Esperanza Trust for Anthropological Research Financial Statements For the year ended 31 December 2024 CONTENTS Trustees, Report Statement of Trustees. Responsibilities Independent Auditor's Report Statement of Financial Activities Statement of Financial Position Notes to the Financial Statements 3,4&5 8&9 50 Fitzroy Street London W1T 5BT Charity Registration 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 2024. The Trust Fund is governed by a Tiust 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 Iruslees are nominated by the Institute's Council. Trustees Prof. Sarah Green (Chair) Prof. Jonathan Spencer Prof Jon Mitchell appointed appointed appointed 26-Sep-07 (￿-NOv-15 01-Sep-21 Prfn¢lpal Addre•$ 50 Fitzroy Street London W1T 5BT Audltorn Friend-James Limited 161-163 Preston Road Brighton 8N16AF Bankers National Westminster Bank PLC 45 Tottenham Court Road London W1T 2EA Sollcltors Jansons Solicitors 40 Crawford Street London W1H 1JL Stockbrokers CCLA Inveslmenl Management 85, Queen Victoria Streel London EC4V 4ET Sarasin & Partners LLP Juxon House, 1 IXI St Paul's Churchyard. London EC4M 88U Speclflc restrlctions Imposed by the govornlng d•xument: The income of Ihe Fund is to be applied to promoting the study and teaching of anthropology. Clause 3 (e) of Ihe Trust Deed allows the Managing trustees to apply part of the income towards the discharge of any exceptional expenditure incurred by the Instilule. even if this is not related lo the trusts or powers of the Deed. provided that a request is made to the Managing trustees by the Inslitule's Council. Investment powers and pollcy: The Managing trustees are entitled under Clause 7 of the Tftjst Deed to purchase any types of investment or property wheresoever situate. Responsibility for investment decisions lies with the Managing trustees. The trustees, current investment policy is to invest a minimum of 30% of the Fund in propety. Equities invested with Smith & Williamson Investment Management have been transferred during the year to two Common Investment Funds Investments.. CCLA'S 'COIF Ethical Inveslments Fund, and Sarasin & Partners, Sarasin Endowment Funds,. Esperanza Trust for Anthropological Research ANNUAL REPORT The policy of the trustees is to devote a fixed grant amount to subsidising exceptional expenditure of Ihe Royal Anthropological Inslilule, plus an uplift, if agreed. as they are empowered under Clause 3{el. A further grant is devoted lo an annual research fellowship scheme sponsored by the trustees in association with United Kingdom university departments of anthropology, known as the 'LeachlRAI Fellowships,. In some years they refrain from sponsoring the Fellowship scheme in ordef to conserve their finanaal resources. Since all grants made by the trustees are either in response to requests from Ihe Inslilute's Council. or a result of the trustees. own initiative, the Trust Fund is not open to applications from other parties. The present report is published to comply with the trustees, Segal obligations Further information about the activities of the Royal Anthropologi¢al Institute is published in the Annual Report and financial statements of the Inslitute. and from tsme to time in the RAI News, columns of the Institute's bimonthly joumal 'Anthropology Today. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparing the trustees. Report and the financAal statements in accordance with applicable law and United Kingdom Accounting Slandards (United Kingdom Generally Accepted A￿OUntIng Practice) The law applicable lo charities in England and Wales requires the trustees lo prepare financial slalements for each finan¢ial year which give a true and fair view of the slate of affairs of th8 chanty and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements. the trustees are required to- select suitable accounting policies and then apply them Mnsistently: observe the methods and principles in Ihe Charities SORP: • make judg8m8nts and estimates thal are reasonable and prudenl; • slate whether applicable accounting slandards have been followed, subject lo any material departures disclosed and explained in the finanaal statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the chanty will contsnue in operation. The trustees are responsible for keeping proper accounting records that dis¢lose wilh reasonable accuracy at any lime the financial position of the charity and enable them to ensure Ihal the financial statements comply with the Charities Act 2011. the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust 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. Friend-James Limited were appointed as auditors to the company and a resolution proposing that they be re- appointed will be pul al a General Meeting Appmved by the trns¢ees on January 8 2026 Sarah Green Tmstee Esperanza Trust for Anthropological Research INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE ESPERANZA TRUST FOR ANTHROPIXOGICAL RESWICH Oplnlon We have audited the financial slalements of the Esperanza Trust for Anthropological Research {the 'charity') for the year ended 31 De￿rnber 2024 which comprise the Statement of Financial Activities, the Statement of Financial Position and the Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Finanaal Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our oplnlon the financlal statements: give a true and fair view of the stale of the charity's affairs as at 31 December 2024 and of its in¢oming resources and application of resources. including ils income and expenditure. for the perbod then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance wtth the requirements of the Charities Act 2022. Basls for opinlon We conducl&d 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 Auditorfs responsibilitl8s for the audit of the fin8nrial statemenls 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 lo provide a basis for our opinion. Concluslonl relatlng to golng concem In auditing the financial stalemenls, we have conduded that the Iruslees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfonned, we have not idenlified any rnaterial uncertainties relating to events or conditions that. indiwdually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of al least 12 months from when Ihe financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect to going concem a described in the relevant sections of this report. Other Infomiation The other informalion comprises the infomiation included in the annual report, other than the financial ststements and our auditor's report thereon. The Iruslees are responsible for the other infomation. Our opinion on the finanoal slatemenls does not cover the other infomiation and, except to the extent otherwise explicitly slated in our report, we do not expf8SS any fomi of assurance condusion thereon. In connection with our audit of the financial statements, our responsibility is to read the olhef information and, in doing so, consider whether the other information is materially inconsislent wilh the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such matenal inconsistencies or apparent material misstatements. we are required to determine whether there is a material misstatement in the financial statements ow a material misslatemenl of the other information. If. based on the work we have performed. we conclude that there is a material misstatement of this other infomialion, we are required lo 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 In the light of the knowledge and understanding of the charity and its environment obtained in the ¢ourse of the audit, we have nol identified material misstatements in the trustees, report. We have nothing to report in respect of the following mallers in relation to which the Charities (Accounls and Reports) Regulations 2008 requires us to report lo you if, in our opinion.. Ihe information given in the Irustees. reporl is inconsistent in any material respect with the the financial statements., or sufficient accounting records have not been kept.. or the financial statements are not in agreement with the accounting records and returns,. or we have not received all the information and explanations we require for our audit. Re8ponslbllltle8 of trustoes As explained more fully in Ihe trustees, responsibilities slalemenl, the trustees are iesponsible for the preparation of the financial slalemenls and for being satisfied that they give a true and fair view, and for such internal conlfol as the trustees determine is necessary lo enable the preparation of financial slalemenls Ihal are free from material misstalemenl, whether due lo fraud or error. In preparin9 the financial stalemenls. the trustees are responsible for assessing the charity's ability to continue as a going ¢oncern, disclosing. as applir2ble, matters related lo going concein and using the going concern basis of accounting unless the trustees eilher intend lo liquidate the charity or to cease operations, or have no realistic alternative but lo do so. Audito¢8 re8pon8lbilitla8 for the audlt of tho flnanclal statements We have been appointed as auditor under section 144 of the Charities Act 2022 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are lo obtain reasonable assurance about whether the financial slalements as a whole are free from material misstatement, whelher due lo fraud or error. and lo issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audil ¢onducted in accordance with ISAS {UKI will always delect a material misslalemenl when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in Ihe aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial stalements. 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.. The objectives of our audit. in relation lo fraud, are.. to identify and assess the risks of material misstatement of the financial statements due lo fraud,. lo obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due lo fraud, through designing and implementing appropriate responses., and to fespond appropriately to fraud or suspected fraud identified during the audit, However, the primary responsibility for the prevention and detection of fraud rests with the trustees. We obtained an understanding of the legal and regulatory frameworks that are applicable lo the charity and delermined that the most significant are those that relate to the financial reporting framework { and "Accounting and Reporting by charities.. Slalemenl of Recommended Praclise applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102}" las amended for accounting periods commencing from 1 January 2019).). relevant UK tax legislation, the Charilies (Accounts and Reports) Regulations 2008, health and safety requiremenls, the Data Pfoleclion Act and employment law, We designed our audit procedures to identify non-compliance with those frameworks by making enquiries of the trustees and senior management team., assessment of the internal control environment, including the level of oversight of those charged with governance.. and testing of material journal entries. Esperanza Trust for Anthropological Research We communicated relevant identified laws and regulalions and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. A further description of our responsibilities for the audit of the financial statements is located on the Financia Reporting Council's website al.. http'.llv￿.frC.org.UkJaudlt0rsresponsIb1IItIe$. This description forms part of our audilofs report. Use of our rèport This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounls and Reports) Regulations 2008 Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required lo slate to them in an audilorfs 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 charily's trustees s as a body, for our audit work, for Ihis report, or for the opinions we have formed. Mr Roger Heber Clow FCA {Senior Ststutory Auditor) for and on behalf of Frlend-James Llmited Chartered Accountants Statutory Audltor 4th Floor. Park Gate 161-163 Preston Road. Brighton. East Sussex. BN16AF Esperanza Trust for Anthropological Research STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2024 Capltal Restdcted Endowment Res•arch Fund Grant Fund Total 2024 Totsl 2023 Income and endowments from: Investment income 26,524 49,745 76,269 82,738 Expendlture on Charftable Activllle• Grnnts Leach FIAI Public Anthropology Fellowship To the Royal Anlhropological Institute 4,000 16,000 4,000 16,000 7.500 26,990 Administration serwces Accotjntancy and audil fee Sundries 3,051 2,000 3,051 2,000 10,619 3,311 1,850 5.922 10,619 Tolal Expendlturo 10.619 25,051 35.670 45,573 Net In¢om• 15,905 24.694 40,599 37,165 Revalu•tlon of Inv¢8tment property Unreall8ed Galnslllo8sesl on Inve8th)ent Assets 0 75.000 88,574 125,910 88,574 Net Movement In Funds 104,479 24,694 129,173 238.075 Reconclllatlon of Funds Fund Balan¢•• at 1 January 2023 2,275,280 273,534 2,548,814 2.310.739 Fund Balan￿* at 31 December 2023 2,379,759 298,228 2.677,987 2.548,814 Esperanza Trust for Anthropological Research STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024 2024 2023 Fixed Assets Freehold investment property Investments 700,000 1,781,934 2,481,934 700,000 1,693,360 2.393.360 Current Assets Amount due from related charity Amount due from investment company 198,573 157.873 198,578 157,879 Creditors4mounts falling due within one year Sundry creditors 2,525 2,525 2,425 2,425 Net current assets 196,053 155.454 Total net assets 2,677.987 2,548,814 Funds of the Trust Capital endowment fund - unrestricted 2,379,759 2,275,280 Restricted research grant fund 298,228 273,534 Total charity funds 2,677,987 2,548.814 Approved by the trustees on 8th Januar}, 2026 Sarah G Tmstee Esperanza Trust for Anthropological Research NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2024 1 Accounting policies Basis of Accounting The accounts have been prepared in accordance with the charity's Memorandum and Articles of Asso¢iation, the Companies Act 2006 and"Accounting and Reporting by Charities: Statement of Recommended Practice applicable lo charities prepanng their accounts in accordance with the Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS 102)" (as amended for accounting periods commencing from 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102. The finanrial statements are prepared in slerting, which is the functional currenry of the chatity. Monetary amounts in these financial statemenls are rounded to the nearest £. The accounts have been prepared under the histoncal cost convention. m¢)dified to indude the revaluation of freehold properties al fair value. The principal arxounting poliaes adopted are sel oul below. Preparation of the financial Statements on a golng concem basis The financial stalements have been prepared on a going concern basis. The tharity has suffiaenl reSoU￿S and net assels lo conlinue and the trustees believe there to be no material uncertainties aboul the charity's ability to continue as a going ¢oncem. Income All incoming resources are induded in the statement of financial activities when the tharity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific poli￿eS are applied to particular categories of income.. Investment income is induded when re￿1Vable. Expenditure All expendilure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs relating to that category. Freehold investment pmperty The fair value of the investment property has been determined by trustees on an open market basis by reference to markel evidence of transaction pn￿S for similar properties at the reporting end date. Investments These are staled at fair value. The net gain on rewdluation has been credited to the respective funds in which the undedying assets are held. Accumulated Funds Restricled funds are subject to specific conditions by donors as lo how they may be used. The purpose and uses of the restricted funds are set out in note 7. Amount due fmm related charity This represents funds held by an associated Gharity Financial instruments The charity only has financial assels and finanual liabilities of a kind that qualrfy as basic financial instruments. Basic financial instruments are initially recognised al transaction value and subsequently measured at their setuement value. Esperanza Trust for Anthropological Research NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER 2024 2024 2023 2 Freehold Investment Property Fair Value as at 1 January 2023 Change in the Value in the Year Fair Value as at 31 December 2023 700.000 75,000 775.000 625,000 75,000 700,000 2024 2024 3 Investments Fair Value as at 1 January 2023 Change in the Value in Ihe Year Fair Value as at 31 December 2023 1,693.360 88,574 1,781,934 1,567,450 125,910 1,693,360 4 Amount due from related charity Royal Anthropological Institute of Great Britain and Ireland (the Institute) acts as custodian trustee in accordance wilh the Tmsl Deed. The Instilule nominates managing trustees on a three year rotation however they are automatically re-appointed unless they choose to retire or resign. Al the year end, the Institute owed the Esperanza Trust for Anthropological Research £198,573 {2023'.£157,873) in respect of funds pooled within the Institute to maximise the investment return. The Esperanza Trust devotes about half its income to the LeachlRAI Fellowships and half to meeting special requests from the Council of the Inslitule, under a clause in its Trust Deed which provides for this procedure.The bank financial statements of the Trust have been merged with the Royal Anthropological Instilule's bank financial statements in order to avoid bank charges and to maximise bank interest earned. Bank interest is apportioned to the trust on the basis of the balance held by the Royal Anthropological Instilute. S Analysis of net assets between funds Capitsl Restricted Endowmènt ResBarch Fund Grant Fund Total Fund balances at 31 December 2023 are represented by.. Fixed Assets Current Assels Credilors-amounts falling due wilhin one year 2,379,759 102,175 198,578 12,525 298,228 2,481,934 198,578 {2,5251 2,677,987 2,379,759 6 Capitsl endowment fund - unrestrictsd The Capital Endowment Fund was established in 1963 to promote research in anthropology, and also, under a clause in its Trust deed, to assist the Royal Anthropological Institute with expenses additional to its normal outgoings. The fund is represenled by fixed asset investments and currenl assets. 7 Restrlcted research grant fund The Research Grant Fund represents an accumulation of unexpended income retained by the trustees in order to maintain the resources of the fund against erosion by inflation. As well as income from investments, the fund re￿IVeS royalties arising from certain publications of ils founder, the late Sir Edmund Leach.