The Lorana Sullivan UK Foundation (A company Limited by Guarantee) Trustees. Annual Report and Unaudited Accounts For the Year Ended 31 March 2024 (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 2024 Contents Page: Legal and administrative infom)ation Trustees, report Independent examiner's report Statement of financial activities 10 Balance sheet 11- 18 Notes to the financial statements
The Lorana Sullivan UK Foundation Legal and administrative infonnation 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 Level 12 Thames Tower Station Road Reading RG1 1LX Bankers HSBC UK Bank PIC 1-3 Bishopsgate City of London London EC2N 3AQ Solicitors Ross Williams Victoria House 26 Tilehouse Street Hitchin Hertfordshire SG5 2DY
The Lorana Sullivan UK Foundation Trustees. report for the year ended 31 March 2024 The Trustees are pleased to present their report and financial statements for the year ended 31 March 2024. 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 Practi, "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. 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 Ihat 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 finan. 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 Ihe Lorana Sullivan Foundation Inc. was varied so that the bulk of the assets bequeathed to the American Foundalion 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 Uniled 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 limitation, the management, investment and application of the Charity's funds. The Trustees are appointed and re- elected 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 andlor interest or participation in joumalism and promoting the Charity's aims.
The Lorana Sullivan UK Foundation Trustees. report for the year ended 31 March 2024 (continued) Organisational structure (convdj 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 consutted. 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 propety 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 inspectionslsurveys. 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 Conrning 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 fomi 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 current activities and achievements The Charity continued its long standing support of the Centre for Investigative Journalism, a UK charity. The 2023 annual CIJ investigative journalism summer conference ran over days in June 2023 at its usual venue of Goldsmiths, University of London. The focus was on climate reporting. environmental investigations and source protection, There were 53 speakers and trainers from 14 countries (including from Australia. Nepal Ukraine,and several African countries) and 133 paying attendees. just under 800/0 from the UK. Financial support of £6,406 (£888 - 2023) 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 Londondery 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 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.
The Lorana Sullivan UK Foundation Trustees. report for the year ended 31 March 2024 (continued) Review of current activities and achievements (cont'd) In 2022 the bursary scheme operated a hybrid fomiat between May and September 2022 with nine bi-weekly online mentoring sessions provided by two experienced joumalists combined with three training sessions atthe CIJ annual conference. Ten candidates, predominantly women, were selected out of 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. In 2023 the bursary scheme again operated on the hybrid format plus attendance at the CIJ annual conference. Ten bursaries were awarded from seventy applicants with eight candidates completing the course. The bursaries were awarded to candidates from Northern Ireland. the Republic of Ireland, Scotland and across England. They included two from the GypsylRoma community. The Charity provided funding of £10.000 while further support was provided by the McKee family. It was agreed in 2019 to fund a series of CIJ regional conferencelworkshops 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 Conferen 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 was held al Kelvin Hall, Glasgow in October 2023 in partnership with the National Library of Scotland. Admission was free but unfortunately the expected attendance was halved to around 50 as a result of storm Babel. The Charity provided funding of £10,000 for the event. 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 offinancial support. The Charity donated $100,000 (£80,600) in April 2020. That donation was matched by other donors. CUNY confimied 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 wrth 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 have been provided in each academic year from 2022-23. Preferen being given to advancing the participation of under-represented individuals in business and financial investigative reporting. The Trustees consider a list of candidates from which CUNY makes a final selection. The scholarship scheme was reviewed by the Trustees during the year and it was decided to consider further funding in 2024. An initial $100,000 (£75,912) paymentwas made in March 2022 and a second payment of $100,000 (£82,830) in JanuarylFebruary 2023. A third payment of $100,000 (£79,208) was made in April 2024. Six Sullivan scholarships have been awarded to candidates from Georgia, Canada. Bolivia. the United States. Peru and the Philippines. Financial Review During the year under review the Charity reiVed income of £47.311 (2023.. £46.551). mostly as investment income. Expenditure was £89,668 (2023: £59,620). Reserves at the year end were £2,161,493. £850,000 of this being designated (2023: £2,064,213, £850.000 designated).
The Lorana Sullivan UK Foundation Trustees. report for the year ended 31 March 2024 (continued) Going Concern 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 Charity s US portfolio is designed to provide funding for its activities in the UK and US with investments sold as and when required to meet either grants or operational costs. 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 decide the 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 adopl the going concern basis in preparing the financial statements. Achievements and Perforniance 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 Sin 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 joumalism school. thereby subsequently enhancing public knowledge and understanding of business and finance. A 2013 agreement with Columbia Universty, 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 17 scholarships have been awarded, mostly to women journalists, from the UK, North Macedonia, Canada. Egypt. the Philippines, the United States and Venezuela. 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. 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 in August 2018. The fellowships were awarded by ProPublica to two promising young journalists to improve reporting on business subjects. The Charity considered this funding to be in keeping with the public interest purpose of promoting and improving investigative businessjournalism, 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.
The Lorana Sullivan UK Foundation Trustees. report for the year ended 31 March 2024 (continued) Achievements and Perfonnance (cont'd) The Charity and the Lorana Sullivan eslate 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 schoollconference since 2003 has made possible affordable and extensive training for 4500 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 Justi NeorkworkShOpS on understanding company accounts and accessing international company data, the Charity provided £50,000 to support Finance Uncovered, a not-for- profit organisation which aims to enhance public understanding and exposure of international corporate 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 adVand through funding by the Charity for The Investigative Journalist's Guide to Company Accounts. Written by forensic accountant Raj Bairoliya, some 2000 copies of this unique handbook have been distributed. First published in 2014. a second. updated edition was published in 2018. Future plans Following a review during the year it was decided to extend funding for the Sullivan scholarships at City University of New York's Craig Newmark Graduate School of Journalism for a further three years from 2025 at a total cost of $300,000 {£224.308). It was also decided following a review to alter the basis of support for the Centre for Investigative Journalism annual conference from funding any costs exceeding event revenue to a grant of £10,000 a year for three years from 2025 with the level of funding to be reviewed annually. The 2024 CIJ conference programme took place at Goldsmiths, University of London in July 2024 with support from the Charity. Funding for the Lyra McKee bursary programme has been extended and increased to a total of £40,000 covering the period from 2024 to 2026. A progress report on the bursary scheme is to be prepared by CIJ for the Charity in early 2025. Funding was agreed for a second CIJ regional Conferen held in Glasgow in September 2024. 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 transferof 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 Stsmford, 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 frorn the Sullivan estate. On 16 January 2015 the US Investments held in the name of the Lorana Sullivan Foundation Inc. were transferred to the Charily following completion of probate for the US estate of Lorana Sullivan. The value transferred was £1,527,900 ($2,266,901).
The Lorana Sullivan UK Foundation Trustees. report for the year ended 31 March 2024 (continued) 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-tem funding crisis or a medium-temi 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 £120.000 for 2025. At the end of the year the balances of the funds were: 2024 2023 Unrestricted General funds Unrestricted Designated funds Total reserves 1.311,493 850,000 2.161,494 1,214,213 850,000 2,064,213 The trustees can designate unrestricted fijnds for a specific purpose where suitable to isolate funds from the General fund and ensure they are not used through normal operations. Where the trustees believe there is a future obligation to meet using funds held in the General fund. the trustees can agree to recognise a Designated fund and transfer assets from the General fund to the Designated fund. The trustees have a designated reserve. called the investment property fund and revaluation fund. This represents the assets which are retained to ensure income generation. Trustees The Trustees, who are also the directors for Ihe purpose of company law, who served during the year were: Harry J Friedberg Michael Gillard Maura McDermott Marilyn Ordover Richard Singer None of the Trustees have any beneficial interest in the Charity- All the Trustees are members of the Charity and guarantee to contribute £1 in the event of a winding up. Risk factors The Trustees have assessed the major risks to which the Charity is exposed, mainly from any future adverse movements on the US stock market. The Trustees are satisfied that policies are in place to mitigate exposure to any such risks. Related charities A related charity in the United States, known as the Lorana Sullivan Foundation Inc.. was closed following the conclusion of the probate of the Sullivan estate and the transfer of its assets to the Charity. The report of the directors has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. On behalf of the Board of Trustees M Gillard Trustee Date ic i¥ The notes on pages 11 to 18 fom) part of these accounts.
The Lorana Sullivan UK Foundation INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE LORANA SULLIVAN UK FOUNDATION FOR THE YEAR ENDED 31 MARCH 2024 I report to the charity's Trustees on the accounts of the company for the year ended 31 March 2024, which are set out on pages 9 to 18. 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 l am required to state to them in an independent examinerfs 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 accordan 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 2. the accounts do not accord with those records. or 3. 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 4. the accounts have not been prepared in accordan with the methods and principles of the Statement of Recommended Practi 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. DuSjned by.. eattl'éFTh¥élhouse ACA BDO LLP Level 12 Thames Tower Station Road Reading RG1 1LX Date 19 December 2024
The Lorana Sullivan UK Foundation Statement of financial activities (Incorporating the income and expenditure account) for the year ended 31 March 2024 Unrestricted 2024 Unrestricted 2023 Note Income from: Investment income 46,117 45,724 Other income 1,194 827 Total 47,311 46,551 Expenditure on: Raising funds 14,297 15,741 Charitable activities 75,371 43,879 Total 89,668 59,620 Net Gainl(Loss) on investments 170,696 (111,961) Net incomel(expenditure) 128,339 (125,030) Other recognised (losses) I gains Foreign exchange {losses)Igains (31,059) 88,550 Net movement in funds 97,280 (36,480) Fund balances at 1 April 2023 2,064,213 2,100,693 Fund balances at 31 March 2024 2,161,493 2,064,213 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 18 fom) part of these accounts.
The Lorana Sullivan UK Foundation Registered Number 03821824 Balance sheet as at 31 March 2024 Note 2024 2024 2023 2023 Fixed assets Investment property Investments 850.000 1,434.027 850.000 1,300,190 2.284,027 2,150,190 Current assets Cash at bank and in hand 3,488 1,303 Creditors: Amounts falling due within one year (99.022) (87.280) Net current liabilities (95,534) (85,977) Total assets less current 2,188,493 2,064,213 Creditors: Amounts falling due after more than one year 11 (27,000) Net assets 2,161,493 2,064,213 Unrestricted funds Revaluation fund Designated investment property fund General reserve 13 13 500.000 350,000 500,000 350,000 13 1,311.493 1,214,213 Funds 2.161,493 2,064,213 The Trustees consider that the Charity is entled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 {"the Act") and members have not required the Charity to obtain an audit for the year in question in accordance with section 476 of the Act. The Trustees acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and for preparing financial statements. M Gillard Trustee The notes on pages 11 to 18 fonn part of these accounts. 10
The Lorana Sullivan UK Foundation Notes to the accounts for the year ended 31 March 2024 General inforniation The Lorana Sullivan UK Foundation is a private limited company incorporated in England and Wales under the Companies Act 2006 and Charities Act2011. 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. Accounting policies The principal accounting policies adopted. judgements and sources of estimation or UnrtaintY 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 Stalement 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 Goncern 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 Performan 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. there are no material uncertainties regarding the Charity's ability to continue in operational existence for the foreseeable future. The Trustees continue to adopt the going concern basis in preparing the financial statements. In November 2024 the Charity had approximately £6.536 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. Dividend and interest income are recognised when receivable.
The Lorana Sullivan UK Foundation Notes to the accounts for the year ended 31 March 2024 (continued) 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. Support costs are allocated to expenditure on a fair and consistent basis, ensuring that all such costs are accurately recorded and reported in the charity's financial statements. (e) Reserves Reserves are unrestricted funds generated for the objects of the charity without further specified purpose and are available as general funds. Designaled funds are as follows: Property and revaluation fund An amount equal to the carrying value of the investment properties, restricted lo a level to ensure general funds are not negative, in order to allow for the ongoing generation of income to enable the charity to continue to make their donations and fuffil their charitable objectives. (fj Investment property Investment propety is carried atfairvalue which is detennined annually by the trustees based on a report from external valuers done periodically and derived from current market indices and trends for residential property, adjusted if neSSary for any drfference 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 Ihe 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 withoul 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. O) 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. 12
The Lorana Sullivan UK Foundation Notes to the accounts for the year ended 31 March 2024 (continued) 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 Iransaction 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. 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. Investment income 2024 2023 Dividends receivable Interest receivable 22,905 23,212 25,228 20,496 46,117 45,724 All investment income in the current and prior year was unrestricted. 13
The Lorana Sullivan UK Foundation Notes to the accounts for the year ended 31 March 2024 (continued) Other income 2024 2023 Reimbursement of insurance and other costs Interest 1,161 33 814 13 1,194 827 All other income in the current and prior year was unrestricted. Total expenditure 2024 2023 Raising funds (see below) Charitable expenditure (see below) 14.297 75.371 15,741 43,879 89.668 59,620 Costs relating to raising funds comprise: Insurance Investment management fees 927 13.370 1,777 13,964 14,297 15,741 Costs relating to charitable expenditure comprise: 2024 2023 Donations: Centre for Investigative Journalism - Payments for projects Other costs: Exchange rate dIfferenS relating to the CIJ grants Archive costs Legal fees Insurance 69.406 23,889 (1,758) 389 13,120 366 444 982 Total direct costs 69,019 37,819 Support costs.. Independent examiner fees Accountancy fees Tax withheld Bank charges 3.306 2.738 230 78 3,250 2,301 388 121 Total charitable expenditure 75.371 43,879 All expenditure in the current and prior year was unrestricted. 14
The Lorana Sullivan UK Foundation Notes to the accounts for the year ended 31 March 2024 (continued) 7 Employees The charity does not employ any staff. During the year there were 5 Trustees (2023 - 6). None of the Trustees received any remuneration for their services (2023 - £Nil) ilnvestment property Valuation: At 1 April 2023 at fair value 850,000 At 31 March 2024 850,000 Investment propety 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 rent valuation was carried out as at 12 November 2024 by McNeill Lowe & Palmer, 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 differen as at 31 March 2024 between the carrying amount of the property and its fair value. The historical cost of the investment property is £350.000 {2023 - £350,000). Investments Value at Foreign 31 March exchange 2023 movements Value at 31 March 2024 Purchases at cost Disposals at Market value Revaluation gain Equities US quoted 1,234,545 (28,424) 429,896 (387,466) 170.696 1,419,248 Cash deposits 65,645 (1.046) 433,583 (483,403) 14,779 1,300.190 (29.470) 863.479 (870,869) 170,696 1.434,027 Fidelity Limited. a company registered in the United Ststes of America. provides brokerage and custody services. The historical cost of the investments (including cash deposits) at 31 March 2024 was £1,075,316 (2023 - £1,080,670). 15
The Lorana Sullivan UK Foundation Notes to the accounts for the year ended 31 March 2024 (continued) 10 Financial Instruments The carrying amount of the charitable company's financial assets measured at fair value through statement of financial activities are summarised below- 2024 2023 Listed investments 1.419,248 1,234,545 1,419,248 1,234,545 11 Creditors 2024 2023 Amounts falling due within one year Other creditors and accruals Grants payable Amounts due to related parties 6,000 92,208 814 5,500 80,966 814 99,022 87,280 Amounts falling due after more than one year Grants payable 27,000 Total creditors 126,022 87,280 Analysis of grant commitments 2024 2023 Amounts committed to the Craig Newmark Graduate School of Journalism to establish the Lorana Sullivan Foundation Scholarship BIF 1 April 2023 80,966 149,362 Committed during year Foreign exchange adjustment on balance Paid during year (1,758) 12,570 (80.966) CIF 31 March 2024 79,208 80,966 16
The Lorana Sullivan UK Foundation Notes to the accounts for the year ended 31 March 2024 (continued) 11 Creditors {cont'd) Analysis of grant commitments 2024 2023 Amounts committed to CIJ to establish the Lyra McKee Bursary Scheme BIF 1 April 2023 Committed during year 40,000 CIF 31 March 2024 40,000 12 Designated funds The Trustees have designated funds lo represent the carrying value of investrnent 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. 13 Funds Balance at 1 April 2023 Transfer between funds Balance at 31 March 2024 Income Expenditure Revaluation fund Propety reserve General reserve 500,000 350,000 1.214.213 500,000 350,000 1,311.493 218.007 (120.727) 2,064.213 218.007 (120.727) 2.161,493 Balance at 1 April 2022 Transfer between funds Balance at 31 March 2023 Income Expenditure Revaluation fund Property reserve General reserve 500,000 350,000 1,250.693 500,000 350,000 1,214,213 135,101 (171.581) 2,100,693 135,101 (171,581) 2,064,213 17
The Lorana Sullivan UK Foundation Notes to the accounts for the year ended 31 March 2024 (continued) 14 Analysis of net assets between funds General Funds Designated Funds Total 2024 Fixed assets Current assets Creditors 1.434,027 3,488 (126.022) 850.000 2.284.027 3.488 (126,022) 1,311.493 850,000 2.161,493 General Funds Designated Funds Total 2023 Fixed assets Current assets Creditors 1.300,190 1,303 (87,280) 850.000 2.150,190 1,303 (87.280) 1,214,213 850.000 2.064,213 15 Related party transactions During the year Mr M Gillard, a trustee of the charity paid £Nil (2023.. £Nil) to the charity. At the year-end £814 (2023: £814) was owed by the charity to Mr M Gillard for expenses incurred. 18