The Lorana Sullivan UK Foundation
(A company Limited by Guarantee)
Trustees' Annual Report and Unaudited Accounts For the Year Ended
31 March 2023
(Company Registered No. 03821824) (Charity Registration No. 1078955 (England and Wales))
The Lorana Sullivan UK Foundation (Registered Company Number 03821824) (Registered Charity Number 1078955) Contents Year ended 31 March 2023
Contents
| Page: | |
|---|---|
| 1 | Legal and administrative information |
| 2 - 7 | Trustees' report |
| 8 | Independent examiner's report |
| 9 | Statement of financial activities |
| 10 | Balance sheet |
| 11 - 17 | Notes to the financial statements |
The Lorana Sullivan UK Foundation
Legal and administrative information
| Trustees | Harry Friedberg |
|---|---|
| Michael Gillard | |
| Maura McDermott | |
| Marilyn Ordover | |
| Richard Singer | |
| Secretary | Michael Gillard |
| Charity number | 1078955 |
| Company number | 03821824 |
| Registered office | Victoria House |
| 26 Tilehouse Street | |
| Hitchin | |
| Hertfordshire | |
| SG5 2DY | |
| Independent Examiner | |
| BDO LLP | |
| Bridgewater House | |
| Counterslip | |
| Bristol | |
| BS1 6BX | |
| Bankers | HSBC UK Bank Plc |
| 1-3 Bishopsgate | |
| City of London | |
| London | |
| EC2N 3AQ | |
| Solicitors | Ross Williams |
| Victoria House | |
| 26 Tilehouse Street | |
| Hitchin | |
| Hertfordshire | |
| SG5 2DY |
1
The Lorana Sullivan UK Foundation
Trustees' report
for the year ended 31 March 2023
The Trustees are pleased to present their report and financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 2 to the financial statements and comply with the Charity's Memorandum and Articles of Association, applicable law and the requirement of the Statement of Recommended Practice, “Accounting and Reporting by Charities” issued in January 2019.
The address of the registered office is Victoria House, 26 Tilehouse Street, Hitchin, Hertfordshire, SG5 2DY.
Melvyn Marckus (1944-2023)
A trustee of the Charity from 2014, Melvyn Marckus was an outstanding financial journalist, writing for daily and Sunday national newspapers over four decades and rising to become city editor of The Observer and then The Times. It was while at The Observer that he recruited Lorana Sullivan and supported her investigations into offshore financial fraud, particularly exposing the involvement of US organised crime. As a personal friend and admirer of Lorana Sullivan’s legacy, from its early years before becoming a trustee, Melvyn Marckus was an active supporter of the Charity’s aims of encouraging wider participation and high standards in business investigative journalism, of which Lorana Sullivan had been a pioneer at the Wall Street Journal, Sunday Times and The Observer.
Objects of the charity
The Lorana Sullivan UK Foundation is a company limited by guarantee and a registered charity governed by the Memorandum and Articles of Association. The policies adopted in furtherance of these objects are to advance any charitable purpose as the Trustees in their absolute discretion see fit.
The objects clause of the Memorandum of Association was amended on 14 September 2004 ("the revised Memorandum"), with the Charity Commission's consent, to ensure consistency with the objects of the Lorana Sullivan Foundation Inc., so that it now reads: “To advance any charitable purpose recognised in English law that the Council of Management of the Charity in their absolute discretion think fit, including but not limited to the advancement of education at the Columbia University Graduate School of Journalism (in the USA) and the relief of financial need of women studying investigative and business journalism by the provision of financial assistance including scholarships”.
The Charity also looks to support education and improvement of standards in investigative journalism, particularly in the reporting and understanding of business and finance.
Public benefit
The Trustees have given due consideration to the Charity Commission's published guidance on the operation of the public benefit requirements. The Trustees are satisfied that the Charity's objects outlined above continue to meet and satisfy the public benefit test of the Charity Commission.
Organisational structure
The late Lorana Sullivan made two Wills for her American and English estates for which the major beneficiaries were a US charity, the Lorana Sullivan Foundation Inc., and this UK charity, to be incorporated on her behalf respectively. By a Deed of Variation entered into on 9 March 2001 with Court approval, the bequest to the Lorana Sullivan Foundation Inc. was varied so that the bulk of the assets bequeathed to the American Foundation benefit the UK Foundation.
The Deed of Variation was approved by the Surrogate's Court of Chemung County in Elmira, New York, USA. The US probate was concluded in January 2015, whereupon the US assets held by the Administrator were transferred into the name of the UK Foundation and applied for its charitable purposes but continue to be held in the United States in compliance with the Decree of the Surrogate's Court. Until that transfer the US assets did not form part of the UK Foundation's assets but the Trustees of the UK Foundation had given their approval to the application by the Administrator of some of those funds for specific charitable purposes within the UK Foundation's Memorandum and Articles. A final transfer from the US estate was made on 16 January 2015.
The Trustees have general control and management of the administration of the Charity, including, but without
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The Lorana Sullivan UK Foundation
Trustees' report for the year ended 31 March 2023 (continued)
Organisational structure (cont’d)
limitation, the management, investment and application of the Charity's funds. The Trustees are appointed and reelected in accordance with the Articles of Association (“Articles”) of the Charity by the Trustees at a Board Meeting. There is no requirement in the Articles for any of the Trustees to be US or UK residents. New Trustees are appointed after selection and nomination by existing Trustees on the basis of knowledge of and/or interest or participation in journalism and promoting the Charity’s aims.
Those Trustees who are resident in the US are consulted on all decisions which affect the investment or application of the Charity's funds but are not necessarily consulted, unless required, on the day to day management of the Charity and its property, Markham's Lodge, near Hitchin, Hertfordshire in England.
Markham's Lodge, was first leased to Youth With A Mission Limited (YWAM), a charity supported by Lorana Sullivan, on 10 February 2006 for a term of 7 years and 9 days at a peppercorn rent. This lease was renewed on the same terms in January 2014, after the completion of substantial improvements to the property, for a further seven years and nine days from 11 February 2013. After the future of Markham’s Lodge was reviewed by the Trustees, it was agreed that the lease with YWAM should be renewed on the same terms for a further term of 7 years and 9 days from 20 February 2020 under a lease dated 3 August 2020. An agreed schedule of repairs was completed as a condition of the new lease. The tenant reimburses the cost of buildings insurance and is also responsible for renewal, maintenance and repair of the property from the date of the lease.
A local agent inspects the property regularly and reports to the Charity. The Charity also instructs a surveyor to carry out a survey so that maintenance and repair is addressed on a regular basis. The tenant bears the cost of the inspections/surveys. The lease is otherwise in fairly standard form, save that the tenant cannot assign or otherwise part with the lease. The property, independently valued on a regular basis, was last valued in 2019 and will be valued for the purposes of the Charity’s next report and accounts.
The Charity is permitted to delegate investment powers to a financial manager in accordance with clause 3(f) of the revised Memorandum. Decisions concerning the investment and application of the Charity's funds (amongst other duties) may be delegated to committees by the Trustees pursuant to Article 49(a) of the Articles inserted by amendment on 26 May 2005. At the same time various other amendments were made to the Articles, including the ability to hold meetings of the Trustees and committees by suitable electronic means.
It was decided by the Trustees, meeting on 21 October 2015, to form a committee of the entire Board to decide investment policy. As a result, any subsequent Board meeting is deemed to be a meeting of the investment committee. At the same Board meeting it was also agreed to form a committee of the entire Board to decide on journalism related issues. Any subsequent Board meeting is also deemed to be a meeting of that committee. The Trustees, members and directors of the company are identical.
Review of activities
The Charity continued its long standing support for the Centre for Investigative Journalism, a UK charity. The 2022 annual CIJ investigative journalism summer conference took place on a smaller scale than in previous years as a legacy of the pandemic and the Russian invasion of Ukraine. It ran over two days in June 2022 at its usual venue of Goldsmiths, University of London. The focus was on Ukraine and Russia, environmental investigations and information security, There were 43 speakers (including from Ukraine, Romania, India and several African countries) and trainers and 144 paying attendees, 90% from the UK. Financial support of £888 (£2,744 - 2022) was provided by the Charity.
During 2019 the Charity agreed to fund for an initial three-year period a bursary training scheme, at an annual cost of £10,000, in memory of Lyra McKee, the journalist killed in Londonderry in April 2019. The scheme is designed to provide training for young, would-be journalists from minority and disadvantaged communities in the UK and Ireland, including by attending the annual CIJ conference in London. The McKee family subsequently agreed to provide funding for a fourth year.
Eleven candidates - from 47 applicants - attended the 2019 CIJ conference with the help of the bursary scheme. The scheme was another casualty of Covid-19, being suspended for 2020. However, outreach events were held in
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The Lorana Sullivan UK Foundation
Trustees' report for the year ended 31 March 2023 (continued)
Review of activities (cont’d)
Belfast and Hull to increase the number of future applicants. These events were attended by more than 200 people. During 2021 eleven candidates were chosen from 70 applicants, seven completed the revised course.
In 2022 the bursary scheme operated a hybrid format between May and September 2022 with nine bi-weekly online mentoring sessions provided by two experienced journalists combined with three training sessions at the CIJ annual conference. Ten candidates, predominantly women, were selected from from 50 applicants from across the UK. Only one dropped out compared with four in 2021.The class of 2022 included Black, Asian and disabled candidates. The Charity provided additional funding of £3,000 to cover increased costs of attending the London conference.
It was agreed in 2019 to fund a series of CIJ regional conference/workshops to be held around the UK. The first such one-day event was held at Newcastle University in November 2019. The attendance of around 80 was mainly from students and academics. The Charity provided funding of £10,000. The pandemic prevented any similar event during 2020 but a second regional conference was held as part of the Imagine Belfast Festival in March 2022 with financial support of £10,000 from the Charity. Attendance was just under 50 and comprised mainly local journalists, investigators and interested members of the public. A third regional conference is planned for Glasgow in October 2023.
In 2018 the Charity agreed to fund two annual Lorana Sullivan Fellowships at ProPublica, the New York-based non-profit publisher specialising in investigative journalism, costing a total of $115,000 (£89,342) each year for an initial three-year period beginning 1 August 2018. The fellowships were awarded by ProPublica to two promising young journalists to improve reporting on business subjects. The Charity considers this funding to be in keeping with the public interest purpose of promoting and improving investigative business journalism, especially for women and minorities. The fellowship programme was reviewed and approved for a second year in May 2019.The programme was further reviewed in 2020 and revised to one annual fellowship of $75,000 (£54,211) with effect from April 2021. Five fellowships were awarded. ProPublica did not seek payment of the previously approved $75,000 cost of the 2022 fellowship. It was subsequently decided by the Charity not to continue with the ProPublica fellowship programme.
Funding of a new scholarship programme at the City University of New York’s Craig Newmark Graduate School of Journalism was postponed until 2022 due to the impact of the Covid-19 pandemic on the ability of CUNY students to complete their studies. Instead the Charity donated to CUNY’s Future Journalist Fund $1 million (£805k) appeal to assist students in need of financial support. The Charity donated $100,000 (£80,600) in April 2020. That donation was matched by other donors. CUNY confirmed that, as a result of the success of the appeal, all 98 members of the J-School class of 2020 graduated and none were forced to leave for financial reasons. A further $50,000 (£36,066) was donated in February 2021. The appeal ensured that 88 members of the J-School class of 2021 were able to graduate.
In March 2022 the Charity signed an agreement with CUNY under which it agreed to provide $300,000 (£227,736) over three years to fund the Lorana Sullivan Scholarship. Two full scholarships for students enrolled in the MA in Journalism course are to be provided each academic year from 2022-23, preference being given to advancing the participation of under-represented individuals in business and financial investigative reporting. The Trustees will review a list of candidates from which CUNY will make a final selection. The scholarship scheme will be reviewed by the Trustees in years two and three with an option of providing further funding in 2024. An initial $100,000 (£75,912) payment was made in March 2022 and a second payment of $100,000 (£82,830) in January/February 2023. The first four Sullivan scholarships have been awarded to candidates from Georgia, Canada, Bolivia and the United States.
Financial Review
During the year under review the Charity received income of £46,551 (2022: £41,775), mostly as investment income. Expenditure was £59,620 (2022: £302,664). Reserves at the year end were £2,064,213 (2022: £2,100,693).
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Trustees' report for the year ended 31 March 2023 (continued)
The Lorana Sullivan UK Foundation
Financial Review (cont’d)
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence and has sufficient funds to manage itself for the foreseeable future. The principal item of expenditure is grants for educational scholarships and other educational events. Each project is subject to application and, on each occasion, the Trustees can decide whether to make the grant and its amount, taking account of their assessment of the importance of the project and the financial situation of the Charity. Even if the Charity received no further Income (which the Trustees regard as most unlikely), the Charity can sustain a comparable level of activity for the next two years at least. For this reason, the Trustees continue to adopt the going concern basis in preparing the financial statements.
Achievements and Performance
The Charity inherited the scholarship programme at Columbia University’s Graduate School of Journalism in New York, begun in 2001 by the Sullivan estate in accordance with Lorana Sullivan’s wishes as a former alumnus of the school. A maximum of two full scholarships were awarded every year, more recently for the MA business and finance course. The scholarship programme ended with the awarding of a final three scholarships to candidates from the United States for the 2018-2019 academic year.
By July 2019 $2,210,000 (£1,769,656) had been donated since 2001 by the Sullivan estate and the Charity under the original Sullivan scholarship programme to fund 31 full scholarships at Columbia University. These were awarded to journalists from the UK, Ireland, Canada, China, Denmark, Israel, Norway and the United States. The scholarship provided an opportunity, which otherwise would have been impossible, for promising journalists, predominantly women, to study at the premier journalism school, thereby subsequently enhancing public knowledge and understanding of business and finance.
A 2013 agreement with Columbia University, regarding the Kluge Centennial Scholars Match project, provided for an endowed scholarship fund, the Lorana Sullivan Scholarship for Investigative Journalism, to be established from the 2:1 matching of the Charity’s agreed donations of $1,232,250 (£965,655) by 2019 under the original Sullivan scholarship scheme. The Charity received confirmation that $2,464,500 (£1,969,678) in matching funds had been received by 30 June 2020 with which to provide the new Sullivan scholarships, beginning in the 2018-19 academic year. The full amount due to be donated by the Charity to Columbia by 30 June 2019 under the original 2001 Sullivan scholarship programme was accounted for in the 2017 accounts.
As a result of the Kluge Centennial Scholars Match project, these donations also enabled the creation, with a more than $2 million (£1,500,296) endowment, of the new Lorana Sullivan Scholarship for Investigative Journalism at Columbia University beginning in 2018-19. So far 15 scholarships have been awarded, mostly to women journalists, from the UK, North Macedonia, Canada, Egypt, the Philippines and the United States.
In association with the Sullivan estate, the Charity agreed to fund, for an initial five years, the Lorana Sullivan annual memorial lecture series, on topical subjects relevant to both business and investigative journalism, to be held at Columbia University. The inaugural lecture was held in October 2014. Speakers included Stephen Coll, Dean of the Columbia Graduate School of Journalism, Bethany McLean of Vanity Fair, Diana Henriques of the New York Times and Tim O’Brien, author of Trump Nation. Funding for the lecture series has ended.
The Charity and the Lorana Sullivan estate agreed in 2007 to donate £50,000 of core funding over three years to a new UK charity, the Centre for Investigative Journalism, which is involved in educational projects in the UK and has supported journalism training and improvement projects in the UK, other European countries, South Africa and Brazil. Further core funding of £18,799 and £18,714 was donated in 2011 and 2013.
Support for the CIJ summer school/conference since 2003 has made possible affordable and extensive training for more than 2000 journalists, students, researchers, academics, trade unions and non-governmental organisations, primarily from the UK but also from 35 countries - ranging from Azerbaijan to Yemen. Bursaries funded by the Charity enabled attendance by journalists from the Roma community in the UK and Central Europe.
Following on from its past support for CIJ and Tax Justice Network workshops on understanding company accounts and accessing international company data, the Charity provided £50,000 to support Finance Uncovered, a not-forprofit organisation which aims to enhance public understanding and exposure of international corporate
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The Lorana Sullivan UK Foundation
Trustees' report for the year ended 31 March 2023 (continued)
Achievements and Performance (cont’d)
tax avoidance, offshore money flows and corruption by local politicians and government officials. This funding covered the cost of bursaries for some 20 journalists from eastern and central Europe, the Middle East, Africa, Asia and Latin America to attend two “Follow the Money” workshops in London during 2017.
Public understanding of company accounts has been further advanced through funding by the Charity for The Investigative Journalist’s Guide to Company Accounts. Written by forensic accountant Raj Bairoliya, some 1000 copies of this unique handbook have been distributed. First published in 2014, a second, updated edition was published in 2018.
Future plans
The first four scholarships at City University of New York’s Craig Newmark Graduate School of Journalism have been awarded. The programme will be reviewed as to progress in 2023 and 2024 before a decision on further funding beyond the initial three years. Additional support for the Centre for Investigative Journalism is reviewed by the Charity on a project by project basis as well as support for the annual conference. The 2023 CIJ programme took place at Goldsmiths, University of London in June 2023 with support from the Charity. Increased funding for the Lyra McKee bursary programme was provided during 2023. Further funding for the McKee bursary scheme from 2024 to 2026 is to be reviewed by the Board.
When possible, the Charity plans to continue supporting the provision of courses and seminars to improve general understanding of company accounts and to consider supporting the publication of further CIJ handbooks.
An online digital archive of more than 200 newspaper articles by Lorana Sullivan, published between 1968 and 1994, is to be made available to assist in the understanding, researching and teaching of business history.
Investment powers
The Trustees, following the transfer of US assets from the Sullivan estate and the subsequent closure of the Lorana Sullivan Foundation Inc., make decisions on investments which they are empowered to do by the Articles of the Charity and under the power delegated by the Trustees to the investment committee of the whole Board, in accordance with their powers in the Articles and the Board decision of 21 October 2015. The Charity’s US assets are held in a portfolio of investments managed by Advisors Capital Management of Stamford, Connecticut, USA.
In January 2008 $700,000 (£355,353) was transferred to the Charity as a charitable distribution from the US estate. In October 2008 $410,000 (£240,230) was transferred to the Charity as a second charitable distribution from the US estate. This was managed on the same basis as the balance of the US funds. The remaining US assets have only formed part of the Charity’s assets since the transfer from the Sullivan estate. On 16 January 2015 the US Investments held in the name of the Lorana Sullivan Foundation Inc. were transferred to the Charity following completion of probate for the US estate of Lorana Sullivan. The value transferred was £1,527,900 ($2,266,901).
Reserves policy
The Board has agreed a policy to retain sufficient funds in reserves to meet immediate expenses to provide flexibility and resilience to cover any short-term funding crisis or a medium-term recession.
Following the transfer of the assets of the Sullivan estate in the United States, the Charity has adequate assets to serve its charitable mission for a reasonable number of years, given the amount of the original fund. The US portfolio ensures that funds are readily available to meet the Charity’s expected expenditure in the UK or the US for the next 12 months which is approximately budgeted at £110,000 for 2023.
At the end of the 2023 financial year, £2,064,213 (2022: £2,100,693) was held as unrestricted funds.
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The Lorana Sullivan UK Foundation Marityn OrOJ¥
The Lorana Sullivan UK Foundation
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE LORANA SULLIVAN UK FOUNDATION FOR THE YEAR ENDED 31 MARCH 2023
I report to the charity’s Trustees on the accounts of the company for the year ended 31 March 2023, which are set out on pages 9 to 17.
This report is made solely to the charity's trustees, as a body, in accordance with Regulation 31 of the Charities (Accounts and Reports) Regulations 2008. 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 an independent examiner's 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's trustees as a body, for my work, for this report, or for the statement I have made.
Responsibilities and basis for report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 accounts to be reached.
Sarah Anderson FCCA BDO LLP Bridgewater House Counterslip Bristol BS1 6BX Date ����������������
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The Lorana Sullivan UK Foundation
Statement of financial activities (Incorporating the income and expenditure account) for the year ended 31 March 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| Note | 2023 | 2022 | |
| £ | £ | ||
| Income from: | |||
| Investment income | 4 | 45,724 | 40,953 |
| Other income | 5 | 827 | 822 |
| __ | __ | ||
| Total | 46,551 | 41,775 | |
| __ | __ | ||
| Expenditure on: | |||
| Raising funds | 15,741 | 17,046 | |
| Charitable activities | 43,879 | 285,618 | |
| __ | __ | ||
| Total | 6 | 59,620 | 302,664 |
| Net (Loss)/Gain on investments | 10 | (111,961) | 48,192 |
| __ | __ | ||
| Net expenditure | (125,030) | (212,697) | |
| Other recognised gains | |||
| Foreign exchange gain | 88,550 | 73,414 | |
| __ | __ | ||
| Net movement in funds | (36,480) | (139,283) | |
| Fund balances at 1 April 2022 | 2,100,693 | 2,239,976 | |
| __ | __ | ||
| Fund balances at 31 March 2023 | 2,064,213 __ |
2,100,693 __ |
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
All amounts relate to continued activities.
The notes on pages 11 to 16 form part of these accounts.
9
T L¢xana Sullivan UK Foundalion at 31 M•rth 2023 2023 Flx•d M8•ts 10 1.401.981 2,251981 12 (18 lQ84213 2.175.375 12 (74.681) ICfA.MJ 2.1(Xl,lJ93 14 1214313 1250.933 1064213 2.1(K*.3 10
Notes to the accounts for the year ended 31 March 2023
The Lorana Sullivan UK Foundation
1 General information
The Lorana Sullivan UK Foundation is a private limited company incorporated in England and Wales under the Companies Act 2006 and Charities Act 2011. It is a charitable company limited by guarantee. The address of the registered office is Victoria House, 26 Tilehouse Street, Hitchin, Hertfordshire, SG5 2DY.
The functional and presentational currency of the charitable company is pound sterling (£) and the figures in the financial statements are founded to the nearest £1.
2 Accounting policies
The principal accounting policies adopted, judgements and sources of estimation or uncertainty in the preparation of the financial statements are as follows:
(a) Basis of preparation
The financial statements have been prepared on a going concern basis under the historical cost convention. The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: “Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland” (The Charities SORP 2nd Edition), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.
(b) Going concern
The Trustees confirm that at the time of approving the financial statements, there are no material uncertainties regarding the Charity’s ability to continue in operational existence for the foreseeable future. In arriving at this conclusion, the Trustees have taken account of current and anticipated financial performance in the current economic conditions and its reserves position.
The Charity has sufficient funds to manage itself for the foreseeable future. The principal item of expenditure is grants for the conduct of scholarships. Each project is subject to a formal application and, on each occasion, the Trustees decide whether to make the grant and its amount, taking account of the financial situation of the Charity. The Trustees consider that the Charity can sustain a comparable level of activity for the next two years at least. For this reason, the Trustees continue to adopt the going concern basis in preparing the financial statements.
In October 2023 the Charity had approximately £936 of cash available. The trustees confirm that the charity is able to meet the liabilities as they fall due for at least until the end of 2024 from its other assets.
(c) Income
All incoming resources are included in the SOFA when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
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The Lorana Sullivan UK Foundation
Notes to the accounts for the year ended 31 March 2023 (continued)
2 Accounting policies (continued)
(d) Expenditure
All expenditure is accounted for on an accruals basis and has been classified under heading that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources.
Governance costs are those incurred in connection with Governance of the Charity and compliance with constitutional and statutory requirements.
(e) Reserves
Reserves are unrestricted funds generated for the objects of the charity without further specified purpose and are available as general funds.
(f) Investment property
Investment property is carried at fair value which is determined annually by the trustees based on a report from external valuers and derived from current market indices and trends for commercial office property, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities.
(g) Investments
Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted bid market value at the close of business on the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.
(h) Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
(i) Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using effective interest method.
(j) Financial instruments
The charity only has financial assets and 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.
Listed investments are held at fair value through profit and loss and revalued each year at the reporting date.
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The Lorana Sullivan UK Foundation
Notes to the accounts for the year ended 31 March 2023 (continued)
2 Accounting policies (continued)
- (k) Foreign currency translation
Functional and presentation currency
The charity’s functional and presentational currency is GBP.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
(l) Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
- (m) Operating leases, the charity as lessor
Operating leases with the charitable company as lessor have been agreed at a peppercorn rent and no income is recognised in respect of these.
3 Judgements in applying accounting policies and key sources of estimation uncertainty
In the application of the trust's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Investment properties are valued annually using methodology based on figures available publicly relating to the changes in market value of property but there is an inevitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself.
4 Investment income
| Dividends receivable Interest receivable |
2023 £ 25,228 20,496 __ 45,724 |
2022 £ 24,335 16,618 __ 40,953 |
|---|---|---|
All investment income in the current and prior year was unrestricted.
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The Lorana Sullivan UK Foundation
Notes to the accounts for the year ended 31 March 2023 (continued)
| 5 Other income Reimbursement of insurance and other costs Interest All other income in the current and prior year was unrestricted. 6 Total expenditure Raising funds (see below) Charitable expenditure (see below) Costs relating to raising funds comprise: Insurance Investment management fees Costs relating to charitable expenditure comprise: Donations: Centre for Investigative Journalism - Payments for projects Craig Newmark Grad School Other costs: Exchange rate differences Archive costs Legal fees Total direct costs Support costs: Independent examiner fees Accountancy fees Tax withheld Bank charges Total charitable expenditure |
2023 £ 814 13 __ 827 _ 2023 £ 15,741 43,879 __ 59,620 _ 1,777 13,964 __ 15,741 __ 2023 £ 23,889 - 13,120 366 444 __ 37,819 3,250 2,301 388 121 __ 43,879 |
2022 £ 812 10 _ 822 _ 2022 £ 17,046 285,618 __ 302,664 |
|
|---|---|---|---|
| __ 1,694 15,352 __ 17,046 |
|||
| __ 2022 £ 12,745 263,597 3,929 318 629 __ 281,218 2,122 1,890 294 94 __ 285,618 |
All expenditure in the current and prior year was unrestricted.
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The Lorana Sullivan UK Foundation
Notes to the accounts for the year ended 31 March 2023 (continued)
7 Trustees
One of the Trustees is owed reimbursement for expenses of £814 (2022 - £Nil). During the year Mr M Gillard, a trustee of the charity paid for expenses totalling £814 (2022: £nil).
8 Employees
The charity does not employ any staff. During the year there were 6 Trustees (2022 – 6). None of the Trustees received any remuneration for their services (2022 - £Nil)
9 Investment property
£
| Valuation: At 1 April 2022 at fair value Impairment charge for the year At 31 March 2023 |
850,000 - _ 850,000 _ |
|---|---|
Investment property is included in the statement of financial position at open market value, as permitted by regulations made under the Companies Act 2006 and in accordance with FRS 102. Revaluations are made with sufficient regularity to ensure that the carrying amount is not significantly different from its fair value.
The most recent valuation was carried out as at 31 March 2020 by John Fullerlove of F&E Surveying Solutions, Chartered Surveyors. The property was valued on the basis that there is a sitting tenant. The tenant is responsible for maintenance and repairs.
A seven year lease was signed in August 2020 and runs to February 2027 for peppercorn rent.
The Trustees do not consider there to be a material difference as at 31 March 2023 between the carrying amount of the property and its fair value.
The historical cost of the investment property is £350,000 (2022 - £350,000).
10 Investments
| Equities - US quoted Cash deposits |
Value at Foreign Value at 31 March exchange Purchases Disposals Revaluation 31 March 2022 movements at cost at Market value (losses)/gain s on equities 2023 £ £ £ £ £ £ 1,384,222 87,418 612,556 (737,690) (111,961) 1,234,545 17,758 1,132 783,419 (736,664) - 65,645 __ _ _ _ _ __ 1,401,980 88,550 1,395,975 (1,474,354) (111,961) 1,300,190 |
|---|---|
Fidelity Limited, a company registered in the United States of America, provides brokerage and custody services.
The historical cost of the investments (including cash deposits) at 31 March 2023 was £1,080,670 (2022 - £1,124,169).
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The Lorana Sullivan UK Foundation
Notes to the accounts for the year ended 31 March 2023 (continued)
11 Financial Instruments
The carrying amount of the charitable company’s financial assets measured at fair value through statement of financial activities are summarised below:
| Listed investments Creditors Amounts falling due within one year Other creditors and accruals Grants payable Amounts due to related parties Amounts falling due after more than one year Grants payable Analysis of grant commitments Amounts committed to the Craig Newmark Graduate School of Journalism to establish the Lorana Sullivan Foundation Scholarship B/F 1 April 2022 Committed during year Foreign exchange adjustment on balance Paid during year C/F 31 March 2023 |
2023 £ 1,234,545 _ 1,234,545 _ 2023 £ 5,500 80,966 814 _ 87,280 _ - _ 2023 £ 149,362 - 12,570 (80,966) _ 80,966 |
2022 £ 1,384,222 _ 1,384,222 _ 2022 £ 3,918 74,681 - _ 78,599 _ 74,681 _ 2022 £ - 225,518 - (76,156) _ 149,362 |
|---|---|---|
12 Creditors
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The Lorana Sullivan UK Foundation
Notes to the accounts for the year ended 31 March 2023 (continued)
13 Designated funds
The Trustees have designated a fund to represent the carrying value of investment property. This comprises two elements; the original deemed cost (the probate value of the property when originally gifted) and the increase or decrease in value as a result of revaluation.
14 Funds
| Balance at 1 April 2022 £ Property reserve 850,000 General reserve 1,250,693 _ 2,100,693 _ Balance at 1 April 2021 £ Property reserve 850,000 General reserve 1,389,976 __ 2,239,976 |
Income Expenditure £ £ - - 135,101 (171,581) _ _ 135,101 (171,581) _ _ Income Expenditure £ £ - - 183,138 (322,421) _ _ 183,138 (322,421) |
Transfer Balance at between 31 March funds 2023 £ £ - 850,000 - 1,214,213 _ _ - 2,064,213 _ _ Transfer Balance at between 31 March funds 2022 £ £ - 850,000 - 1,250,693 _ _ - 2,100,693 |
|---|---|---|
15 Related party transactions
During the year Mr M Gillard, a trustee of the charity paid for expenses totaling £814 (2022: £nil), on behalf of the charity. At the year end £814 (2022: £nil) was owed by the charity to Mr M Gillard.
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