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 ma111n￿￿￿t 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 Lot*Jn EC4M 7AN Audltor: UHY Kent LLP Va UHY H￿[Or YC￿r￿d 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 ca￿tal 1 Lorthn Wall Pkc* Lc￿￿On EC2Y &4U Con•tltutl¢n: Th8 Schroder Fc4ndaiiM 1$ r$91*e￿I h ErYdi4nd Wob$ 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 tt*y wlll make arKI reeove rep￿$ from gyant reap58nt8. The T￿￿1888 trav81 wlddy In the UK and atwoal aThl u88 th8 gah8d tr>sup￿)rt thework the Fourth￿0￿ arhl b irlc¥m grant.makiNJ 0rgank8ati)￿ identif*d by the Tnjstees fc* pcrtentlal sUp￿)rt we rY)rm*ly h¥it8d tr) fJJbmit a fornal arW1raI￿ Wtil￿re th8 prryert, tts t￿8f￿1arf88 the funth I￿11 be accth to the 9￿￿tt￿te 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 *rat4ytl*reby cweful St￿9rd￿￿.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 fl￿1. During Ih¢yeJr 8rxW 5 Aprll 21)22. rnt 9Bin¥on SrN8Blrnents were £692.490. Tts Chthty M￿￿￿8881 FuTrJ16 aUt￿)r￿￿ and ty the Chartty Ccmm*8bn and IB d88lgmJ Spec￿CallY for tharit￿8. wdl 88 •X￿$Ur• to èquSt*5. t¢nd$ #nd e•th thè Alw lrtludaa •Y￿1Th I) ¥torntttfvè•88•t cL368eB 88 comnKKlllb8, prormty and abJc4ule retym. The Fund haj a tsr98t retrjm Obl￿0ve of Inflatl ICPll +4% anr¥Jrn ov8r4n ecwomr rtrd•. hl•v*n•nts •rwJ prforrnanGtr Durfno tha Fourthlon h88 44 w&it812021'. 581 trtdllNJ Q,2742￿1202l.. £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 ￿d￿l￿88. The FouThdatkJTr'6 rot a888ts at SApdl 2U22 were £1 S.439,18S12￿21.. È11,598.4881. Rlsk man4yn*nt Th8 Trust888 havo 1))n8lder&J thg major r*kg 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 I￿Ur￿￿j s￿n￿leani b98es In the Invegtmant rortfolb. Gor￿￿ porf0mw￿a laoels are set ty the TnJstee8 In rd8Uon lothe nvestrnenl tyyddbo. and the Inveelment perfornwc4 16 kepl undw re￿thy by the Tw8tees. In p8rUcular, the Trustees (x)nskler•Jthe rf8k5 pre8ent8d by COVD-19 ar￿ CL￿dder the FwndatSw lo be well to mlOgat6 these dsk6. There16 SU￿￿nt 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 F￿￿jat￿n r80)9￿585 ts r￿ad to hdd for maInt8n8￿ of ct)ra charltatla act￿￿$ In the evenl of IrKcffie 5h(xlfalls. Resertes are defined as IrK¢Th that ava11*4e whSth18 io te •xFthdod at thscfetlc¥) Oft￿ Trust6es of ￿ Sehroder Foundatbn In luthranee ol ts but whth ha8 not yel ￿nspent.¢(thmItlal C￿ de3brOt￿l. The Sthrc#Jer Fournkticffi carefvlly bOJets andplans charflatAe 8xwThJltu￿. liaisng dosely wlth th Inve6tm&rt Mamger. B￿1￿ aThJ lrtc¥ne Infc*rnOon 18 re￿￿e￿ 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 t￿Y VAII conty'nu8 to deVe￿v t slralegy for prov￿1)9 gants in an eff￿ent 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 Str￿ards 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 ap￿￿8b18 to charilB5 in England & W818s require¥J the TFu5t8e3 to prep8r8 finanaal state￿nts 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 appliG9t￿n of r980urcea of Ilp FguThl8lion fgrlh8t w*)d. In prep8rno Ihgs? finHnck?18tstsment#, the Trustees are requir8d to.. 8dect sulta￿e accL)unting and app￿ them wnI6tsnlJy', obsgNe the melh¢)Js and pllndpl86 in Ihe Chariles SORP.. Makel￿geMents ancl estim8t86 Ih8t are re860n8ble and pnjdenl stats sthet￿gr appucabb aCC￿nt￿O Sla￿ardS hav8 been t11k￿ed, 8ublect to any rnaterfal depathre8 diBc105ed and explained in the financ481 Jtat8m8nts,' prepara thè fina￿￿1 statamants on t￿ ¢￿tarn b3$18 unl•s$ * 1$ hAFproprfAt• to prnJuma thAI the F￿nda￿on wlll conb'nue In ￿SIres8. Th8 Tw6teg8 8re responsib￿ for keeping prcper a0￿unt￿g rec¥yd8 that discb8e wilh rea￿able 8ccur8Cy 8t any thè linanck91 posltbn ol FoU￿allOn and ènab￿ thèm to ènsure that tho finandal Stato￿nts cony with the Charrtie8 Acl 2011, th8 Trust (Accunts and Reporbl Regulatk)n8 the KYow61on6 of the FcKJndatth 8 Ilust de￿. They are a180 respons￿18 for 8afeguardlTra tha assets of iho F￿r￿atiC￿ 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: - 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; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - 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: - the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - 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: - we identified the laws and regulations applicable to the Foundation through discussions with management, and from our commercial knowledge and experience of the sector; - 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; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and - 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$88d the s￿￿eptIblllty FouTrJa1¢￿6 8￿C￿ntS to matthal fflI88tatwnwrt, (ljtshkng an uNlerntsThJlrYJ of fvaud MKJM Lxxur, by.. makhg ewulrles of 88 to where they cCmS￿ered there was to fraud. thelr kn￿I8￿e0f a￿al. WJ8￿rted a118J•J fra￿,. and con4derlThJ the Inlemal c¢J*rols In place to mlthJate rf6k8 of fra¢A Thc¥Fwmpllar￿a laws and JuLatbJn To ￿fvIL￿d tIwthb3h m8nw•nt trAa8 ¢)v•rrhJ• %*'. rfom*d anatytle81 Fm*dures b Identsfy any unuwal or m￿l￿n￿lp8,. 8t*1 joum81 èntrfè$ to Idènofy ur¥J8ual tran58rtSMs.' aBses*J 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 r*k)ThBle trAhlTrJ 61gnifK8nt or ur¥Jsu81 transBckns. In r•sFm• rbk d Irrtraubrftk*$orbJ rb)n.¢)ynF4I8￿ ￿1h kn ond rtyubtJon8, ￿ dos19r￿j mduros Ic* Inckj￿, but wffjr8 not lkn41￿ to.. &aredng flnaTrYal Stalen￿nI dbdcfjures ¢0 uTrJ8rfylrg supwting dOcumentad¢￿', mln¢Jt08 01 m88lTha8 ol tharg8d vAlh govérno￿." aThJ •nquirlr#J of mgnBgernent aTrJ repre8gntgtN¢8 of Tru¥teg¥ O¥ to 8¢kn418nd IlUgol￿ and cWm& Afurth•r￿sthpt￿rt ¢4 our r¢sp)nJlblllO•# for Its aud51 ofthe fina￿￿* *8lernent$ 1$ on FI￿￿1 ReporUr( Cl*ur￿lIS %￿b￿lI at w+m.f￿¢￿g.Ukl8Udrt0r0reOpom￿1IuoI. Th18 d88dptlcn t￿m8 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• Fo￿d#tI￿,5 tru8te88 thw rnattsrn ￿ arg rgquked lo stale b thern sn an Audtr8' r?￿rt for no ¢thr Pur￿1￿. To th8 fulle8t exlent temitted by¢8w, we do not actept cf 8swrne r8spK)n￿￿1tty to aThYC￿e other thon th8 ané hs Injatées, al a b*. lor wr wort, lorthh rèpjrt. ar cyNr*Jrw 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 elKJi￿a 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 Cred*orn: •n4)unt• due afterone year 2022 2021 Grnnts pwAb 535,000 Analys￿ of not aba•t8 b•tw••n ful￿8- 2022 R•8tFl¢i•d Unmtrlci fund• Total Investments clhèrnètA￿ts 14522,971 916214 14,551971 916214 1S,439,185 15A39,185 I fLnd# At 5Aprfl 2022 w*• ur*¢strktod furKls •nd ￿1 tron$gct￿ In tho 5*Br ond•J SApril ￿22 were wllhk) unr86ttsknJ I￿￿6. of [￿1 aBBets tdvmn fvnth- 2021 Re8trlthJ Unrestrfd•J luThJs Total luThJ8 Inv•stmant# Cther not aB8otB 11.297,3)) 301,288 11.2972 X)1,288 11.598,488 11.598.488 1& rx4nt Con¥nlkn•nl• The Foundatlon approv&J fulure gr8nt8 wxh a vabe of £1,285.99)13)21.' £780,(￿0) Wtye the year end. Grants p8y8bl8 ar• *Kludod Sn th• stst8m8nt dflnart481 actfvll88 wh8n approv•l and wh8n thè Int8nd*J hos ellher recthed the funth or been Infornwd ¢Y d￿allIon to mBke th8 granl hB8 88lsll6d all rdgtad cor￿it[c￿. 16. Conxnltm•nt• und•r op•r•tk8 l••w• S Aprti 3)22 tha charly had lutyr• n￿n1Th￿m lea￿ paYn￿ts dueon ￿l￿al￿dIableOp0rntIry leas88 88 ft4kM'. 21 NL* latw I￿￿ 1 y8ar 25,200 25,2CQ 17. Tru•t•• rthnun•r*lon Th• Trust•&s conshJ8r th•rnadv•$ as ct1nprt￿Thj th• k•y Mar￿m8￿ par￿￿8101 tho FoUThjat￿n. In ¢harg9 cl dk&*SrF aThJcontrollir#J the ￿n￿tion. C￿rh9 th8 year, th8 Tru5t888 ￿e[V8d m ￿[￿r￿rA￿C or beneflts in khJ12021.. £Nill. Durfng the year, Th) Tnjstee receN8d reAM￿￿ement cl expew812)21'. Th) TNstèè rèlrrburstrntnt Ll èxpen￿5). 17 THE SCHRODER FOUNDATION Notes to the financial statements for the year ended 5 April 2022 Rdated party trnnMctl*8r. Fojndalion rrédè a grant 01£40,1))J to Iha charfty. 18