The Hintze Family Charitable Foundation Report and Financial Statements Foi. the year ended J l Deceinbei. 2020 Registered with the Clidrity Commissioii Charity No.. 1101842
Tlje Ilintze bsmily C'harit4bl¢ Found8tiott Rcptsrt finaiieial statements foi. the yeai. elided 31 Deetmb¢i' 2020 Contents Page: Reference and administrative inf(Jrn)at(()n Repoit of the Trustees Repoil of (he indepetjdent duditor Statciment of fjnancial activitie5 10 Balance sheet Statenient of cash l]ows 12- 18 Notcs foiming part of the finan¢iAI statements
Tlie Ilintze b-Aniily ChAt'ilable Foiindalion Report finsncial stAteineiits for tlje yeai. ended 31 December 2ts20 Refeien¢.e and administrative informalinn Ti'llstees Sir MiLhael Hit]tLe Sij. Mi¢hael Peat li"eappointed 20th January 20201 Duncan J3axt¢T Ch5ef Exeeutlve Lady {Dorothyl Hintze cli81.ity Number 1101842 S¢cr¢t8ry Kate Rees-Dolierty (resigned 6 January 20211 Gemnla Rooney (appoinred on 6 Janwdry 2021) He2dqu#irters 4, 1.'loor One Strai)d Londoii WC2N SHR Baiikers C Hoaie& Co 37 1,-Icct Strect l.ondon EC4P 4DQ Credii Suisse {Channel Islands) Limiled PO Ilox 368 St Petei" Port QTuernsey Channel Islands GYI 3YJ
Tlie Hiiitze Faniily CIIAriluble Fouiidatioii Repot't of the I'Yustee5 foi. tlie year ended 31 Detembei. 2020 'I'he'l'rustces present their report togetlicr witli the fjnantial %tstenient% of tl)e Foundation for die year ended 31 December 2020. The financial 8tateillent8 have bccn preprd ill accordancc with thc accounting policies set out in note I to the fiiiancial stateinents and coinply with the Charities Act 2011, and Accounting and Reportiiig by ClwiLies.- Statement of Recoinmended Practice applicable to chai'ities prepai'in8 tlieir a¢eounts in a¢cL)rdai)¢e witli the Finatt¢ial RepOiln8 Standai'd appli¢able in the UK an(t Republi¢ of Ireland (FRS 1021 (effective I January 2015). .StructureJ govei'll#Nce and In#uage¢t The Hintze Famly Chartable Foundation is constituted under a trust deed dated 23 Decembcr 2003 and is registered witli Ihe Cliarity CoJn17]ission foi. England and Wales undej. chai'ity no. l 101842 willi effect from 30 JUdry 2004. The Follnddtion is based in the UK with its office irt London. 'riie power to appoint iiew -fru5tees rests with tlic Iloai'd of Trustees. 'I'lic '[ rust r)eed requires tliere to be a minimum of thiEe Trustees appointed at any one time. On appointment, tlie admini.%trative and management proc&%ses af the Foundation are explained to the neiv iru81ee, Apart frnm the fr)ding riusret, ¢a¢h trustee must retire from his or hei. position Hft¢r three years. but tnay be re-elected. '17ie 'lrustees are Irquired to liold at least two ordinai'y meetijigs duriiig tlie ycar. I}te trustee Jneeti#gs were held during 2020. At these meelings, the Ti'ustees agree tlie broad stiategy and aiEa5 of activity for the Foundation. includiiig grant niaking, investment, reserve%. ri%k managenient p()licio% and perfonllancc. No trustee reMuntIon is paid and no tnjstee expeijses were paid during 2020. Related party transa¢iions are dis¢losed iii note I l io tlie fjiiancial stateinents. Trustees are Tequii'ed io dis¢lose all relevai)t interests and regist¢i" tlieiD Wjtli tlie Chief Executive aiid, in accoidaiice witli th¢ FtsundatiOii'5 policy. witl)dt'&w from decisioiis wliere a conflict of inteyest aJ'i5es. The day-ta-day administration of the Foundation is delegated to the c.hief F.xecutive and the Secretary. Dorotliy, Lady Hinize was il)e Cl)ief Exe¢uiive of the Foundation throutshoul the yeai.. The Foundation employs no other staff. The sej'vices of the Foundation's secretary at]d accountancy and administrative suppon are provided by CQS (UK) LLP and CQS Jersey Linitted (together 'LQS"). 'I'he l i'uslees agi'eed wtili CQS tliat such stJWiLes sljould be eli.ged li'om 6 April 2019 Onw.d5 l&n prior Yl"s, C.QS did not Ghai'ge tor such seTViC&%). 8ervi¢e agieements were executed by C.QS and the Tru8te&% in 2020 coiifiTrning the coiniiiei'cial arrangdnent. Collstitution and objectiv The principal objectives of the Foundation are, for the public benefit.. to advance education by supporting Schools, colleges aIid universities., to siippoit JllLiseums, libi'aries and art galleries and in pai1iculai' to proimote access for the general public to works of artistic. sciciitifIc, historic, arcliiteciu121 or cultural importance. to support the Chi'istian faith and institutiOMS' to reli¢v¢ sicl<ness and pi'otect and preserve publi¢ health thTough pi'oject5 to bcllcfit thc sick and tellkninally ill. and to funhei. such other purposes which are ¢hari18ble in aordanCe witli the laws of Enaland and Wale5 as the Trustees think fEI provided ihat in so doijig tlie charity sliall not Telieve any local audiority or other body fi'oiii its ststutoi'y obltgatiojis.
Tlie Hitt17.e family ChJiitAblt b'oundation Report of Éhe Ti'ustee5 for tlie Y1. eaided 31 Deeembei- 2020 Itoiitirjued) Gi*t making policy The Fuundation invites applications for grants from Charities which further the objectives of thc Foundation. No specifjc foi'ma( is required for applications. Applicationb alld potential donations identified by the Chief Lxecutive dzjd tlie Ti"ustees ale consideird at Trustees, meetings and belween tneetings. Review of Attivities foi. the publi¢ benefit Tlie Trusiees liave paid due re(Fai'd to tlie Charity Cominis5ion's guidancc on Public Benefit in de¢idino a¢tivilies the Foundation should undertake. Tlie TStee5 are satisfied that the Foundation met its obj£ctivcs dui'iiig il)¢ period. The Foundation doe5 not ur2dert&ke aiiy fund-raising activities aiid iiiakes grants tts Ine¢t its charitable objectives from unsolicited donations and from its investinents. During the period tlie Foundation pledged £690,152 (2019.. £3,958.852). Donations of £50,000 or more were pledged to the following ¢har%ti¢s. Edu 1) £50,000 {one-off donation) lo FW de Klerk Foundation. 21 £132.109 (AUD50,000 pcr annuni over five years) to the Minderoo l.'oundation. 31 £150.000 {p&yable over 3 years) to the Instiiute of Economic Affairs Lilted. 4) £125,000 {payable over 5 years) to the University of Oxfoi'd Developmeni Trusi Fund. culra]lArtS 5) £50.OIK) (one-off donation) to the British Council. Arnied Services 6) £120,000 (one-off donation) to the Royal Navy and Royal Mai'ines Charity Flealth 7) £50.000 (yable over 3 years) to Royal Brompton and Harefield Hospitals Charity. 8) £80,709 (USDIOO,000 one-utTdonation) to YouB¢long. Finau¢ial review i'eserves investmeml stigte Duiing the year the Foundation distributed donatioii% of £4,508,098 (2019.. £3,999,797), of which £4,154,104 {2019'. £2,977,139) was Committed in pi'evious years. At ycar en4 the Fi)undation was coininitted to £4.613,035 (2019.. £8,214,108) of donations over ihe Jiext 12 years. Total support tosls were £35,203 {2019.. £246,051) during (he year and predominately relare to siaff and admiiii5tTatinii charge.%, along witli foreign excliaijge gains aiid losses not directly atti'ibutable to pledges.
'I'lie Hintze b-2mily Chai'itable FouDdaliaii Report of tlie'l'ru.$tees foi. the yeai. eRded 31 Dtceinbci. 2020 (coTrtTnutd) Investment strategy The investnient strategy takes into acwunt the incume requirements of the Foundation while tn&ximising, within the Foundation's Jisk approacl). returns for future donations. Tlie Foundation has inve5tmenL% in tlie ("QS Credit Multi Assct and Direetioiial Opportunities Funds, as wcll as investmcnts in Austialian ix)nds. 'Ilie combined valiie of all investments was £4,85.3,909 12019.. £6,019,243). Under the Ti'ust Deed a TTUSt¢e musi absent himself or herself fi'orn any disLll&sions of IlJe Trustees in which it is posgible d12t a conflict will ai'ise belween his 01. Iier duty to act solely in the interests of Ihe Foundation and any P¢T50nal interest {incliidin8 but not limtted to any peiEonal financial intei'cst). Regardsng the iiivestments in the C.Q.S fuiids. by virtue of hi8 ultiinate beneficial owneiship of the CQS group. Sir Michael Hintze duly disclosed li]5 lllterest and ¢x¢luded himself frnm all discu&%ion8 and decisions in rclation to the irtv¢s¢imentq. Aftei. care1 consideration the fund5 weTe considered the best investment option by the odiei. Trustees, in Comparison to otliei. options available, in terms of perfoi'niancq risk, CUTreEi¢y. liquidity aiid suitabiliLy itj Jelatiun to the Foundation's pledges &nd creditor obligalions in line witl? the boundation'5 appi'oved procedures. 'Ihe foundation makes distribution.s in accordanee with its grant making policy. Further details of invcstments may be found in note 8 to the finaneial statements. The Trustees review the Foundation's invests?ienls on a regular basis artd remain of the view thal over the Jnediuiii temi tl)e portfolio will provide a satisfactory rern. 'Ihere are no restrictions on the Foundatioii's poiver to inv£8t. Reseiwes policy As at 31 December 2020 the Foiind&tion had Ir5¢rves ot. £1.020,320 (2019.. £364,206) held as uttrestricted funds. Tl)e rtservcs provide a pool of fuiid5 to support futuie pledge5. The TTUStees do not sct a targct level foi. res¢5,. but Irview them regularly to ensuiE that iEsourccs grc &vaElablc to cover pledges. Risk manxgtment The Trusiees identify and review ihe tiiajor risks wliich tlie Foundation faces on a regular basis and are satisfjed tt 5y5tenis and pToceduie5 are in p12ce to manage those risks. .8t2tement of policy on fundi'aising Tlie TnteeS do not undeitake any fundraising aciivities, althovgh they can accept offers to donate. Tl Trubtees in¢lude any slld) donations in tlie accounts a5"volvntary income" logeihei" witli dona¢ions made by trustees. The Trustees do tjot use prolessioiial fvndraisers 01 CoJnerCiaI paiticipator5' 01. indeed aiiy third parties to solicit donatinn%.'Flie Trustees art tlicitforc not subject to any regulatory scheme or relevant codes of pra¢tiee, nor have tliey rcccived any complaints in relation to fundrnising activities iior do the Trustee8 considcr it necessary to de8ign.%pecific proceduiu to monitor sucli activities. Future plans The Tru51ee5 plan to continue to make dtstributions in accordance witli their gi'ant making policy and to ensure tliat an appi'opTiate level of reserves is maintained.
The HIDtze FAmily Ch#ritabk Foundation Report of the Trllstees for the year ended 31 December 21120 (continued) Trus¢¢¢s' ¥esponslbilities in relation to the fjnanelal statsments The Trustees are irsponsibl¢ for preparing the annual report and the financial statements in accordance with applicable law and regulations. Charity law requires the Trustees to prep* financial stal¢n)cnls for each financial ye8J' in a¢¢ordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 10 July 2014, the Chariti¢s Act 2011 and UK G¢n¢JMlly Accepted AOUnting Practice as it applies from l January 2015. Under charity law the Trustees must not approve the fin4)ncia151atem¢nts unless they are satisfied that they give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resourees. including the income and ¢xEKnditure, of the Found70 forthat period. In pparIng these finan¢ial statements, the Tte¢S are required to.. 5¢1ect suitable CountIng policies and then apply them consistently observe the methods and principles in the Charities SORP. make judgements and auntIng estimates that are reasonable and prudent. state whether applicable UK A¢eoiinting Stdards have been followed. subject to any material departures disclosed and explained in the financial statements. prepare the fin8n¢ial stat¢m¢nls on the going ¢on¢ern basis unless it is inappropriate to assume that the harity will continue in business. The Trustees are resp)nsible for keeping adequate ac¢ounling ruords ihat are sufficienl lo show and explain the Foundation's Iransa¢tion$ and disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensuiE that the financial statements comply with ihe Charities Act 2011. They are also responsible for safeguarding the assets of the Foundation and hence for taking r¢asonabl¢ 5t¢P5 for the prevention and detection of fi?ud and oth¢i' irregularities. Appmved by th¢ Trust¢¢s on th¢ 20th August and signed o heir behalf by: Sir Michael Hintze Trustee Sir Michael Peat Trustee
Tlie Hithtie Family Chai'ilablÈ FoundatRoti Report of tlie indepeDdeDt auditois 2020 INDEIIENDLNI. AUDITOR'S Rb'PORT 'fo TIIE MEMBERS OF I'HF HINI'/.b: F'AMtLY C.IIAIiI'I'ABLE fioUNDATION opin0 We liave audited the financial slatements of Tlie Flintze Faiiiily CliariÉable Foundation {tlie 'cliai'ity') for the y¢ai' ended .31 December 2020 which Comprise the slatetnent of fjnancial activities, thc balance shcet, thc casli flow statcment wid not&% to the fin8n¢ial %tateineiiLq, Inclding a summary of significant accollnting policies. The financial IEP)Iting framcwork that has been applied in their prepardtion is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The FillacIaL Repop'litsg SiandoF.d applicable IF7 ihe UKandRepiibli¢ ofJirlondlUniled Kin8dorn (ienaxlly Accepted Accounting Practtcel. In oui. opitjion, the financial statenients.. give a true aiid fair view of tlie 4tate of tlie cliarity's affaii's as at 31 Decembcr 2020 and of its incomin8 resoui'ces and application of r&wui¢es for tlie year th¢n cndcd; liave heen propei'ly prepared in aceordance with United ICin8dorn Generally Accepted Accounting PractL¢e: aiid liave been prepared in accoi'dance with thc irquirements of the Charities Act 2011. Basi.$ for opinion We conducted oui. audit in accordance with Iii¢eniational St&)dards on AudititJ2 (UK) IISAS (UK)) and applicable law. Our responsibilitie5 ujider ihose standai'ds are furtlier described In die AditOr'S respotjsibilities foi- tlie audit Df tlie finle1a1 statements sectioii of oui. report. We are iiidependent of tlie cliarity iii accordance with the ethical Tequiiements that al-e i'elevant to our audit of the financial stateinent8 in the IJK, including the I.'RC.'s I'.thical .8tandard. and w¢ have fulfilled aur other ethieal rcsponsibilitics in accordance with thcse iequirements. We bclieve tl)at the audit evidence we have obtained is sufficiet)t and appropriate to provide a basis for our opinion. c0ntlusioS relAtillg to going concei Iii auditing tlie financial stalemeiits, we have concluded that the trustees, use of the going conttrn basi$ of accounting in the preparation of thc financial statemertts is approprEAte. Bascd on the work we have peTfomied. we have not identified wiy materI81 ncertntieS relating to events or ¢onditions ihat, indtvEdually or colltctively. Last signif&cant doubt on the ¢harily'S ability to conlini as a going ¢on¢em f(¥r a period ofat le2St iwelve niontlis froiii wlien the financial sÈalemen15 air aiithortsed for issiie. Our rcspon%ibilities and the responsibilitie% of the tru.%tees with respc¢t to going eon¢¢rn arc describcd in the relevartt sectlOl18 of thi.s rew)It. Oth¢r informatio The otlier inforination conipri5es the information included in tlie annual report oilier than the finartcial 5tstements and our auditor's report Ihereon. 'I'he trustees al'e respotisible foj. the other inforniation ColtlnCd witliiji tlie annual report. Our L)piiiIon on the financial statements does nat cover the i)ther infnymation and, except to the extent othei'wise cxplicitly stated in oiii. report, we do not ¢xpress any fomi of assuKanc¢ ¢on¢lusion ihereon. Our responsibility is to IEad tlie other informatiom and, in doiiig so. consider whether the other infoTll)aiion is niatrrially inconsistent with t]ie fjnancial statements OT our knowledge obtained in the coiirse of the Riidit or vtheiwise appears io be maiei'ially mtsstdted. If we identify sucli Jnaterial nconSiStenc1eS or apparent matei'ial Jiii55tateJnents, we ¢ TequiT¢d to deterniine wheilier tliis gives rise to a tndtvrial lilj5Stateinent in the linzntial slateinents tliemselves. If, based on tlie woi'k we have perfoijned, we Conclude that tlicre 15 a material niisslatcmeiit of tlit% (Trther ijiformation, we air Tcquired to rcport tliat fact. We have nothing to report in this rcgard.
Tlje Hintze Family Cliai'ilable Foundatioll Stat¢meDt of Fin&neial Activities foi. tlie yeai. ended 31 December 2020 Matters which we Are require(I to ieporl by exetptio We have notliing to report in ic5PeCt of the followino mattci's in i¢latiort to which tlie ChaTjties (Accounts and Reports) Regulations 2008 require us to rcport to you if. in our opinion: Ihe infomiation given in the trustees, report is illCOtlSE5tet)i iji any material respect with the fjnancial stateJn¢iits' OT sutYiciei)t aecountiiig I'ecords have not been kept; or tlie financial staien)ents are not in agreement with the 2CCOUliting records aIid returjis. oi. we have not received all the infoniiaiion and explanations we require for our aLxlit. Responsibilities of trustees As explained more fully in the trustet5' rtt%ponsibilities statement sec oui oli page 5, the trustees are respot]sible for the pi"epdrdlion of the financial statements and foj. being satisfied that they give a ts'ue and laii. view, and for such internal control as the ti'ustees determitie is necessai'y io enable the preparation of fJJiaJicial stateiiients that al'e free froin inaterial Jiii5Staknnent, whetlier due tcj fraud or eiTOI'. In Preparing the financial statement% the trustees arc responsible for 8S5essÈnts the cliarity's ability to ¢ontiiiue a going conccm, disclosing. as appli(xble, matters i'e12ted to going conceTr'n and using the goinu concei'n basis of accounting unless the trllstees either Innd liquidate the charity or to Lease operations, or have no realistic alternative bul lo do 50. AudTtoY'.S If5ponsibilities foi. the 8udit of the financial st%tteThent.s We Iiave been appoiiited as auditoi. under section 144 of the Charities Act 2011 and ieport tn accordance with tl)e Act aiid relevant IEgulations made 01.112vi&ig effect tliereuiider. Our objectlves are to obtain reiable a%5UTan¢¢ about whethcr thc financial statements a whole are free froin m¢1terial misstatenient, whethei. due to fraud or crror. and to Issue an auditor's I"eport that includes auy opinion. Reasonable assurance 1.8 a high level of assuizncc, but is not a guarantee that an audit cducted in accordance with ISAS {UK) will always deteci a maieri81 tnisstatejnent when it exists. Mis5tatenients can arise from fixud or error and considered Jnaterial if. individually or in tlie a¥grtt¥at4 tliey could reasonably be expected ¢0 influence tl)e economic decSlUnS of useis taken oti tlie basis of tlies¢ fjnanrial staiemeiits. Irregularities, including fraud, are i115tall¢es of non-compltance with law% and regu121ions. We desig procedure5 ifl line with our responsibilitics, outlined above, to detect material misstawnents in respe¢i of irregularities, Encluding fraud. DEscussions wilh and enquirie5 of managenient 2nd those Ched with governanLe were held with a view to ideiilifying thu5e laws and Jrgulalions tliat could be expected to have a material impacl on the fIrtanciJl slateinejits. l)uriiig tlic enga. enient tcam britfin& tlie outcoiiies of thesc discussions aiid enquiTies were %hared with the teani, a5 WCII as consideration as to where and how fraud may i)ccui' in the entity. Thc following laws and re8lll8tions were identified as being ofsignificance to the entity-. Tliosc law5 and regulations ¢onsidere(l io h4ve a direct effeet on the fjnancid st2tetnents include UK fjnancial reporting i'egulatlolls. Clvartstt$ Act. Tax and Pensions leuJislatlOA, and distribUb]e pi'ofit4 legisla(ion. Audit protedtlTes undertakeii in response to tlie potential i'i5k5 relatiiJg to irregulaL'ltie% Iwlii¢h in¢lude fraud and non-compliance witli laws and IEgulationsl coniprised of.. inquiries of managenient and those ¢liarged with
Tlic lJiiitzc Family C.hai'ltgble FoundAtioll Stateiiient of Fillancial ALtÈviti¢s foi. the year ellded 31 Deceniber 2020 governance as lo wliether tlie entiiy Ctsmplies with sudi 121vs and regiilations,. enquiries with tlie sarTse coRcei'iLÉIiB any a¢¢ual or potenlial litigation or claitns. inspection of Televanl legal eor¥espondcnce,' review of bO.d n)inute5,' testing tlie ai)propi'iateiicss of journal enti'ics. aT]d thc perfoin)ance of analyti¢al revtew identify unexpected movements in account balances wliich may be iiidicative of fraud. No instaiices of material non-compliance iYe]'e identified. Howevei., Ihe likeliljood of detecling irre8ularilies, iiicluding fraud. is litnited by th¢ itherent diffjculiy in detectn8 ii'regularitie5. the etYert1vcsS of the entity's cuntrols, atjd tlie nature, tEJning and ¢xt¢rtt of iht audit pi'ocedures pei'fomied. Irregularitie5 that result from fraud MI1( be inlicyently Inore difficult to detect than ilTegylai'ities tliat re.%ult frotn error. As cxplaincd above. there 15 an uiiavo5dable risk that material mis5tatcmcnts tnay not be detect, even though the audit has been planned and pcrformed in acwrdance with ISAS (UK). A tther d¢s¢riprion of our re4)onsibilities for the audi¢ of the financial aleInentS is located on the Financial Repojting Council's website al.. litt s'.l/www.frc.or .uklauditOl'51es onsibil&tits. Tliis description forms part of oui. auditor's report. Use of our report This rcport is tnade solely io tlie charity's trustee4 as a body, in accolan¢t willi Part 4 of tlie Chwitieg (A¢¢ounts and Reports) RegulatiOll5 2008. Our audit woi'k I) been undertaken so that we niight state to the charily's trttee tljose n)atlers ive are Irquired to state to them in art auditoi s report and foi. na otliei. purpose. 'lo tlie fullest extent peiniitted by law, we do not accept oi. assiime re.%ponsibility to anyone othcr than the charity and tlie charity's trUet$ as a body, for oui. audit work, for this report. or for the opinions we have foTmed. Russell Joseph {Sellior Statutory Auditsjr) For and behalf ofBourner Ilullock, Statutory AuditQT Sovere&gn Hous 212-224 Sljafts'bury Avenue London WC2H 8HQ 20.08.2021 Boui"Jier Bullock is eligible for appointllient as auditor of thc charity by virtue of its eligibility for appointment as auditOT of a coinpany und¢r section 1212 of the Conipanies Act 2006.
Tli¢ Hiiit£¢ Family CliaritAble FuuDJatio Statenienl of Fin#iicial Activities foi- the year elided 31 Detember 2020 Note 2020 2019 Inetsme Donations= Voluntsry income 2,850.000 3,380,925 Investment income 12.330 Total Ineome 2,871,920 3.393255 Expenditure Cliaritable expenditure (885,174) (4,051.394) Other charges (723) (679) TotRI Expenditure {88S897) ({052.073) Net {LAlSS) l Gain on inv¢5tinent assets (1.329.909) 839,423 et gain 656,114 180,605 Fullds brought forward 364,206 J83,601 Total Funds CAriied fonyard 1,020J20 364 206 All ielained fund5 are unrestricted. All anioui)ts ielate to continusng activities. Ttie notes on pages 12 to Ig rorm part of tliese fJnaTrcial stateinenls.
The Hintze Family ChAritable FouDdation BalAn¢¢ Sheet 4$ at 31 De¢emb¢r 2020 Not¢ 2020 2019 Fixed asset8 Investments 4 853 9119 Current assets Debtors: amounts falling du¢ within one year 12,658 2,134,533 Cash al bank 624J39 299.469 Creditors: amounts falling due within one year 10 1,829,298 4.286 370 N¢t ¢urrent 11gbllltAe$ (1,192JOI) (1,852,368) Debtor5'. amounts falling due after mor¢ than one year 200.000 200.000 Creditors- amounls falling due after more than on¢ year 10 (2,841,288) (4,002,669) Total net e13 1,020J20 364,206 Unrestrl¢ted fund$ 1,0211020 364,206 Approv by th¢ Truste¢s on 20th August and signed o their behalf and authorised for issue by: Sir Michael Hinlze Trustce Sir Michael P¢&t Trustee The notes on pages 12 to 18 form part of these financial Statements. 10
The Hinfze Family Chaiitabl¢ Foundatioll Statenient of Cash Flows for the yeai. ended 31 Decenibei. 2020 2020 2019 Nel gaiiifor Ilieyeor Adjustmeijts foi.: Net lossesl(gains} on investments Iiivestnient iiicome 656.114 180,605 1,329.909 121.920) 2.121,875 {3.618,453) 1839,4231 (12.330) (2,321,375) 87,881 (74.635) De¢reasol(increase) in debtoi's (De¢rease)/inciease in crcditOTS Foreign exdiangc loss on bank accounts and Creditors c.ash flows froni optr&tiiJg Activitles: Ivel cuslifroni/(N5¥diii) op¢r•lliig uclivilies 440.-$69 12,979.277) Cash flows fi'oni investiiig Activities: Dividejids and iTttere5t froii) investments 21,920 6,081,890 (6,246.465) {1,251,8941 1142,655) 2,675,129 12,330 3.914,693 Proceeds fi'om sale of iiivestinents Purcliase of investments Nel CliArD111 liiwliiig rtclivilies CliatrigÉ iii c$11 Mild eash e¥iiiiulei¥l.g iii Ilie reporfiiig period 297,914 (304.1481 F4oD cgs11 flow niovement due to foi'ei%ti excliange 26,956 299,469 74,635 528,982 CASIJ gild e%sh equlvalents tlie begiiiiiing tsf tlie r¢pDrting period 'Us11 niid crtsli eqiiivaleiEls ihe eiid of Ihe Yeporliiig peiiod 624,339 299,469 Aijfilysis of cash artd t$h equivllleiit5 2020 2019 Cash al bAtkk 624,339 299,469 299,469 Tolrtl i'usli lliid cfjsli eqiiiiinleiit 624,339
The Hi1Ze F&rnily ChaiitAble Foundatio Notes to the accounts for the yeAI' ended 31 Decembei. 2020 (torttlnued) J. PJ-iNcipal aeeouiitittg polloies (2) Accouthting tonventioJJs Tlie finwicial siateiiients liave beet) preprd under tlie liistorical cost conventioji, as modified by tlie iiiclusion ot-investmenls at market value. The financial ststemenL8 have been prepaird in accordance with tlie Statement of Recommended Praciice ApplEcable to Chaiities Preparing their aecounts in accordance with the FinancEal Reporting Standard Applicable iii the UIQ aiid Republic of Il'eland IFRS 1021 (2nd Editio effective janUY 2019) ("Charitics SOIIP"13nd ¢he Chdrities Act 2011. The financial statements have been prepared to ve a 'true and fair. view and l)ave dcparted from tlie c.harities (Acc()unts and Repoils) RegEJlations 2008 only to tli¢ extent r¢quired to provide a 'true and fail. view.. This depaTrure haq inv()Ived following 'AccountiJiu and Reportinu by Cliaritics.. Statement of Re¢onlielIded Praciice applicable to charities prepai'ing theii. accounts ill acl'danCe with the Financial Reporting Stand applicable in the UK and RepubliL of Ireland (FRS 102) ISeLond Editton), rather the Aceouiiling and KepDrting by Cliarities.. St&tement of Recommended Piactice effective fi'thin l Api"il 2005 wl)icl) has siiKe becn withdiawn. -Ilie I'oundation cort8titut¢s a public henefit entity as defEned by FRSIO2. The financial ststciiients aiE prepared tlie guing Loncem basis which assumes tliat The Hititze Family Charithble Foundation will co&ilinue in opeTational existence for tlie foitseeable future, Tlie Boxi'd of Trustees have con5i(fered the woi"ki*g capjlal and cash flow requirements and consider tliat the curient and forecast cash resouire5 are siififjciellt to covei. tlie working capital rcquiremcilts of die Foundation for at least 12 montlis. The prior year rIgre8 ale unauditcd. (b) Fulld #ecounting Funds held by the Foundation iinrestricted 8enei31 fiinds wliicli can be u5¢d in accordance with the charitable objects at tile di5¢retion of thc-l'iwstees. (c) Fixed asset InvestmenL8 Fixed as5¢t investments are inLliided at closing niai'ket values at the balance sheet date or at the TrLlStees' estimated value where there is Do niarket valJe. Arty gain or loss on revaluation is taken to the Statement of Finantial Activities. (d) Financial instrument5 Basic financial tnstrunienls, which include debtors, creditors, atld bank balances. are initially measured at 1rls8¢ti0n price including tiaiisaction costs and ale subsequently carried at ainorlised cost using tlie effective inlei'est Jnethod unles5 the ai¥angement ecjnstitlltes 2 finaneirtg t12nsaction, whcrc thc tranal0 i.% measured at the pres¢Nt value of the future reecipts diEcounted fit a market rate of inteTCSi. The Foundation only has basi¢ financial instruments. (e) Debioi Basie ftnancial assets, including re¢¢ivables from donorn and other debtors, ait initially recogniscd at tran%action pi"ice, unles.% the arraiigeincnt constitutos a fintsiicing trall5action, wheTe the transaction is IMett5ured at tiie prcsoit value af the futurc ieccipts discou2ited at a niaTket rate of inteiE5t. Such assets dre Subsequently carried at ainortised cost usillg (lie effective inteiest Jiiethod, less any iinpairinent. 12
{D Inconie Income froin donations is in¢141ded in incomtng resources when receivable. Gifts in kind coinpristng listtd secw'ities are mai'ked to market on tlie date of iEreipt. {g) Investment iiicome Investment income is accounted for in the pejiod in whiL]i it be¢om¢s dlle to the Fouiidation. (h) Expenditure I'xpenditure is in¢ludcd on an accruals basis. Grants payable are recognised a8 expendithre in thc ycai. in wliich the Foundation bec(Jm£% legally obliged or enters into a non-legally binding Commitment to make paymeiit. (i) Foreign eurreuel¢s Trallisactions in foreign cui'jrncics are recoi'ded at tlie Jate 011 tlie date of tl)e tiansactiort. Monetary assets and liabilitics denoniinated in foreigll ¢urrencics arc ttanslated at the excliangc rate at the balaii¢e sheet date. All foreign exchange differcnccs ait taken to the St8t¢ment nf Financial Activities. and al'e allocated to tlie parti¢ulai' tnmniitinent to which they relate or, if unrelated ¢0 a particular commEtsnent, pix> rata to the total clwitable commitments entered into during tlie year. ti) Realised aiid unrealised gain5 Aud1055es All gains aiid losses ar¢ takeii to the Statcmcnt of Financial Activities as they 8rise. Re21ised gains and losses on investments alt lCulated as the diffeience betweeii sales proceeds and u)SL Umealised gains and losses are calculated as the diffei'ence between mdl'k¢t or Tru5tees' valuation at the yeai. end and opejiing niai'ket or Trustees. valuations or dt cosl if acquiTed dui'ing Ihe yeai.. Changes in unrealised gaitts and losses reflect the clianges in Imai-ket 1}s(teS, valuations diii'ing the IEpoJ%iiig peiiod, and the write-back of prcvtously JtLorded unrea5ised gai115 and 105se8 whei) Ili¢ irtvestimeiits are sold. Realised and unrealised gains are not shown separntely in the Stsiemeni of Ftnancial Activities. (k) Grgnt comwitnients In the case of unconditional ant offer this 15 IEcognised once the Te¢ipi¢nt l)as been i)otified of the grant award. Ctrrant crcditors are ¢lassifJed as am(>unL% falling due within one year or amounts falling due aft¢r one year bascd on the payment dat¢4 tiTr he made. FRS102 rcquire5 Trustee5 to apply disLount l-ates lo longer lerm charitable ¢ommiiments (those to be made rnoi'e th¢in one yeai. after the balance sheet date) to iEState them at their prtsent values. Voluntary Income Unr¢$tri¢Éed Ullre$tYicted Fumds FuJJd$ 2020 2019 Donallons, Grants and Gifts from'l rustee Donaitons, CFrants and Gifis from others 2,850,000 3,264,OUI 116.924 2,850,000 3,380,925
Tlie Hintze bamily Chaiitable Faund&tio Notes to tht aceounts fot. the year ¢iided 31 Deceniber 1020 {eontiiiued> Investn]eTkt IIiLome 2020 2019 InvcstmenLs managed by'l rustees.. Equities Loans 15,920 6,000 7,566 4,764 Total Investment Income 21,920 12,330 Investmertt irtcome Consists of inlere5t earne(J on loans, and dividetmls received from equstie5 and fuiid invesknnents. Otljei. Cljxi'ges 2020 2019 Bank and broker charges Investment Portfolio charges 723 644 35 723 679 Allocg(loii of support costs Support ¢osls allocable to Charitable Activities are &$ fallows-. 2020 2019 Staff costs (see llote 6) ConsultanLy cOS Admini5tTatiort Charges (Mhcr Foietgn exchaiigc Ios5 not directly allocated Auditors, remunerotiOD 31,831 31,746 4,500 66,674 2,296 133,875 6.960 66,399 2,027 11,500 6,240 118,597 246,OSJ ConsultAn¢y costs relate to administration services. Support costs are attribiited to individual grants pro rata to each grant's financial amounl, as stated in note 7. 14
The Hint7.e Tr'Amily CIIArit8ble Found#¢lon Notes to th¢ 4e¢ou7Jts foi. the yeAI' ended 31 Decembei. 2020 {conttllued) Staff ¢ost$ 2020 2019 Salary 'mployer's National lllsurance & Pension Contribution5 31.000 831 30,967 779 31,831 31,746 1.here was one employee diiring tlie period (2019: aiie).. tknrothy. LAdy Hintz< the Chief Executive. LAdy l.lint7£ IS the wif¢ of Sir Michacl Hintze. a Trustee of the Fow)dation. Ttust¢ts received t]0 remuneration and were not reiinbursed for any expenses. Expeiiditure Chailtable CommitNiellts FoiEig Exchauge Support Costs TotAI 2020 Total 2019 Arnied Seivices CiilturAIIAris Educational Htrdlth Religioiis Sociallb.nvironment 72,024 1,802 3.571 23,698 6,795 1663) 73,826 175,339 509,955 140,087 {14,067) 34 296,179 3,100,092 372,405 IU4.211 284,514 {106,007) 70,350 14,830 {.3C57) (1.419) 471,427 133,659 (11,9851 34 Net eliaritsble donatlOD5 cofftniitmetkt$ 766,577 83 J94 35,203 885,174 4,0SlJ94 2020 Number 17 2019 Numbtr 38 NumbcT of institutio$ receiving tharitable comniiiments Tlie chayitable LonJiiilments of £766.577 (2019.. £4,013,853) ts tlic sum of the donations and cliariiable co[11tinetS of £690.152 (2019.. £_3,958,8521 which iepres¢nt legally (Ibligated and committed charitable gi'ants made dui'ing the year and tlie nct discouiitints ¢liarge of £76,425 {2019.. £55.001). Of tlie coniinitments pledged 2020. £35i.99412019'. £2,936,194) will be paid in futiire years. To Comply with FR8102, tl)e OUtstld1]Ig graiit coiiiniit1nent, inclLiding Iliose pledged in prior yeaTS. are discuuntrd tu dieti. present value5. 'fhks has resulted in a net charge of £7().425. -lkne charge ha8 arisen priiiiarily hecaiisc as tlie i)ayinent dates for pledge.4 iade bcforc 2020 becoll)e Closer, the overall discount on all olltstandi118 plcdg&s i"edu¢es. 15
Tlie Hintze Family Cliai'rtable Tr"oundatioll Notes to the accounts fni- the y¢g1' ended 31 December 2020 (eODtlnu¢d) Fixed As5el Investments 2020 2019 Mai'ket value brought forward 6,019,243 7.842,619 Acqui%itions at c(LEt PrOedS fi'om sale of investments Net {lossl I gain on revaluativn Net loss on foreign exchgn8e 6,246,465 1 ?51894 (6,08 1,8901 {3.914.694) {1,305,6361 938,550 124.273) (99,126) Markct v&lue carried foiward 4.853,909 6,019,243 Ibstorical C05t 5,134,506 5,006,802 The net loss on investinent assetg is £1,329,909 (2019.. gain £8.39,423) which is the total of nct (loss) I gairt oji revalualioii and nei loss oli forei exclianot. Investments comprise: 20211 2019 Investments nianaged by I'ruslees.. CQS Credit Multi A.%%et Fund CQS Directional Opportunities Fund 744,537 2,427,321 1.828,874 4.190,369 3,171,858 6,019,243 Other.. AstralIan l)ond% 1,681051 1,682,051 Market v&lue carried forward 4,853.909 6,019,243 16
The Hintze Family Chgritable Foundation Tr4ote$ to the accuuDt$ for Ilie yeai. ended 31 Decembei. 2020 (continued) Debtor5 2020 20J9 Amoullt5 du¢ wlthin oue yeai-. PrepAynients Receivable frotn donoi. 1,050 2,498 2.115.585 16,450 11,607 12.657 1134,533 Amounts due afiei. more thali one year: l.oans 2(10,000 200,000 212.657 2,334,533 Thc loan of £200,000, included within debiors due after moiE than one year, was made to a benefi¢iary uf the Ch.ity in 2019. The 108n accrues interesi at 3 /• and is paid quarterly in arrears. Ihe loan is expected to be i'epaid in 11 ii) 2024. 10 Ci'eJitois 2020 2019 Amounts de withtn one yeai.: Chai"ilable comniitments Other creditors 1.771.747 57.551 4,211,440 74,930 ,829,298 4.286,370 Amuuttl$ due after inore tban one year: Chai'itdble cointii1J7I¢1its 2,841,288 4.002.669 4,670,586 8,289,038 To ¢omply ivitli l.'RS102 all grant commitmcnts t]ot due tn be fi]lfilled ivithin one yr have been discoliiiled to tlieir pie5Cllt valuc. Tlie prc-discounlints amouni of the conllnitin¢nts £4,625,468 {2019.- £8.302,96.S). Thc iticrease in ¢hariiable expenditure in the yeai. £76,425 (2019.. £55,001). 17
Tli¢ Hitht7.e Family Charitable Foundatio Notes to the accollnts foi- tlie y¢ai' ended 31 December 2020 (tontinued) 11 Related party ti'aiis#cllon$ The Foundation niakes coinmithiients and donations to a nuinbcr of charities thai one or more tTUStees have a particular interest iii. The Foundation operates a ¢ontltcts policy that i'equires all actual or potential conflicts of iniercst Éo k disclosed at fnjslee ine¢tings. The Trst Deed requii.es that trustee must abseiit his or herself fron) any discussions of tlie TTUStees in wliicli it is possible tl)at confli¢t will arise between his or her duty to act solely Jn ihe tnterests of the I'oundation. In line with the Trst Deed Sir Mi¢hael Hintze, a TTU5tee of the Foundation. duly disclosed his interests in IElation to thc related party transa¢ti()ns disclosed here dnd absented himself frum all di5Gussion$ and dcci5ions in relation to the poteiitial investments and donat2ons'. Services by CQS {UK) LLP and CQS Jersey Liniited tjiereaftei", of which Sir Michael Hilltze is the ulumate beneficial ownei.. CQS (UK) LLP cliargcd £57,221 {2019,. £59,791) and C.Q8 Jthvy Limited charged £9,17912019.. £6,882) for sei'vice8 Provided to the foiindlltion during Ihe year. The balaiice reinaining to be paid at tlie year-end to CQS (UK) LLP was £37,291 (2019.. £59,79112nd to CQS Jersey l.irnited £6,884 (2019.. £6.882). Investments have been made into tlie followin& tunds of the CQS gTOUP lof wliich Sir Michael Hintze 25 the ultimate beneficial owner). After cai'¢ful consideration the funds weir coiisidered the best ijivestnient options by ilie otheT trustees in compai'ison witli other options available, taking into a¢¢OLint perfoiynance. risk. eurrcncy, liquidity and suitab&lity in ielation to the FoundatlOll'5 pledges and othei. creditor oblÉgatioits. During d)e year the net investment iti GBP in the CQS Credit Miilti Asset I'und WLS £8(KJ.001 {2019.' i'edeiiiptioi) £1,237,595} and tlie value of tlie invesinient wa5 £744.537 {2019.. £nill Rt tlie year end. I)urÈng die yeay the net Tedeinption in GBP in the CQS Dii'ecttonal OppoTtunities Fund l.imited was £1,7.40,aoo 12019.. £nil) and the value of the investment was £1,616,519 {2019.. £4.190,3691 ai the ye2r end. Durijig dje year the net redemption in IJSD in the c.os r)iYcctional Opportunities Fund Liiniled iv&g £595,12.3 (2019.. £iiil} and tlie valuc of tlie iiivcstment was £810,801 (2019.. £1,828,873) at the year ertd. A grant of £150.000 was niade during the year to The Institute ofE¢onomic Affairs Limited. a UK regisTrred charity of which Sir Michael HiEitse is a trustee (2019.. £nill. -lkne ba12tJce reniainin8 to be paid at ihe year-eiid was £IOO,000 (2019.. £nill. A grant of £120,000 was inade during tlie year to tlie Royal Navy & Royal Mai'iiies Cliarity. & UK rewstei'ed charity of which Sir Michael Flintze is the Senioi. Vice-Patron. Th¢ ove]311 coinmitment reniaining to b¢ paid at the year.end was £900,000 (2019.. £1,110,666). Du¥ing the year Sir Imichael Hintze Inade volunt£ry donat&ons to tlie l.ound2tion of £2,85D.(M)O {2019.. £3.264,001) to assist ihe Fouiidalion witli furthei7nce of its pi'incipal objcctives.