COMPANY REGISTRATION NUMBER: 5178537 CHARITY REGISTRATION NUMBER: 1105916
THE JAMES TUDOR FOUNDATION Company Limited by Guarantee FINANCIAL STATEMENTS 30 SEPTEMBER 2022
GODFREY WILSON LTD
Chartered accountants & statutory auditor 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022
| Page | |
|---|---|
| Trustees' annual report | 1-14 |
| Independent auditor's report to the members | 14-18 |
| Statement of financial activities (including income and expenditure account) | 19 |
| Statement of financial position | 20 |
| Statement of cash flows | 21 |
| Notes to the financial statements | 22-32 |
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 30 September 2022.
REFERENCE AND ADMINISTRATIVE DETAILS
| Registered charity name | The James Tudor Foundation |
|---|---|
| Charity registration number | 1105916 |
| Company registration number | 5178537 |
| Principal office and registered | Trym Lodge |
| office | 1 Henbury Road |
| Westbury-On-Trym | |
| Bristol | |
| BS9 3HQ | |
| England | |
| Directors/Trustees | M G Daw (Chair) |
| R R G Esler | |
| L A Hooper | |
| A F McPherson | |
| S K Wren | |
| Foundation Director and Company | S J M Stewart (up to June 2022) |
| Secretary | |
| Chief Executive | L Serratrice (from July 2022) |
| Auditors | Godfrey Wilson Ltd |
| Chartered accountants & statutory auditor | |
| 5th Floor Mariner House | |
| 62 Prince Street | |
| Bristol | |
| BS1 4QD | |
| Accountants | Elliott Bunker Ltd |
| Chartered accountants | |
| 61 Macrae Road | |
| Bristol | |
| BS20 0DD | |
| Bankers | National Westminster Bank Plc |
| Bristol City Centre Branch | |
| 45/49 Broadmead | |
| Bristol | |
| BS1 3EU |
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (continued) YEAR ENDED 30 SEPTEMBER 2022
Solicitors
Investment Managers
Veale Wasbrough Vizards Narrow Quay House Bristol BS1 4QA Evelyn Partners 45 Gresham Street London EC2V 7BG
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (continued) YEAR ENDED 30 SEPTEMBER 2022
TRUSTEES' REPORT
The trustees, who are Directors for the purpose of the Companies Act 2006, are pleased to present their Annual Report together with the audited Financial Statements of The James Tudor Foundation (“The Foundation”) for the year ended 30 September 2022.
The trustees confirm that the Annual Report and Financial Statements comply with the current statutory requirements and Accounting and Reporting by Charities: the Statement of Recommended Practice issued effective 1 January 2019 (Charities SORP (FRS 102)).
Reference and administrative details of the charity, the trustees, advisers, and key management of The Foundation during the year under review and up to the date of the signing of the trustees’ report, are set out on pages 1 and 2 and form part of this report.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Foundation is a charitable company limited by guarantee. The governing documents for The Foundation are the Memorandum and Articles of Association. The trustees are appointed by the Board. The Articles of Association provide for a minimum of three trustees, to a maximum of ten.
The Foundation was funded by an endowment following the transfer of membership rights from Bristol Contributory Welfare Association Limited (BCWA) to Hospital Savings Association Group in 2004. The Foundation honoured disbursal obligations that were made at inception and their fulfilment resulted in over £5 million being provided to charitable causes up to February 2007. Since the conclusion of the obligation, trustees have set a strategy of living within The Foundation’s means so that future beneficiaries are not disadvantaged; this strategy has allowed a further £12.6 million to be awarded to charitable organisations since February 2007.
The Board has formally approved arrangements for the recruitment and induction of new trustees and keeps the skills requirement of the Board under review. If a trustee retires, or additional trustees are required, the Board considers recruitment. On appointment, new trustees are provided with an information pack containing a brief history of The Foundation, copies of the latest set of Board minutes, a copy of the most recent Annual Report and Financial Statements, a copy of the Memorandum and Articles of Association, together with copies of the Charity Commission's guidance "The Essential Trustee", the Good Governance Code and public benefit guides. New trustees are asked to attend a short induction with the Executive Team at The Foundation’s offices.
All trustees give their time freely and no remuneration was paid in this year to any trustee of the company. Details of trustees’ expenses are disclosed in the financial statements (see Note 14). Trustees are required to disclose all relevant interests, and these are reviewed annually and recorded in the trustees' register. In the event of a potential conflict of interest the affected trustee does not take part in any decision making and this is recorded in the minutes of the appropriate meeting.
There were no changes in Board personnel during the year.
The Foundation’s financial year runs from 1 October to 30 September; meetings of the Board, at which grants are awarded, were held in December, February, May, and September. Any discretionary awards made by The Foundation’s Chief Executive during the year were ratified at the next available Board meeting. At their quarterly meetings the Board agree strategy and areas of activity for The Foundation, including consideration of grant making, monitoring, and evaluation of awards, investments, reserves, risk-management policies, and The Foundation’s general performance. The day-to-day administration of grants and the processing and handling of applications prior to consideration by the Board is delegated to The Foundation’s Chief Executive.
The Foundation is run on a day-to-day basis by The Foundation’s Chief Executive, assisted by two members of staff.
The Foundation does not actively fundraise and seeks to continue its charitable work through the careful stewardship of its existing resources.
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT (continued) YEAR ENDED 30 SEPTEMBER 2022
The Foundation is a member of the Association of Charitable Foundations (ACF) and of the Charity Finance Group (CFG). Professional advice is sought from external advisers as and when necessary.
CHARITABLE OBJECTS AND ACTIVITIES
Charitable Objects
The James Tudor Foundation has a principal object of the relief of human sickness. This is achieved by making grants to UK registered charities, exempt charities, and charitable incorporated organisations (charitable organisations) in response to proposals that fulfil The Foundation’s charitable objects, adhere to its guidelines, and are of public benefit. The Foundation seeks to support small charitable organisations, to improve the financial position of small to medium-sized charitable organisations and to contribute to medical research that has a high probability of a positive clinical outcome.
Activities
The main activity of The Foundation is the award of grants to Charities and Charitable Incorporated Organisations registered in England and Wales, Scotland, and Northern Ireland, as well as to charitable organisations with exempt charitable status in those countries. Grants are not awarded to individuals. In addition to making awards The Foundation offers non-financial support such as advice from Foundation staff on eligibility, the application process, signposting to other suitable organisations as well as the provision of pro-bono workshops and advice to small charitable organisations seeking funding.
Public Benefit
The trustees have regard to the Charity Commission's guidance on public benefit in directing the work of The Foundation and in ensuring The Foundation’s compliance with the Good Governance Code and the provisions of the Charities Act 2011 as amended.
Grants are awarded to UK registered charities, charitable incorporated organisations and to UK organisations that are considered to be of exempt status, which themselves meet public benefit requirements.
GRANT MAKING POLICY
The Foundation established its grant making policy to carry out its purpose of the relief of human sickness. In general, the trustees seek to make the most appropriate award in terms of scale and duration, and that which will achieve a discernible public benefit. Grant recipients are required to report on the outcomes and impact of their award.
The Foundation seeks to support small to medium-sized charities and charitable incorporated organisations where awards can achieve the greatest impact. Grants are made across five funding programme areas to eligible organisations across the UK; annually between 10% and 12% of awards, in terms of value, are granted to provide support for UK charitable organisations working internationally .
GRANT APPLICATION PROCESS
The Foundation is listed in national directories of grant makers. The Foundation publishes application guidelines and makes these available from its website (www.jamestudor.org.uk). Additionally, the website provides information on terms and conditions of funding, exclusions, reporting requirements, as well as examples of previous grants awarded. The Foundation’s website contains an eligibility checker, for organisations considering an application, to use as an initial check. The Foundation’s grants management team is available to respond to questions of eligibility and other enquiries by email and telephone .
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
Application and Assessment Process
The outcomes from the assessment of an eligible Stage One application are:
- Applicants are invited to make a full application for
GRANT PRIORITIES AND SELECTION PROCESS consideration by the Board.
- Outline applications are referred to the Board for an
The trustees use a model of programme areas to help potential indication of support. applicants interpret the principal aim of the relief of human 3. Outline applications are declined.
sickness. The trustees undertook a strategic review of these
Full applications are referred to the Board at the next available programme areas in March 2018 and concluded that the Board meeting. programme area of 'Other Means' was no longer required; in
addition, changes in the priorities for Palliative Care were
Grants are made according to the availability of funds, adjusted. The table below reflects the revised position. supporting financial information, the worthiness of the cause and the level of confidence in the applicant’s ability to deliver the intended outcomes. The lead time to a final decision is between six to nine months and decisions are communicated to applicants shortly after the Board meeting at which their application was considered.
The trustees retain the right to make exceptional grants that fall outside these categories providing that such awards will meet The Foundation’s charitable objects and the recipient is eligible. Grants are generally approved in the following grant value brackets: less than £5,000 (30 grants in 2021-22); £5,000 to £9,999 (44 grants in 2021-22); £10,000 to £24,999 (22 grants in 2021-22) and £25,000 and above (two grants in 2021-22). The average grant value was £7,500 in 2021-22 with a total of £741,980 committed across 98 grants. The most common grant value was £5,000 (26 grants). In line with grant making strategy, The Foundation applies detailed exclusion and guidelines which are published on its website; these are reviewed annually.
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
ACHIEVEMENTS AND PERFORMANCE
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Applications received in
2021-22
21%
79%
Eligible Ineligible
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The Foundation received a total of 315 applications in the year under review, of which; 65 (21%) were ineligible to apply for funding; 59 (19%) applications were declined internally, and 10 (3%) applications were declined by the Board.
Of the remaining 181 eligible applications, 98(54%) were awarded a grant by the Board, 17 (9%) were withdrawn by applicants; nothing further was heard from 3 (2%), 38 (21%) were incomplete applications and 25 (14%) applications remained in progress at 30 September 2022.
Grant making activity 2021 – 2022
A total of 98 (2020-21:93) new grants were awarded to charitable organisations. No grants were made to individuals.
Grants, net of amounts refunded to The Foundation, of £741,980 were awarded in the year (2020-21: £600,755). At the balance sheet date there is £255,884 to be paid at a date in the future (2020-21: £233,307), of which £66,132 falls due at a time greater than one year (2020-21: £15,050). Of the 98 grants awarded, 68 (69%) grants were awarded to organisations that had previously received funding from The Foundation.
2021-22 Grants by UK Region
London and the South East Bristol South West of England Midlands West Midlands Scotland East Midlands North East of England Wales North of England Bristol
In the year, The Foundation awarded 98 new grants. 17 (17%) grant recipients were based in Bristol; 74 (76%) were based in the Rest of England; 4 (4%) in Scotland, and 3 (3%) in Wales.
Among these, The Foundation made 13 (13%) grants to UK charitable organisations working overseas in Afghanistan, Cambodia, Kenya, Madagascar, Malawi, Nepal, Uganda, Ukraine, Zambia, and Zanzibar.
The Foundation made grants across the same programme areas as the previous period:
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
Values for Year ending 30 September 2022:
| Programme | No. of Awards |
Percentage of grants awarded in this funding programme |
Programme grants value |
Percentage of grant value in this funding programme vs Total grants awarded in year |
|---|---|---|---|---|
| Palliative Care | 7 | 7% | £80,881 | 11% |
| Medical Research | 8 | 8% | £159,846 | 22% |
| Health Education | 23 | 23% | £150,211 | 20% |
| Relief of Sickness | 45 | 47% | £279,128 | 38% |
| International | 15 | 15% | £71,914 | 9% |
| Total | 98 | 100% | £741,980 | 100% |
Values for Year ending 30 September 2021:
| Programme | No. of Awards |
Percentage of grants awarded in this funding programme |
Programme grants value |
Percentage of grant value in this funding programme vs Total grants awarded in year |
|---|---|---|---|---|
| Palliative Care | 9 | 10% | £100,714 | 17% |
| Medical Research | 6 | 7% | £92,331 | 15% |
| Health Education | 18 | 19% | £106,874 | 18% |
| Relief of Sickness | 45 | 48% | £242,066 | 40% |
| International | 15 | 16% | £58,770 | 10% |
| Total | 93 | 100% | £600,755 | 100% |
A list of material grants approved (in excess of £15,000), for the year, is listed in note 7 of the accounts.
FUNDING PROGRAMMES GRANTS ALLOCATION 2021-22
Palliative Care
Palliative care provides community services and end-of-life support to adults and children affected by life-limiting illnesses and complex needs.
The Foundation supports both adult and children's hospices across the UK. A total of £80,881 (2020-21: £89,936) was awarded over 7 grants (2020-21:9). Grants awarded supported:
-
Hospice Services including community-based care providing hospice services at home (Prospect Hospice, Children Hospice South West, and Hospiscare), nurse-led palliative care clinics (Dorothy House Hospice), and in-patient hospice care (a small discretionary donation to Sue Ryder Care); and
-
Posts including a Healthcare Assistant (Longfield Hospice Care) and a nursing post (St Peter’s Hospice).
-
Beneficiaries in this category ranged in age from a few weeks to elderly patients suffering from advanced dementia and adult end of life patients requiring complex care.
One discretionary award was made in this category.
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
Medical Research
Medical Research contributes to knowledge, academic advancement and ultimately symptom relief. Research outcomes improve the quality of life, public health, the effectiveness of public services, policy, and the economy. The Foundation continues to demonstrate support for medical research; grants made in this area benefit academics and future researchers through education; the dissemination of findings; on-going research and has a goal of positive clinical outcomes. 8 grants (2020-21:12) were awarded in this category totalling £159,846 (2021: £163,062).
Research grants were awarded for the following projects:
Care of diabetic ulcers (Griffin Institute); improving outcomes in older women with ovarian cancer (Wellbeing of Women); the development of a new burns dressing to be used in a paediatric setting (University of Bath); PhD researching bowel cancer (University of Bristol); PhD researching paediatric brain tumours (University of Nottingham); PhD researching links between dementia and depression (University of Bristol); the development of pre-pregnancy endometrial tests (Tommy’s); and a capital grant towards the creation of a paediatric clinical research facility (Bristol and Weston Hospital Charity).
No discretionary awards were made in this category and no multi-year obligations were created.
Health Education, awards, and scholarships
The key benefits in this area of funding are the publication and dissemination of health-related information, the benefits accrued through scholarships and the introduction of newly acquired practices to medical practitioners, other health professionals, sufferers, carers, and the public.
This year 23 grants (2020-21:12) were made totalling £150,211 (2020-21: £96,673).
-
Health education grants awarded in the period included:
-
Continuing development of programmes for healthcare professionals (Care Workers Charity, Great Western Air Ambulance, PMRGCA, Medics 4 Rare Diseases);
-
Continuing development of information resources for patients and carers (NAM Publications, Ataxia UK, Ovarian Cancer Action, Together for Short Lives, Trekstock, Max Appeal, Tastelife UK, Meningitis Now, Jo’s Cervical Cancer Trust, PBC Foundation, British Thyroid Foundation, Penny Brohn UK, Children’s Cancer and Leukaemia Group, Haemochromatosis UK, NRAS, and Acacia Family Support);
-
Bursaries (Anglo-French Medical Society); and
-
Events (BRACE, London Air Ambulance, and Anglo-French Medical Society conference).
No discretionary awards were made in this category.
The Direct Relief of Sickness
This is the most populous category by number of awards. 45 grants (2020-21: 50) were approved, representing a broad range of causes spread throughout the United Kingdom. These awards contribute to the preservation of health and assist in the treatment and care of people suffering from mental or physical illness. The net amount awarded in this category was £279,128 (2020-21: £300,730). Many recipients were smaller charitable organisations operating in specific geographical areas or a larger organisation requiring support for a local need.
The relief of sickness is a broad category of grant-giving covering charitable organisations that are tackling a range of issues and individual needs. Funds were made available for:
-
Posts to support adults and children with a range of conditions (DEBRA, Springboard Opportunity, Beyond the Horizon, SMA Support UK, Aspire, Spinal Injuries Association, King’s College Hospital Charity, Rainbow Trust);
-
Mental health or disease-specific counselling for children, young people, adults, and their carers (Suffolk Mind, Bristol and District Tranquilliser Project, Cancer Support Scotland, Devon in Sight, Headway Hertfordshire, Living Options Devon, Womankind, Harbour);
-
Services to support adults, children and their carers with physical and mental health issues (Bristol and Weston Hospital Charity, Children’s Cancer and Leukaemia Society, Go Kids Go, Dame Vera Lynn Children’s Charity, Hydration Foundation, Walsall Society for the Blind, Hoarding UK, Middlesex Association for the Blind, Heel and Toe Children’s Charity, ICP Support, Kent MS Therapy Centre, One25, Shift MS, Warwickshire Vision Support, Integrated Neurological Services, Islay and Jura MacTaggart Leisure, Cerebra, BIBIC, Tenovus, Care for Veterans,
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
Lullaby Trust, Nerve Tumours); and
- Equipment and miscellaneous awards (Action for Kids, Designability, Daisy Garland).
Projects in this category of award are located across the UK, beneficiaries are children and adults of any age.
4 discretionary awards were approved (Go Kids Go, Comic Relief, Cancer Research UK, Anchor Society). No multi year awards were created .
International work for the relief of human sickness
This programme recognises the significance of work funded overseas, as well as the need for an additional level of due diligence and grant management to ensure that national laws are adhered to. The Foundation has supported a number of initiatives across 3 continents this year ranging from education programmes to sanitation and hygiene projects. This year a total of 15 (2020-21:16) grants were approved. The total awarded was £71,914 (2020-21: £60,739). Grants in this category are only made to UK registered charitable organisations working overseas.
The Foundation considers this an important area of support where smaller awards together with good relationships and excellent reporting provide valuable results that contribute to The Foundation meeting its objectives.
The Foundation approved awards to support:
-
Mosquito nets for a home for homeless children (Aim for Change);
-
Vision support project (Vision Aid Overseas);
-
Cardiac monitor (Impact);
-
Specialist cardiac training (HIPZ) and other specialist medical training (Wonder Foundation);
-
Neonatal Intensive Care specialist training for medics (Angkor Hospital);
-
Palliative care training (Hospice Care Kenya);
-
Maternal and Child Health services (Seed Madagascar);
-
HIV/AIDS awareness and services (TEMWA);
-
Health support services for children (Education for the Children);
-
General healthcare services (Leprosy Mission); and
-
• Palliative care at home provision (On Call Africa).
Two discretionary grants were approved (Disaster Emergency Committee) and one nomination from a member was awarded a grant (Rotary Club of Bristol) all for humanitarian relief appeals. No multi year awards were approved.
PERFORMANCE, MONITORING AND FINANCIAL INFORMATION
The Foundation places great emphasis on the monitoring and evaluation of all awards so that it is satisfied that grants have achieved what was originally intended.
The Foundation publishes guidelines to help grant recipients provide information on the progress and outcomes of awards. Reporting timescales are rigorously enforced for the duration of the award and further reports are requested when necessary; in the case of a multi-year award incremental payments are not released until The Foundation has received satisfactory reports. A recipient's failure to provide adequate, appropriate, and timely reporting may impact on The Foundation's consideration of future applications.
The reports received provide information to The Foundation so that decisions can be made on the effectiveness of award programmes, award progress, award achievements and outcomes as well as ensuring that funds are spent effectively. Reports enable The Foundation to ensure that recipients adhere to requirements to fulfil public benefit and can demonstrate how they have achieved this.
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
FINANCIAL REVIEW AND PERFORMANCE
The Foundation is funded by an expendable endowment and is dependent on the income from its investments.
The total income in the year ended 30 September 2022 was £961,915 (2020-21: £866,173).
£996,488 (2020-21: £830,282) has been spent on charitable activities and the governance and administration of The Foundation, of which £741,980 (2020-21: £600,755) was grant funding.
In recent years, except for the year ended 30 September 2021 due to the impact of the pandemic, the funding formula has been related to the total net assets of The Foundation at the conclusion of the previous financial year and not income generated during the year. In 2021-22, The Foundation’s grant making budget was set at £700,000 and then revised to £775,000 in May 2022, three months before the end of the financial year when it was safe to estimate the total return of the portfolio.
INVESTMENT POLICY AND PERFORMANCE
Within the trust deeds there are no restrictions on The Foundation's power to invest. In accordance with The Foundation's investment policy, fund managers are instructed to make investments under strict guidelines to maximise the long-term return to the portfolio in order to maintain the real value of its investments whilst providing income, so that maximum return for beneficiaries is achieved. The Foundation’s investment policy states that it does not make investments in companies whose principal source of revenue is from tobacco or tobacco products.
The Foundation’s investment strategy is reviewed annually at the December Board meeting. The Foundation requires its investment managers to attend Board meetings every six months (December and May) when they present a detailed report on the performance of the portfolio and any issues to be addressed.
The investment managers provide monthly valuation and transaction reports with a more detailed quarterly review for the Board. The trustees have instructed the investment managers to maintain a medium risk investment strategy. At the end of the year under review the investment portfolio of The Foundation was valued at £30,410,531 (2020-21: £35,464,005) and was invested as follows:
| Cash | £76,879 | 0.3% |
|---|---|---|
| Bonds | £4,742,261 | 15.6% |
| Alternatives and Multi-Asset | £2,917,810 | 9.6% |
| Equities | £22,673,581 | 74.5% |
| Total | £30,410,531 | 100% |
The Endowment is invested with the aim of producing the best financial return within an acceptable level of risk. The trustees have adopted a risk strategy that is medium level overall and within the medium balanced definition as adopted by Evelyn Partners, The Foundation’s investment managers.
The investment objective is to balance income and capital returns. The assets should be managed to maintain the real capital value of the Endowment, whilst generating a sustainable level of investment income to support current charitable activities.
Although a total return target has been set, the long-term asset target is to maintain in real terms a portfolio with a current value of £30,410,531 after all deductions including grant-making activities. Investment performance is compared in aggregate with a benchmark of FTSE 100 and FTSE Actuaries Under 5-year Gilts. The actual rate of return for investments was -11.75% (2021: 22.8%) compared to the 1.17% (2021: 19.9%) achieved by the aggregated benchmark return.
The trustees, on the advice of their Investment Manager, have during the year considered the spread of assets held by The Foundation and repositioned the portfolio to offer some protection from the ongoing impact of Brexit, COVID-19, and the war in Ukraine.
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
RESERVES POLICY
The Foundation is sustained by an expendable endowment invested on the stock market (see Investments paragraph for further information). At the start of each financial year, it sets an operating budget based on the estimated gross income to be generated by the portfolio. Throughout the year, it regularly (typically quarterly) draws down sufficient funds from its income received to meet expected expenditure in the quarter ahead (charitable expenditure and operational costs). The investment managers will honour the funds transfer requests by firstly drawing from the income received and will make up any shortfall by divesting capital from the portfolio. This is because investment income is received in irregular amounts throughout the year (based on the timing of receipt of dividends). The investment managers will replenish the capital by reinvesting a similar amount previously disinvested when dividends are received in excess of quarterly requirement. This is so that the endowment capital value can be preserved as much as possible.
The trustees aim to maintain unrestricted reserves at a level which equates to at least three months' governance and support costs and to cover constructive obligations which are to fall due. The current Foundation’s 5-year average annual expenditure is approximately £1 million. In the unlikely event of catastrophic loss of value of The Foundation’s investments, The Foundation will use its reserves to pay for any charitable awards already committed and for operational costs due in the next three months.
At the year ended 30 September 2022, unrestricted reserves amounted to £291,229 (2021: £325,802). The trustees review the reserves policy at least annually and adjust it as required.
RISK MANAGEMENT
The trustees are responsible for monitoring the risks facing The Foundation and ensuring that adequate steps are taken to mitigate them. The Foundation has a Risk Management Framework based on a register of potential risks, ranked according to the aggregate of probability and severity of impact. This register is kept under quarterly review and is updated as required and re-issued to trustees, most recently in December 2022.
The risks facing The Foundation:
Financial Risk: The Foundation has an investment portfolio in its endowment fund which generates income for The Foundation. The material financial risks of The Foundation from the investment portfolio are as follows:
Market and price risk: The Foundation’s portfolio is invested in a variety of equities and therefore the value of the portfolio fluctuates with changes in the market; a significant percentage of The Foundation’s investments are held in FTSE 100 listed companies. The portfolio's value and performance is monitored day to day by The Foundation’s investment managers who report on changes in value and any potential drop in income through their monthly reports and six monthly presentations at Board meetings.
Credit risk: The Foundation notes two potential risks in this area; (a) the risk of its investment manager becoming insolvent and (b) the risk of entities in which The Foundation holds investments becoming insolvent. These risks are mitigated by regular detailed reporting from investment managers; in addition to The Foundation’s investments being held by a separate custodian (and close scrutiny of The Foundation’s portfolio on a monthly basis).
Liquidity risk: The Foundation has liquidity risk where it may not have sufficient cash to pay grants and other payables as they fall due. This is mitigated by:
-
regular drawdowns from the portfolio as soon as awards are made; and
-
• real-time reconciliation of The Foundation’s bank accounts.
The risks noted in this trustees’ report are mitigated by The Foundation where the diversification of the investments held is formally reviewed every six months by the trustees in meetings with The Foundation’s investment manager. There is additional ongoing monitoring on a monthly basis through review of valuation and transaction reports produced by the investment manager and quarterly reporting to the trustees by the Investment managers.
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THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
Loss of key staff: The Foundation employs three staff (one staff on a part time basis) and the loss of one of these staff may pose a short-term risk in terms of the on-going business of The Foundation. This risk is mitigated by documented policies and procedures and a detailed holiday and absence policy.
Reputational Risk: Damage to the reputation of The Foundation is a factor in many operational and financial risk areas; reputational risk may arise through internal or external mismanagement; a high proportion of 'failed' grants; fraudulent or criminal use of grants by beneficiaries; loss of sensitive data; malicious external comment on The Foundation, its trustees, staff, or performance. The Foundation mitigates these risks through due diligence, monitoring and evaluation of applications and recipients, keeping policies and processes under regular review and being mindful of relevant legislation.
Future Potential Risks: The Foundation’s investments are impacted daily by market volatility dictated by circumstances outside its control. The trustees, with the assistance of their investment managers, will continue to monitor the impact of external events on its finances and will agree any necessary adjustments with its investment managers.
The introduction by the government of a mandatory grant minimum as a percentage of the value of the endowment could erode the real value of the endowment, leading to a reduction in the funds available for grants and threatening the long-term viability of The Foundation.
These risks are mitigated by a system of internal checks and balances and a policy of full transparency about all grants awarded and expenditure incurred. The trustees review these risks on a continuous basis at every Board meeting and such review is noted in the minutes. The last risk review took place in December 2022.
The Foundation’s running costs are kept to a minimum commensurate with good governance and quality grant making. The trustees are satisfied that effective measures are in place to ensure good governance; to prevent financial or administrative fraud or malpractice; protect the good reputation of The Foundation and to ensure compliance with relevant legislation and guidance. The Foundation is not exposed to financial risk in relation to pensions. The Foundation operates from serviced offices, covering residual risk through insurance and reviews health and safety procedures on an annual basis or sooner as required.
PLANS FOR FUTURE PERIODS
The trustees have previously set a strategy for The Foundation to live broadly within its means so as not to disadvantage future beneficiaries. Good relationships continue with many grant recipients. Where grants have proved to be efficient and effective, as well as serving the public benefit and matching The Foundation’s objectives, further support is frequently provided. More enduring relationships are the source of reports that indicate the long-term positive impact of grant-awarding activities of The Foundation. However, the trustees continue to welcome applications from organisations that have not been previously funded, provided they meet the grant priorities as well as the eligibility and selection criteria set.
TRUSTEES' RESPONSIBILITIES STATEMENT
The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the applicable Charities SORP;
Page 13
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE TRUSTEES' ANNUAL REPORT YEAR ENDED 30 SEPTEMBER 2022
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
-
there is no relevant audit information of which the charitable company's auditors are unaware; and
-
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
AUDITORS
Godfrey Wilson Limited were appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.
Approved by the trustees on the 17 March 2023 and signed on their behalf by:
M G Daw
M G Daw Chair of Trustees and Trustee
Page 14
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAMES TUDOR FOUNDATION (continued) YEAR ENDED 30 SEPTEMBER 2022
OPINION
We have audited the financial statements of The James Tudor Foundation ('the charity') for the year ended 30 September 2022 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charity's affairs as at 30 September 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
-
have been prepared in accordance with the requirements of the Companies Act 2006.
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements 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 at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
OTHER INFORMATION
The 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material
Page 15
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAMES TUDOR FOUNDATION (continued)
YEAR ENDED 30 SEPTEMBER 2022
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the trustees' report has been prepared in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
Page 16
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAMES TUDOR FOUNDATION (continued) YEAR ENDED 30 SEPTEMBER 2022
RESPONSIBILITIES OF TRUSTEES
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) 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 the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
(1) We obtained an understanding of the legal and regulatory framework that the charity operates in and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.
(2) We reviewed the charity’s policies and procedures in relation to:
-
Identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non-compliance;
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Detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and
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Designing and implementing internal controls to mitigate the risk of non-compliance with laws and regulations, including fraud.
(3) We inspected the minutes of trustee meetings.
(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.
(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.
(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.
(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:
-
testing the appropriateness of journal entries;
-
assessing judgements and accounting estimates for potential bias;
-
reviewing related party transactions; and
Page 17
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE JAMES TUDOR FOUNDATION (continued) YEAR ENDED 30 SEPTEMBER 2022
testing transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
USE OF OUR REPORT
This report is made solely to the charity's 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 charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
Alison Godfrey
Alison Godfrey FCA (Senior Statutory Auditor)
For and on behalf of Godfrey Wilson Ltd Chartered accountants & statutory auditor 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
21 March 2023
Page 18
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 30 SEPTEMBER 2022
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Unrestricted | Endowment | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Income from investments | 4 | 879,511 | 82,404 | 961,915 | 866,173 |
| --------------------------------- | ---------------------------- | --------------------------------- | --------------------------------- | ||
| Total income | 879,511 | 82,404 | 961,915 | 866,173 | |
| ================================= | ============================ | ================================= | ================================= | ||
| Expenditure | |||||
| Expenditure on raising funds | 5 | – | (82,404) | (82,404) | (74,154) |
| Expenditure on charitable activities | 6,7 | (914,084) | – | (914,084) | (756,128) |
| --------------------------------- | ---------------------------- | --------------------------------- | --------------------------------- | ||
| Total expenditure | (914,084) | (82,404) | (996,488) | (830,282) | |
| ================================= | ============================ | ================================= | ================================= | ||
| Net (losses)/gains on investments | 10 | – | (5,000,265) | (5,000,265) | 5,894,456 |
| --------------------------------- | ------------------------------------------ | ------------------------------------------ | ------------------------------------------ | ||
| Net (expenditure)/income and net movement in | |||||
| funds | (34,573) | (5,000,265) | (5,034,838) | 5,930,347 | |
| ================================= | ========================================== | ========================================== | ========================================== | ||
| Reconciliation of funds | |||||
| Total funds brought forward | 325,802 | 35,210,502 | 35,536,304 | 29,605,957 | |
| --------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ||
| Total funds carried forward | 291,229 | 30,210,237 | 30,501,466 | 35,536,304 | |
| ================================= | =============================================== | =============================================== | =============================================== |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 21 to 31 form part of these financial statements.
Page 19
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL POSITION 30 SEPTEMBER 2022
| 2022 | 2021 | ||
|---|---|---|---|
| Note | £ | £ | |
| FIXED ASSETS | |||
| Tangible fixed assets | 15 | 3,648 | 2,396 |
| Investments | 16 | 30,410,531 | 35,464,005 |
| ----------------------------------------------- | ----------------------------------------------- | ||
| 30,414,179 | 35,466,401 | ||
| CURRENT ASSETS | |||
| Debtors | 17 | 65,418 | 82,616 |
| Cash at bank and in hand | 322,532 | 259,956 | |
| --------------------------------- | --------------------------------- | ||
| 387,950 | 342,572 | ||
| CREDITORS: amounts falling due within one year | 18 | (234,531) | (257,619) |
| --------------------------------- | --------------------------------- | ||
| NET CURRENT ASSETS | 153,419 | 84,953 | |
| ----------------------------------------------- | ----------------------------------------------- | ||
| TOTAL ASSETS LESS CURRENT LIABILITIES | 30,567,598 | 35,551,354 | |
| CREDITORS: amounts falling due after more than one year | 19 | (66,132) | (15,050) |
| ----------------------------------------------- | ----------------------------------------------- | ||
| NET ASSETS | 30,501,466 | 35,536,304 | |
| =============================================== | =============================================== | ||
| FUNDS OF THE CHARITY | |||
| Endowment funds | 30,210,237 | 35,210,502 | |
| Unrestricted funds | 291,229 | 325,802 | |
| ----------------------------------------------- | ----------------------------------------------- | ||
| Total charity funds | 21 | 30,501,466 | 35,536,304 |
| =============================================== | =============================================== |
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 17 March 2023, and are signed on behalf of the board by:
M G Daw
M G Daw Chair of Trustees and Trustee
The notes on pages 21 to 31 form part of these financial statements.
Page 20
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS YEAR ENDED 30 SEPTEMBER 2022
| 2022 | 2021 | ||
|---|---|---|---|
| Note | £ | £ | |
| Cash generated from operations | 24 | (963,518) | (770,339) |
| --------------------------------- | --------------------------------- | ||
| Net cash used in operating activities | (963,518) | (770,339) | |
| ================================= | ================================= | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Dividends, interest, and rents from investments | 915,542 | 879,894 | |
| Purchase of tangible assets | (3,040) | (487) | |
| Purchases of other investments | (3,210,118) | (5,181,073) | |
| Proceeds from sale of other investments | 3,236,750 | 5,052,642 | |
| ------------------------------------------ | ------------------------------------------ | ||
| Net cash from investing activities | 939,134 | 750,976 | |
| ========================================== | ========================================== | ||
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (24,384) | (19,363) | |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 423,789 | 443,152 | |
| --------------------------------- | --------------------------------- | ||
| CASH AND CASH EQUIVALENTS AT END OF YEAR | 399,405 | 423,789 | |
| ================================= | ================================= |
The notes on pages 21 to 31 form part of these financial statements.
Page 21
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022
1. GENERAL INFORMATION
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Trym Lodge, 1 Henbury Road, Westbury-On-Trym, Bristol, BS9 3HQ, England.
2. ACCOUNTING POLICIES
Basis of preparation
The James Tudor Foundation is a limited charity incorporated in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The nature of the charity's operations and principal activities are the relief of human sickness.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective on 1 January 2019 (Charity SORP 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
Going concern
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the charity to be able to continue as a going concern.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. We confirm that there are no critical judgements or estimates in these financial statements.
Fund accounting
The unrestricted fund is available for use at the discretion of the trustees in furtherance of the general objectives of The Foundation and which has not been designated for other purposes.
The endowment fund represents those assets which are to be held by The Foundation, principally investments and cash, and is expendable. Any capital gains or losses arising on the investments form part of the fund. Investment management charges and legal advice relating to this fund are charged against the fund. Apart from an amount equal to this total charge to the fund, income arising on the endowment fund can be used in accordance with the objects of the charity and is included as unrestricted income.
Page 22
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
2. ACCOUNTING POLICIES (continued)
Income recognition
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
All expenditure is accounted for on an accruals basis and is recognised as soon as there is a legal or constructive obligation committing The Foundation to the expenditure. The charitable company is not registered for value added tax and accordingly expenditure is shown gross of irrecoverable value added tax.
Expenditure on raising funds represents those costs attributable to managing the investment portfolio and raising investment income, namely investment management fees and support costs.
Expenditure on charitable activities comprises those costs attributable to the main activities of The Foundation, representing grants and support costs. Grants are included in this category when they have been unconditionally approved by the trustees and the beneficiaries have been informed, irrespective of the year covered by the grants. The value of such grants unpaid at the year-end is accrued in the balance sheet.
Unrestricted funds used for grants comprise endowment income which is allocated at the discretion of the trustees to priority needs identified in The James Tudor Foundation's own grants programme.
Governance costs are those costs incurred in connection with the administration of the charity and to comply with constitutional and statutory requirements.
All support costs represent staff, office and other costs incurred in supporting the charitable company's work. These are allocated to the governance costs on the basis of estimated staff time and to programmes on the basis of grant expenditure per programme.
Tangible assets
Tangible fixed assets are held on the balance sheet at cost less accumulated depreciation. Costs include the purchase price of the asset and the costs incurred in bringing the asset into use. Assets costing in excess of £200 are capitalised.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Equipment
- 25% straight line
Investments
Investments are recognised on acquisition at fair value, being the purchase cost plus any direct costs incurred in acquiring the asset. Subsequently, at each year end, the investments are measured at fair value, being the bid price at the year-end date, or nearest valuation point inclusive of accrued interest. Movements in the fair value of investments are recognised in the SOFA as an unrealised gain or loss included within net gains/(losses) on investments.
On disposal of investments, the realised gain or loss recognised is the difference between the value on initial recognition and the disposal proceeds after the deduction of any direct costs incurred in the disposal of the asset. Realised gains or losses are recognised in the SOFA within net gains/(losses) on investments.
Page 23
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
2. ACCOUNTING POLICIES (continued)
Financial instruments
The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.
Cash and cash equivalents
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Employee benefits
When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The company makes contributions into registered Self Invested Personal Pensions (SIPPs) held by employees of the company.
Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
3. LIMITED BY GUARANTEE
The Foundation is a company limited by guarantee and has no share capital (2021: No share capital). The liability of each member in the event of winding-up is limited to £1. No one individual has control over the charitable company (2021: No one individual has control over the charitable company).
4. INCOME FROM INVESTMENTS
| INCOME FROM INVESTMENTS | |||
|---|---|---|---|
| Unrestricted | Endowment | Total Funds | |
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Bank interest receivable | 92 | 156 | 248 |
| Dividends - Ordinary shares | 738,375 | 82,248 | 820,623 |
| Dividends - Preference shares | 140,438 | – | 140,438 |
| Interest received from fixed interest securities | 606 | – | 606 |
| --------------------------------- | ---------------------------- | --------------------------------- | |
| 879,511 | 82,404 | 961,915 | |
| ================================= | ============================ | ================================= | |
| Unrestricted | Endowment | Total Funds | |
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Bank interest receivable | – | 14 | 14 |
| Dividends - Ordinary shares | 658,425 | 74,140 | 732,565 |
| Dividends - Preference shares | 132,439 | – | 132,439 |
| Interest received from fixed interest securities | 1,155 | – | 1,155 |
| --------------------------------- | ---------------------------- | --------------------------------- | |
| 792,019 | 74,154 | 866,173 | |
| ================================= | ============================ | ================================= |
Page 24
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
5. EXPENDITURE ON RAISING FUNDS
| Endowment | Total Funds | Endowment | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Investment management fees | 82,404 | 82,404 | 74,154 | 74,154 |
| ============================ | ============================ | ============================ | ============================ |
6. EXPENDITURE ON CHARITABLE ACTIVITIES BY FUND TYPE
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | |
| £ | £ | £ | £ | |
| Palliative care | 80,881 | 80,881 | 100,714 | 100,714 |
| Medical Research | 159,846 | 159,846 | 92,331 | 92,331 |
| Health Education | 150,211 | 150,211 | 106,874 | 106,874 |
| Direct relief of sickness | 279,128 | 279,128 | 242,066 | 242,066 |
| Overseas | 71,914 | 71,914 | 58,770 | 58,770 |
| Support costs | 172,104 | 172,104 | 155,373 | 155,373 |
| --------------------------------- | --------------------------------- | --------------------------------- | --------------------------------- | |
| 914,084 | 914,084 | 756,128 | 756,128 | |
| ================================= | ================================= | ================================= | ================================= |
Page 25
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
7. EXPENDITURE ON CHARITABLE ACTIVITIES BY ACTIVITY TYPE
| Total funds | |||
|---|---|---|---|
| Grants payable | Support costs | 2022 | |
| £ | £ | £ | |
| Palliative care | 80,881 | 12,645 | 93,526 |
| Medical Research | 159,846 | 24,990 | 184,836 |
| Health Education | 150,211 | 23,485 | 173,696 |
| Direct relief of sickness | 279,128 | 43,639 | 322,767 |
| Overseas | 71,914 | 11,243 | 83,157 |
| Governance costs | – | 56,102 | 56,102 |
| --------------------------------- | --------------------------------- | --------------------------------- | |
| 741,980 | 172,104 | 914,084 | |
| ================================= | ================================= | ================================= | |
| Total funds | |||
| Grants payable | Support costs | 2021 | |
| £ | £ | £ | |
| Palliative care | 100,714 | 15,730 | 116,444 |
| Medical Research | 92,331 | 14,422 | 106,753 |
| Health Education | 106,874 | 16,694 | 123,568 |
| Direct relief of sickness | 242,066 | 37,814 | 279,880 |
| Overseas | 58,770 | 9,180 | 67,950 |
| Governance costs | – | 61,533 | 61,533 |
| --------------------------------- | --------------------------------- | --------------------------------- | |
| 600,755 | 155,373 | 756,128 | |
| ================================= | ================================= | ================================= |
During the year 98 (2021:93) grants were awarded to institutions. No grants were paid to individuals (2021: none).
A breakdown of the material grant activity (grants awarded over and including £15,000) to institutions is as below:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Bristol and Weston Hospital Charity | 54,620 | – |
| University of Bristol | 23,273 | – |
| St Peter's Hospice | 22,100 | 22,100 |
| Tommy's | 21,075 | 21,075 |
| University of Nottingham | 20,000 | 62,011 |
| Children's Hospice South West | 20,000 | – |
| University of Bath | 16,666 | – |
| Wellbeing of Women | 15,832 | – |
| The National Rheumatoid Arthritis Society | 15,000 | – |
| Hospiscare | 15,000 | – |
| Rainbow Trust Children's Charity | 15,000 | – |
| King's College Hospital Charity | 15,000 | – |
| Small grants (Small grants (< £15K) | 488,414 | 435,569 |
| Anthony Nolan | – | 15,000 |
| Penny Brohn UK | – | 15,000 |
| Islet Research Laboratory | – | 15,000 |
| Southmead Hospital Charity | – | 15,000 |
| --------------------------------- | --------------------------------- | |
| 741,980 | 600,755 | |
| ================================= | ================================= |
Page 26
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
8. ANALYSIS OF SUPPORT COSTS
| ANALYSIS OF SUPPORT COSTS | |||
|---|---|---|---|
| Staff costs | Other Costs | 2022 | |
| £ | £ | £ | |
| Palliative care | 9,073 | 3,572 | 12,645 |
| Medical Research | 17,931 | 7,059 | 24,990 |
| Health Education | 16,851 | 6,634 | 23,485 |
| Direct Relief of Sickness | 31,312 | 12,327 | 43,639 |
| Overseas | 8,068 | 3,175 | 11,243 |
| Governance Costs | 12,437 | 43,665 | 56,102 |
| ---------------------------- | ---------------------------- | --------------------------------- | |
| 95,672 | 76,432 | 172,104 | |
| ============================ | ============================ | ================================= | |
| Staff costs | Other Costs | 2021 | |
| £ | £ | £ | |
| Palliative care | 12,715 | 3,015 | 15,730 |
| Medical Research | 11,658 | 2,764 | 14,422 |
| Health Education | 13,494 | 3,200 | 16,694 |
| Direct Relief of Sickness | 30,566 | 7,248 | 37,814 |
| Overseas | 7,420 | 1,760 | 9,180 |
| Governance Costs | 18,963 | 42,570 | 61,533 |
| ---------------------------- | ---------------------------- | --------------------------------- | |
| 94,816 | 60,557 | 155,373 | |
| ============================ | ============================ | ================================= |
Support costs are allocated to programmes on the basis of grant expenditure per programme and to governance costs on the basis of estimated staff time.
9. TAXATION
The Foundation has no liability to corporation tax as it is exempt on income and gains that are applied for wholly charitable purposes.
10. NET (LOSSES)/GAINS ON INVESTMENTS
| Endowment | Total Funds | Endowment | Total Funds | ||
|---|---|---|---|---|---|
| Funds | 2022 | Funds | 2021 | ||
| £ | £ | £ | £ | ||
| Gains/(losses) on listed investments | (5,000,265) | (5,000,265) | 5,894,456 | 5,894,456 | |
| ========================================== | ========================================== | ========================================== | ========================================== | ||
| 11. | NET (EXPENDITURE)/INCOME | ||||
| Net (expenditure)/income is stated after charging/(crediting): | |||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Depreciation of tangible fixed assets | 1,788 | 993 | |||
| ======================= | ============== | ||||
| 12. | AUDITORS REMUNERATION | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Fees payable for the audit of the financial statements | 9,510 | 14,100 | |||
| ======================= | ============================ |
Page 27
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
13. STAFF COSTS
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 81,847 | 84,396 |
| Social security costs | 4,080 | 2,635 |
| Employer contributions to pension plans | 9,745 | 7,785 |
| ---------------------------- | ---------------------------- | |
| 95,672 | 94,816 | |
| ============================ | ============================ |
The average head count of employees during the year was 3 (2021: 3). The average number of full-time equivalent employees during the year is analysed as follows:
employees during the year is analysed as follows: |
||
|---|---|---|
| 2022 | 2021 | |
| No. | No. | |
| Number of administrative staff | 2.6 | 2.6 |
| ============== | ============== |
No employee received employee benefits of more than £60,000 during the year (2021: Nil).
Key Management Personnel
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £66,608 (2021: £54,872).
14. TRUSTEE'S REMUNERATION AND EXPENSES
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees (2021: No remuneration)
During the year, 2 trustees received reimbursement of £1,405 for travel and subsistence expenses and for luncheon expenses for the incoming and outgoing CEOs.
15. TANGIBLE FIXED ASSETS
| TANGIBLE FIXED ASSETS | ||
|---|---|---|
| Equipment | Total | |
| £ | £ | |
| Cost | ||
| At 1 October 2021 | 8,571 | 8,571 |
| Additions | 3,040 | 3,040 |
| Disposals | (4,360) | (4,360) |
| ----------------------- | ----------------------- | |
| At 30 September 2022 | 7,251 | 7,251 |
| ======================= | ======================= | |
| Depreciation | ||
| At 1 October 2021 | 6,175 | 6,175 |
| Charge for the year | 1,788 | 1,788 |
| Disposals | (4,360) | (4,360) |
| ----------------------- | ----------------------- | |
| At 30 September 2022 | 3,603 | 3,603 |
| ======================= | ======================= | |
| Carrying amount | ||
| At 30 September 2022 | 3,648 | 3,648 |
| ======================= | ======================= | |
| At 30 September 2021 | 2,396 | 2,396 |
| ======================= | ======================= |
The fixed assets are used for management and administration purposes.
Page 28
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
16. INVESTMENTS
Movement in market value
| Movement in market value | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Market value at 1 October | 35,300,172 | 29,277,285 |
| Acquisitions at cost | 3,270,501 | 5,181,073 |
| Disposals at opening book value | (3,236,750) | (5,052,642) |
| Net investment gains/(losses) | (5,000,265) | 5,894,456 |
| ----------------------------------------------- | ----------------------------------------------- | |
| Market value at 30 September | 30,333,658 | 35,300,172 |
| Portfolio Cash | 76,873 | 163,833 |
| ----------------------------------------------- | ----------------------------------------------- | |
| 30,410,531 | 35,464,005 | |
| =============================================== | =============================================== | |
| Cumulative unrealised gains at year end | 3,536,221 | 8,843,831 |
| Historical cost at 30 September | 26,874,310 | 26,620,174 |
The fair value of listed investments is determined by reference to the quoted price for identical assets in an active market at the balance sheet date.
Analysis of investments at fair value:
| Analysis of investments at fair value: | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Listed investments | ||
| Equities - Ordinary shares | 26,699,395 | 31,410,709 |
| Equities - Preference shares | 1,920,438 | 2,556,538 |
| Fixed interest/cash and floating rate notes | 1,713,825 | 1,332,925 |
| ----------------------------------------------- | ----------------------------------------------- | |
| 30,333,658 | 35,300,172 | |
| Portfolio cash | 76,873 | 163,833 |
| ----------------------------------------------- | ----------------------------------------------- | |
| 30,410,531 | 35,464,005 | |
| =============================================== | =============================================== |
The investments are held primarily for an investment return.
The following investments are in excess of 5% of the portfolio at 30 September 2022:
1) GBP 1,730,000 United Kingdom (Government of) 0.125% SNR BDS 31/01/2023, market value £1,713,824.50
2) 26,000 Vanguard Funds PLC S&P 500 UCITS ETF USD Dis (North America), market value £1,619,507.50
17. DEBTORS
| DEBTORS | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Prepayments and accrued income | 65,418 | 82,616 |
| ============================ | ============================ |
Page 29
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
18. CREDITORS: amounts falling due within one year
| CREDITORS: amounts falling due within one year | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Trade creditors | 1,484 | – |
| Social security and other taxes | 826 | – |
| Grant commitments | 189,752 | 218,257 |
| Other creditors | 42,469 | 39,362 |
| --------------------------------- | --------------------------------- | |
| 234,531 | 257,619 | |
| ================================= | ================================= | |
| CREDITORS: amounts falling due after more than one year | ||
| 2022 | 2021 | |
| £ | £ | |
| Grant commitments | 66,132 | 15,050 |
| ============================ | ============================ |
19. CREDITORS: amounts falling due after more than one year
20. PENSIONS AND OTHER POST RETIREMENT BENEFITS
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £9,745 (2021: £7,785).
21. ANALYSIS OF CHARITABLE FUNDS
Unrestricted funds
| Unrestricted funds | ||||||
|---|---|---|---|---|---|---|
| At | At | |||||
| 1 | October 2021 | Income | Expenditure Gains and losses | 30 Sept 2022 | ||
| £ | £ | £ | £ | £ | ||
| Unrestricted Fund | 325,802 | 879,511 | (914,084) | – | 291,229 | |
| ================================= | ================================= | ================================= | ============== | ================================= | ||
| At | ||||||
| 1 | October 2020 | Income | Expenditure Gains and losses At 30 Sept 2021 | |||
| £ | £ | £ | £ | £ | ||
| Unrestricted Fund | 289,911 | 792,019 | (756,128) | – | 325,802 | |
| ================================= | ================================= | ================================= | ============== | ================================= |
Page 30
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
21. ANALYSIS OF CHARITABLE FUNDS (continued)
Endowment funds
| Endowment funds | ||||||
|---|---|---|---|---|---|---|
| At | At | |||||
| 1 | October 2021 | Income | Expenditure | Gains and losses | 30 Sept 2022 | |
| £ | £ | £ | £ | £ | ||
| Expendable Endowment | ||||||
| Fund | 35,210,502 | 82,404 | (82,404) | (5,000,265) |
30,210,237 | |
| =============================================== | ============================ | ============================ | ========================================== | =============================================== | ||
| At | ||||||
| 1 | October 2020 | Income | Expenditure | Gains and losses At 30 Sept 2021 | ||
| £ | £ | £ | £ | £ | ||
| Expendable Endowment | ||||||
| Fund | 29,316,046 | 74,154 | (74,154) | 5,894,456 |
35,210,502 | |
| =============================================== | ============================ | ============================ | ========================================== | =============================================== |
The endowment had arisen from the transfer of membership rights from Bristol Contributory Welfare Association Limited ("BCWA") to Hospital Savings Association (now known as Simply Health).
22. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Unrestricted | Endowment | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2022 | |
| £ | £ | £ | |
| Tangible fixed assets | 3,648 | – | 3,648 |
| Investments | 178,933 | 30,231,598 | 30,410,531 |
| Current assets | 387,950 | – | 387,950 |
| Creditors less than 1 year | (213,170) | (21,361) | (234,531) |
| Creditors greater than 1 year | (66,132) | – | (66,132) |
| --------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| Net assets | 291,229 | 30,210,237 | 30,501,466 |
| ================================= | =============================================== | =============================================== | |
| Unrestricted | Endowment | Total Funds | |
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Tangible fixed assets | 2,396 | – | 2,396 |
| Investments | 235,503 | 35,228,502 | 35,464,005 |
| Current assets | 342,572 | – | 342,572 |
| Creditors less than 1 year | (239,619) | (18,000) | (257,619) |
| Creditors greater than 1 year | (15,050) | – | (15,050) |
| --------------------------------- | ----------------------------------------------- | ----------------------------------------------- | |
| Net assets | 325,802 | 35,210,502 | 35,536,304 |
| ================================= | =============================================== | =============================================== |
Page 31
THE JAMES TUDOR FOUNDATION COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 SEPTEMBER 2022
23. FINANCIAL INSTRUMENTS
| 23. | FINANCIAL INSTRUMENTS | ||
|---|---|---|---|
| The carrying amount for each category of financial instrument is as follows: | |||
| 2022 | 2021 | ||
| £ | £ | ||
| Financial assets measured at fair value through income and expenditure | |||
| Fixed asset listed investments | 30,410,531 | 35,464,005 | |
| =============================================== | =============================================== | ||
| 24. | CASH GENERATED FROM OPERATIONS | ||
| 2022 | 2021 | ||
| £ | £ | ||
| Net (expenditure)/income | (5,034,838) | 5,930,347 | |
| Adjustments for: | |||
| Depreciation of tangible fixed assets | 1,788 | 993 | |
| Net (losses)/gains on investments | 5,000,265 | (5,894,456) | |
| Dividends, interest and rents from investments | (961,915) | (866,173) | |
| Changes in: | |||
| Trade and other debtors | 3,188 | 46 | |
| Trade and other creditors | 27,994 | 58,904 | |
| ------------------------------------------ | ------------------------------------------ | ||
| (963,518) | (770,339) | ||
| ========================================== | ========================================== |
25. ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS
| At 1 Oct 2021 | Cash flows | At 30 Sep 2022 | |
|---|---|---|---|
| £ | £ | £ | |
| Cash at bank and in hand | 259,956 | 62,576 | 322,532 |
| Cash held within investments | 163,833 | (86,960) | 76,873 |
| --------------------------------- | ---------------------------- | --------------------------------- | |
| 423,789 | (24,384) | 399,405 |
|
| ================================= | ============================ | ================================= |
26. RELATED PARTIES
L A Hooper is also trustee of The Rotary Club of Bristol Trust Fund. During the year the charity paid £1,000 to The Rotary Club of Bristol Trust Fund in the form of grants payable (2021: £Nil) in support of their charitable activities. There were no amounts outstanding at the year end.
Payments to key management personnel is disclosed in Note 13.