2022-05-31-accounts

Charity Registration No. 1078327

THE CIECHANOWIECKI FOUNDATION

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2022

THE CIECHANOWIECKI FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Peter Scott
	Count M Badeni
	Mrs T Mrozek-Folkierska
	Countess K Raczynska
	Count A Zamoyski
	Professor A Rottermund
Charity number	1078327
Registered office	Number 22
	Mount Ephraim
	Tunbridge Wells
	Kent
	TN4 8AS
Independent examiner	Sayers Butterworth LLP
	Chartered Accountants & Statutory Auditor
	3rd Floor, 12 Gough Square
	London
	EC4A 3DW
Bankers	Coutts & Co
	440 Strand
	London
	WC2R 0QS
Investment Managers	Investec
	30 Gresham Street
	London
	EC2V 7QN
Solicitors	Cripps
	Number 22
	Mount Ephraim
	Tunbridge Wells
	Kent
	TN4 8AS

THE CIECHANOWIECKI FOUNDATION

CONTENTS

	Page
Trustees' report	1 - 3
Statement of trustees' responsibilities	4
Independent examiner's report	5
Statement of financial activities	6
Balance sheet	7
Notes to the financial statements	8 - 14

THE CIECHANOWIECKI FOUNDATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MAY 2022

The trustees present their report and financial statements for the year ended 31 May 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Objectives and activities

When deciding on our activities for the year, the Trustees have considered the Commission's guidance on public benefit and therefore state that the charity's objects and activities are:-

a) To enrich the collection of works of art and memorabilia at the Museum of the Royal Castle in Warsaw ("the Museum").

b) To conserve and preserve works of art at the Museum.

c) To provide bursaries and other awards to such academic staff as shall be chosen by the Trustees thereof or other officers for the time being who shall be in charge of the Museum.

d) To facilitate the publication of books and academic works.

e) To fund educational programmes particularly for the handicapped.

The main achievements of the charity during the year is that the trustees have made further donations to the Warsaw Foundation to provide education and support for the staff at the Royal Castle of Warsaw and to enable it to make acquisitions of items from the diaspora of the contents of the Royal Castle during the Second World War.

The trustees confirm that they have referred to the guidance contained in the Charity's Commission's general guidance on public benefit when reviewing the Charity's objective's and activities and that they have complied with section 17 of the Charities Act 2011.

Grant making policy

In applying the yearly income of the charity, the trustees have a policy to continue promoting aesthetic education in Poland, and the acquisition, conservation and preservation of works of art and objects that are connected particularly to the Royal Castle of Warsaw. The governing document should be referred to when making grants. Grants are not made to individuals.

Achievements, financial review and performance

The charity is funded by way of receiving donations and income from investments.

Legacies amounting to £Nil (2021: £3,526) were received during the year. Investment income of £27,064 (2021: £25,633) were received during the year. Governance costs amounted to £50,892 (2021: £38,021). Grants amounting to £121,417 (2021: £27,060) were made during the year. Total funds held by the charity at the year end were £1,886,907 (2021: £2,127,640).

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THE CIECHANOWIECKI FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Reserves policy and risk

The Trustees will continue to utilise the assets and income of the Foundation in accordance with the objects of the charity. The Trustees consider that the level of reserves held at 31 May 2022 of £1,886,907 is sufficient for these purposes.

Major risks statement

The major risks to which the charity can be exposed to will be reviewed, and appropriate control procedures will be devised for minimising the potential risk exposure. These procedures will be monitored on a regular basis by the Trustees and appropriate action taken where necessary.

The trustees have identified the key risks which affect the Charity and considered steps to mitigate those risks and effective internal controls have been implemented. The major risk is that grants will not be used for the purpose for which they are given and this is managed by requiring a timely report from each recipient (mainly the Warsaw Foundation). When making decisions, the trustees assess the risks to which the charity might be exposed.

The main financial uncertainty is the long-term investment performance of the charity's funds and the impact of a sustained underperformance. This is managed by the trustees retaining expert investment managers and undertaking a regular review of the investment policies and ensuring a suitably diverse asset allocation to adapt to anticipated market performance to mitigate this risk. The rate of spend is reviewed in light of the longer-term return on assets and the charity's commitments.

The Trustees' policy is to maintain adequate reserves to enable the assets and income of the Foundation to be utilised in accordance with the objects of the charity.

Investment policy

Under the terms of the trust deed, the trustees have wide powers of investment. The trustees have delegated the management of the investment portfolio to the investment advisors appointed. The investments are held by the investment advisor's nominees. The trustee's overall investment objective as stated in the investment management agreement is to maximise capital growth. The charity does not operate an ethical investment policy. The performance of the trust investment portfolio is considered at regular intervals with the investment manager and is benchmarked against various market indices to ensure that the funds held are performing well. This manager, which is regulated by the Financial Conduct Authority in the United Kingdom, manages the investments within the restrictions set out in the investment management agreement. Any issues are addressed with the trustees as and when they arise.

Plans for the future

The trustees will continue to consider requests for donations from suitable charities, having regard to the primary objectives of the trust. All donation requests are considered by the trustees. During the coming financial year, the trustees plan to make donations in furtherance of aesthetic education in Poland and in particular the Royal Castle of Warsaw. The trustees will continue their policy of promoting aesthetic education in Poland and the acquisition, conservation and preservation of works art and objects d'art connected particularly with the Royal Castle of Warsaw.

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GIECHANOWIECKI FOUNDATION RUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY2022 Structure. goveman¢e and management The Ciechanowiecki Foundation Is an unirKorporated wslereil charity (No. 1078327), and 15 govemed by trust deed dated 2 Junè 1999. The organisabon's affairs are conduthd by the TnJstee3 who meet throLW3houi the year and who have the power to appoint new Trustees al their discretitin. The chaTity does not have a fomial pmgrammè for thtr indu¢tior) and tralnin9 of new Trustees. The Trustees are appointed by inwtstion from the exisiing board ol Trustees. The Ciechanowiecki Foundatron is UK based with ils headquartets in Kènt. A bo8rd of Trustee5 administers the Trust. The day lo day management of the chanty has been delegated to Peter Scott who is also a Trustee. None of the Tw$18es has any benefiual intèrest in the tharity. Thè Tntstse¥ The Trustees who served the chathy during the yearwere as folkm: Peter Scott Count M Badeni Mrs T Mrozek-Folklerska Countess K Raczynska CountAZamoyski ProfessorA Rottermund Peter Scott can be contaded on the following addro$$.' Number 22. Mount Ephwm, TunbFidge Wells. Kent TN4 8AS. The trust ' report was appro*d by Ihe Board ofTntslaes. Peter Scott Trustee zz z£)￿5

THE CIECHANOWIECKI FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MAY 2022

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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THE CIECHANOWIECKI FOUNDATION

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE CIECHANOWIECKI FOUNDATION

I report to the trustees on my examination of the financial statements of The Ciechanowiecki Foundation (the charity) for the year ended 31 May 2022 which comprise the Statement of Financial Activities, the Balance Sheet and related notes.

This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

• 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

• 2 the financial statements do not accord with those records; or

• 3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Sayers Butterworth LLP Chartered Accountants 3rd Floor, 12 Gough Square London EC4A 3DW

Dated: .........................22/03/2023

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THE CIECHANOWIECKI FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MAY 2022

Unrestricted funds Notes £ Income from: Donations and legacies 4 - Investments 5 27,064 Total income 27,064 Expenditure on: Charitable activities 7 172,309 Net (loss)/gain on investments 10 (95,522) Net (outgoing)/incoming resources (240,767) Other recognised gains and losses Foreign exchange gain 11 34 Net movement in funds (240,733) Fund balances at 1 June 2021 2,127,640 Fund balances at 31 May 2022 1,886,907	Total 2022 £ - 27,064 27,064 172,309 (95,522) (240,767) 34 (240,733) 2,127,640 1,886,907	Total 2021 £ 3,526 25,633
		29,159
		65,081
		129,260
		93,338 -
		93,338 2,034,302
		2,127,640

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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CIECHANOWIECKI FOUNDATION ALANCE SHEET ASAT 31 MAY2022 2022 2021 Fixed ass•ts Investrnenls Cuffènt assèts Debtors Cash at bank and in hand 1.755,058 1.196.714 13 2.453 93S,623 139,649 139.649 938.076 Creditorn: amounts falling due within Ctne year 14 (T.8W) 17,150) Net current assets 131,849 930.926 Totsl •s$èts1os$ eurrènt liabirrties 1,886.907 2,127.640 Income funds Unrestricted fiJnd3- gener81 1,886. 2,127,640 1.886,907 2.127.640 The financial statements were approved by the Tiustees on.............. Peter Scolt Trustse

THE CIECHANOWIECKI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

1.1 Accounting convention

The financial statements have been prepared to give a 'true' and 'fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a "true and fair" view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Ciechanowiecki Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds Unrestricted funds

Core income and such other income for which there are no restrictions on the way it can be spent are termed 'Unrestricted'. Such unspent income at the balance sheet date is termed 'Unrestricted funds'.

1.4 Incoming resources

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Debtors:

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Legacies

Legacies are accounted for on a receivable basis. Residual legacies are recognised only when The Ciechanowiecki Foundation's interest can be measured, which is normally on a grant of probate. Where there are uncertainties surrounding the measurement of the Ciechanowiecki Foundation entitlement to an estate no income is recognised.

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THE CIECHANOWIECKI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

Cash at bank and in hand:

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.5 Resources expended

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer off economic benefit will be required in the settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debtor the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable or similar charges.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost the effective interest method.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.7 Foreign exchange

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transaction. At each period end foreign currency monetary items are translated using the closing rate. Foreign exchange gains and losses are recognised in the statement of financial activities.

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THE CIECHANOWIECKI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

1.8 Income and Expenditure

All income arising during the year is dealt with through the statement of financial activities.

Donated funds are included in income at the value of the financial cost borne by the donor where such a cost is quantifiable and measurable.

Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Expenditure connected with the running of the charity is charged through the statement of financial activities and is included as governance costs.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Statement of funds

Statement of funds	Unrestricted
	funds
Brought forward	2,127,640
Incoming resources	27,064
Losses on investments	(95,522)
Gain on foreign exchange	34
	2,059,216
Total income in the reporting period
Total expenditure from unrestricted funds	(172,309)
Carried forward	1,886,907

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THE CIECHANOWIECKI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

4	Donations and legacies
		Unrestricted	Unrestricted
		funds	funds
		2022	2021
		£	£
	Legacies receivable	-	3,526
5	Investment income
		**Unrestricted **	Unrestricted
		funds	funds
		2022	2021
		£	£
	Income from listed investments	27,042	25,497
	Bank interest receivable	22	136
		27,064	25,633
6	Fixed asset investments	Listed securities
	Market value
	As at 1 June 2021		1,196,714
	Acquisition at cost		2,222,852
	Disposal proceeds		(1,568,987)
	Unrealised gains on revaluation in the year		(449,242)
	Realised loss on disposal		353,720
	At 31 May 2022		1,755,058

The listed investments held by the charity represent securities held in the UK and foreign listed entities.

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THE CIECHANOWIECKI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

7 Charitable activities

		Unrestricted	Unrestricted	Unrestricted
			funds	funds
	Governance	Charitable	Total	Total
	Costs	Expenditure	2022	2021
	£	£	£	£
Independent examination fee	7,520	-	7,520	9,220
Investment fees	26,159	-	26,159	12,555
Legal fees	17,213	-	17,213	16,002
Bankruptcy searches	-	-	-	244
	50,892	-	50,892	38,021
Grant funding of activities (see note 8)	-	121,417	121,417	27,060
	50,892	121,417	172,309	65,081

8 Grants payable

	**Unrestricted **	Unrestricted
	funds	funds
	2022	2021
	£	£
Grants to institutions:
Warsaw Foundation	121,417	27,060
	121,417	27,060

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. The Trustees received no reimbursed expenses during the year.

There are no direct employees of The Ciechanowiecki Foundation.

10 Net gains/(losses) on investments

	Unrestricted	Unrestricted
	funds	funds
	2022	2021
	£	£
Revaluation of investments	(449,242)	127,746
Gain on sale of investments	353,720	1,514
	(95,522)	129,260

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THE CIECHANOWIECKI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

11 Other gains or losses Foreign exchange gain 12 Financial instruments Financial assets measured and fair value through income and expenditure Financial assets measured at amortised cost	2022 £ (34) 2022 £ 1,755,058 139,649 1,894,707	2021 £ -
		2021 £ 1,196,714 935,623
		2,132,337

Financial assets measured at fair value through income and expenditure comprise investments. Financial assets measured at amortised cost comprise cash at bank.

13 Debtors

13 Debtors
Amounts falling due within one year: Accrued interest 14 Creditors: amounts falling due within one year Accruals - Sayers Butterworth LLP	2022 £ - 2022 £ 7,800	2021 £ 2,453
		2021 £ 7,150

15 Related party transactions

One of the trustees, Peter Scott, was a member of Cripps Pemberton Greenish until May 2016 when he retired. He has acted as consultant for Cripps Pemberton Greenish since this date.

No trustee received remuneration or any reimbursement of expenses during the year. Cripps Pemberton Greenish charged fees of £17,213 (2021: £16,002) in respect of the professional fees rendered during the year. All invoices issued during the year had been settled by 31 May 2022. The trustees are authorised by the Trust Deed to pay professional charges to trustees engaged in a professional capacity on the instructions of the other trustees. Prof Rottermund is the President of the Warsaw Foundation and a Trustee. The charity made a donation to the Warsaw Foundation totalling £121,417 (2021: £27,060).

16 Controlling Party

In the opinion of the trustees, there is no one ultimate controlling party.

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THE CIECHANOWIECKI FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

17	Analysis of changes in net funds
		At 1 June 2021	Cash flows	Changes in	At 31 May 2022
				Foreign
				exchange rate
				movements
		£	£	£	£
	Cash at bank and in hand	935,623	(795,940)	(34)	139,649

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