Reglstered number: 03377965 Charlty number- 1064595 THE VARRIERJONES FOUNDATION (A Company Limited by Guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 tyADHXUVGI* 1411212024 COMPANIES HOUSE A14
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THE VARRIERJONES FOUNDATION (A Company Llmited by Guarantee) CONTENTS Pag6 Referenco and Admlnlstratlve Datalls of the Foundatlon, Its Trustees and Advlsers Trustees, Report 3-11 Indèpendent Audltors. Report on Ihe Flnancial Stalements 12-15 statemenl of Flnanclal Actlvltles Balance Shoot 17-18 Statement of Cash Flow8 19 Notes to the Financlal Statements 20-36
THE VARRIER-JONES FOUNDATION (A Company Limited by Guarantee) REFERENCE ANO ADMINISTRATIVE DETAILS OF THE FOUNDATION, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Trustees D Lowther, Chair S W Beach, Vlce Chalr M P Alexander, Chair of Property Investmenl Commiltee C M Baldasare (appolnted 23 November 2023) D H R Browne, Chair of Grants Committee J L Bugg, Chair of Investment Commillee S Crouch S J Lewis (resigned 24 Auousl 2023} A K Lynch C Sheasby, Treasurer Company reg18tered number 03377965 Charity reglstered numbar 1064595 Reglstered office Upper Pendrlll Court ETmlna Street North Papworth Everard Cambrldge CB23 8UY ompany 69crotary M Blake (reslgned 10 November 2023) Independent audltors Ensors Accountants LLP Chartered Accountants Slatulory Auditors Incubator 2, The Boulevard Enlerpr5se Campus Alconbury Weatd Hunllngdon PE28 4XA Bgénkers National Weslrninsler B8nk plc 92 High Street Huntingdon PE29 3DT Soli¢ltors Ellisons Solicitors Headgate Court Head Street Colchester C011NP Property Advls8rs Bldwells LLP Trumplngton Road Cambridge CB2 9LD Page 1
THE VARRIER-JONES FOUNDATION {A Company Llmlted by Guaranlee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE FOUNDATION, ITS TRUSTEES AND ADVISERS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Peck Property Consullanls College Farm Hatchel Lane Slonely CambHdg6shir8 PE19 SEG Invèstmènl Managers Sarasln & Partners LLP Juxon House 100 st Paul's Churchyard London EC4M 88U Accountants Green and Purple Bullding 1000 Cambrid96 Research Pat W8tèrbeach C8mbrldge CB25 9PD Peters Elworthy & Moore Salisbury House S181ion Road Cambridge C812LA Page 2
THE VARRIER-JONES FOUNDATION (A Company Llmlted by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 INTRODUCTION The Trustees of The Varrler-Jones Foundalion ('Ihe Foundalion") present their report and the audited financial stal8ménls of Ihe Foundation for thè year anded 31 March 2024. Th8 Foundatlon was Incorporatèd on 29 May 1997. The Foundallon's r6gistrallon company number Is 03377965 and the regl8lèréd charlly number is 1064595. The flnancial 8tslaments comply wlth the Chartlle8 Act 2011, the Companies Act 2006, the Memorandum and Artlcles of Association, and Accouriling and Reporting by Charlties., Slalemenl of Recommended Practice applicable to charities preparing their accounts In accordance with the Financial Reportlng Standard applic8ble in tha UK and Republic of Ireland IFRS 102). DIRECTORS AND TRUSTEES The Directors of the Foundation are lh& Trustees of Ihe Foundallon lor the purpose of Gharily law and throughout Ihls r8POrt are colleclively r8ferred lo as the Trustees. The Trustees serving durlng the year and up to the dat8 of slgnature of the flnanclal statemenis wgre as follows., D Lowlh8r (Chairl S W 8e8ch (Vice Chalr) M P Alexander (Chalr of Prop8rty Inveslmenl Comrnlttee) C M 8aldasare lappolnled 23 November 2023) D H R 8rowne (Chair of Grants Committ&e) J L Bu9g {Chalr of Investment Committe8) S Crouch S J Lewls {reslgned 24 August 2023) A K Lynch C Sheasby (Treasurer) OBJEcfivES AND ACTIVITIES Th8 Foundatlon supporls p80p18 living wlth dlsabllllles by pursuing tho follovlng oble¢tlves: making grants to the Papworth Trust, 8 UK-based charfty providing supported houslng, care servlces. employrnenl support and 8 r8nge of d8y services lo people living with disabllitie$', and supporting dlsabled people more generally by making grants towards Ihe work of othor organisalions providing servlces for dlsabled people. In meeting these objeotlves, the Foundation seeks to man8ge Ils inveslment and property portfollo8 lo g8ner8te sufflci8nl return lo allow r8gular grants to b8 made whllst algo seèklng to preserve, In re81 térms, th8 long-lerm capital value of Ils asseis, nOthStandIng that1118 free to distribute any or all of Its capital in order to besl rneel these primary objects. APPOINTMENT AND TRAINING OF NEW TRUSTEES The Board of Trustees is responslble for the appointment of any new Trustees and for ensuring that a broad range of relevant skills and expertise are represented on the Board. In revi8wing the membershlp of the Board, and any namlnatlons for new Trustees or for the elecllon of the Chair, the Board seeks to: Ensure a good distribution of diverse skills and experience amongst Truslees; 2. Ensur8 the tlm8ly and effectiv8 succession of the Chair of the Board. 3. Implement an Induclion programme and ensure rel8vant informalion is provided to new Trustees. arKI monitor on.golng iraining nèeds for all Twslees. Page 3
THE VARRIER-JONES FOUNDATION IA Company Llmlted by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 In order lo carry Ihis out effectively, the Foundallon has established an Appolntmenls Commlllee, vthich seeks lo facllltale the above, recognlsin9 the desire lo achieve equalty and diversily al Board level and 6n3urlng recrullmenl to the Board is ITansparenl and objective. The FourKlallon Is also ¢onllnually developing Ils Inducllon programme for Board membèrs. and uses resources supplled by Ils key propérty and Ir)veslmonl advlsors lo provlde Incomlng Trustees wllh the Informallon Ihey need lo dellver thelr roles 8ff8CtIv8ty. The Foundatlon has also developed Ils inlemal systems more fully to provlde Trust8as wlth access lo informallon dlgltally and utilises technology to hold Board and Sub-Committ88 meelSngs . virtually, where appropriate. PU8LIC BENEFIT The Trustees confirm Ih8y have consldered Ihelr duti8s and have regard lo Ihe guldance contained in the Charity Commlsslon's general guldance on public benefit when revlewing Ihe Foundallon's aims and objectives and In plannlng future activities. The Foundation supports work lo provid8 equality, cholce and Independence for disabled péopl8, ensuring a¢¢es$ to facililies and opportunlllés Ihal may be 8vallable to the publlc in general. The Foundallon fulflls Ihls purpose Ihrough th6 awarding of grant fundlng largèly, but not exclusively, to tha Papworth Trust In support of programmes and acllvili8s Ihgt Improve the Ilves of dls8bled people. The Trustees of th8 Foundallon consld8r applicatlons for fundlng from the Trust vla consldarallon of lis slrateglc plan and budgels, and from other organlsallons vla a formal appllcallons procass whlch Includes due dilig8nca based on Informalion in the public domain, and rèviews the outcomes achiéved via the submission of regular reporls and pr8senlallons to Ihe 8oard. The Trustees are therèfor8 confldénl that the aclivlt18s of Ihe Foundatlon are carried out for the benefit of others, monllored by regular reportlng on lh8 Impact and effecllveness of acllvlties undertaken by baneliciary organisallons and the Trustees have due regard to publlc benefit lesls when maklng declsions. FIXED ASSETS Flxed ass&ts are held In order to 8chleve the objèctives of th8 Foundatlon. Th8 movamanls In Ilxad assals durlng the year ar8 Set out in notes 12 and 13 to thes8 financial stalements. ACHIEVEMENTS AND PERFORMANCE In the Trustees. Report for Ihe year ended 31 March 2023, The Foundation set out the followlng obj8Ctlves for the year to March 2024 and achievement against these is Shown in the 18ble below: Ob ecllve Pursue plannlng enquiries with local authorities to seek lo bTlng potential devalopmenl sll8s into being. Achlevement Oulllne planning application submltted and now permilted at Jubilee Green for a disposal in the year lo March 2025. Davolopment strategy updated lo reflect current plannlng policy and to identify prloritlès for future lannin romolion worl<. Leltings and interesl have plcked up on vacant space 8nd we have also agreed a model for more flexlble letllng 8rr8ngemenls lo improve occupancy. No further r8confi uration lanned at this resent time. The Grants and Dislributions Policies were developed during the year, and external advic8 recelved to progress wllh a vlew to forrnal adoption by Ihe Board during 2024-25. This also allgnéd wllh work to update the Reserves Pollcy which 18 now approved by Trustees. Review the offering at Pendrill Court lo utilise currently vacant spacA. Build on the Business Plan and Reserves work to develop and embed a long-term strategy for the Foundation, sullably consld8ring returns requlred over th8 long-lerm, and the risks to dellvery of these. Page 4
THE VARRIERJONES FOUNDATION (A Company Lirt)ited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Formalise a dlstribution policy that belter supports Ihe long-lerm suslainabilily plans for the Foundatlon. As above, the Board has fully adopied and Implemented the Foundalion's Dlslrlbullon Pollcy so Ihal it aligns wllh the Foundation's Total Return Investment Str81 FINANCIAL REVIEW The Found8tlon suffered an operdting d8ficIt for the year of £661,725 {2023.' deficlt of £34.6121. The deficit on operallons is slated after direct granls of £1,480.058 {2023.' £1,330,000) 8nd the recognition of 8 £475,000 provislon for remedial work to Inveslment properlles. The Foundatior) manages Ils financial performance and Islrlbullon policy on a lolal rèturn basis In order lo wovldè thè bast opportunlly to m881 Its oblectlves Dv8r the medlum lo long term. In the financlal year lo 31 March 2024, total movem8nt In lunds was an Incr8as8 or £2.277,451 (2023.. decreas8 of £2.383,486). The value of listed market and property investments sllll held incr8a8ed by £2.431,861 In the year (2023: decreased by £2,848,874J. The Foundation made grants as follows: Th8 Papworth Trust Able Kldz Bedford Disabled Horse Rldlng Assoclatlon (BDHRA) Burwell Piint Centre Hamelin Trusl Tom's Trust The Back-up Trust Childr8n's Charitable Trust Slowmarket ASD Saturday Club Branchlng Oul Other 1,431,300 3.(100 5,000 5.000 7.785 4.215 6.000 8.398 6,000 3.000 360 Total 1,480,058 Reserve8 policy The Trustees hold all the reserves of the Foundalion as unreslricled funds. The Trustees s&ek to ensure sustainability of Iheir granls and therefor8, as far as posslble. seek lo prolect the underfying capital held by the Foundation. In seeking to do thls, the Truslees regularly r8Vi8W th6 Reserves policy of the Foundation and have daveloped the Résérves policy lo belt8r reflect the Foundation's total return approach lo reSe8S management. Thls pollcy, going forward, will s8ek to designate eleménts of the reserves héld as descrrbed below in order lo Improve the vlslbllity of the rèsili8nce of the funds st their dlsposal. D8sI naled Income Fund The Foundation alms to maintain a deslgnated Income fund. conslstlng of Income Reservas. funded from the planned dlstrlbullon from Its asse15 On a lolal return basls, wilh a vlew to SUSt81nlng charitable activities for a mlnlmum of slx months and a target oftwelv8 rnonths. De51 naled inveslment Fund The Foundation alms lo malntaln 8 designated Investment fund, consisllng of Core Capllal, whlch is Iha real- tem value of the underlying assels used lo establish the Foundallon. and C8Pilal ReseNes, which represenl unapplled total relum on investments. The level of r6seNèS lo be relalned Is sublecl lo annual revlew 8nd will bé link8d to thè Found8tlon's business plan and budget cycles, The Foundatlon Is fr88 to adopt any approach to reserves managemanl il deems Page 5
THE vARRIERONEs FOUNDATION (A Company Llmitèd by Guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 appropriate. subject to general charitable princlples under charily res6rv6s.' bulldlng resllienG8 (CC19). The Income Fund at Ihe year end was £249,378 (2023.. £212,337), Thls was below the Foundation's reserves policy target of 12 months of charilable expenditure (2024.. £1,566,459; 2023,, £1,335,694). The Tru8188s aim to gradually build this Income Fund over a ten-year perlod from tha implemenlalion date of the lotsl return stralegy in April 2021. Tha gradu81 bulldlng of th8 Income Fund aims to balance slrengthenlng organi881ional reslli8nc8 Ile mlnlmlslng any adverse Impact on the annual dlslrlbullon of grants lo the Foundallon b8neflclar168. Comments on events that have affected flnanclal performan¢e Income has increased by 14°/o this year compar8d to prior year. mainly driven by improv8d rental Incom8 yield from inveslmenl properties. Investment property Income has str8ngthengd on the 8slabllshmenl of n8w18asos al the Business Park, secured al mark81 rates, with volds at Pendrill Court remalning Ihrough most of the year, bul improving over previous years. The market for small lo medium-slzed office space In rural locations remains suppressed as organisalions continue lo maintaln hybridlhome-worklng approaches. Expenditure on ralslng funds relaled mainly to Ihlrd party Investmenl manag6ment fegs vlth regards lo the Foundation's property and market inveslmenl portfollos. Property man8gemènl fees increased from £398,904 in 202310 £569,040 in 2024 due to Incr8as8 property malnlén8nc8 Costs. Charltable acllviti8s Increased by 17% thls year (2024: £1,566,459., 2023: £1,335.694). This was largely Oue lo an 11 Q/0 Increase In charltab18 grants (2024.. £1,480,058; 2023: £1,330,000), whlch r8fl8Ct&d the hlgh pr8valllng Inflallon rat8 durlng the early part of the Ilnancial year and Ihe need for the Foundatlon to Increase ils grantlng In Ilne with Inflalion to support Its oranlees who were experlenclng substantial cost pressures due to Inflation. During the year, the Foundatlon reviewed ils support cost allocatlon methodology, which resulted In an increase In support costs belng allocal8d to charllable acllvltles compared to pr6vious years {2024'. 45%: 2023.. 50A). Net 8xpendllure before investment gains was £661,725 (2023.. £34,612). Net gains on invèstments during the year were £2,939,176 (2023: £2.348,874 losses), largely driven by gains on the market investment portfollo of £3,466,926 (2023.. £2,500,00010sses) which were partly offset by £527,750 of losses on th8 property invaslmenl portfollo (2023: £200,000 galn), Nel movement In funds, after inveslment gains, was a £2,277,451 surplus (2023: £2,383,486 deficlt), r8presenllng a 40h surplus on openlng net ass8ts (2023: 4% defi¢lt). Investmenl pollcy The Trustees have dlscrelionary powers to Invest the Foundation's monies in the purchase of Investments or property. Th8 investment property portfolio consists largely of legacy assels orlginally donated to the Foundation by the Papworth Trust, whlch have been developed, and In some cases disposed of, over tlme. Surplus cash thus g8n8raled has b8en usad lo establlsh the portfollo of listed market Snveslm8nls. The overall Inveslment objective of Ihe Foundation 15 to maintain the real value of the assets over the long term. thus preservlng th6 purchaslng powér of dislribullons, and subject to Ihls, lo produce tha best rlsk adjusted total financi81 returns from Ils inveslmenls. whlch are used to me61 the Foundation's charitable objeGtlves by provldlno grants lo the Papworlh Trust and to other charities. Tha Inveslm8nt property portfollo Is acllvèly manag8d by a thlrd parly property managemènt firm to generatè a commercial relum and tho list8d market Inv8slment portfollo is managed by an exlemal asset manager In accordance with the Statement of Investment Policy approved by the Trustees. D18trlbutlon Pollcy The Foundatlon seeks to dlstribule as charitable grants the maxlmum amount of funds available after providing for the maintenance of the real value of ils Investment assets and subject lo the reservés policy set oul above. During the year, the Foundation IransfeTred £1,603.500 from Ihe Inveslrnenl Fund to the Incorne Fund for future exp8ndlture on chartlable purposes (2023." £1.470,000), which represented 3.25°A of the av8rag8 quarterly gross value of investment assets (less provisions and non-charitable support costs) over a trailing Ihree-year period. Page 6
THE VARRIER-JONES FOUNDATION (A Company Llmlted by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Risk Managemant The Foundation aims lo manage the risks Ihat 11 faces by considerlng the key risks anlicipaled at each Committee meellng, escalating th8Sa to the Board where necessary. The Foundation uses a risk register lo record the k8y risks fac8d by th8 Foundation and the activities that ar8 emplod to mitigate those risks. This r8glslèr Is r8Vl8wed al least annually by the Tru$tee8. The Trusl86s retaln overslghl of the acllvilies of th8 Foundatlon through a system of Intemal controls and d8legallon, d8signed lo manage key risks, lo give reasonabla assurance as to the accuracy of financlal information and to safeguard the Foundation's ass8ts and r8PUtalion. Prlnclpal rlsk faced by the Foundallon The Foundalion's key risks are as follows: Rlsk Loss of key skllls lo manage and govern the Foundallon. act The Foundallon relies on a small number of individuals with key skills lo manage complex properly and investment portfolios. Loss of those skills could impact on performance and result In lower relums. Mlti ation The Board considers governance and successlon plannlng regularly. The Board alms to employ appropriatg Staff and eslabllsh strategic partnerships wilh key advisors lo ensure the Trustees are properly advised. The Foundation also purchases servlces from exlernal parties lo support operations, where required. The ongolng recrultment of new liustees replace those retiring accordance wlth the Artides provides a r8gu18r opportunity lo stren Ih8n 803rd resilience. Contractor appointed lo re9ularly survey and manage woodland I open spaces. Rlsk 8ssessmenls undertaken and acllon plans developed and executed. Suitable insurance cover maintained. Appropria18 schem8 of delegations 018ulhorlly h8V8 bé8n 8Stablish8d, wlth key payments and Investment Instructions approved by Trustees. Close monSlorSng by management vla regular management accounts and on-line access lo Inv8Stmenl reports and Iransactian information is maintalned. and any issues or rlsks reported lo Trustees. Intemal policies and procedures for financial and non-financial controls were developed further durlng the year, Includlng Implementalion of revised grantee due dlllgence and moniiorin roc8dures Empty property, open woodland and unadopled roads etc. pres8nt a potentlal publlc Ilablllty rlsk to th6 Foundats'on. Potential public liability clalms due 10 accident or injury caused. Llmited inlernal controls, formal sys16ms and segregallon of dutl8s due lo a low numb8r of key staff increases the potanllal scope for fraud. Financial - loss of lunds. Page 7
THE vARRIERONEs FOUNDATION (A Company Llmlted by Guarantee) TRUSTEES, REPORT {CONTINUED FOR THE YEAR ENDED 31 MARCH 2024 Investment value: Slgnlficanl fall in real capilal value of listed investrnent portfollo. The Foundation's endowment shrinks in real terms. Reéuced absolule18vel of funds available for distrlbullon. The Foundation aims to invest in a diverse range of assets and an appropriate dislribulion policy Is set al 3.25Yo of the average gross value of Investment assets over prevlous 12 quariers. Investment poll¢y stales guideline asset class r8nges Intended lo deliver a 3.250/ real return over th8 lon term, Approprlale Inveslmant manager selection thal Invests In a porlfollo that is diversified across asset classes wllh appropriate concentration limlts inlondod lo deliver 3.25% real returns over the long lerm. Acllv8 r8vlew of dislrlbulion policy by the Investment Committee for suitability. Approprl8te reserves pollcy maintained. External Snveslmenl man8ger selecllon prlorlllses funds wllh approprlat8 Ilquldlty, Th8 Statement of Investment Policy conlalns appropriate cash allocallon and bonchmark currency exposure ranges. nollng 100% of th8 Foundation's expéndlturè Is In sterllng. The Board revlews th8 Foundation's forward-looklng cashflow projeclions quarterly. An inform81 pollcy Is lo maintain approxlmalely £250k In cash and cash equivalents outside the inveslmenl ortfolio. Tha Property Commillee closely manages the property portfolio, with support and input from our property advlsor5, and looks to mlllgale future volds by developlng plans well advanc8. Activ8 consideration and options appraisals are prepared for vacant siles. bul short-term cha118nge remains. Positive engagement maintained wllh planners, vla experienced properly development Trustees. Sympathetic schemes sought of sufficient scale altract developers. Agenls appoinled to assist with land dispos81s by informal tender or at aucllon. Below target Invostm•nt returns: Macroeconomlc factors {hloh Inllalion, high interest rates, poor economlc gr0hIrecesS10n) cause poor or negative returns on risk assets. If long t8rm av8rage returns are below the 3.25% real target, the re81 value of the capllal 11 be eroded If the dlstributlon ral8 18 maintained. Portfollo liquidity: Lack of c88h and other Ilquld assets lo fund dislrlbutlons and expendllure, Forced lo sell assels lo meet cashflow requirements dislres8ed prlces whlch destroys value. Inablllly to Improve rental property occupancy. post Covid- 19. and the subsequont changes lo the der economlc environment and demand for office space, affecting rental yields and increaslng unracovered costs. Empty property w511 result in losl rents. servlce Gharge and rates costs. This may impact the ability lo maintain granllng at the current level. Fallure secure ad8quat8 plannlng approval8 and dlsposal proc*eds from development slles lo mitigate loss of Papworth Hospitsl income. Planned capilal achieved In impacting cash flow. recelpts not adversely Pagg 8
THE vARRIERONEs FOUNDATION (A Company Llmlted by Guaranle?) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Material downgrade In pmpèrty valuations due lo dlfficull lettlngs market leads to polenllal impairment charge. Total asset value diminishes, reducing funds avallable for dislributlon, 8nd potentialSy weakening ralums. Diverslfied property portfolio, with key ass8ts held in currently allractive large-soale induslrial units, Mixture of tenancy p8riods also supports maintaining p8ce with the market. Internal Controls As in pravious years, Ihe organisation proojred the services of Papworth Trust for manag8ment accounting. IT and Hum8n Resourc8S SUPPOrt, and utlllsed the support of prof8ssional firm5 to support property management and health & saf8ly governance. In order lo managa tha Inherent confllGI of Inl8r831, the Trusl&es have Inltlated durlng the y8ar a Iran8lllon lo Independenl providers of these seNlces, whlch Is expècted to lake effect fully In 2024-25. It Is also recogn1s8d that Ih8r8 are inher8nl dsks wlth a small team. therefore a scheme of delegation has been establlshed to addr8SS the difficulty of a¢hleving suilab18 Segrogalion of dulles, and appropriate authorisalfon levels, which also involves the partfclpalion of th8 Trustees. PLANS FOR FUTURE PERIODS In the next financial year, the Foundallon pl8ns to.. Sècure the planning consént lor the exisllng appllcallon al Jubilee Green and Sell the land at ami's length on the op8n market Increase the occupancy at Pendrlll Court, dèploying more flexlble lerms as nece5S8ry Eslabllsh clear plans for oth8r v8canl bulldingslspace in Papworth Everard Embéd the grants and dislribullon pollcles to support the long-lerm sust8Snablllly plans for th8 Found8tlon Furlher revlew and continue to revlse the operatlonal 8UPPOrt for th8 Foundatlon In lin8 wlth governance recommendations and best pracllce Review Ihe iDteTnal and external risk and assurance framework of the Foundation STRUCTURE, GOVERNANCE AND MANAGEMENT The Foundallon is a comp8ny limiled by guarantee, govemed by ils MemorarKlum and Articles of Association. It is a registered charity with Ihe Charity Commission. The Foundation Is governèd by ils Board of Tru8tees, conslsllng of the Tiuslees, as slated on pagé 1 of the financlal slatements, whlch meets quarterly. The Trustees. asslsled by staff and professional contractors, are r6sponslble for formulatlng the strategy and policies of the Foundation, including the approval of budgets and exerclsing of flnandal control. In addllion, Ihe Foundallon procures support and advlce from external advisors In key areas of its operations Includlng Inveslment and property management. The Trustees also malnlain Committees to oversee indivldual elements of ils operation. The Committees currenlly in operati¢Jn are as foltOW8'. Pro 188 The Property Committee oversees the propety portfolio of the Foundation. working with extemal advisors to set the strategy. report on performance and to make recommendations lo the B08rd. The lemis of engagement of these advisors, 8nd their performance, are reviewed regularly to ensure the primary objectives ar8 belng mel. Thls Commlllé8 r8POrts to the Board al èach 803rd meellng. Inveslment Commlllee The Invostm8nl Commlltee oversees Ihe investment portfollo of the Foundatlon. The Commlttee r8views the investment strategy. monilors investment performance and makes recomrnendalions lo the Board with regard to investment policy 8nd asset allocallon. The Slatement of Investment Policy is reviewed regularly to ensur8 it remains sultable for the Foundation. The Committee monitors Ihe performance of the investment manager, and reports on investment performance to the Board al each Board meeting. Page 9
THE VARRIERJONES FOUNDATION {A Company Limlted by Guarantoe> TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 ointments Committee An Appointments Commiltee manages the process of recrultlng new Trustees and electing offlcers for the Foundation. This meets 8$ requlred, and brlngs recommendalions to the Board for new appolnlments, baged upon an assessment of skllls required and contributions new Trustees may bring. Grants Commiltaa A Grants Commlllee has been establlshed to sel the criterla and conslder grant awards lo Papworth Trust and to other organlsallons that apply lo the Foundallon. Thls Commlllee meets at leA81 Iwlce a year and considers applications In accordance with the Foundation's Grant-making Policy on Ihelr slraleglc fil, viabllity, and Impact. as well a8 undertaking necessary due dlllgence on potential beneficiaries. The Commlllee makes recommendatlons to the Board for approval, and rnonltors tha awards made vla the collecllon of r6POrts on expendilure made and Impacl achlev8d. Fundraising approach The Foundation's income is generaled malnly through retums on Its investment and property portfolios that are appropr5alely man8g8d lo mael Ihe objectivés of lh6 charilabl8 organisalion In full-. No formal fund-raising 8clivity Is deployed to generate Income from members of th8 publlc. Whllsl members of the public ar8 able lo donate eonlributions volunlarlly If Ihey so wlsh, and the Trustees are empowered to accept such donatlons, the Foundation does nol promot8 fund ra151ng. No professional fundralsers are 8mploy8d by the Foundation. R88ponslbllltles for day-to-day management of the Foundatlon Debbie Lowlher is Chalr of the Foundation, over88elng the overall govemance and operallon of the Foundatlon. Mlchael Ajexander oversees all property matters as Chalr of the Property Comrnillee, and Joanne Bugg oversees finan¢4al Investments as Chalr of the Investment Comrnitlee. Chris Sheasby, as Trèasurer, supports the B08rd and Committees as approprlale. The Trustees are supported by employed staff. 8s well as outsourced govern8nce and flnanclal management support, Trustees, responsibilitles The Trusteas (who are also directors of The Varrier-Jon8s Found811on for the purposes of company law) are responsible for preparlng th8 Trustees, Report and Iha flnanclal slat8m8nts in acwrdance wilh applicable law and Unlled Klngdom Accounllng Slandards (Unlled Kingdom Generally Accepted Accounting Pract). Company law requlres the Trustees lo prepare flnanclal statements for each financlal year, whlch give a Irue and falr vlew of the slate of affairs of the charitable company and of the incoming resources and application of resources, Includlng Ihe Income gnd 8xpendilur8, of Ihe charitable company for the year. In preparing these flnanclal statements. the trustees are requlred lo: select suitable accounling policies 8nd then apply them consistently; observ8 the methods and prlnclples in the Charities SORP; make judgements and esllmatés that are reasonable and prudent. slate whether appllcab18 UK Accountlng Standards have been follow8d, subject to any malerlal departurès disclosed and explained in the financi8151atements' prep8re the financial statements on Ihe golng concérn basls unlÉ&s11 Is Inapproprlate to prosume Ihal the charit8ble cDmpany will continue In operation. The Trustees are responslble for keeping adequate accounting records that disclose with reasonable accura at any time the financial position of the ch8ri18ble company and enable Ihem lo ensure that Ihe financlal slalements comply wllh the Companles Act 2006. They ar8 81so responsible for safèguarding the assets of the charitable company and hence for taklng reasonablo steps for the prevention and deteclion of fraud and olher Irrégularities. Pag8 10
THE VARRIER-JONES FOUNDATION {A Company Llmlted by Guarant8è> TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 In so far as the Trustees are awar8'. there is no relevant audit informallon of whith the charitable COmpanS audltor Is unaware., and The Trustees have taken all steps that they ought to have taken to maka themselves aware of any relevant audit informatlon and lo establish that the auditor Is aware of that infornatlon. AUDITORS Ensors AUntantS LLP were reappolnted as auditors of the charltable company end In 8ccordan¢e wlth sectlon 485 of the Companies Act 2006 a r8solutlon proposlno that Ihey be reappolnled wlll ba pul at a gen8ral meatlng. OUR THANKS Flnally, the Trustees would Ilke to thank thelr staff and professlonal contractor5 for Ihelr dedicalion, hard work and commilrnenl to the woi'k of the Foundation. Approved by order of the m8mb8rs of th8 board of Trustees and signed on thelr behalf by,. Lowther Chalr Dale,. ,I,,IL*. Page 11
THE VARRIERQONES FOUNDATION <A Company Llmlted by Guarantee INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE vARRIERONEs FOUNDATION OPINION We have audited th8 fin8nclal statements of The Varrler-Jones Foundatli)n (the 'foundallon') for the year ended 31 March 2024 whlch comprise the Slalemenl of Flnandal Acllvllles. Ihe Balanc8 She81, the Slalemenl of Cash Flows and the related notes, Indudlng a summary of slgnificant accounting pollcles. The financlal reportlng frafflework Ihal has been applied in Iheir pr8paralion is appllcablè law and Unlted Kingdom Accounting Standard5. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable In the UK and Republic of Iland. (Uniled Kingdom Generally Accepted Accounting PraGlice). In our opinion th8 financial slalemenls., glve a true and falr view of th8 slate of the charitable compan18 affalrs as at 31 March 2024 and of It8 Incoming resources and applicatlon of resources. Includlng Its Income and expendlture for the year then ended: have been properly prepared In accordance wllh Unlted Klngdom Generally Accepted Accountlng Pracllc8; and hav8 been prepared in accordance wlth the requirements of the Compan18s Act 2006, BASIS FOR OPINION We conducted our audll In accordance wlth Inlernauonal Slandards on Audlllng {UKI {ISAs (UK)) 8nd appllcable law. Our responslblllllos under those slandafds are further descrlbed In thé Auditors, responslbllllles for the audll of tha flnandal slalemenls section of our r8POrt. Wa are ind8P6ndent of the charltable company In accordance with the ethical requiremenls Ihal are re18vanl lo our audit of th8 financial statements In Ihe United Klngdom, Including the Financial Reporting Council's Ethical Standard. and we have fulfilled our other elhical responsibilities in accordance with these requlrements. We believe that the audit evidence we have obtained Is sufflclenl and approprlate to provlde a basls for our oplnion. CONCLUSIONS RELATING TO GOING CONCERN In audillng the flnanclal slalements, We have conduded that the Truslees, use of the going concern basis of accounling In tha prepar8tlon of the financial slatements is approprlale. Based on the vxjrk we have performed, we have not rdèntifi8d any material uncertalnlles relating to events or condllions that, Individually or collectivèly, may cast Significant doubt on the charltable companvs ability lo contlnue as a golng concern lor a parlod ol at least twelve months from when the financlal statements are authorised for issue. Our responslbililles and the responsibilitias of the Trustees wlth respect to golng concern are described In the relevant sections of this report. Page 12
THE VARRIER-JONES FOUNDATION (A Company Llmlted by Guarant&a> INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE VARRIERJONES FOUNDATION (CONTINUED) OTHER INFORMATION The other information comprises the information Included in Ihe Annual Report other than the flnancial sla18ments and our Audllors, Reporl Ihereon. The Truslees are responslble for the olher informalSon rnnlalned wilhin Ihe Annual Report. Our opinion on the financial sla18m8nl8 does not cover the other Information and. except lo the exlènl othérwise explicJlly staled In our report, we do not express any form of assur8nc6 conclusion thereon. Our responslbility is to read Ihe other Information and, in dolng so, conslder whether the other information is materially inconsistenl wilh the financial slat6ments or our knowledge obtained in the Course of the audit, or othe1$8 appears lo be materially misstaled. If w8 identify such material In¢onslslencles or apparent m81erial mlsstalemenls, we ar8 r8qulrÈd to d818rmlne whether Ihis gNe8 rise to a material mis$lalement In Ihe rinanclal sta18ments themselvgs. If. based on the work w8 have performed. we conclude that there Is a mat8rfal misslalement of Ihls olher Informatlon. we are required to report that fact. We have nothlng lo r8POrt In thls regard. OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our oplnion, based on the woth undertaken In the course of the 8udll'. the Information giv8n in lh8 Trusl88s' Report for the flnanclal yaar for whlch the Ilnanclal Slalements ara prepared is ¢on51slenl wllh the finBllci81 slaternenls. thè Truslegs, Report has been prepared In accordance wlth appllcable legal requlrements, MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowl8dg& and understandin9 of the charitablè company and Ils environment obtalned in the coursè of the audit, we have not identified material misstalemants in the Trustees, Report. We have nolhlng to report In respect of the following matters In relaOn to which Companies Act 2006 requlres us lo report lo you If, In our oplnlon.. adequate accountlng records have not been kept, or relurns adequale for our audll have r1 been recelved from branches not visited by us,. or the flnancial slalemants ar8 not In agreemenl wlth the 8c¢ounling records and returns; or Qertaln dlsclosurés of Trustees, remunerallon specified bylaw ar8 nol made., or we have not recelved all Ihe infomiation and explanallons we requlre for our audlt; or the Trustees wer8 not 8nlltl8d to pr8par8 th8 flnanclal slalamgnls In accordance with tha small companies r8glm8 and take advantage of the small comp8nlas' exemptions In preparing the Trustees, Report 8nd Irom the requirement to preparè a Strateglc Report. Page 13
THE vARRIERONEs FOUNDATION (A Company Llmiled by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE VARRIER-JONES FOUNDATION ICONTINLIED) RESPONSIBILITIES OF TRUSTEES As explained more fully In the Trustees, Re5ponsibilili6s Slalement. the Truslees (who are also the dlrectors of th8 charitable company for Ihe purposes of company law) are responslble for the preparallon of the financial stalemenls and for being satisfied that they give a true and fair vi8w, and for such intemal control as the Trustees delermine is necessary lo enable the prepar8tion of finandal slatemenls that are free from materlal mlsstalement, whelher due lo fraud or error. In pr8paring the financial statements, the Trust8es ar8 responsible for assessing the charitable companys ability lo conlinue as a golng concèrn. disclosing, as applicable. malleis relalèd lo going concern and using th8 golng concern basls of accounllng unless the Twstees either Intend to Ilquldate the charSlable company or to ceasé operallons, or hav8 no reallsllc alternative but to do so. AUDITORS. RESPONS181LITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our oble¢llves are lo obtaln re380nabla assurance al)out whether the financlal statements a8 a whole are free from material mlsstatement, whether due lo fraud or error, and to Issue an Audltors, Reporl that includes our oplnlon. Reasonable assurance is a hlgh level of assurance, but is nol 8 guarantee Ihat an audil conducted In accordan with ISAS {UKI wlll always delect a material misslatem8nl when It exSsls. Misslatements c8n arlse Irom Ir8ud or error 8nd are ¢onsld8r8d m8lerl81 If, Individually or In Ihe aggregate, they Could re8sonably ba exp8Cted lo Influence the 8conomlc declslons of us8rs laken on the basls of Ihes8 financial stalemenls, IrregulalIes, Including fraud, are Inglances of non-compllance wllh laws and regulatlons. We deslgn procedur8s In Ilne with our responslbllllle$. oulllnad above, lo delecl mat8ri81 mlsslalements in respe¢l of Irregularilias, Including Iraud. The ex18nl lo whlch our procedures are capable of del8cling Irregularltles, Includlng fraud Is detailed below.. In idenllfytng and assesslng Tisks of malarial mlsstatement In respect of iriegular5ties. includlng fraud, the audit engagement leam: obtained an understandlng of lh8 nature of the Industry and sector, including the legal and regulatory framework that the company operates In and how the company Is Gomplylng wlth the legal and regulatory framework; inqulred of man898menl, and thos8 charged wlth governance. about thelr own Identilicalion and assessmenl of the risks of IegularItIeS, including any known actual. susp8Cted or alleged Instances of fraud: and discussed matters about non-compliance with laws and regulallons and how fraud mlght occur Includlng assessment of how and where the financial statements may be susceptible to fraud. However, bt Is the primary responsibility of managgmenl. wllh the oversight of those charged with governance, to ensure that the entitys operations are conducted in accordance wth the provisions of laws and regulatlons and for the prevention and del8ction of fraud. A further d6scrlpllon of our rasponslblllllas for th8 audil of the flnanclal slatements Is located on the Finandal Reporting Councll's webslte at: wM¥.frc.or .uklauditorsres onsib'lilies. This descriptlon forms part of our Audllors, Report. Page 14
THE vARRIERONEs FOUNDATION {A Company Llmited by Guarantee} INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE vARRIERONEs FOUNDATION (CONTINUED) USE OF OUR REPORT This report is made solely to the charitable compan5ls members, as a body, in accordance with Chapter 3 of Part 16 of th8 Companies Act 2006. Our audil work has been undertaken so that we might state lo the charitable companVs members those matters we are r&quired lo stale to them In an Auditors, Repori and for no olher purpose. To Ihe fullest exlent permilled by law, wa do not accept or assume responslbilily lo anyone other than the Charitable Goryany and113 members, as a body, for our audtl wotl(, for this report. or for the oplnlons we have formed. James Francls (Senlor Statutory Audltor) for and on behalf of Ensors Accountants LLP Chartered Accountants Stalulory Audllors Incubator 2, The Boulevard Enlerprlse Campus Alconbury Weald Hunlingdon PE28 4XA Oale: 21str Page 15
THE VARRIER-JONES FOUNDATION (A Company LSmlted by Guaranteé) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024 As restated Total fvnds 2023 Investment Fund Income Fund 2024 2024 Total funds 2024 Note INCOME FROM: Inveslm8nts Other Income 2,242,011 17,594 2,242,011 17,594 1,964,865 19,004 TOTAL INCOME 2,259,605 2,259.605 1,983,869 EXPENDITURE ON: RaSsing funds Charflable acllvldes 1,354,871 1,354,871 1.566,459 682.787 1.335,694 1,566,459 TOTAL EXPENDITURE 1,354,871 1,566,459 2,921,330 2,018,481 NET INCOMEI(EXPENDITURE> BEFORE NET GAINSI{L058E8) ON INVESTMENTS Net galnsl{lossesl on Inv98tments 904,734 2,939,176 (1,566,459) (661,725) 2,939,176 (34.612) (2.348.874) NET INCOMEI(EXPENDITURE) Transfers between funds 3,843,910 (1,603,500) 11,566,459) 1,603,500 2,277,451 {2,383,486) 19 NET MOVEMENT IN FUNDS 2,240,410 37,041 2,277,451 (2,383,486) RECONCILIATION OF FUNDS.. Totsl unrestricted funds brought forward Net mov8m8nl in funds 56,301,493 2,240,410 212,337 37,041 56,513,830 2,277,451 58,897,316 (2.383.486) TOTAL UNRESTRICTED FUNDS CARRIED FORWARD 58,541,903 249,378 58,791,281 56.513.830 Th8 Sia18m8nt of Fln8nclal Actlvltl8s Includ8s all g8ln8 and Ios88s reeAJgnl3èd In the year. The notes on page5 20 to 36 form part of thes8 financlal statements. Page 16
THE VARRIER-JONES FOUNDATION (A Company Limlted by Guarantea) REGISTERED NUMBER: 03377965 BALANCE SHEET AS AT 31 MARCH 2024 As resialéd 2023 2024 Noto FIXED ASSETS Mark81 inveslm8nls Inv8Stm8nt property 13 12 41,028,127 17,576.002 37.960,516 18.211,752 58,604.129 56,172,268 CURRENT ASSETS Deblors Cash al bank and In hand 14 164,857 1,098,633 76,441 651,799 1,263,490 728,240 Cr8dltors'. amounts falllng due wllhSn one year 15 (399,235) (179,228) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 864,255 549,012 59.468,384 56,721,280 Creditors.. amounts falling due after more than one year Provisions for liabilities 16 17 (51,303) (625,800) {56,650) (150,800) TOTAL NET ASSETS 58,791,281 56,513,830 UNRESTRICTED CHARITY FUNDS Investrnent Fund Income Fund 19 19 58,541,903 249,378 56,301,493 212,337 TOTAL UNRESTRICTED FUNDS 58,791,281 56.513,830 The Truste6s aoknowtedge Ihelr r8sponslbllltles for complylng wlth the requlrements of the Act wlth respect lo accounting records and pr8parallon of financial slat8menls. The financlal statements have been prepared in accordance wlth the provislons applicable to entllles subject lo the small ¢ompanles regime. Page 17
THE VARRIER-JONES FOUNDATION (A Company Llmited by Guarantee) REGISTERED NUMBER: 03377965 BALANCE SHEEf {CONTINUEDI AS AT 31 MARCH 2024 The financial slatsmenls were approved and authorised for issu6 by the Truste8s and signed on their behalf by: D Lowthèr Chalr C Sheasby Treasurer Dal8: Th8 notes on pages 20 10 36 form part of thasè flnanclal statement8. Page 18
THE vARRIERONEs FOUNDATION (A Company Llmlted by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 As restated 2023 2024 Note CASH FLOWS FROM OPERATING ACTIVITIES Nel cash used in operating activllles 20 (2,303,177) (2,269.554) CASH FLOWS FROM INVESTING ACTIVITIES Dlvidends. Inter8sIs and rents from Investments Wilhdrawals from Investment portfollo Proceeds from sale of investment property 2,242,011 400,000 108,000 1,964,865 500,000 NET CASH PROVIDED BY INVESTING ACTIVITIES 2,750,011 2,464,865 CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR 446,834 195,311 456,488 Cash and cash equiva18nls al the beginnlng of thè year 651,799 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 21 1,098,633 651,799 The notes on pages 20 10 36 form part of these flnanclal statements Pag8 19
THE vARRIERONEs FOUNDATION (A Company LlmEted by Guarantee> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 MARCH 2024 GENERAL INFORMATION The Varrler-Jones Foundallon Is a private cornpany Ilmlled by guarantee and Incorporated In England and Wales. The liabllity of each mernber in the evenl of Ihe Founda&'on being wound up is limited (0 £1. The reglstered office is Upper Pendrill Court, Papworth Ev8r8rd. Cambridge, CB23 8UY. Th8 flnanclal statements are prepared In steding, whlch Is the functional currency of the Foundallon. Monetary amounts In these financial statements are rounded to the near8st £. ACCOUNTING POLICIES 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements have been prepar8d in accordance wlth the Charities SORP (FRS 102) Accounting and R8POrtlng by Charltlès.. Stat8m8nt of Recommended Pracllc8 applicable lo ch8rltlÈs preparing thelr acwunls In accordance wllh th¢ F5nanclal Reporllng Stand8Yd appllGable In the UK and Republlc of Ireland (FRS 102) (6ffecllve 1 January 2019), th8 Flnanclal Reportlng Standard appllcablè in th8 UK and Republic of Ireland IFRS 102) and the Coinpanles Act 2006. The Varr18r-Jon8s Foundatlon meets the deflnlllon of a publlc benefll entily under FRS 102. Assets and liabilllles are Inlllally r8cogn158d at hlslorlcal cost or Iransacllon value unless olhenwlse slated In the relevant accounllng policy. 2.2 GOING CONCERN Afler maklng approprl81e enqulrl69, tha Trustees h8ve a reasonable éxpéctatlon that the Foundatlon has adequale resources to continue ID operallonal 8Xislence for the foreseeeble futurè. For thls reason, th8y conllnue lo adopt the golng concern bagls in preparlng th8 flnanclal statements. Further detalls regardlng the adoption of the golng concern basis can be found in the accounting polldes. 2.3 INCOME All income is recognlsed once thè Foundallon has entirfemenl to Ihe Income, It Is probable that th8 Income wlll be received and the amount of Income receivable can be measured rellably. The Foundallon recognlses rental Income from propertles let oul under oparallng leasas on a slralght-llne basis over the term of the lease. Rental Income Is Included in the st8lem8nt of flnancial aclivilies In the perlod lo whld) the income relates. Divldend Income Is recognlsed on a recelvable basis. Income from studlo hlre Is re¢ognls8d In the perlod In whlch the sludlo Is used. If p8yment18 racelved In advance, It Is recorded as defèrred Income and recognlsed In the statement of financlal acllvities in the period in which the studio is used. Income lax reGoverable In relation to investment income Is recognlsed at the tlme the Investment income Is receivable. Other income is recognised in the perlod in which it is receivable and to the extent the goods have been provided or on completlon of the s8rvice. Page 20
THE VARRIER-JONES FOUNDATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (CONTINUED) 2.4 EXPENDITURE Expendilure Is r8cognised once there is a legal or conslruclive obllgatlon lo transfer economlc benellt to a thlrd party. it Is probable Ihat a transfer of economic benefits will be requlr8d in selll8mènl and the amount of the obllgation can b8 me8sured reliably. Expendilure on ralslng fund8 Includes all expendllure direclly Incurred by the Foundauon on managlng Its investmént properties and Ils portfolio of lisled inveslmenls. Also included Is an alkjcallon of support and governance costs based on th8 Ilme spent on investment managèmenl. Exp8ndllure on charltable actlvltles is Incurred on dlreclly undertaklng the actlvltles whlch furth8r lh6 Foundallon's objectlves, as w811 as any assoclated support and govemance costs. Granls payabl8 8r8 charged In the year when the offer Is mad8 except In those case8 wher8 th8 offer Is condllional, 8uch grants belng recognlsed as expenditure when the conditions attaching are fulfillad. Grants offered sublecl lo condilions whlch havo not been m81 at Ihe year end are noted as commilrnent. bul nol 8ccnJed as expenditure. All expendllure Is Incluslve of irrecoverable VAT. 2.5 INVESTMENTS Flxed asset Investm8nts ar8 a form of financlal Instrument and ar8 initially recognlsed at Ihelr Iransactlon cost and subsequently m68sured at falr value al the Balance Sheet dale. unless the valu cannol be measured rellably In whlch case11 Is m8asured at cost less Impalrment. Inveslmenl galns and 108ses. whether realised or unrealised, are comblned and presented as 'Gainsl{Losses) on investments. in the Slalement of Flnanci81 Acllvitias. Inveslmenl properlies are slated at falr value and are not depreclaled. A full professional valuatlon of Inveslmenl propertles 18 conducted every four years as part of a rolllng valuation programme of the total property portfolio. Although not depreci81ing investment properly is in accordan with FRS 102. it Is a departure from the general requirement of the Companies Acl 2006 for all tangible assets lo be depreciated. Inveslmenl propert18s are held for thelr Investment pol8nlial and therefore their current value Is of prlme Imporlance. Thé departuro from the provlslon8 of the Act 18 consldered lo be necessary In order to pr8sent a true and falr vlaw. Inveslmenls held 88 fixed 8ssets are shown at cost less provlsion for Impalrment. 2.6 DEBTORS Trade and other debtors are recognised al the selllement amounl after any trade discounl off8red. Prepayments are valued al the amount prepaid nel of any trade discounts due. 2.7 CASH AT BANK AND IN HAND Cash at bank and In hand includ8s cash and short-term highly liquid investments with 8 short maturity of three months or less from th8 dale of 8cqulsition or openln9 of the deposit or 81mllar account. Page 21
THE VARRIER-JONES FOUNDATION (A Company Llmlted by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES ICONTINUED> 2.8 LIABILITIES Llabilitl8s and provisions are recognised when there Is en obllgallon al the Balance Sheet date as a result of a past event, it Is probable that a Iransfer of economic benefit will be required in settlement, and the amount of the selllem8nt can be eslimaled rellably. These include anlicipaled future liabilities for repair and maintenance work, which is contributed lo by current tenants lo reflect Ihelr obligalion to conlribule to Ihe mainlenancè and upkeep of the Infrastruclure. Llablllties are recognised at the amount that Ihe Foundallon antic5pates11 will pay lo settle th8 debt or the amounl il h8s rèceived as advanced payments for the goods or sefvlces It musl provld8. Provislons are measured al the b8St estimate of the amounts r8qulr8d to $8tlla the obllgallon. Where the effect of the Ilme value of monèy Is malerl81, the provSslon Is based on the present value of those amounls, dls¢ounted al the pre-tax dlscount rat8 Ihal reflects the rlsks speclfi¢ lo the Ilabilily. Th6 unwlnding of Ihe discount is recognlsed In Ihe Statement of Flnanclal Aclivi118s as a financ8 Cost. 2.9 FINANCIAL INSTRUMENTS The Foundallon only has flnanci81 assets and financlal Ilabllities ol 8 klnd that qu811fy as b8sIc financial inslrumenls. Baslc flnand81 Inslrumenls are lnlll8lly recognlsed at Iransacllon value and subs8quenlly measured al their settlemenl value wllh Ihe exception of bank loans whlch are subsequently measured al amortlsed cost using the effe¢llv8 inlarésl method. 2.10 PENSIONS The Foundallon enrols Staff Into a deflned contribution pen81on schema and the pension charge repr8s8nls the amounts payable by the Foundatlon to the scheme In respect of the year, 2.11 FUND ACCOUNTING Gèneral funds are unreslrlcted funds whlch are 3v8ilable for use al Ihe dlscretlon of (he Trustees In furtherance of Ihe general oblecllves of the Foundation and which have nol been designated for other purpo88s. Page 22
THE vARRIERONEs FOUNDATION (A Company Llmited by Guarahtee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 CRITICAL ACCOUNTING ESTIMATES ANO AREAS OF JUDGEMENT Eslimales and ludgements are continually av8luated and are based on hlslorical 6xperi8nce and other factors. including expeclalions of fulure &venls Ihal are believed lo be reasonable under the clrcumslance5. Crllical accounting estlmates and assumptit)ns', The Foundation makes estimates and assumptions concerning the future. The resulting accounling esllmates and assumpllons will, by déllnlllon, seldom equal the related aGlual r8sults. Th8 6slSmates and assurnptlons that have a significanl risk of causlng a material adlustmènl to the carying amounts of assels and Ilabillties wllhln tha next finanGial year are dls¢ussed below. Invastmènt propertles Th8 valuallon of the Investmenl prop8rt188 requlr8s Ihe use of several 8sllmat8s and judgements. Changes in these eslimales and iudg8menls can lead lo material changes In Ihg valualion. The value of Inveslment property al th8 year-end was £17,576.002 (2023: £18,211,752). Papworth bypa88 and remedial propèrty costs provlslons The provlslons for polenllal compensallon clalms and remedlal works to Investm8nl property ar8 subject to a number of assumplSons', changes in Ihese assumptions can lead lo material changes in th6 provision. The value of the provision al the year-end was £625,800 (2023., E150,800). INVESTMENT INCOME Investment Fund Total Funds Tol81 Funds 2024 2024 2023 Rent recelvable Income from Investment porffollo 1,108,130 1.133.881 1,108,130 1,133,881 826,640 1,138,225 2,242,011 2,242,011 1.964.865 All Investment Income In the current and prlor years Is unr8slrlcted. Pa98 23
THE vARRIERONEs FOUNDATION (A Company Llmlted by Guarantae) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 OTHER INCOMING RESOURCES Investment Fund Total Funds Total Funds 2024 2024 2023 Managemanl fees Sludlo and room hlre Solar panel income Wayleave Income 3.657 7.584 7,763 7,297 7.673 2,624 7,297 7,673 2,624 17,594 17,594 19,004 All other Incomlng resources In the currenl and prior y8ars are unrestricted. INVESTMENT MANAGEMENT COSTS Investment As restated Fund Total Funds Total Funds 2024 2024 2023 Property portfolio m8nagemenl costs Property disposal costs Remedial cost provlslon on propertles Market Inveslment portfolio manag8m8nl costs Support rA>St8 - Staff Support costs - governance Support costs - other 569,040 30,342 475,000 175,507 48,756 6,670 49.556 569.040 30.342 474000 175,S07 48,756 6.670 49,556 398.904 175,694 38,287 12.600 57,302 1,354,871 1,354,871 682,787 All Investment management Gosls In the current and prfor y8ars 8r8 unrestdcled. Page 24
THE VARRIER-JONES FOUNDATION (A Company Llmlted by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ANALYSIS OF EXPENDITURE BY ACTIVITIES Grant fundlng of activltl8s {note 8) 2024 Support ¢0sts Total Funds Total Funds 2024 2024 2023 Supporting disability charilles 1.480.058 86,401 1,566,459 1,335,694 TOTAL 2023 1,330,000 5,694 1,335,694 ANALYSIS OF SUPPORT COSTS Supporting dlsability As re81aled charltles Total Funds Tot81 Funds 2024 2024 2023 Staff costs Repairs & m8lnlenanc8 Accountancy fees Bank charges Office cosls Travel Governance cosis 34,676 612 26,291 966 5,940 115 17,801 34,676 812 26,291 966 5,940 115 17,801 2,015 22 2,245 118 633 663 86.401 86,401 5,694 ANAL YSIS OF GRANTS Grants to charities Total Funds Total Funds 2024 2024 2023 Supporting people with dlsabililies 1,480,058 1,480,058 1.330,000 Page 25
THE VARRIER-JONES FOUNDATION (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ANALYSIS OF GRANTS (CONTINUED) Grants lo charities comprlse Ihe followlng: 2024 2023 Th8 Papworth Trust NARA The Breathing Charity Ipswlch Opportunity Group strongbones Chlldren's Charitable Trust St8pplng Slonos Rowan Humberslona Llmiled Able Kldz Bedford DIs8bled Horse Rldlng Assoclatlon (BDHRA) Burwell Prlnl Centre Hamelin Trust Tom's Trust The Back-up Trust Chlldren's Charitabl8 Trust Stowmarkel ASD Saturday Club Branchlng Out Other 1,431,300 1,300,000 3.000 5,000 10.000 3,000 9,000 3,000 5,000 5,000 7,785 4,215 6,000 8,398 6,000 3,000 360 1,480,058 1,330,000 GOVERNANCE COSTS 2024 2023 Trustees, indemnity insuranca Other professlonal fees Audlt fe8 4,748 9,748 9,975 4.629 1.184 7,450 24,471 13,263 Pag8 26
THE vARRIERONEs FOUNDATION {A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10. STAFF COSTS 2024 2023 Wages and salaries ConlribLttion to deflned c<)nlrlbulion pension s¢h8mes 41,870 1,570 38,889 1,413 Contractually employed staff costs 43,440 40,302 Temporary staff cosls 39,992 Total staff cosls 83,432 40,302 The average number of persons 8mployed by the Foundation durlng the year was as follows,. 2024 2023 Support & admlnlstratlon No employee recelved remuner31ion amounting to more Ihan £60.000 In eithar year, Key management personnel comprlse the Trustèes and the Operations Manager. The total amount of employee b8n8fils paid lo key managemanl personn81 durlng the y88r was £42.921 (2023.. £40,084)- 11. TRUSTEES. REMUNERATION AND EXPENSES Durlng the year, no Trustees recelved any remuneratlon or other benefits {2023- £NIL). Durlng Ihe y88r, exp8ns88 tolalllng £309 wer8 relmbursed or paid dlr8clly lo 3 Tnjslaas (2023 - £310 10 2 Trustees). These expenses related to travel and subslslenc8. Page 27
THE vARRIERONEs FOUNDATION (A Company Lirnited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12. INVESTMENT PROPERTY Freehold Inveslmenl property VALUATION At 1 Aprfl 2023 Dlsposals Unr8allsed loss In the year 18,211,752 (50,000} (585.750} At 31 March 2024 17,576,002 The hlslorical cosl of 811 Ihe Investment propertles at 31 March 2024 was £13,166,365 (2023-. £13,603,078). Investment prop&rti8s are revalued basèd on a profassional valuation by Peck Property Consullanls on a 4-year rolling review. Those properiias not included in Ihe professional valuatlon al 31 March 2024 have been reviewed by the trustees, who are of the oplnlon that the valuation included in th8 accounts is consist8nt wllh Ihe current fair value for these properties. 13. FIXED ASSET INVESTMENTS Market Investment investments eash Total VALUATION At 1 Aprll 2023 Addltlons Disposals Unrgalised galn Cash movement 37,051,039 19,825,384 (20,138,575) 3,673,507 909,477 37,960,S16 19,825,384 <20,138,575) 3,673,507 (292,705) 1292,705) At 31 March 2024 40,411,355 616,772 41.028,127 Page 28
THE VARRIER•JONES FOUNDATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 13. FIXED ASSET INVESTMENTS {CONTINUEO) Mark81 value represented by.. 2024 2023 Hlsloric81 cosl of 8588ts Unreelised galns 36,068,66B 36,282,297 4,959,459 1.678.219 41,028,127 37,960,516 Inveslmènls held as: 2024 2023 Cash & cash equlvalants Flxed Income UK equllles Global equilles Alternallve inveslmenls 618,772 977,259 6,637,115 6,446,723 2,718,840 7,252,894 27,320,193 17.858,541 3,735,207 5.425,299 41,028,127 37,960.516 As 8t 31 Marth 2024, the portlollo Included one Investment that Indlvldually comprised more Ih8n 50k of the portfolio value. This Investment was a corporate bond fund pmfessionally managed by third-paty Invèslmenl fund managers and diverslfied across several corporate entities. As such, the Twstees do not conslder Ihls Investmant to represent an Inapproprlate con¢entrallon of counlerparly risk. 14. DEBTORS AS restated 2023 2024 DUE WITHIN ONE YEAR Trad8 deblors Other deblors Prepawnenls and accrued income 52,136 85,527 27,194 37,031 35,456 3.954 164,857 76,441 Page 29
THE VARRIER-JONES FOUNDATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR As reslaled 2023 2Q24 Trade creditors Other lax81ion and soclal sècurlty Other creditors Accruals and deferred Income 23,020 51,738 91,472 233,005 39,446 20,481 45.941 73,380 399,235 179.228 As rest81ed 2023 2024 'Deferred Income at 1 Aprll 2023 Resources defarred durlng th8 year Amounts released from prowous perlod8 17,395 184,462 124,1 $3 3,395 {9,395) {170,462) 132,153 17,395 Deferred Income amounllng to £124.153 relates to r8n181 income received In advance. Also Included is deferred Income amountlng to £8,000 in respect of monies recelved for the granting of a 25-year lease. Amounts havè been deferred lo spread the income over Ihe remalnlng tern of the lease. 18. CREDITORS,, AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2024 2023 Building repair r8ceipts In advance Deferred income 49,303 2,OQO 48,650 8,000 51,303 56,650 Page 30
THE vARRIERONEs FOUNDATION {A Company Llmited by Guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 17. PROVISIONS Remedlal property costs Papworth Bypass Total At 1 Aprll 2023 Additions 150,800 150.800 475,OQO 475,000 150,800 475,000 625,800 Papworth Bypass The provislon represents polenllal compensation claims arising from thè development of the Papworth bypass. The tlming and amount of these clalms are uncertain. Romedlal proporty ¢osts The provlsion repr08enls the esllmat8d n8t cost ol r8lnsl8llng property to Ils form8r state. 18. PRIOR YEAR RECLASSIFICATIONS The followlng reclassilcallons havg been made to the 2023 comparallve figures. None of these changes has an impact on the net èxpenditure and funds reported in the 2023 financial stalemenls. Sarasin Income account The balance in the Sarasin income account was Ire8led as 8ccrued income and disclosed as a debtor. AS thls balance meats th8 definltion of cash and cash equlvalenls, il has been reclassifi8d to cash al bank and in hand. Thls has decreased debtors and increased ¢8$h 81 bank end in hand by £154,120. Statement of cash flows Dividend and rer)lal income generated from the S8rasln portfollo and Investment propertles, respectlvely, was classlfied as a cash flow from operallng acllvities, As Ihls Is a cash flow from Investment acllvltles, il has been réclassified to Investing acllvilles. This has increased cash Ilow from investing aclivilies and decreased cash flow from operating activities by £1,964,865. Other costs Governance costs tolalling £13,263 were classified as othèr costs and shown separately on the Statement of Financial Activllies. These costs have b8en reclasslfle(J lo charllable a¢tlviti8s {£663) and lundr8i8ing activltl8s (£12.600> in proportlon to Ihe relative time spenl on each aclivlty. Renl d8posSts Rent deposlts amounling to £44,324 w8r8 classified as deferred Income In prevlous years. These have b88n reclassified to other credllors, which betler reflects their nature, Funds The brought forward Income Fund balance has been reslated lo show £78,031, which Is the funds that were freely available to spend on charitable actiwties on 1 April 2022. In addition, expenditure allocated to the Income Fund has been Increased by £663, r8flectfng th6 gov8rnan¢e costs allocated lo ch8ri1abl8 acllvilles. These changes to fund5 renecl the Foundation's total retum policy, which w85 in place at the lime. Page 31
THE VARRIER-JONES FOUNDATION (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 19. STATEMENT OF FUNDS STATEMENT OF FUNDS - CURRENT YEAR As restated Balance at 1 April 2023 Balance al 31 March 2024 Transfers Inlout Galnsl (Losses) Income Expendlture INCOME FUNO Income Account 212,337 (1,566,459) 1,603,500 249,378 INVESTMENT FUND Core C8Pital Account Capital Reserves Accounl 49,454,830 1,872,110 51,326,940 6,846,663 2.259,605 (1,354,871) 13,475,610) 2,939,176 7,214,963 56,301,493 2,259,605 (1,354,871) 11,603.500) 2,939,176 58,541,903 TOTAL UNRESTRICTED FUNDS 56,513,830 2,259,605 <2.921,330) 2,939.176 $8,791,281 Page 32
THE vARRIERONEs FOUNDATION (A Company Llmltad by Guarantée) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 19. STATEMENT OF FUNDS (CONTINUED) Income Fund The Income Fund represents funds thal are freely avallable to spend on charitable aclivllles. The transfer to this account represents an allocatlon of funds from the Inveslmenl Fund (Capllal Reserves Account) to fund charitable activities during the year. The amount transferred represents 3.250/0 of the quarterly investment assets {less provisions and certain other costs) over a Iraillno three-year period. The Trustees believe Ihal Ihis represents the appropriate funds requlred lo achieve a sustalnable level of charitable activities. Inveslment Fund The Inveslmenl Fund rèprèsents designated funds thal have been Inv8st8d to provlde a long-term source of lolal return lo fund the Foundatson's charltable aclivilies. Core Ca unl The Core Capllal Account represents the real value of Ihe orlginal gift made by The Papworth Trust to the Foundation. The Trustees alm to preserve the value of thls fund lo ensure the gift can contlnue to generate Sufficient lolal return fijnding for charltable ac15vlll8s over Ihe long term. The transfer to thls account represents the increase in CPI during the year. Ca 1181 R8se es Accounl The Capltal R8S8rves Account represents tha unappli8d total ralurn. baing the surplus of investment funds over the real value of the ortginal gift from The Papworth Twsl. This account is the portlon of the Investment Fund Ihal can be tr8nsferred lo the Income Fund without diminlshlng the r8al value of the origlnal glft. The transfer from this fund represents a transfer to the Core Capltal Account (to allgn th8 Core Capital Account wllh the real value of gifted assels) and a transfer to the Income Fund to fund charltable acllvilles. Page 33
THE VARRIERJONES FOUNDATION IA Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 19. STATEMENT OF FUNDS {CONTINUED STATEMENT OF FUNDS - PRIOR YEAR As restated Balanc6 81 31 March 2023 As restated Balance al 1 Aprll 2022 As reslaled Incorne Expendllure Transfers Inloul Gainsl (Losses) INCOME FUND Income Account 78,031 (1,335.694) 1,470,000 212,337 INVESTMENT FUND Core Capital Account Capital Reserves Account 44,957,316 4,497.514 49,454,830 13,861,969 1,983,869 1682.787) {5,967,514) (2,348.874) 6,846,663 58,819,285 1.983,869 1682.787) {1,470,000) (2,348,874) 56,301,493 TOTAL UNRESTRICTED FUNDS 58,897,316 1,983,869 (2,018,481) (2,348,874) 56,513,830 Pag6 34
THE VARRIER-JONES FOUNDATION (A Company Llmlted by Guaranteè) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 20. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES As r8slatad 2023 2024 Nel Incomelexpendilure for the p8rlod (a8 per Statement of Flnancial Activities) 2,277,451 (2.383,486) ADJUSTMENTS FOR.. Gainsl{losses> on invèslm8nls Dividends, Inter8sls and rents from Inv8Stm8n18 Non-ca8h Inveslmenl Iransactlons Increase In debtors Increasel(decrease) in creditors Increase in provisions (2,939,176) 2,348.874 (2,242,011) (1,964,865) (6851 (88,4161 214,660 475,000 <1,790) (268,287) NET CASH USED IN OPERATING ACTIVITIES <2,303,177) {2,269,554) 21. ANALYSIS OF CASH AND CASH EQUIVALENTS A$ r8slated 2023 2024 Nalwesl cash Sarasin Incomo Account cash 968,709 129.924 497,679 154.120 TOTAL CASH AND CASH EQUIVALENTS 1,098,633 651,799 22. PENSION COMMITMENTS During th8 year. Ihe Foundallon paid contribullons Into one employee's personal pension scheme (2023: one employe8). Th8 p8n$lon cost charge reprèsents contribullons payable by the Foundation lo the funds and 8motsnled to £1.570 {2023'. £1,413). There were no oulslanding contrlbulions at 31 March 2024 (2023.. £2441. Pag8 35
THE vARRIERONEs FOUNDATION (A Company Llmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 MARCH 2024 23. LESSOR The operatlng leases represent leases to thlrd partles. The leases are negotiated over various terms. At lh8 reporting end date, th8 FoLtndallon had ntracted wlth tenants for the following mlnlmum leasa payments. 2024 2023 Wilhin one year 88een two and five years In over flve years 842,405 1.456,035 1,309,88Q 789,566 2.257,255 1,613,214 3,608,32Q 4.660.035 24. RELATED PARTY TRANSACTIONS Durlng the year, the Foundatlon was charged costs of £45,830 (2023.. £44.137) by Papworth Trust In order lo provlde fln8nclal management, HR and IT support. All of the Iransactlons w6re carrled out on an arm's length basls and no amounts were outstandlng at Ihe year-end. The Foundation charged Papworth Trust rentsl costs of £11.500 (2023.. £20.256) during the year, also catTied out at arm's length. At 31 March 2024, the amount du8 to Papworth Trusl was £nll (2023.. £nll). The amount due from P8PWOrth Trust w8s £33 (2023,. £nll). During the year, the FoundatSon awarded grants to Papworth Trust of £1,431,300 (2023: £1.300,000) 25. CONTROLLING PARTY The Foundallon Is controlled by the Board ol Trustees, who are also the members and the dir8Ctor8 under company law. Page 36