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2021-03-31-accounts

Page
Legalandadministrativeinformation 1
Trusteesreport 2-10
Reportoftheauditors 11-13
Statementoffinancialactivities 14
Balancesheet 15
Cashflowstatement 16
Notestothefinancialstatements 17-25

Trustees RNorton(Chair)
DLowther(Vice-Chair)
MAlexander
PAgar
SBeach
SLewis
(Appointed27Aug2020)
CSheasby
(HonTreasurer,appointed27May2021)
JBugg
(Appointed27May2021)
DBrowne
(Appointed27May2021)
CompanySecretary MBlake
RegisteredOffice UpperPendrillCourt
ErmineStreetNorth
PapworthEverard
Cambridge
CB238UY
Auditors EnsorsAccountantsLLP
WarwickHouse
ErmineBusinessPark
SpitfireClose
Huntingdon
Cambridge
PE296XY
Bankers NationalWestminsterBankPLC
92HighStreet
Huntingdon
PE293DT
Solicitors EllisonsSolicitors
HeadgateCourt
HeadStreet
Colchester
C011NP
Propertyadvisers BidwellsLLP
TrumpingtonRoad
Cambridge
CB29LD
InvestmentManagers Sarasin&PartnersLLP
JuxonHouse
100StPaul'sChurchyard
London
EC4M8BU
Status Aregisteredcharity No.1064595
Acompanylimitedbyguarantee No.03377965

Objective Objective Achievement
Furtherdevelopalong-termbusinessplan,in Newleasesagreed onkeyelementsoftheportfolio
thelightofcurrentevents,totakefullaccountof atPapworthBusinessPark,Potentialdevelopment
likelyimpactsonthe propertyportfolio,following opportunities
reviewed
and
initial
enquiries
PapworthHospital's relocation,thechangein commenced.Longtermplanbeing developedto
appetiteforofficeaccommodationandpotential supportproperty,investmentanddistribution
impactonmarketinvestmentyield,andmitigate strategy
appropriately
Developaplantoreplacelostincomestreams Addressedbylookingatsourcesofcapital
acrosstheportfolio asaresultofthehospital generationthatcouldbereinvestedtoproducea
closure return
ManagetheTrust's PropertyandInvestment Thegeneralfundsoftheorganisation increasedby
Assetsinorderto maximizetheirlong-term 25%(£11,217k)intheyear,largelydrivenbya
value,
developing
suitable
strategies
to
significantimprovementinthevalue ofthe
minimizerisk investmentportfolio,bothmarketinvestmentsand
commercialproperty,supportingthethree-year
planandalsoourreservespolicy.
Maintaintherealvalueofdonationstothe ThevalueofthedonationtoPapworthTrustwas
PapworthTrust maintainedintheyear,againstabackgroundoflow
inflation,andwehaveundertakentomaintainthis
in2021-22.Thedonationhasbeensetfollowing
presentationandreviewoftheoutcomesplanned
inthe3-yearBusinessPlanpreparedbytheTrust,
togetherwiththeachievementsmadein2020/21,

£
ThePapworthTrust 1,720,000
DisabilityHuntingdonshire 8,000
Tikva 7,000
MahadeviYogaCentre 5,000
AbleKidz 3,000
TheBrainwaveCentre 3,000
HandicappedChildrensAssociationGroup 3,000
TLC&JLPinnock 112
Total 1,749,112

ReserveType Value£!000s
Designatedfunds-corecapital 42,018
Designatedfunds-volatilityrisk 8,513
Freereserves 6,223
Total 56.754

Risk Impact Mitigation
Continuedglobalfinancial Financialuncertaintycan TheFoundationhasabroadassetallocation
uncertainty,impactedby leadtoareductioninincome andtheJointInvestmentCommitteeclosely
theCovid-19 pandemic, fromthemarketinvestment monitorstheperformanceofitsportfolioand
Brexitandother political portfolio,adverselyimpacting marketconditions/riskswithhelpfrom
disruptions ourabilitytomaintain investmentprofessionals.Theportfoliois
donations investedwithaviewtoproducingthedesired
returnoverthelongterm.
Inabilitytoletcurrently Reductioninrentalincome Stepsarebeingtakentoensuretheretention
vacantproperty. generatedasaresultofless ofexistingtenants,andconsiderationis
thantargetoccupancylevels being giventoalternativeusesforspaces
could resultininsufficient withlonger voids.Sourcesofcapitalreceipts
cashgenerationtomeet beingexplored,toyieldfundstoinvestfor a
planneddonations return.Ultimately,wemayneedtoreduce
the levelofdonationsmadeinthelonger
term
Lossofkeyskillsto Failuretoretainadequate TheBoardhasbeenstrengthenedbythe
manageandgovernthe resourceofsuitablyskilled additionoffournew Trusteeswith
Foundation. Trusteesandstaff,asa complementaryskillsandexperienceover
resultoffailingtorecruitnew thepasttwelvemonths.
trustees,orplanforstaff TheBoardconsidersgovernanceand
cover,couldleadtopoor successionplanningregularly,toensurethat
decisionsonthepropertyor thisskillsetisretained,andalsoensuresit
marketinvestmentportfolios, employsappropriatestafftosupport.
resultingincapitalloss Strategicpartnershipswithkeyadvisors
havebeenestablishedtoensurethe
Trusteesareproperlyadvised.The
Foundationalsopurchasesservicesfrom
externalpartiestosupportoperations,where
required.

Risk Impact Mitigation
Relianceonthirdparty Disruptiontoservicesthatwe Withsignificantrelianceonexternalsystems
support forkeysystems donotcontrolcouldleadtoa andthirdparty provisionofservices,
andprocesses failureofprovision,giving governingthesewitheffectiveservicelevel
risetoaninabilityto agreements,includingperformance
undertakecorerequirements requirements,helpstomitigaterisk.Wewill
continuetodevelopinformationsystemson
hostedplatformstoenablewideaccessand
increasedresilience
Fraudorcontrolriskdue Materialfinancialloss, Appropriatedelegationsofauthoritydrafted,
tosmallnumbersofstaff impactingthevalueofcapital withkeypaymentsandinvestment
employed,withsignificant heldbytheFoundation, instructionsapprovedbyTrustees,Close
assetsunder causedbythe monitoringbymanagementviaregular
management. misappropriationoffunds, managementaccountsandon-lineaccessto
resultinginasignificantly investmentreportsandtransaction
reducedcapitalbase,and informationismaintained,andanyissuesor
thereforereducedabilityto risksreportedtoTrustees.
makedonationsinthefuture
Inabilitytogenerate Reductioninpotential RecruitmentofTrusteeswithproperty
capitalreceiptsfrom disposalvalue ofidentified experience,includingdevelopment
developmentland developmentsites,dueto experience,coupledwiththeprocurementof
currentlyheld failuretosecureplanning professionaladviceandparticipationinthe
consentforidentified callforsitesunderthe Cambridgelocalplan,
developmentsitescould positionsusappropriatelytomitigatethis
resultinfailuretobuild risk.
capitaladequatelyto
maintaincurrentdonation
levels
Publicliabilityriskdueto Accidentorinjurysustained Riskassessmentshavebeenundertaken
ownership ofwoodland byaTrustee/staffmember/ acrosstheestate,includingthewoodland,
andopenspaces,along memberofthepublic andactionplansdevelopedandactionedto
withsomeempty resultinginsignificantinjury mitigaterisk.Regularinspectionsandpatrols
properties couldleadtosignificant aremaintainedtoensurethatthereisno
damages/compensation materialdeteriorationinassets.Appropriate
claimifweweredeemedto insuranceisalsomaintained
benegligentinour
managementofourproperty

Total Total
Notes Unrestricted Unrestricted
Funds Funds
2021 2020
£ £
Income:
Investmentincome 2 2,100,135 1,978,643
Otherpropertyincome 3 313,500
Otherincome 4 11,717 18,979
Totalincome 2,111,852 2,311,122
Expenditure
Costsofraisingfunds:
Investmentmanagementcosts 544,715 765,846
Expenditureoncharitableactivities:
Grantsandsupportcosts 1,753,835 1,714,735
Othercosts 13,167 13,362
Totalexpenditure 2,311,717 2,493,943
Movementintotalfundsfortheyear-
Net (outgoing)resourcesfortheyearbefore (199,865) (182,821)
Investments
GainsI
(Losses)oninvestmentfunds
7,493,861 (1,326,881)
NetincomeI(expenditure)fortheyear 7,293,996 (1,509,702)
Revaluationofinvestmentproperties 3,922,948 (349,000)
Netmovementinfunds 11,216,944 (1,858,702)
Reconciliationoffunds
Totalfundsbroughtforwardat1April 45,537,111 47,395,813
Totalfundscarriedforwardat 31March 56,754,055 45,537,111

Notes 2021 2020
£ £
Fixedassets
Investmentproperties 10 16,320,749 12,397,801
Marketinvestments 11 39,667,620 32,673,759
55,988,369 45,071,560
Currentassets
Debtors:
Amountsfallingduewithinoneyear 12 663,318 545,295
Cashatbankandinhand 715,664 494,013
1,378,982 1,039,308
Creditors-amountsfallingduewithinoneyear 13 (399,062) (356,038)
Netcurrentassets 979,920 683,270
Totalassetslesscurrentliabilities 56,968,289 45,754,830
Creditors-amountsfallingdueafter
morethanoneyear 14 (214,234) (217,719)
Netassets 56,754,055 45,537,111
Funds
Unrestrictedfunds 56,754,055 45,537,111
Totalfunds 56,754,055 45,537,111

2021 2020
Reconciliationofoperatingdeficittonet
cashoutflowfromoperatingactivities
Operating(deficit) (199,865) (182,821)
Increaseindebtors (118,023) (390,232)
Increaseincreditors 45,539 161,003
Deferredincomereleased (6,000) (6,000)
Netcashoutflowfromoperatingactivities (278,349) (418,050)
Cashflow
Netcashoutflowfromoperatingactivities (278,349) (418,050)
WithdrawalsfromSarasinPortfolio 500,000
Increase/(Decrease)incash 221,651 (418,050)
Reconciliationofnetcashflowtomovementinnetfunds
Increase/(Decrease)incashintheyear 221,651 (418,050)
Changeinnetfunds 221,651 (418,050)
Netfundsbroughtforwardat1April 494,013 912,063
Netfundscarriedforwardat31March 715,664 494,013

2 Investmentincome
2021 2020
£ £
Rentreceivable 840,175 1,045,800
incomefrominvestmentportfolio 1,259,960 932,843
2,100,135 1,978,643
3 Otherpropertyincome
2021 2020
£ £
Otherpropertyincome - 313,500
- 313,500
4 Otherincome
2021 2020
£ £
Otherincome 11,717 18,979
11,717 18,979
5 Investment managementcosts
2021 2020
£ £
Propertyportfolio 260,516 540,518
ListedInvestmentportfolio 194,468 137,544
Supportcosts 89,731 87,784
544,715 765,846

2021 2020
£ £
Statedaftercharging:
Auditors'remuneration:
Auditservices 7,500 7,400

InvestmentProperties
2021 2020
£ £
At1April 12,397,801 12,746,801
Unrealisedgains/(losses)intheyear 3,922,948 (349,000)
At31March 16,320,749 12,397,801
Includedin
Fixedassets 16,320,749 12,397,801
16,320,749 12,397,801
Allinvestmentsareincludedinunrestricted funds.
Summary: 2021 2020
£ £
Property;
Freehold 16,320,749 12,397,801

2021 2020
£ £
At1April 32,673,759 34,000,639
Realisedgains 1,091,358 451,921
Unrealisedgains/(losses)intheyear 6,402,503 (1,778,801)
Cashwithdrawn (500,000)
At31March 39,667,620 32,673,759
Marketvaluerepresentedby:
2021 2020
£ £
Historicalcostofassets 33,108,882 32,050,922
Unrealisedgains 6,558,738 622,837
At31March 39,667,620 32,673,759

2021 2020
£ £
Cash&cashequivalents 245,354 1,237,847
FixedIncome 4,936,709 4,947,966
UKEquities 8,217,569 5,794,373
GlobalEquities 22,135,662 15.835.585
AlternativeInvestments 4,132,326 4,857,988
At31March 39,667,620 32,673,759
Includedin
Fixedassets 39,667,620 32,673,759
39,667,620 32,673,759

Debtors
2021 2020
£ £
Tradedebtors 47,855 23,388
BadDebtsprovidedfor (6,309) -
Prepayments&Accruedincome 15,027 65,468
Taxation - 23,003
Otherdebtors 606,745 433,436
663,318 545,295
Creditors:amountsfallingduewithinoneyear
2021 2020
£ £
Tradecreditors 33,744 105,376
Rentsreceivedinadvance 110,042 124,538
Othercreditorsandaccruals 106,724 119,536
Taxationandsocialsecurity 142,552 588
Deferredincome(note15) 6,000 6,000
399,062 356,038
Creditors:amountsfallingdueaftermorethanoneyear
2021 2020
£ £
Deferredincome(note15) 20,000 26,000
Othercreditorsandaccruals 150,800 150,800
Buildingrepairreceiptsinadvance 43,434 40,919
214,234 217,719

Deferredincome
2021 2020
£ £
Balanceat1April 32,000 88,000
Amountreleasedinyear (6,000) (56,000)
Balance at31March 26,000 32,000