R¢gi$tered Charity No. 1087056 THE STEVE MORGAN FOUNDATION Annual Report and Financial Statements Year ended 31 Mareh 2021 THE STEVE MORGAN Fou￿,DATIoN CONTENTS Page Officers alld professioD81 adTr'i5ers Trustee5' report Tru5tees' re5PODsibilities statemellt Independent auditor'5 report Statement of financial activities Balance $beet Cash tlow staten]ent io Notes to the financial statemeots li THE STEVE MORGAN FOUNDATIO OFFICERS AND PROFESSIONAL ADVISERS CHAI￿[AN S P Morgan HOI%OIL4RY TREASURER A M Lewis TRUSTEES S P Morgan S J Mooan V W Fairclollgh R E Walker A M Leivis J R C Masters B L Clark HOTrqORARY SECRETARV V W Faircloiigh ADMINISTBATOR J Ha￿]5 BANKERS Barclays Bank PLC 3 Hardman Strttt SpintiiiigfLelds Manchester M3 3AX AUDITOR Deloitle LLP Statutory Auditor I City SqLthte Leeds United Kuigdom LSI 2AL INvEST￿lE￿IT PIIANAGERS Barclays Wealth and Investment Management I Churchill Place Loiidon E145HB Quilier Cheviot One kingsway Lot]don WC2B 6AN UBS Wealth Management 5 Broadgate Loiidon EC2M 2AN REGISTERED & ptUNCIPAL OFFICE PO Box 3517 Chester CHI 9ET THE STEVE MORGAN FOUNDATION TRUSTEES, REPORT The trustees presenitheir armual report on the affair5 of theclwity, togetlLerivith the fmancial statements and auditor's report for the year ended 31 March 2021. The fJn8ncial statements have been prepared in accon1ance ivith the accounting policies as set out in note I to the accounts and comply with the charity's trust deed. the Charities Act 2011 and Accounting and EieN)rting by Charities-. Sla*ment of Recommended Practic¢ applicable to charities preparing their atcounts ivith the Financial Rep)rting Standard 102 applicable the UK and liepublic of treiand. STRUCIURE, GOVERNANCE IMANAGEMENT The Steve Morgan Foundation is constiNted under a trnsi deed d8ied 18 Cktob¢r 2000 ￿ amended by supplemental deed dated 14 May 2001. It is a registered charity no. 1087056. The business of the Charity 15 conducted through a series of bi-monihl} Tn￿lee5, meetings, wh¢r¢ Trustees overse¢ the grant making ￿tivIties, ensuring that these coniinue to support a wide range of organisations benefitting the lo¢al com]nunity. Tru5tee5 ar¢ responsible for controlling expenditure and also for the investment and r￿erve policies and wiItL any associated d￿lsiOnS. The registeredlwincipal office address is shown on page l. OBJECTIVES AND Ac[Iv￿lEs FOR THE PUBLIC BENEFIT The Charity aims to change lives by fvnding projects that provide ptaclical, targeted support for people coping with disability, mental health problems, social isolation, domestic violence. unemployment and p(Trverty. The charity has unrestricted objecls to apply the ¢orpus and income for all purposes which are charitable utLd¢r the laws of Eng18nd and Wales from tim¢ to liine. Subject to any designaiion or trstriction which might be attached to any sum received by the charity to b¢ applied in impletnentation of its object8 it is the policy of the Trustees t(Tr apply the incorne stream of The Steve Morgan Fowidation to charities rnainly operaiing in Merseyside, Cbeshire and North Wale% in support of young people and othErs iyho are disadvantaged or ivho ate otherwise ivorthy such as in relation to dLe pursuit of educational gbjectivts. In all cases the f￿ancial support of The Steve Morgan Foundation would be expected 'to make a difference,. Generally. an aivard payable would be made for such charitable purpses where the prospective reripient had already eslablished an initiative, albeit however rnode5L It 15 the poliry of the Trustee5 to preserve the donaiions derived ivithout designation or restriction as a corpus to be . enhanced by other like donations and subjeci to capitsl gain and capital loss for ihe provision of the income stream to be applied for the charitable purposes. No￿ever, the TnLSttts their policy as one which they have fvll discretion to arnend in order to address changing circumstances as they see fit. In setting their objectives and planning their services. the Tnjstees of th¢ charity have given careful consideralion to the Charity ComtTriSsion's general guidance on public benefrt. The Steve Morgan Foundation filrthers its charitable purposes for the public benefit through its gr8nt-making policy vhich aim5 aL Providing funding forsmall to medium sized organisations ivho are a(bJressing specific needs in Merseyside, Cheshire and North Wa]es' Focussing financial support mainly on those ivho i%OTk directly with children and families. and Supporting projects which dityclly Conltibuie io the quality of life of the p¢ople in the region. ORGANISATION The Trnstees who have served during the ￿ear and since the year end are set out on pag¢ l. Trustet5 are appointed by the Board of Trustees in accordance iviib the t￿st deed_ There shall b¢ at least three TrusteE5. iyho ivill be appointed by resolution of ihe Trnstees as passed at a special meeling. No Tntste¢ had any financial interest in the charity in the current or prior yvar. ACHIEVEMENTS AND PERFORMANCE The Charity has 2ivarded a record level of gmts of £?5,805.095 {2019r20.' £10.039,761) in rhe last year to organisations in line ivith their objectives representints the significant aciiviiies of the Charity. The Trustees have considered many applications for support, some of %h'hich did not fall Ivithin the focus of the Charity. All grants aivarded are in accordance il'ith fvrthering the chariiable objectives of The Sleve Morgan Fgundation. SuTplus funds continiie to be invested ivirh the aim of generaiing additional income to be used for grant rnaking activities as outlined above. THE STEVE MORGAN FOUNDATION TRUSTEES, REPORT (CONTINUED) The Trustees have not outlin¢d key perfomiance indicators for The Sieve Morgan Foundation. Whilst a targeted level of grant tnaking is usually set, during the y¢ar und¢r reviov this ivas not considered to be relevant due io the largescale impact of the DCMS scherne Tefcrred to b¢loiv. -Ibe Charity'5 perlorniance durll)g the year ivas enhanced very significantly by ivay of its response to i55ue5 caused by the PJndeTnic. -the Charity was able io respond rapidly io siipport those organisations iTr'ithin its reEnit area5 iThhich iver¢ impatted adveTsely during the r￿st lockdoivn period, by Ivay of an emergency hardship fund. The Covid-19 Emergency Fwid aivarded grants of £4.283.773 (2019r20'. £1,370,466). having comtnirted lip to £lm per iveek for the f]r5t 12 weeks of the pandemic to help charitable organisations deal ivith the effects of the crisis. During ihe year it was selected as a partner organisation by the D¢partin¢nt for Digital, Culture. Media & Sport (DCMS) as part of their £85m Community Match Challenge Fund. This ¢nabled the Chariry to aivard grants of £19,655,063 of which £lQ,IXK),000 was fi￿ded by DCMS and was required io b¢ spent in full prior to the Charity's year end_ The Charity ivas proud to have achieved that target and was also proud to b¢ the only north-lvesteni partner ¢ho￿n to participate in this scheme by DCMS. Hoivever, as a consequence of the above exceptional levels of activity, regional grdnts aiiarded during the year of £376.733 (2019llO'. £2,249,718) fell below the targeted leyel of £2.500,IKKI. The Enable division, funding i)oth specialist disability equipment for people of all ages and our ivell-e5tablished Smil¢) Bus programme. aivarded grants of £41,163 during the y (2019120= £677,476) and an additional £7424? of discretionary grants ivere aivarded. £1.374,121 wasawttrded in total to Major Grants. FINANCIAL REVIEIV AND INVESTMETriT POLICY The resulis for the year ended 31 Mareh 2021 are set out in the Sthtement of Financial Aciivilies on page 9. This shoivs net expenditiire F£fore gains110￿c5 on investments for the year 01£12.852.494 (2020.. net income £1,591,989)- Total income increased from £12,214,425 to £13,963.449 due to an increase in Specific donations as cofflpared with the previous year. Meanivhile, aivards ￿anted during the >ear increased froni £10.039.761 to £25.805.095. Grant commiunents diie ivithin one year inereaged to £1 1,350,544 (2019120: £8,707,901). Gront commitments due aftEF O]1 year were £10.054,880 (2019120.. £7.991,883). The closing net asset p)sition has increased io a record £304,658.471 {2019r20.. £251,309.431). Investment gains of £66,201,534 (2019r20.. losses of £2?.861,438) %¥ere recotded ID Ihe )ear 2020,Ql. The strong improvement in investment perforrnance in the year ivas the resulr of a ix)unce back after the reduct10115 in value recorded ￿ the ¢nd of the previous year du¢ lo the impact of the Covid-19 Pandemic on the econo]ny at that yt4r end. There are no testrictions on the charity's poiver lo invest. It is the policy of the Trustees to manage the corpus of The S*ve Morgan Foundation on ihe basi5 of a relatively loiv level of risk. balancing capital growth and income requirement% in order to sustain the corpus in the long term and to proyide an adequate Teliable income stream to serve the charitable puqx>ses on a day to day basi5. PROCEDURES.AND POLICY FOR GRANf MAKING The Trusttcs usually meet bi-monthly to eonsider 1Vh￿ grnnis they Ivill make and to revKew aE]y feedba¢k th¢}. hav¢ r¢ceived. Cjranls arc onl}. aivarded upon agreemenr by rhe Trustees and all siiccessful ￿elPlE[i(S tnU51 nieet the 5p¢cifi objcctives of the charity. Usiially they are visited by one or more of the Trustees, and a detailed report 15 prepared for the Board of Trustees to revieiv before the grdlll 15 approved. Though the Ttustees make some grant5 of a lirniled Size ivith no formal application. they norn]ally ask invited orgaiiisations to siibniit a fornial application sa}'ing holy the funds i¥'ould be used. i%'hat ivould be achieved, and providing references ivhere approptia(e. The Trustees have a policy, ilhich is communicated to all beneficiarie& that the). oiily niake grants that meet the condition5 specific ivtthin (he final offer letter approved by the Tnistees. RESERVES POLICY li is tl)e policy of tlie charity to m&¥iTnise urwe5tri¢ted funds, which are the free reseryes of the charity. to ensutt sufficiei)t fimds are available to cover aii'ards payable, sUPtK)n and administratioii costs for the foreseeable fiihire. Th¢re 2r¢ llo reslri¢t¢d res¢rv¢s held at present, unrestricted reserves at 2020121 aniount to £304.658,471 (2019ll020= £251,309,431). A laTge surplus of funds is held. substanlially as a Inaiier of p)licy. There are niaxiniuTn or Tninimum leyel of r¢serv¢s required to be held ai an), lime. The income derived iherefrom. and the c4)ilal accretion thereto fijnd the expendimre and maintain the co￿US to serve likeiiise in future wiods. THE STEVE MORGAN FOUNDATION TRUSTEES, REPORT (CONTINUED) RISK MANAGEMENT The Trusiees have considered the operational and business risks iyhich the Charity faces and confm that they have established systems to mitigate ihe significant risks. The principal risk faced by The Sieve Morgan Foundation 15 volaiility in the v8lue of investments held ii'hich Could ektK)se the Charity (o loss of income. The Trustees ivork closely Iviih the investment managers and the investrnent reports are closely monirored io track fluctuations and to ensure investmeDt decisions are in line ivith the objeciives of the Chariry. PLANS FOR THE FUTURE The T￿Stee$ intend to continue providing aii.ards %¥iih a vieiv (o improving the life chances of those suffering from disadvantage or disability, mainly in the Metseryside. Cheshire and North Wales areas in line ivith the objectives of the Chartity- It is presently expected thai during 202 Ir2022 the level of grants aii'arded ivill fall beloiv last year's record levels as ive aitn to 5UPPOrt chatilÉes in ihe post Pandemic period. APPOINTMENT OF TRUSTEES Thus far Trustees, other than the originatin(T Tnjstees, have been appointed on the basi5 of a long-standing knoivledge, shared by the existing Trustee%, of the app)intee in relation to her or his integrity and probity and proven record in herthis chosen professional career. It is expecied ihat the p)licy attaching to appoint￿entS 11.ill continue in that vein. The background of each appointee is such (hai fornlal (rdining is not required. There are no fonnal induction activities undertaken for each neii'ly appointed Tnjsiee. KEY mANAGE(￿ENT PERSONf4EL REMUNERATION The Trllstees consider the key managemeni personnel olthe charity to be the Board of Trustees. The Trustees are ¢harge of directing and controlling the charity and Nnnino and operdting the charity on a day to day basis. All trnstees give their titne freely and no trustee remuneration ivas paid in the year (2019r20.. £nil). RELATED PARTIES The TrusÉees are reqilired 10 disclose all relevant interests and, in accordance ivith the charity's policy. Ivithdraiv from decisions ivhere a conflici of interest arises. GOING CONCERN After making enquiries. the Trnstees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future Ibeing at leasi 12 months from the date of signing the accounts), due to the level of net assets. Accordingly they eoniinue io adopt (he going concem basi5 in preparing the fthancial statements. Further details regarding the adoption of the going concern basis can be found in noie l of the financial 5tateinents. AUDITOR Deloitte LLP have expressed their ivillingnes5 to continlle in office as the charity's auditor and a resolution to r¢- appoint them ivill be proEx)sed at the forthcoming Annual Generdl Meeting. stees, Rep)rt iyas approved by the Board and signed on its behalf by= S P Morgan A M Leivis Date.. THE STEVE MORGAN FOUNDATION TRUSTEES, RESPONSIBILITIES STATEMENT The trustees are responsible for preparing the Trusiees. Annual Report aTtd Ihe f￿ancial siaiemenis in accordance ivith applicable laiv and United Kingd(Trm Accouniing Slandards (United Kingdom Generally Accepted Aecounting Practice), including FRS 102 "The Financial Reponing Standard applicable in the UK and Republic of Ireland" The laiv applicable io Charities in England and Wales require5 the trustees lo prepare f]nancial statements for each F￿ancial year ivhich give a trne and fair view of the slate of affairs of the charity and of Ihe incoming rcsources and application of resources of the charity for that period. In preparing these fLnancial slatements, the rNstees are required to.. select silltable accounting wlicies and then kpply ihem consistenrly. observe the Infthods and principles in the Chariiie5 SORP- ake judgments and estimates that are reasonable and prndent. state ivhether applicable accounting standards have been followed; altd prepare the financial staternents on the going concern basis Unle￿ it is inappropriate to presuine that the chariry ivill continue in business. The Irusiees are responsible for keeping proper accounting records that disclose ivith reasonable accuracy al any time the fmancial posiiion of the charity and enable them io ensure that the financial statements comply with the Charities Act 201 l and the Charity (Atcount5 and Reports) Regulation5 2008 and the provisions of the trust dttd. They are also responsible for safeguarding the a%sets of the charity and hence for iaking reasonable steps for the prevention and detection of ftaud and other irregularities. The trnstees are responsible for the maintenance and integrity of the charity and fm8ncial inforn]ation included on Ihe charity's ivebsite. Legi51aiion in the Uniied Kingdom 8ov¢rning the preparation and dÈs5eTnination of financial siatements may differ froTn legislation in other jurisdictions. THE STEVE MORGAN FOUNDATION Independent auditor's report to tbe trustees olThe Steve Morgan Foundgtlon Report on the audit of the fin8nci41 stgtements Opinio In our opinion the fmancial statements of The Sieve Morgan Foundaiion (the'charity}'. giv¢ a tni¢ and fa￿ view of the Sta￿ of the charity'5 affairs as ai 31 March 2021 amd of its incotning r¢sourr¢s and application of resources for th¢ year then ended- have been properly prepared in accordance Kvith United Kingdom Generally Accepted Accollnting Prnetiee including Fi[￿nclaI Re￿rting S￿ndard 102'1kn¢ Financial Reporting Standard apPli￿le in the UK and Republic of treland"; and have been prepar¢d in accordance with the requirements of the Chtirities Act 2011. W¢ have audited th¢ fwancial ststements ivhich comprise-. the Statement of Financial Activities- the Balance Sheet. the Cash Flow Siaiement: and the related note5 1 to 17 The f￿ancial repjrtillg fram¢ivoTk that has been applied in their pre[￿￿tiOn is applicable laiv and United Kingdoln Accounting Standards. including Financial Reporting Swidard 102"The Financial Reporting Standard applicable in the UK and Republi¢ of Ir¢]and" (United Kingdom Generally Accepted Accounting Practice). Basis for opinio We conducted our audit in accordattce with International Standard5 on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibililies under those standards are fi￿her described in the auditols responsibilities for the aiidit of th¢ f￿ancial State￿entS section of our report. We are independent of the Chariry in ac¢ordan¢e with th¢ ethical requirements that are relevaDt tr) our alldit of the f￿ancial stateinenr5 in the UK. including the Financial Reporting Council's (the FRC'S) Ethical SL*ndarl and we have fulfilled our other ethical responsibilities in accordance with Ihese requirejnents. We believe that the audit evidence ive have obtained is sufficient and appn)pria* to provide a basis for our opinion. Conclusions r¢l#tiDg to golng colltern In auditing the financial statemenls, we have concluded that the trustees, use of the going concern basis of a¢counting in the preparation of the r]nancial statements is appropriate. Based on the woik ive have performed, Ive have not identified any material uncertainlie5 relating to events or condition5 thai, indivfftdually or collectively, may cast significani doubt on the charity's ability to continue as a going c4)ncern for a period of at le￿t tsyelve months from ivhen the financial statements are authorised for issue. Our rE5ponsibiliiies and the respon5ibilitie5 of the tntstees with respect lo going conc¢rn ￿ described in the relevant sections of this report. Other iDformatio Ihe other infoTmation comprises the inforn]8tion in¢lllded in the amiual report otherthan the financial stateinents and our auditor'5 report thereon. The tTUStees are responsible for the other infornjation contained within the ar￿Ual report. Ihir opinion on the fll)ancial statements does not cover the other infomhation and ive do not express any forni of assurance conclusion thereon. Our responsibility is to read the orherinforniation in doingso, considerivheiherthe other infonnation is materially inconsistent ivith the financial sthtem¢nts or our knoi%ledge obtained in ihe course of the audit, or othenvise appears to be materially missraied. If ive identify such material inconsi51encie5 or apparent rnatLYial misstatements, Ive are required io detem)ine whether tliis gives rise to a rnateTi4tl missiaiement in the F￿anCial statements themselves. If. based on the ivork ive have perfornied, we conclude thai ihere is a material mi5Statement of this other inforniation. we are required to report thai fact. We have nothing to report in this regard. THE STEVE MORGAN FOUNDATION Re5POll5ibilities of trust¢f5 As e.xplained ￿ore fully in the trust¢¢s' responsibilities statemenr. the Mistees (who are also the trustees of the cliarity for the pu4KJse of chaTity laiv) ar¢ r¢sponsible lor the preparnion of ihe fina]icial statements and for being Satisfied that they give a true and fair view. and for such internal control as the tmstees deterniine is necessary to enable the preparation of fmancial slateFTrents that are fr¢¢ from material misstatemenL whether due to fraud or e]TOr. In preparing the fmancial siaietneDt5, the trustees ar¢ responsible for assessing the charity's ability to continue as a going concern, di5closiD& as applicable, matter5 related to going concern and using the going concern basis of accoiinting unless the tNstees either iniend (o liquidate the cljarity or to cease operdtions. or have no realistie alternative but to do 50. Aiiditor's responsibilities for the audit of the financial statetTheTrts We Iiave been appointed a5 aiiditor under srftion 144 of the Charities Act 2011 and ￿port in accordance ivith the Act and relevant ￿gUlationS nTrad¢ or having effect theTeunder. Our objectives ar¢ to obtain reasonable assurance about whether the f￿ancial 5tatemenls as a whole are free from mdlerial Tnisst3temen¢ ivheiher due to fraud or error. and to issue an auditols report thal includes our opinion. Reasonable as5uranoe is a high level of assurance, but is nol a guarantee that an audit conducted in accordance with ISAS (UK) will dlivays det￿t a moterial misstaiement ivhet] it exists. MsS5taternents can arise from fraud or error and are considered rnalerial if, individuall) or in the aggregate, they could reasonably be expected to influence the economic decisions of USETS taken on the basi5 of these r]nancial staiements. A further description of our responsibilities for the audit of the fmancial staiements is located on the FRC'S website at.. Iwiviv.frc.org.uklauditor5respon5ibiliti¢s. This dwripiion fornis part of our auditor's report. E%tent to which the audit was f0115idered cap¥bl¢ of deteeting irregularities, including fraud Irregularkties, including fraud, aTe instances of non-compliance with laivs and regulaiions. We design proc£dures in line iviih our reS￿A51b11l1l¢5. Outlined abov¢, to detect tnaterial misstaiements in respect of irregularhtie4 including fraud. The extent to ivhith our procedures are capable of deieciing i￿¢g￿larItIes, including fraud is detailed b¢loiv. We considered the nature of Ihe charity's industry and its control environrnenL and reviewed the charity'5 documentation of their policies and procedures relating to frditd and compliance ivith laivs and regulatiotts. We also enquired of manageinent about thetr ideniifitaiion and assessment of the risks of irregiilarilies. We obtained an undersianding of the legal and regulatory framtivorks (he charity operdtes in. and identified the key laws and regulations that: had a direci effect on the derem)ination of material amounts and disclosures in the f￿anCial stalemenis. These included the UK Charities Act,. and do not haye a direci effect on the r]nancial 5tatetn¢nts but compliance with ivhich may be fundamental to the charity's ability lo operate or to avoid a rnat¢rial penalty. We discussed among the audit engagement tearn warding th¢ opporthnities and incentives that may exist witliin the organisation for fraild and ho¥¥ and where frnud Thight [￿cUr in th¢ fmancial sthtemenis. As a Fe5lLIt of perfomiing the above. Ive identified the greatest potential for fraud or non-compliance ivith laiys and r¢giilations in Ihe folloiving area. and our specific procedures performed to address it are described ￿10%￿.. recognition of income in th¢ correct accouiiting peri(Kl. To address rhis risk Ne tested a sample of income either side Df the balance sheet date to 5UPPOt1iJig evidence of Loreemenis of ininutes, to evaluate ivheiher the income has been recogEJised appropriately. ITL common ivith all audits under ISAS (UK). Ive are also required to perfomi specific procedures to respond to th¢ risk of Management override. In addressing ihe risk of fraud (hroiigh managemeni override of conlrols. Ive a8ses5ed the design and implementation of conttDls over the assessment and approval of grant aivard%: tested the appr9priateness oljoiwnal eniries and other adjustments,. assessed ii'hether the judgemenrs Iiiade in making accounling estiniates are indicative of a wteniial bias" and evaluated the busin¢ss rationale of any significaiit transactlOn5 that ar¢ iinusiial or oiilside tlie nomial coutse of business. In addition to the a￿Ve, our pr￿edureS to respond io the risks identified included the follo1￿Ing.. revieiving fmancial statemeni distlosirt5 by testing to suproning documentation to a55ess complian¢e ivith provisions of relevant laivs and regUl￿lOnS described as having a direct etfect on the f￿ancial statenients. THE STEVE MORGAN FOUNDATION perforniing ￿alytICal procedwes to idenlify any unusual OT wiexpected r¢lation5hip5 that may indicate risks of material misstatement due to fraud. enquiring of Tnanagement conceming actual and potential litigation and Claims, and instances of non. CO￿p]lanCe ivith laivs and regulations. and readtng minutes of mtttings of ihose charged with governanc¢. Report on other legal And regulatory requirements Matters on which we are requirtd to report by exceptio Under the Charities (Accounts and Rewrts) Regulalions 2008 we are required to report in respect of the folloiving matters if, in our opinion: the inforniation given in the f]nanGial s18t¢fflent5 is iDconstslent in any material respect with the trustees, report. or sufficient accounting records have Dot been kept" or the fmancial statemenrs are not in agreement ivith th¢ a¢counting records and rebjms. or ve h8v¢ not received all the inforniaiion and explanations we requir¢ for our audit. We have nothing to re￿)rt in respect of these matters. Ust of our report This report is made solely to the chariry's tDJStee5. as a b(Mly, in accordance with part 4 of the Charities (Accounts and R¢ports) Regulations 2008. (￿r audil work has been undertsken so that we rnight state to the charity's trnstees those matt¢rs we are required to slate to ihem in an audiior's reEXTrrt and forno other purpose. To the fullest extent perniitted by laNv. Ive do not accept or assume responsibility to anyone otherthan the chariry and ihe chaxity's ttuslees as a body, for our audit ivork. for this reporL or for the opinion% w'e have fomied. Deloitte LLP Sta￿lory ALiditor Leed5, United Kingdorn 10 October 2021 Deloitte LLP is eligible for appoinlm¢nt as auditor for the charity by virtue of its eligibility for appctrintmeni as Audit of a con)pany und¢r serlion 1212 of the CompaDies Act 2(K)6. THE STEVE MORGAN FOUNDATION STATEf*tENf OF FINANCIAL AcrtVITIES Year ended 31 March 2021 Total funds Total Unrestricted fllnds Unrestrieted fuDds Rutrleted furtd$ 2021 2021 2021 2020 Note INCOME FROM: Donations 111,877 10.000,000 10.111,877 2.506.599 Inv¢stmenlS 3.851.572 3.851.572 9.707.826 TOTAL INCOME 3.963,449 io.000.IN>o 13,963,449 12,214.423 EXPENDITURE ON: Raising futjds Charitsble activities 808,308 16.007,635 808.308 26.007,635 305,539 10,316.897 10.000.000 TOTAL EXPENDITURE 16.815.943 10.000,000 26,815.943 10,622,436 Net (expendltureyin￿￿c before investment (l2,852.494) (12.832,494) 1.591.989 Gainsl(Losses) on investment a￿ets 12 66201,534 66201,534 (22,861,438) Net incomel(¢xpense) (or the year 53349.040 53,349.040 (21.269,449) NET MOVEMENT IN FUNDS 53.349.040 53.349,040 (21269.449) RECONCILFATION OF FUNDS: TotaI funds brought forward Net movement in fiJrLds for the year 251.309.431 53,349.040 251.309,431 53.349,040 272.578.880 (21,269,449) Totsl fiLnds catTied forward 304.658,471 304,658,471 251,309.431 ere were no other recogtLised gui￿5 or losses other than those listed above and the net incom¢ for the yeAr. Lll income and expendi￿re derive5 from continuing a¢tivities. THE STEVE MORGAN FOUIYDATION BALANCE SHEET As at 31 March 2021 2021 2020 Note FIXED ASSETS Investtnents 12 235.012.858 137.470,468 CURRErrf ASSETS Debtors Cash at bank and in hand 13 2.048 91.058.290 11,407 130,544,440 91,060.337 (11,359,844) 130,555.847 (8,725,001) CREDITORS: amounts falling due Tvithill one year 14 NET CURRENT A&SETS 79,700,493 121,830,846 TOTAL ASSETS LESS CURRENf LIABILITIES 314,713,351 259.30I.314 CREDITORS: amounts falling due after more than One year 14 (10,054.880) (7.991,883) T ASSETS 304.658,471 251.309,431 FUNDS Unr¢stricted fijnds 304.658.471 251.309,431 These ftnancial statements of The Steve Morgan FOund￿lon Charity Number 1087056 were appn)ved by the Board of Trnsttts and authorised for issue on J(rk Th¢y were signed on its b¢half by.. Morga Chairrnan A M L¢wis Hon. Treasurer 10 THE STEVE MORGAN FOUNDATION CASH FLOW STATEMENT Year ¢nd¢d 31 March 2021 Note 2021 2020 Net Cash flows Crornl{used iii) operating *ctii'iti 17 {11,996,867) (3,354,136) Cash Ilows from investing activili¢s: Interesi and dividends ieceived Proceeds from sale of irnvesttnenls Purchase of investtnents Movement in ¢ash held by investment managers 3.851,572 9,402,287 2.252.675 133,759,880 132.000,000) (100.075,000) (1.593.531) (549,629) Net ¢Ash flows (used in)Ifrom inves¢iD£ activities (27,489,284) 42.537,538 Net (d¢¢rt&$eyiN¢rease in cash and cash equii'aknts (39,486,150) 39.183.402 Cash ¢o$h ¢quivalenls at beginning ofyear 130,544,440 91.361.038 Cash and eash equlvglenls at the ¢nd of the year 91,058,290 130,544.440 THE STEVE MORGAN FOULYDATION NOTES TO THE FINANCIAL STATEMENrs Year ended 31 March 2021 ACCOUNTING POLICIES Charitabk status The Steve Morgan Foundaiion is a public benefit entity and a registered charity. The registered office is given on page l. Basis of accountithg The financial statement% are prepared under the historical cost conyention, as mi)dified by the revaluation of investments, and in 2ceordance with the Stsiement of Recommended Practice "Accounting and Reporting by Charities" applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic ofireland (FRS 102) and the Charities Act 2011. The PFiAcipal accouniing Folicies are set out below. Preparation of financial 5tatemtDts- golng coneern basis The charity's activities. together with the factOTS likely lo affect its future development, perfom)an¢e and position are set out in the Trustees, report which also describes the fmancial position of th¢ ¢harity including its cash. inve5tm¢nts and reseTres policy. The chariry, forecasts and projections. tsking a¢¢ount of reasonably possible chang¢s in donations and invesrmenl incorne. and including ¢onsid¢ration of the impact of Covid-19, shoiTr that the charity 5bould be able to operate i%ith the current l¢v¢l ol reserves it has. The Trustees have a reasonable expectation ihat the charity has adequat¢ resource5 to continue in operational exi5tellce for the foreseeable future, which includes the ￿riod of 12 months fro￿ the date of the5¢ signed accounts. The Trusiees, therefore, consider that the going concern assumption is an appropriate basis on which to prepare these fmancial statements. Income Income is recognised ii'hen the Charity has entitlernent to the funds, any perforniance Conditions attached to the item(s} of income have been rnet, it is probable ihat the income ivill be r￿e1Ved and the atnount can be measured reliably. Dtpnations Consis15 of donations and similar income resources. They are included in the accounting period in ￿hICh they are Tectivable. iTr.hich is when the charity becomes entitled to the resource. Some services have been provided by Bridgemere UK PLC. a company of ￿h1¢h four of the mistees are directors. No adju5ttnenÉ has been made to reflect this as it is not Frf)ssible to quarttify the value of such services. InveslmeKI in¢ome Investment income is accountrd for wh¢n receivable. Donatgdgood¥ apFdservices Donated professional services and d¢)naied facilities are recognised as income when thE charity hascontrol over the item, any conditions associaied w'iih the donated item have been Tnet, the receipr of economic benefit from the use by the charit>, of the item is probable and that economic benefii can be measured reliably. In accordance iviih the Charities SORP (FRS 102), general volunteer time is not re¢ognised. There are no volunteers other than the trnstees of the Charity. 12 THE STEVE MORGAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 March 2021 ACCOUNTING POLICIES (CoDtin￿t￿) Expendilure Expenditure is recognised once there is a legal or constructive obligation lo mak-e a paymenl to a third party, li is probable thai settlement ii'ill be tequired and the atnounl of the obligation can b¢ measured reliably. Expenditure is classified under the ftslloivin(p activity headings-. Churil(7ble llctivili￿- ÉNt7rdpaymenls Aivard payments are accounted for i>nce the Foundation ha5 made an unconditional commitment lo pay the grant and this is coltununicaled to the beneficiary or the grant has been paid. Ivhichever is earlier. Where an aivard is conditional and Compliance is iyithin the Control of The Steve Morgai) Foundation. the aivard is not ￿cogniSed until the conditions are met. Wherean aivard is Condiiional and outside the control of The Sieve Morgan Foundation. the aivard is recO￿ls¢d and accounted for in the same way as an unconditional aivard. Siipptprt CO515 This includes those funciion5 that assist the ivork of the charit}, but do not directly undertake charitable activities. Support Costs include back otTice COS￿ finance. ￿rsonnel. payroll and govetnance cost5-. Rai5iiigfunds This includes all expens¢s r¢lating ¢0 inyesttnent management. Fund accounting The chariry, holds unrestricted fun(Ls representing unrestrieted net income 2nd net recognistd gains which are expendable at ihe discretion of the trnstees in ￿rthtranee to the objectives of the charity. JDvestments Realised and iintealised ¥ain5 and losses are included in th¢ stateinenl of f￿anCIal activirie5. Investments are stated at market value ai the balance sheet date and are derived froni inv¢5tm¢nt assets in th¢ Uniied Kingdom. Social Investments The Charity hold5 a social inyesiment properry to luifil its charitable objectives. The s(Kial investment property is staled at nei book value, being cosi net of depreciation and any provisions for impairtjient. No depreciation is provided on the social investment due to the anticipated high residual value which would result in inirnatei'ial depreciation for the a&ser. Employee benefits The Charit). participates in a money purchase pension arrangement. The atnount charged to the statement of fiitqnctal actiyiiies in respect of pension costs is the conliibulion payable in the year. Fin%Dcial iD51rU￿enl5 Financial assets aiid f￿anCial liabiliiies are recognised ivhen rhe Charity ￿cOmeS a party io the ctsntractiial provisions of the inStn￿￿ent. All fmancial asseis and liabiliiies are initially measiired at ttansaciion price. The charity only has financial asseis and financial liabilities of a kind that qualify as basic financial instrnments. Basic financial insirnments are initially recognised at trdnsa¢tion value and subsequently n)easured ai their settlement value. Trdde and other debtQT5 are recogni5¢d ai the wilement amounr due after any trade discount offeied. Prepaymcnts are valued at the amount prepaid nei of an}, Irade discounts due. Casli at bal￿ and cash in ha])d includes cash 2nd short term highly liquid hnve4tments %viih a Short manirity of ihree months or less frotn the date of acqiii51tion or opening of th£ dcposil or similar accoiini. Credilors and provisions are re¢ognised ivher¢ the Charity has a present obligaiion resulring froni a past eveiit thai ivill probably resiilt in the transfer of fi]nds to a third party, and ihe amount due io settle the oblig £50K Advance Brighier Futures All Together Noi¥ Croxteth Family matters Deysbrook Villag¢ Centre Denbighshire Home-start Llla-l ogether 'wiiily and Trriends Footsteps for Families Imagine If Trust Innovate Volunieering The Josliiia Tree KI￿ Inspire Life Yoiith Hub .Mencap Wirral Neuro Musciilar Centre Neiiro Musciilar Centre The Opening Doors Project Rape and Sexual Abuse Supprt Cenire Rural Coiiiiy Community Car Scheme Same Bul DiffeTeni Social Mobiliry FOund￿lon 61.320 69,167 89,624 57,000 60,0(K) 72,729 72,440 54,600 125,000 55,000 90,000 144.958 53,0(K) 84,0(rf) 53,000 50,000 60,000 89,000 50,856 74,000 75,000 15 THE STEVE MORGAN FOUNDATION NOTES TO TEIE FINANCIAL STATEMENTS (CONTIIYUED) Year ended 31 March 2021 GraDtS to Gr811ts to institutiolls in5titutiot]5 2021 2020 St Andrews Community Netsvork The Aloud Charity The Venture (Wrexham) Wiral Churches Ark Project YMCA Creive Y-Kids Education 12 {2021), 43 (2020) Regional Grdnt5 under £50K. 90,000 90.000 60,000 66,000 90.000 90.000 427.982 171.775 Subtotgl 37fi733 2,249,718 VID-19 EMERGENCY FUND GRAf*TS >£50k Bradbury Fi¢ld8 Centre 63 Crest c￿Operative Healthbox CIC JDRF Maggies Centre Neo Community Passion for Learning Positive Futures Tomorroiys Women Wirrnl Whitechapel Centre 445 (2021), 108 (2020) Covid-19 Grants under £S0.(MJO 78,(M)O 63,898 60,(M)O 29,760 150,000 50,IMM) 76,040 138.357 75.825 74.134 50,000 1.140,706 3.595.119 Subtotal 4283,773 I J70,466 MSF ND GRANTS >£50k ADHD Foundation Age Concern Cheshire All Ivgeiher Noiv Alt Valley Community Tn￿t Barnstondale Centre Beechley Sthbles Bradbury Fields Br¢ckfield and North Everton Neighbourtlood Council Cheshire AlltTsm Pr2Ctical Support Cheshire Without AbLtse Cheshire Young Carers Chester and District Fede￿IOn of rhe Blind CLIC Sargent CommLinity By Nature Compass Counselling Croxteth and Gilmoss Comrnunity Federntions Cycling Project Everton in the Comtnunity Fun 4 Kidz Ga￿ton Advenmre Healthbox CIC 196,810 180,(M)O I10,(M)O 59,796 147,697 ,(M)O 76,000 94.506 103.450 115,000 58,435 116,974 60,(N)O 69,646 60,(M)O 168.894 147.842 1,500.000 100,000 50.000 293.476 16 THE STEVE MORGAN FOUNDATION NOTF.S TO THF. FINANCIAL STATEMENTS (CONTINUED) Year ended 31 March 2021 Gr8llts to Grant5 to inslitulioiis 111stilutions 2021 2020 Homebaked Bakery Homestart Knowsley Homestart Wirral Imagine IF Trnst InvolY¢ Northwest JDRF 80,OOD 148,698 104,136 120,000 249,530 3,000,000 114,136 55,954 134,000 316.332 1.472,440 68,600 50,000 62,000 3.(H)O,000 80.000 52.454 83,000 79,858 89,814 329.724 120,000 104,0(M) 85,257 266,228 Journeymen Jiimp Childrens Charity Kensington Fields Comrnunity Association Listening Ear Liyerpool FC Foiindation Liyerpool Lighthimise Liyerpool Six Community Association Love Jasmit)e Maggies Cancer Caring Centres Marybone Youth and Community Association Merseyside Domestic Violence Service Neo Community Netherley Youth and Communiry Initiativ¢ Neuromuscular Centre P￿slon for Learning Priority Youih Project Public Services Lab Rainboiv Hub Right to Succeed Rotunda Inclusive Hub Ro￿nda Ltd Shaftesbury y￿1th Club Si Andrews Comrnunily Slick N Step Target Football Teardrops Supportitl8 the Homel¢ss The Big Help Projecl The Florrie The Hope Centre The Inclusion Neiwork The Joshiia Tree The Open Door Chatity The Paul Lavelle Foundation The Pon Grocery The phoeni￿ Foundaiion The Rethr The Way Yoiith Zone Tiin Parry Jonatlian Ball Peace Foundation Too Glwd to Waste Torrington Drive Commiinity Centre Tranmere Rovers in the Community Tixnsfonning Choice Triple C Vauxhall Con)munity Veniis Working Creatively ivith Young Women Wirral Youth Zone cfhe Hiye) WiTral Meiicap 92,0(N) 100,O(M) 103,?83 82,698 248,000 59,960 60.000 60.000 51,480 83.496 80,000 69,408 225,000 77,558 924,600 200,000 146,950 120,394 50,000 145,762 129,079 84,140 120,000 135,000 200,000 69,463 17 THE STEVE MORGAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (coNrih'uED) Year ended 31 March 2021 Grants to Grants to institlltions institutions 2021 2020 Women's EnteTprising Breaktbrough Women's l ￿hnolOgY Training Zoe's Place Trust 52 {2021) DCMS Grants under £50K 79,890 371,180 50,876 1.194,044 Subtotal 19.655,063 STrIILEY BUSES > £50K STnil¢y Buses 0 {2021), 9 (2020) Smiley Bus transactions under£50K (87,730) 232,931 Subtotal {87.730) 232.931 DISCRETIOliARY CRANT > LWk- Paid JDRF 18 (2021), 33 {2020) Discretionary Grallts under £50K 50,000 158,821 74,242 Subtotal 74,242 208,821 Totgl 25,676,202 9,595,216 All grant awaTd5 were in the pursuit of the Charlty's objectives as set out in the Trnst¢es' teport on page 2. •lncludes restricted granls of £9,814,279 *¥Grants reallocated to fomi part of the covid support progrdmme. ANALYSIS OF SUPPORT COSTS Unrestricted Res¢ri¢ttd F￿ndS Funds 2021 2020 PaiToll Office expenses Bank charges Govemance 136,723 48.998 136.723 54,438 1,780 9,599 154,992 102,080 833 19.231 5,440 1.781J 9.599 Total 16,819 185,721 202,540 277.136 Support costs are allocated in full to grdnt funding activities on the basi5 tliat this is t])e key activiry iuidertaken by the charit).. Iviih 5UPPOrt costs being direcil). linked to these activities. 18 THE STEVE MORGAN FOUNDATION NOTF.S TO THE FIISANCIAL STATEMENTS (CONfiNUED) Year ended 31 March 2021 NET INCOME FOR THE YEAR 2021 2020 Net income is stated after chatgin8". Auditor's remuneration: - Fees payable to the charily's auditor for the audit of the harity's annual financial statements 9,599 19.231 Fees charged by the charity'5 auditor for the audit of the ¢harity's annual [￿anCIal statemems is £10,000(2020: £9,600). 10. ANALYSIS OF STAFF cosrs, TRUSTEE REMUNERATION AND EXPENSES, AND THE COST OF KEY MANAGEMENT PERSOIYNEL 2021 No. 2020 No. The aierage monthly number of employe¢5 Was: Support 2021 2020 Their aggregate remunerdtion tomprised: Wages aiid salaries Social securit}, costs Pension costs 81,807 37,872 17.044 89.527 44,070 21,395 136,723 154,992 The nuinber of Charity eEnplo?"EeS i¥h05e emoluments, excluding pension contributions but including benefits in kind. ii'ere in exce55 of£60.(MMI iYa5 £nil (2019r20.. £nil). Truste¢5' R¢muner81ioii Trustees ￿ceiVed no remuneration and were not reimbursed for any of their expenses during the year (2019120.. £nil). There are no oiher key managemenr personnel for The Steve Morgan Foundation. 11. TAXATIOIY The Charity is a regislered chgrit). and does noi trade. It is not liable to tax on any surplus arising. 19 THE STEVE MORGAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 March 2021 12. FIXED ASSET INVESTMETr4TS RegLstered listed investments Social iTrve5tmeDts Total Markd valuelNet book value brought foThvard at I April 2020 Additions Disposal proceeds Net investment Gain Movements in cash 137215,688 32.1)00,O (2.252,675) 66201.534 1,593.531 254,780 137,470.468 32,0(MJ.000 (2.252,675) 66.201.534 1.593.531 Market valu¢Net book valu¢ ¢arried forward ￿ 31 March 2021 234,758,078 254.780 235.012.858 Historical cost at 31 March 2021 196,082,471 254,780 196.337,251 2021 2020 Market value ADalysed between: Investments Cash held by investment mallagers 232,016,913 136.068,054 2.741,165 1,147.634 234.758,078 137,215,688 13. DEB TORS 2021 2020 A￿Ou￿t5 fallill8 due within one year". Prepayments and accrued income 2.048 11,407 14. CREDITORS 2021 2020 Amounts falling due iyithin one year: AccNals for grants payable Accruals and defetted income 11,350,544 9,300 8,707,901 17,100 11,359,844 8,725,001 Amounls falling due alter more than one yegr: Accruals for graiits payable 10,054,880 7,991,883 20 THE STEVE MORCAN FOUNDATION NOTES TO THF. FINANCIAL STATEMENfs (CONTINUED) Year ended 31 March 2021 15. EMPLOYEE RETIREMENT BENEFITS Defined Contrib￿lI0n sChe￿e The Charity operates a def]n¢d contribution retiremeni benefit scheme for all qualifying employees. The Charity's contribution to the %hem¢ in the year ilas £17.044 (2019120: £21.395}. 16. RELATED PARTY TRANSA(TIONS The Trustees are reqllired to disclose all relevani inieresls and, in accordanc¢ ii'iih the charity's policy, vithdTaii' frorn decisior15 where a conflici of interest arises. Sotne 5ervi¢es hav¢ be¢n provided by Bridgemere UK PLC. a cofftpany olivhich four of the trustee5 are direciors. ND adjustment has been made to reflect ihis as li is not ￿sSIble to quantify the valu¢ of such s¢rvice5. 17. CASHFLOW STATEMENT 2021 2020 Reeonciliation of net incom¢/{expenditure) to eash generated fro￿/(Used in) op¢r4lions: Net lineome/{expense) for the year 53,349,039 (21,269,449) Adjusiments for.. Iniere%t receivable (Gain)ILoss on investments (3,851,572) (9,402287) (66.201,534) 22,861,438 Operating cash flow before movement in ivorking rapi￿1 116.7(M.067) (7.810298) Decreasel(In¢rease) in debtor5 Increase in creditors 9,359 4.697,841 (11,407) 4,467,569 Cash generated froml{ustd in) operating ac¢ivitie5 {11,996,867) {3,354,136) 21