Esperanza Trust for Anthropological Research Financial Ststements For the year ended 31 December 2023 CONTENTS Trustees. Report Statement of Trustees, Responsibiliti"es Independent Auditorfs Report Statement of Financial Activities Statement of Financial Position Notes to the Financial Statements 3,4&5 8&9 So Fitzroy Street London W1T 5BT Charity Registrats"on No.. 1063939 Esperanza Trust for Anthropological Research (also known as Esperanza Trust) TRUSTEES. REPORT The trustees present their report and financial statements for the year ended 31 December 2023. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Trust's deed, the Charities Act 2011 and the Stslement of Recommended Practice, "Accounting and Reporting by Charities" issued in March 2¢)05. The trust fund is governed by a trust deed dated 11 November 1963. It was founded by Professor Sir Edmund Leach. who died in 1989, and is endowed with donations and bequests from him. The Royal Anthropological Institute is custodian trustee and three managing trustees are nominated by the Inslitule's Council. Trustees Professor Sarah Green (Chair) appointed Professor Jonathan Spencer appointed Professor Jon Mitchell appointed 2&Sep417 O&Nov-15 01-Sep-21 Principal address 50 Fitsroy Street London W1 T 5BT Audltors Friend-James Limtted 161-163 Preston Road Brighton BN16AF Banker5 Nalional Westminster Bank PLC 45 Tottenham Court Road London W1T 2EA Sollcltors Jansons Solicitors 40 Cravhord Street London W1H 1JL Invesljnent advlsora CCLA Investment Management One Angel Lane London EC4R 3AB Sarasin & Partners LLP Juxon House. 100 St Paul's Churchyard. London EC4M 8BU Specific restrictions imposed by the governing documenL' The income of the Fund is to be applied to promoting the study and teaching of anthropology. Clause 3 (e) of the Iwsl deed allows the managing trustees lo apply part of the income towards the discharge of any exceptional expendilure incurred by the Inslitute. even if this is not related to the trusts or powers of the deed. provided Ihat a request is made to the managing trustees by Ihe Institute's Council. Investment powers and policy: The managing trustees are entitled under Clause 7 of the trust deed to purchase any types of investment or property wheresoever siluated. Responsibility for investment deejsions lies with the managing trustees. The trustees. current investment policy is to invest about 30°h of the fund in property. Investments are held in The COIF Charities Ethical Investment Fund held by CCLA Investment Management and the Sarasin Endowment Fund managed by Safasin and Partners. Esperdnza Trust for Anthropological Research Annual Report The policy of the trustees is to devote a fixed grant amount to subsidising exceoional expendriure of the Royal Anthropoltyical Insb'bjte. plus an uplift if agreed. as they are emp¢Mered under Clause 3{e}. The Esperanza Trust devotes about half its income to the Public Anthrcpology Felluwships. In some years they refrain from sponsoring the Fellowship scheme in order to consernie their financial reswrces. Since all grants made by the trustees are either in response to requests from Ihe Instittrte's C￿nI)I, or a result of the trustees. ¢)wn initiative, the trust fund is not open to applications from other partt'es. The pyesent repcyt is wblished to comply with the trustees, legal obligations. The trustses have paid due regard to guidance issued by the Charity Commission in deciding what activities the trust strKJuld undertake. Further infomation about the acbvitses of the Royal Anthropolc>3ical Institute is published in the annual reFrfXt arn1 financial statements of the Institute, and from time to time in the 'RAI News. columns of the Institute's bimonthly ]￿Mal 'Anthrq)ology Today.. STATEMENT OF TRUSTEEY RESPONSIBIUTIES The trustees are responsible for preparing the trustees. rew1 and the financjal statements in accordance with appSicabl6 and United lQngdom Acc￿ntir¥) sL￿d￿ds (UrAted I￿n￿10M Generally Accepled Accounting Practice). The law applicable to charFb'es in Eroland arKI Wales requires the trustees to wepare financial statements for each financial year vthich give a true and fair view of tt)e stste of affairs of the charity and of the incoming resources and applicats'on of resources of the chartty for that period. In preparirKJ these financial ststements. the trustees are re(wired to.. • select suttable accountirKJ poli(aes then appfy thèm ¢onsistentty" observe Ihe methods and winctples in the Charities SORP: make judgemerrts arKI estimates that are reaSOna￿e and Prudent state vknether applic*le aCcO￿￿ng stand¥ds have tEen followed. subject to any material departures (thsdosed and explained in the financial statements; arKI prepare the finanaal sL3tements on the wrKJ concem basis unless rt is inappropriate to presume that the charity will continue in oper*'on. The trustees are responsible for keepirvJ prcper acccxjnting records that disdose v￿th reasonable accuracy at any lime the financial position of the chaiity arKJ enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2C(18 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the chaiity and hence for taking reasonable steps for the wevention and detection of fraud aTh1 other irregularities. Friend-James Limited were aprA)inted as aKlitots to the CoMp￿Y and a res(Aution proposing that they be re- appointed viill be put at a General Meeb'ng. Appmved by the trustees on 11 xaiy Sarah Green stee Esperanza Trust for Anthropological Research INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE ESPERANZA TRUST FOR AKfHROPOL(KSChL RESEARCH We have audrted the accounts of The Esperan￿ Trust ft)r the year ended 31 December 2023 set out on pages 6 to 9. The financial rep￿.ng framework that has been appl￿ in their weparats'on is applicable law and United Kingdom Accounting StaFxJards (United King(5￿￿ Generally Accepted AcccMJntirKJ Practice). This rewt is made solely to Ihe chariws trustees. as a body. in accordance with SectiC￿ 145 of the Charith'es Act 2011 and regulaons made under section 154 of that ACL Our audit work has been undertaken so that we might state to the chanty's trustees ttK)se maiters we are required to stste to them in an auditors, report arKI for no other purpose. To the fullest extent pemitted by law. do not accept (K assume resFX)nsibility to anyone other than the charitable company and its trustees as a iK%ty. for our audlt Yrtxk. for this repor( or ft)r the 0￿'n10ns we have formed. In our <)pinion the financial statements.. give a true and fair view of the stste of the chariws affairs as at 31 Decern￿r 2023 and of its incoming resources and application of resou￿$. including its irthme and expenditure. for the period then ended., have been property prepared in accordance with United Kingthjm Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Chwities Act 2011. Basis for opinion We conducted our audit in accordance with Intemats'ona Standards on A￿ji￿"ng (UK) {ISAs {UK)} and applicable law. Our responsibilities under those standards are further desuibed in the Auditorfs responsibilities for the audit of the finanoal statements section of our rep(rt We are independent of the charity in accordance vdth the ethical requirements that are rdevant to our audit of Ihe financial statements in the UK, induding the FRC'S Ethical Standard. and have fulfilled our olher ethical reSP(￿s1￿.11tie$ in accordan￿ with these requirements. We believe that the audit evidence we have obtained is suffictent and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial ststements. ￿ have cortluded Ihat the trustees. use of the goFrYJ concem basis of accounting in the weparation of the financia statements is appropriate. Based on the work we have perfonned. have not identified any matenal ur￿￿1n￿.eS relating to events or conditions tha( individually or collectively. may cast signfficant doubt on the charity's ability to continue as a going concern for a period of at least 12 mnths from when the financial slatements are authorised for issue. Our responsibilitses arKJ the responsikn'lities of the trustees with respect to going concem are described in the relevant sections of this rewt Other Infomiation The other infonnation comprises the inf(￿allon indudad in the annual rewl other than the financial statements a￿1 our auditorfs report thereon. The trustees are responsitAe for the other infomiab"on. Our opinion on the finanaal statements does not cover the other Informati(￿ and we do rKJt express any forni of assurance conclusion thereon. In connection our a￿JIt of the financAal slatements, responsibilty is to read Ihe other infomiation and, in doing so. consider whelher the other infonnat'on is materially inconsist8nt wth the finanoal statements. or our kn¢)vAedge obtained in the audit or othepwise appears to be materially misstated. If we identify such material inconsistenoes or apparent material misstatements, we ¥e required to determine whether there is a material misstatement in the financial stat￿ents or a material misstatement of the othw infomiats'on. If, based on the work we have performed. we condude that there is a maten.al misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Esperanza Trust for Anthropological Research Matters on which we are required to report by exception We have nothing to report in respect of the fOlk>V￿rvj matters Ithere the Charities (Accounts and Reports) Regulations 2(X)8 requires us to reFM)rt to Y￿ rf. in our cpinion". the infomation given in the trustees. report is ir￿OnsIstent in any material respect with the the finanaal statements.. or suffiaent accounting records have not L￿1 kept., or the financial statements are not in agreement with the accwnting records and retums; or we have not received all the informab.on and explanabons we require fcf ow audit. Responsibilities of trustees As explained more lully in the trustees, resp)nsibilits"es statement. the trustees are responsible for the preparation of the financial statements arKI for being satisfied Ihat they give a true and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of finanoal statements that are fr8e from matenal misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charTty's ability to continue as a going concem, disclosing. as applicable. matters related to going concem and using goirwJ concem basis of accounb'ng unless the trustees either intend to liquidate the tharity or to cease operations, or have no realist'c attemats've but to do so. Auditovs responsibilitles for the audit of the financial ststements We have been appointed as auditor under the Charitses Act 2011 s. 145 and report in accordance vAth regulations made under the Act and relevant regulations made or having effect t￿fireUnder. Our objectives are to obtain reasonable assurance about vthether the financial statements as a whole are free from material misstatement. Nthether due to fraud or error. and to issue an auditorfs report that indudes our opinion. ReaSona￿e assurance is a high level of a$Sura￿e. but is not a guarantee that an audit conducted in accordance IS4s IUK) will a￿ayS detect a materia misstatement when it exists. Misstatements can arise from fraud or error and are considered material rf. individually or in the aggregate. they could reasonably be expected to Infi￿nCe the economic deosions of users taken on the basis of these finanaal statements. The extent to vthich our procedures are capable of detecting irrewlarities. induding fraud is detsiled below". Our approath to identtfying aThJ assessing the nsks of material misstatement in res￿1 of irregular￿"és, including fraud and non-compliance V￿th laws and regulatr'ons. was as fc41ows.' - the erKJagement partner enswed that engagement tean collectively had the appropriate competence. capabilities ar￿ s￿lIS to identify Of recognis8 rK>rtrcompliance with applicable laws and regulations. - obtained an understanding of the legat and regulatory framthvorks within which the charity operates. focusing on those laws and reg￿atiOnS that have a direct effect on the detemination of material amounts and disdosures in the financia statements. The laws and regulations v considered in this context were the Charities Act 2011 together with the Charities SORP {FRS 102). We assessed the required compliance these laws and regulations as part of our audit procedures on the rdated final￿¢al statement items. - identified laws aFvJ regulats.ons communicated within the audit team re9￿artY and the team remained alert to instances of rnn-compliance throughcmjt the audit - we assessed the e*(ent of compliarte ￿ryth the laws and regUlati(￿S identified above through making enquiries of management. We assessed the suscept'bility of the charity's fin￿cial ststements to material misstatement. including obtaining an understanding of how frdud might occur. by making ￿qUIrIeS of management as to where they considered there was susceptibility to fra￿. their kno¥￿edge of aclual. suspected and alleged fraud and considering the intemal controls in place to mitigate risks of fraud and ncvKompliance wth laws aTrJ regulab'ons,. and Esperanza Trust for Anthropological Research To address risk of fraud ttKough managem￿1 L¥as and ov6Yride of controls. we perfonned ana1￿ical procedures to identify any unusual or unexpected rdab'onships. tested pumal entn.es to identify unusual transactions and investigated the rationale b8hirKJ s￿n￿Gant or ￿usua transacb"ons,' and In response to the risk of irwularities and nor￿cOmplian￿ with I￿ and reg￿atIonS, we designed Pr￿edureS which included, but were not limited" to agreeing financial statement disdosures to undertying supporting documentation and e￿ulriryd of man&3ement as to actual aThY rthntial litigation and daims. Owing to the inherent limitations of an audr( there is an unavoidable risk that may not have detected some material misstatements in the finanaal statements, even though we have pyoperty planned and performed our audit in accordance wrth aud￿"ng standards. For example, the further removed noTrcoM￿iance wrth laws and regulations {irregularities) is from the events and transactions refiecied in the finant4al statements. the less likely the inherently limited procedures required by auditing standards would identify rt. In addits¢)n, as with any audit, there remained a higher risk of norFdetection of irregulanties, as these may involve collusion, forgery, intentional omissions, misrepresentats"ons, the override of intemal contrcds. We are not responsible for weventing no compliance and cannot be expeded to detect nonpC￿1p1i￿¢e with all lthvs and regulations. A further description of our responsibilities for the auth't of the finanaal statemwrts is located cfi the Financial Reporting Council's website at.. VMw.frc.org.￿aUdit￿sreSp￿S1tH.l1IIes. This descripb.on I0￿S part of our auditorfs report. Roger Hober Clow FCA (Senior Statutory Auditor) for and on behalf of Friend-James Limited Chartèred Accounlants Slatutory Auditor 4th Floor. Park Gate 161-163 P￿ston Road, Brighton, East SJssex. 8N16AF Friend-Jaff￿S Limited is eligible for appointment as wdil(Y of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of Companies Act 20(￿. Esperanza Trnst for Anthropological Research STATEMENT OF FINANCIAL ACTIVITIES FOR ThE YEAR ENDED 31 DECEMBER 2023 Capithl Restrithd Total 2022 Fund Grdnt Fund 2023 Income and endowments from: Investment income 51,838 82.738 69,202 Expenditure on charitable activities Grnnts Public Anthropolo3y Fdlowship To the Royal Anthropologica Institute 9.713 16,000 Administration $￿iCe$ Accountancy and audit fee Sundries 3,311 3,311 1,850 5.922 2.769 1.100 10,438 5,922 Total expenditure 5,922 39,651 45,573 40,020 Net Income 24,978 12.187 37,165 29,182 Revaluation of investment property Unrealised gainsl{lossesl on investment assets 75.000 125.910 75.000 125.910 {220,808) Net movement in funds 225.888 12,187 238,075 (191,626) Reconciliation of funds Fund balances at 1 January 2023 2,049.392 261.347 2.310,739 2,502,365 Fund balances at 31 December 2023 2,275,280 273,534 2,548.814 2,310.739 Esperanza Trust for Anthropological Research STATEMENT OF FINANCIAL POSITIThY AS AT 31 DECEMBER 2023 2023 2022 Fixod assets FreetKJld investment property Investments 700.IXIO 1,693.360 1393,360 625,lY)O 1.567,450 2,192,450 Currnnt •$s•ts Amount due from related charity Amount due from inveslment wnpany 157,873 119,911 157.879 119,915 Credltors-amounts falling du• withln on• year Sundry creditors 2,425 2,425 1,828 1,626 Net curront assets 155,454 118,289 Total n•t •ss•t* 1548,814 2.310, Funds of th• trust Capttal endchvment fvnd . ￿reStriCted 1275,280 2,049,392 Restricted resewch grant fijnd 273.534 281,347 Total charlty funds 10.739 Approved by the trustees ￿ 12 3•Y T￿ste8 Esperanza Trust for Anthropological Research NOTES TO ThE FINANCIAL STATEIAENTS- YEAR ENDED 31 DECEMBER 2023 1 A¢counting policles a•sls of accoundng The accounts have been prepared under Ihe histoncal cost convention. The financial statern￿ts are prepared in sterling, which is the functional currery of chwity. Monetary ameat 8titsin and Ireland (the Institute) acts as ￿StodIan trustee in accordan￿ with the trust deed. The InstitLrte r￿MinateS managing trustees on a three year rotation hcwever they are automatically re-appointed ￿lesS they choose to retire or resign. At the year end, the Insts'tute Q¥ved the Esperanza Trust for Anthrop)logiGal Research £157,873 (2022: £119,911) in respect of funds pooled viithin the Institute to maximise the investment retum. The Esperanza Trust devotes aboLrt half its incom8 to the Leach/RAI Fellowships and haw to meebng speoal requests from ￿ Council of the Institute, under dause in its trust deed vthich provides this procethJre.The bank financial statements of thè tnjst have been merged wth the Royal Arrthropological Institute's bath finartial stat8ments in order to avoid bank charges and to maximise bank interest earr￿d. Bar* intsrest is apwtioned to the trust ￿ the basis of the balance held by the Royal Anthropologcal Insbtut8. 5 Analysis of net assets between funds Capithl Restrictsd Grant Fw Fund balances at 31 Decemljer 2¢T23 arn represented by.. Fixed assets Current assets CredItor>am￿nts falling due within one year 1275,280 118.080 157,879 12.425 273,534 2,393,360 157,879 12,425) 2,548,814 2.275.280 6 Capltal endowment fund - unrestricted The Capital Endowment F￿d ￿as established in to promote research in anthropology, and also, under a clause in its Tnjst deed. to assist the Royal AnttKopological Institute %*ith expenses additional to its nonnal Lxrtgoiros. Tr fund is represented by fixed asset invesbnents I￿￿nt assets. 7 Restricted research grant fund The Research Grant Fund represents an accumulati￿ of unexpended income retained by the trustees in order to maintain the resources of furnj against erD5ion by irfflation. As y￿11 as income from investments, Ihe furKI receives royalties arising from certain publicab.ons of its founder. the latè Sir Edmund L88th.