THE BROAD CAIRN FOUNDATION (Registered Charityin England and Wales No. 10739291 TRUSTEES, REPORT AND FINANCIALSTATEMENTS YEAR ENDED 31 DECEMBER 2020 THE BROAD CAIRN FOUNDATION TrUSTEES' REPORT AND FINANCIALSTATEMENTS 31 DECEMBER 2020 Page No Reference ar¥J Administfation Trustees, Annual Report Independent AAJditor's Report Statement of Financial Artivities 12 Balance Sheet 13 Notes to the Financial Statewents 14 THE BROAD CAIRN FOUNDATION REFERENCE ANDAI)MINISTRATION D￿Alls OF THE CHARITY. ITS TRUSTEES AND ADVISERS Trustees Baronessshackleton of Belgravia LVO John Guy Elmhirst Monson Rebecca Priestley Charlty Reglstered No. 1073929 Principal Offl¢e 70 Grosvenorstreet LondonWIK 3JP ankers The Royal 8ankof Scotland plc Parklands 3 De Havilland Wav Horwich Bo￿on BL6 4YU Solicitors Payne Hick5 Beach 10 Newsouare Lincoln's Inn London WC2A 3QG Investment Manager Schroder& Co. LimTted l London Wall Place London EC2Y SAU Audltor Deloitte LLP 5tatutoryAuditOT l New Street Square London EC4A 3HQ THE BROAD CAIRN FOUNDATION TRUSTEES, ANNUALREPORT YEAR ENDED 31 OECEMBER 2020 The Trustees are pleased to presenttheirannual reportalong with the financial statementsofThe Broad Cairn Foundation for the year ended 31 December 2020. STRUCTURE. GOVERNANCEAND MANAGEMENT al Constitution The charity wasformed undera Declaration of Trust dated 14 January IWJ. The Trusteeswho served duringtheyear were: 8arone55 Shackleton of 8elgravia LVO John Guy Elmhirst Monson Rebecca Priestley No Trustee had any interests in the charr¢v. bl Method of electlon olTruslees New or additional Trustees are appointed by deed. EveryfutureTrustee must sign a declaration of willingness to at( as a Trustee before he orshe is eligible ro vote at any meeting of ihe Trustees. The currentTrustees ensure thatan appropriate inducrion Pfogramme is un(Jertaken in the event of a new appointment. To date, Trustees have been recruited with theirspecific skills and experience in mind, although fvrthertraining is undertaken where necessary. ) Or8anis*lonal structure and decisionfflaking The Foundotion operates from its head office at 70 Grosvenor Street, London. TheTrustees meet at least once a yearto considerappeals for8rantS. the current and future financial position of the Foundation and longerterm str3teEV. Oay to day responsibilityfof the running of the Foundation has been delegated to a small teamof suitabfy qualbfied indrviduals ernployed bythe Grosven Family Office. The Foundation does not employanystaff direttly. The Foundation ha5 regard to the seven principles of good governance and best practice which are set out in the Charity Governance Code. dl ftlsk Mana8ement The major risks to which ihe charity is exposed as identified by the Trustees have been reviewed, and procedures have been established to mrtl8ate those risks. A full risk assessment is undertaken on an annual basis by the Trustees. The key risks that have been identrfied and which are carefulty rnonitored are.. Poorperformance of the investment portfolio leadingto a material financial loss of our main source of funding. Thi5 has been mitigated by diversification of Investments and regular performance monitoring.. and Risk of fraud or failure of ifbternal financial controls which is mitigated by shared authorisation procedures. THE BROAD CAIRN FOUNDATION TRUSTEES. ANNUAL REPORT YEAR ENDED 31 OECEMBER 2020 08JECTIVES AND ACTIVITIES al Objertlves The assets of the charity are held ontrust for such exclusp4etycharitable objectsorpurposes in any part of the world a5 the Trustees may from time to time detemiine. bl Alms The charity is a grant makin8foundationthal aims principally to address social welfare issues by supporting appropriate registered charities. {) Statementof public benefit The Trustees have paid due regard to the guidance produced bythe Charity Commission when reviewing the Foundation'saims and objertives antl are satisfied that the charitable artivities and project5 funded through grant making are of direct benefitto the public. The Trustees. responsibility isto ensure that the moniesare being spent in line with the charitvs aims and objectives. Forgrants greaterthan £5,(￿ the Trustees requestan impart report from the recipientcharf(ies explaininghow the donation has been Util￿ed. dl Grant Maklng Pollcv The Foundation concentrates it$ grant making3Ctivities almostexclusivelyon smaller charities where its contribution can make a real difference. TheTrustee5' grant makin8priorities are.. Dlsodvontaqedchildrenand YoungPetsple. To help disadvanta8ed young people and to enable them to participate in society by providing support and activities which develop theirskills. confiden￿, and aspiration. Third WorldlnArnstwrtureanddevelopment. To assist charities supportin8the third world. especiallythose svpporting infrastructure such as clean walerand agricultural improvements. Conservation andsustointtbledevelopment. To help promote conservation and the sustainable use of the World's scarce resourcesforthe benefit ofthose whose lives depend on them and forfuture generations. Heritaqe. To supportthe renoVat￿n and conservation of historic buildings and monuments. Support is given mainly by grant5 to appropriate registered charities. On occasion, the Foundation mav supporttharitie5 that are exempt orexempted from registration, or projectswhere the grant is for an exclusivew charitable purpose. Proposals are likely to be invited by the Trustee5, and in generalthe Foundation does notfund unsolicited appeals. Grants are not made to individuals. ACHIEVEMENT5AND PERFORMANCE al Reviewof artivitie5 and financial review The financial statements below give detailsof the financial transactions in the year and the financial position at the year end. Total income forthe year of £34.40212019.. f58,9211 was£24.519 lowerdve to a decrease in donations received of £26.c(rJ. Expenditure totalling £32.399 was £31.784 lower12019.. £64,183), largely due to a decrease in grant making of £31.964. Grants totalling £22.15012019.' £54.1141 were made ¢Juringthe year. Fifteen grants were awarded duringthe year, with an average size of £1,477. The largest grants awarded were £IO,(DJ (spread across4 grants) to support regions affected bythe Australian bushfire5 at the start of 2020, £5,(KK) to the Game & Wildlife Conservation Trust and £3.Cth for the National Emergencies Trust Coronavirus appeal. 2019 grant makingwas more than the distribution targetset last yearreflecting an THE BROAD CAIRN FOUNDATION TRUSTEES, ANNUALREPORT YEAR ENDEO 31 DECEMBER 2020 ACHievEMENTSAND PERFOIIMANCE {CONTINUEDI underspend in 2018. The distribution target for 2020 was £40.¢XO Irepre5entin8 3% of the openinginvestment portfolio value in accordance with the Trustees, previousty agreed distribution polity) plus cash unspent in previousyears. Actual grant making was le5$ than target and theTrustees will seek torectify this as soon as possible in future financial year5. The Trustees did not feel it necessary toadjustthe distribution tar8etas a resultof Covid-19. Overall, the impact of the pandemic on the Foundation was minor with a small decrease in the value of the investment portfolio and an improvement in investment income. bl Investmentpolicyand perforniance The Tnjstees have wide investment powefs and a policy of 5eekin8 a fair balance between capital growth and income yield. The market value of investments lincludingcash held wiihin the portfolio) decreased to £1.321,019 12019.. £1,329.4591. a decrease of 0.6%. The overall return of the investment portfolioforthe yearwa$ 1.8% compared to a benchmark return of 4.7% IRPI plus 4%1. The asset allocation on 31 December2020 and 31 Decembef 2019 was: 2019 UK equities Global equities Emerging markets Multi-asset funds Global bonds Propertyfunds Cash 25 41 io 29 37 io io li No thanges were made to asset allocation dLsrirtg the year. Financial Markets experienced unprecedented volatility duringthe hei8htof the Covid-19 pandemic in March but managed to Tecovertheir losse5. The Trustees regular￿ review the perfomiance of the investment portfolio. and during 2021 will continue to reviewthe asset allocation with their advisors. OTHER al Reser¥es pollcy The Trustees policy is to relain 12 months of funding in cash, which is approximately £40,CW based on year end values. The year-end cash balance of £33,211 is belowthis- however, the charity has no commitments or significant operatingexpenses. The Foundation'sfunds are all unrestrirted and may be used in furtherance of its charitable objects. The investment portfolio (which is the main asset of the Foundation) is large￿ invested in liquid assets which could be realised if necessary, should any unforeseen circumstancesarise. At the balance Sheet date. theTrustees are satisfied thatthe current level of available funds meetsthe Foundation's reqLtirements. Unrestricted fund5at 31 December2020 are £1.351.689 12019.. £1,357,267). THE BROAD CAIRN FOUNDATION TRUSTEES. ANNUALREPORT YEAR ENDED 31 OECEMBER 2020 OTHER(CONTINUEDI bl Plans for futureperiods The Trustees will continue to supportthe activf(ies setout above bythe award of grants. c) Goingconcem Having considered the charity's resetves and commitments, the Trustees believethat the Foundation will be able to maintain positive cashflowsfor at least 12 monthsfrom the date of signing the financial statements. As a result, the going concern basis of accounting remains appropriate. dl Audltor A resolution forthe reappointment of Deloitte LLP as the charity's auditor will be proposed at a future Trustee meeting. Statementof dlsclosure to the Audltor A5 faras the Trustees are aware.. there is no relevant audtt inforniation of which the charity's audrtor is unaware.. and the Trustees have taken all the Steps thattheyought to have taken as a Trustee to make themselves aware of any relevantaudit infOrmat￿rt and to establish that the charity's auditor Is aware of that information. THE BROAD CAIRN FOUNDATION STATEMENT OF TRUSTEES. RESPONSIBIUTIES Thetrustees are responsible forpreparingthe Trustees'Annual Report and the financial statement5 in accordance wrth applicable law and Untied Kingdom Accounting Standards Iunited Kingdom Generallv Accepted ACcountingPra£ti￿l, including FRS 102"The f inancial Reportingstandard applicable in the UK and Republicof Ireland" The law applicable to charities in England and Wales reqltiresthe trustees to prepare financial statements for each financial yearwhich give a true and fair view of the state of affairsof the charity and of the incoming resourcesand application of resourcesof the charrty for that period. In preparingthese finantial statements. the truStee5a￿ required to- select suitable accountingpolities and then app￿ them consistentlv; observe the methods and principles in the CharitiesSORP.. make judgments and estimates thai are reasonable and pfudent.. state whetherapplicable accountlng standards have been followed. subiecttoany material departuresdisclosed and explained inthe financial statements.. and prepare the financial statementson the going concern basis unless rt is inappropriate to presume that the chanty will continue In business. The trustees are responsible forkeepingproperaccounting recordsthat disclose with reasonable accuracv at any time the financial position of the charity and enable them to ensure that the financi31 statements comply with the CharitiesAct 2011, the Charity (Accounts and Reports) Re8ulations 2¢))8 and the provision5 of the trust deed. Theyare also responsible forsafeguardingthe assets of the charity and hence for taking reasonable steps forthe prevention and detertion of fraud and other irregularitie5. The trustees are responsible lorthe maintenance and integrity of the charity and finantial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may dillerfrom legislation in otherjur1sdict￿n$. This reportwas approved and authorised forissue bythe Trustees on I july 2021 and si8fied on their behalf by.. Barones Trustee ackleton of Belgravia LVO THE BROAD CAIRN FOUNDATION INDEPENDENT AUOITOFVS REpoKf TO THE TRUSTEES OF THE BROAD CAIRN FOUNL)ATION REPORT ON THE AUDIT OF THE FINANCIALSTATEMENTS Oplnion In our opinion the financial statementsof The Broad Calm Foundation Ithe'charitv'l.. give a true and fair viewof the state of the charrty's affairs as at 31 December2020 and of its ncoming resources and application of resourcesforthe year then ended.. have been properly prepared in accordance wyth Unrted Kingdom Generally Accepted Accounting Practice, including Financial Reportin8Standard 102 'The Financial Reportingstandard applicable in the U K and Republic of Ire13nd"; and have been prepared in accofdance with the CharitwesAct 2011. We have avdited the financial statement5whKh comprise.. the statementof financial actNlties- the balance sheet. the statement of accountingpolicies: and the related notes I to & The financial reporting frameworkthat has been applied in their preparation is applicable law and United Kingdom Accounting Standards. includin8 Financial Reporting Standard 102 Yhe Financial Reporting Standard applicable in the UKand Republic of Ireland" Iunited Kingdom General￿Accepted Accounting Pratticel. 8asls loroplnlon We conducted ouraudit in accordance with International Standardson Auditing IUKI IISAS IUKlland applicable law. Our responsibilities underthose standardsafe furtherdescribed in the audilor's responsibilitiesfor the audtt of the financFal statements sectionof ourreport. We are independent of the charityin accordance with the ethical requirements thatare relevantto our audit of the financial statements in the UK. including the Financial ReportingCouncil'5 Ithe'FRC's'l Ethical Standard, and we have fulfilled our otherethical responsibilities in accordance with these requirements. We believe thatthe audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion. Concluslons relatingto going con¢em In auditing the financial statements, we have concluded thatthe trustees. use of thegolngconcern ba515 of accounting in the preparation of the finanual statements isappropriate. Based on the work we have performed. we have not identified any material uncertai nties relating to events or conditions that. individually or collectNely, may cast SlBnificant doubt on the charitY'5 ability to continue as a going concern fora period of at least twelve monthsfrom when the financial Statements are authorised for issue. Our responsrbilities and the responsibilitie50f the trustees with respect to going concern are described in the relevantsections of this report. THE BROAD CAIRN FOU14DATION INDEPENDENT AUDITOIYS REpoKf TO THE TRU5tEES OF THE BROAD CAIRN FOUNDATION la)ntinued) Other infomation The other information comprisesthe information included in the annual report, otherthan the financial Statements and ouraudltorfs report thereon. The trustee5are responsible forthe other information contained within the annual report. Our opinion on the financial statements does notcoverthe other information and we do not expressanyform of assurance condusionthereon. Our responsibilrtyis to read the otherinformat￿n and, in doing so, consider whetherthe other informat is materially inconsistentwiththe financial statementsorour knowledge obtained in the course of the audit, or otherwise appearsto be materially misstated. If we identify such material inconsistencies or apparent rnaterial misstatements. we are required to determine whether thisgives rise to 3 material misstatement in the financial statement5 themselves. If, based on the work we have performed, we conclude that there is a material mi5Statementof thi50therinformation, we are required to report that fatt. We have nothingto report in this regard. Responslblllties of trustees A5 explained more fully in the trustees. responsibilitiesstatement. the trustees are re5pon5ible forthe preparation of the financial staternentsand for being 53tisfied that theygive a true and fair view, and for such internal control as the trustees deteimine is necessary toenable the preparation of financial statements that are free from material misstatement, whetherdueto fraud or error. In preparingthe linancial statements, the trustees are responsible forassessingthe charity's ability to continue as a going concern, disclosing. as applicable. matters related to going contern and using the 8oln8 concern basis ol accountin8 unlessthe trustees eitherintend to liquidate the charity or to cease operations, or have no realistic alternatr4e but to do 50. Audltorfs responslbllltleslorthe avdlt of the flTran¢ial ststements We have been appointed as auditorundersection 144 of the Charilies Art 2011 and report in accordance wbth the Act and relevant regulationsmade or having effertthereuThYer. Our objectives are to obtain reasonable assurance about whetherthe finanaal statements as a whole are free from material misstatement. whetherdue tofraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a Buarantee that an audit conducted in accordance with ISAS IUKI will aKvays detecta moterial misstatementwhen it exists. Misstatements can arise from fraud or error and are considered material If, indivi¢Jually or in the aggregate, they could reasonably be expected toinfluence the economicdecision50f users taken on the basis of these financial statements. A furtherdescription of our responsibilitiesfor the audrt of the financial statements is located on the FRC'S website at.. www frc.or uk auditor5res onsibilifies. This description forms part of our auditor's report. Extent to whi¢h the audit was ￿nsIdered(aPable of detectin8irre8ularitie5. indudlng fraud Irregularities, including fraud, are instances ol non-compliance with13ws and regulations. We design procedure5 in line with our responsibilities. outlined above. todetert material mi55tatements in respect of irregularities, including fraud.The extent towhich our procedure5 are capable of dete¢tin8 irregulaflties, including fraud is detailed below. We considered the natu￿ of the charrty's industryand its control environment, and reviewed the charity's documentation of theirpolicies and procedures ￿latingtO fraud and compliance with laws and regulations. We 3150 enquired of management andtrustees abouttheirown identrfication and assessment ofthe risks of irregularities. THE BROAD CAIRN FOUNDATION INDEPENDENT AUOITOIYS REPORT TO THE TRUSTEES OF THE BROAD CAIRN FOUNDATION (continued) We obtained an understandingof the legal and regulatoryframeworkthatthe charity operates in, and identified the key laws and regulations that.. had a direct effect on the determination of material 3mountsand d¢sclosures in the financial statements. These included the UK Charities Act.. and do not have a direct effect on the financial statements but compliance with which may be fundamental to the charit￿$ ability to operate orto avoid a material penaltv. We discussed among the audit engagement team regardingthe opportunitiesand incentives that may exist within the organisat￿n forfraud an(J howand where fraud might occur in the financial statements. As a result of perfomiingthe above, we identified theBreatest potentialforfraud or non.compliance with laws and regulations in the following area, and our specific proceduresperformed to address it is described below.. we prestjme a risk of material misstatement duetofraud in revenue recognition which is related to the completeness of donation income. To addre551hi5 risk. we ￿VieWed the Trustees, meetin8 minutes, all bank statements in the period, and post yearend records up to the date of this report to test whether Income had been appropriately included in the financ￿1 statements. In common with all audtts undef ISAS IUKI, we are also required to performspecificproceduresto respond to the risk of management override. In addressingthe riskof fraud through management override of controls, we assessed the (Jesign and implementation of controls overthe assessment and approval of grant awards; we tested the appropriateness of journal entriesand otheradjustments- assessed whether thejudgements made in making accounting estimates are indicative of a potential bias,. and evaluated the business rationale of anysi8nificant transactionsthat a￿ unusualor outside the normal course of business. In addition to the above, our proceduresto respond tothe risks identified included the following.. reviewingfinancial statement disclosures by testingto supporting documentation to assess compliance with provisions of relevant lawsand regulations described as having a difect effect on the financial statements,. performin8anafytical procedures to identifyany unusual or unexpetted relationship5 that may indicate risks of material misstatementdue to fraud,. enquiringof managementconcerning actual and potential lrtigation and claims, and instances of non- compliance with laws and regulations.. and readin8and reviewing minutes of meetinBsofthose charged with governance. Report on other legal and regulatory requirements Matter5 on whith we are requlredto report by exceptlon Underthe Charities IAccounts and Reports) Regulations 2(IA we a￿ required to report in respect ofthe following matters if. in our opinion- the information given in the financial statementsis inconsistent in any material re5pectwith the trustees, report,. or sufficient accounting records have not been kept.. or the financial statements are not in agreement withthe accounting recordsand returns. or we have not recewedall the information and explanation5we require forour audit. We have nothingto report in respect ofthese matters. io THE BROAD CAIRN FOUt4DATION INDEPENDENT AUDITOWS REPORT TO THE TRUSTEES OF THE BROAD CAIRN FOUNDATION l¢ontlnued) Use of our report This report is made Sole￿ to the ch3rity'strLtsStees, as a body. in accordance with Part 4 of the Charities (Accounts and Reportsl Regulations 2CLB. Our audit work hasbeen undertaken so that we might State to the charity's trustee5 those matters we are required to state to them in an auditorfs reportancl for no otherpurpose. Tothe fullest extent permitted by law. we do not accept or assume responsibility to anyone otherthan the charity and the charity's trusteesasa body, forour audit work. for this report, or forthe opinion5 we have formed. Deloitte LLP StatutoryAuditor l New Street Square London EC4A 38Z 19July 2021 Deloitte LLP is eligible for appointment asauditor forthe charity by virtue of its eli8ibility forappointment as audit of a company undersection 1212 of the CompaniesAtt 2￿. li THE BROAD CAIRN FOUNDATION STATEMENT OF FINANCIALAalVITIES YEAR ENDED 31 DECEMBER 2020 Note Unrestricted Funds 2020 Unrestritted Fund5 2019 Income from: Donation5 29.ClXJ Investment Income.. Income from investments 31.401. 29,915 Bank Interest receivable Total Income 34.402 58,921 Empendlture on: Raisin8 funds 13,114):: 13,0731 Charltable activitie5 129,285 161,1101 Total expendlture 132,399P 164,1831 Net 5ncome I lexpendlturel before Investment Ilossesl Igains 15,2621 Realisedgains on disposal of investments Unrealised IIos5esl Igains on investments 26,559 17.581 103,894 Netlexpenditurel Ilncomeand movement In funds 15,578 131,191 Reconclllatlon of funds Funds broughtforward l January 1.357,26 1,226,076 Funds carried forward 31 Oecember I35L 1,3S7,267 All income and expenditure relate to continuingoperations. There were no otherrecognisedgain5 or losses for the currentyear or precedingyear otherthan those shown above. 12 THE BROAD CAIRN FOUNDATION BALANCE SHE YEAR ENDED 31 DECEMBER 2020 Note 31 Oeomber 2020 31 December 2019 FIXED ASSETS Investments Cash held with broker5 Total fixed assets 1.317.51&. 3,503 1.321.019 1,322,841 6,618 1 329 459 CURRENT ASSETS Debtors Cash at bankand in hand 1.437¥ 33.211 5,767 25,941 31.708 CURRENT LIA81LITIES Creditors Netcurrent assets 27,808 NET ASSErs 1,351,689 1,357,267 FUNDSOFTHE CHARITY UNRESTRICTED FUNDS 1.351.689 1,357,267 These financial statements of The 8road Cairn Foundation, re81Stered number 1073929, were approved by the Board of Tru5teesand 3Uthorised fori5sue on l Jufy 2021. . Baroness Shackleton of 8elgravia LVO ..John Guy Elmhirst Mon50n 13 THE 8ROAD CAIRN FOUNDATION NOTES TO THE FINANCIALSTATEMENTS YEAR ENDED 31 OECEMBER 2020 ACCOUNTING POLICIES lal 8asis of Accounting The financi31 statements are prepared underthe historical cost convention, with the exception of investments which have been included atmarket value. in accordance with the Statement of Recommended Practice -Accountingand Reporting by Charitses ISORP 20191" applicable to charities preparing their accounts in accordance with the Financial Reportingstandard applicable in the UK and Republic of Ireland IFRS 1021, effe(tNe ljanuary 2019. The charity constitutes a public beneftt entityas defined by FRS 102. The charity's activities. togetherwrth the factors likely to affect its future development. performance and position are setout in the Trustees Report which also describes the financi31 position of the charity includin8 tts cash, investments. distribution5 and reserves policy. Taking these into consideration and the fact that all funds are unrestrirted, the Trustees have 3 reasonable expectation that the charity has adequate resourcesto continue in opeiational existence forthe foreseeable future. Therefore, they continue toadoptthegoin8 COn￿M basis of accountin8in preparin8the annual report and financial statements. The funrtional currencyof the charity is pound5 Sterlingas the charity operates and received income inthe UK. The principal accounting policie5 are set out below. Ibl Investments Listed investmentsare valued atthe market price from a ￿COgnised stock exchange atthe balance sheet date. Realised and un￿alised8alnS and losses on investments are included in the Statement of Financial Activities. Realised gains and losses on investment5are calculated as the difference between sale proceeds and opening market value lorvalue at the date of purchase if later). Unrealised gains and losses are calculated as the difference between the market value atthe yearend and opening m3Tketvalue lor value at the date of purchase if laterl. The Foundation is large￿ invested in unrt trusts or Common Investment Funds. Investment management fees forthese fund5 are reflected in the fund valuations and are not pa id directty to the managers. Custody fees charged bySchroder& Co are reported within expenditure on iaisingfunds. Icl Income and Expenditure Income is 3CCOUllted for in thestatementof Financial Activities when the Foundation is legalfy entitled to the income and the amount can be quantrfied with reasonable accuracy and is probable to be received. Income from investment5 15treated as recetvable when the investment 15 quoted ex- dividend. Otherincome all expendtture are accounted foron an accruals basis. Grants payable are payments made tothird parties in the furtherance of the charitable objects of the Trust. Costsof raising fundscomprise investmentman3gementCOStsas50ciated with managing the Foundation'5 investments. Included in charitable expenditure are the auditfee and managementfee which are allocated to charitable activities. 14 THE BROAD CAIRN FOUNDATION NOTES TO THE FINANCIALSTATEMENTS ICONnNUED} YEAR E140ED 31 DECEMBER 2020 Idl Taxation On the basis that the aciNities fall wrthin charitable purposes and the fundsare applied onlyforthe5e purposes, no provision fortaxatbon is made. lel Fund Accounting All funds are unrestricted and can be used in accordan￿ with the Foundation'5charitable objects at the discretion of the Trustees. lfj Financial Instruments Financial assets and financial liabilities are recognised when the tharty becomes a party to the contractual provisions of the instrument. Investment5are initially reco8nised at transartion value and subsequentty measured at fair value. Trade and otherdebtorsafe recognised at the settlement amount due after any trade discount ollered. Cash at bank and cash in hand includes cash and short terrn highty liquid investments with a short maturityof three monthsof less from the date of acquisition or opening of the depositor similar account. Creditors and provisions are fecognised where the charityha5 a presentobligation resultin8 from a past event thatwill probably resuh in the tfansferof funds to a third party and the amountdue to settle the obligation can be measured orestimated reliably. Creditors and provisions are normally recoEnised at theirsettlement amountèfter allowingfor any trade discountsdue. 181 Crrtical accountin8jud8ementsand key sourcesofestimation uncertainty In the application of the tharrty's accounting policies, the Trustees are requlred to makejudgements, e5timaies and assumptions about the carrying amounts of assets and liabilrties that are not readily apparent from other50urces. The estimates and associated assumptions are based on historical experience and otherfactorsthat are considered to be relevant. Acrual results may differfromthe5e estimates. The estimates and underlyingassumptions are reviewed on an ongoing ba515. Revisionsto accounting estimates are recognised in the period in which the estimate 15 revised if the revision afferts onlythat period, or in the period of the revision and future periods rf the revision affects both current and future periods. The Trustee5 do not considerthere are any critical judgementsorsourcesof estimation uncertainty requiring disclosure. 15 THE BROAD CAIRN FOUNOATION NOTES TO THE FINANCIALSTATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020 USTED INVESTMENTS The portfolio is invested in severalfundswhith are di¥ersrfied by both manaEerand asset class. The value of investments at the year end has been provided bythe investmentmanager based on the market value at 31 December. The movements in the por(folio during theyearwere as follows- 2019 Market value l January Additions 1.322,841 1,118,%2 2,256 381,238 Disposals at carrying value 1287,2531 Unrealised Ilossesl Igains 17,5811 109.894 Market value 31 December 1.317,516 971.491 1,322,841 969,235 Cost 31 December OE8TORS- Arnount5 falllngduewthinone ye 2020 2019 Dividend account with fund mana8er 1.437 CREDITORS- Amountsfalllngdue wlthlnone year 2020 2019 Accruals 16 THE BROAD CAIRN FOUNDATION NOTES TO THE FINANCIALSTATMENTS {CONTINUEO) YEAR ENDED 31 DECEMBER 2020 5. ANALYSIS OF EXPENOITURE ON CHARITABLE AcllviTIES Year ended 31 December 2020 Yearended 31 De¢ember 2019 Grant maklnÉ'. COnSe￿ation and Sustainable Development Oisadvania8ed Children and Young Peop Supportingcommunities Other 16,2C 1,050 35,914 9.2 7.70D 54.114 22,150 Support costs.. Bank charges Audit fee Management charges Total charitable artlvltles 157 3.978 96 All grants made in the yearwere to UK or overseasequivalent registered charities. Further detail c grants greaterthan £5,￿) can be found in the Trustees'AnnualReport. Support costs include 8overnance costs of £3.97812019'. £3.￿01. & RELATED PARfi TRANSACTIONS There have been no related party transactions in the year. No Trustee orpersons connected with them feceived any remuneratKJn orreimbursementforexpenses during the year12019.. none). No trustees donated moneytothe charity12019.' noftel. Notru5tees are related to anycharity awarded gTants12019.. none). 17