
8,237
1,363,650
(321,878)
(2,298)
20,041		 (320,850)
8,311
614,513
(234,425)
(5,155)
(160,484)
59,647 (98,090)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2023
£		 2022
£
Cash at bank and in hand
Total cash and cash equivalents		 1,371,631 772,128
1,371,631 772,128

C Analysis of changes in net debt

At 1
April
2022
£’000		 Cash
flows
£’000		 At 31
March
2023
£’000
Cash and cash equivalents
Total		 772,128 599,503 1,371,631
772,128 599,503 1,371,631

The Borrow Foundation 33

Principal accounting policies 31 March 2023

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 2023.

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;

The Borrow Foundation 34

Principal accounting policies 31 March 2023

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 2024, 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 35

Principal accounting policies 31 March 2023

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 36

Principal accounting policies 31 March 2023

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 37

Principal accounting policies 31 March 2023

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 38

Principal accounting policies 31 March 2023

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 39

Notes to the financial statements Year to 31 March 2023

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.

2023
£		 2022
£
Rental income generated from UK operating leases
Rental income (Foundation)
Other income		 1,296,630
23,940
370,402
1,690,972		 1,180,440
23,940
94,051
1,298,431

2 Income from investments

Income from investments
2023
£		 2022
£
Income from fixed asset investments
Bank interest received		 248,463
73,415
321,878		 211,739
22,686
234,425

3 Expenditure on raising funds: professional fees

Expenditure on raising funds: professional fees
2023
£		 2022
£
Investment advisors and investment managers
Surveyors and other property related advice		 43,786
5,171
48,957		 45,001
1,259
46,260

4 Expenditure on charitable activities

Expenditure on charitable activities
2023
£		 2022
£
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)		 536,979
5,159
9,330
221,885
91,137
7,133
6,903
12,869
1,173
20,640		 404,932
16,783
7,406
251,540
67,913
7,127
438
14,825
1,070
14,640
913,208 786,674

The Borrow Foundation 40

Notes to the financial statements Year to 31 March 2023

5 Grants payable

----- Start of picture text -----
2023 2022
£ £
Population-based programmes & research
University of Adelaide, Australia 577
University of Queensland, Australia 8,194
MOH Bhutan 14,302 39,379
University of Puthisastra, Cambodia 22,334 43,787
INTA / JUNAEB Chile 43,026
AMSPO Montpellier, France 15,178
University of Montpelier, France 10,331
University of Heidelberg, Germany 10,896
Gadjah Mada University, Indonesia 24,134
Lithuania Dental Chamber 30,903
ACTA Netherlands 41,126 40,160
CBSHI Palestine (3,080)
National Dental Centre, Singapore 64,726 29,152
University of Bern, Switzerland 8,146 12,616
MOPH Thailand 10,379 19,964
Leeds Institute, UK 12,850
Teesside University, UK 98,952 3,430
University College London 10,000
University of Glasgow, UK 11,750 19,948
University of Newcastle, UK 53,000 55,000
University of Plymouth, UK 39,000
Tashkent Dental Institute, Uzbekistan 12,123
MOH Vanuatu 12,617
472,888 342,012
Support for dental associations/organisations
12,092
British Association for the Study of Community Dentistry 600
British Fluoridation Society 10,000 10,000
International Association of Dental Research 3,288 2,944
13,888 25,036
World Health Organisation collaboration 37,183 28,695
Grants towards training, travel, conference attendance and sponsorship
of Dental Association 13,020 9,189
Total grants payable (notes 4 and 17) 536,979 404,932
6 Governance costs
2023 2022
£ £
Accountancy and audit 14,200 14,640
Management meetings 6,440
20,640 14,640
----- End of picture text -----

The Borrow Foundation 41

Notes to the financial statements Year to 31 March 2023

7 Net income (expenditure) for the year

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

2023
£		 2022
£
Depreciation of owned fixed assets
Operating lease rentals
land and buildings		 8,237
29,200
57,500		 8,311
25,510
57,500

b. Analysis of auditor s remuneration

Analysis of auditor
s remuneration
2023
£		 2022
£
Audit fees (audit of the Foundation and subsidiary)
. Current year
Other services (taxation)		 25,200
4,000
29,200		 22,360
3,150
25,510

c. Employees

The average number of employees was:

----- Start of picture text -----
2023 2022
No. No.
The Borrow Foundation 5 7
Borrow Investments Limited 5 5
10 12
2023 2022
£ £
Staff costs for the above persons:
. Wages and salaries 348,127 361,332
. Social security costs 37,738 36,880
. Other pension costs 13,149 19,883
399,014 418,095
----- 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 42

Notes to the financial statements Year to 31 March 2023

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
2023
£		 Borrow
Investments
2023
£		 Total
2023
£		 Borrow
Foundation
2022
£		 Borrow
Investments
2022
£		 Total
2022
£
Remuneration
Company contributions to a money
purchase pension scheme		 38,664
3,480
42,144		 79,655
7,169
86,824		 118,319
10,649
128,968		 38,561
3,470
42,031		 74,800
6,732
81,532		 113,361
10,202
123,563

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 £143,500 (2022 £136,767).

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 (2022 1).

Trustee expenses amounted to £nil (2022 £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 expenditure for the year dealt with in the financial statements of the parent undertaking was £232,562 (2022 net income of £643,867).

The Borrow Foundation 43

Notes to the financial statements Year to 31 March 2023

10 Tangible fixed assets

Group

Group
Freehold
land and
buildings
£		 Building
improve-
ments
£		 Plant,
equipment,
fixtures
and
fittings
£		 Total
£
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book values
At 31 March 2023
At 31 March 2022		 1,082,009 65,047 108,212
2,039		 1,255,268
2,039
1,082,009 65,047 110,251 1,257,307
303,683
4,641		 62,773
506		 101,195
3,090		 467,651
8,237
308,324 63,279 104,285 475,888
773,685
778,326		 1,768
2,271		 5,966
7,010		 781,419
787,607

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 principal terms for the sale of the land were agreed in July 2023 and the contract negotiations are now at an advanced stage.

Included within freehold land and buildings is land valued at £647,967 (2022 £647,967) which is not being depreciated. The sale of 0.4 acres of land was completed in August 2022, for sale proceeds of £275,000. As information relating to the original cost of the land sold is not readily available and the proportion of the land sold is deemed be immaterial in comparison to the holding prior to the sale (287 acres), a disposal has not been recognised in the above tangible fixed asset note.

The Borrow Foundation 44

Notes to the financial statements Year to 31 March 2023

10 Tangible fixed assets (continued)

Charity

Charity
Freehold
land and
buildings
£		 Building
improve-
ments
£		 Plant,
equipment,
fixtures
and
fittings
£		 Total
£
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book values
At 31 March 2023
At 31 March 2022		 674,356 65,047 61,566
2,039		 800,969
2,039
674,356 65,047 63,605 803,008
193,969
4,641		 62,774
506		 58,390
1,985		 315,133
7,132
198,610 63,280 60,375 322,265
475,746
480,387		 1,767
2,273		 3,230
3,176		 480,743
485,836

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 (2022 £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 45

Notes to the financial statements Year to 31 March 2023

11 Investments

Group

Listed
invest-
ments
£		 Investment
property
£		 Cash
£		 Total
£
At 1 April 2022
Additions
Disposals (proceeds £71,244; realised
gain £656)
Net losses on revaluation (note 15)
At 31 March 2023
Investment assets held in the UK
Investment assets held overseas		 10,504,782
1,959
(70,588)
(364,306)		 14,000,000
(1,000,000)		 4,133,583
49,256
(200,000)		 28,638,365
51,215
(270,588)
(1,364,306)
10,071,847 13,000,000 3,982,839 27,054,686
9,888,815
183,032
10,071,847		 13,000,000
13,000,000		 3,982,839
3,982,839		 26,871,654
183,032
27,054,686

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 £6,126,192 (2022 - £6,284,949).

At 31 March, 2023, the following individual investment holdings were considered material in the context of the total listed investment portfolio:

Market
value
£		 % of total
listed
investment
19.5
6.4
5.4
Schroder Managed Balanced Institutional
BlackRock Charities UK Equity Fund A (Inc)
Invesco Global Targeted Returns Class Z (Acc)		 1,959,300
643,118
541,976

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 opinion after consultation with their chartered surveyor, the open market value of the property for existing use as at 31 March 2023 is £13,000,000. The historical cost of this property was £1,900,000.

The Borrow Foundation 46

Notes to the financial statements Year to 31 March 2023

11 Investments (continued)

Charity

Charity
Listed
investments
£		 Cash
£		 Shares
in
subsidiary
undertaking
£		 Total
£
At 1 April 2022
Additions
Disposals (proceeds £71,244; realised
gain £656)
Net losses on revaluation (note 15)
At 31 March 2023
Investment assets held in the UK
Investment assets held overseas		 10,504,782
1,959

(70,588)
(364,306)		 4,133,583
49,256
(200,000)		 1,474,536 16,112,901
51,215
(270,588)
(364,306)
10,071,847 3,982,839 1,474,536 15,529,222
9,888,815
183,032
10,071,847		 3,982,839
3,982,839		 1,474,536
1,474,536		 15,346,190
183,032
15,529,222

Listed investments

The historical cost of the listed investments to the charitable company was £6,126,192 (2022 £6,284,949).

At 31 March 2023, 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 Charities UK Equity Fund A (Inc)
Invesco Global Targeted Returns Class Z (Acc)		 1,959,300
643,118
541,976		 19.5
6.4
5.4

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 47

Notes to the financial statements Year to 31 March 2023

11 Investments (continued)

Shares in subsidiary undertaking (continued)

A summary of the results of the subsidiary undertaking to 31 March 2023 is shown below:

----- Start of picture text -----
2023 2022
£ £
Turnover 1,392,032 1,274,491
Cost of sales (520,021) (438,287)
Gross profit 872,011 836,204
Administrative expenses (217,580) (192,374)
Operating profit 654,431 643,830
Interest receivable 11,249 4,195
Interest payable and similar charges (81,738) (41,665)
Gain on disposal of tangible fixed assets 275,000
Profit on ordinary activities before Gift Aid 858,942 606,360
Gift Aid (note 20) (634,489) (781,327)
Surplus (deficit) on ordinary activities before revaluation of investment
property 224,453 (174,967)
Unrealised (loss) gain on revaluation of investment (1,000,000) (975,000)
Deferred tax on revaluation of investment property 190,000 185,250
(Loss) profit for the financial year (585,547) (964,717)
Accumulated surplus at 1 April 11,196,774 12,161,491
Total comprehensive (expenditure) income (585,547) (964,717)
Accumulated surplus at 31 March 10,611,227 11,196,774
----- End of picture text -----

----- Start of picture text -----
2023 2022
£ £
The aggregate of the assets and liabilities was:
. Assets 15,147,011 15,864,691
. Liabilities (4,535,784) (4,667,917)
10,611,227 11,196,774
Represented by:
. 30,002 ordinary shares at £1 each 30,002 30,002
. Investment revaluation reserve 9,220,235 10,030,235
. Profit and loss account 1,360,990 1,136,537
10,611,227 11,196,774
----- End of picture text -----

The Borrow Foundation 48

Notes to the financial statements Year to 31 March 2023

12 Debtors

----- Start of picture text -----
Group Charity
2023 2022 2023 2022
£ £ £ £
Trade debtors 197,370 191,895 3,990
Amounts owed from subsidiary undertaking
(note 20) 7,679
Loan to subsidiary undertaking (note 20) 1,900,000 1,900,000
Prepayments and accrued income 209,942 213,119 82,867 66,760
407,312 405,014 1,994,536 1,966,760
----- 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
2023 2022 2023 2022
£ £ £ £
Trade creditors 22,540 22,413 14,096 6,976
Amounts owed to subsidiary undertaking
(note 20) 37,209
Taxation and social security 10,536 6,885
Accruals and deferred income 353,527 370,046 23,754 62,330
Other creditors 181,913 129,793 543
557,980 532,788 38,393 113,400
----- End of picture text -----

Included within Group accruals and deferred income is £271,957 (2022 - £258,625) 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:

2023
£		 2022
£
At 1 April 2022
Released from prior year
Deferred in current year
At 31 March 2023		 258,625
(258,625)
271,957
271,957		 250,061
(250,061)
258,625
258,625

The Borrow Foundation 49

Notes to the financial statements Year to 31 March 2023

14. Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
Group 2023
£		 2022
£
Rent deposits
Deferred tax liability
Charity		 240,422
1,879,765
2,120,187
2023
£		 245,575
2,069,765
2,315,340
2022
£
Rent deposits 3,990 3,990

The deferred tax liability has arisen from revaluing the investment property held by the The movement on the deferred tax liability is as follows:

2023
£		 2022
£
At 1 April
Movement in the year
At 31 March		 2,069,765
(190,000)
1,879,765		 2,255,015
(185,250)
2,069,765

15 Statement of movements on reserves

Group

----- Start of picture text -----
Revaluation reserves
Unrestricted Investment
funds property Other Total
£ £ £ £
At 1 April 2022 13,354,545 10,030,235 4,370,206 27,754,986
Surplus for the year 355,545 355,545
Unrealised gains (note 11) (364,306) (364,306)
Realised losses 656 656
Revaluation of investment property (1,000,000) (1,000,000)
Deferred tax 190,000 190,000
At 31 March 2023 13,710,090 9,220,235 4,006,556 26,936,881
----- End of picture text -----

Unrestricted
funds
£		 Revaluation reserves Revaluation reserves Total
£
Investment
property
£		 Other
£
At 1 April 2021
Surplus for the year
Unrealised gains (note 11)
Realised losses
Revaluation of investment property
Deferred tax
At 31 March 2022		 13,246,132
108,413
13,354,545		 10,819,985
(975,000)
185,250
10,030,235		 4,009,719
366,637
(6,150)
4,370,206		 28,075,836
108,413
366,637
(6,150)
(975,000)
185,250
27,754,986

The Borrow Foundation 50

Notes to the financial statements Year to 31 March 2023

15 Statement of movements on reserves (continued)

Charity

----- Start of picture text -----
Unrestricted Revaluation
funds reserve Total
£ £ £
At 1 April 2022 14,270,911 4,370,206 18,641,117
Surplus for the year (excluding realised losses) 131,092 131,092
Unrealised gains (note 11) (364,306) (364,306)
Realised gain (note 11) 656 656
At 31 March 2023 14,402,003 4,006,556 18,408,559
Unrestricted Revaluation
funds reserve Total
£ £ £
At 1 April 2021 13,987,531 4,009,719 17,997,250
Surplus for the year (excluding realised losses) 283,380 283,380
Unrealised gains (note 11) 366,637 366,637
Realised losses (note 11) (6,150) (6,150)
At 31 March 2022 14,270,911 4,370,206 18,641,117
----- End of picture text -----

16 Analysis of net assets between funds

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

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:

2023
£
Grant commitments at 1 April 2022
Charged to the statement of financial activities in the year (note 5)
New commitments arising
Grant commitments at 31 March 2023
Payable within one year
Payable after more than one year		 458,068
(563,979)
628,062
522,151
418,099
104,052
522,151

The Borrow Foundation 51

Notes to the financial statements Year to 31 March 2023

17 Future commitments grants payable (continued)

----- Start of picture text -----
Year Year Year
ended 31 ended 31 ended 31
March March March
2024 2025 2026 Total
£ £ £ £
Population-based projects & Clinical,
laboratory and population research
Univ. of Puthisastra, Cambodia 1,454 1,454
Univ. Iberoamericana, Dominican Rep. 7,081 7,081
Univ. Gadyah Mada Yogyakarta, Indoensia 9,685 13,951 10,511 34,147
Lithuania Dental Chamber, Lithuania 17,610 7,925 6,079 31,614
Ministry of Health, Vanuatu 5,016 407 5,423
Kamuzu University of Health Sciences,
Malawi 49,998 49,998
Academic Centre for Dentistry, Netherlands 20,251 2,642 22,893
University of Bern, Switzerland 4,420 796 5,216
University of Glasgow, UK 7,750 15,000 2,000 24,750
Teesside University, UK 93,000 5,051 98,051
University College London, UK 1,500 1,500
University of Leeds (project in Sudan) 1,500 1,500
University of Newcastle, UK 2,000 2,000
University of Plymouth, UK 22,500 37,500 1,000 61,000
243,765 83,272 19,590 346,627
Dental Associations / Meetings
BASCD, UK 3,800 3,800
British Fluoridation Society 25,000 25,000
GLOBICS Nat. Dental Centre, Singapore 24,574 1,189 25,762
University College London (Lancet
Commission, UK 42,000 42,000
University of Amsterdam (ORCA),
Netherlands 6,582 6,582
University of Montpellier, France 1,541 1,541
103,497 1,189 104,686
WHO Collaboration
WHO Global Oral Health Programme 70,838 70,838
Total 418,100 84,461 19,590 522,151
----- End of picture text -----

The Borrow Foundation 52

Notes to the financial statements Year to 31 March 2023

17 Future commitments grants payable (continued)

----- 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 -----

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
2023 2022
£ £
Operating leases payments:
. within one year 57,500 57,500
. within two to five years 287,500 287,500
. after more than 5 years 2,621,042 2,678,542
2,966,042 3,023,542
----- End of picture text -----

The Borrow Foundation 53

Notes to the financial statements Year to 31 March 2023

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 £13,149 (2022 £19,883). There were contributions of £nil (2022 £3,470) outstanding at the year end.

20 Related party transactions

a. Transactions with subsidiary undertaking

----- Start of picture text -----
2023 2022
£ £
----- End of picture text -----

Gift Aid paid to the Foundation (note 11)
Interest payable to the Foundation
Management fees charged by the Foundation
Loan due from Borrow Investments Limited at the balance sheet date
(note 12)
Due from (to) Borrow Investments Limited at the balance sheet date
(note 13)		 634,489
81,738
42,659
1,900,000
7,679		 781,327
41,665
39,152
1,900,000
(37,209)

b. Transactions with trustees

There were no further related party transactions in the year (2022: none).

21 Controlling party

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

The Borrow Foundation 54

Charitable company statement of financial activities Year to 31 March 2023 Not for publication

----- Start of picture text -----
2023 2023 2022 2022
£ £ £ £
Income from:
Rental income 23,940 23,940
Income from Borrow Investments Limited
including Gift Aid 758,689 862,144
Investment income 310,626 230,230
Total income 1,093,255 1,116,314
Expenditure on:
Raising funds
. Costs re investment advisors and
investment managers 43,786 45,001
. Surveyors and other property related
advice 5,171 1,259
(48,957) (46,260)
Charitable activities
. Grants 536,979 404,932
. Information and education 5,159 16,783
. Subscriptions and media costs 9,330 7,406
. Support costs:
.. Staff costs 221,885 251,540
.. Office costs 91,137 67,913
.. Depreciation 7,133 7,127
.. Legal and professional fees 12,869 14,825
.. Travel expenses 6,903 438
.. Bank charges/foreign currency gains and
losses 1,173 1,070
. Accountancy and audit 20,640 14,640
(913,208) (786,674)
Total expenditure (962,165) (832,934)
Net income for the year before
investment gains 131,090 283,380
Net investment (losses) gains (363,650) 360,487
Net income (232,560) 643,867
----- End of picture text -----

The Borrow Foundation 55