Charity registration number 1088642
The John Browne Charitable Trust
Trustees’ annual report and financial statements Year ended 5 April 2022
The John Browne Charitable Trust
Contents
| Page | |
|---|---|
| Legal and administrative information | 1 |
| Trustees’ report | 2 |
| Independent examiner’s report | 6 |
| Statement of financial activities | 8 |
| Balance sheet | 9 |
| Statement of Cash Flows | 10 |
| Notes to the financial statements | 11 |
The John Browne Charitable Trust
Legal and administrative information
| Registered Charity No. | 1088642 |
|---|---|
| Trustees | Lord Browne of Madingley (Founder Trustee) |
| Lord Hennessy of Nympsfield | |
| Michael Lynas | |
| Antonia Romeo | |
| Farrer & Co Trust Corporation Limited | |
| Principal Address | 5 Cheyne Mews |
| London | |
| SW3 5RH | |
| Bankers | C Hoare and Co |
| 37 Fleet Street | |
| London | |
| EC4P 4DQ | |
| Investment Managers | Stanhope Capital LLP |
| 35 Portman Square | |
| London | |
| W1H 6LR | |
| Independent Examiner | Cara Turtington FCA DChA |
| Saffery Champness LLP | |
| 71 Queen Victoria Street | |
| London | |
| EC4V 4BE | |
| Solicitors | Farrer and Co LLP |
| 66 Lincoln’s Inn Fields | |
| London | |
| WC2A 3LH |
Page 1
The John Browne Charitable Trust
Trustees’ report For the year ended 5 April 2022
The trustees present their report, together with the financial statements of the Trust for the year ended 5 April 2022.
Statement of Trustees Responsibilities
The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Structure, governance and management
The trustees are listed on page 1.
New trustees are appointed by the Founder, with the maximum number of trustees at any time being six. No trustee shall be remunerated by the charity for their services, other than payment of any reasonable expenses incurred in their duties, nor shall they have any financial interest in transactions with, or property held by the charity. Trustees may however be paid for any work undertaken in their professional capacity, when directed and authorised by the other trustees to undertake such work.
Decisions are taken at duly constituted meetings of the trustees by majority vote, though informal decisions can be made, subject to ratification at the next trustees' meeting.
The Founder trustee has the power to decide in his own right, which institutions receive grants.
The Founder trustee currently has the power to appoint a successor Founder trustee.
Page 2
The John Browne Charitable Trust
Trustees’ report (continued) For the year ended 5 April 2021
Objectives and activities
The John Browne Charitable Trust was established by Trust Deed dated 14 May 2001 and registered on 27 September 2001. The original Trust Deed was amended on 24 February 2012.
The primary purpose of the charity is to make grants to charitable institutions.
The trustees may also:
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Promote research and publish the useful results of such research;
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Commission, promote, publish, distribute and sell facsimiles, photographs, models and publications of every description and;
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Provide, promote, sponsor and organise lectures, discussions, exhibitions and other like events.
The trustees’ intention for the immediate future is to retain the major part of the charity’s income to generate a future realistic endowment. This is expected to be achieved over the next ten years and is also provided for in the Founder’s estate.
The mission statement of the Trust is:
“To support exceptional people and organisations (and the applicable infrastructure) to fuel progress in engineering, the environment and the performing arts.”
Grant-making policy
Grants are made to exceptional individuals and organisations with the aim furthering the mission statement of the trust. Applications are received from unsolicited organisations, individuals and personal contacts.
Applications are reviewed by the trustees and a formal appraisal is made of each application. Each case is judged against five criteria before decisions are made to approve funding. These criteria are as follows:
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Geographic Focus (priority is given to UK based organisations and individuals); and
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Engineering science and practice, the natural environment, the visual & performing arts; and
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A commitment that those supported go on to further the mission of the Trust; and
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Supporting underrepresented groups (including those from low income households, women, LGBT); or
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Supporting brilliant people with a commitment to excellence or excellence widely stated.
Achievements and performance
The charity’s principal activity during the year has been the donation of funds in the form of grants to individuals and organisations; in line with the objects of the charity. Grants were awarded in the year totalling £2,795,238 (2021: £1,328,450), which included a £2,000,000 gift to Murray Edwards College, Cambridge, for the acquisition of a new building named Paula Browne House. The previous included a gift of £1million to the Courtauld Institute.
Other grants were made to the applicants that the Trustees felt would best promote the overall objectives of the trust, as detailed in note 2 to the financial statements.
Through these grants the Trustees are furthering their mission statement effectively.
Page 3
The John Browne Charitable Trust
Trustees’ report (continued) For the year ended 5 April 2021
Financial review
The net expenditure for the year after unrealised losses on investments was £2,428,664 (2021: Net income of £2,419,829).
There were £1,021,620 of free reserves held at 5 April 2021 (2021: £3,450,284).
The principal funding sources were donations which in turn were used to make charitable grants. The net expenditure during the year represents the spending of funds received during the 2021 financial year.
Grants were made to a variety of organisations as listed in note 2 to the financial statements.
Risk management
The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The main risk to the Charity is that income is insufficient to allow the Trustees to fulfil their grant making obligations. However, at the moment this risk is mitigated by the active involvement of the Founder in the Foundation’s activities.
Investment Policy
The trustees are responsible for the safekeeping of all assets of the charity and may invest funds as they see fit.
Aims and objectives for future periods
We intend to continue to support educational, artistic, environmental and engineering projects through scholarships and grants of capital or revenue.
Fundraising
The Trustees are aware of their responsibilities under the Charities (Protection and Social Investment) Act 2016 in relation to fundraising. The charity does not engage in any active fundraising activities and no approaches are made to the general public in order to raise funds. The charity has received no complaints in the period regarding its fundraising activities.
Page 4
The John Browne Charitable Trust
Trustees’ report (continued) For the year ended 5 April 2021
Reserves Policy
The current activities of the charity are funded by regular contributions from the Founder that are intended to be applied directly to charitable purposes rather than building up a capital base. As such the Trustees have limited requirements for free reserves as the ongoing costs of administering the Foundation are not substantial.
During the year the reserves of the charity were decreased significantly by an enhanced programme of giving.
Public Benefit
The trustees have complied with the duty in the Charities Act 2011 to have regard to all guidance published by the Charity Commission.
The trustees are mindful of the need for all grants to be made for public benefit. As such this criteria is considered whilst determining which grants to make each year.
For and on behalf of the trustees
Lord Browne of Madingley Wednesday 8 February 2023
Page 5
The John Browne Charitable Trust
Independent examiner’s report to the Trustees of John Browne Charitable Trust
I report to the trustees on my examination of the accounts of the John Browne Charitable Trust (the Trust) for the year ended 5 April 2022.
Respective Responsibilities of trustees and examiner
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
Since the Trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
Page 6
The John Browne Charitable Trust
Independent examiner’s report to the Trustees of John Browne Charitable Trust
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Cara Turtington
Saffery Champness LLP
Chartered Accountants Statutory Auditors 71 Queen Victoria Street London EC4V 4BE Date: 10 February 2023
Page 7
The John Browne Charitable Trust
Statement of financial activities For the year ended 5 April 2022
| Notes Income from Donations 1 Investment income Total income Expenditure on Charitable activities 2 Total expenditure Realised (losses) on investments Unrealised (losses) on investments Net income/(expenditure) and movement in funds Fund balance brought forward at 6 April 2021 Fund balance carried forward at 5 April 2022 |
Unrestricted funds 2022 2021 £ £ 377,250 3,750,500 4,397 23,842 381,647 3,774,342 2,802,672 1,341,951 2,802,672 1,341,951 - (5,998) (7,639) (6,564) (2,428,664) 2,419,829 3,450,284 1,030,455 1,021,620 3,450,284 |
Unrestricted funds 2022 2021 £ £ 377,250 3,750,500 4,397 23,842 381,647 3,774,342 2,802,672 1,341,951 2,802,672 1,341,951 - (5,998) (7,639) (6,564) (2,428,664) 2,419,829 3,450,284 1,030,455 1,021,620 3,450,284 |
|---|---|---|
| 3,774,342 | ||
| 1,341,951 | ||
| 1,341,951 | ||
| (5,998) (6,564) |
||
| 2,419,829 1,030,455 |
||
| 3,450,284 |
All incoming resources and resources expended derive from continuing activities.
There are no other recognised gains or losses.
The notes on pages 11 to 15 form part of these financial statements.
Page 8
The John Browne Charitable Trust
Balance Sheet
As at 5 April 2022
| Notes Fixed assets Investments 7 Current assets Cash at bank and on deposit Debtors 4 Current liabilities Creditors due in less than one year 5 Net current assets Net assets Funds Unrestricted funds |
2021 £ 343,920 614,700 75,000 689,700 (12,000) 677,700 1,021,620 1,021,620 |
2020 £ 847,162 2,364,750 750,000 |
|---|---|---|
| 3,114,750 | ||
| (511,628) | ||
| 2,603,122 | ||
| 3,450,284 | ||
| 3,450,284 |
Approved by the board of Trustees on Wednesday 8 February 2023 and signed on its behalf
Lord Browne of Madingley Sarah von Schmidt, on behalf of Farrer & Co Trust Corporation Ltd
Trustee Trustee
The notes on pages 11 to 15 form part of these financial statements
Page 9
The John Browne Charitable Trust
Statement of cash flows As at 5 April 2022
| Note | Note | Note | 2022 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
| £ | £ | |||||
| Cash flows from operating activities | ||||||
| Net cash provided by / (used in) operating activities a |
(2,250,048) | 2,266,980 | ||||
| Cash flows from investing activities | ||||||
| Investment income received | 4,397 | 23,842 | ||||
| Investment purchases | ||||||
| Proceeds from disposals of investments | - | 16,687 | ||||
| Change in cash and cash equivalents in the period | (2,245,651) | 2,307,509 | ||||
| Cash and cash equivalents at the beginning of the period | 2,987,354 | 679,845 | ||||
| Cash and cash equivalents at the end of the period | 741,703 | 2,987,354 | ||||
| a) Reconciliation of net income / (expenditure) to net cash flow from operating activities |
||||||
| 2022 | 2021 | |||||
| Net income / (expenditure) for the reporting period | £ | £ | ||||
| (as per the statement of financial activities) | (2,428,664) | 2,419,829 | ||||
| Investment income | (4,397) | (23,842) | ||||
| Loss/ (Gain) on investments | 7,639 | 12,562 | ||||
| Decrease/(Increase) in debtors | 675,000 | (650,257) | ||||
| (Decrease)/Increase in creditors | (499,626) | 508,688 | ||||
| Net cash provided by / (used in) operating activities | (2,250,048) | 2,266,980 | ||||
| b) Reconciliation of net debt | ||||||
| As at 6 April 2021 |
Cash flows | Other non-cash changes |
As at 5 April 2022 |
|||
| Cash and cash equivalents | ||||||
| Cash at bank | 2,364,750 | (1,750,050) | - | 614,700 | ||
| Cash held by investment managers | 622,604 | (495,601) | - | 127,003 | ||
| Total | 2,987,354 | (2,245,651) | - | 741,703 |
Page 10
The John Browne Charitable Trust
Notes to the financial statements For the year ended 5 April 2022
The principal accounting policies which are adopted in the preparation of the financial statements are set out below;
A. Basis of accounting
The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The accounts (financial statements) have been prepared to give a ‘true and fair view’ and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather that the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Charity constitutes a public benefit entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
B. Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The charity has substantial reserves and retains control over its annual expenditure. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
C. Income
Donations receivable are accounted for as soon as their amount and receipt are reasonably certain. In the case of unsolicited donations this is usually only accounted for when they are received. All other income is accounted for under the accruals concept.
D. Expenditure
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category.
Charitable expenditure consists of the charitable grants made during the year.
Governance costs comprise all costs incurred in running the charity as a legal entity that cannot be directly allocated.
Page 11
The John Browne Charitable Trust
Notes to the financial statements (continued) For the year ended 5 April 2022
E. Investments
Fixed asset investments are valued at the current market value at the balance sheet date. Any unrealised gains or losses are credited/charged to the Statement of Financial Activities. Realised gains or losses on disposal of investments are included in the Statement of Financial Activities as they arise.
F. Taxation
The Charity is registered as a charity under the Charities Act 2011 and is not liable to UK tax on its charitable activities.
The Charity is not registered for VAT. Accordingly, expenses include VAT where applicable.
G.
Fund accounting
Funds held by the charity are unrestricted general funds which can be used in accordance with the charitable objects at the discretion of the trustees.
H.
Financial instruments
The charity has financial assets and liabilities of a kind that qualify as basic financial instruments, Basic financial instruments are recognised initially in the accounts at transaction price, including any transaction costs. At the end of each accounting period, basic financial instruments are recognised at amortised cost. For debt instruments this is calculated using the effective interest rate method.
I.
Critical estimates and judgements and key sources of estimation uncertainty
In the application of the Charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision effects both current and future periods.
Page 12
The John Browne Charitable Trust
Notes to the financial statements (continued) For the year ended 5 April 2022
1. Donations
| onations | ||
|---|---|---|
| Donation from founder Gift aid Other donations |
2022 £ £ 302,000 75,000 250 377,250 |
2021 3,000,000 750,000 500 |
| 3,750,500 |
2. Charitable activities Grant Making
Grants were made to the following institutions:
| Murray Edwards College Holocaust Educational Trust Donmar Warehouse Projects Ltd Just Like Us St John’s College Cambridge Fauna and Flora International The Courtauld Institute of Art Stanford Trust Art Fund Royal Opera House Horatio’s Garden Tate Gallery Tate Foundation International Rescue Ukrains Chelsea Physic Garden Other grants of less than £10,000 Governance and support costs (note 3) |
2022 £ 2,031,308 25,000 100,000 - 80,000 - - - - 5,250 - - 10,680 38,000 500,000 5,000 2,795,238 7,434 2,802,672 |
2021 £ 15,000 25,000 55,000 - 70,000 10,000 1,000,000 18,500 75,000 10,000 10,000 25,680 - - - 14,270 |
|---|---|---|
| 1,328,450 13,501 |
||
| 1,341,951 |
Page 13
The John Browne Charitable Trust
Notes to the financial statements (continued) For the year ended 5 April 2022
3. Support and governance costs
| Independent examination / Audit Other amounts payable to auditors Legal fees Insurance Bank charges |
2022 £ 2,500 2,000 2,195 302 437 7,434 |
2021 £ 5,000 3,688 4,130 335 348 |
|---|---|---|
| 13,501 |
No trustee received any remuneration or reimbursement of expenditure during the year (2021: £Nil). The charity is run by volunteers and the Founder’s office at no cost.
4. Debtors
5.
| Gift aid receivable Creditors Trade creditors Grants payable within one year Accruals |
2022 £ 75,000 75,000 2022 £ - - 12,000 12,000 |
2021 £ 750,000 |
|---|---|---|
| 750,000 | ||
| 2021 £ 4,128 500,000 7,500 |
||
| 511,628 |
6. Related party transactions
Total donations received from 1 (2021: 1) trustee amounted to £302,000 (2021: £3,000,000). There were no other related party transactions in the year (2021: none).
Page 14
The John Browne Charitable Trust
Notes to the financial statements (continued) For the year ended 5 April 2022
7. Fixed asset investments
| Market value At 6 April 2021 Additions Disposals Net investment gains/(losses) At 5 April 2022 Invested in: Cash Bonds At 5 April 2022 |
2022 £ 847,162 4,397 (500,000) (7,639) 343,920 2022 £ 127,003 216,917 343,920 |
2021 £ 336,200 3,040,211 (2,516,687) (12,562) |
||
|---|---|---|---|---|
| 847,162 | ||||
| 2021 £ 622,606 224,556 |
||||
| 847,162 |
Page 15