Charity Registralion Numbei: 1080765 The Roger Newport Foundation Report and financial statements for the year ended 31 December 2022 The Roger Newport Foundation Annual report and financial statements for the year ended 31 December 2022 Contents Page Report of the Trustee Independent auditor's report lo the Trustee of The Roger Newport Foundalbon Slalemenl of financial acliviles 12 Balan￿ sheet 13 Principal accounting policies Notes to the financial slalemenls 14 16 Report of the Trustee for the year ended 31 December 2022 The Trustee wesenl$ tts report and audited financial statements for The Roger Newport Foundation {"Ihe charity") for the year ended 31 December 2022. The fina￿181 statements comply with current stslutory requirements, the goveming instnjmenls and the Slalemenl of Recommended Practice ISORPI "Accounting and Reporting by Charities" issued in 2019. Trustee. officers and advisers The Trustee of the tharity is SMV Truslee Company Limited. Listed below are those members who have served on the Board of SMV Tnjstee Company Limited during Ihe year.. Patrick Despard Michael 8olhamley Robert Bourns David F￿d Gillian Carnm Ross Ancell Charle5 Grrfilhs Alan Lewis Mohammed Saddiq Jonalhon Baker Martin Thatcher Dr Steve Allpress Nik Baker Kad Tucker Kalharine Finn David Powell Mark Burchfield Heather Frankham (Retired 10 November 2022} (Retired 10 November 2022) (Retred 10 November 2022} IAppinle(110 November 2022} {Apwinled 10 November 20221 (Apwinled 10 November 2022) Registered addr8ss of the Charity Merchants, Hall The Promenade Bristol BS8 3NH Charity Numb¢r'. 1080765 Report of the Trustee for the year ended 31 December 2022 Names and addresses of other relevant organlsations Audltor KPMG LLP. 66 Queen Square. BristcA. BS14BE Banker Nalwesl Bank plc. 32 Com Street. Bristol. BS99 7UG Solicitor Womble Bond Dickin5Q￿ (UK) LLP. 3 Tern>￿e Quay. Tern￿e Back Easl. Bristol. BS1 6DZ Investmènt Manager Evelyn Partners Investment Management LLP. P(thall Place. PoiNYall Lane. Brislol. BS16NA Reference and administratlve Infomiatlon Structure. governance and management Governing docurnent The Roger NewFM)rt Foundation is a registered charity (charty no 1080765) and is governed by a Trust Oeed dated 1 March 2(KlO. Governlng body and organisational management The Trustee of the Charity is SMV Trustee Company Limited. a company limited by guarantee. Al the members of the Society of Merchant Venturers. Standing Committee are Directors of SMV Trustee Company Limiled. The Trustee meets regulady and periodicalty reviews the operation and financial results of the Charity. Assisting the Trustee are Ihe Roger Newport Advisory Committee, the Investment Strategy Group. the Finance and Investment Sub-commillee and the Conflicts of Interest Advisory Sub-commillee. The Roger Newport Advisory Committee manages the charity on behalf of the Trustee and considers the level ol bursaries and prizes to be awarded to pupils al the Collegiate Schoc4 against the level of surplus funds lo be invested in a￿Ordance wilh the Founder's wishes. Members of the Committee served during the year were.. Chris Booy (Chairl Nick Baker Karen Morgan Kathryn Bishop Caroline Duckworlh Jeremy Mccullough (Ex Officio, Headl The Conflicts of Inleresl Advisory Sub-commillee comprises of two individuals with no connection to either SMV or SMV TCL who can advise on areas where a conflict of interest might arise. As detailed in note 10, Ihe Society of Merchant VenluTers provided adminislralive services lo the charities of which SMV TCL was Iruslee and las permitted by the Charity Commission) made a charge for these. The Conflicts of Interest Advisory Sub-commillee has reviewed these charges and made a recommen¢Jalion lo the boafd of SMV TCL that the proposed charges are, lin the opinion of Ihe members of the Sub-committee) appropriate. Report of the Trustee for the year ended 31 December 2022 Governing body and organisational management (continu￿) The Trustee has delegated lo the Investment Siralegy Group management of the asset allocation and the investment strategy on an annual basis taking into account the recommendations from the Finance and Investment Sub-commillee. pasl and projected inveslmenl perfomiance and future capital and revenue requirements. The members of the Inveslmenl Strategy Group who served during the year were.. Alan Lewis (Chairman) David Freed Patrick Oespard Michael Bolhamley Robert Boums (Appointed 10 November 2022) Tim Ros5 Ross Ancell Cullum McAlpine Geoff Mallhews Chris Pople Dr Steve Allpre5S Caroline Duckworlh The Truslee has delegated lo the Finan￿ arKJ Investment Sub£ommittee management of the financial asset investment portfolio.. the appointment of appropriate Fund Manager5 and monitoring their performance.. and lo recommend lo the Investment Siralegy Group the optimum strategy for financial investment. The members of the Finance and Investment Sub-committee who served during the year were.. Dr Steve Allpress ICh2irnianl David Freed Patrick Despard Michael Bolhamley Robert Boums {Appoinled 10 November 2022) Alan Lewis Tim Ross Ross Ancell Cullum McAlpine Geoff Matthews Chris Pople Caroline Duckworth Recruitment and training of the Trusteo The members of the Board of SMV Trustee Company Limited are elected annually from within the membership of the Society arbd are apprised of Ihe general duties ol a trustee. In the evenl of significant changes lo legislation or best pract￿, further relevanl training is undertaken. The members of the Inveslmenl Stralegy Group and Finance & Inveslmenl Su&Commillee bring with them skills and eXper￿nCe of the financial investment sector. Members of the Roger Newport Advisory Committee reflect the Trustee's interesl in education and possess the experience lo meet the objects of the Foundation. Report of the Trustee for the year ended 31 December 2022 (continued) Risk Management In light of the Corporate Govemance widance contained wthin the Slalemenl of Recommended Praclice "Accounting and Reporting by Charities". the Trustee has ex8mined the major risks faced by the charity. The Trustee continues lo monitor and manage ongoing risks relating to areas such as the achievement of the charitable objects and the protection of the charity's 8ssels. Systems are in place lo monitor and control these risks lo miligale the impact that they may have on the eharity in the future. The Society of Merchant Venturers. Audit Committee is responsible for assessing the scope and effecliveness of the systems and processes established by management lo Kjenlrfy, assess, manage and monitor the financial and non-financial risks. The risk register is reviewed and updated as required and on a bi-annual basis by Management and by the Merchant VentU￿r$, Audit Committee aThJ is noted by the Trustee. The Charity is reliant on the income from its investmen15 to enable it to fund bursaries and prizes in the furtherance of its charitable objectives. The charity does however have reserves in significant ex￿$$ of ils annual expenditure and therefore rf required it could meet expendilure from these reserves. Objectives and activities The Trustee confirms that it has referred lo the guidance ￿ntaIned in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectiv8s and in planning future aclivilies. Objects of the Foundation The object of the Foundation is the advancement of education by the creation of bursaries or prizes to be awarded lo children who wish lo allend the Collegiate School, Stapleton. Bristol bul would not otherwise be able lo do so wilhoul financial assistance_ This object has been met during the year. Achlevements and Perforniance The Trustee is pleased lo report that the Foundation continued to meet its objects during the year by pledging £32,850 {2021". £90,672} for bursaries for pupils al the Collegiate School. Financial review The year ended 31 December 2022 was a lurnulluous year on almost every facet and financial markets were deeply affected. There was mulli-decade Tecord inflation and central banks responded wilh rapidly lightening monetary policy. Rising interest rale5 saw the corielats.on between bonds and eouilies turn positive, contributing lo18rge declines across most asset classes. Funds flows diverted away from growth and momentum slralegies. and yield curves flattened. The lolal return of the investment portfolio in Ihe year was a loss of116.80AI versus the composrte benchmark loss of (6.3Yo)12021'. gain of 14.64Q/o versus the composite benchmark gain of 12.73¥o}. The charity generated a net operating surplus of £43,069 for 2022, this compared lo an operating deficit of 1£15.9101 in 2021. Investment policy The investment portfolio 15 of medium risk and has an emphasis on investments considered lo have longer lerm growth potential wilh less regard for current income. The portfolio is monitored against the MSCI AII Share index as well as a composite index comwising 20% Mkt iBoxx Gilt. 55010 FT All Share, 20tsh MSCI World EX-UK, 3M LIBOR. Report of the Trustee for the year ended 31 December 2022 (continued) Reserves policy In accordance with the Founder's wishes, the Truslee aims lo steadily grow the fund via a combination of capital growth and reinve5trrient of income, whilst providing a rdiable income stream to meel the charity's objectives. The policy is revEwed by the Trustee on an annual basis. At 31 December 2022 the unreslricled funds were £3.014.278. At 31 December 2022 there were nel currenl assets of £224,589. Going concem The financ4al slalemenls have been prepared on a concern basis which the Trustee ConS￿erS lo be appropriate for the fo11owng reasons. The Trustee has prepared cash flow forecasts for a pertod of 12 months from the dale of approval of these financial statements whth Ind￿te that. lakirvJ a(xounl of reasonabty possible downskyes. charity will have sufficient funds to meet ils liabil￿"eS as tt￿Y fall due for that per￿￿. The downside scenarK¥s eonsKJered by the Trustee irthde a situation where income is svjnificanlly reduced. The chaiity has current assets considerably in excess of its IkAtililies and. even wlh a signrficant fall in irthme. has sufficient resources lo meet ils liabilitEs as fall due Ihroughoul the forecast period. Consequently, Ihe Trustee is confident that the charty wll have suffuenl funds to meet ils liabli ities as they fall due for al least 12 months fr(Mn Ihe dale irf approval of the finan(aal stalements and therefore has prepared the finanual slalements on a goi￿ cOnc￿n b&sis. Future plans It is the intention of the Trustee to continue lo invest surplus funds in a managed portfolio wilh Evelyn Partners Investment Management. The portfolio will be managed on a discretionary basis lo provide a balanced return between longer term capital growth and current Income with a rnedium level of risk. In order lo award bursaries and prizes. the Trustee aims lo provide a sustainable income stream which is capable of growing in real temis. This income will. in accordance wth the Founder's wishes, be primarily used lo provide bursaries to Sixth Fom pupils wishing lo attend Collegiate School. Report of the Trustee for the year ended 31 December 2022 (continued) Accounting and reporting responsibilities Statement of Trustee's responslblllties In respect of tho Trustee's Annual Report and thg financial statements Under charity law, the trustees are responsible for preparing a Trustees, Annual Report and the financial slalemenls in accordance with applicable law and regulalions. The Iruslees are required lo prepare the financial slalemenls in accordan￿ with UK Accounting Stsndards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Irdand. The financial slalemenls are required by law to give a true and fair view of the slate of affair5 of the charity and of the incoming resources and applution of resources for that period. In preparing these financial statements, generally accepled accounting practice entails that the Ifuslees.. select suitable accounting policies and then ap￿Y them consistently., make judgerTbents and estimates that are reasonable and prudent- slate whether applicable UK Accounling Standards and the Statement of Recomme￿Ied Practice have been followed, subject to any material departure5 di%c105ed and explained in the financial slalemenls- slate whether the financial statemen15 comply with the tnjsl deed, subj-ecl lo any material departures disclosed arwj explained in the financial 5talemenls.' assess the charity's ability lo continue as a going concem. disclosing. as appI￿able. matters related lo going COr￿ern., and use the going concem basi5 of accounting unless they either inlend lo liquidate the charity or lo cease operations, or have no realistic alternative bul lo do so. The Iruslees are required lo a¢1 in accordance with the Irusl deed of the charity. within the framework of trust law. They are responsible for keeping accounting records which are sufficient lo show and explain the charity's transactions and disclose al any time, with reasonable accuracy, the financial posilion of the charily al that time, and lo enable the trvslees lo ensure that. where any 51alemenls of accounts are prepared by them under seclion 132111 of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under Ihal provision. They are responsible for such internal control as they determine is necessary lo enable Ihe prepafalion of financial slalemenls that are free from material misstalemenl, whether dve lo fraud or error. and have general responsibility for taking such slep5 as are reasonably open lo them lo safeguard the assets of the charity and to prevent and delecl fraud and other irregularities. The Iruslees are responsible for the maintenance and integrity of the financial and other information included on the charity s website. Legislation in the UK governing the preparalion and dissemination of financial slalemenls may differ from legislation in other jurisdictions. Sign for and on behalf of the Trustee Patrf¢ spard, Director Merchants, Hall, The Promenade, Clifton. Bristol. BS8 3NH Date.. o? LY IOZ3 Independent auditor's report to the Trustee of The Roger Newport Foundation Opinion Vve have audited the financial slalernenls of Roger Newport Foundation I"Ihe charity'l for the year ended 31 December 2022 which comprise the statement of financial aclivilies. balance sheel and relaled notes, including the accounting policies on pages 14 to 15. In our opinion the financial statements: give a true and fair vw of the slate of the charity's affairs as al 31 December 2022 and of ils incoming resources and application of resources for the year then ended.. have been proFerly prepared in ￿1rdance with UK accounting Standards, including FRS 102 The Financial Reporting Sland8rd applicable in Ihe UK 8nd Republic of Ireland., and have been prepared in accordance with the requirements of the Charsties Acl 2011. Basis for oplnlon We have been appointed as audilor under section 145 of the Charities Act 2011 lor its predecessor5} and report in accordance wilh regulations made under seclion 154 of Ihal Act. We conducled our audit in accordance wlh Inlefnational Standards on Auditing IUKI I'ISAS {UKI"l and applicable law. Our responsibilities are described bdow. We have fulfilled our ethical responsibilities under, and are independent of the charrty in accordance with. UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Going concern The Iruslees have prepared the financial slalemenls on the going concern basis as they do not ITilend lo liquidate the charity or lo cease ils operalions, and as they have concluded that the charity's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast signrficanl doubl over ils abilily lo continue as a going co￿eM for al least a year from the date of approval of the financial stalemenls {"Ihe going concern period"}. In our evaluat￿n of the InJslees' conclusions. we considered the inherent risks lo the charity's business model and analysed how those risks mwhl affect the chanty's finarKial resources or ability lo continue operations over the going concern period. Our conclusions based on this work.. we consider that the Iruslees. use of Ihe ￿Ing concern basis of accounting in the preparation of the financial 51alements is appropriate.. we have not identified. and concur wth the twstees, asses¥menl that there is not, a material uncertainly related lo events or conditions that. individually or collectively, may cast significant doubl on the charity's abilrty lo continue as a wing concem for the going concern period. However. as we can￿1 predict 7Jl future events or conditions and as subsequent events may result in outcomes Ihal are inconsi51enl with judgements that were reasonable al the time they were made, the above conclusions are not a guarantee that the charity will continue in operats"on. Fraud and breaches of laws and regulations- ability to dotect Identi￿ng and responding to risks ofmalerial misstalemenl due lo fraud To idenlify risks of material misstatement due lo fraud I'fraud risks-) we assessed events or conditions that could indicate an incentive or pressure to eommil fraud or provide an opportunity lo commit fraud. Our risk assessment procedures included.. Enquiring of management as lo the charity's high-level p￿￿leS ar￿ procedures to prevent and delecl fraud as well as whether Ihey have knowledge of any actual. suspected or alleged fraud. Reading Standing Committee. audit committee. and investment committee meeting minutes. Using analytical procedures lo identify any unusual or unexpected year on year movemenls. We communicated identified fraud risks throughout the audit team and remained alert lo any indications of fraud throughout the audit. ## **Independent auditor’s report to the Trustee of The Roger Newport Foundation (continued)** As required by auditing standards, and taking into account our overall knowledge of the control environment we performed procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we did not identify a fraud risk related to revenue recognition due to the simple recognition criteria and limited scope for judgement. We therefore assessed that there was limited opportunity for management to manipulate the income that was reported. We did not identify any additional fraud risks. In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the fraud risk management controls. We also performed procedures including: - Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included unusual accounts combinations. ## _Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations_ We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations. As the Charity is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity's procedures for complying with regulatory requirements. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including charities legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the Charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: certain aspects of charity legislation recognising the financial and regulated nature of the Charity's activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. _Context of the ability of the audit to detect fraud or breaches of law or regulation_ Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. 10 Independent auditor's report to the Trustee of The Roger Newport Foundation (continued) Other informatlon The trustees are responsible for the other information. which comprises the Rep(Kt of the Trustee. Our opinion on the financial slalemenls does not cover the other infomi8tion and, accordingly, we do not express an audit opinion or, except as explicitly slated below. any fomi of assurance conclusion Ihereon. Our responsibilty is lo read the other information and. in doing so. cOns￿er whether, based on our financial statements audit work. the information therein is materially misstated or inconsistent with the financial statements or our audit kn￿edge. We are required lo report lo you rf.. based solely on that work. we have identrfied material mi5Stalements in the other information.. or in our opinion, Ihe information gNen in the Trustees, Annual Report is inconsislenl in any material respect with the financial slatemenls. We have nothing to report in these respects. Matters on which we are required to report by exception Under the Charities Act 2011 we a￿ ￿qUired to ￿port to you rf. in (yjr opinion.. the charity has not kept sufficrenl acccmjnling records,. or the financial statements are not in agreement wth Ihe acC￿ntIng records.. or we have received all the information and explanations we require for our audit. Vve have nolhirKJ lo report in these respects. Trustees, responsibilities As explained more fully in their slatemenl sel out on page 8, Ihe trustees are responsible for.. the preparation of financial slalemenls which give a true and fair view," such internal control as they determine is necessary lo enable Ihe preparation of financial sialemenls that are free from material misslalemenl. whether due to fraud or error,. assessing the charity's ability lo continue as a going concern, disclosing. as applicable, matters related lo going concern,. and using the going concem basis of accounting unless they either intend lo liqU￿ate the charity or lo ￿aSe operations. or have no realistic altemaltve but lo do so. Auditor's responslbilltles Our objectives are to obtain reasonable assurance aboul whether the financial statements as a whole are free from material misslatemenl, whether due lo fraud or error. and lo issue our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAS IUKI will always detecl a material misslatemenl when rt exists. Misslalemenls can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected lo influence the economic decisions of users tsken on the basis of the financial slalemenls. A fuller description of our ￿SponSibl1111es provided on the FRC'S website www.frc.or .ukl8udilorsres onsibilities. al Thg purpose of our audit work and to whom we owe our responslbilities This report is made solely lo the charity's Iruslees as a body. in accordance with section 145 of the Charilie5 Act 2011 (of Ils predecessors) and regulalions made under section 154 of that Act. Our audit work has been undertaken so that we might slate to the charity's truslees Ih05e mallers we are required to slate to them in an auditor's report and for no other purpose. To the fullesl exlenl permitted by law. we do not accept or assume responsibility lo anyone other than the charity and its truslees, as a body. for our audit work. for this report, or for the opinions we have formed. athan Brown for and on behalf of KPMG LLP. Statutory Auditor Chartered Accounlanls 66 Queen Square, Bristol, BS14BE Date.. 04 2oJ3 KPMG LLP is el￿1b18 lo act as an auditcw in terms ofsection 1212 of Ihe Companies Act 2006 The Roger Newport Foundation Statement of financial activities for the year ended 31 December 2022 Notes 2022 2021 Income from.. Investments 81.038 71,478 Total income 81.038 71.478 Exp9ndituro on: Raising funds- Investment manager charges Charitable aclivilies {2,9941 131.730} {3,2451 137.969) 43,069 1663,2561 (620.1871 13.374 (80,7721 13.242 187,3881 (15.9101 373,774 Other Total expenditure Net surpluslldeficit) (Lossygain on revaluation of investments Not moverngnt in funds 357.864 Reconciliation of funds: Total funds brought foThvard Total funds carried forward 3,634,465 3.014,278 3,276.601 3,634.465 The slalemenl of financja activities includes all gain5 arKI losse5 reccgniwj in the year. Al incoming resour￿5 and resource5 experKled derive from continuing activilie5. AJI I￿L)Me and expenditure in both yews is unrestrrted. The ac￿Mpan￿ng rLTrles form part of the finarKial statements. 12 The Roger Newport Foundation (Charity Number 1080765) Balance sheet at 31 December 2022 Notes 2022 2021 Flxed Assets Investments 2,800,639 3.466,115 Current assets 118.800 100,000 Cash 152,745 155,646 271.545 255,646 Creditors: amounts falling du• within one year Net currgnt a$sgts {4Q956) (57,0721 224,589 198.574 Creditors: amounts falling due after more Ihan one year Net assets (10.950 3,014,278 (30,2241 3,634.465 Funds Unrgstrictad fund 3.014.278 3,634,465 The finanaal slalements on pages 12 to 19 were atproved by the Trustee on L%1 JV and were signed on Ils behalf by.. 14L4 Pat Dir k Despard or Michael Bothamley Director 13 The Roger Newport Foundation Principal accounting policies Basis of preparallon The financial slalemenls have been prepared under the historical cost convention. modified by Ihe revaluation of fixed asset inveslments. and in &cordance wlh Acc