Company Registration Number: 05249160 England and Wales
The Hargrave Foundation
Registered Charity Number: 1106524
Annual Report and Financial Statements
31 March 2024
The Hargrave Foundation
Annual Report and Financial Statements for the Year Ended 31 March 2024
| Trustees | S T Hargrave |
|---|---|
| D R S Moseley | |
| M A Parkin | |
| Charity number | 1106524 |
| Company number | 05249160 |
| Principal address | Flat 2, 47 Lambs Conduit Street |
| London | |
| WC1N 3NG | |
| Registered office | Alexandra House |
| St. Johns Street | |
| Salisbury | |
| Wiltshire | |
| SP1 2SB | |
| Independent Examiner | TT Midlands Services Limited t/a TT Accountants |
| First Floor, 2 Hampton Court Road | |
| Birmingham | |
| B17 9AE | |
| Solicitors | Wilsons |
| Alexandra House | |
| St. Johns Street | |
| Salisbury | |
| Wiltshire | |
| SP1 2SB |
The Hargrave Foundation
Annual Report and Financial Statements for the Year Ended 31 March 2024
| Table of contents | ||
|---|---|---|
| Page | ||
| Trustees' Annual Report | 1 | |
| Statement of Trustees' Responsibilities | 3 | |
| Independent Accountant's Report | 4 | |
| Funds Statements: | ||
| Statement of Financial Activities | 5 | |
| Income and Expenditure Account | 6 | |
| Balance Sheet | 7 | |
| Statement of Cash Flows | 8 | |
| Notes to the Financial Statements | 9 |
The Hargrave Foundation
Trustees Annual Report for the year ended 31 March 2024
The Trustees present their report and financial statements for the year ended 31 March 2024.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Foundation's governing document, the Companies Act 2006 and “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 1 January 2019)”.
Structure, governance and management
The Foundation is a charitable company limited by guarantee, incorporated on 4 October 2004 and registered as a charity on 1 November 2004. It was established under a Memorandum of Association which specifies the objects and powers of the charitable company, and is governed under its Articles of Association. The Charity is entitled to exemption from preparing a strategic report.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were S T Hargrave, D R S Moseley and M A Parkin. None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The major risks to which the charity is exposed have been reviewed and in the opinion of the Trustees procedures are in place to manage those risks, particularly as regards to the investment of the charity’s assets.
Objectives and activities
The objective of the Foundation is to make charitable donations as the Trustees may in their sole discretion see fit. We do not carry out hands-on charitable activities ourselves, but offer funding to those who do, normally other charities registered in the UK.
The primary aim of the Trustees in the period under review was therefore to generate income from the endowment funds and to make donations out of the income. Our investment policy is to generate income and to preserve and if possible increase the value of our endowment. Around 90 per cent of our funds are invested in collective investments, and the remainder in a major UK property REIT. Our modest cash balance is held with NatWest.
The Trustees have paid due regard to guidance issued by the Charity Commission including the guidance on Public Benefit, in deciding what activities to support.
Achievements and performance
The Trustees consider that in the year under review the Foundation has succeeded in its aim of generating income to fund charitable and philanthropic donations, while broadly maintaining its investment base. During the year our investments generated income of £157,529 (2023: £152,565) and we made donations totalling £102,500 (2023: £131,796). Our largest single donation was £30,000 to support prostate cancer research at the University of East Anglia. We also provided funding to the Longford Foundation (prisoner education) and to St George’s Hub in Wolverhampton, among other beneficiaries. The Foundation has made charitable donations of approximately £1.98 million since inception.
Applying for funding from the Foundation
The Foundation receives a large volume of mail and e-mail from individuals and corporate bodies seeking funding. The Trustees do not normally consider unsolicited requests. In particular, we do not normally consider applications from adult or gap-year students. In order to preserve resources, we do not generally reply to unsolicited correspondence. The Foundation does not employ any staff, nor do the Trustees claim expenses.
Page 1
Independent Examiner
The directors decided to dispense with the requirement for a statutory audit of the financial statements for the year ended 31 March 2024 since when the financial statements have been subject to an independent examination.
Method of preparation of accounts - Small company provisions
This report has been prepared in accordance with the special provisons relating to small companies within part 15 of the Companies Act 2006.
Page 2
The Hargrave Foundation
Statement of Trustees' Responsibilities for the Year Ended 31 March 2024
The Trustees (who are also the directors of the Hargrave Foundation for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP 2019 (FRS 102);
-
make judgements and estimates that are reasonable and prudent;
-
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 adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the Board on 25 June 2024 and signed on its behalf by frp by Stephen Hargrave — Trustee
Page 3
The Hargrave Foundation
Report of the Independent Examiner to the Trustees of the charitable company on the accounts for the year ended 31 March 2024
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2024 set out on pages 5 to 14.
Responsibilities and basis of report
As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011 ('the 201 I Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
The accounts of this charitable company are not required to be audited under Part 16 of the Companies Act 2006;
and that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Signed:
Tony Tse
for and on behalf of TT Midlands Services Limited T/A TT Accountants
Chartered Certified Accountant
First Floor, 2 Hampton Court Road Harborne Birmingham B17 9AE
This report was signed on 25 June 2024
Page 4
The Hargrave Foundation
Statement of Financial Activities for the year ended 31 March 2024
| Notes Income from: Donations and legacies 3 Investments 4 Total income Expenditure on: Charitable activities 5 Net gains/(losses) on investments 11 Net incoming/(outgoing) resources before transfers Gross transfers between funds Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Current year Unrestricted Funds 2024 £ - 157,529 157,529 107,166 - 50,364 - 50,364 412,927 463,291 |
Current year Endowment Funds 2024 £ 13 - 13 - 256,780 256,793 - 256,793 4,289,224 4,546,017 |
Current year Total Funds 2024 £ 13 157,529 157,543 107,166 256,780 307,157 - 307,157 4,702,156 5,009,313 |
Prior year Total Funds 2023 £ 5 152,565 |
|---|---|---|---|---|
| 152,570 | ||||
| 134,887 (109,980) |
||||
| (92,297) | ||||
| - | ||||
| (92,297) 4,794,453 |
||||
| 4,702,156 |
The statement of financial activities includes all gains and losses recognised in the year.
Page 5
The Hargrave Foundation
Summary Income and Expenditure Account for the Year Ended 31 March 2024
| All income funds 2024 £ 157,543 107,166 50,377 Net income for the year Gross income Total expenditure from income funds |
2023 £ 152,570 134,887 |
|---|---|
| 17,683 |
Page 6
The Hargrave Foundation
Balance Sheet as at 31 March 2024
| Notes | 2024 | 2023 | |
|---|---|---|---|
| £ | £ | ||
| Fixed assets | |||
| Investments | 12 | 4,907,930 | 4,651,150 |
| Current assets | |||
| Cash at bank and in hand | 101,383 | 51,006 | |
| Total current assets | 101,383 | 51,006 | |
| Net current assets | 101,383 | 51,006 | |
| The total net assets of the charity | 5,009,313 | 4,702,156 |
The total net assets of the charity are funded by the funds of the charity, as follows:
| Capital funds | ||
|---|---|---|
| Endowment funds - general | 4,546,022 | 4,289,229 |
| Income Funds | ||
| Unrestricted funds | 463,291 | 412,927 |
| Total charity funds | 5,009,313 | 4,702,156 |
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The charity is subject to Independent Examination under charity legislation, and the report of the Independent Examiner is on page 4.
The financial statements have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006, applicable to companies subject to the small companies regime.
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Pri by
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Stephen Hargrave Trustee
Approved by the board of trustees on 25 June 2024
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The Hargrave Foundation
Statement of Cash Flows for the Year Ended 31 March 2024
| Notes 16 Cash and cash equivalents at beginning of year Net cash used in financing activities Investing activities Interest and dividends received Cash flows from operating activities Cash and cash equivalents at end of year Net decrease in cash and cash equivalents Cash generated from/(absorbed by) operations Net cash generated from investing activities |
2024 £ £ (107,152) 157,529 157,529 - 50,377 51,006 101,383 |
2023 £ £ (136,322) 152,565 152,565 - 16,243 34,763 51,006 |
2023 £ £ (136,322) 152,565 152,565 - 16,243 34,763 51,006 |
|---|---|---|---|
| 16,243 34,763 |
|||
| 51,006 |
Page 8
The Hargrave Foundation
Notes to the Accounts for the year ended 31 March 2024
1 Accounting policies
Company information
The Hargrave Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is Alexandra House, St. Johns Street, Salisbury, Wiltshire, SP1 2SB.
1.1 Accounting convention
The financial statements have been prepared in accordance with the The Foundation's governing document, the Companies Act 2006 and "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 1 January 2019)". The Foundation is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling which is the functional currency of the The Foundation. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that The Foundation has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by that the capital must be maintained by The Foundation.
1.4 Incoming resources
Income is recognised when the The Foundation is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
a) Voluntary income is received by way of grants, donations and gifts and is included in full in Statement of Financial Activities when receivable.
b) Donations receivable for the general purposes of the Charity are credited to Unrestricted Funds. Donations for purposes restricted by the wishes of the donor are taken to Restricted Funds where these wishes are legally binding on The Hargrave Foundation trustees, except that any amounts required to be retained as capital in accordance with the donors wishes are accounted for instead as Endowments - permanent or expendable according to the nature of the restriction.
c) Investment income is included when receivable.
Income generated from Endowment funds in the form of bank interest and dividends received was classed as Unrestricted Funds.
Page 9
1.5 Resources expended
Expenditure is recognised on an accrual basis as a liability in incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:
a) Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It included both costs that can be allocated directly to such actiivites and those costs of an indirect nature necessary to support them.
b) Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the Independent examiner fee/audit fees and costs linked to the strategic management of the charity.
1.6 Fixed assets investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expendlture) for the year. Transaction costs are expensed as incurred.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 Financial instruments
The company has elected to apply the provisions of Section 11 "Basic Financial instruments" to all its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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Derecognition of financial liabilities
Financial liabilities are derecognised when The Foundation's contractual obligations expire or are discharged or cancelled.
1.9 Irrecoverable VAT
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
2 Critical accounting estimates and judgements
In the application of the The Foundation's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Interest on cash deposits Donations and gifts, including Endowments Investments Dividends |
Unrestricted Funds 2024 £ 13 Unrestricted Funds 2024 £ 156,386 1,143 157,529 |
Unrestricted Funds 2023 £ 5 |
|---|---|---|
| Unrestricted Funds 2023 £ 152,226 339 152,565 |
4 Investments
Page 11
5 Charitable activities
| Grant funding of activities (see note 6) Share of governance costs (see note 7) Unrestricted funds Analysis by fund Restricted funds |
Research and welfare 2024 £ 102,500 4,666 107,166 107,166 - 107,166 |
Research and welfare 2023 £ 131,796 3,091 |
|---|---|---|
| 134,887 | ||
| 134,887 - |
||
| 134,887 |
6 Grants payable
| Grants to institutions: University of East Anglia Other institutions The Longford Trust St George's Hub |
Research and welfare 2024 £ 30,000 20,000 20,000 32,500 102,500 |
Research and welfare 2023 £ 30,000 20,000 20,000 61,796 |
|---|---|---|
| 131,796 |
The Charity undertook no direct charitable activities but awarded grant to 8 institutions in furtherance of its charitable aims.
7 Governance costs
| Non audit fees Legal and professional fees Bank and broker charges |
2024 £ 1,440 367 2,859 4,666 |
2023 £ - 354 2,737 |
|---|---|---|
| 3,091 |
8 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the Foundation during the year.
Page 12
9 Employees
| 2024 | 2023 | |||
|---|---|---|---|---|
| Number | Number | |||
| Total | - | - |
10 Taxation
The company is a registered charity and no provision is considered necessary for taxation.
11 Net gains/(losses) on investments
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Gains/(losses) on listed investments | 256,780 | (109,980) |
12 Fixed assets investments
| Valuation changes At 31 March 2024 Carrying amount At 31 March 2024 At 31 March 2023 Additions Cost or valuation At 1 April 2023 |
Listed investments £ 4,651,150 - 256,780 |
|---|---|
| 4,907,930 | |
| 4,907,930 | |
| 4,651,150 |
Fixed asset investments revalued
The trustees consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.
13 Financial instruments
| 2024 | 2023 | |
|---|---|---|
| Carrying amount of financial assets | £ | £ |
| Instruments measured at fair value through profit or loss | 4,907,930 | 4,651,150 |
Page 13
The Hargrave Foundation
14 Analysis of net assets between funds
| Investments Current assets/(liabilities) Fund balances at 31 March 2024 are represented by: |
Unrestricted fund 2024 £ 361,908 101,383 463,291 |
Endowment funds 2024 £ 4,546,022 - 4,546,022 |
Total funds 2024 £ 4,907,930 101,383 5,009,313 |
Unrestricted fund 2023 £ 361,921 51,006 412,927 |
Endowment funds 2023 £ 4,289,229 - 4,289,229 |
Total funds 2023 £ 4,651,150 51,006 |
|---|---|---|---|---|---|---|
| 4,702,156 |
15 Analysis of changes in net funds
The Foundation had no debt during the year.
16 Cash generated from operations
| Adjustments for: Fair value gains and losses on investments Surplus/(deficit) for the year Investment income recognised in statement of financial activities Movements in working capital: Decrease in creditors Cash generated from/(absorbed by) operations |
2024 £ 307,157 (157,529) (256,780) - (107,152) |
2023 £ (92,297) (152,565) 109,980 (1,440) |
|---|---|---|
| (136,322) |
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