## **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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**Trustees** 31 March 2023
## **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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**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
- The wider engagement in prevention by health professionals and health authorities;
- Government policies and strategies that promote oral disease prevention as an integral part of wider health promotion programmes;
- The implementation and evaluation of sustainable population-based preventive programmes; and
- Further research that will help strengthen the scientific basis for prevention.
Our priorities include:
- Population-based programmes that are targeted at the areas of greatest need and will help reduce inequalities, within and between countries;
- The use of fluorides in the prevention of dental caries, including their use in milk and milk products;
- The prevention of oral disease through the improvement of diet and nutrition;
- The use of kindergarten and school settings to promote oral health;
- Early childhood caries (ECC);
- Strengthening the design of studies for the evaluation of community-based programmes;
- Research into the above; and
- Training and education in population oral health.
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## **Objectives, activities and public benefit** (continued)
## _**Mission and priorities** (continued)_
In particular we provide support to:
- Government agencies for the implementation and evaluation of sustainable population-based prevention programmes;
- Academic institutes to undertake research;
- The World Health Organization to further its essential work in oral health promotion and integrated disease prevention; and
- Dental associations / organisations that promote dental public health and oral health research.
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:
- develop ambitious national responses to promote oral health
- reduce oral diseases, other oral conditions and oral health inequalities
- strengthen efforts to address oral diseases and conditions as part of universal health coverage
- consider the development of targets and indicators, based on national and subnational contexts, building on WHO guidance, to prioritise efforts and assess the progress made by 2030.
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:
- The Ministry of Health, **Vanuatu,** to implement a pilot training programme for registered nursing professionals and nurse trainees in the Vanuatu College of Nursing Education and National Health Trainers. Many children in the country have untreated caries before starting kindergarten, clearly indicating the need to address early childhood caries (ECC) in 0-4-year-olds. However, the current oral health workforce lacks the capacity to address ECC, so upskilling of registered nurses and other nondental health workers who already provide medical services to this group is seen as key to reducing ECC.
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## **Achievements and performance** (continued)
## _**Population-based oral health** (continued)_
## _New projects (continued)_
- The University of Birmingham, **UK,** for a study that will consider the barriers to, and facilitators for, developing a mid-level dental care workforce to work within primary care in low- and middle-income countries (LMICs). The work will be conducted in Iran, where dental care as in many other LMICS is excluded from primary care and often delivered by a monopoly of private dentists, depriving large groups of the population from accessing dental care. Using a mixed methods approach, this study will address the need to create a mid-level dental workforce to deliver dental care within primary care settings.
- **Romania,** for a SmilebrightRo
- programme is aligned to the WHO global oral health strategy, with the emphasis being firmly placed on prevention. It will be piloted in nursery schools across six cities, and their surrounding areas, over a period of two years. It will be delivered by the University, with the support of the Ministries of Health and Education, in collaboration with the respective medical universities in the six participating cities.
## _Ongoing projects_
We have continued to provide support to:
- The University of Bern, **Switzerland,** for a study that seeks to assess and understand how the beliefs of immigrant parents can shape the oral health of their children. A parental locus of control oral health scale will be developed and used with three groups: families with a European background, immigrant families from high-income countries outside the EU, and those from lower income countries outside the EU. The findings will be correlated with socioeconomic and oral health data. The outcomes will provide vital information for the development of policies and strategies aimed at reducing inequalities in oral health in immigrant children.
- Newcastle University, **UK,** to construct a cost-benefit framework for community water fluoridation in England, using local area data. As the political environment changes, it is important that public valuations of community water fluoridation are understood, and that comprehensive economic evaluations are available to inform decisions on new schemes.
- The University of Puthisastra, **Cambodia,** to develop a national oral heath strategy. The work is being carried out under the auspices of the Ministry of Health and will reflect the six principles of the WHO global oral health strategy. An important aspect of the project will be to build a multisectoral oral health advocacy network that could play an important role in the formulation and implementation of the strategy.
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## **Achievements and performance** (continued)
## _**Population-based oral health** (continued)_
## _Ongoing projects (continued)_
- The University of Glasgow, **UK,** for three important studies linked to Childsmile, a national programme funded by the Scottish government and designed to improve the oral health of children in Scotland and reduce inequalities both in dental health and access to dental services.
- The first is a data linkage cohort study, which aims to explore early life child-, familyand community-level influences on early childhood caries, the underlying inequalities, and the impact of the Childsmile programme on behaviour change, improving oral health and reducing inequalities. It involves three cohorts of children, born in 2002 / 03, 2004 / 5, and 2010 / 11: around 11,000 subjects in total.
- The second study has two aims. The first is to establish a clear consensus, from a panel of 20 international independent experts, on fluoride-based interventions which reduce early childhood caries in pre-school and other early years settings. The second is to benchmark programmes implemented in south-east Europe against the WHO guidance on the prevention and management of ECC.
- The third study will assess the reach and impact of the Childsmile programme on children living in the most deprived communities and on vulnerable groups of children attendance levels.
## 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)_
- Academic Centre for Dentistry Amsterdam, **Netherlands** , where support has been provided for a project that aims to improve the oral health of children aged 0 4½ years from low socio-economic families. An insight will be gained from these families and their stakeholders on the challenges faced in improving the oral health of their children. The findings will be used to develop a participatory action research approach towards implementing and evaluating appropriate interventions to improve oral health.
- The Kamuzu University of Health Sciences, **Malawi** (KUHeS), towards the development of a child oral health improvement strategy forming part of a wider changes towards improving oral healthcare in the country. The study involves close collaboration between KUHeS, the Malawi Ministry of Health, and the University of Glasgow, and is being delivered in three phases: a national child oral health survey, a situation analysis to identify potential models for the prevention of oral disease in children, and workshops for national stakeholders to consider how these findings might be translated into strategy. Whilst good progress had already been made, COVID-19 had an adverse impact on the scheme, necessitating a change in the sequence of the planned activities. The project term has been extended and the work is due to be completed in autumn 2024.
- The University of Leeds, **UK** , for work being carried in Sudan under a PhD project which focuses on improving the diagnosis of the more common developmental defects of enamel: dental fluorosis (DF), molar incisor hypoplasia(MIH) and amelogenesis imperfecta. This work is near to completion, and it is anticipated that the final report will be submitted in the first quarter of 2024.
- The University of Puthisastra, **Cambodia,** for secondary data analysis carried out in respect of a longitudinal oral health survey that investigated the ways in which dental caries experience is linked to stunting and malnutrition. The analysis confirmed the association between early childhood caries and wasting malnutrition.
- The Institute of Nutrition and Food Technology, University of Chile, **Chile** , for essential technical support provided for the ongoing milk fluoridation scheme which is targeted at rural schools across the country. The scheme has been long established as an integral part of a national School Food Assistance Programme operated by the Junta Nacional de Auxilio Escolar y Becas, an agency of the Ministry of Education that seeks to achieve equality for all schoolchildren.
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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.
The Borrow Foundation **18**
**Trustees** 31 March 2023
## **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).
The Borrow Foundation **19**
**Trustees** 31 March 2023
## **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.
The Borrow Foundation **20**
**Trustees** 31 March 2023
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102);
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company or the group will continue in business; and
The Borrow Foundation **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:
- so far as the trustee is aware, there is no relevant audit information of which the
- the trustee has taken all the steps that he or she ought to have taken as a trustee in order to make himself or herself aware of any relevant audit information and to
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:
- affairs as at 31 March 2023 ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in 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:
- purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and for the purposes of company law,
- has been prepared in accordance with applicable legal requirements.
- for the purposes of company law,
## **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 financial statements are not in agreement with the accounting records and returns; or
- made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companie preparing the T
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 engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the charitable parent company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102)), Charities Act 2011, the Companies Act 2006, and those that relate to data protection (General Data Protection Regulation); and
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
The Borrow Foundation **27**
31 March 2023
(continued)
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of key management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
- To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested and reviewed journal entries to identify unusual transactions;
- tested the authorisation of expenditure, ensuring expenditure was approved in line with
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
- reviewing the minutes of meetings of those charged with governance; and
- enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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;
- estimating the useful economic life of tangible fixed assets;
- estimating the value of any bad debt provisions; and
- the valuation of the investment property.
The Borrow Foundation **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**