MARLBOROUGH COLLEGE FOUNDATION
ACCOUNTS
FOR THE YEAR ENDED 30 JUNE 2022
Haysmacintyre LLP Chartered Accountants Registered Auditors
Charity Number: 1061798
MARLBOROUGH COLLEGE FOUNDATION Page 1
REPORT OF THE TRUSTEES
The Foundation is registered with the Charity Commission number 1061798.
TRUSTEES
The Trustees who served during the year were: Professor Sir J Bell GBE (resigned 1 February 2022) S M W Bishop E Elliott G I Henderson CBE L Moelwyn-Hughes T Martin-Jenkins (appointed as Chairman 1 February 2022) P Coleman (appointed 19 March 2022) M Birkin (appointed 24 May 2022)
PROFESSIONAL ADVISERS
| Address: | Marlborough College Foundation |
|---|---|
| Marlborough College | |
| Wiltshire | |
| SN8 1PA | |
| Bankers: | Lloyds Bank |
| Barnwood 1 | |
| Barnett Way | |
| Gloucester | |
| GL4 3RL | |
| Solicitors: | Farrer & Co |
| 66 Lincoln’s Inn Fields | |
| London | |
| WC2A 3LH | |
| Auditors: | Haysmacintyre LLP |
| 10 Queen Street Place | |
| London | |
| EC4R 1AG | |
| Investment Advisers: | Rathbones |
| 1 Curzon Street | |
| London | |
| W1J 5FB |
MARLBOROUGH COLLEGE FOUNDATION
Page 2
REPORT OF THE TRUSTEES (Continued)
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 UK and Republic of Ireland (FRS 102) (second edition effective 1 January 2019) - (Charities SORP (FRS 102)), applicable law and the charity’s governing document.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisation
The Trustees determine the general policy of the Foundation.
Trustee Recruitment, Induction and Training
Existing Trustees have the power to appoint new Trustees. New trustees are made aware of their responsibilities and provided with a new trustee handbook, the Conflict of Interest Policy, the most recent accounts and any relevant Charity Commission publications. Trustees are regularly updated on charity sector issues through selective reading material provided by professional advisers. In addition, the trustees are alerted to key guidance on the Charity Commission website and any issues regarding the independent schools sector. The Foundation does not employ any staff as the key administrative functions for the Foundation are provided by the staff at Marlborough College and therefore the Trustees are considered to be the key management personnel of the Foundation. No Trustee received remuneration in the current or prior year. All trustees complete a ‘Declaration for Fit and Proper Persons’ form and an annual ‘Declaration of Interests’ form.
Risk Review
Risks to which the Foundation is exposed, have been reviewed. This is an ongoing process and the Trustees will review and update the risk management process at least annually. Through the risk management process controls have been established to manage the risks that have been identified.
There is a risk that the value of the investments may decrease and this is mitigated as much as possible through active management by the investment managers and spreading the risk by investing through a well-diversified portfolio. The investment managers, Rathbones, send regular investment status reports and report annually on the portfolio’s performance. The investment value recovered from the earlier impacts of COVID in the prior year but was subsequently impacted this year by the indirect impact of the war in Ukraine. This is not seen to be a long term risk but the Trustees will continue to monitor the situation and discuss the position with the Charity’s investment managers.
The other main risk identified by the Foundation includes the ability to be able to continue to raise funds to support Marlborough College, in particular for the provision of bursaries. These are mitigated through the professional fundraising undertaken by a dedicated department, the Development Office, within the College and specific fundraising campaigns. There is currently more than sufficient funds to support the relevant bursaries and capital projects that have been pledged by Foundation and further fundraising has been received since year end. As a result there is not deemed to be any short term risk to raising funds and supporting Marlborough College in their above endeavours.
Policy documents that the Trustees have put in place to mitigate risks include the Privacy Policy, Donor Charter, Fundraising Code and Gift Acceptance Policy, which are all available on the Foundation website.
Policy
The Foundation’s policy is to apply the funds raised for the welfare, benefit or advancement of the College in such manner as the Trustees, after consultation with the Council of Marlborough College, shall decide is appropriate and in alignment with the Grant Making Policy.
Investment Powers
The investment powers are governed by the Foundation deed, which permits the funds to be invested in any security listed on any global exchange.
Public Benefit
The Trustees confirm that they have given due regard to the Public Benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. A number of awards have been made by the Trustees to support children on bursaries through their time at the College.
MARLBOROUGH COLLEGE FOUNDATION
Page 3
REPORT OF THE TRUSTEES (Continued)
OBJECTIVES, ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR
Objects
The objects of the Foundation are set out in a Foundation deed dated 4 June 1956. The main object of the Foundation is to manage funds to be applied for the benefit of Marlborough College (“the College”), a connected charity registered with the Charity Commission number 309486.
Objectives
The primary objective of the Foundation is to support Marlborough College, in particular through the provision of bursaries but also including, but not limited to, the funding of scholarships, capital projects, equipment, facilities and outreach programmes.
Fundraising
Fundraising is carried out by members of Marlborough College staff, and no external fundraisers are used. Fundraising is aimed at alumni, parents, trusts and foundations and other interested parties, and not the general public. There were no complaints received in respect of any fundraising undertaken.
Investment Performance and Policy
The Foundation’s investments are managed by Rathbones Investment Management Ltd. The investment managers have discretion in the management of the portfolio. The Foundation investment policy is to manage the investments following the principles of total return, with the overall objective to increase the funds value in line with fee inflation and provide up to 3-4% for draw down in support of bursaries. The performance over the year saw income of £132,238 (2021: £90,116) and investment losses (realised and unrealised) of £757,588 (2021: gains of £799,729).
FINANCIAL REVIEW
During the year donations and gift income was £2,214,111 (2021: £2,845,059) and total income was £2,389,960 (2021: £2,954,739).
During the year the Foundation made grants amounting to £717,181 (2021: £476,344) to Marlborough College.
The expenses of the Foundation are met by the College.
Reserves Policy
Total reserves held at 30 June 2022 were £11,101,102 (2021: £10,220,695) of which £10,195,263 were restricted (2021: £9,572,498) and £600,000 were designated (2021: £66,403). The free reserves decreased during the year from £581,794 to £305,839.
The Trustees’ policy is to continue to build reserves up to a level which will enable the Foundation to support major initiatives within Marlborough College, with the majority of the reserves being held as restricted and designated funds for bursaries and specific capital projects as they arise.
Resources
The Council of the College has agreed that the costs of the Foundation should be borne by the College and the Foundation is not obligated to pass funds to the College to meet such costs.
CONNECTED CHARITY
Administration services are provided to the Foundation by the College. Six members of the College Council were also trustees of Marlborough College Foundation.
FUTURE PLANS
The Development Office is planning to launch a major bursary fundraising campaign in spring 2023 which aims to increase dramatically the number of bursaries which the Foundation will be able to support at the College. This will be alongside any other fundraising opportunities, such as capital projects, which may arise.
MARLBOROUGH COLLEGE FOUNDATION
Page 4
REPORT OF THE TRUSTEES (Continued)
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales 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 charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:
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Select suitable accounting policies and then apply them consistently;
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Observe the methods and principles in the Charities SORP;
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Make judgements and estimates that are reasonable and prudent;
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State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Foundation deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
AUDITORS
A resolution to re-appoint Haysmacintyre LLP will be submitted to the Annual General Meeting.
Marlborough College Marlborough Wiltshire SN8 1PA
On behalf of the Board
Date: 8 November 2022
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Tim Martin-Jenkins
Trustee
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INDEPENDENT AUDITORS’ REPORT
Page 5
TO THE TRUSTEES OF MARLBOROUGH COLLEGE FOUNDATON TRUST
Opinion
We have audited the financial statements of Marlborough College Foundation for the year ended 30 June 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 30 June 2022 and of the charity’s net movement in funds for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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adequate accounting records have not been kept by the charity; or
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sufficient accounting records have not been kept; or
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the charity financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
INDEPENDENT AUDITORS’ REPORT
Page 6
TO THE TRUSTEES OF MARLBOROUGH COLLEGE FOUNDATION
Responsibilities of trustees for the financial statements
As explained more fully in the trustees’ responsibilities statement the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to income and management bias in accounting estimates. Audit procedures performed by the engagement team included:
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Enquiring into correspondence with regulators;
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Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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Evaluating management’s controls designed to prevent and detect irregularities; and
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Identifying and testing journal entries.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.
Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London Date: EC4R 1AG 22.12.22
Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
MARLBOROUGH COLLEGE FOUNDATION
Page 7
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 30 JUNE 2022
| Unrestricted | |||||
|---|---|---|---|---|---|
| & | |||||
| Designated | Restricted | ||||
| Funds | Funds | Total | Total | ||
| Note | 2022 | 2022 | 2022 | 2021 | |
| £ | £ | £ | £ | ||
| INCOME FROM | |||||
| Investments | 3,452 | 128,786 | 132,238 | 90,116 | |
| Donations and legacies | 455,988 | 1,758,123 | 2,214,111 | 2,845,059 | |
| Other income: tax recoverable | 20,825 | 22,786 | 43,611 | 19,564 | |
| -------------------- | -------------------- | -------------------- | -------------------- | ||
| Total income | 480,265 | 1,909,695 | 2,389,960 | 2,954,739 | |
| -------------------- | -------------------- | -------------------- | -------------------- | ||
| EXPENDITURE ON | |||||
| Raising funds: | |||||
| Investment manager fees and bank charges | (1,224) | (33,560) | (34,784) | (22,663) | |
| Charitable activities: | |||||
| Grants for the benefit of Marlborough College | (214,131) | (503,050) | (717,181) | (476,344) | |
| -------------------- | -------------------- | -------------------- | -------------------- | ||
| Total expenditure | 1 | (215,355) | (536,610) | (751,965) | (499,007) |
| -------------------- | -------------------- | -------------------- | -------------------- | ||
| Net income before investment (losses)/gains | 264,910 | 1,373,085 | 1,637,995 | 2,455,732 | |
| Net (losses)/gains on investments | (7,268) | (750,320) | (757,588) | 799,729 | |
| -------------------- | -------------------- | -------------------- | -------------------- | ||
| Net income | 257,642 | 622,765 | 880,407 | 3,255,461 | |
| Fund balances brought forward at 1 July 2021 | 648,197 | 9,572,498 | 10,220,695 | 6,965,234 | |
| -------------------- | -------------------- | -------------------- | -------------------- | ||
| Fund balances carried forward at 30 June 2022 | 5 | 905,839 | 10,195,263 | 11,101,102 | 10,220,695 |
| ========== | ========== | ========== | ========== |
All the Charity’s activities are continuing.
The accompanying notes form part of these financial statements.
Full comparatives for the Statement of Financial Activities are shown on page 14.
MARLBOROUGH COLLEGE FOUNDATION
Page 8
BALANCE SHEET
AS AT 30 JUNE 2022
| Note | 2022 | 2021 | |||
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| FIXED ASSETS | |||||
| Investments | 3 | 6,097,376 | 5,534,769 | ||
| -------------------- | -------------------- | ||||
| 6,097,376 | 5,534,769 | ||||
| CURRENT ASSETS | |||||
| Debtors including Gift Aid Recoverable | 17,125 | 7,493 | |||
| Cash at bank and in hand | 4,986,601 | 4,678,433 | |||
| -------------------- | -------------------- | ||||
| 5,003,726 | 4,685,926 | ||||
| -------------------- | -------------------- | ||||
| Net Current Assets | 5,003,726 | 4,685,926 | |||
| -------------------- | -------------------- | ||||
| Net Assets | 11,101,102 | 10,220,695 | |||
| ========== | ========== | ||||
| RESERVES | |||||
| Unrestricted Funds | 5 | 905,839 | 648,197 | ||
| Restricted Funds | 5 | 10,195,263 | 9,572,498 | ||
| -------------------- | -------------------- | ||||
| 11,101,102 | 10,220,695 | ||||
| ========== | ========== |
Approved and authorised for issue by the Trustees on 8 November 2022 and signed on their behalf by:
..............................................
Tim Martin-Jenkins (Chairman)
The accompanying notes form part of these financial statements.
MARLBOROUGH COLLEGE FOUNDATION
Page 9
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
| 2022 | 2021 | |||
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Reconciliation of net income to net cash flow from | ||||
| operating activities | ||||
| Net income per statement of financial activities | 880,407 | 3,255,461 | ||
| Investment income | (132,238) | (90,116) | ||
| Net loss/(gain) on investments | 757,588 | (799,729) | ||
| (Increase)/decrease in debtors | (9,632) | 28,129 | ||
| ------------------- | ------------------- | |||
| Net cash provided by operating activities | 1,496,125 | 2,393,745 | ||
| Cash flows from investing activities | ||||
| Investment income | 132,238 | 90,116 | ||
| Purchase of investments | (2,978,809) | (2,269,855) | ||
| Proceeds from sale of investments | 1,658,614 | 1,395,647 | ||
| ------------------- | ------------------- | |||
| Net cash used in investing activities | (1,187,957) | (784,092) | ||
| ------------------- | ------------------- | |||
| Change in cash and cash equivalents in the year | 308,168 | 1,609,653 | ||
| Cash and cash equivalents at 1 July 2021 | 4,678,433 | 3,068,780 | ||
| ------------------- | ------------------- | |||
| Cash and cash equivalents at 30 June 2022 | 4,986,601 | 4,678,433 | ||
| ========= | ========= | |||
| Analysis of Cash and Cash Equivalents | ||||
| At 30 June | Other | At 30 June | ||
| 2021 | Cash flows | movements | 2022 | |
| £ | £ | £ | £ | |
| 2022 | ||||
| Cash at bank and in hand | 4,567,077 | 85,421 | - | 4,652,498 |
| Cash held by investment managers | 111,356 | 222,747 | - | 334,103 |
| ---------------------- | -------------------- | -------------------- | ---------------------- | |
| 4,678,433 | 308,168 | - | 4,986,601 | |
| ========== | ========== | ========== | ========== | |
| Analysis of Cash and Cash Equivalents | ||||
| At 30 June | Other | At 30 June | ||
| 2020 | Cash flows | movements | 2021 | |
| £ | £ | £ | £ | |
| 2021 | ||||
| Cash at bank and in hand | 2,816,779 | 1,750,298 | - | 4,567,077 |
| Cash held by investment managers | 252,001 | (140,645) | - | 111,356 |
| ---------------------- | -------------------- | -------------------- | ---------------------- | |
| 3,068,780 | 1,609,653 | - | 4,678,433 | |
| ========== | ========== | ========== | ========== |
MARLBOROUGH COLLEGE FOUNDATION
Page 10
ACCOUNTING POLICIES
FOR THE YEAR ENDED 30 JUNE 2022
Basis of preparation
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 UK and Republic of Ireland (FRS 102) (second edition effective 1 January 2019) - (Charities SORP (FRS 102)), and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
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a) The Trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The review of the Foundation’s financial position, reserves levels and future plans gives the Trustees confidence the charity remains a going concern for the foreseeable future.
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b) In preparing these financial statements, the Trustees have made judgements, estimates and assumptions that affect the application of the Foundation’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are deemed not to be any significant judgements or areas of estimated uncertainty in the preparation of these financial statements.
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c) The Foundation’s accounts have been prepared under the historical cost convention except for investments, which are carried at market value rather than historic cost.
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d) Income represents covenants, donations and investment income generated by the Foundation’s continuing activities and is accounted for on a receivable basis.
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e) Charitable Activities represent grants awarded and is accounted for when irrevocably committed to.
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f) Restricted funds relate to donations received from individuals who have stipulated that the money is used for a specific purpose, whether that be towards a bursary or a capital project. They are represented by capital and income funds, which are expendable in accordance with the conditions imposed by the donors.
Unrestricted funds comprise accumulated surpluses and deficits on general funds. They are available for use at the discretion of the Trustees in furtherance of the general charitable objects.
Designated funds are funds that the Trustees have earmarked for a particular purpose.
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g) The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.
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h) Investments consist of quoted investments, which are valued at market value on the balance sheet date. Increases and decreases in market value are reflected in the Statement of Financial Activities.
MARLBOROUGH COLLEGE FOUNDATION
Page 11
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 JUNE 2022
1. TOTAL EXPENDITURE
The administration and governance costs associated with the running of the charity are paid by Marlborough College.
The Trustees’ liability insurance is paid by Marlborough College.
Neither the Trustees nor persons connected with them received any remuneration, other benefits or reimbursement of expenses from the Foundation or any connected organisation. The Foundation does not employ any staff.
2. TAXATION
As a charity the Foundation is exempt from United Kingdom income tax.
3.
| INVESTMENTS | 2022 | 2021 |
|---|---|---|
| £ | £ | |
| Listed investments | ||
| Market value at 1 July 2021 | 5,534,769 | 3,860,831 |
| Add: acquisitions | 2,978,809 | 2,269,855 |
| Less: disposals | (2,018,731) | (1,284,477) |
| Net (losses)/gains on revaluation | (397,471) | 688,560 |
| -------------------- | -------------------- | |
| Value at 30 June 2022 | 6,097,376 | 5,534,769 |
| -------------------- | -------------------- | |
| Cost of investments | ||
| At 30 June 2022 | 6,045,253 | 4,488,809 |
| ========== | ========== | |
| At 1 July 2021 | 4,488,809 | 3,381,363 |
| ========== | ========== |
All investments are quoted on a recognised UK Stock Exchange and or valued by reference to investments listed on a recognised Stock Exchange.
4. ALLOCATION OF THE CHARITY NET ASSETS
The net assets are held for the various funds as follows:
| Current year | Investments | Current Assets | Total |
|---|---|---|---|
| £ | £ | £ | |
| Unrestricted & Designated funds | 58,487 | 847,352 | 905,839 |
| Restricted funds | 6,038,889 | 4,156,374 | 10,195,263 |
| -------------------- | ------------------- | -------------------- | |
| 6,097,376 | 5,003,726 | 11,101,102 | |
| ========== | ========= | ========== | |
| Prior year | Investments | Current Assets | Total |
| £ | £ | £ | |
| Unrestricted & Designated funds | 332,756 | 315,441 | 648,197 |
| Restricted funds | 5,202,013 | 4,370,485 | 9,572,498 |
| -------------------- | ------------------- | -------------------- | |
| 5,534,769 | 4,685,926 | 10,220,695 | |
| ========== | ========= | ========== |
MARLBOROUGH COLLEGE FOUNDATION
Page 12
NOTES TO THE ACCOUNTS (continued)
FOR THE YEAR ENDED 30 JUNE 2022
| 5. | FUNDS | |||||
|---|---|---|---|---|---|---|
| Balance as | Investment | Balance as | ||||
| At 1 July | Income | Expenditure | Losses | At 30 June | ||
| 2022 | 2021 | & Transfers | 2022 | |||
| £ | £ | £ | £ | £ | ||
| Unrestricted Funds | ||||||
| - General Funds | 581,794 | 479,088 | (155,043) | (600,000) | 305,839 | |
| - Designated Bursaries | 66,403 | 1,177 | (60,312) | 492,732 | 500,000 | |
| - Designated Science Building | - | - | - | 100,000 | 100,000 | |
| --------------------- | ------------------- | ------------------- | --------------------- | --------------------- | ||
| Total unrestricted funds | 648,197 | 480,265 | (215,355) | (7,268) | 905,839 | |
| ========== | ========= | ========= | ========== | ========== | ||
| Restricted Funds | ||||||
| - Bursaries | 6,856,225 | 1,241,733 | (503,569) | (750,320) | 6,844,069 | |
| - Memorial Hall | 5,095 | 26,928 | (30,025) | - | 1,998 | |
| - Science Building | 2,711,178 | 641,034 | (3,016) | - | 3,349,196 | |
| --------------------- | ------------------- | ------------------- | ----------------- | --------------------- | ||
| Total restricted funds | 9,572,498 | 1,909,695 | (536,610) | (750,320) | 10,195,263 | |
| ========== | ========= | ========= | ======== | ========== |
Unrestricted Funds
These funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated Funds
These consist of funds, which were originally set up to allocate donations of a general purpose, now allocated towards designated purposes as approved by the Trustees. At the discretion of the Trustees, the funds can be applied towards other objectives.
Restricted Funds
These funds are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.
MARLBOROUGH COLLEGE FOUNDATION
Page 13
NOTES TO THE ACCOUNTS (continued)
FOR THE YEAR ENDED 30 JUNE 2022
| 5. | FUNDS (continued) | |||||
|---|---|---|---|---|---|---|
| Balance as | Investment | Balance as | ||||
| At 1 July | Income | Expenditure | Gains | At 30 June | ||
| 2021 | 2020 | & Transfers | 2021 | |||
| £ | £ | £ | £ | £ | ||
| Unrestricted Funds | ||||||
| - General Funds | 477,010 | 219,636 | (114,852) | - | 581,794 | |
| - Designated Bursaries | 249,655 | 5,171 | (236,503) | 48,080 | 66,403 | |
| --------------------- | ------------------- | ------------------- | --------------------- | --------------------- | ||
| Total unrestricted funds | 726,665 | 224,807 | (351,355) | 48,080 | 648,197 | |
| ========== | ========= | ========= | ========== | ========== | ||
| Restricted Funds | ||||||
| - Bursaries | 3,902,882 | 2,293,310 | (91,616) | 751,649 | 6,856,225 | |
| - Memorial Hall | 26,378 | 33,738 | (55,021) | - | 5,095 | |
| - Science Building | 2,309,309 | 402,884 | (1,015) | - | 2,711,178 | |
| --------------------- | ------------------- | ------------------- | ----------------- | --------------------- | ||
| Total restricted funds | 6,238,569 | 2,729,932 | (147,652) | 751,649 | 9,572,498 | |
| ========== | ========= | ========= | ======== | ========== |
6. RELATED PARTY TRANSACTIONS
Sir John Bell, Mr Birkin, Mr Coleman, Mr Elliot, Mr G I Henderson and Mr T Martin Jenkins are all members of the Council of Marlborough College.
Mr T Martin-Jenkins is also a director of Marlborough College (Hong Kong) Foundation Ltd.
During the year donations totalled:
-
£717,181 (2021: £476,344) to Marlborough College
-
£301,086 (2021: £nil) from Marlborough College (Hong Kong) Foundation Ltd
MARLBOROUGH COLLEGE FOUNDATION
Page 14
NOTES TO THE ACCOUNTS (continued)
FOR THE YEAR ENDED 30 JUNE 2022
7. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted & | ||||
|---|---|---|---|---|
| Designated | Restricted | |||
| Funds | Funds | Total | ||
| Note | 2021 | 2021 | 2021 | |
| £ | £ | £ | ||
| INCOME FROM | ||||
| Investments | 5,996 | 84,120 | 90,116 | |
| Donations and legacies | 212,631 | 2,632,428 | 2,845,059 | |
| Other income: tax recoverable | 6,180 | 13,384 | 19,564 | |
| -------------------- | -------------------- | -------------------- | ||
| Total income | 224,807 | 2,729,932 | 2,954,739 | |
| -------------------- | -------------------- | -------------------- | ||
| EXPENDITURE ON | ||||
| Raising funds: | ||||
| Investment manager fees and bank charges | (1,543) | (21,120) | (22,663) | |
| Charitable activities: | ||||
| Grants for the benefit of Marlborough College | (349,812) | (126,532) | (476,344) | |
| -------------------- | -------------------- | -------------------- | ||
| Total expenditure | 1 | (351,355) | (147,652) | (499,007) |
| -------------------- | -------------------- | -------------------- | ||
| Net (expenditure)/income before investment gains | (126,548) | 2,582,280 | 2,455,732 | |
| Net gains on investments | 48,080 | 751,649 | 799,729 | |
| -------------------- | -------------------- | -------------------- | ||
| Net (expenditure)/income | (78,468) | 3,333,929 | 3,255,461 | |
| Fund balances brought forward at 1 July 2020 | 726,665 | 6,238,569 | 6,965,234 | |
| -------------------- | -------------------- | -------------------- | ||
| Fund balances carried forward at 30 June 2021 | 5 | 648,197 | 9,572,498 | 10,220,695 |
| ========== | ========== | ========== |