THE vARRIERONEs FOUNDATION (A COMPANY LIMITED BY GUARANTEEI COMPANY REGISTRATION NO 03377965 REGISTERED CHARITY NO 1064595 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 ¢A8BQPIfj8' 03109r2022 COMPANIES FKMJSE A13
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THE VARRIER-JONES FOUNDATION (A COMPANY LIMITED BY GUARANTEE) Contonts Page Legal and administrab've inlormatb)n Trustees report 2-10 Report of the auditors Statement offin8n¢ial a¢b"vibes 14 Balance sheet 15 Cash flow statement 16 Noles to the financaal statements 17-25
THE VARRIER-JONES FOUNDATION IA COMPANY UMITED BY GUARANTEEI LEGAL AND ADMINISTRATIVE INFORMATION Trustees R Norton {Ch3irl D Lovrther (Vice-chair) M Alexander P Agar S Beath S Lewis C Sheasby (Hon Treasurer appointed 27 May 20211 J Bugg (Appointed 27 May 20211 D Bfowne (Appointed 27 May 20211 Company Secretary M Blake R8gistergd Office Upper Pendrill Court Ermine Street North Papworth Everard Cambridge CB23 8UY Auditors Ensors Accountants LLP WaTh*ick House Emiine Business Park Spitfire C105e Hunting(ton Cambridge PE29 6XY Banker5 Nab'onal We5tmin51er Bank PLC 92 High Street Huntingdon PE29 3DT Sollcltors Ellisons Soli(J¢(Ms Headgate Court Head Street Colchester C01 1NP Property advi5er5 8K115 LLP Trumpington Road Cambridge CB2 9LD Investment Managers Sarasin & Partr LLP Juxon House 100 St Paul's Churchyard London EC4M 8BU ststu$ A gIStered charity A company limited by guaranlee No. 1064595 No. 03377965
THE VARRIERJONES FOUNDATION IA COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT INTRODUCT1014 The Trustees of The Varrier-Jones Foundab"on llhe Foundation.) have pleasure in presenling their report and the audited financial statements of the charity for the year ended 31 March 2022. The company was incorporated on 29 May 1997. The ¢ompany registralKJn number is 03377965 and the registered tharity number 1$ 1064595. The financial statemen15 comply wrth the Charrties Acl 2011. the Companies Act 20C6, the Memorandum and Articles of Asso¢iation. and A¢¢ounling and Reporting by Charities.. Statement of Recommended Pra¢ti¢e applicable to charilies preparing their accounts in accordance wrth the Financial Reporting Standard applicable the UK and Republic of Ireland IFRS 102) (effective 1 January 20JS1. DIRECTORS AMD TRUSTEES The Director5 of the rnpany are the Tru51ees of the Foundation for the purpose of charity law and throughout this pOrt are ¢olle¢tivety referred to as the Trustees. The Trustees serving during the yearweo as follows". R Norton (Chair) M Akxander PLAgar S Beach O L¢)wther (Vice Chairl S Le*Ms O Browne IApp(trinte<l 27 May 2021) J Bugg (Appointed 27 May 2021) C Sheasby IApFKinted 27 May 2021) OBJECTIVES AND ACTIVITIES The principal objective of the Foundation is lo provide support for the work of the Papworth Trust, whose mission is for disabled people to have equality, choice and independence. The Tru51 delivers this through the provision of supported housing, care setviee5, SUPPOrt lo access employment and a range of day services provision The F¢undation meets rts ¢ommrtment by maintsining investments. in both market investments via its appointed investment managers. and in land and property assets, mostly situated within the village of Papworth Everard. with a view lo making a financial retum which can be used lo support the work of The Papworth Trust. In addition to 115 principal objecaNe the Foundakn"on also aims to support disabled people more generally. and achieves this Ihrough making finan¢ial contributions towards the work of other organisations providing seivices for disabled people. In meeting its obligations to provide finance to organisations that deliver benefits to disabled people, the Foundation seeks to manage its investment and property portfolios lo generate sufficient relurn to allow regular contributions to be made whilst also seeking lo preserve, in real terms. the long-term caprtal value of its assets. nOlthstandIftg rt is tree to distn.bute any or all of rts capjtal in order to best meet these primary objects.
THE vARRIERONEs FOUNDATION IA COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT APPOINTMENT AND TRAINING OF NEW TRUSTEES The eoaid of Trustees is responsible for the appointment of any new tiustees and for ensLJ¥ing that a broad range of relevanl skills and expertise are represented on the 8oard. In reviewing the membership of the Board. and any nominats.ons for new trustees or for the eleth.on of the Chair. the Board seeks to.. l. Ensure a good distritwtion ol skills and experience amongst Trustees". 2. Ensure the timely and effeclrve succession of the Ghair of the Board." 3. Implement an induction programme and ensure relevant infomiation is provided to new Trustees. and monitor on any onoig training needs for 811 Trustees. In order to cary this out effectively. the Foundalion has established an Appointments Committee, which seeks lo facililale the above, recognising the desire lo achieve equality and diversrty at Board level and ensuring reuuitment to Ihe Board 1$ transparent and objedive. The Foundats"on is also continually developing its induction programme for Board members. and uses resourtes supplied by Its key property and investment advisors to provide incoming Trustees wrth the information they need to deliver their roles effectively. The Foundation is also seeking to develop its internal systems more fully to provide Trustees with acce5S to information digitally. as well a5 ublising techndogy to hold Board and Sub-commiitee meetings virtually. whith has been partiajlarly important during the pandemi¢. PUBLIC BENEFIT The TrusteÈs confim they have considered their dubes and have regard to the guidance contained in the Charity Commission's general guidance on public benefft when remen9 the Foundation's aims and objectives 8nd in planning future activities. The Foundation supports work lo provide equality. choice and independence for disabled people, ensuring access lo facilities and opportunil*s that may be available to the public in general. The Foundation fvlffils thi$ purpose through the awarding of grant fundirig. largely but not exclusively. to the Papworth Trust, in support of programmes and activth.es that improve the lives of dtsabled people. The Iru51ees ¢onsider appli¢alions for funding. from the Trust via consideration of rts strategic plan and budgets. and from other organisalions via a fomal applications process, and reviews the outcomes achieved via the submission of regular report5 and presentalions to the Board. The Tru5tee5 are therefore conffidenl that the activities of the Foundation a carried out for the benefft of others. monitored by regular reporting on impact and effectiveness of activities undertaken by benefary organisations. and the Trustees have due regar(1 to publi¢ benefit tests when making defisions. FIXED ASSETS Fixed assets are held in older to achieve the objectives of the FoundatK)n. The movements in fixed assets during the year are set out in notes 9 and 10 to these financial stslement$.
THE VARRIERJONES FOUNDATION IA COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT ACHIEVEMENTS ANO PERFORMANCE In the Trustees, Report for the year ended 31 Marth 2021, The Foundation set out the following objectives for the year lo Mar¢h 2022 8rnl achievement against these is shown in the table below.. Objective Pursue planning enquiries wlh loral authorth.es to seek to bring potential devebpment sites into being Review the offering at Pendrill Court to ub"li5e currendy vaGant spa¢e Achievement Progress has been made on developing plans for one of our vacant Stte$. with a view to submitting a planning application in the corning financial year Inrtial scoping to reconfigure some of the office space lo accommodate mts flexible arrangements has been undertaken. though the rrKJdel needs fvrther development in order to be sustainable Continue the ath.ve marketing of Papworth Hall in order to secure a suitable occupant. Marketing has been owoing, and we are currently discusstftg Heads of Temis wtth Intested parties, vhth a view to secJJring a tenancy or sale in the coming financial year A sub-group of the Board has been developing more detailed reserves and disth"bulion policies, whith are designed to ensure the long-term affordability of the donab"on$ made whilst conb"nuing to maximise impact Build on the Business Plan and Reserves wo to devebp and embed a long-term strategy for the Foundation. suitably considering returns required over the long-temi. and the risks to delivery of these Maintain the real value of donations to the Papworth Trust The value of the donation to Papworth Tru51 was maintained in the year. supporting the Business Pkn of the Trust The donation for 2022123 to Papworth Trust is reduced fiom that in previous years. reflecting the assessment of short-tem requirements and the affordability for the Foundation. During the course of 2022123 we anticipate establishing a framework to support the longer term setts'ng of donalK)n levels
THE vARRIERONEs FOUNDATION
IA COMPANY LIMITED BY GUARANTEE)
TRUSTEES, REPORT
FINANCIAL REVIEW
The charity made an operating deficrt for the ye¥r of £889,512 (2021.. deffiat of £199.8651. The deficit on
operations is slated after direct grants of £1,785.574 {2021 £1.749,1121. The Foundation manages its financial
performance and distribution policy on a total turn basi5, in order to provide the best opportunity lo meet its
objectives over the medium to long temi. In the finar1 yearto 31 March 2022. totsl movement in funds was
a gain of £2.143.261 12021 gain of £11.216.9441
The value of Irsted market and property investments still held increased by £3.032,773 in the year 12021..
inuease of £11.416,809).
The Foundation made donations as fdlows".
The Papworth Trust
Helping Disabiliti"es Trust
Pear Tree Speaal Scho
Papworth Community Group
Kingsbury Speual S¢hooJ
Disabilty Advice Service
The Back-up Trust
Total
1,755,000
5,000
10.000
228
7,000
2,500
5,846
1.785.574
Reserves policy
The Trustees holtl all of the serveS of the Foundation as unre5tncted funds. The TrLJslees seek lo ensure
sustainability of their donations and therefore. as far as possible. seek to protect the underlying capital held by
the Foundation. In seekjng to do this, the Trustees regularly review the reserves policy of the charity, and
currently designate elements of the reserves held a5 desGribed below. in order to improve the visibilrty of the
resilience of the fvnds at their disposal. The Trustees intend to rewew this policy during the course of 2022123.
Designatedlunds- core capital
The Foundation uses its a55ets to generate income to support the work of Papworth Trust. and disabled
people more generally, and seeks to do Ihis by investing fvnds in market investments and property holdings
lo generate a relum over the long-temi_ The Foundation. therefore. seeks to preserve the real valije of the
estimated original capital and the Trustees have designate
THE vARRIERONEs FOUNDATION IA COMPANY Llh11TED BY GUARANTEE) TRUSTEES, REPORT Comments on events that have affected financial perfornnCe The total income for the year shows a signtficant reducbon from the prior year. driven by the ending of soffle tenancies, and the subsequent challenge of finding new tenants during pandemic-affecled periods, and also a significant reducb.on in investment incorne. reflerting lower distn"bub"on5, a strategic shift away from UK listed assets to protert value. and reduced options income. Where possible we have worked wlh our tenants to supporl the long-term sustainability of ongoing leases but we did have had some tenants who didn't renew leases, and we continue to hold vacant space, whith 15 proving dthwlt to let at present. No alternative income 5trearns have yet been idenb"ffied from sites previously let out to Papworth hospital. though prospects for Papworth Hall are being explored. Operational costs have shown some inuease in the year. largely property related. E5senli81 repair works weie carried out at Pendrill Court, which were not covered by servi¢e charge fees, and we have also bome the cosi of professional fees in supporting lease renewals secured for properties at the Business Park, wrth the three marn tenants all renthmng this year. Underlying operating cost5 refflain high due to the ongoing costs of maintaining and operating srtes at Papworth Hall and void units in Pendrill Court. The value of the market investment fijnds held increased by £1,303,270 representing an increase in value of 3% on the pfewous year. This growth supports the lotsl retum tsrgets of the Foundalion and allowed donalK)n levels to be maintained during the year. Investment policy The Foundation seeks to produce the best risk adjusted financial retum5 frorn it5 finanrial investments. These are inve51ed both in property assets and listed rnark investments. The property assets ale actively managed, yieldsng a rental return and surplus which, together wrth income generated frorn the listed investment portfolio, is used to rneet ts ¢haritable objectives by providing grants to the Papworth Trust and lo other ¢harilies. The Trustees have di5c¥elionary powers to invest the Foundats"on's monies in the purchase of investments or property of whatever nalure. The property portfol is managed to achieve a commeNal rate of retum, whilst preserving the long-lerm value of the assets. Listed investments ale managed on a Total Return basis. The investment and %Jistribuh"tsn objecb"ves. and the asset allocation parameters, are agreed by the Board. through the Investment Committee, and encapsulated in a Statement of Investment Policy, agreed with external investment advisors. The investment objective is lo maintain the real value of the assets over the long term. thus preserving the purchasing power of distributions. The Foundation increased its donation to Ihe Papworlh Trust by 2% in the year. A small number of other donations wefe made, in support of the obje¢ls of the Foundation.
THE vARRIERONEs FOUNDATION IA COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT Risk Management The Foundation manages the risks that it faces by considering the key risks anticipated al each Committee meeting, escalating these lo the Board where necessary. The Foundation uses a risk register to identify the key risks faced by the Foundab"on and the methods that are employed lo mrtigate those risks. This register is reviewed at least annually by the Truslees. The Trustees retain oversight of the ath'vits'es of the Foundab'on by their day-to-day involvement in the operations of the Foundation, as required, and through a system of internal controls and delegation, designed lo manage key risks. lo give reanab assurance as to the accuracy offinan(ial information and to safeguard the Foundation's assets and reputation. Principal risks faced by the Foundation The Foundabon's key risks are as follows.. Risk Impact Financial uncertainty can lead to a reduction in income from the market investment and propety portfolios, and reduction in valuations acros5 our portfolio, adversely impacting our ability to mainlain donalions Mitigation The Foundation has a broad asset allocation and the Joint Investment Committee closely monrtors the performance of it5 Portfolio and market condrtionslrisks wilh help from investment professiona15. The portfolio is invested wth a vbew lo producing the desired total retum over the long term. The property portfolio is diversified, serving to protect overall valuations Steps are being taken lo ensure the retention of existing tenants, and ¢onsiderali¢n is being given to alternative uses for spaces th longer voids. Sour¢Ès of capital receipts are being explored. to yield funds to invest for a return, retaining the focus on our total retum target. Donation levels will need to be considered in line with the real return we can enerale The Board has been strengthened by the addrtion of three new Trustees in the year with complementary skills and experience. deepening the cover that we have. The Board considers governance and succession planning gUlady. lo ensure that this skill set is retained. and also ensures it employs appropriate staff to support. Strategi¢ partnership5 with key adviso have been established to ensure Ihe Trustees are properly advised. The Ft>undab"on also purchases servi¢es from extemal parties to support operations, where uired. Continued global financial uncertainty. irnpacted by the Covid-19 pandemic. fallout from Brexit, the Ukraine conflict and other political disruption5 Inability to let cijrrenlly vaGanl property. Reducts"on in rentsl income generated as a ol less than target occupancy levels ¢ould result in iftsuffiuent cash generab.on to meet planned donations Loss of key S.11$ to manage and govern the Foundation. Failure to retain adequale resour of suitably skilled Trustees and staff. as a resutt of failin9 to recruit new truslees, or to plan for stsff ver. could lead to pwr decisions on the property or market investment portfolios. sulb.ng in capital loss
THE vARRIERONEs FOUNDATION {A COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT Rl$k Impact Disruptson to seryices that we do not control could lead to a failu of provision, giving rise to an inability to undertake core requirements Mitigation Wrth significant reliance on exlemal systems and Ihird-party provision of services. goveming these with effective service level agreements, including perfomiance requirements. help5 to mify.gate risk. We will continue to develop infomation systems on hosted platforms to enabje wide access and In¢ased resilience Appropnate delegations of authority drafted, with key payments and investment in5trucb.ons approved by Trustees. Close monrtoring by management via regular management accounts and on-line access to investment reports an¢J transaction infomiation is maintained, and any issues or risks reported lo Trustees. Reliance on third party support for key SySlem5 and pro¢esses Fraud or control risk due to small numbers of staff employed, with signrficant assets under management. Material finanaal loss, impacting the value of capital held by the Foundation. Caused by the misappropriation of fijnds, resu"n9 in a signrficarttly reduced capital base. and therefore redijced abilty to make donatnS in the ftrtu Inabilrty lo generate capital receipts from developrnent land Currently held Re(luction in potential disposal value of identified development srtes. due to failure to secure planning consent, could resutt in failure to build caprtal adequately to maintsin ¢urnent donation levels Acrydent or injury 5UStained by a Trustee I staff member I member of the public resulb.ng in signthcant injury could lead to Slgnificant damagÈs I compensation daim rf we were deemèd to be negligent in our mana ement of our Recruthienl of Trustees with property experience, including developrnenl experience, coupled wrth the procurement of professional advice, positions us appropriately to mitigate thi5 risk. Public liability risk due to ownership of woodland and open spaces, along with some empty properties Risk assessment5 have teen undertaken acr055 the estste. in¢luding the woodland. and aciion plans developed and actioned lo miligale fisk. Regular inspections and patro15 are maintained to ensure that there is no material deterioration in assets. Appropriate insurance is also maintained Intemal Controls The Board utilises the support of Papworth Tnjst for management accountsng and Human Resources support, for which it pays an appropnate fee. 11 is recognised that there are inherent risks with a small 518ff team, therefore a s¢heme of delegation has been established to address the dthculty of achieving Sultable segregation of duties, and appropriate authorisatson levels. vthich also involves the participatson of the Trustees. The Tru51ee5 maintain a risk register, which Is reviewed periodically, and the Board also gUlartY ceives management accounts reporting, comparing actual suS to budget and forecasts, lo ensure appropfiate budgetary control is being maintsined. The Tnjstees have reviewed the intemal controls in operation during the penod, and are satisfied that there a no issues leading to any material uncertainly regarding these financial statements.
THE vARRIERONEs FOUNDATION IA COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT PLANS FOR FUTURE PERIODS In the next finanu81 ye8r. The Foundat plans to.. Pursue planning enquiries k)cal auihorilies lo seek to bring polenb.al development siles into being Review the offering at Pendrill Court lo ub.lise currently vacant space ContinLFe the active marketing ol Papworth Hall in order to se¢ure a suiiable oxupant. Build on Ihe Business Plan and Reserves work to embed the long-term strategy for the Foundation, suitably considering relums required over the long-lerm, and the risks lo delivery of these Fomalise a dislribvlion policy that better supports the long-lem 5UStainabilty plans for the Foundats'on Mana9e the Iransition to Debbie Lowlher. as new chair. following the retirement of Richard Norton al the end of his term of offi, as well as recru"ng fvrther trustees lo maintsin the target compliment STRUCTURE. GOVERNANCE AND MANAGEMENT The Foundation is a company limrted by guarantee, governed by rts Memorandum and Articles ofAsso¢ialion. It is a registered charily the Charity Commission. The Foundatson is governed by its Board of Trustees, ¢onsistin9 of the Trustees. as ststed on page 1 of the financial stslemen15. which meets quarterly. The Trustees. a5SiSted by staff. are re¥sle for formulating the strategy and policies of the tharily as a wh(>le, in¢luding the approval of budgets and exercising of financial control. In addition, the Foundation commissions external advisors for support and advice in key areas of its operations including investment and property management. The Trustees also maintain Committees to oversee indiwdual elements of its operation. The Committees cuirenlly in operation are as follows.. Pro ert Committee The Property Committee oversees the propeTty portfolio of the Foundation. WQTkiny with external advisors lo sel the 51rategy, reporting perf0mnCe and making recommendations to the Board. The terms ofengagemenl of these advisors, and their perfornan¢e, a eWed re9ularty lo ensure the primary obje¢tives are being met. This Committee reports to the Board at each Board meeting. Investment Committee The Joint Investrnenl Cornmittee oversee5 the Investment portfolio of the Foundation, and also that of the Papworth Trust. with the fun(Js invested with similar strategies to maximise synergies and effi¢ien¢ies. The Committee works with external adwsors to set the slrategy, lo report on performance and to make ¢ommendalions to the Boaid with 93rd to policy and asset allo¢alion. The terms of engagement of these advisors are rewewed regularty to ensure the primary obpctives are being met. and the appointments are re- tendered periodically in line with good governance practice. The Comrnittee monrtors the performance of the advisors. and reports on investment performance to the Boafd at each Board meeting. ointments Committee An Appointments Committee manages the FSs of recruiting new Trustees and electing ofrers for the Foundation. This meets periodically, as required, and brings recommendations to the Board for new appointments, based upon an assessment of skills required and contributions new Trustees may bring. Grant Awardin Commiltee A Committee has been established lo set the criteria and consider grant awards to organi5ations that apply lo the Foundation. This Committee meets tswce a year and consTrders appli¢ati¢)ns on their strategi¢ fit, viability and impact, and makes reMMendatIOnS to the Board for approval. Fundraising approa¢h The Foundation's income is generated mainly through retums on its investment and property portfolios that are appropriately managed to fully meet wth the objectives of the charitable organisation. No formal fun raising actswty is deployed lo generate income from members of the publ. Whilst members of the public are able to donate contributn$ voluntarily ifthey $0 wsh. the Irusl does not promote fund raising. No professional fun(traisers are employed by the Foundation.
THE vARRIERONEs FOUNDATION IA COMPANY UMITED BY GUARANTEEI TRU5TEES' REPORT Name of the trustet who manages thè Foundatlon on a day to day basis Richard Norton is Chair of the Foundatr'on. overseeing the day to day operations. Michael Alexander oversees all property matters as Chair of the Property Committee, and Debbie LovAher oversees financial investments as Chair of the Joint Investrnenl Committee_ Chris Sheasby was appointed as Treasurer in the year, and supports the Board and Committees as appropriate. The Trustee5 are supported by employed staff. as well as outsourced governance and financial managemenl support from the Papworth Trust. Trustees. respon$ibilities The Trustees (who are also directors of The Varrier-Jone5 FoundalK)n for the purposes of company law) are responsible for preparing the Trustees, Report and the financial statements in accordan¢e with applicable law an¢J United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted A¢¢ounling Practice). Company law requires the Trijstees to prepa financial statements for each financial year. which give a true and fair view of the state of affair5 of the charrtable MpanY and of the incoming resources and application of re50urce5, including the income and expenditure. of the charitable company for the year. In preparing these rin8n¢ial ststements, the trustees are required lo.. select suitable accounting poli¢ies and then apply them consistenty. obseNe the methods and principles in the Charitie5 SORP". make judgements and estr'mates that are reasonable and prudent", state whether applicable UK Accounting Standards have been followed, subj'ect to any material departures disclosed and explained in the finanrjal slalemenls", prepare the financial statenents on the going conttrn basis unks$ it 1$ inappropriate to presume that the ¢haritable o)mpany will continue in operation. The Trustees are responsible foi keeping adequate accounting records that disclose wrth reasonable accuracy at any time the financial p0SOn of the charitable company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hen¢e fof tsknng asOnable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware. there is no relevant audit infomialion of which the charTiable cornpany's auditor is unaware." and The Trustees have taken all steps that they ought to have tsken lo make Ihernselves aware of any relevant audit infomab.on and to establish Ihal Ihe audrf(or is aware of that infom)ation. AUDITORS Ensors Ac¢ountsnts LLP were reappornted as audrtors of the charitable company and in accordance with section 485 of the Companie5 Act 2006 a resolution proposing that they be reappoinled will be put at a general meeting. OUR THANKS Finally, the Trustees would like to thank the staff for their dedi¢ation, hard work and commitment to the work of the Foundation. Registerèd offic•: By ordèr of thè Board Upper Pendrill Court Emiine Street North Papworth Evèrard C3mbridg• CB2 3UY R Norton Chair Date: 18 August 2022 10
THE VARRIER4ONES FOUNDATION {A COMPANY UMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE VARRIERJONES FOUNDATION Opinion We have audited the financial statements of The Varrier-Jones Foundation for the year ended 31 March 2021 whh cornpri5e the Statement of Financol A¢b"v.e$. Balance Sheet and Cash Flow Statement and related notes. The financial pOrting Iramework that has been applied in their preparation is applicable law and United Kingdom Accounting Slandards, including Financial Reporting Standard 102 The Financial Reporting Slandard applicable in the UK and RepublK of Ireland {Unrte(S Kingdom Generally Accepted Accounting Pr8¢1icel. In our opinion the financial stalements.. give a true and fair view ol the state of ihe charitable CoMpanS affair5 as al 31 March 2021, and of ils income and expendrture for the year then ended". have been prOpeY Ppare{l in aCrIance wilh Untted Kingdom Generally k¢epted AcUnting Pra¢tice." and have been prepared in accordance with the requirements of the Companie5 Act 2006. Basis for opinion We conducted our audit in accordance wth International Standards on Audibng IUKI {ISAs IUKII 3n<J appli¢able law. Our rÈsponsibf"lilies undef those stsndards are furtherdescribed in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial slalemenls in the UK, including the FRC'S Ethical Stand3r(1. and we have lulfilled our other ethical responsibiliti'es in accordance wth these iequirements. We believe that the audit evidence we have obtained is suffirAenl and appropriate to provide a basis for our opinK)n. Conclusions relating to going concern In audib.ng the financial ststements, we have concluded that the Directors. use of the going concem basis of accounting in the preparab'on of the finanaal statements is appropriate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that. individually of colleclively, may cast Sl9nificant doubt on the charitable company's ability lo Continue as a going con¢em br a peftod of at least twelve months from when the ffinancial statements are authorised for issue. Our responsibilities and the responsibilibes af the Directors vrith respect to going concern are described in the reVant sections of this report. Other information The other inlormation comprises the infomats.on included in the annual POrt other than the financial stslements and our auditor's report thereon. The d*ectors are responsible for Ihe other infomiation contained thin the annual report. Our opinion on the finanaal statements does not cover the other information and, except to the extent otherwise explicitly slated in our report, we do not express any form of assuran¢e onclusion theOrn. Our responsibilily is to read the other infomation and, in doing so, consider whether the other information is materially inconsistent th the finanryal slalernenls or our knoedge obtained in the course ofthe audrt, orotherwse appearsto be materially misststed. Ifwe identrfy such materi31 inconsistencies or apparent material misstatements. we are required to detemine whether this gives rise to a material misstatement in the finanaal statements themselves. If, based on the work we have performed. we conclude that there is a material misstatement of this other infomialion. we are required to report that fa¢A. We have nothing to report in this regard. Opinions on other matter5 prescribed by the Lompaniè5 A¢t 2006 In our opinion. basèd on the work undertaken in the course ol the audit.. the infoTmab'on given in the Trustees. Report for the financial year for whKh the finala1 statements are prepared is consistent with the financial statements.. and the Tru5tees' Report h35 been prepared in accordance with applicable legal UlMents. 11
THE VARRIER-JONES FOUNDATION {A COMPANY UMITED BY GUARANTEEI INDEPENDENT AUDITOR'S REPORT TO THE MEM8ERS OF THE vARRIERONEs FOUNDATION {continuedl Matters on which we are requ•red to report by exception In the light olour knowledge and understanding of the charitable company and its environment obtained in the course ol the audit. we have not identified material misstatements in the Trustee5' Report. We have nothing lo report ffi respect of the following matters in relation to which the Companies Act 2006 require5 US to report to you rf, in our opinion.. adequate accounting records have not been kept, N retums adequate forouraudit have not been received from branches not visrted by us". or the financial statements are not in agreement wth the accountsng records and relum5- or certain disclosures of Trustees. remuneration specrfied by law are not made, or we have nol received all the inforfflation and explanabons we require for our audit., or the Trustees were not enlrtled to prepaie Ihe financial slalements in accordance with the small companie5, regime and take advantage of the small companies, exempl5 in preparing the Trustees. Report and from the requirefflent to prepare a strategic rert. Responslbillligs of trustees As explained more fully in the Truslees, responsibilrties statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied thal they give a true and fair view, an¢J for su¢h intemal control as the Trustees determine is necessary to enable the preparation of financial statements that are tree from rnatefial mi5Statement. whether due to fraud or error. In preparing the finanaal stalements. the Tru5tee5 are respongble for assessing the chartiable company's ability to continue a5 3 going ¢on¢em. disdosing, as applicable. matters related to going concern and usin9 the going concern basis of accounts.ng unless the Trustees either intend to liquidate the ¢haritsble company or to cease opeiations, or have no realistic alternative but lo do so. Auditorts rèsponsibilities 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 mi5Stalement. whether due to fraud or error. and to issue an auditor's report that includes Ouf opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA5 IUKI will aayS delect a material misstatement when rt exists. Misstatemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to inlluence the econornic decisions of useis tsken on the basis of these financial statements. Irregularities. including fraud. are instances of n0rPcp1lance wth laws and iegLdalion$. We design procedures in line with our responsibilitie5. Qutlined above. to detect material misslatements in respect of irregularities, including fraud. The extent to whi¢h our procedures are Capab of detecting IrreguLanb"es. induding fraud, is detailed below. In Yentifying and assesstng risks of merial misslatement in respect of irregularilies, including fraud. the audit engagement team.. obtained an understanding of the nature of the industry and sector. ineluding the legal and gulatOrY framework that the company operates in and how the company are complying with the legal and regulatory framework" inquired of management. and those charged governance, about their own idenlifi¢alion and assessment of the risks of i(regularibes. inc1j1ng any known actual. suspected or alleged instances offraud.. di5CU5sed matters about rn<0mpliance wth laws an¢J regulatn$ and how fraud might occur indudiny assessment of how and Whe the financial statements may be su$¢eptible to fraud. However. it is the primary responsibil.rty of management, the oversvJht of those charged wth governance. lo ensure that the entty's operab.ons are condLthd in accordance with the provisions of laws and regulatsons and for the preventson and detectKJn oftraud. 12
THE VARRIERJONES FOUNDATION IA COMPANY LIMITED BY GUARANTEE} INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE VARRIERJONES FOUNDATION l¢ontsnuÈd) A further description of our responsibilrties for the audrt of the financial stslemenls is located on the Financial Reporting Council's website al- http$".1v.frc.ory uk10ur-worklAudAudrt-and-assuranceIS13nards-and- guidan¢elSlandacds-and-guidance-for-auditorslAuditors-responsibilities-for-audiUDescription-of-auditors- resFonsibilities-for-audr(.aspx. This descriwn fomis part of ow auditorfs report. Use of our report This report is made solely to the charilable company's members, as a body, accordance wth Chapter 3 of Part 16 of the Companies Act 2006. OUT audrt work has been undertaken so that we might 518le lo the ¢harrtable comp#ny's members those matters we are required to stste lo 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. James Francis for and on behalf of Ensors A¢¢ountsnts LLP Chartered Accountants Statutory Auditor Wawck House Emiine Business Park Spiffire Close Hunb"ngdon PE29 6XY Date.. biL 13
THE VARRIERJONES FOUNOATION IA COMPANY LIMITED BY GUARANTEEI STATEMENT OF FINANCIAL ACTIVITIES (including income & expenditure account) FOR THE YEAR ENDED 31 MARCH 2022 Total Unrestri¢tod Funds Total Unrestricted Funds Noto$ 2022 2021 In¢om*-. Investment income Other income 1.568.124 15,276 2,100,135 11,717 Totsl incom• 1,583.400 2.111.852 Expenditure Costs of raising funds.. Investment management costs 669.586 544.715 Expenditure on chailtable adwrtffjs." Grants and support costs 1,790.372 1.753,835 Other costs 12.954 13,167 Total exndItUre 2,472.912 2.311.717 Movement in total funds for the year. Net loutgoingl resources for the year f¢re Inv•stm•nts {889.512) 1199,8651 Gains on investment funds 1,303.270 7.493,861 Net income for the year 413,758 7.293.996 Revaluation of investsnenl prope.e$ 1,729,503 3.922,948 Net movement in funds 2.143,261 11.216.944 Ro¢oncÉliation of funds Total funds brought forward at 1 April 56.754.055 45,537.111 Total lunds carried forward at 31 March 58.897,316 56,754.055 The statement of finan¢ial ath"vities includes all gains and losses re¢ognised in the year. All of the above resuW$ derive from continuing operations_ The notes on pages 17 to 25 fomi part of these finanaal statements. 14
THE vARRIERONEs FOUNDATION COMPANY REGISTRATION NUMBER 03377965 {A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET AT 31 MARCH 2022 Notes 2022 2021 Fixèd assets Investment properties Market investments 18,050,252 40.970.890 16,320,749 39,667,620 10 59.021,142 55.988,369 Current assets Oebtors.. Amounts falling due wihin one year Cash at bank ar in hand 228,769 302,368 663,318 715.664 531.137 1,378,982 cdItorS - amounts falling thje wthin one year 12 1444,2221 1399.0621 Net ¢urr•nt assets 86.915 979,920 Total assets less curront liabiliti•s 59.108.057 56.968.289 Crnditors - amounts falling due after more than one year 13 1210.7411 1214.2341 Net assets 58,897,316 56,754.055 Funds Unrestricted funds 58,897.316 56,754,055 Total lunds 58,897,316 56,754,055 Approved by the Board of Trustees on 18 August 2022 arKI signed on ris behaff by: Dgbble Lowlher Tru$tg9 Richard Norton Chair The note5 on pages 17 to 25 fomi part of these financtal statements. 15
THE VARRIERJONES FOUNDATION IA COMPANY LIMITED BY GUARANTEEI CASH FLOV4 STATEMENT FOR THE YEAR ENDED J1 MARCH 2022 2022 2021 Reconciliation of operating deficit to net cash oufflow from operating activlties Operating Ideficitl Decrease I Ilncrease) in debtors Increase in creililors Deferred income released 1889,5121 434.549 47.667 16,000) 1199.8651 1118,0231 45,539 16.0001 Net cash oufflow from operating actIveS (413.296) {278,3491 Ca$h flow Net cash oufflow from operating activities Wrthdrawals from Saran Portfolio (413,296) 1278,3491 500,000 Inease l (Decrease) in ¢a$h 1413.2961 221,651 Reconciliation of net cash flow to movement in net fun(ts (Decrease) I IneJease in ¢ash in the year 1413.2961 221.651 Change in net funds (413,2961 221,651 Net funds brought forward at 1 Awl 715,664 494,013 Net lunds Carried forward at 31 March 302,368 715,664 The notes on pages 17 to 25 fomi part of these financial slatements. 16
THE VARRIERJONES FOUNDATION IA COMPANY UMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting Policlgs A¢¢ountlng convention and standards The Varrier-Jones Foundats"on is a company limited by guarantee incorporated in England & Wale$. The regislered office 15 Upper Pendrill Court, Papworth Everard, Cambridge CB23 8UY. The financial statements have been prepared in accordance wth Accounting and Reporting by Chaiilies.. statement of Recommended Practice applicable lo ¢harrties preparing their accounts in accordance wth the Finan¢ial Reporting Standard appli(2ble in the UK and Republic ol Ireland {FRS 1021 (effective 1 January 20151- (Charities SORP IFRS 10211, the Financial RepM)rting Standards applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Varrier-Jones Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are inilially recognised at historical cost unless olherwise staled in the relevant accounting policy. The financial stslemenls are prepared in slerling. which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. Going eon¢em At the ttme of approving the financial statements. the Trustees have a reasonable expectation that the Foundation has adequate resources to c(M)linue in operab.onal existence for the foreseeable futu. Incoming resources All incoming resources capable of aGGurate ffinanual measurement are a¢¢ounted f¢y when receivable. Deferred income Where applicable, deferred income is uedited to Incomin9 Resources equally over the perKJd to which it relates. Resourc8s expend All expenditure 15 accounted for on an ac¢ruals basis ar include$ any irre¢overable VAT. Direct charitsble expenditure. management and administration Direct chanlable expendrture comprises all expenditure dire¢Uy relating to the obJ"e¢ts of the charity. When necessary. costs are allocated betsveen direct charTtable expenditure. fund raising and management and admini5tr3lion on an aGlual basis. Invgstments Listed investments are stated at market walue. A full professonal revaluation of investment properties is conducted every the years as part of a ffive-year rolling valuation programme of the total property portfolio. The statement of financial activitses includes realised and unrealised gains I 11055esl on revaluations and disposals Ihroughoul the year. 17
THE VARRIERJONES FOUNDATION IA COMPANY LlhllTED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies Icontinuedl Fixed 3$sots Fixed assets are included al c051 less accumulated depCiation. Fixed assets with a cost of less than £S.000 are written off to the ststement of financial activits'es on acquisth"on. Depreciation Depreciation is prOded lo wrrte off on a straight-line basis the cost or valuation, less estimated residual value, of all fixed assets over their expected u5efiJl kn"ves. cal¢ul*ed on a daily ba$ from acquisition date. Investment prOpee$ afe stated at fair value and are not dep¥eualed. Although this is in accordance with FRS 102 it is a departure from the general requ1Ment of the Companies Act 20( for all tangible asset5 to be depreciated. Investment prope"e$ are held for their investmenl potential and therefore their cvrrent value is of pnme importance. The departure from the provisions of the A is considered lo be necessary in Ofder lo present a true and fair view. Creditors and provisions Creditors and prowsions are recDgni5ed where the Foundation has a present obligation resulting from a past event that wll result in the transfer of funds to a third party and the amount 10 settle the obligation can be measured or estimated reliably. These include anb"cipated futu liabilrties for repair and maintenance work which 15 contn"buled lo by ¢rnt tenanls. lo reflect their obligalion to ntribute to the Maintenan and upkeep of the infrastructure. Capitalisation of finance costs All finance costs that are d1Ctty attributable to veStment propeeS are capitalised as part of those assets. Defined contribution peD51011 scheme Contributions to a money purchase pension scheme are charged to the profft and kjss account as Ihey tseme payable in accordan wth the rUS ofthe scheme. Fund aG¢ounting Funds held by the Foundalifffl are unStrided general funds - these are funds that can be used in accoi(lance with the charitable objects at the discrets.on of the Trustee5. Company statu5 The Foundation 15 a wmpany limited by guarantee and has no Sha capital. The liability of each member in the event of the Foundation being wound up is limited lo £1. 18
THE vARRIERONEs FOUNDATION IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Investment income 2022 2021 Rent receivable Income from investrnenl rtI¢ll0 700.669 867.455 840,175 1.259,960 1.568.124 2.100,135 Other Income 2022 2021 Other income 15.276 11.717 15,276 11.717 Inws¢m¥nt management Costs 2022 2021 Property portfolio Listed Invèstsnent portfolio Support costs 390.621 187,822 91,143 260.516 194,468 89,731 669,586 544,715 19
THE VARRIER-JONES FOUNDATION IA COPAPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Charitable activity costs 2022 2021 Support costs Direct grants las explained in the Trustees. report) 4.798 1.785.574 4.723 1.749,112 1,790,372 1.753.835 Olh•r costs 2022 2021 Audit fees Truslees indemnty insuran¢e Other professional fees 7,450 4.316 1.188 7.500 3.320 2.347 12,954 13.167 Staff costs 2022 2021 staff costs: Staff salaries Pension costs 36,839 1,477 35,580 1,336 38.316 36,916 Staff numbers The average number of full-time equivalent employees {in¢luding casual and part-time staffj during the year was made up a5 follows". 2022 2021 Support & administration Defined contribution ponsion scheme During the year the Foundation paid contributions into one empknyee's personal pension scheme. The pension cost charge represents ¢ontribLrtions payable by the Foundation to the funds and arrounl¥d to £1.47712021. £1.336). Outstanding contributions lo the lund of £230 were due at 31 March 202212021.. £2241. 20
THE VARRIERJONES FOUNDATION (A COMPANY UMITED BY GUARA14TEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Net expenditure for the year 2022 2021 Slated after charging.. Auditors, remuneration.. Audrt senrices 7.450 7.500 9 Investments Investment Properties 2022 2021 At 1 Apiil Unrealised gains in the year 16.320.749 1.729.503 12,397,801 3.922,948 At 31 March 18.050.252 16,320,749 Included in Fixed assets 18.050,252 16.320,749 18.050,252 16.320.749 All investments are induded in unrestricted fvnds. Summary: 2022 2021 Property.. Freehold 18.050.252 16.320,749 The historical cost of all the investment properties at 31 Mah 2022 was £13,603,078 12021.. £13.603.0781 Investment properties a re-valued based on a professional valuation by Bithells LLP on a 3 or 5-year rolling review. Those properties not included in the professional valuation at 31 March 2022. have been reviewed by the twstees who a of the opinion Ihat the vakjats.on included in the accounts is consislenl wilh the current fair value for these properties. 21
THE VARRIERJONES FOUMDATION IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10 Market Investments Market value 2022 2021 At 1 April Realised gains Unreali5ed Ilossesllgains in the year Cash wtthdrawn 39,667,620 3.220.257 {1.916,987} 32,673,759 1,091,358 6,402,503 (500,0001 At 31 March 40,970,890 39.667.620 Market value repr•nI4 by: 2022 2021 Historical cost of assets Unrealised gains 35,982,754 4,988,136 33,108,882 6,558.736 At 31 March 40,970,890 39,667,620 Invèstments helll as: 2022 2021 Cash & cash equivalents Fixed Income UK Equities Global Equities Alternative Investments 1.215.863 4.424,490 8.746,701 20.089.094 6.494,742 245,354 4.936,709 8,217,569 22.135.662 4.132.326 At 31 March 40,970,890 39,667,620 Included in Fixed assets 40,970.890 39.667.620 40,970.890 39.667,620
THE VARRIER-JONES FOUNDATION IA COMPANY UPIIITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 11 Debto 2022 2021 Trade debtors Bad Debts provided for Prepayments & Accrued income Other debtors 94,225 116.3591 140,167 10.736 47,855 {6.3091 15,027 606,745 228,769 663.318 12 Creditors: amounts falling due within one year 2022 2021 Trade creditors Renls received in advance Other ¢redrtors and accnjals Taxation and social security Deferred income (note 15) 40.642 164.245 232.433 685 6.217 33,744 110,042 106,724 142,552 6,000 444.222 399,062 13 Creditor5: amounts falling due after more than one year 2022 2021 Deferred sncome (note 151 Olhei credrtors and accruals Building repair receipts in advar 14.000 150.800 45.941 20.000 150.800 43,434 210.741 214.234 Other credrtors and ac£ru31s represent polenbal compensation claims arising from the development of e Papworth bypass. 23
THE vARRIERONEs FOUNDATION {A COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 14 Lessor The operating leases represent leases lo third parties. The leases are negotiated over vaTlOUS terms At the reporting end date. the company had"contracled with tenants for the following minimum lease payments.. 2022 2021 Within one year Befvrfeen and five years In over five years 820,959 2.618,425 1,800.110 773.534 1.245,495 1.959.034 5.239,494 3,978,063 15 Deferred iDcomo 2022 2021 Balance al 1 April Amount released in year 26.000 16,0001 32,000 16,0001 Balan¢e al 31 March 20.000 26,000 Deferred incorne relates lo monies re¢tyved for the granting of a 25-year lease. Amounts have been eferred to spread the income over the remaining terni of the lease. 16 Trustees indemnity insurance During the year insurance was purchased to irKlemnify the trustees against defaum on their part. The amount paid was £4.31612021'. £3,320). 17 Controlling party The ¢harity is controlled by the Board of Trustees. who are also the membefs. and the directors under company law. 24
THE vARRIERONEs FOUNDATION IA COMPANY UMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 18 Related party transactions During the year the charity was charged costs of £43.00012021.' £43,000) by Papworth Trust in ordei lo provide financ¢al management, HR and IT support. Al ofthe transacb.ons We carried oul on an arm's length basis and no amounts were outstanding as at the year end. The Foundatton charged The PapvK)rth Trust rental costs of £17,66812021= £20,167) during the year, a150 carried out at arm's length. At 31 March 2022 the amount due to Papwth Trust was £146,25012021'. £nil}. The amount due from Papworth Trust was £nil {2021= £4,363) Duiing the year, the Foundation awarded granls to Papworth Trust of £1.755,0fy) (2021." £1,720,000). 19 Transactions with Truste95 During the year no Trustee received any remuneralion or expenses. In 2021 a total of £nil in expense payments was reimbursed to Trustees. 25