Charity No. 1100779
THE CANTOR FOUNDATION (UK)
Report and Financial Statements
For the year ended
31 December 2020
THE CANTOR FOUNDATION (UK)
LEGAL AND ADMINISTRATIVE INFORMATION
ADDRESS
Five Churchill Place
Canary Wharf E14 5RD
TRUSTEES
The trustees in office during the period and at the date of this report are:
Anshu Jain (Resigned 12 August 2022) James Lightbourne (Appointed 23 October 2023) Sean Windeatt (Appointed 23 October 2023) Shaun Lynn (Appointed 23 October 2023) Howard Lutnick (Resigned 23 October 2023) Alison Lutnick (Resigned 23 October 2023) Edie Lutnick (Resigned 23 October 2023)
MANAGEMENT
Day to day management is undertaken by the trustees using the senior management and support functions from BGC European Holdings LP Group (‘BGCEH’).
AUDITORS
Ernst & Young LLP
Chartered Accountants and Registered Auditors 25 Churchill Place
London
E14 5EY
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THE CANTOR FOUNDATION (UK)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report and the audited financial statements for the year ended 31 December 2020. The financial statements have been prepared on the basis of the accounting policies set out in note 1 to the financial statements and comply with the charity’s trust deed, applicable law and the requirements of the Statement of Recommended Practice, “Accounting and Reporting by Charities” published on 16 July 2014.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Cantor Foundation (UK) (‘the Charity’) is governed by the Trust Deed dated 28 October 2003 and is constituted as a charity.
The number of trustees should not be less than three except in the instances set out in the Trust Deed and they serve for three years and may then be re–appointed.
The trustees are appointed by the current trustees.
Day to day management is undertaken by the trustees using senior management and support functions from BGC European Holdings LP Group.
OBJECTIVES AND POLICIES
The Trust Deed defines the Charity’s ‘Objects’ including:
To further the general purposes of such Charitable Institutions or for such charitable purposes as the Trustees shall think fit and in relieving employees and former employees of Cantor Fitzgerald International (including its subsidiary and associated entities worldwide) and their dependants who are in need, hardship or distress.
FINANCIAL REVIEW
For the year ended 31 December 2020, the Charity recognised £2,220k (2019: £4,874k) of income in relation to amounts donated by the BGCEH Group and its affiliates. Simultaneously, the Charity recognised £2,220k (2019: £4,874k) of expense in relation to amounts it donated to the Cantor Fitzgerald Relief Fund (‘CFRF’), a charitable corporation registered in the State of Delaware, United States of America.
The Charity had no other income or significant expenses during the year (2019: £nil).
GOING CONCERN
The trustees have a reasonable expectation that the Charity will continue to be granted adequate donations and management services to continue its activities for the foreseeable future, and for at least 12 months from the date of the approval and signing of the Balance Sheet. They therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.
COVID-19
The Charity receives donations from the BGCEH Group and its affiliates (‘the Contributors’). After reviewing forecasts and making enquiries, the trustees have a reasonable expectation that the Contributors have adequate resources to continue in operational existence for the foreseeable future. The Contributors specifically considered the potential impact of a significant downturn in levels of revenue on profitability and regulatory capital surplus that could result from the ongoing global COVID-19 outbreak in their analysis. They expect to generate positive cash flows over the next twelve months and be able to meet all their obligations as and when they fall due. Thus the trustees do not expect there to be a significant risk to the provision of either the donations, or the management services, granted to the Charity. The trustees consider that the Charity has sufficient liquidity to meet its liabilities for the next 12 months from the date of approval of these financial statements. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
UNRESTRICTED FUNDS
Unrestricted funds represent funds, which are expendable at the discretion of the trustees in the furtherance of the objectives of the Charity. Such funds may be held in order to finance both working capital and capital investment.
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THE CANTOR FOUNDATION (UK)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
RESERVES POLICY
In view of the objects and activities of the charity, the reserves policy is to retain only such funds as are sufficient to enable it to meet its expenses as they fall due. The trustees will distribute the reserves in accordance with the objectives of the charity. To the extent that the charity does not have sufficient resources, its expenses are met by BGC European Holdings Group.
FUTURE PROSPECTS
The charity plans to continue the activities as outlined above in the forthcoming years subject to satisfactory funding arrangements.
RISK MANAGEMENT
The trustees place reliance on the BGCEH Group’s Risk Management function to manage and monitor risks as well as other related matters, in particular those related to the operations and finances of the Charity, and are satisfied that systems are in place to mitigate the Charity’s exposure to those major risks.
TRUSTEES’ MEETINGS
The trustees held no meetings during the year.
RELATED PARTIES
The related parties of the Charity are considered to be BGC European Holdings LP and its related parties, together with the trustees and the trust secretaries.
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the Charity’s incoming resources and application of resources during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees are required to:
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select suitable accounting policies, observing the methods and principles in the applicable charities Statement of Recommended Practice (‘SORP’) and then apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent;
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present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
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provide additional disclosures when compliance with the specific requirements in SORP is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Charity’s financial position and financial performance;
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in respect of the financial statements, state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is appropriate to presume that the Charity will not continue in operation.
The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Charity and which enable them to ascertain the financial position of the Charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations and the provisions of the Trust Deed. The trustees are responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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THE CANTOR FOUNDATION (UK)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)
POST BALANCE SHEET EVENTS
The trustees have recently taken steps to regularise the appointment and retirement of trustees of the charity to correct an administrative oversight. The current Trustees have therefore re-approved and re-signed these Amended Financial Statements on 25 October 2023. No events after 31 December 2020 have occurred which require any other changes to the Financial Statements.
There are no other significant events occuring after the balance sheet date, up to the date of approval of the financial statements that would meet the criteria to be disclosed or adjusted in the financial statements as at 31st December 2020 and for the year then ended.
AUDITORS
Ernst & Young LLP will be deemed to be re-appointed as auditors of the Charity 28 days after approval of these financial statements.
Approved by the trustees and signed on their behalf by:
J Lightbourne
Date: 26th October 2023
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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE CANTOR FOUNDATION (UK) CHARITY
Opinion
We have audited the financial statements of The Cantor Foundation (UK) (“the Charity”) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Cash Flow Statement and the related notes 1 to 9, including as summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting standard applicable in the UK and Republic of Ireland”.
In our opinion the financial statements:
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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;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 below. We are independent of the charity in accordance with the ethical requirements that are 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 relating 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 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the trustee’s ability to continue as a going concern.
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Other Matters
This audit report, which is not modified, replaces in its entirety our audit report issued on 24/12/21. This replacement report arises due to updates made in the financial statements in respect of the trustees, as noted in note 9.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report.
Our opinion on the financial statements does not cover the other information and 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 3, 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 determine 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 management either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so.
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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.
Explanation as to what extent the audit was considered 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 irregularities, including fraud. 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 or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
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We obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant are the Charities (Accounts and Reports) Regulations 2008, the Charities Act 2011 and Financial Reporting Standard 102.
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We understood how the charity is complying with these legal amd regulatory frameworks by making enquirities of management and those responsible for legal and compliance matters. We have reviewed correspondence between the charity and its regulatory bodies, reviewed minutes of the trustees, made enquiries of management for their awareness of any non-compliance with laws and regulations and gained an understanding of the charity’s approach to governance through the review of the Board’s approval of the risk management framework and the internal controls processes.
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We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override and designating management override and revenue recognition outside the normal course of business to be fraud risks. We considered the controls that the charity has established to address these risks identified, or that otherwise seek to prevent, deter or detect fraud.
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Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of executive management and those responsible for legal and compliance matters and journal entry testing. We corroborated our enquiries through review of Trustee meeting minutes and policies.
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’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 Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 auditors' 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.
Peter Wallace (Senior statutory auditor)
For and on behalf of Ernst & Young LLP, Statutory Auditor London
30 October 2023
Ernst & Young LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
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THE CANTOR FOUNDATION (UK)
STATEMENT OF FINANCIAL ACTIVITIES
For the year ended 31 December 2020
| Note Incoming resources Income from charitable activities 3 Expenditure Expenditure on charitable activities 4 Other expenses 4 Net expenditure and net movement in funds Total funds brought forward Total funds carried forward |
2020 £ 2,220,285 (2,220,285) (20) (20) 143,757 143,737 |
2019 £ 4,874,110 (4,874,110) (60) (60) 143,817 143,757 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All incoming resources and resources expended derive from continuing activities.
The notes on pages 12 to 14 form part of these financial statements.
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THE CANTOR FOUNDATION (UK)
Charity No. 1100779
BALANCE SHEET As at 31 December 2020
| Note CURRENT ASSETS Cash Total Current Assets Creditors: amounts falling due within one year 6 NET CURRENT ASSETS NET ASSETS FUNDS Unrestricted funds |
2020 £ 143,737 143,737 - 143,737 143,737 143,737 |
2019 £ 5,017,867 5,017,867 (4,874,110) 143,757 143,757 143,757 |
|---|---|---|
The notes on pages 12 to 14 form part of these financial statements.
The financial statements were approved by the trustees and were signed on their behalf by:
J Lightbourne
Date: 26th October 2023
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THE CANTOR FOUNDATION (UK)
CASH FLOW STATEMENT
For the year ended 31 December 2020
| Note Net cash provided by (used in) operating activities 7 Change in cash for the year Cash at the beginning of the year Cash at the end of the year |
2020 £ (4,874,130) (4,874,130) 5,017,867 143,737 |
2019 £ 4,874,050 |
|---|---|---|
| 4,874,050 143,817 |
||
| 5,017,867 |
The notes on pages 12 to 14 form part of these financial statements
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THE CANTOR FOUNDATION (UK)
NOTES TO THE ACCOUNTS
For the year ended 31 December 2020
1. STATEMENT OF COMPLIANCE
The Charity is a public benefit entity registered in England and Wales. Its registered office is 5 Churchill Place, Canary Wharf, E14 5RD. The principal accounting policies of the Charity have been summarised below. They have all been applied consistently throughout the year and the preceding year.
2. ACCOUNTING POLICIES
Basis of accounting
The financial statements have been prepared under the historical cost convention, unless otherwise specified in these accounting policies, on the basis that the Charity is a going concern and in accordance the Statement of Recommended Practice (‘SORP’), ‘Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The accounting policies adopted have been applied consistently in the current and preceding year.
Incoming resources
Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Incoming resources includes cash donations.
Resources expended
Expenditure is recognised in the period in which there is a legal or constructive obligation that commits the charity to expenditure that will probably require a transfer of economic benefits in settlement and the amount of the obligation can be reliably measured. Resources expended include costs of charitable activities.
Going concern
The trustees have a reasonable expectation that the Charity will continue to be granted adequate donations and management services to continue its activities for the foreseeable future, and for at least 12 months from the date of the approval and signing of the Balance Sheet. They therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.
COVID-19
The Charity receives donations from the BGCEH Group and its affiliates (‘the Contributors’). After having reviewed forecasts and made enquiries, the Contributors have a reasonable expectation that they have adequate resources to continue in operational existence for the foreseeable future. The Contributors specifically considered the potential impact of a significant downturn in levels of revenue on profitability and regulatory capital surplus that could result from the ongoing global COVID-19 outbreak in their analysis. They expect to generate positive cash flows over the next twelve months and be able to meet all their obligations as and when they fall due. Thus the trustees do not expect there to be a significant risk to the provision of either the donations, or the management services, granted to the Charity. The trustees consider that the Charity has sufficient liquidity to meet its liabilities for the next 12 months from the date of approval of these financial statements. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
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THE CANTOR FOUNDATION (UK)
NOTES TO THE ACCOUNTS
For the year ended 31 December 2020
3. INCOME FROM CHARITABLE ACTIVITIES
| 3. INCOME FROM CHARITABLE ACTIVITIES | ||
|---|---|---|
| Cash donations from BGCEH and its affiliates 4. EXPENDITURE Expenditure on charitable activities - donations to the CFRF Other expenses - bank charges |
2020 £ 2,220,285 2020 £ 2,220,285 20 |
2019 £ 4,874,110 |
| 2019 £ 4,874,110 60 |
Management costs, including the audit fee of £26k for the year ended 31 December 2020 (2019: £18k), were borne by a related party, Tower Bridge International Services LP, a member of the BGCEH Group and not recharged to the Charity.
5. STAFF NUMBERS AND TRUSTEES’ EXPENSES AND REMUNERATION
No staff were employed by the Charity during the year (2019: None).
The trustees were not paid remuneration or reimbursed for expenses during the year (2020: £nil).
6. CREDITORS
| 2020 £ Amounts owed to the CFRF - ECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 2020 £ Net movement in funds (20) Decrease in debtors - (Decrease) in creditors (4,874,110) Net cash (used in) provided by operating activities (4,874,130) |
2019 £ 4,874,110 2019 £ (60) 6,499,718 (1,625,608) |
|
|---|---|---|
| 4,874,050 |
7. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
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THE CANTOR FOUNDATION (UK)
NOTES TO THE ACCOUNTS
For the year ended 31 December 2020
8. RELATED PARTY TRANSACTIONS
For the year ended 31 December 2020, the Charity recognised £2,220k (2019: £4,874k) of income in relation to amounts donated by the BGCEH Group and its affiliates. Simultaneously, the Charity recognised £2,220k (2019: £4,874k) of expense in relation to amounts it donated to the Cantor Fitzgerald Relief Fund (‘CFRF’), a charitable corporation registered in the State of Delaware, United States of America.
9. POST BALANCE SHEET EVENTS
The trustees have recently taken steps to regularise the appointment and retirement of trustees of the charity to correct an administrative oversight. The current Trustees have therefore re-approved and re-signed these Amended Financial Statements on 25 October 2023. No events after 31 December 2020 have occurred which require any other changes to the Financial Statements.
There are no other significant events occuring after the balance sheet date, up to the date of approval of the financial statements that would meet the criteria to be disclosed or adjusted in the financial statements as at 31st December 2020 and for the year then ended.
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