THE SCHRODER FOUNDATION Financial Ststements 5 April 2022
THE SCHRODER FOUNDATION
Financial statements for the year ended 5 April 2022
| Contents | Page |
|---|---|
| Reference and administrative information | |
| Report of the Trustees | 2 4 |
| Independent auditor's report | 5 7 |
| Statement of financial activities | 8 |
| Balance sheet | 9 |
| Statement of cash flows | 10 |
| Notes to the financial statements | 11-18 |
THE SCHRODER FOUNDATION Reference and administrative information TMt4es.' MrJ C L Fitsaan Hthvtrd Mr6 C B ma111nt Mr P S A VAllinth(yJt Mr M May Ito P Marth 20221 Mr R Rots"ngon Is L K E Sthrryler R•9lBtered Offl¢e'. 81 Flvlffjton Street Lwdon EC2A 3AY Charlllm Dlfoctor: Lwra B¢Knan Solbcltor#: Wlihers 20 Crfd 8ll•y LotJn EC4M 7AN Audltor: UHY Kent LLP Va UHY H[Or YCrd Th8Th8 H(yJ¥• RoTrrn Swam Stb'r(LYyJr ME1048J 8•nk•r•: SthTod4r & Co Lhntt 1 London Wo11 P Lorthn EC2Y SAU CAF Bank Llmll 25 Klngg Fll A• lQng8 Hll Wè8¢ Malllry ME19 4LIQ knv••tm•nt M•n•g•f'. CaJrK)ve catal 1 Lorthn Wall Pkc LcOn EC2Y &4U Con•tltutl¢n: Th8 Schroder Fc4ndaiiM 1$ r$91eI h ErYdi4nd Wob$ 49 w unltsx*WOt$d dwrfty 11074791 and * uThern&J ty ts Tru81 Oe•J.
THE SCHRODER FOUNDATION
Report of the Trustees for the year ended 5 April 2022
The Trustees present their report and the accounts of The Schroder Foundation ('the Foundation') for the year ended 5 April 2022.
The financial statements comply with the charity's Trust Deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP (FRS 102)).
Reference and administrative information
Reference and administrative information set out on page 1 form part of this report.
Structure, governance and management
The Schroder Foundation (registered charity number 1107479) is an unincorporated grant-making trust established by Bruno L Schroder and Charmaine B Mallinckrodt under a Trust Deed dated 6 December 2004. The Deed provides for a maximum of ten Trustees.
The Foundation does not actively raise funds and seeks to continue its philanthropic work through the careful stewardship of its financial resources.
The induction process for any newly appointed Trustee comprises an initial Meeting with the Chairman of Trustees on powers and responsibilities of the Trustees, the governing document and the philanthropic approach of the Foundation. This is followed by a Meeting with the Charity Manager on the Foundation's grant-making process as well as the relevant internal policies and procedures of the Foundation.
The Trustees are sad to report that Mick May, who had been a Trustee since 2015, died on 7th March 2022 and wish to note his significant contribution to the Foundation during his tenure.
The Trustees meet four times a year when they consider broad strategy, grant-making activity, investment policy and reserves. There are agreed policy documents in use to support these decisions. The day to day administration of the Foundation, including the processing of applications prior to consideration by the board, is delegated to the Charities Director.
The Schroder Foundation manages the Charities Office which provides administration services to four charities: Charities Administered by Kaiser Wilhelm II Fund, German Christ Church London Charity, The Mallinckrodt Foundation and Schroder Charity Trust. The costs for services are recharged to the charities on a percentage basis, based on the level of activity. There are some trustees in common between the charities.
The remuneration of the Charity's key management personal is reviewed by the Trustees on an annual basis taking into account the requirements of their role. From time to time the Trustees benchmark pay levels against comparable positions in similar organisations.
The Trustees ensure that they consider the major risks to which the Foundation is exposed and they have established systems and procedures to manage these risks according to best practice. They have constructed a risk register which prioritises these risks and identifies the mitigating factors, systems and controls in relation to each risk. The Trustees also ensure that there is a comprehensive monitoring and review process in place to capture new risks as they may arise and that systems are in place to manage these.
The Trustees have established a 'Register of Interests' as a measure of good practice and also to ensure that no conflicts occur. This register is updated on an annual basis. In addition the Trustees have established a 'Fraud and Whistleblowing' policy to further protect the assets of the charity.
Objects and activities
The objects of the Foundation are to apply the income and capital for the benefit of any charitable object or purpose, in any part of the world, as the Trustees think fit. The Trustees have a policy of supporting a broad range of activities within the areas of the arts, culture & heritage; education & young people; environment & conservation; health & medicine; and social welfare & community.
The Trustees identify projects and organisations they wish to support and the Foundation does not make grants to people or organisations who apply on an unsolicited basis.
The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing their aims and objectives and in planning their future activities.
2
THE SCHRODER FOUNDATION Report of the Trustees for the year ended 5 April 2022 Proc•dures polley for yantllmakk their guarterfy Meetiry the TrLk8tees ujnsiderwhat grants tty wlll make arKI reeove rep$ from gyant reap58nt8. The T1888 trav81 wlddy In the UK and atwoal aThl u88 th8 gah8d tr>sup)rt thework the Fourth0 arhl b irlc¥m grant.makiNJ 0rgank8ati) identifd by the Tnjstees fc pcrtentlal sUp)rt we rY)rmly h¥it8d tr) fJJbmit a fornal arW1raI Wtilre th8 prryert, tts t8f1arf88 the funth I11 be accth to the 9ttte d the TnJgtees the Charity Mtrngw. Investment pollcy The dbcalk)n ol Investments Is delegated kn the kwestment marnager provhyes w¢yJess rewls loTnAtee8 a rryuiqr b8818. Th8 Trus1888 revigw current rat4ytlreby cweful St9rd.p of The s¢der FwThJallon fund8. Invesbnent man¥aer L8 ts8knJ wkh or 1Th>ea the valL ofthe kN)rtfollq VthI en8urlng th&p •re sufficient fuTr#8 b rrwt Jll ¢Gffimlm8rts ITh fl1. During Ih¢yeJr 8rxW 5 Aprll 21)22. rnt 9Bin¥on SrN8Blrnents were £692.490. Tts Chthty M8881 FuTrJ16 aUt)r and ty the Chartty Ccmm8bn and IB d88lgmJ SpecCallY for tharit8. wdl 88 •X$Ur• to èquSt5. t¢nd$ #nd e•th thè Alw lrtludaa •Y1Th I) ¥torntttfvè•88•t cL368eB 88 comnKKlllb8, prormty and abJc4ule retym. The Fund haj a tsr98t retrjm Obl0ve of Inflatl ICPll +4% anr¥Jrn ov8r4n ecwomr rtrd•. hl•vn•nts •rwJ prforrnanGtr Durfno tha Fourthlon h88 44 w&it812021'. 581 trtdllNJ Q,27421202l.. £1,313.s(K)I vAthln the Trusts8J' IhTh8 br 8UPkKfl. Flnnncw The mwkèlvabe of Inv•&tments and cash at5 1 2022 wa8£14.J&.971 1x121.. £11.297,2Lfsl. Durfng th8 y8ar Fournjalon rat•8 of t5,l4,098{2Q2l.. È484,9541 •xpandad Q,455,891, olwhlth .442,979 wa8 on tharftsble dl88. The FouThdatkJTr'6 rot a888ts at SApdl 2U22 were £1 S.439,18S1221.. È11,598.4881. Rlsk man4ynnt Th8 Trust888 havo 1))n8lder&J thg major rkg to vthlth th8 FouThJatk)n * 8XPO8ed and thay haw 86tat41sh•d y¥tems and procedures ¢0 m8rwe these rfsks. The rf3k b whlth ihe Fourxlallon b exrx)w¥ 18 th&t IUrj snleani b98es In the Invegtmant rortfolb. Gor porf0mwa laoels are set ty the TnJstee8 In rd8Uon lothe nvestrnenl tyyddbo. and the Inveelment perfornwc4 16 kepl undw rethy by the Tw8tees. In p8rUcular, the Trustees (x)nskler•Jthe rf8k5 pre8ent8d by COVD-19 ar CLdder the FwndatSw lo be well to mlOgat6 these dsk6. There16 SUnt cash heks to met Its orwalk)n, tKJvemanceaTrJ ¢ommllted grants expeNliture. The Irwestrnenl pryWrJK) has 8 10181 retum appn¥h aThl15 exFected lo rnalniwn L4lvely &mUar pattsm of dL8trfbutk)n6 throughout the year ahe&S. Thwe e48 6uffkbnt re8erve8 b met futhr lrtama wukémènt8 ¢knrp tha p8rf¢Y. Sd)rod8r Fjatn r80)9585 ts rad to hdd for maInt8n8 of ct)ra charltatla act$ In the evenl of IrKcffie 5h(xlfalls. Resertes are defined as IrK¢Th that ava114e whSth18 io te •xFthdod at thscfetlc¥) Oft Trust6es of Sehroder Foundatbn In luthranee ol ts but whth ha8 not yel nspent.¢(thmItlal C de3brOtl. The Sthrc#Jer Fournkticffi carefvlly bOJets andplans charflatAe 8xwThJltu. liaisng dosely wlth th Inve6tm&rt Mamger. B1 aThJ lrtc¥ne Infc*rnOon 18 ree tl Trustees at quarterty Meetlr£8. At unrestrkt•J resw¥es were £15,439,18512021.. £11,598,488).
THE SCHRODER FOUNDATION Report of the Trustees for the year ended 5 April 2022 Future piqn$ Durirg th8 cornirg year Ih8 TnJst888 will rewwj the for gr8nt-makin9 and tY VAII conty'nu8 to deVev t slralegy for prov1)9 gants in an effent aThJ efteth.ve way. Statement ol Trust•e8' Ye$p)n8lbllltl The Tw$t888 are r8$wnsibkg for preparin9 Ih8 Rerxxt of the TruJt8es and the finanaal statements in 8ccordanr wllh appllcab law and Uniled A)Un1kn9 Strards Iunlted d0M Generalw Accepted Am)unlhg PTrctic¢l. irKl&ir#J FFiS 102, FinarKi81 RgFQrtire $18nd8rd 8ppli>kn in tlp UK and Rgputyr gf Iro18nd. The18w ap8b18 to charilB5 in England & W818s require¥J the TFu5t8e3 to prep8r8 finanaal statents bre4¢h fhanclal year wNch give a true aThY faw vw of slate of affalrs of the F(KJndaUon and of the IrwmltvJ re8wrr£J and appliG9tn of r980urcea of Ilp FguThl8lion fgrlh8t w*)d. In prep8rno Ihgs? finHnck?18tstsment#, the Trustees are requir8d to.. 8dect sultae accL)unting and app them wnI6tsnlJy', obsgNe the melh¢)Js and pllndpl86 in Ihe Chariles SORP.. MakelgeMents ancl estim8t86 Ih8t are re860n8ble and pnjdenl stats sthetgr appucabb aCCntO SlaardS hav8 been t11ked, 8ublect to any rnaterfal depathre8 diBc105ed and explained in the financ481 Jtat8m8nts,' prepara thè fina1 statamants on t ¢tarn b3$18 unl•s$ * 1$ hAFproprfAt• to prnJuma thAI the Fndaon wlll conb'nue In SIres8. Th8 Tw6teg8 8re responsib for keeping prcper a0untg rec¥yd8 that discb8e wilh reaable 8ccur8Cy 8t any thè linanck91 posltbn ol FoUallOn and ènab thèm to ènsure that tho finandal Statonts cony with the Charrtie8 Acl 2011, th8 Trust (Accunts and Reporbl Regulatk)n8 the KYow61on6 of the FcKJndatth 8 Ilust de. They are a180 respons18 for 8afeguardlTra tha assets of iho FratiC ar henL¥ for IAkJ"ng rea80natle stsp& for the prev8nUon and detedon of fraud and other irregularitie8. Apwoval Thls report Apwov•J by ts &)ard ol TnJst8•8 on and 8kJn•J on118 t•haff by. Clalr8 FltzthAn Hmrd Trustee
THE SCHRODER FOUNDATION
Independent auditor's report to the Trustees of The Schroder Foundation
Opinion
We have audited the financial statements of The Schroder Foundation (the 'Foundation') for the year ended 5 April 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion the financial statements:
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give a true and fair view of the state of the Foundation's affairs as at 5 April 2022 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Foundation in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Foundation'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 Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
5
THE SCHRODER FOUNDATION
Independent auditor's report to the Trustees of The Schroder Foundation
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' responsibilities, the Trustees are responsible for the preparation of the financial statements which 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 Foundation'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 Foundation or to cease operations, or have no realistic alternative but to do so.
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:
How the audit was considered capable of detecting irregularities including fraud:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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we identified the laws and regulations applicable to the Foundation through discussions with management, and from our commercial knowledge and experience of the sector;
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we focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the operations of the Foundation, including the Charities Act 2011;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
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identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
6
THE SCHRODER FOUNDATION Independent auditor's report to the Trustees of The Schroder Foundation We asFe$88d the septIblllty FouTrJa1¢6 8CntS to matthal fflI88tatwnwrt, (ljtshkng an uNlerntsThJlrYJ of fvaud MKJM Lxxur, by.. makhg ewulrles of 88 to where they cCmSered there was to fraud. thelr knI8e0f aal. WJ8rted a118J•J fra,. and con4derlThJ the Inlemal c¢Jrols In place to mlthJate rf6k8 of fra¢A Thc¥Fwmpllara laws and JuLatbJn To fvILd tIwthb3h m8nw•nt trAa8 ¢)v•rrhJ• %'. rfomd anatytle81 Fmdures b Identsfy any unuwal or mlnlp8,. 8t1 joum81 èntrfè$ to Idènofy ur¥J8ual tran58rtSMs.' aBsesJ wheltsr judgernenls and 8&8umptk)ns rnade In detennlnlrg amntlry eBtlmateB Set out In lh• 8ctsJuntkng p)leknsw•m hdltaliv• of p2tanlAI tsas.. aTh InvgStlaated rk)ThBle trAhlTrJ 61gnifK8nt or ur¥Jsu81 transBckns. In r•sFm• rbk d Irrtraubrftk$orbJ rb)n.¢)ynF4I8 1h kn ond rtyubtJon8, dos19rj mduros Ic Inckj, but wffjr8 not lkn41 to.. &aredng flnaTrYal StalennI dbdcfjures ¢0 uTrJ8rfylrg supwting dOcumentad¢', mln¢Jt08 01 m88lTha8 ol tharg8d vAlh govérno." aThJ •nquirlr#J of mgnBgernent aTrJ repre8gntgtN¢8 of Tru¥teg¥ O¥ to 8¢kn418nd IlUgol and cWm& Afurth•rsthptrt ¢4 our r¢sp)nJlblllO•# for Its aud51 ofthe fina 8lernent$ 1$ on FI1 ReporUr( ClurlIS %blI at w+m.f¢g.Ukl8Udrt0r0reOpom1IuoI. Th18 d88dptlcn tm8 Part of rAr dIts). rgptyt. Lh• r•port Thb r•wJrt h mod• gowy 10th• FoUrbY•ll,8 trust•, • tyAy, In occtyd0 wtth Port 4 of th• a)•rttl (ntS and Repytsl R&Juladon8 2U)8. audll ha8 been undert&ken 60 that mlghl 6tate tl th• Fod#tI,5 tru8te88 thw rnattsrn arg rgquked lo stale b thern sn an Audtr8' r?rt for no ¢thr Pur1. To th8 fulle8t exlent temitted by¢8w, we do not actept cf 8swrne r8spK)n1tty to aThYCe other thon th8 ané hs Injatées, al a b. lor wr wort, lorthh rèpjrt. ar cyNrJrw wè hav• fom•d. UHY K•nt LLP Chwtered A(untants Slatulory Auditor8 Tham8s House Rornan Square Siltingboume Kent ME10 4P Date: 10 November 2022 UHY Kent LLP Va UHY Hackw Young elKJia lo a8 aLKlitors in twm8 of 8ec*KJn 1212 d the C¢Jnpanle8 Act 2006.
THE SCHRODER FOUNDATION
Statement of financial activities for the year ended 5 April 2022
| 2022 Total Notes Restricted Unrestricted funds £ £ £ Income and endowments from: Donations 3 5,122,380 5,122,380 Investments 4 415,418 415,418 Administration & accountancy fees receivable 66,300 66,300 Total 5,604,098 5,604,098 Expenditure on: Raising funds - investment management fees 5 12,912 12,912 Charitable activities: Administration 6 162,689 162,689 Charitable grants 7 2,274,290 2,274,290 Governance 6,000 6,000 Total 2,455,891 2,455,891 Net income/ (expenditure) before gains and losses on investments 3,148,207 3,148,207 Net gains on investments 8 692,490 692,490 Net income being movement in funds 9 3,840,697 3,840,697 Fund balances brought forward 11,598,488 11,598,488 Fund balances carried forward 15,439,185 15,439,185 |
2021 Total funds £ 440,588 44,366 484,954 12,884 144,543 1,313,500 10,200 1,481,127 (996,173) 2,081,921 1,085,748 10,512,740 11,598,488 |
|---|---|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above and therefore those stated above represent total comprehensive income.
The notes on page 11 to 18 form part of these financial statements.
8
THE SCHRODER FOUNDATION
Balance Sheet as at 5 April 2022
| Fixed assets Investments Current assets Debtors Cash at bank and in hand Creditors: amounts due within 1 year Net current assets Total assets less current liabilities Creditors: amounts due afer 1 year Net assets Funds Unrestricted funds Total funds Notes 10 11 12 13 14 |
2022 14,522,971 105,562 2,107,215 2,212,777 (761,563) 1,451,214 15,974,185 (535,000) 15,439,185 15,439,185 15,439,185 2021 £ 11,297,200 113,350 225,470 338,820 (37,532) 301,288 11,598,488 11,598,488 11,598,488 11,598,488 |
|---|---|
The financial statements were approved by the Trustees and authorised for issue on ____ and signed on their behalf by:
Claire Fitzalan Howard
Trustee
The notes on page 11 to 18 form part of these financial statements.
9
THE SCHRODER FOUNDATION
Statement of Cash Flows for the year ended 5 April 2022
| Cash flows from operating activities: Net cash provided by/ (used in) operating activities Cash flows from investing activities: Dividends and interest from investments Proceeds from sale of investments Purchase of investments Change in investment cash Net cash (used in)/ provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporing period Notes (a) (b) (b) (a) Reconciliation of net income to net cash flows from operating activities Net income for the reporting period Adjustments for: Gains on investments Dividends and interest from investments Decrease in debtors Increase / (decrease) in creditors Net cash provided by/ (used in) operating activities (b) Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents (c) Analysis of changes in net debt: Cash and cash equivalents 6 April 2021 Cash flows £ £ 225,470 1,881,745 |
2022 £ 3,999,608 254,515 2,801,175 (5,181,943) 8,390 (2,117,862) 1,881,745 225,470 2,107,215 3,840,697 (692,490) (415,418) 7,788 1,259,031 3,999,608 2,107,215 2,107,215 Non-cash movement £ |
2021 £ (1,764,811) 248,043 770,797 (16,096) (4,701) 998,043 (766,768) 992,238 225,470 1,085,748 (2,081,921) (440,588) 188 (328,238) (1,764,811) 225,470 225,470 5 April 2022 £ 2,107,215 |
|---|---|---|
The notes on page 11 to 18 form part of these financial statements.
10
THE SCHRODER FOUNDATION
Notes to the financial statements for the year ended 5 April 2022
1. General information
- The Schroder Foundation is an unincorporated charity registered in England and Wales (charity number 1107479), governed by its Trust Deed. The registered office is 81 Rivington Street, London, EC2A 3AY. The. annual statements are prepared in sterling, being the functional currency of the entity, and have been rounded to the nearest pound.
2. Principal accounting policies
a) Basis of accounting and assessment of going concern
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of fixed asset investments, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements are prepared in sterling, being the functional currency of the entity, and have been rounded to the nearest pound.
The Foundation constitutes a public benefit entity as defined by FRS 102.
The financial statements have been prepared to give a 'true and fair' view and 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 Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005, which has since been withdrawn.
The preparation of the financial statements requires the Trustees to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on the Trustees' best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. The Trustees' consider that there are no key sources of estimation uncertainty.
b) Going concern
The Trustees reviewed the Foundation's investments and operations in response to the impact of the Covid19 pandemic. The budget for charitable activities in 2022-23 is, at this time, unaffected and there is sufficient cash available to meet pre-existing grant commitments and operations costs. The Foundation holds reserves to supplement income requirements to meet its charitable objectives as required. The Trustees consider that there are no material uncertainties over the Foundation's ability to continue as a going concern for the foreseeable future, being a period of at least 12 months from the date of signing the financial statements.
- c) Income
Income is stated on a receivable basis. Income received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. Income receivable from Gift Aid claims is recognised when the claim had been submitted.
Investment income is credited gross to the Statement of Financial Activities on the date it becomes payable.
Administration fees receivable are support costs incurred by The Schroder Foundation for the day to day administrating and grant processing of other Charitable Trusts that are recharged. The recharges are calculated on a percentage basis, based on the time spent administrating other charities.
d) Expenditure
Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.
Expenditure on raising funds includes investment manager fees which are calculated quarterly by Schroder & Co ltd (the investment manager) and included in investment manager fees on a payable basis.
Expenditure on charitable activities includes charitable grants, administration costs and governance costs.
Charitable grants are charged to the Statement of Financial Activities when approved by the Trustees and any conditions placed on the recipient have been met. Other expenditure is provided on an accruals basis.
11
THE SCHRODER FOUNDATION
Notes to the financial statements for the year ended 5 April 2022
2. Principal accounting policies continued
Administration costs consist of the costs associated with the administration and grant processing for other charitable trusts and the day-to-day administration of the Foundation's affairs as carried out by staff employed by The Schroder Foundation.
Governance costs charged in these financial statements include auditor's remuneration and other compliance costs, such as legal costs, imposed by the requirements of charities legislation.
e) Gains/losses on investment assets
All gains and losses are taken to the Statement of Financial Activities as they arise. Unrealised gains and losses on investment assets represent the difference between their fair value at the end of the year and their fair value at the beginning of the year, or transaction value if acquired during the year. Realised gains and losses on disposal of investment assets represent the difference between the sale proceeds and the fair value at the beginning of the year, or transaction value if acquired during the year.
f[)] Taxation
The Foundation benefits from the tax exemptions available to UK registered charities and accordingly is not liable for income tax or capital gains tax on income and gains derived from its investments.
g) Financial instruments
The Foundation 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.
h) Investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using their closing quoted market price. Realised and unrealised gains and losses are shown in the statement of financial activities together as net gains on revaluation and disposals of investment assets. Investments held in the cash liquidity funds are classified within current assets.
The Foundation does not acquire put options, derivatives or other complex financial instruments.
The main form of financial risk faced by the Foundation is that of volatility in the investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors or sub-sectors.
i) Debtors
Debtors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses.
j[)] Cash at bank and in hand
Cash and cash equivalents consist of cash on hand and balances with banks, and investments in money market instruments which are readily convertible, being those with original maturities of three months or less.
k) Creditors
Creditors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.
I) Unrestricted funds
Unrestricted funds are donations, investment income and other incoming resources receivable or generated for the objects of the Foundation. The general fund therefore comprises those monies which may be used towards meeting the charitable objectives of the Foundation at the discretion of the Trustees.
m) Restricted funds
Any restricted funds would be used for the specific purposes laid down by the donor. Expenditure which meets their criteria is charged to the fund together with a fair allocation of management and support costs.
n) Pensions
The Foundation operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Foundation to the fund in respect of the year.
12
THE SCHRODER FOUNDATION
Notes to the financial statements for the year ended 5 April 2022
2. Principal accounting policies continued
o) Operating leases
Rentals on operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term. An operating lease is a lease in which the lessee has not taken on substantially all the risks and rewards of ownership of the leased asset. The benefits of incentives to sign property leases, including rent-free periods, are spread on a straight-line basis over the lease term.
3. Income from donations
| Donations Restricted Unrestricted £ £ 5,122,380 5,122,380 2022 £ 5,122,380 5,122,380 |
2021 £ |
|---|---|
4. Income from investments
| Income from investments | ||||
|---|---|---|---|---|
| Restricted | Unrestricted | 2022 | 2021 | |
| £ | £ | £ | £ | |
| Bank interest | 215 | 215 | 15 | |
| Dividends | 415,203 | 415,203 | 440,573 | |
| 415,418 | 415,418 | 440,588 |
No restricted investment income was received in the year (2021: £Nil).
5.
| Expenditure on raising funds Investment management fees |
2022 £ 12,912 12,912 2021 £ 12,884 12,884 |
|---|---|
All costs incurred in both 2022 and 2021 were in respect of unrestricted funds.
6.
| Expenditure on administration costs Salary and pension costs: Wages and salaries Social security costs Pension costs Consultancy costs Other staff related costs Office running costs Subscriptions Grants management system Training and travel |
2022 £ 81,009 4,878 7,357 15,729 6,535 34,149 3,780 9,030 222 162,689 |
2021 £ 86,162 5,398 9,317 7,697 721 33,033 2,215 |
|---|---|---|
| 144,543 |
13
THE SCHRODER FOUNDATION
Notes to the financial statements for the year ended 5 April 2022
6. Expenditure on administration costs continued
All costs incurred in both 2022 and 2021 were in respect of unrestricted funds.
The total employee benefits, including pension contributions and employer's national insurance of the key management personnel were £65,217 (2021: £65,067). One member of staff employed during the year is considered to be key management personnel (2021: 1 ). The average number of employees employed by the Foundation in the year was 2 (2021: 2)
No employees received employee benefits (excluding pension contributions) of more than £60,000 (2021: none).
7. Expenditure on charitable grants
| a) Charitable grants made during the year: Amref Health Africa Ashden Climate Solutions Brent Adolescent Centre British German Association Suttle UK CAMFED International Cancer Research UK CHEM Trust Children and Families Across Borders (CFAB) Disasters Emergency Committee Family Links (Educational Programmes) Fauna & Flora International Global Canopy Green Alliance Trust, The Helpforce Community Trust • Institute for Fiscal Studies, The Islay & Jura Sub-Committee (see note 7b) KAA lntrepidus Trust Medecins Sans Frontieres (UK) Moorfields Eye Charity Museum of London OCD Action One Small Thing Professional Teaching Institute, The (formerly The Prince's Teaching Institute) Royal Botanical Gardens, Kew Royal Horticultural Society, The Royal National Theatre, The School-Home Support Service (UK) Scouts Association, The Seenaryo St Giles Trust Tutor the Nation University of Exeter 2022 Total 2021 Total |
2022 £ 25,000 40,000 20,000 40,000 40,000 40,000 100,000 90,000 75,000 5,990 30,000 35,000 30,000 35,000 30,000 90,000 33,300 15,000 75,000 500,000 500,000 15,000 50,000 40,000 35,000 40,000 30,000 50,000 25,000 30,000 40,000 20,000 50,000 2,274,290 1,313,500 |
|---|---|
14
THE SCHRODER FOUNDATION
Notes to the financial statements for the year ended 5 April 2022
7. Charitable grants (continued)
| 7. Charitable grants (continued) |
7. Charitable grants (continued) |
|||
|---|---|---|---|---|
| b) Charitable grants approved by the Islay & Jura Sub-Committee: | 2022 | |||
| £ | ||||
| Argyll Piping Trust | 7,000 | |||
| Cantilena Festival On Islay | 2,000 | |||
| Finlaggan Trust | 2022 | 4,200 | ||
| Glasgow Islay Gaelic Choir | 750 | |||
| Islay & Jura Community Enterprise Ltd | 6,000 | |||
| Islay & Jura Community Piping and Drumming Club | 1,500 | |||
| Islay & Jura Highland Dancers | 1,500 | |||
| Islay Pipe Band Association | 4,000 | |||
| Islay Quilters | 1,000 | |||
| Kilmeny Community Playing Field | 3,350 | |||
| Museum of Islay Life | 500 | |||
| North and West Islay Church of Scotland | 1,500 | |||
| Total | 33,300 | |||
| 2021 Total | 40,500 | |||
| All charitable donations paid in both 2022 and 2021 were unrestricted. | ||||
| 8. | Net investment gains | 2022 | 2021 | |
| £ | £ | |||
| Realised | 46,995 | 95,561 | ||
| Unrealised | 645,495 | 1.986,360 | ||
| 692,490 | 2,081,921 | |||
| 9. | Net movement in funds | |||
| Net movement in funds is stated after charging: | ||||
| 2022 | 2021 | |||
| £ | £ | |||
| Trustees' emoluments | ||||
| Auditor's remuneration | ||||
| - as auditor | 6,000 | 10,200 |
15
THE SCHRODER FOUNDATION
Notes to the financial statements for the year ended 5 April 2022
| 10. Investments 11. 12. Market value brought forward Additions at cost Disposal proceeds Net gains on disposals and revaluations Portflio cash held by the investment manager Market value carried forward Historic cost carried forward Investments comprise the following: Equities (listed) Private equity Debtors Dividends and interest receivable Other administration & accountancy fees receivable Other debtors Creditors: amounts falling due within one year Grants payable Accruals: Auditor's fees for audit and accountancy Accountancy fees Investment management fee payable Reconciliation of Grant creditors: Balance of grant creditors at 6 April 2021 Grant commitments made in the year Grants paid during the year Balance of grant creditors at 5 April 2022 |
2022 £ 11,282,685 5,342,846 (2,801,175) 692,490 14,516,846 6,125 14,522,971 12,809,948 2022 £ 14,369,622 147,224 14,516,846 2022 £ 64,729 35,771 5,062 105,562 2022 750,990 6,000 1,500 3,073 761,563 2022 £ 23,000 2,274,290 (1,011,300) 1,285,990 |
2021 £ 9,762,920 208,641 (770,797) 2,081,921 11,282,685 14,515 11,297,200 10,063,586 2021 £ 11,120,174 162,511 11,282,685 2021 £ 62,271 46,017 5,062 113,350 2021 £ 23,000 10,200 1,000 3,332 37,532 2021 £ 355,000 1,313,500 (1,645,500) 23,000 |
|---|---|---|
16
THE SCHRODER FOUNDATION Notes to the financial statements for the year ended 5 April 2022 Credorn: •n4)unt• due afterone year 2022 2021 Grnnts pwAb 535,000 Analys of not aba•t8 b•tw••n ful8- 2022 R•8tFl¢i•d Unmtrlci fund• Total Investments clhèrnètAts 14522,971 916214 14,551971 916214 1S,439,185 15A39,185 I fLnd# At 5Aprfl 2022 w• ur¢strktod furKls •nd 1 tron$gct In tho 5Br ond•J SApril 22 were wllhk) unr86ttsknJ I6. of [1 aBBets tdvmn fvnth- 2021 Re8trlthJ Unrestrfd•J luThJs Total luThJ8 Inv•stmant# Cther not aB8otB 11.297,3)) 301,288 11.2972 X)1,288 11.598,488 11.598.488 1& rx4nt Con¥nlkn•nl• The Foundatlon approv&J fulure gr8nt8 wxh a vabe of £1,285.99)13)21.' £780,(0) Wtye the year end. Grants p8y8bl8 ar• Kludod Sn th• stst8m8nt dflnart481 actfvll88 wh8n approv•l and wh8n thè Int8ndJ hos ellher recthed the funth or been Infornwd ¢Y dallIon to mBke th8 granl hB8 88lsll6d all rdgtad corit[c. 16. Conxnltm•nt• und•r op•r•tk8 l••w• S Aprti 3)22 tha charly had lutyr• nn1Thm lea paYnts dueon laldIableOp0rntIry leas88 88 ft4kM'. 21 NL latw I 1 y8ar 25,200 25,2CQ 17. Tru•t•• rthnun•rlon Th• Trust•&s conshJ8r th•rnadv•$ as ct1nprtThj th• k•y Marm8 par8101 tho FoUThjatn. In ¢harg9 cl dk&*SrF aThJcontrollir#J the ntion. Crh9 th8 year, th8 Tru5t888 e[V8d m [rrAC or beneflts in khJ12021.. £Nill. Durfng the year, Th) Tnjstee receN8d reAMement cl expew812)21'. Th) TNstèè rèlrrburstrntnt Ll èxpen5). 17
THE SCHRODER FOUNDATION Notes to the financial statements for the year ended 5 April 2022 Rdated party trnnMctl<x)$ M$ L K E SctcKJeraThJ Mrs C L Fitzdan are ficffixe¢tiye directors ofSLfroder$ plc, uttinwte porefit of Caz8rK)ve CapitAI. whith 86 inve&trrnt rn8na98r fortfr Charity, 8[ Sthrojer a Co Ltd. whith aL a bankets foi charity. Three olthe Iruslees, Mrs C 8 Mallinckrodl. Mrs C L Filzakn Fkn¥ard and L K E SLfrcYer. aTr also tru$te88 of th8 seP0d8r Charly Trust. Qxjring th8 y8ar The Sthr(xler FrAJndaticm rnad8 a tharg8 tj th8 charity of £&8,21712021.. E28,1421 in reswa d &rninistratKJn lj a¢)xJunt&w seMCtS Fthi¢JwJ durf th8 y88r. P S A Mdlinckrojt L K E Sdycdèr Brè d The Charitie8 Admlnijter by Ihè Kai8tr Wilhdm 11 Fund. the year The Sth¢)Jer Foundati( mde a charge lo the tharity of £13,7 I21. È7,0861in ra8p8Ct of minI[ati£ 8nd 80)Juntarry $8TricaJ during ts y88r. Tlrni cl It tru¥tsè¥, Mr¥ C B lIkMdt. Mr¥ C L Fi12AL*n Fknvgrd And Mr P S A Malind(rodt AM truste&s cl The mlin¢kr0dt Fourmyation. During tho year The Schro¢l8r FouThja0n rnade a charge 10 tho dwnty of £9,13312021.. £4.5981 n reJp&a of 8dminiJtr8ttin and &0Untan¢Y 3ervus Provi thrn9 Mr P S A m11n¢krOdt w a Trustee d Itt• Th8 8dUsh Gmn A880clalon luThll 12 JU 211 rIlYa 11
*8r. Fojndalion rrédè a grant 01£40,1))J to Iha charfty. 18