## **The Alborada Trust** Annual Report and Financial Statements Year Ended 31 December 2020 Registered Charity No. 1091660 **Report and financial statements for the year ended 31 December 2020** ## **The Alborada Trust** ## **Contents** ## **Page:** - 1 Reference and Administrative Information 2 Report of the Trustees 6 Independent Auditor’s Report 9 Statement of Financial Activities 10 Balance Sheet 11 Statement of Cash Flows 12 Notes to the Financial Statements ## **The Alborada Trust** ## **Reference and Administration Information** **for the year ended 31 December 2020** ## **Official Charity Name** The Alborada Trust ## **Charity Registration Number** 1091660 ## **Principal Office Address** Lanwades Stud Moulton Newmarket CB8 8QS ## **Trustees** Dr E K E Rausing Mr R Lerner Captain J Nicholson Mr R T A Goff Mr L Pillard Mrs A E Traub (appointed 15 March 2021) ## **Director** J Richardson OBE ## **Secretary** G Harris ## **Bankers** Bank Julius Bar, Bahnhofstrasse 26, CH-8010 Zurich ## **Auditors** BDO LLP, 55 Baker Street, London, W1U 7EU 1 **Report of the Trustees for the year ended 31 December 2020** ## **The Alborada Trust** The trustees present their report along with the financial statements of the charity for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out on pages 12 to 14 and comply with the charity's Trust Deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP 2[nd] Edition (FRS 102)). ## **Structure, Governance and Management** The Alborada Trust, a private philanthropic trust founded by Kirsten Rausing, is an unincorporated registered charity, established by a Deed of Trust dated 1 October 2001 and amended by a supplemental deed dated 5 March 2002. Under the terms of the Deed, the trustees shall hold the capital and the income upon trust to apply the income, and as far as necessary the capital, for or towards such charitable purposes and to make grants to such charitable bodies or institutions at such time or times and in such manner as the trustees may in their absolute discretion think fit. Trustees serve an indefinite term based on their relative experience and contribution to the charity as a whole. The trustees keep the skill requirements of the trustee body under review and in the event that a trustee retires or additional new trustees are required, the existing trustees collectively discuss the change. There is no formal induction or training of new trustees. However, appointment is by nomination and the trustees review the skills of each nominated person to select members with the relevant experience and skills. The power of appointment of new trustees is vested in and exercisable by the continuing trustees. At the trustees' meetings held during the year the trustees agree the strategy and areas of activity for the charity, including consideration of grant making, investment, reserves and risk management policies and performance. The trustees who served during the year and the principal address of the trust is detailed on page 1. ## **Risk Management** The trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks. The trustees consider market price risk and credit risk to be the most significant investment risks. Market price risk is managed by investment in a diverse portfolio managed by an independent fund manager. Credit risk is managed by investment in investment grade securities. In particular, the trustees have considered the risks presented by COVID-19 and consider the trust to be well positioned to mitigate these risks. The reserves comprising cash and investments together with a commitment from the founding trustee will enable the trust to meet its obligations as they fall due. 2 **for the year ended 31 December 2020** _**(continued)**_ ## **The Alborada Trust** ## **Report of the Trustees** ## **Objectives and Activities** The charity’s aims are the funding of medical and veterinary causes, research and education and for the relief of poverty and of human and animal suffering, sickness and ill-health. The main objectives for the year are shaped by these strategic aims with a view to continue funding chosen general charitable causes in line with the Trust Deed. ## **Grant Making Policy** The trustees' funds are fully committed and unsolicited applications are not requested. The trustees will donate the annual available income to approved charities and prefer to support grants to Charities whose work they have researched and which is in accordance with the aims and objectives of the charity for the year. The trustees request regular updates from those charities that they have supported to provide details of how the grants have been allocated and spent. Grants are only continued where the applicant provides sufficient relevant information to the trustees and satisfies the trustees that continuation of funding is in the interests of the charity and its aims and objectives. ## **Performance for the Year** The trustees try to predict the level of income that they expect to receive each year so that they can plan the level of grants for each financial year. Investment returns amounted to £111,023 (2019 - £783,598). The trustees distributed £4,765,373 (2019 - £4,905,340) by way of grants. The charity's income for the year ended 31 December 2020 included donations receivable, dividends and interest amounting to £6,325,988 (2019 - £10,112,930). Realised and unrealised losses on investments amounted to an overall gain of £85,035 (2019 - £670,668). The trusts’ net liabilities and total unrestricted reserves as at 31 December 2020 amounted to (£1,393,513) (2019 – (£4,883,554)). Additional funding will be provided by the founding trustee in order to meet liabilities as they fall due. The trustees report net income for the year of £3,498,270 (2019 - £9,008,024). ## **Reserves** The reserves policy of the trust is to ensure that at all times it has sufficient reserves to meet its commitments for the next three months. The charity like many grant making charities has very low fixed costs. The founding trustee funds the charity and makes donations from time to time to ensure that the charity can meet its grant obligations as they fall due. The net liability balance sheet at the year end arises as a result of awarding several multi-year grants. Since the year end the founding trustee has made additional donations to the charity to enable it to meet its commitments. 3 ## **The Alborada Trust** ## **Report of the Trustees** ## **for the year ended 31 December 2020** _**(continued)**_ ## **Financial Review** _(continued)_ ## **Investment Policy and Performance** The trustees have a balanced investment policy and aim to maintain free reserves in unrestricted funds at a level which is sufficient to wholly distribute the income of the trust fund whilst retaining capital for the maintenance and growth of the Fund. The trustees' policy is to invest the fund in secure markets, endeavouring to obtain a reasonable income, compatible with protection of the capital value involved and taking into account inflationary factors. With this in mind, the trustees have appointed the services of investment managers to guide and act for them on a professional basis. The trustees monitor the performance of the investments in line with their short and long term aims and objectives, as well as undertaking regular reviews with the investment managers at the trustees' meetings throughout the financial year. Investments are shown at market value rather than book cost in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities. The trustees confirm that the charity's assets are sufficient to fulfil its obligations in respect of unrestricted funds and that all investments held by them on behalf of the charity have been acquired in accordance with the powers available to them under the Trust Deed. ## **Plans for Future Periods** The trustees are mindful of the importance of animal welfare and related research together with projects dealing with the relief of poverty, human suffering, sickness or ill health throughout the world. They would like to continue their current line of support by providing grants to selected organisations. The Alborada Trust is a lasting testimony to the generosity and philanthropic concerns of the founding trustee. ## **Charity’s Public Benefit** The trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning future activities. This is evidenced by the contributions paid to registered charities totalling £4,765,373 (2019 - £4,905,340). ## **Going Concern** The trustees have reviewed the trust’s investments and operations in response to the impact of the Covid-19 pandemic. The budget for charitable activities in 2021 is, at this time, unaffected and based on a commitment from the founding trustee there will be sufficient cash resources available to meet pre-existing grant commitments and operations costs. The trust holds reserves to supplement income requirements to meet its charitable objectives as required. The trustees consider that there are no material uncertainties over the trust’s ability to continue as a going concern for the foreseeable future, being a period of at least 12 months from the date of signing the financial statements. 4 The Alborada Trust Rwrt of the Truste Stat•m•nt of Tvusteas, R•sponsibiliti The trustees are fesp)nsible for preparing the Report of the Irustoes and the financial statements in accordance th 8pplic8ble law and United lfjn>j￿n Accounting Standards (United lQ"ngdom Gonefally Accepted AGcounling Practicel, induding FRS 1(r2, the Financia Re￿￿ting Standard appliCa￿e in the UK and the Republic cl Irdand. The law applicable to chankn.es in EnglarKI and waes ￿UireS the truslees to prepare financial stat￿ents for each financial peri￿1 ￿lch gwe a true and fair view d the state (rf affai￿ of the trust and ￿ the inccming resources and the atplication d re9)urces of the trust for th* wc#J. In preparing these finarKial statanents, the trustees are required lo.. select suitable actsJJntirKJ pc4wJes arKI then appty them 0￿9￿9ntIy,. observa the methcés and principles in the Charities SORP make judg￿ents arKI ethates that we reay4Jth aThJ prLwknt: stste wthether applicab￿ ￿countIr￿j starKlards and statements crf rwnmendeo piacbce have teen follo*Bd, sul¥'ect to any m*rial depgrtures disclo*J arnl ewaned in the financial slatements; and prepare the finanaal ststanents ¢)n the g(xThJ C(K￿ern fAst's unless rt is inaFfKcyriate to presume that the chanty ¥*ill Continue in tw'ng. The trustees are resFKJnsible for keepiThJ proper accounting records %vhi¢h disdose with reagJnable aL￿UracY at any lime the financid F(Jsib"on d the trust and enable them to ensure that Ihe finanoal statements ccfflply with the Charitses Act 2011, the Charrty IAc(XNJnts and Re[￿rts) Regulations and the provisions of the trust'5 trust deed. They are alg) rewn*ble for safeguarding the assets of the In￿ arKI for t8king reasonable steps for the prevents.on and detects'on ￿ fraud arKI other irregularib"e& Approval This 14 June 2021 and sgned on rt5 behalf by". DrK Trustee u•ing ## **The Alborada Trust** ## **Independent Auditor’s Report To Trustees of The Alborada Trust** ## **Opinion on the financial statements** In our opinion, the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. We have audited the financial statements of The Alborada Trust (“the charity”) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions related to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 6 ## **The Alborada Trust** ## **Independent Auditor’s Report To Trustees of The Alborada Trust** _**(continued)**_ ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 require us to report to you if, in our opinion; - the information contained in the financial statements is inconsistent in any material respect with the Trustees’ Annual Report; or - adequate accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the Statement of Trustees’ Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. ## _Extent to which the audit was capable of detecting irregularities, including fraud_ Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and the sector within which it operates. This included but was not limited to compliance with the Charities Act 2011, United Kingdom Accounting Standards, and tax legislation; - We held discussions with management, including consideration of known or suspected instances of noncompliance with laws and regulations and fraud; - We requested and reviewed any regulatory correspondence, in particular compliance with the Charity Commission, and details of legal expenses; 7 ## **The Alborada Trust** ## **Independent Auditor’s Report To Trustees of The Alborada Trust** _**(continued)**_ - We addressed the risk of management override, in particular by testing any journal entries containing material or round sum amounts, and any irregular journals; - We have considered the control environment both at the entity level and at the financial statement level including its ability to detect and prevent fraud and error; and - We reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations that have a direct effect on the financial statements. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. Heather Wheelhouse (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor London, UK 14 June 2021 BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). 8 ## **The Alborada Trust** ## **Statement of Financial Activities (incorporating the Income and Expenditure account) for the year ended 31 December 2020** |||**Total**|**Total**| |---|---|---|---| |||**unrestricted**|**unrestricted**| |||**funds**|**funds**| |||**2020**|**2019**| ||**Note**|**£**|**£**| |**Income from:**|||| |Donations||**6,300,000**|10,000,000| |Investments|2|**25,988**|112,930| |||**_________**|_________| |**Total income**||**6,325,988**|10,112,930| |||**_________**|_________| |**Expenditure on:**|||| |Raising funds|4|**(21,423)**|(49,909)| |Charitable activities|5|**(2,890,858)**|(1,725,665)| |||**_________**|_________| |**Total expenditure**||**(2,912,281)**|(1,775,574)| |||**_________**|_________| |**Net income before gains**||**3,413,707**|8,337,356| |Net gains on investments|7|**85,035**|670,668| |||**_________**|_________| |**Net income**||**3,498,742**|9,008,024| |Losses on foreign exchange||**(8,701)**|(34,350)| |||**_________**|_________| |**Net movement in funds**||**3,490,041**|8,973,674| |||_________|_________| |**Total funds brought forward**|12|**(4,883,554)**|(13,857,228)| |||**_________**|_________| |**Total funds carried forward**||**(1,393,513)**|(4,883,554)| |||_________|_________| All amounts relate to unrestricted funds and to continuing activities. There were no recognised gains or losses other than those stated above and therefore those stated above represent total comprehensive income. The notes on pages 11 to 19 form part of these accounts. 9 The Alborada Trust Balan￿ Shoot at 31 December 2020 2020 2020 2019 2019 Fixed assets Investments 8,126,445 6.786,662 Current assets Debtors Cash at bank 8.922 8.682 14 9,518 Total current assets 17,604 9.532 Liabilities AJnounts fallin9 due Wbthin or year 13.542,562 13,276.1101 Net current liabilitie8 {3,524,9581 13,266.5781 Amounts falling due knr one year 10 {6.996.0001 18,403,638) Total net liabilities 14 11,393.513) {4,883,5541 Tho Fund8 of the Chaffty: Unrestricted funds 12 11.393.513 14,883,554> The finan on their st*rnents V4Ere by the trustees and aulh)n"sed for issue on14 June 2021 and ggned h4f ty. Ing Tmstee The notes on pages 11 to 19 fonn Fwrt ￿ these accounts. 10 ## **The Alborada Trust** ## **Cash flow statement for the year ended 31 December 2020** |**Note**
**Cash flows from operating activities:**
**Net cash provided by operating activities**
(a)
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Proceeds from sale of investments
Purchase of investments
**Net cash provided by/(used) in investing activities**
**Change in cash and cash equivalents in the reporting period**
Cash and cash equivalents at the beginning of year
**Cash and cash equivalents at the end of year**
(b)
**(a) Reconciliation of net income to net cash flow from operating activities**
**Net income for the reporting period**
**(as per the Statement of financial activities)**
Adjustments for:
Gains on investments
Dividends, interest and rents from investments
Increase in debtors
Decrease in creditors
Net cash provided by operating activities
**(b) Analysis of cash and cash equivalents**
Cash at bank and in hand
Cash held by investment manager
**Total cash and cash equivalents**|**2020**
**2019**
**£**
**£**
**1,144,023**
5,249,397
**_________**
_________
**25,988**
112,930
**4,449,361**
7,122,827
**(234,112)**
(11,782,913)
**_________**
_________
**4,241,237**
(4,547,156)
**_________**
_________
**5,385,260**
702,241
**717,586**
15,345
**_________**
_________
**6,102,846**
717,586
_________
_________
**2020**
**2019**
**£**
**£**
**3,490,041**
8,973,674
**(168,936)**
(553,671)
**(25,988)**
(112,930)
**(8,908)**
(14)
**(2,142,186)**
(3,057,662)
**_________**
_________
**1,144,023**
5,249,397
_________
_________
**2020**
**2019**
**£**
**£**
**8,682**
9,518
**6,094,164**
708,068
**_________**
_________
**6,102,846**
717,586

| |---|---| The notes on pages 11 to 19 form part of these accounts. 11 ## **The Alborada Trust** **Notes forming part of the financial statements for the year ended 31 December 2020** ## **1 Principal accounting policies** ## _Basis of preparation_ The financial statements have been prepared under the historical cost convention, as modified by the revaluation of fixed asset investments, and 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) (effective 1 January 2019) (Charities SORP 2[nd] Edition (FRS 102)), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements are prepared in sterling, being the functional currency of the entity, and have been rounded to the nearest pound. The trust constitutes a public benefit entity as defined by FRS 102. ## _Estimates and judgements_ The preparation of the financial statements requires the trustees to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on the trustees' best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. The trustees’ consider that there are no key sources of estimation uncertainty. The following accounting policies have been applied: ## _Going Concern_ The trustees have reviewed the trust’s investments and operations in response to the impact of the Covid-19 pandemic. The budget for charitable activities in 202 is, at this time, unaffected and based on a commitment from the founding trustee there will be sufficient cash resources available to meet pre-existing grant commitments and operations costs. The trust holds reserves to supplement income requirements to meet its charitable objectives as required. The trustees consider that there are no material uncertainties over the trust’s ability to continue as a going concern for the foreseeable future, being a period of at least 12 months from the date of signing the financial statements. ## _Investments_ Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using their closing quoted market price. The main form of financial risk faced by the trust is that of volatility in the investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors of sub-sectors. ## _Gains/losses on Investments_ All gains and losses are taken to the Statement of Financial Activities as they arise. Unrealised gains and losses on investment assets represent the difference between their fair value at the end of the year and their fair value at the beginning of the year, or transaction value if acquired during the year. Realised gains and losses on disposal of investment assets represent the difference between the sale proceeds and the fair value at the beginning of the year, or transaction value if acquired during the year. 12 **Notes forming part of the financial statements for the year ended 31 December 2020** _**(continued)**_ ## **The Alborada Trust** ## **1 Accounting policies** _(continued)_ ## _Income_ Income is stated on a receivable basis. Income received by way of donations is included in full in the Statement of Financial Activities when receivable. Investment income is credited gross to the Statement of Financial Activities on the date it becomes receivable. ## _Expenditure_ All expenditure is accounted for on an accruals basis, and is allocated to the appropriate heading in the accounts. Expenditure includes any related VAT and this is reported as part of the expenditure to which it is related. Charitable expenditure comprises those direct costs incurred by the charity in the delivery of its activities and services to its beneficiaries and are provided for when approved by the trustees. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fee and any costs linked to the strategic management of the charity. The trustees deem the governance costs to be the only support costs of the trust. Charitable donations are grants payable to third parties in the furtherance of the charitable objectives of the trust. Grants are paid at the discretion of the trustees and are accounted for where the trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grants outside the control of the trust. ## _Taxation_ The trust is a registered charity and as such is entitled to tax emptions on income and gains properly applied for its charitable purposes. ## _Fund accounting_ The unrestricted general funds are those funds that are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. ## _Debtors_ Debtors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. ## _Creditors_ Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount. 13 ## **The Alborada Trust** ## **Notes forming part of the financial statements for the year ended 31 December 2020** _**(continued)**_ ## **1 Principal accounting policies** _(continued)_ _Basis of Accounting (continued)_ _Cash and cash equivalents_ Cash and cash equivalents consist of cash on hand and balances with banks, and investments in money market instruments which are readily convertible, being those with original maturities of three months or less. ## _Financial instruments_ The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. |**2**
**Investment Income**
Income from listed securities
Deposit interest income
**3**
**Net income**
Net income is stated after charging:
Auditors remuneration – audit
Auditors remuneration – accountancy and other services
**4**
**Expenditure on Raising Funds**
Investment management fees
Commission and other charges|**2020**
**£**
**25,667**
**321**
**_________**
**25,988**
_________
**2020**
**£**
**10,000**
**6,299**
_________
**2020**
**£**
**13,020**
**8,403**
**_________**
**21,423**
_________|**2019**
**£**
109,291
3,639
_________
112,930
_________
**2019**
**£**
8,000
3,560
_________
**2019**
**£**
18,620
31,289
_________
49,909
_________| |---|---|---| Expenditure on raising funds was fully unrestricted in the current and previous year. 14 ## **The Alborada Trust** **Notes forming part of the financial statements for the year ended 31 December 2020** _**(continued)**_ ## **5 Expenditure on Charitable activities** |Grants
Governance costs:
-
Audit and accountancy fees
-
Trust administration expenses
-
Legal and secretarial fees
-
Consulting fees
**Staff costs**
Wages and salaries
Social security|**2020**
**£**
**2,797,219**
**18,299**
**57,994**
**2,346**
**15,000**
**_________**
**2,890,858**
_________
**2020**
**£**
**50,000**
**4,850**
**_________**
**54,850**
_________|**2019**
**£**
1,663,875
14,173
36,057
1,560
10,000
_________
1,725,665
| |---|---|---| |||_________
**2019**
**£**
33,000
-
_________
33,000
_________| ## **6 Staff costs** The trust had two employees during the year (2019 - one). No employee received remuneration greater than £60,000 during the year. Trustees are considered to be key management personnel and no trustee received remuneration or purchased indemnity insurance in the year. During the year, no trustees were reimbursed for any expenses (2019 - one trustee incurred expenses of £404 in total relating to travel expenses). ## **7 Investments** The portfolio is structured to provide a wide range of diversification to protect the trust’s assets, and to produce a balance of income and capital growth in accordance with benchmarks agreed with the investment manager. |Market value brought forward
Additions
Disposal proceeds
Net realised and unrealised gains
Exchange loss
Market value carried forward (excluding cash)
Cash under management
Market value carried forward
Historical cost carried forward|**2020**
**£**
**6,078,594**
**234,112**
**(4,449,361)**
**85,035**
**83,901**
**_________**
**2,032,281**
**6,094,164**
_________
**8,126,445**
_________
**8,057,420**
_________|**2019**
**£**
864,837
11,782,913
(7,122,827)
670,668
(116,997)
_________
6,078,594
708,068
_________
6,786,662
_________
5,794,621
_________| |---|---|---| 15 ## **The Alborada Trust** ## **Notes forming part of the financial statements for the year ended 31 December 2020** _**(continued)**_ |**7**
**Investments** _(continued)_
**Investments comprise:**
Fixed income securities (Listed)
Funds
Equities (Listed)
Private equity
Cash|**2020**
**£**
**6,526**
**54,495**
**1,962,316**
**8,945**
**6,094,163**
**_________**
**8,126,445**
_________|**2019**
**£**
5,644
56,273
6,007,654
9,023
708,068
_________
6,786,662
_________| |---|---|---| Investments representing over 5% by value of the Investment portfolio (excluding cash under management) comprise: |**Holding**
ETF I Shares GBP Corporate Bond 0-5 Year
2,500
ETF I Shares USD Short Corporate Bond
6,500
ETF I Shares USD Treasury Bond 3-7 Year
6,866
**8**
**Debtors**
**Debtors due after more than one year**
Prepayments and accrued income
**Debtors due within one year**
Prepayments and accrued income
Trade debtors
**9**
**Creditors: amounts falling due within one year**
Grants payable (see note 11)
Accruals|**2020**
**£**
**269,585**
**498,395**
**713,721**
**2020**
**£**
**2,600**
**6,152**
**170**
**_________**
**8,922**
_________
**2020**
**£**
**3,529,815**
**12,747**
**_________**
**3,542,562**
_________|**%**
13%
25%
35%
**2019**
**£**
-
14
-
_________
14
_________
**2019**
**£**
3,089,331
186,779
_________
3,276,110
_________| |---|---|---| 16 ## **The Alborada Trust** ## **Notes forming part of the financial statements for the year ended 31 December 2020** _**(continued)**_ ## **10 Creditors: amounts falling due after one year** |Grants payable (see note 11)
**Grants payable**
Amounts due:
Within one year
After one year
Balance at 1 January 2020
Grants awarded in the year
Grants paid in the year
Balance at 31 December 2020|**2020**
**£**
**5,995,000**
_________
**2020**
**£**
**3,529,815**
**5,995,000**
**_________**
**9,524,815**
_________
**11,492,969**
**2,797,219**
**(4,765,373)**
**_________**
**9,524,815**
_________|**2019**
**£**
8,403,638
_________
**2019**
**£**
3,089,331
8,403,638
_________
11,492,969
_________
14,734,434
1,663,875
(4,905,340)
_________
11,492,969
_________| |---|---|---| |**11**|Grants payable (see note 11)
**Grants payable**
Amounts due:
Within one year
After one year| |---|---| Movement of Grants in the year: ||**Balance bfwd**|**Amount**||**Balance cfwd**| |---|---|---|---|---| ||**1 January**|**awarded/**|**Amount paid in**|**31 December**| ||**2020**|**adjusted in year**|**the year**|**2020**| |Action AID – Cyclone Idai|240,000|-|(120,000)|120,000| |Action AID - Rohingya|84,814|-|(84,814)|-| |Addenbrookes Charitable Trust||262,000|(262,000)|-| |Animal Health Trust|300,000|-|(300,000)|-| |Anne Robson Trust|30,000|-|(30,000)|-| |ARUK – The Alborada Drug|3,000,000|-|(1,000,000)|2,000,000| |Discovery Institute||||| |Brooke Hospital for Animals|250,000|-|(250,000)|-| |David Shepherd Wildlife|-|100,000|(100,000)|-| |Foundation||||| |East Anglia Air Ambulance|30,000|(5,000)|(25,000)|-| |Great Ormond Street|-|200,000|-|200,000| |Horatios Garden|-|75,000|-|75,000| |Injured Jockeys Fund|180,000|-|(180,000)|-| |Inspire Suffolk Ltd|-|25,000|(25,000)|-| |International Spinal Research|100,000|-|(100,000)|-| |Trust||||| |Kings Global Healt Partnerships|-|50,000|-|50,000| |Maggie’s|-|45,000|(45,000)|-| |Médecins Sans Frontières|169,191|97,827|(267,018)|-| |Multiple Sclerosis Society|200,000|-|(100,000)|100,000| |Murray Edwards College|-|105,000|-|105,000| |New Beginnings|-|27,600|(27,600)|-| |Newmarket Day Centre CIO|-|20,000|(20,000)|-| ||**_________**|**_________**|**_________**|**_________**| |**Balance c/fwd**|**4,584,005**|**1,002,427**|**(2,936,432)**|**2,650,000**| 17 ## **The Alborada Trust** ## **Notes forming part of the financial statements for the year ended 31 December 2020** _**(continued)**_ Movement of Grants in the year (continued) |||**Balance bfwd**|**Amount**||**Balance cfwd**| |---|---|---|---|---|---| |||**1 January**|**awarded/**|**Amount paid in**|**31 December**| |||**2020**|**adjusted in year**|**the year**|**2020**| |**Balance b/fwd**||**4,584,005**|**1,002,427**|**(2,936,432)**|**2,650,000**| |Plan (UK)||-|56,500|(56,500)|-| |Qest||6,000|-|(6,000)|-| |RVC – De Mestre||15,963|- 270|(15,693)|-| |RVC Veterinary Research||-|299,756|–|299,756| |SCI Nurse Specialist||-|25,000|(25,000)|-| |Southern
Thailand
Elephant
Foundation||-|19,500|(19,500)|-| |St John Ambulance||-|105,000|(105,000)|-| |Stroke Association||-|57,956|(57,956)|-| |Suffolk Community Foundation||-|25,000|(25,000)|-| |The ALBORADA Professorship,
Cambridge||2,535,000|-|(274,000)|2,261,000| |The Country Food Trust||-|20,000|(20,000)|-| |The Princes Trust||-|145,673|–|145,673| |The Racing Centre||-|20,000|(20,000)|-| |The Racing Foundation||-|200,000|(200,000)|-| |The Soulsby Foundation||125,000|-|(25,000)|100,000| |The Wavertree Charitable Trust||80,000|-|(10,000)|70,000| |University of Cambridge (Africa
Project)||3,100,000|-|(500,000)|2,600,000| |University of Cambridge|||||| |(Research support for the||-||(189,292)|189,292| |Cambridge Movement Initiative)|||378,584||| |University of Cambridge (Stem
Cell)||-|360,000|(120,000)|240,000| |University
of
Cambridge
James Wood|Dr||100,000|–|100,000| |University of Surrey - The|||||| |ALBORADA Trust Well Foal||87,001|(17,907)|–|69,094| |Study|||||| |Wolfson College Cambridge||960,000||(160,000)|800,000| |||**_________**|**_________**|**_________**|**_________**| |**Total**||**11,492,969**|**2,797,219**|**(4,765,373)**|**9,524,815**| |||**_________**|**_________**|**_________**|**_________**| 18 ## **The Alborada Trust** **Notes forming part of the financial statements for the year ended 31 December 2020** _**(continued)**_ ## **Grant movement in the prior year** ||**Balance**|**Amount**|**Amount**|**Balance cfwd**| |---|---|---|---|---| ||**bfwd 1**|**awarded/**|**paid in the**|**31 December**| ||**January 2019**|**adjusted in year**|**year**|**2019**| |Action AID – Cyclone Idai|50,000|360,000|(170,000)|240,000| |Action AID - Rohingya|183,206|-|
(98,392)|84,814| |Action Against Hunger|-|160,000|(160,000)|-| |Addenbrookes Charitable Trust|-|396,501|(396,501)|-| |Animal Health Trust|400,000|-|
-|300,000| |Anne Robson Trust|-|30,000|–|30,000| |ARUK – The Alborada Drug Discovery
Institute|4,000,000|-|(1,000,000)|3,000,000| |Bill Tutte Memorial Fund|-|25,000|(25,000)|-| |Brooke Hospital for Animals|500,000|1,848|(251,848)|250,000| |David Shepherd Wildlife Foundation|-|94,462|(94,462)|-| |East Anglia Air Ambulance|30,000|–|–|30,000| |HEROS|-|
25,000|(25,000)|-| |Injured Jockeys Fund|480,000|20,000|(320,000)|180,000| |International Spinal Research Trust|-|100,000||100,000| |Kennet Church, Newmarket|10,000||(10,000)|-| |Lund University|100,000||(100,000)|-| |MAGPAS Air Ambulance|25,000||(25,000)|-| |Médecins Sans Frontières|449,196|165,149|(445,154)|169,191| |Mercy Ships|35,000|-|
(35,000)|-| |Multiple Sclerosis Society|282,280||(82,280)|200,000| |Qest|6,000|||6,000| |Racing Welfare|50,000||(50,000)|-| |Riding for the Disabled Association|25,000||(25,000)|-| |Royal College of Veterinary Surgeons|27,850|15,963|(27,850)|15,963| |RVC – De Mestre|68,718|10,670|(79,388)|-| |RVC - Josh Slater|53,276|1,282|(54,558)|| |Southern
Thailand
Elephant
Foundation|25,000||(25,000)|-| |Tearfund|-|50,000|(50,000)|-| |The
ALBORADA
Professorship,
Cambridge|2,799,000||(264,000)|2,535,000| |The British Racing School|10,000||(10,000)|-| |The Horse Trust|40,000||(40,000)|-| |The Racing Centre|25,000||(25,000)|-| |The Soulsby Foundation|-|125,000||125,000| |The Virtual Doctors|-|40,000|(40,000)|-| |The Wavertree Charitable Trust|90,000||(10,000)|80,000| |Unity Schools Partnership|-|18,000|(18,000)|-| |University of Cambridge (Africa Project)|3,600,000||(500,000)|3,100,000| |University of Surrey - The ALBORADA
Trust Well Foal Study|199,908||(112,907)|87,001| |Wolfson College Cambridge|1,120,000||(160,000)|960,000| |World Horse Welfare|-|25,000|(25,000)|-| |Worshipful Company of Barbers|50,000||(50,000)|-| ||**_________**|**_________**|**_________**|**_________**| |**Total**|**14,734,434**|**1,663,875**|**(4,805,340)**|**11,492,969**| ||**_________**|**_________**|**_________**|**_________**| 19 ## **The Alborada Trust** **Notes forming part of the financial statements for the year ended 31 December 2020** _**(continued)**_ |**12**
**Funds**
**At 1 January**
**2020**
**Incoming**
**resources**
**Outgoing**
**Resources**
**Gains/(Losses)**
**At 31**
**December 2020**
**£**
**£**
**£**
**£**
**£**
Unrestricted Funds
(4,883,554)
6,325,988
(2,912,281)
76,334
**(1,393,513)**
**At 1 January**
**2019**
**Incoming**
**resources**
**Outgoing**
**Resources**
**Gains/(Losses)**
**At 31**
**December 2019**
**£**
**£**
**£**
**£**
**£**
Unrestricted Funds
(13,857,228)
10,112,930
(1,775,574)
636,318
**(4,883,554)**
**13**
**Analysis of net Assets between Funds**
**2020**
**Unrestricted**
**2019**
**Unrestricted**
**£**
**£**
Investments
**8,126,445**
6,786,662
Net current assets
Liabilities due in more than one year
**(3,524,958)**
**(5,995,000)**
(3,266,578)
(8,403,638)
**_________**
_________
**(1,393,513)**
(4,883,554)
_________
_________
**14**
**Analysis of net debt**
**At 1 January**
**2020**
**Cash flows**
**Foreign**
**Exchange**
**At 31**
**December 2020**
**£**
**£**
**£**
**£**
Cash at bank and in hand
9,518
(836)
-
**8,682**
Cash held in investments
708,068
5,472,617
(86,521)
**6,094,164**
_________
_________
_________
**_________**
717,586
5,471,781
(86,521)
**6,102,846**
_________
_________
_________
**_________**|**At 1 January**
**2020**
**Incoming**
**resources**
**£**
**£**
(4,883,554)
6,325,988|**Outgoing**
**Resources**
**£**
(2,912,281)|**Gains/(Losses)**
**At 31**
**December 2020**
**£**
**£**

76,334
**(1,393,513)**| |---|---|---|---| ||**At 1 January**
**2019**
**Incoming**
**resources**
**£**
**£**
(13,857,228)
10,112,930|**Outgoing**
**Resources**
**£**

(1,775,574)|**Gains/(Losses)**
**At 31**
**December 2019**
**£**
**£**

636,318
**(4,883,554)**| ## **15 Related party transactions** The trust received a donation of £6,300,000 (2019: £10,000,000) from Dr K E Rausing, trustee, during the year. 20