Registered company numbor 04601338 Rggi$tered charity number 1099709 The James Dyson Foundation Annual report and financial statements for the year ended 31 December 2022 THE JAMES DYSON FOUNDATION The James Dyson Foundation Annual report and financial statements for the year ended 31 December 2022 Contents Trustees, directors. offI￿[S and advi5ry5 Trustees, rewrt for the year ended 31 December 2022 Independent 8uditorfs report to the members ofThe James Dyson Foundation Statement of financial aclivibes 13 Balance sheet 14 Statement of cash ftows 15 Notes lo the financial statements for the year ended 31 t)￿mber 2022 16 The James Dyson Foundation Trustees, directors, officers and advisors Registergd charity name The James Dyson Foundation Charity number 1099709 Company registration number 04601338 (England and Wales) Registered address Tetbury Hill Malmesbury Wiltshire United Kingdom SN160RP Trustees and dlrectors Sir J Dyson Lady D Dyson V Wesl Foundation managor Lydia Beaton (resigned 30th June 20221 Juliet Charman (appointed 1st January 20231 Independent auditor Crowe U.K LLP Slalutory Auditor 4th Fl¢)or Sl James House St James Square Chellenham GL50 3PR Bankers Lloyds Bank pic 55 Com Street Brsstol BSI 1HT The James Dyson Foundation Trustees, report for the year ended 31 December 2022 The Trustees. who are also directo￿ for the purposes of company law, present their report and the audited financial statements of The Jame5 Dyson Foundation l-the Foundation". "JDF" "the Charity") for the year ended 31 December 2022. Reference and administrntive details Reference and administrative details are shown in Ihe schedule of Trustees. directors, officers and advisors on page 1. The financial statements comply with the MemorarKlum 8nd Art￿leS of Assoryal￿n and are prepared in a￿ordan￿ with Accounting and Reporting by Charities: Sl8tement of Recommended Practice applicable to charities preparing their accounts in aecordance with the Financial Reporting Standard appluble in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191- (Charities SORP IFRS 1021), the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102), the Companies Act 2006 and the Charities Act 2011. The James Dyson Foundation is a charitable company limited by guaranlee Iregi51ration number 046013381 and a charity registered wilh the Charity Commission Iregislralion number 10997091. Structur•. governance and management Governing document The Foundalion is govemed by its Memorandum and Articles of ASS￿latIon dated 26 November 2002 and amended on 1 Seplember 2003. Govemance of the Foundation The year under review is Ihe nineleenlh OFeraling and accounting period of the Foundation during wh the Trustees met twi￿ to review Ihe Foundation's policies and procedures. As the activities of the Foundation have grown. Ihe TnJ51ees have decided on a schedule of tsvo meetings per year, supplemented by additional email upyales and meetings as necessary. A financial expert is also in attendance al these meetings lo advise the Trustees on financial matters. The Trustees have delegated the day lo day running of the Foundation lo Ihe Global Head of the James Dyson Foundation. Juliel Charman, and her team. Financial and accounting support is provided by the Vveyboume Limited team located in Malmesbury. Pay and remuneration of Key Management Personnel is reviewed each year and goe5 through an internal and extemal benchmarking process. The salaries are then agreed through Ihe budget prO￿sS at the Trustee's meeting. The Trustees have reviewed the Charbty Govemance Code and are aware of their responsibililies. The Charity Governan￿ Code will be made available lo new Trustees. Recruitment and trainffng of Trustees Members of the Board of Trustees are appointed by the whole Board to provide the skills identified as being necessary for the good govemance of Ihe Foundation. The Trustees who served during the year are listed on page 1. The Trust￿ are fulty aware of Iheir responsibilities under charity and company law having received inlom1al￿n in Ihe form of written documentation and through a Pfesenlalion on Trustee duties and obligations gwen by the Foundalion's extern81 advisers. 11 is intended that this will be made available lo all newly appointed Trustees as well. New Tru51ees are prowded with the Foundation's goveming document and late51 guidance from the Charity Commission. Risk management In light of the governance guidance contained within the Charity G0Veman￿ Code. with the informalion available online, the Global Head of the James Dyson Foundatson lon behatt of the Trusleesl reviews the major slralegic. business and operational risks lo whth the Foundation is exposed. A risk register is maintained using the platfomi 'CGR Foundation. and rev￿ed by the Head of Risk and Audit for Vveyboume Ltd. on behalf of the James Dyson Foundation. The James Dyson Foundation Trustees, report for the year ended 31 December 2022 (continued) Systems have been established to miligale those risks and procedures implemented lo minimise any potential impact on the Foundation should any of those risks malerialise. The principal risks and miligalion actions include- Decline in income from donations: Dyson cornmils a charitsble gift lo the James Dyson Foundation annually and builds this pledge on their balance sheet. A budget and anticipated spend is subrn￿ed by the JDF to Dyson's finance team for Dyson Board approval in advance of spend. This is supported by a personal letter of support from Sir James Dyson to hon¢)ur any obligation5 made by the charity if Dyson is unable lo donate S￿￿￿1entty. Loss of key staff. Business conlinuty documents are kept up to dale. as well as a shared document drive. Appropriate notice periods are slipulaled in employment contracts and there is succession planning wod( undertaken. Reputational damage- The James Dyson Foundallon team works dosety wilh the Dyson communications team. Weyboume leadership and a charity lawyer who collectively provide guidan￿ on repulalion. Charity Commission and g0Veman￿ code guidance is folk)wed on all activities to ensure work Is eafried out lo a high slandard and in compliance with the Lqw and relevant regulation, in tum avoiding repufalional risk. Loss of confidential infom)atlon: The James Dyson Foundation is fully supported by the Weyboume IT team. and therefore benefits from the same cyber securtty policie5 and Procedu￿$. Fraudulent activty: The James Dyson Fovndalion is frJlly supported by the Weyboume finance team. and therefore benefits from the same financial controls and ￿urities such as segmentslion of duties and formal delegated authority prolocol5. Relatedparty transactions The Foundation's principal donor is Dyson Jarnes Group Limited. Sir James ljyson, a Trustee of the Foundation, is the controlling paty of ttyson James Group Limited (see note 16}. Financial risk management Price risk The Foundation receives donations from Dyson Jame5 Group Limited based up)n ils budgets to finan the Foundation's aciNlties and incorporales this infomialion into ils business plans. This process is reviewed annually. Prices of materials purchased are sutr4.ect lo contracts with suppliers. based on curtenl markel prices. Credit nsk Credit risk on amounts owed to the Foundation is low. as its prinrypal Source of funds is Dyson Jarnes Group Limited. Liquidity risk The Foundation matches commrtments to its creditors with the expected liming of cash receipts in respect of donations from its principal benefactor Dyson James Group Limited. Dyson James Group Limited has undertaken to provide fvnds to the Foundation lo meet its liquidity requirements. Interest tste and cash flow risk The Foundation pfaces surplus funds on short term deposit with Lloyds Bank. The James Dyson Foundation Trustees, report for the year ended 31 December 2022 (continued) Objectives and activities The primary objects of the Foundation. as stated in its goveming document, a￿ as follows.. To advance education and tfdining. part￿UlartY in Ihe fields of design, engineering and technology. This work tske a number of fomis including the free provision of svpport resources for teachers of design and technology in schools. the running of desHJn engineering workshops and leelures in SelK￿lS and universities. as well as bursary schemes and collaborative projects. To support medical and sctenlific research. To support charitable and edUcath￿al projects in Ihe region in which The James Dyson Foundation operates. The statement of financial activities for the year ended 31 December 2022 is sel out on page 13 of the financial statements. A summary of the financkql resulls and Ihe work of the Foundation during the ye8r afe set out on pages 4 to 7. Grant making policy Grants are delemined by the Tnjstees in accordan￿ with the obj.eth of Ihe Foundation. Applications for grants are consideied by the Foundation team who make recommendations lo the Trustees in line with Foundalion objectives. Achièvements and perfomiance The Foundation's income was £3.143.30712021.. £1.112.827}. The Foundation thanks all its supporters for their work and generosity, particularly Dyson James Group Limiled. its main benefactor. The Foundation's main a¢tiviti•s vftre as follows". In 2022. the James Dyson Award ran in 29 countries and regions. The award is the James Dyson Foundation's inlemational design competilion. 11 celebrates. encourages. and inspires the next generation of deswJn engineers. To en￿Urage entn.es into the eompelilion hundreds of Workshops and presentations were given to sludenls at unNersities around the globe. 1.648 student enlfies were received. The international winner of the Award was SmartHEAL. a smart sensor for dre5sing5 whith indicates how well a wound is healing by measuring rts pH level. invented by students from Warsaw University of Technology, Poland. The Suslainabilty winner was Potyformer, a machine that recycles plastic bottles into affordable 3D printer filament for developing nations. invented by students from McM851er University. Canada. Both winners re￿iVed £30.000 cash prizes lo supwt the further devekjpment of their inventions. The competition gathered global inlefest from Ihe press. wilh ￿verage in major media outlets such as Reuters. BBC News, The Evening Standard, Design Week and Poland's Polsat lelevision channel. In total. more than 2.000 ple￿$ of coverage were generated atongside extensNe social media engagement. milltons of peopl& a powerful way lo expand the posilNe message of ersgineering. Since the s18rt of the competition. 70% of past intemalional winnets are now commercialising their inventions, amid a backdrop where 90% of stsrt-ups fail. The James Dyson Foundation Trustees, report for the year ended 31 December 2022 (continued) 1.5 million students across the world were inspired about engineering through free educational resources b8sed on Dyson's approach to engineering in 2022. These resources gNe an insight into the life of a working engineer. The resources are free lo order and download from the James Dyson Foundation website. The Foundalion's educatKJnal resource. Engineering solutions.. Air pollution, was delivered lo schools across eight countries. The resource educates students on how engineering can solve global problems. focusing on air ptrlluiion. As part of this over 250 air pollution monitoring deviees which sludents build lo monitor air quality around their school, were donated to schools auoss the UK. US and SEA. Over 1000 educational englneoring workshops were delivered. reaching 1 mllllon students. This included rapid prototyping workshops that challenge students lo design and build solutions lo air pollution as well as everyday problems in a home or school environment- robotics workshops that challenge sludenls lo code robots to navigate a space- and workshops at universitie5 across 29 countries and wions lo inspire students to enter the James Dyson Award. The Foundation also participated in large scale STEAM events challenging young people to get hand5-on with engineering challenges. These workshops and events were sUpp￿ted by over 400 Dyson engineers and people. Scholarships were awarded to students at the Universtty of Cambridge. Scholarships were given lo four slsjdents al Murray Edwards College at Ihe University of Cambridge lo provide financial support to female engineering students. A third PhD sludenl was awarded a scholarship al Corpus Christi College at the Unsversity of Cambrtdge to support their research into Agri-Robotics. The Foundation also awarded six project bursaries to students studying engineering al the Dy50n Centrefor Engineering Design al Cambrtdge Universty. A £1million donation was made to expand support forthe Race Against Dernentia Dyson Fellow. Dyson fellow, Dr Claire Durranl, is investigating the role of Tau. a protein in the brain. in keeping Ihe connections between brain ￿11$ heallhy. and how these change in Patients suffering frorn Alzheimer's disease. In 2022 the Foundation made a £1 m donabon lo accelerale Dr Durranl's pioneering research investigating the effect of drugs and other factor5 on dementia using wasle human brain tissue samples obtained. with the permission of the palienL from brain tumour operations. This further funding has enabled Dr Durranl to hiTe support staff and advanced eqyipment to increase her access lo human brain tissue samples and maximise her anatysis of these Samples over a Ihree-year period. Over 30 local charitsble pro5e¢ts were supported in Malmesbury UK. as part of the Foundation's annual community support fund, including Malmesbury Food Bank. Malmesbury Camival. local schools. hospitsls and youlh clubs. In the US, nearly 2.500 school students were reached through in person and virtual engineering workshops, giving them a glimpse into the exciting worfd of engineering. A lolal of $20k was donated lo Chicago schools providing students with engineering and science enrichment opportunities. And S88k was raised for the Foundation's local charity partner. Project Exploration. by Dyson people with the support of Foundation match-funding. In Asia Pacific, over 200 engineering educalion talks and workshops were held across China, Japan. Malaysia. Singapore and Philippines reaching over 700.000 students from primary to university level. The Foundation conbnued its collaborab.on with Singapore's educational instilutions spollighling Dyson technology and the James Dyson Award al the Singapore Saence Cent￿. reaching 1 million sehool sludenis in 2022. 11 also opened the Dyson-SUTD Innovation Studios, at the Singapore University ot Teehnology and DesvJn. creating a multidisciplinary engineering space for sludents and local school engagement. The Studios opened in November 2022. The James Dyson Foundation Trustees, report for the year ended 31 December 2022 (continued) Financial review and results for the year ended 310ecember 2022 Results ft)rthe yearended 31 December2022 The statement of financial actwit￿S for the year is set out on page 13 of the financial slalemenls. Income for the year was £3.143.307 {2021.. £1.112,8271. The Foundation's main source of income is, and is expected to remain. donations from Dyson James Group Limited. The income received was in line with the Foundation's original budgets. The Foundation made donations and grants lotaling £1.095,680 {2021= £1,154,943) lo further its educational o*'eclives. of which the largest donation was £358,451 to run the James Dyson Award. The Foundation continued its scEnce and medical research and social mandates with donat40ns of £179.994 12021.. £1, 155,8051 and £65,508 (2021.- £32.2531 respectivety. These donations (both financial and in the forn of vacuum cleaners for raffle prizes) were distributed following either discussions with the relevant charities or having received and reviewed applications for support. Overheads, which comprised support costs lotaled £416.74112021'. £331.9371 or 13.3% {2021.. 29.8%} of income for the year. Investment Powe￿ poli¢y & perforniance The Foundation ha5 wide investment powers. Funds were held in cash. in interesl-bearing accounts wilh Lloyds Bank to meet short term requirements. Reserwe5 The Charity does not have a reserves policy and does not receive any donalions. grants. and any other sources of fundraising where restrictions are imposed. The Foundation's fixed costs are not svJnrficanl and as a general polw significant reserves are not maintained, since regular funding is provided by Dyson James Group Limited and the Trustees prefer lo request donalions only when planned expendilure within a tsvelve-monlh period is due to exceed current reserves. The Tnjslees are conf￿ent Ihat the work of the Foundation can continue and that they can rely on the continued funding from the Dyson group of companies for the foreseeable futtjre. Total sU￿lUS al the ye8r*nd was £11.00212021 deficit: £1.374,382). all of which was unrestricted. Management of the charity have undertaken risk assessment. planning and forecasting given current global challenges linflalion. energy prices. covid-191. A cashflow forecast has been prepared to 2027 and on this basis the Trustees believe the chartty's financial resources and contingency planning is suffiaent lo ensure the ability of the charity tr) continue as a going eoncem for the foreseeable future. being al least ￿e1ve months from the date of approval ofthese financial slalemenls and therefore have prepared the fin8ncial stslemenls on a going con￿rn basi5. The James Dyson Foundation Trustees, report for the year ended 31 December 2022 (continued) Plans forfuture periods The Foundation's main ot4ectives for the next year are lisled bel¢w. Grow the quality and reach of the James Dyson Award: Successfvlly run the competition, including in one new participating county for 2023- Portugal. Increase the quality of entries lo the James Dyson Award. Conduel over 200 universty outreach talks globalty engaging 400 James Dyson Foundation ambassadors. Increase social media followings by 30% Ihrough MO￿ infomalive and engaging content. Become a leader In air sclence englnegring oducation: Expand the delwery of the Engineering solutions.. pollution resour￿ across nine eountlles (UK. US, Singapore. Malaysta. Philippines, Japan, China. Auslralra. Soulh Korea}. induding donaling 300 airqualty monitoring devices to schools. Deliver cuttingédge educational resourcos and events: Deliver over 2.000 physie81 resources (Challenge Cards. Design Process Box. Engineering Box) and 30,000 downloadable resou￿$ reaching over lm studenls across the UK. US and APAC. Develop a new engineering educational resource for the LIK to support Dyson Farming's outreach. Grow and enhance STEAM educational outreach through over 1,000 workshops and events aeross the UK. US. Singapore, Malaysia arKI the Philippines. reaching over lm student& Celebrate engineering excellence: Continue lo offerschotarships and bursaries to students that excel in the field of engineering. Deliver programmes in the Dyson-SUTD Innoval¢on Studi05 and Singapore Science Centre following donations made in 2022. Strengthen our support for local communities and Dyson people's fundraising: Pledge a fund to support charitable organisab.ons local lo Dyson office5 artd malch-fund Dyson ￿OPle'S fundraising efforts for global medical research charities. Pledge fjnanaal commitment to 5UPPOrting the expansion and provision of STEAM facilities al Malmesbury Primary Sch¢x)l. conditional on Ihe ￿h0o1 receiving approval from the relevant aulhortiies. Continue our long4tandlng commitment to advancing Demgntia research: Continue lo support the Race Against Dementia Dyson Fellowship and acceleralion projecL embedding Dyson's engineering philosophy to pioneer new research approaches. Help to create new spaces for medical research and Ireatment: Continue lo support the work of the Dyson Neonatsl Centre and opening of the of the Dyson Cancer Centre at the Royal United Hospital in 8alh. Objéctives and actlvltles for the public bengfit The Trustees confirm thal they have complied wlh Iheir duty in Section 17 of the Charities Act 2011 10 have due ￿ard to public benefrt guidance published by the Charity Commission for England and Wales. The objectives of the Foundatson are to advance education and training. part￿larlY in the fields of design and technology. lo support medical and scienlrfK research. and lo promote the provision of facilities in the interest of social and communty weffare. In particufar The James Dyson Foundation aims lo support projects in the ILxal community Whe￿ it operales. The Foundation carries out Ihese ol¥'ectNes ty. providing grants {by way of donations and grfts) to educalion and training projects. science and medical research. and social and commvnty weware: and developing educat￿n resources and running projects inlemationally wh￿h are all free at point of access. The James Dyson Foundation Trustees, report for the year ended 31 December 2022 (continued) By focusing on these areas. the Truslees achieve their strategic priorities of educabon. training, and research. For further details on the Foundation's activities in the yeai, see 'Achievemenls and Perfomiance. on pages 4 10 7 whKh highlights the Foundation's wide ranging public benefits. The Charity had no fundraising activilies requiring disclosure under S162A of the Charities Act. Trustees, responsiTbilities statement The Trustees (who are also directors of The James Dyson Foundation for the purposes of company lawl are responsiblè for preparing the Trustees. Annual Report and the financial slalemenls in accordance with applicable law and United lQ"ngdom Generalty Accepted Accounting Pra¢ti¢e (United Kingdom Accounting Slandard5). Company law ￿qlI1reS the Trustees to prepare financial ststemenls for each financial year. Under company law the Trustees musl not approve the financial statements unless they are satisfied that they gwe a true and fair view of the stale of affairs of the charitable company and of Ihe incoming resources and application of ￿sourCes, including the income and expenditure. of the charitable Company for that period. In preparing these financial slalements. the Trustees are required lo.. select suitable accounling policies and then appty them consislentiy.. observe the methods and principles in the Charilies SORP., make judgments and eslimales Ihal are reasonable and pwdenl.. slate whether applicable UK accounling standards have been followed. subject lo any maleri81 departures disclosed and explained in the financial statements.. and prepare the financial slalemenls on ihe going concern basi5 unless il is inappropriate lo presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain the charitable company s Iransaclions. disclose with reasonable accuracy al any limè the financial position of Ihe charitable company and enable them lo en$￿￿ that the financial stalernenls comply with the Companies Act 2006 and the provisions of the charity's constitution. They are also responsible for safeguarding the asseis ol the charity and hence for taking reasonable steps for the prevention and detection of f¥aud and other irreguiafibes. Auditor Crowe U.K LLP were reappointed as auditors under section 487121 of the Companies Act 2006. Each ol the persons who is a Trustee al the date of approval of this report confirms Ihal.. so far as each Trustee is aware. there is no relevant audit information of which the Charity's auditor is unaware.. and each Tfuslee has iaken all steps that they ought lo have taken as a Trustee lo make themself aware of any relevant audit infomialion and to establish that the Charity's auditor is aware of that information. This report has been prepared in accordance with the Statement of Recommended Practice Aceounling and Reporting by Charities and in accordance with Ihe special provisions of the Companies Aci 2006 relating lo small enlilies. Signed on behalf of the Trustees Sir James Dyson Trusteg Dale.. I I 2023 Independent Auditorfs Report to the Members and Trustees of The James Dyson Foundation Opinion We have audited the financral statwnents of The James Dyson FoUndat￿n for the year ended 31 Oeeember 2022 which comprise the Statement of Finanual Acltvilies. Balan￿ Sheet, Slalemenl of Cash Flow and notes to the finanoal stalemenls. induding a summary ofsignrf￿nI accounting policies. The financial reporting framework that has been applied in their preparalion applicable law and Unrted Kingdom Accounting Standards. induding Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally A￿epted Accounting Praclicel. In our opinion the financial 51aternents= give a true and fair view of the slate of the charilable company's affairs as al 31 December 2022 and of ils inmme and expendilure for the year then ended-, have been propedy prepared in accordance wilh United lfjngdom General￿ Accepted Accounting Practv.. and have been prepared in accordance with the requirements of the Companies Act 20LE. Basis for opinion We conducted our audit in accordance with Inlemalional Standards on Audiling (UK) IISAS IUK)} and applicable law. Our responsibilities under those stsndaTds are further described in the Audilorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the elhi￿1 requirements that ale relevant lo our audit of the financial statements in the UK. including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in ac￿rdanCe wrth these requirements. We i*lieve that the audit evidenee we have obtained is sufficient and appiopriale lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded thal the trustee's useofthe going concem basis of accounting in the preparation of the finarrial statements is appropriate. Based on the work we have performed, we have not identrfied any material uncertainties relating to events or conditions thal. individualty or colleth"vety, may east signfficanl doubl on the charitable company's ability lo continue as a going concem for a period of at least hvelve months from when the financial slalemenls are aulhorised for issue. Our responsibililies and the responsibilities of the Iruslees with respect lo going concem are de￿ribed in the relevant sections of this report. Other infomiation The Iruslees are resptsnsible for the other infomation contained within the annual report. The other information comprises the infomialion included in the annual report. other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and. except lo the extent otherwise expliciuy slaled in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other informalion and. in doing so. consider whether the other information is malerialty inconsistent wilh the finanual statements or our knowledge obtained in the audit or olhernise appears lo be materially misstaled. If we Klenlify such material inconsistencies or apparent material mis5talernents. we are requiied to detemiine whether this gives rise lo a material misstalement in the financial slalemenls themselves. If. based on the work we have performed. we conclude that there is a material misslatement of this other information. we are required to report that fact. We have nothing to report in this ward. Opinions on other mattors prescribed by the Companies Act 2006 In Our opinion based on the work undertaken in the course of our audtt the infomialion given in the trustees. report. which inctudes the directors. report prepared for the purposes of company law, lor the financial year for which the financial stalemenls are prepared is eonsislent with the financial statements- and the directors, report included within the trustees. rep)rt have been prepared in accordance with applicable legal requirements. Matters on which wo arg required to report by exception In Itght of the knowledge and understanding of the charitable company and its environment obtained in the eourse of the audit. we have not identified material misstatements in the directors, report included within the Iruslees, report. We have nolhing to report in respect of the following matters in relation to which the Companies Act 2006 requires us lo report to you il. in our opinion.. adequate and proper accounting records have not been kepl.. or the financial statements are not in agreement with the accounting records and relums,. OT certain disclosures of truslees. remuneration specified by law are not made; or we have not received all the infomiation and explanalions we require for our audit.. or the tnjslees were not entilled lo prepare the financial statements in accordance with the sm811 companies fegime and tske advantsge of the small companies exemplion in preparing the Iruslees. reporL Responsiblllties of trustees As explained more fully in the trustees. respon5ibilFties statement sel out on page 8. the trustee5 (who are a150 the directors of the charitable company for the pufp05e5 of company lawl are responsible lor Ihe preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as Ihe trUst￿S determine 15 necessary lo enable the preparation offinancial slalements that are free from material mtsstslement. whelher due to fraud or error. In preparing the financial ststements. the truslees are resp)nsible for assessing the charilable company's ability lo conlj.nue as a going concern. disck)sing. as applicable, matters related to going oncern and using the going concem basis of accounb.ng unless the trustees erther intend lo liquidate the charitable company or lo cease operatKJns, or have no realist￿ attemative bul to do so. Auditorfs responsibilltles for the audtt of the financial statements We have been appointed as auditor under the Companies Act 20C6 and report in accordance with the Acts and re￿vant regulations made or having effect thereunder. Our objectives are lo obtain reasonable assuran￿ about whether the financial slalements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurnnce is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS (UK) will afvlays detect a material misstatementwhen it exists. Misstslements can arise from fraud or error and are considered maleiial if. individually or in the aggregate, Ihey could reasonably be expected lo Influen￿ the economic decisions of users taken on the basis of these financial slalements. Details of the exlenl to which the audrt was eonsidered capable of detecting irregularities, including fraud and non-compliance with laws and regulalions are sel out belcmr. 10 A further descript￿￿ of our responsibilities for the audit of the financial statements is IcKaled on Ihe Financial Reporting Council's website al.. www frc.or .uklauditorsres nsibililies. This description fomis part of our auditor's reporL Extsnt to which the audit was considered Capable of detecting irregularities. Includlng fraud Irregularities. including fraud. are instances of non-complon¢e with laws and regulations. ￿ identified and assessed the risks of material misslalemenl of the finanual ststemenls from irregularitie5, whether due to fraud or error, and discussed these be￿een our audit team members. We then designed and performed audit pro￿dureS responsive to those risks, including obtaining audit evidence sufficient and appropllale to provide a basis for our opinion. We obtained an (tnderstanding of the legal and regulatory frameworks within which the cl)arilable company operates, focusing on those laws and regulations that have a direct effect on the delerminalion of material amounts and disdosures in the financial slatemenls. The laws and regulations we considered in this context were the Companies Act 2006. Charities Act 2011 and Charilies SORP IFRS 10212019. We assessed the required compliance wilh these laws and regulations as part of our audit procedures on the related financaal statement items. In addition. we considered provisions of other laws and regulations that do not have a direci effect on the financial stslements but compliance with whth might be fundamental to the charitable company's ability lo operate or to avoid a material penalty- INe also consh4ered the opwrtunilies and incenlNes that may exist wrthin the charity for fraud. We identified the greatest risk of material impacl on the financial statements from irregularilie5, including fraud. lo be the override of controls by management. Our audit pr￿ed￿re$ lo respond lo these risks included enquiries of management about their own identrficalion and assessment of the risks of irregularities. sample lesling on the posting of joumals. reviewing accounting eslimales for biases. reviewing regulatory correspondence including that with the Charity Commiss*)n and reading minutes of meetings of those Charged with govemance. Owing lo the inherent limitations of an audit. there 15 an unavopyable risk that we may not have detected some material misstatements in the financial stalemenls. even though we have propedy planned and perfomied our audit in accordance wrth auditing standards. For example, the further removed non- compliance with law5 and regulations lirregukritiesl is from the events and Iransact¢ons reflected in the financial stalemenls. the less likety the inherenlty limited procedures required by auditing standards would identify it. In addition, as with any audit. there remained a higher risk of non-delects'on of irregularities. as these may involve collus¢on. forgery. intentional omission5. mi5represenlalions, or the override of internal Controls. We are not ￿sponsible for pieventing non-compliance and cannot be expected lo delect non-complian￿ with all laws and regulats'ons. These inherent limitations are parlicularty swJnfficanl in the ease of misslalemenl resurting from fraud as Ihis may involve sophi51icaled schemes designed to avoid detectTon. including deliberate failure lo record Iransaclrons. collusion or the provision of intentional miSrep￿sen￿¢l9ns. ## **Independent Auditor's Report to the Members and Trustees of The James Dyson Foundation (continued)** ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members and 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 charitable company, the charitable company's members as a body and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Tara Westcott Senior Statutory Auditor For and on behalf of **Crowe U.K. LLP** Statutory Auditor 4th Floor St James House St James Square Cheltenham GLS0 3PR **Date: 03 August 2023** 12 Registered company numbor 04601338 Registered charity number 1099709 The James Dyson Foundation Statement of financial activities (incorporating the income and expenditure account) For the year ended 310ecember 2022 Unrestricted funds 2022 Total Funds 2021 Total Funds Note Income from: Donations 3.143,258 49 3.143.258 1.112,827 Investments 49 3.143.307 3.143.307 1.112.827 Expenditure on". Charitable activities 4&5 1757,923 2,674,938 {1.757.923} 11.757,923} 12.674,9381 1757 923 Net income I (expenditure) 1.385.384 1,385.384 {1.562,1111 Rgconciliation of funds: Total funds brought forward at 1 Janua 13 1374 382 1.374.382 187.729 Totsl fuftds carried foThYard at 31 December 13 11.002 11,002 1.374.382 The notes on pages 16 10 24 forTn part of these financial statemenls. 13 Registered company number 04601338 Registered charity numb&r 1099709 The James Dyson Foundation Balance sheet As at 310ecember 2022 2022 2022 2021 2021 Note Non-current assets Investment in Turke Oak Limited Current assets Deblors 4.080 536.199 Cash at bank and in hand 816.334 816,334 540.279 Creditors- amounts falling due within one ear io 619 402 1,595.651 Net current I Ilabillties 196.932 1,055,372 1,055,372 Total assets less current liabilitles 196 933 Creditors: amounts falling due in more than one ear 11 185931 319,010 Net assets I liabilities 11,002 1.374.382 The funds ot the charity Uniesthcled funds 13&14 11,002 1.374,382 Total Charit funds 11.002 1.374.382 The notes on pages 16 10 24 foffli part of these financial ststements. These financial slatemenls have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating lo small companies. These financial statements have been preparèd in accordance with the Companies Act 2006 and Financial Reporting Standard 102. These financial statements were approved by the members of the committee and aulhorised for issue on 11 SL44 1013 and are signed on iheir behalf by.. Sir James Dyson Trustee 14 Reglstered company numbèr 04601338 Registered ¢haiity numbor 1099709 The James Dyson Foundation Statement of cash flows 2022 2021 Cash flows from opefating activities: Net cash provided by I (used in) operating activitie8 280.086 1150.307) Cash flows from investing activitiK: DivKlends and interest fmm investments 49 Net cash rovided investment activities Chang6 in eash and cash equivalents in the re ortin eriod 280.135 150,307 Cash and cash equivalents at the beginning of the eriod 536,199 686,506 Cash and cash uivalents atthe end ofthe eriod 816,334 536,199 The notes on page5 16 to 24 fomi part of Ihese financial stalemenls. A. Reconciliation of net income to net cash from operating activities 2022 2021 Net income I Ideficitl for the reporting peri¢xl Adjustments for. Investment in Turtey Oak Limiled Dividends and interest from investsnents 1.385.384 11.562.111) (1) 1491 4,080 1.109 328 Decrease I Ilnereasel debtors Decrease I Increase in creditors {1,871} 1,413.675 Net cash rovided used In ratin activities 280 086 150.307 15 The James Dyson Foundation Notes to the financial ststements for the year ended 31 December 2022 1. Accounting Policies Charity information The James Dyson Foundation is an inCo￿1rated chartty limited by guarantee registered with Companies House (registered no. 04601338 England &Walesl and the Chartty Commission Iregislered nUM￿r 1099709). The address of ils registered office is Tetbury Hill. Malmesbury. Willshire. SN16 ORP. Basis of accounting These financial slalemen15 have been prepared in aecordance with Accounting and Reporting by Chèrilies.. Slalement of Recommended Practice applicabte lo charities preparing their accounls in accordance wtth the Financial Re￿rtIng Standard applicable in the UK and Republic of Ireland IFRS 1021 {effeelive 1 January 20191 (Charities SORP {FRS 1021}, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 Companres Act 2006 and Charities Ael 2011. The Foundation meets the definibon of a Publ￿ benefit entity under FRS 102. Assets and liabilities are initially recognised al hislorul cost or transaclion value unless otherwise slated in the relevant accounting policies. On 11 November 2022 Turkey Oak Limited vras incorporated. The James Dyson Foundation acquired 100% of the shares of Turkey Oak knmiled for one £1 ordinary share. The entity has not traded in the year 10 31 December 2022 and as a resull has nol been consolidated in Ihese accounts. Going concern After making enquiries. the Trustees have a reasonable expectsts.on that the Charity has adequate resources lo continue its activities for the foreseeable future and that there are no material uncertainlies about the Charity's ability lo continue. Accordingly. they continue to adopt the going concern basis in preparing Ihe fin8nual statemenls as outlined in the Truslees. re5ponsibilrties slatement on page 8. The Foundation's fixed c￿Sts are not swjnrfieanl and as a general policy signrficanl reserves are not maintained, since regular funding is provided by the Dyson group ofcompanies and the Trustees prefer lo request donations only when planned expenditure within a 12-monlh period is due lo exceed current reserves. Al the end of 31 December 2022. the pledges from the Dyson group are in the region of £15.8m. Management of the charity have undertaken risk assessment. planning and forecasling given current global challenges linflalion. energy prices. covid-191. A cashflthv forecast has been prepared lo 2027 and on this basis the Trustees believe the charity's financial resources and conlingency planning is sufficient lo ensure the ability of the charity to Continue as a goin9 ￿ncern for Ihe foreseeable future, being al least Nyelve months from the dale of approval of these financial ststemenls and therefore have prepared the financial statements on a goiry concem basis. 16 The James Dyson Foundation Notes to the financial statements for the year ended 31 December 2022 (continued) 1. Accounting Policies (continued) Income from donations Donations are recognised on receipt. No amounts are included in the financtal slalements for services donated by volunteer5. Donated serVI￿S and goods have been recognised al their fair value lo the Foundation al the poini of donation. Income from investments Investment income is credited lo the stslemenl offinaneial aclivities in the year in which it is receivable. Resources expended All expenditure is accounted for on an accruals basis and has been classtfied under headings that aggregate all costs related lo the category. ￿There costs cannol be directty attributed lo particular headings. they have been allocated to activibes on a basis consistent with use of the resources. Charitable activities Costs in furtherance of charttable activities indude those costs incurred in the direct performance of objects of the Foundation laid down in the governing d¢xument. Grants payable Grants payable are calculated for in full as liabilities of the charitable Company after being approved by the Trustees. communicated to Ihe third party and when any condi1￿nS inclLEded in the grant have been ompleted, regardless of the timing of cash f]ows. Support costs Support costs comprise the direct costs. induding staff. attributable lo charitsble activitie5 and an appropriate apportionment of indirect cosls. Support costs are allcKated lo activities based on an estimate of lime spent on each actNity. Govemance costs included within support costs include expenditure on adminislrab.on of the charitable company to ensure compliance with constilulional and stalulory requirements. Irrocoverable VAT Any Ir￿coVerable VAT is charged to the Statement of Financial ActNities. Recognition of liabilities Liabilities are fecognised when an obligation arises to transfer e￿norn￿ benefrts as a wult of past transactions or events. Investments Investments are revalued and induded in the financial statements at their market value at the balance sheet dale. Debtor8 Accrued income is recognised al the seltlemenl amounL Cash and cash equivalents Cash is represenled by cash in hand and deF*)sits with financial institutions. Creditors Cred¢tors are recognised where the Foundation has a present obligation resulting from a past event that will probably result in the transfer of funds to a thiid party and the amount due to settle the obligation can be measured OT eslimaled reliably. Credilors are noTrnalty recognised al their settlement amount after alk)wing for any trade discounts due. 17 The James Dyson Foundation Notes to the financial statements for the year ended 31 December 2022 (continued) Accounttng Policies (continued) Financial instruments The Foundation onty has finonoal assets and financol liabililies of a kind that qualfy as basic finaneial inslrumenl5. Basic financial instnjmenls are initialty recognised 8t transact￿n value and subsequently measured al their settlement value. Significant estimatos and judgements In the preparation of these financial statements management has, rf requi￿ to make signtfic8nl judgernenls or estimates. used the fair value al the point ofthe donab"on. The value of goods purchased from Dyson James Group Limited have been uplifted from c051 to retail value and the costs of Weyboume serviees have been included al a fair value hourly rate. Fund accounting General funds are unrestricted funds which are available for use al the discrelion of the Trustees in furtherance of the general objectives of the Foundation and which have not been designaled for other purposes. Inveslment income and gains are allocated lo the appropriate fvnd. Agency arrangements The Foundation acts as an agent in distributing collections for the Dyson James Group Limiled nominated charity Alzheimerfs Research UK 2. Comparative statement of financial activities Unrestricted funds 2021 Total Income from: Donations 1,112,827 1.112.827 1.112,827 1.112,827 Expendlturg on". Charitable activities 2.674.938 2,674,938 Net lexpgnditure) Total funds brought [oN￿rd al 1 Janua 2021 11.562.111) 11.562,111) 187,729 187,729 Total funds ¢arried for4¥ard at 31 December2021 1.374.382 1.374.382 18 The James Dyson Foundation Notes to the financial statements for the year ended 31 December 2022 (continued) 3. Donations 2022 2021 Unrestricted fund8 Total funds Total Funrls Donations Corporate donations Individuals 3.143.258 3,143.258 1.112.827 3.143.258 3.143.258 1,112,827 Total income attributable to geographul areas oulside of Ihe United lfjngdom is £nil12021.. £nil). 4. Costs of charitable activities by activity type Grdnt funding a¢tivities 2022 Totsl funds 2021 Total funds Support osts Education and liaining Science and medical research 1.095.680 395,903 1.491,583 1.470,283 179.994 4.168 184,162 1.159,125 Social and communty welfare 65.508 16.670 82,178 45,530 1.341.182 416.741 1.757.923 2.674.938 Support Costs 2022 2021 Salaries 325,436 20.933 9.751 40.183 9.393 1,217 9.828 416.741 260,550 15,247 2,463 39.251 General administrat￿n costs Travel and accommodalton Accountsncy expen5e5 Legal fees Exchange loss Goveinance costs.. auditorfs remuneration 3,990 2,036 8,400 331.937 Support costs are allocated lo aclivtties based on an estimate of time spent on each aclNity. During the year no Trustees re￿ived emoluments or reimbursement ofexpenses from the Foundation {2021'. £nill. 19 The James Dyson Foundation Notes to the financial statements for the year ended 31 December 2022 (continued) 5. Grant funding activities The following grants and donations were made during the year. Educatlon and training 2022 2021 James Dyson Award Air Pollution Resouree 358.451 309.604 186.006 82.771 253.521 214,931 US Education Programme APAC EdU￿tiOn Programmes UK Education Programmes Local Malmesbu En ineerin 54,000 678,025 108,309 5.005 Education 1.095.680 1.154.943 APAC Education Progrdmmes enc￿MpasseS ￿ prevtous education programmes for Japan. Malaysia, Singapore and Philippines. UK Education Programme5 erKompasses the previou5 UK edLKation resources and UK outreaeh programmes. There were no donations and grants paid to indmduals during Iheyearended 31 Decembef 202212021.. £nill- S¢lence and medical research 2022 2021 Vacuum deaners for charity fundraising Dyson nominated charity donalton- Alzhewnerfs Research UK Univetsity of Edinburgh. Dyson Ra￿ against Dementia aCce￿ration project Medical Research Gran15 lund 145.600 119.940 30.413 1.000.000 50 5.452 179.994 1,155.805 Social and community ￿Nar8 2022 2(r21 Local community Other ifts of less than £1,000 each 36.520 28.988 13.823 18.430 65.508 32.253 20 The James Dyson Foundation Notes to the financial statements for the year ended 31 December 2022 (continued) 6. Stsff Staff costs during the period were.. 2022 2021 Wages and salaries Social security costs Pension costs 280.580 20,642 24,214 224.865 17,946 17,739 325,436 260.550 The average headcounl during the year was 5 {2021.' 51. The number of employees whose employee benefrts lexduding employer pension costs) exceed £60,000 was.. 2022 2021 In the band £90,001- £100.0(KI In the band £60,001 - £70,000 The key management personnel of the Foundation Comprise the Global Head. The lolal amount of employee benefits lincluding employer pension contribul￿nSI received by key management personnel was £113.260 12021.. £70.8791. During the year there were seluefflent payments made of £44.282 12021: £Nill. There were no oulslanding liabilibes al the year end. 7. Net income for the year This is stated after charging-. 2022 2021 Auditor's remuneration for audit servtces 8,190 7.000 8. Taxation The Foundation is a registered eharity. and as such is entitled to certain tax exemptions on income and profit from investments. and surpluses on any trading actsvilies caffied on in furtherance of Ihe Foundation's primary objectives. rf these profts and Sufpluses are applted solety for char¢table purposes. The Foundation is not registered for VAT and accordingly. all of its expenditure is reeorded inclusive of any VAT incurred. 21 The James Dyson Foundation Notes to the financial ststements for the year ended 31 December 2022 (continued) 9. Debtors 2022 2021 Acerued income 4,080 10. Creditors: amounts falling due within one year 2022 2021 Amounts owed lo connected parties Other creditors 88,597 417.380 113425 64.S35 1,463.S70 67.546 Trade Creditors and aceruals 619,402 1.595.651 Included within other creditors for 2022 are amounts for granls made. bul for which Ihe payment did not fall due during the year. 11. Creditors: amounts falling due in more than one year 2022 2021 Other creditors 185,931 319.010 12. Capital The Foundation is a company limited by guarantee. Each member has undertaken to contribute £10 10 the assets of the company lo meet ils liabilities rf called on lo do so. The total amount guaranteed by members al 31 December 2022 is £3012021.. £30). The James Dyson Foundation Notes to the financial statements for the year ended 31 December 2022 (continued) 13. Funds Current year At 1 January 2022 At 31 Decembor 2022 Income Expenditure Unrestricted funds General funds 1.374.382 3,143,307 3,143.307 1.757.923 11.002 1.374.382 1,757.923 At 1 January 2021 At 31 D•¢emb*r 2021 Prioryear Income Expenditure Unrestricted funds General fvnds 187.729 1.112.827 1.112.827 2,674.938 1,374.382 187.729 2.674.938 1.374.382 14. Analysis of net assets between funds Analysis of nèt assets belwegn funds- current year Unre51ricted funds Total funds 2022 2022 Non cUT￿nI assets Currenl assets 816,334 816.334 1619,4021 1619,4021 185.931 185931 Creditors due within one year Creditors due in more than one ear 11.002 11,002 Analysis of net assets between funds- PTloryear Unrestricted funds Total funds 2021 2021 Non current assets Current assets 540,279 540,279 {1.595,651) {1.595.651) 319.010 319.010 Credilors due within one year Creditors due in more than one ear 1,374.382 1.374,382 23 The James Dyson Foundation Notes to the financial statements for the year ended 31 December 2022 (continued) 15. Pension Commitments The James Dyson Foundation operdtes a defined contrt"bution pension scheme. The assets of the scheme afe held separately from those of the FoundatKJn in an independently administered fund. The pension cost charge represents conlribulions payable by the Foundation lo the fund and amounled lo £24,21412021." £17,739). There were contributions payable al year end £971 {2021-. £1.5661. 16. Related party transactions The Foundation received £3,143.25812021.. £1.112.827) in donations and donated goods and servtces from Dyson James Group Limrted during the year. The Foundation owed Dyson James Group Limited £21.06712021= £13.842} al the year end. Sir James Dyson. a Tnjstee of the Foundation. is Ihe 96.3% beneficial owner of Dyson James Group Limited. The Foundation purchased £58.868 12021.. £46,365) of goods frixn Oyson James Group Limited al cost. The Foundation ￿Ceived £40.18312021.. £39,251) in thnaled services from Weyboume Limited during the year. During the year The Foundation ￿Charged staff eosls lo Weybourne Limited £Nil 12021.. £12,406). The Foundation owed Weyboume Limited £Nil12021.. £7981 atthe year end. Sir James Dyson has the controlling share of KÈyboume Limiled. The Foundation was tharged for stsff and assouated Costs by Weyboume Holdings Ple Limited £129,664 {2021.' £93.8941. The Foundation owed Weyboume Holdings Pte Limited £67.530 12021.. £49.8951 al the year end. Sir James Dyson has the C￿ntrOllIng share of Weyboume Holdings Ple Limited. The Foundation made donations lo Gresham's &hool £300 (2021-. £NILI. Sir James Dyson is a Governor of Gresham's School. 11 also donated lo The Design and Technology Association £6,000 12021: £Nill. Sir Jame5 Dyson is a Patron of The Design and Technology Associalion. 17. Agency arrangements Amounts of É30,58412021.. £37,442) were paid to Atzheimerfs Research UK during the year, leaving an amounl of £27.505 in trade creditors to be paid after the year end. 24