Registered Charity No. 1087056 THE STEVE MORGAN FOUNDATKON Annual Report and Financial Statements Year ended 31 Mar¢h 2022 THE STEVE MORGAN FOUNDATION CONTENTS Page Offieers and professlonal adviset Trustees, report Trustees. responsibilities stateme￿1 Independent auditor's report Siatement of financial aetii'lties Balance sheet Cash floiv statement io Notes to the fillaneial statements IA THE STEVE MORGAN FOUNDATION OFFICERS AND PROFESSJOINAL ADVISERS CHAIRNIAN S P Morga HOTraOIL4RI' TREASIIRER A M Leivis TRUSTEES S P Morgan S J Morgan V W Fairclough R E Walker A M Leii'is J R C Masters B L Claik HONOIL4RY SECRETARI, V W Faiiclough ADIIINISTtL4TOR J Hatris ANKERS Barcla>'s Bank PLC 3 Haidiiian Street Spinningfield5 Manchester M3 3AX AUDITOR Deloitte LLP Statutory Auditor I City Square Leeds Ui)ited Kingdom LSI 2AL INI'ESThIENT P+lAN&lGERS Bairlaj's Wealtli ajid Iiivesiiiient Managernent I Churcliill Place Loi)doii E14 5HB Quilter Clieviot Ih)e Kingsii'ay London WC2B 6AN Baillic Ciiiford I Calion Hill Greenside Roiv Edinburg]i EHI 3AN UBS Wealth Management 5 Bi'oadgaie London EC2M 2AN Broivn Advisory 18 Httiiover Square l ￿ fI￿r London wis IJY REGISTERED & PRIINCIPAL OFFICE POBox3517 Chesi¢r CHI 9ET THE STEVE MORGAN FOUNDATION TRUSTEES* REPORT The t￿Stee$ present theirannual report on the affaits ofthe charity, togetlieriviih the financial staternenls and auditor's report for the year ended 31 fvfarch 2022. The financial stsien)ent5 have been prepared in accordance iviih the accounting policies as set oiit in note I to the accounts and compl) wilh ihe charity's tn]st deed. tlie Charities Act 2011 aiid Accounting alld Reporting by Charities- Statement of Recomn)ended PrdC(sce applicablc to cliarities preparing their accounts ivirh the Financial Reporting Standard 102 appIl￿ble in the UK and Republi¢ of Jreland. STRUCTURE, GOVERNANCE AND MANAGEMEF4T The Steve Morgwi Foundation is conSti￿red under 8 tnLsI deed dated 18 (ktober 2000 as amended by suppleniental deed dated 14 May 2(M)l. It is a regisiered charity no. 1087056. The biisiness of die Cliarity is condutied through a series olbi-rnonihly Trustees, T]ieeiiE)gs. where Trustee5 oversee tl)¢ grant making activitie% ensuring ihat these conlinue to support a ivide range of organisaiions benefitting the local coinmunity. Trustees are responsible for controlling e%penditute and also for the investmeni and reserve policies and with any associated de¢i5ions. Thiis far TTUSiees, oiher than the originating TNsiees. have appointed on the basis of a long-sianding knoivledge, shared by the eKi5ting Trusrees. olthe appointee in relaiion to her or his iniegrity and probity and proven record in herlhis chosen professional carttr. It is expected ihat ihe w)licy attaching io appointments ivill continue iii that vein. The background of each appointee is such that forn)al iraining is not iequireiL There are no fornial induction activities undertaken for each ne%vly appointed Trustee. The registere(Vprincipal office address is shoivn on page l. ORJECflVES AND ACTIVITIES FOR THE PUBLIC BENEFIT The Charity aims to change liyes by fvnding piojects ihat provide Practi￿1. iargeted support for people coping ivith disability, Tnental health problems. 50cial isolation. domestic violence, unemploymen¢ and poverty. The chgrity has unrestritted obje¢ts (o apply the CQTPU5 and income for all purposes i%'hich are charitable under the laiws of England and Wales from time to lime. Subject to an), designation or restriction ii.hich might be attached io any slim received by the chariry 10 be applied in implementation of irs obje¢tS, it ss rhe polic), of the Trustees to apply the incom¢ strea of The Sieve fvtorgaii Foiindation to cl]arities mainls operating in Merseyside, Cheshire and Norrh Wales in 5UPPOrt of yOLing people aiid othe[5 who are disadvantaged or itrho ate other%￿lSe ivorthy such ￿ in relation to the piirsuit of edLicational objectives. In all cases the finaiicial support of The Sre&e Morgan Foundation ivould be expected 'to make a difference,. Generally. an aivard payable ii'ould be made for such charithble pury)oses iyhere the prospective recipient had already established an initiative, albeit hoiyever Inodest. It is ihe policy of the Tnistees ro preserve ilie donations derived ivitliout designation or restrictiQll 85 a cory)ug to be enhanced by other like donations and subject to capitsl gain and capital Ioss f(Trr the provision of the income stream to be applied for the charitable purposes. Hoivever, the Ttustres vieiv their policy as one ivhich they have fiill di%retion to aineiid order to address changkng cir¢um51ances as they stt fit. In setting Ilieir objectives [￿d planning iheir ser%'i¢¢s. the TnLStees of ihe charity have given careful eon5ideration to the Cliarity Commission's generdl guidance on public benefit. The Sieve Morgan Foundation fi]nhers its eharirable purposes for the public benefit through its grant-lnaking policy Ivhi¢h aims at.. Providing filnding for small to mediurn sized organisations ivho a￿ addressing spe¢ific needs in Merseyside, Cheshire and North Wales. J"OCU55ing tiiiaiicial supwll niainly on those i%"ho ii'ork direcily iviiii cliildieii aiid r￿ll11les,. ttnd Supponing pi'ojects ivhich directly contribuie to the qualkty of life of the people in ihe region. ORGANISATION Mie Trustees ivho have served during the year and since ihe year end are sd oui on page l. Trn5tees are appoiiiied by the Board (jf Trustees in accordance ii'ith the Imsr deed_ There shall be ai least t])ree Ttustees, Ivho iKill be appointed by resoluiioi) of ilie Trustees R5 passed at aspecial iii¢¢iing. SI'O Ttusiee had ￿lY finaneial iiiieresi in the charity in Il)e current or prior yeai.. THE STEVE MORGAN FOUNDATION TRUSTEES, REPORT (CONTINUED) ACHIEVEMENTS AND PERFORMAf4CE The Charity lias al￿arded a record level of grants of £52,851,159 120)OQI: £25.805.095) in the last yeai. to organisatioms in liiie iviih their objectives, repiesenting the 5iwiifitant activities of il)e Charity- The Trustee5 have considered many applicalions for siipwrt, some of iihich did not fall iiithin the focus of the Charity. All grants aivarded are in accordance iiith fi]rthering the charitable objeciives of The Steve Morgan Foundatioi). Surpliis fiiiids continiie to be invested ivith the aim of generaling a(Iditional income Éo be used for grdnl Inaking activities ￿ oiitlined atY)ve. The Tn15tees have iTrot oiitlined key perforniance indicaioTS for The Sieve Mgrgan Foundation. Whilsi a targeted level of grant niaking is iisually seL during the }'eai under revieiv this ivas not ¢onsidered 10 be relevai)t due to ihe impact of the Diabetes UklJDRF Grnnd Challenge giani. i%hich. ai £50,(M)O,000, represented tlie largest Single graiil ever aivarded by the Foundation, and received ii'orldii'ide recogiiilion. Hoifvever, as a conseqiien¢¢ of the exceptional level of support given to local charities during the previous }'ear ihroiigli ihe niai¢h-fiJnded Departmeiit for Digital, Culture Media and S￿rt schenie, regional grants aivarded during tlie year of£1.824.711 (2020n1: £376,733) fell beloiv tl)e targeted level of £?,500,000. The Enable divtsion: fijnding specialist disability Equipment for people of all ages and our ivell-estc1blished Smiley Bus programme, aiyarded granis of £14?:508 dlhring the year (2020,.'21.. £41,163) and an additional £?20.551 of discretionary grants ivere aiyarded. A further £198.(M>O of graiits iver¢ ail'arded as Entrepreneur Aivards given oiit at oiir biennial conference. £50,277,573 ivas aivatded in total to Major Graiits. FINANCIAL REVIEW AND JNVESTMEKf POLICY The resiilts for the year ended 31 March 2022 are set out in the Statemeni of Financial Aciivities on page g. This sl)oivs net expeiidiiure before ¥aink'(losst5h)n inY¢stinenls for the year of £47.692,181 (20?O.. net expendihire £12,852,494). Total ll)come fell from £13,963,449 t(Tr £6.507.798 due io the impaci of the DCMS graiit funding received diiring the previous year. Meanii'hile, aiyards granEed 10 instiiuiions diirino the year increased from £2S,676,202 to £5?.678,343. Grant commitmen15 due ii'ithiii one year increased to £19,351,917 {2020t21= £11,350,544). Grant commitments due after rnore tlian ￿1¢ )'ear ivere £44:724.395 (2020121.. £10,054,880). The closing net asset position fell to £255.155.474 (2020121.- £304.658,471) largely as a consequence of the niajor graiit aiyard nDted above. Investnient losses of £1.810.816 (20?or21.' gains of £66.201,534) Ivere recorded durii)g ilie year. Wiilst investment niarkets continued io perform sirongl> during the first i)ine niond)s of the year, the first quarter of the 202? calendar year saiv a reversal i%"liicli e.iiinguished all gains booked during Ihe yeai. io date. There are no restriciions on the chariry's ￿ller to invest. li is the polics, of ihe Tnisiees to Illclnage the corpiis of The Steve Morgon Fouiidaiion on the basis of a relaiively loiv level of risk, balwicing capiial grO1￿h (￿d incoTne requiremeiits iii order io siisiain Ilie corpus in the lono terni and to provide an adequaie reliable inconie strean) to serve the chai'itable purposes on a day-ItFday basis. PROCEDURES AND POLICY FOR GRANT MAKING The Tnistees usually ineet bi-monthly to consider iihai grants iliey ivill make And to revieiv any feedbaek tl)¢y have received. Grat]Is art only aivarded iip)n agreenieiii b). Ilie Twstees aiid all Sliccessful rccipients niust ni¢et the %pecific objectives oFtlie cliaril}'. L'sllally, they are visiied bs. one or niore of the Trtistees. aiid a detailed repon is prepared for the Board of Ttustees to revieii. before ilie grani is approi'ed. Tliough the Tnistees make some grants of a limiied size ifviih no formal appli¢atioi). they nonnally agk ii)viied organisations to siibn)ii a fomial applic£l1ioii sa)'u)¥ hoii. the fuiids Ivould be used, I￿ha[ H'oiild be achieved. aiid proTr'iding refei'ences ivliere appropriale. The Trnsiees have a policv, i¥lii¢li is coi)Iiiiuni¢ated to all beneficiaries, Iliat the), only make grants Ihal nieei Ilie condiiions specific iviihin the fi￿al offer letier appiDved by Ilie Triisiees. RESERVES POLICY li 15 the policy of the chariiy io maAimi5e unre5tricled fiinds, Ivhicli are ilie free reserves of ihe cliarity. to ¢nsure Sufficient fiinds are available to col'ei aiiards pa)'able, ￿1pport and adininistrniion cosis for ihe foreseeable fiiture. T]iere are no restricted ieserves held at prtsenl, unrestricied reser￿eS at 2021.42 artioiiiit to £255,155,474 (20?012021: £304.658,471). A large sutplus of ￿ndS is heltL substaJitiallJ as a iiiaiier of policy. Tlier¢ are 110 maxiinum or niinimiin) lei'el of reserves reqllirtd to be held al any lime. The iiiconie derived therefron), alld the capital accreiion ihereto fiind the expeiiditllre and maijitain Il)e corpiis to sertre likeii'ise in fiitthr¢ ￿rIodS. THE STEVE MORGAN FOUNDATION TRUSTEES, REPORT (CONTINUED) RISK MANAGE￿IENT The Tnistees have considered the operational and business risks ivhich the charil), face5 and confirm that they have esiablished s)'stems to mitigate the Significant risks. The principal risk faced b), The Steve Mor¥an Foundic lion is volaiility in the value of iiivestnient5 held ii.hich could exw)se Ihe Cliariry. to loss of incoine. The Tnisiees ii'ork closely Ivith the investment tnanauet5 and Ihe invesimeni repons ar¢ closely monitored tts ttack fluciuaiions aiid to ensure inv¢stment decision5 ale in lÈne iyiih ihe objectives of ihe Charity- PLANS FOR THE FUTURE 1.he TrEislees intend to continue providing ail'ards ii'iih a vieii- to improvin¥ the life chances of Ihose suffering from disadvania¥e or disability. mainl), in Ihe Merseri'side. Cheshire and North Wales areas in line I￿11)7 the objective5 gf the Chartity. It 15 piesenily e.xpecied Ihat during 2022r2023 the leyel of gtanis aii'arded ii'ill fall beloii, last )'ear's record levels. KEY MANAGEMENT PF.RSONNEL REMUNERATION The Tn151ee5 con5idei the ke). mancioemeni personnel of the chariti. to be the Board of Trustees. Tlie Trustees gr¢ in charge of directing and toniiollino Ihe chariry. and wnning and operatiiig the charity on a da)'_io-da)' basis. All twstees give their time freely and no trusiee remuneraiion ivas paid in the )'ear. (2020r21.. £nil). RELATED PARTIES The Tn15tees are reqiiired to disclose all relevani inierests and, in accordance ivith the ehaiill s policy. ii'itlidraiv froi decisions ii'heie a conflict of inieresi arises. G01Tr4G CONCERN After making enquiries. Ihe Twsr¢es have a reasonable eiprttaiion Ihai ihe chariry, lias adequate resoLirces to continue in opentional elisience fo¥ ihe foreseeable futtiie Ibeinu ai leasi 12 monihs froii) Ihe datc of si(Tnine the accoiinis). diie io ihe lei'el of net assets. Accordin£l}'. the). conÈinue io adopi ihe going coiicern basis in preparing the financial statemenis. Fiirther de11c ils regarding Ihe adoption of the £oing concern basis can be found in noie l of tl)e financial stalemeiits. AUDITOR Deloiiie Ll.P have elpresscd their ii-tllinipness to continue in office as ihe charit) s auditor and a resolution to re- appoint Ihein ill be proposed al the forthcomints Annual General Meeiing. The Tn15tee Report i%"a5 appioi'ed b>. the Board and signed on its behalf b),= oigi£ n A Leii'is Date.. THE STEVE MORGAN FOUIYDATIO TRUSTEES, RESPONSIBILITIES STATEMENT The trustees are iesponsible for preparitibi ihe Trnsiees. Ant]ual Report aiid the finan¢ial siaiemenis in accordance ivith applicable laiv and Unl￿d Kuigdoiii Accouniing Standards Iuiiiled Kingdoi)i Generally Accepied AccLiiii)tiiig Piactiee), incliiding FRS 102 "The Finaiicial Re￿rtIng Standard applicable in the UK and Republic of Ireland". The la1￿. applicable to charities iii England and Wales reqlli￿5 the trustees to prepare financial siaiements for eacEL financial ye￿. ii'hich give a Irue and fair vieiv ufihe siaie ofaffairs of th¢ ¢harit)' and of the incoming resoiirces and application of resources of the chariiy for ilial peri{￿J. In preparing these financial stateinents, Ihe trusiees are reqiiired to: select siiitable accoiinting wlicies and then applj thetn consistenily. observe ihe methods and principle5 in the Chariiies SORP- make judgmeTrls and estiinates that are reasonable and pNdenr' State ivheilier applicable accoiiniing siandards liave beerh (olloiyed; and prepar¢ tlie fll)ancial staremenis on ihe going concern basi5 unless it 15 ijiappropriate io presume ihat ihe cl)arii)' Ivill coniinue in business. The irustees are responsible for keeping proper accounting records ihat disclose iviih reasonable accuracy ai any lirne the fiiiancial positioii of ilie chariry, and enable them to en%ure that the finallcial statements con)ply iviih Ilie Ch£iiilies Act 2011 and tli¢ Charity {Accouncs and Reports) Reoiilation$ 2008 and the provisions of the trust deed. They ate a150 re5P0115ible for safeguardiiig ihe asseis of ihe chariry and hence for taking reasonable sreps for the preveniion and detection of fraiid and oiher itTegularilies. The Irusiees are responsible for the maintenante and integrity of the chariiy and fmancial info￿nation iiicluded QTI tIi¢ Charity's ii'ebsiie. Legislaiion in ihe Uniied Kintsdom governing ihe pre￿r￿[)0n and d￿￿eIn1nation of fiiiancial slatenieiils Inay differ from legislaiion in other jurisdiclions. THE STEVE MORGA￿ FOUNDATION IndepeiideiTrl Auditor's report to the tru5tee5 of Tbe Steve Morgath Foundation Report the autjil ofthe financial statements Opinio In our opinion the financial staiements of The Sieve Morgan Foundation (Ihe'¢harity)-. give a tnie and fair vieiv of the state of the charity's affairs as at 31 March 2022 and of it5 inconiing resouwes and application of resource5 for ihe year then ended. have been properly prepared in accord￿)ce Uniled Kitjgdon) Generally ACce￿ed Accounting Practice including Financi81 Reporting Standard 102"The Financial Reporting Siandard applicable in the UK and Repiiblic of Ireland" and have been prepared in accordance ivith the Charities Act 2011. We have aiidiled t]ie financial ststements ivhich comprise.. the Statement of Financial Aciiviiie5- the Balance Slicet" the Cash Flo%i' Statement. and the related notes I to 17 The financial reporting frameivork that has been Èpplied in their prepardtion is applicable laiv and United Kingdom Accounting Srandards, including Financial Reporting Standard 10?"The Financial Reponing Standard applicable in the UK and Republic of Ireland" (United KingdoTn Generdlly Accepred Accounting Practice). Basis for opinion We conducted our audit in accordance ivith tntemational Standards on Auditing (UK) (ISAS (UK)) and applicable laiv. Our responsibilities under those standards are funher described in the auditoEs responsibilities for the aiidit of th¢ finon¢iAI statements section of our report. We are independeni of the charity in accordance iviih the eiliical requirenients that are relevant to oiir aiidii of the rinancial staienienis in the UK. incliiding ihe Financial Reporting Council's {the FRC'S) Ethical Stan(lard, and ive have fLiifilled our other ethical responsibilities in accordance iTrith these requiTements. We believe that Ihe audit evidence Ive have obtained is sufficitnt and appropriate to provide a basis for our opinion. CoiieIusion5 relating to going t0￿cern In auditiiig the fmancial siatenients, il'e have eoncluded rhai ihe In￿lees. use of ihe going concern basis of accoiLntiTrg in the preparation of the ffft#ncial statements is appropriaie. Based on the ivork Kye have perforn]ed, li'e have not identified an), material uncertallilies relating tLI evenis 01 conditions that, ll)dividiially or colleciively. maj. cast significant doubt on the charity's ability 10 contliiue as a going concern for a ￿rIOd of ai least tsyelve Inonths fiDm ivhen rhe financial staternent5 ale autliorised for issue. Our responsibiliiies and the responsibilities of ihe truslees ivith respect to going eoneem are described in the relevant seciions of ihis report. Other information The other infor]naiion comprises the infornialion iiicluded in ihe annual retx)rt, other than tlie financial statements oiid our aiiditor's report theieon. Tlie truslees are responsible for the other information cot]iained ivithin ilie aniiual report. Our opinion on the fll)ancial slateiiieiiis dfjes noi cover Lle other information ive do not express aiis, foi'm of assiirance concliision ihereoii. Ourresponsibiliry is ioread ilie oihei inforniation and, in doing 50, consideriTrliether the other informaiion is niaterially inconsisieni iyiili Ilie fii)1111Cliil sia¢enieiils or oiir knoii'ledge obtained in the COLir%e of the aiidii, or oilienvise appears to be inic lerially inissialed. If i￿e identify slleh material incon51Steiicies or Rpparent Inaierial missiatenieiits, Ive are reoiiired to deteimine iyhether ihis gives rise 10 a niaterial misstaieinent in Ihe financial siaienienis tlien15elve5. If, baseil on tlie ivork li'e have performed, Ive conclude that there is a m*erial Inissiaieinent of this Other infomialion, Ive are required to report that fact. We have nothing io reEx)ri in Ihis regard. THE STEVE MORGAN FOUNDATION Iiidepeiident audilor's report to ihe Irustees olThe Steve Morgan Found*iiotL (eontinued) Responsibilities of trustees As explained more fully in the imstees, responsibilities statement, the trustees are iesponsible for the preparntion of the financial staiemenis and for being satisfied that Ihej gI￿e a true and fair vieii,. and for ￿lch intenial control as il)e trLlStees detemiine is necessary ro enable the preparaiion of financial stalemenis iliat are free from material misstateinent, whether diie ro frdud or e￿Or. In preparing the financial stal¢n]ents. the trustees ¥re responsible for assessing t]ie charity's ability to continiie as a going con¢em. dis¢losing, ps applicable, niatters related to going con¢em and using tlie going ¢on¢ern basis ot accoiinling uiiless the triist¢¢5 either intend to liquidat¢ lh¢ Chariry or 10 cease operations, or have iio realisti alternative but to do so. Auditor'5 re5POll5ibililies for ihe #udit of ihe fiDanci31 staletNents We have been appointed as audilOI Ilnder seciion 144 of Ihe Charities Act 2011 and ￿e￿rt in accordance i%'ith the Act aiid relev1< ni regiilations made or having etfect iheieilnder. Our objectiv¢s are to obtaiii reasonable assuranc¢ about ii'heiher the financial statements are free from Material Inisstatenient, whether due to fraud or error: and to issue an auditorfs report that includes our opinion. Rea50nablE assiiiance is a high level of assurance bilt is not a guarartiee that an audit condueted in accordance ivith ISAS (UK) ill alivays detect a material misstaiernent ivhen li exists. Mtsstaiemenis can arise Irom fraud or effor and are eonsideied nl£ltetial if, individiially or in the a¥gieuate. they Could reasonably be expected to infliience the econoit)ic drtisions of users taken on Ihe basis of these r￿lanCIal sktements. A furtlier description of oiir responsibilities for the audit of the f￿3￿¢131 stateillenis is located on the FRC'S ivebsite at= iijviv.frc.org.uklaudiiorsresponsibiliiies. Thts descripiion fornis part of our audiior's report. Extent to ivhieh the audit iTr'as considered capable of deiectin2 irrt£ularitie& including fraud Tegiilarities, iiicluditto fraiid. ale instances ofnon40mpliance ivith laws and regulations. We design procediire5 in line iviih oiir iespon%ibilities. outlined above, to deteci material misstaiemeiits in respect of itregulaTlties. incliidinL fraiid. The extent 10 iyhich our procedures are capable of detecting itregularities, includi]ig fraud is detailed beloiv. We considered the nature of the charits s in(lustry' and its control environment and revieived the cliarity's documentation of their policies and procedures relating to fraud and conipliance i%'ith laI￿S and reglllations. We also ejiqiiired of management about their oivn identification and assessmtnt of the risks of I￿¢8￿1arit]cs. We obtained an unde151anding of Ihe legal and regulatory ftamthlo￿s ihat tlie charity operaies in. aiid ideiilified tlie key laivs and re8ulation5 that.. had a direct effect on the detern]ination of inaterial amounts and disclosures in the financial stateinent5. These incliided ihe UK Cliarities Act,. and do noi have a direci etTecr on the financial slaiements biii compliance ii'iih ivhich may be fiindamental io ihe charity's ability ro opernte or to avoid a material pen81ty. We discussed amon(T the aiidit engaLTremeni ieam reoarding the oppominiries and incenrives tha( Inas exist ivithiii ihe orgaiiisation for frnud and hoiv and ivhere frdiid might occiir in the finai)cial slalei￿ents. As a result of perfotming the £lbove, lye identified the greatest potential foi fraud or ]K>ll-conipliance iviili laiv5 and rebwulations in the follo¥iing atea. and our specific procedures peifornied to address il are described beloiv= recognition of inconie in the corteet accouiiting peiithl. To address il]is risk ive tested ¥L Scl]nple cTrt incon)e eitlier side of the balance sheet date io siipporting evidence of agreemen(s of minures, io evaluaie ivheiher Elle incon)e l)as been iecogiiised appropriately. lil coninioii ivitli all aiidits linder ISAS (UK}, Ive are also requhred to perforni specific prwediires lo respond to tlie risk of lilciiiageiiieiit override. In addressino ilie risk of fraiid rhrough management ove￿Ide of controls, Ive assessed Ilie desigii and iiiipleiiienialion of coiiirols oi'er the assessment and approi'al of grant aivards. tested Ilie approprialeness ofjoLllllcl1 eIilries and oiheradjiisinieiiis- assessed ivherher ihe judgemei)Is Dlade ITI iiiakiilg accoiiiiting estiiiiaies are indicative of a poteniial bias. and evaluared the biisines5 rdtionale of any significai)t transactioiis tliat uiiiisual or oiEtside the nornial course of busijiess. In addition to the above, QLir procedur¢s to r¢sPgnd lo ihe risks identified included ihe folloiving.. THE STEVE MORGAN FOUNDATION Indepelldent xuditor's report to Ihe trnstees of The Sleye Morg2n Foundation (continued) revi¢i¥ing financial statement disclosures b). iesiing io supporiitl8 d(Kumeniation to assess Col￿pIlart¢e iviih provisions of relevant laiv5 and regEilations described as having a direct effect on tlie fill￿1¢7a1 siaiements; perforniing anal}'tical procedures to iderttif). any uniisual or unex￿ted relationships that niay indicale ri5k5 of material mis51atement due to fraud. enquiriiig of managernent conceTning a¢￿al and potential liiigation and claims, and instances of non. ompliaii¢¢ iTr'ith laiv5 and re8ulat10115- and readiiig minutes olrneetings olthose charged iviih governance. Report on other legal and regvlatory req￿irementS Ivlatters on which ive are required to report by exceptio Uiider the Cliarities (Accounts and Reports) Regularions 2008 ive are required to report 111 respect of the following matters if, in ollr opinion-. the information given in the fjnancial statements is inconsistent in any material respect i¥iih the trustees, report,. or suffi¢i¢ni a¢¢ounting records have not been kept- or the financial slatements are not in agreement iviib the accoiintiiig records and returns- or ive have nor received all the infornarion and explanations H"e requtre for our audit. We have nothing to report in respect of the￿ Tnatters. Use of our report This report is made solely to the chariry's ttitstees. as a bod),. in accordance ivith part 4 of the Charities {Accounts and Reports) R¢gulation5 2008. Our audit WO￿ has been undenaken so ihal niight state to the charity's rrustees rhose niatten li'e are required to state io them in an audiior's report and for no other purpose. To the fi)Ilest extent ￿n￿ltIed by laiv, we do not aecepi or assume responsibility. ￿ anyone other the charity and t]ie charity's trustees as a ix)dy. for our audit work. for this rep)n. or for the opinions ive have fornied. iLf Deloitte LLP Ststutoiy Auditor Leeds. Uiiited Kiiigdorn 27 SeptetnbeT 2022 Deloitte LLP is eligible for appointment 45 auditor for ihe ¢haTity by virtue of ils eligibiliry for appointmeiit as aLidit of a compan}. under section 1212 of the Cotnpanie5 Act 2006. THE STEVE MORGAN FOUNDATION STATEMENT OF FINANCIAL AcfivITIES Year ended 31 March 2022 Total Unrestricted aud Total Unresirieted fuDds Restrleted llds fund5 2021 2021 2021 21)22 Note INCOiVIE FROIWI: Donations 13,742 111.877 iO.000.O(K 10.111.877 Inv¢sttnents 6.494,056 3.851.572 3.851.572 TOTAL INCOi¥IE 6.507.798 3,963.449 10.000.000 13,963.449 EXPENDITURE ON: Raising funds Charitable activitles I.0￿.297 53.109,681 808.308 16.007,635 808.308 26,IX>7.635 lo,￿0.0 TOTAL EXPENDITURE 54,199,978 16.815.943 10.000,000 26,815,943 Net lexpeDditure) beforn Investmettt gallls (47,692.181) (12.852,4941 112,852,494) (LossesyGains on ￿VeStMent assets 12 (1.810.816) 66,201,534 66.201.534 Net IExpellse)l income for the ye4r (49.501997) 53.349,040 53,349,040 NET 1¥50VETrIENT IN FUNDS (49J02.997) 53.349.040 53,349,040 RECONCILIATION OF FUYDS: Total fvnds brouoht f0Th¥￿d Net moveme￿t itj funds for theyear 304.658.471 (49,502,9)7) 251 J09,431 53,349,040 251.309,431 53.349.040 Total funds Carried fon¥ard 255.155.474 304.658.471 304,658,471 Fh¢re were no other recognised gains or losses other than those listed above and the net iocome for the year. rhere were no restricted funds received or spent during the year ¢0 31° March 21)22. ¥ll incorne and expenditure derives from continuing activitiLv. THE STEVE MORGAN FOUNDATION BALANCE SHEET As at 31 March 2022 2022 2021 Note FIXED ASSETS Investments 12 283.227,415 235,012.858 CURRENT ASSETS Debtors Cash at bank and tn hattd 13 4,248 36,036.556 2.048 91,058.290 36.040.804 (19,388.350) 91,060,337 (11,359,844) CREDITORS: amounts falling due ivitbiD one year 14 NET CURRENT ASSETS 16,652,454 79,700,493 TOTAL ASSETS LESS CURRENT LIABILITIES 299.879,869 314,713,351 CREDITORS: ￿￿Oll￿ts falling due atter more than one year 14 {44,724.395) (10,054,880) INET ASSETS 255,155.474 304,658,471 FUNDS UnrestTiCted funds 255.155.474 304,658,471 These f￿ancial statements of The Steve Morgan Foundation cI￿lty Number 1087056 were approved by the Board of Tn]stees and authottsed for issu¢ on J They were signed on its behalf by-. S P Morgan Chairman A M Leivis Hon. Treasurer 10 THE STEVE MORGAN FOUNDATION CASH FLOW STATEMENT Year ended 31 Mai'ch 2022 Note 2022 2021 Net eash floivs frowl(used in) operating activities 17 (11,490.417) {11.996.867) Casli Iloii's Ironi inTr'esting aetii'ities: Ijitei'est and dividends received Proceeds from sale of invesrmenrs Purchase of investmenis Movement iii cAsh l)eld by invesimeni managers 6,494.056 3,851,572 48.533 2,252,675 (50,000,000) 132,000,000) (73,906) {1,593,5311 Net cash noii's (used in) iii)'esting sclivilies (43,531,317) (27.489.284) Net (deerease) in ca511 aiid ¢vash equivalents (55,021,734) {39.486.150) Cash and cash equivalents 8t b¢giDning of year 91,058,290 130,544.440 Cash an¢J cash equivalents 2t tbe end of the )'ear 36,036,556 91.058,290 THE STEVE MORGAN FOUIYDATION NOTES TO THE FINANCIAL STATEMENTS Year end￿ 31 March 2022 ACCOUNTING POLICIES Charitabk status The Steve Morgan Foundaiiorn is a public benefit entity and a re8iStered charity- The registered offic¢ is given on page Basis of accounting The f￿an(la1 51alenieiits are prepared under tlie hisiorical cost conveniion, as modified by the revaluation of investments, and in accordance ii'itli the Stateinent of Rec01￿1nended Practice "Accouniing and Reporting by Charities" applicable to charilies preparing tlieir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic ollreland {FRS 102) and the Charities Act 2011. The principal accounting policies are sei out beloiv. Preparation of fiDan¢i#l stat¢fftents- going concern basi5 The ¢harity'5 activities, together iviih the fa¢tOTS likely io affect its fiiwre del'elopment, perforniance and position ￿ sei out in the Trustees report ¥vhich atso describes the financial ￿sitIon of the charity in¢luding ils cash, investments and reserves w)licy. The chaTiry forecasts and projections, raking account of reasonabl). possible changes in donations and inve5ttneni income. and including consideration of the impact of Covid-19, shoiv thjt the charity should be able io operdie ivith the current leyel of reserves it ha5. The Trustees have a r￿￿onable expectation that tl)e charity has adequate resources to continue in operational exisleiice for the foreseeable futiire, ii'hich in¢ludes the period of12 months from the date of these signed accounts. The Trustee4 tlierefore, consider that the going oon¢em assumption is an approptiaie basi5 on %Yhich io prepare these financial statemeiits. Income Iiicome is recognised ii.hen the Charity has eniiilemenr ro (he fiinds. any perfomiance conditions atiached to ihe ilem(s) of income have been met. it is probable Ihai Ihe inconie ivill be received and the amouni can be ttLea5ured reliably. Donaiions Consisis of donations and similar income resources. The), are included in the accoLlnting pericKI in ivhich tliey are receivable. Ivhich is ivhen ihe chariry. becomes ertlitled ro the resource. Soine services have been provided by Bridgeinere LTK PLC. a companj of itrhich four of ihe trustees are direciors. No adjusin)ent has been made to reflect tliis as it is nol possible 10 quaniify the value of sucli services. Jni'esiiNenl incoiiie Investment income is a¢¢oiinted for ii'hen rffeivable. Donoled¥004ts ondseTvices Donated piofessional service5 and donated facilities are recogni5td a5 incorne ivhen the charity lias control over the item, any condiiions associaied ii'ith the donated iten) Iiave been met. the receipt of econoniic benefi* from the Iise b!, the ch8r.Itv. of the iiem is probable and Ihat econciiiic benefit can bc. Inta"iired reliably. In accordance ivith ihe Charities SORP (FRS 102), (Feneral volunteer tinie is not recognised. lliere are no volunleers other than ihe irustees of ihe Chari￿,. 12 THE STEVE MORGAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Ye'. Expenditur¢ is classified under the folloiving aclivity headings.. CIRL7rilable aclrvilie5- fflvardp(tymenls Alvic rd P£iymenis are accounied for once the Foundation has niade an unconditional Comi￿lIment to pay tlie grant and this is communicaied to the beneficiar). or the gtant has been paid. ii,hichever is earlier. Where ai) aii'ard is conditioiial and coinpliance is ivithin the control of The Sieve Morgan Foundation, the aiyard is noi recognised uniil Ihe condition5 are met. Wherean aivard iscondiiional and outside the Control of The Steve Morgan Fouiidation: the aivard 15 reco￿(7 ssed and accoiii)ted for in ilie wii¢ Ivay 45 an uncondiiional aivard. .fiipporl c0515 This include5 tliose functions that assisi Ilie iYork- of the charit) but do not directl), Iindertake chariiable activities. Siipport costs inclLide back O￿lCe costs. finance, personnel, payroll and governance cosis- RtTi5ingfiinds This includes all expenses relaiing to invesinient managernent. Fund accounting The chariry holds utvestricted fiinds represenling unrestricred nei income and recognis¢d gains ivhich are expendable al the discretion of the tn15tees in furtherance io the objeciives of the charity. Investm¢iilS Rec11ised and iinrealised gains and los*s are included in the slaienient of financial activities. Investnients are siared ai markel value at th¢ balance sheei dale aiid are derived froni ini'estnieiit assets iii the United Kingdom. Social Investtnents The Charity holds a social investment pioperty to fulfil is charithble objectives_ Th¢ social iiive5tni¢ni properry is stated at nei book valiie, being c05t net of deweciaiion and any provisions foT iTnpRirnJenl. No deprccialion is provided on ihe social investment diie to the aniicipared high residual value iihich iNoiild result in iminalericil depreciation for the asset. Emploi'ee benefits Tlie Ch¢irity porticipatei in a mone). purcliase pension arrangement. The ￿nou1)I charged io ihe siaieniei)t of fiiiaiicial activities iii respeci of ￿nsiOn cosis is the cojitribuiion payable in the )'ear. Financial instruments Financial assets and financial liabilities are recognised ivhen the ClTrarity becomes a party io Ilie coi)lrnctiial provisions of the instrumenr. All financial asseis aiid liabilities are initiall) ineasured Iiaiisactioii priee. The cliaril}' only ha5 financial a55eis and fjnancial liabilities of a kiiid that qualify. as basic fsnaiicial uisti'uii)eiils. Basic financicll insthiniLmt5 are iniiiall5' recoJci lised at ti'aiisaction value and 5'.5b5eqiieiitlJ nieasured al tlieir settlernent valiie. Trade and oiher deb(ors are recognised al the 5ettletnent an)ouni diie after any trnde di%ount offered. prep￿7).]1]entS are valLi¢d at ihe aTnoihiil prepaid net of anN Itade discoiiiiis due. Casli ai baiik aiid cash in hand iii¢lLides casli aiid short lemi highl!. liquid investments ii'iih a short ma(uriry of Iliree month5 or les5 frtsin ihe dale of acouisition or opeiihno of tl)e deposit or similar account. Crediiors and provisi011s are re¢ogni5ed ii'liere tlie charit), has a preseni obligation resultino from a pasi eveni iliar i¥'ill probabls. resiilt in the Ira115fer of fund5 10 a iliird panj. and the aniount due to Settle the obligaiioii can be i))e¢isiired or estlTll 1,968,058 (479,106) 50,000,0 ubtotal 50.277,573 1,374,121 GIONAL GRANTS > £50K Canolfan F¢lin Fach Centre Creatiiig Adventures Denbighsliire Hoiiie-siart Donieslic Ablise Saftt). Unli North Wales Homestart Coiii¥>' Kinsliip CareTS Liverpool Cores Martin Gallier Project Merseyside Laiv Cei)Ire Kini Inspire Neilierron Park Comniuiiil>- North Wales Recovery RASA Merseysi(le Roiiinda Incliisive Hub Riiby's Fiind Saliir House Speke Childrens Enviro C0￿Munity The Firsr Slep Thrivino Spaces 62,986 60.0 60,000 90,930 76.000 75.000 60.000 96.000 81,669 144,958 67,500 75,600 83,400 60,000 78,4?8 86.400 77.000 78.600 15 THE STEVE MORGAN FOUNDATION NOTES TO THE FINANCIAL STATEVJENTS (CONTIYUED) Year ¢nded 31 fvlarch 2022 Graiits 10 Grants to in5titution$ Instltutlons 2022 2021 Warringion Youth Aiid Community Warringlon Yoiith Zone 26 (202?), 12 (2021) Reoional Grants under £50K. 75.000 50.000 408.966 171,775 .824,711 376,733 COVID-19 ER ENCY FUND GRANTS >£SOk Bradbury Fields Centre 63 Cr¢st Co-operative Healihbox CIC Maggi¢s Centre Neo Cominiinity Passion for Learning Positive Futtiies Toniortoivs Women Wirrdl 0 (2022), 445 (2021) Covid-19 Gr8nts under £50.(KM) 72,400 78,000 63,898 60,000 50,000 76,040 138,357 75.825 74.134 3,59i.119 Subtotal 4283.773 DCMS FUND GRANTS ADHD Foundation Age Concem Ch¢shir¢ All Together Noiv Ali Valley Trnst Bamstondale Cenlre Be¢chley Siable5 Bradbiiry Fields Breckfield and North Everton Neighbourhood Council Chesliire Aulisiii Praeiical Support Chesliire Wit1104il Abuse Cheshire Yoiing CareF5 Chesier and Disirici Federntion of rhe Blind CLIC Sargent CDJniiiuniry By Nawre Coinpass Counselling Croxieth and Gilinoss Community Federations Cyclillg Project Everton in tli¢ Community Fuii 4 Kidz Oai'sioii Adveiiture He £50K Stniley Buses 5 (2022). 012021) Smiley Bus transactions under £50K 142,508 (87.730) Subtotal 142,508 (87.730) DISCRETIONARY GRANT > £50k- Paid Denven College UBS Covid Recovery 17 (20221. 18 (2021) Discretionary Grants under £50K 50,000 80,000 90,551 74,242 Subtolal 220JSI 74.242 Total 42.678J43 25,676,202 All grant awards iyere inade in the pursillt of the Chariiy's objectives a5 %t out in the Tnis(ees report on page 2. Prior year disclosures in¢liide resthcted grdnts of £9,814,279 *4Prior >'ear nunibers iiiclude b?ranis reallocated io fomi part of the covid support progTarnme. THE STEVE MORCAN FOUNDATION NOTES TO THC FINANCIAL STATEMEhTS (CONTINUED) Year ended 31 March 2022 ANALYSIS OFSUPPORT COSTS Unrestricted gnd Total funds Unrestrieted Restricte Funds 2021 Fuiids 2021 £ Total 2021 2022 Payroll Office expenses Bank charge5 Governance 146,718 95,768 .335 14.71X> 136,723 48,998 136,723 54,438 1,780 9,599 5,440 1.780 9.599 Tot41 258,521 16.819 185,721 202,540 Siipport costs are Allocated in full to grani funding activities on tlie basis thai Ihis is the key ac(iviiy iindertaken b). the charity, i%'ith suppon costs being direetl). linked to ihese activities. NET INCOME FOR THE YEAR 2022 2021 Net in¢oine is staled after charging.. Aiiditor's reiniineration. Fees payable to ihe charity's auditor for ihe audii of the charity'5 pnniial financial slaiements 14,7(N) 9,599 10. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES. AND THE COST OF KEY MANAGEfvIENT PERSONNEL 2022 No. 2021 No. The average monthlj nuD)ber of eniployees ithas: Support 2022 2021 Their &ggregAte remuueraiion conipri5ed: Wages aiid salaries Social security costs Pension cos(s 8R,318 39,371 19,029 81,807 37,872 17,044 146.718 136,723 The iiutnber of Charity en)ployett ii'hose einoluinenis. e.xcludiiig pensioii contribuiions but iiicludiiig benefits in kiiid, iiere in excess of £60.000 il'as £nil {2020121: £iiil). 19 THE STEVE MORGAN FOUIYDATIOIY NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Year ended 31 March 2022 Trustees, Remuneration Trustees received no remunerdtlon and were noi reinibursed for any of their expenses during tlie year {2020r21-. £nil). There are no oiherkey Jnanagemeni personnel for The Steve Morgan Foundation. TAXATION The Charity is a registered chariry and does not trade. li is noi liable io rax on any SUTplus arising. J2. FIXED ASSET INVESTMENTS Registertd fllnds and listed ini'e5tments Social investments Total Market valuelNei Lyx)k value brought f¢mvard at I April ?021 Addirions Disposal pr(Keeds Net investment L05S Moyemenls in cash 234,758,078 50,1)00.(M)o (48,5331 (1,810,816) 73,906 254,780 235.012.858 50.0(M).000 (48,533) (1.810,816) 73,906 Market valu¢Net trM)ok value Carried fonvard at 31 March 2022 282.972,635 254.780 283,227,415 Hisiorical cost at 31 Ma￿h 2022 ?46,082,471 254.780 246,337,251 2022 2021 Market value analysed betivetn: Invesimenis Cash held by investment rnanage 280,157,863 232,016.913 2.815,071 2,741,165 282,972,635 234,758,078 13. DEBTORS 2022 2021 All)ounts fallipg due i%ithin one )'tar: P￿pa)mentS aiid accrued inctsine 4.248 2,048 20 THE STEVE MORGAN FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) Y¢ar ended 31 March 2022 14. CREDITORS 2022 202] Amouiits falling diie i%"ithin one )'ear: Accruals for grai)Is pa>'able Accruals and deferred income 19.351,917 11.350,544 36.433 9.300 19,388,350 11.359.844 Amounts lalling due #tter more than one ye4r: Accruals for giaiiis paj'able 44,7?4,395 10.054.880 15. EMPLOYEE RETIREThIENT BENEFITS Defined contribution scheme The Chariti, operates a defiiied contribiirion reiirement benefit 5chen)e for all qualify'ing en)ployees. The Chariry's eoniribution to the ￿heme in rhe year ivas £19,029 (2020121: £17.044). 16. RELATED PARTY TRANSACflONS The Trusiees are reqiiired io distlose all relevani inierests and. in accordance ivith the charity-s policy, i￿1111drI7iv fro1￿ deeisions iiher¢ a ¢ontli¢i of inieresi arises. Some services have been provided bj, BridDeiL)ere UK PLC, a cotnpany of ivhicli four of ihe triisiees are directors. No adju5tn)ent has been made lo retleci tliis as it is not possible to quantify rhe value of such service5. CASHFLOW STATEMEINT 2022 2021 R¢coiJciliation of net (eipendltiirt) l income ¢0 Cash geijerated froml(used in) operntlOll5: Net (eNpense) linconie for ihe year (49,502,997) 53,349.039 Adjustineiits for= Interest receivable LO$￿{GaIn) on investments (6,494,056) 13,851.572) 1.810,817 (66,201,534) Operating cash flo1% ￿FOre movemenl in i%ork'ing capital (54.186,?36) (16,704,067) (Inerea5e)Trcrease in debrors Increase in creditors (2,201) 42,698,020 9,359 4,697,S41 Cash (used in) operatiijg actii'ities (11.490.417) (11,996,867}