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← The Schroder Foundation

2024-04-05-accounts

Charity No. 1107479

THE SCHRODER FOUNDATION

Financial Statements 5 April 2024

THE SCHRODER FOUNDATION

Financial statements for the year ended 5 April 2024

Contents Page
Reference and administrative information 1
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

Trustees:

Mrs C L Fitzalan Howard Mrs C B Mallinckrodt Mr P S A Mallinckrodt Mr R Robinson (resigned 7 March 2024) Ms L K E Schroder Ms A Sussman (appointed 21 June 2023)

Observer:

Mr G H Fitzalan Howard (from 21 June 2023 )

Registered Office:

81 Rivington Street London EC2A 3AY

Charities Director: Laura Bowman

Solicitors:

Withers 20 Old Bailey London EC4M 7AN

Russell-Cooke LLP 2 Putney Hill London SW15 6AB

Auditor:

UHY Hacker Young Thames House Roman Square Sittingbourne ME10 4BJ

Bankers:

Schroder & Co Limited 1 London Wall Place London EC2Y 5AU

CAF Bank Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

Investment Manager:

Cazenove Capital 1 London Wall Place London EC2Y 5AU

Constitution:

The Schroder Foundation is registered in England and Wales as an unincorporated charity (number 1107479) and is governed by its Trust Deed.

1

THE SCHRODER FOUNDATION

Report of the Trustees for the year ended 5 April 2024

The Trustees present their report and the accounts of The Schroder Foundation (‘the Foundation’) for the year ended 5 April 2024.

The financial statements comply with the Foundation’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 Charities Director on the Foundation’s grant-making process as well as the relevant internal policies and procedures of the Foundation.

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.

Public Benefit

The Trustees confirm that they have due regard to Section 17 of the Charities Act 2011 and have referred to the Charity Commission’s general guidance on public benefit when reviewing the Foundation’s aims and objectives and in planning their future grant making activities.

2

THE SCHRODER FOUNDATION

Report of the Trustees for the year ended 5 April 2024

Procedures and policy for grant-making

At their quarterly Meetings the Trustees consider what grants they will make and receive reports from grant recipients. The Trustees travel widely in the UK and abroad and use the knowledge gained to support the work of the Foundation and to inform grant-making policy. Organisations identified by the Trustees for potential support are normally invited to submit a formal application outlining it activities, beneficiaries and how the funds will be applied according to the guidance of the Trustees and the Charities Director.

Investment policy

The allocation of investments is delegated to the investment manager who provides progress reports to Trustees on a regular basis. The Trustees regularly review current strategy thereby ensuring the careful stewardship of The Schroder Foundation funds.

The investment manager is tasked with maintaining or increasing the value of the portfolio, while ensuring there are sufficient funds to meet all commitments in full. During the year ended 5 April 2024, net gains on investments were £711,406.

The Charity Multi-Asset Fund is authorised and approved by the Charity Commission and is designed specifically for charities. As well as exposure to equities, bonds and cash the fund also includes exposure to alternative asset classes such as commodities, property and absolute return. The Fund has a target return objective of Inflation (CPI) +4% per annum over an economic cycle.

Achievements and performance

During the year the Foundation made 23 new grant commitments (2023: 29) totalling £328,271 (2023: £1,790,250) within the Trustees’ themes for support, and paid existing grant commitments totalling £920,000 to 19 organisations. At the end of the year under review the Foundation had outstanding grant commitments of £580,000. During the year the Trustees also reviewed their current funding priorities, particularly under the Education & Young People category and will further progress activity in this area in 2024-25. The Cares Family Limited ceased trading due to insolvency and the outstanding grant due of £60,000 is now no longer required.

Financial review

The market value of investments and portfolio cash at 5 April 2024 was £13,495,988 (2023: £11,726,033). During the year the Foundation received income of £685,017 (2023: £576,504) and expended £499,701, of which £483,151 was on charitable activities. The Foundation’s net assets at 5 April 2024 were £13,812,696 (2023: £12,915,974).

Risk management

The Trustees manage and assess the major risks to the charity regularly. During the year the Trustees considered the major risks to which the Foundation is exposed and across five main categories: Governance; Reputational and External; Grant Making and Strategy; Investment and Finance; and Operations. It is the opinion of the Trustees that the Foundation has established and operates systems and procedures to manage and mitigate risks to an acceptable level for its day-to-day operations.

Reserves policy

The Schroder Foundation recognises the need to hold reserves for the maintenance of core charitable activities in the event of income shortfalls. Reserves are defined as income that becomes available which is to be expended at the discretion of the Trustees of The Schroder Foundation in furtherance of its objects but which has not yet been spent, committed or designated. The Schroder Foundation carefully budgets and plans charitable expenditure, liaising closely with the Investment Manager. Budget and income information is reported to Trustees at quarterly Meetings.

At the year end, total unrestricted reserves were £13,812,696 (2023: £12,915,974).

3

THE SCHRODER FOUNDATION

Report of the Trustees for the year ended 5 April 2024

Future plans

During the coming year the Trustees will review the policy for grant-making and they will continue to develop the strategy for providing grants in an efficient and effective way.

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland.

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources of the Foundation for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Foundation and enable them to ensure that the financial statements comply with the Charities Act 2011, the Trust (Accounts and Reports) Regulations and the provisions of the Foundation’s trust deed. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approval

This report was approved by the Board of Trustees on __ and signed on its behalf by:

Claire Fitzalan Howard Trustee

4

THE SCHRODER FOUNDATION

Independent Auditor’s Report to The Schroder Foundation

Opinion

We have audited the financial statements of The Schroder Foundation for the year ended 5 April 2024 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:

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 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:

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 Charities Administered by The Kaiser Wilhelm II Fund’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:

Non-compliance with laws and regulations

Based on:

We considered the significant laws and regulations to be the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Charities SORP (FRS 102), the Charities Act 2011, and UK tax legislation.

The charity is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the Health and Safety at Work etc Act 1974, the Data Protection Act 2018, Employment Rights Act 1996 and the Bribery Act 2010.

Our procedures in respect of the above included:

6

THE SCHRODER FOUNDATION

Independent Auditor’s Report to The Schroder Foundation

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be journals and key estimates and judgements.

Our procedures in respect of the above included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of no detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s website at frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Tracey Moore BFP ACA (Senior Statutory Auditor)

For and on behalf of UHY Hacker Young Chartered Accountants and Statutory Auditors Thames House Roman Square Sittingbourne Kent ME10 4BJ Date:

7

THE SCHRODER FOUNDATION

Statement of financial activities for the year ended 5 April 2024

Notes
Income and endowments from:
Investments
3
Administration & accountancy fees receivable
Total
Expenditure on:
Raising funds – investment management fees
4
Charitable activities:
Administration
5
Charitable grants
6
Governance
Total
Net income / (expenditure) before gains
and losses on investments
Net gains / (losses) on investments
7
Net income / (expenditure) being
movement in funds
8
Fund balances brought forward
Fund balances carried forward		 Restricted
Unrestricted
£
£
-
603,701
-
81,316
-
685,017
-
16,550
-
206,834
-
268,271
-
8,046
-
499,701
-
185,316
-
711,406
-
896,722
-
12,915,974
-
13,812,696		 2024
Total
funds
£
603,701
81,316
685,017
16,550
206,834
268,271
8,046
499,701
185,316
711,406
896,722
12,915,974
13,812,696		 2023
Total
funds
£
504,723
71,781

576,504

14,937
165,724
1,790,250
6,780

1,977,691

(1,401,187)
(1,122,024)

(2,523,211)
15,439,185

12,915,974

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.

9

THE SCHRODER FOUNDATION

Balance Sheet as at 5 April 2024

Notes
Fixed assets
Investments
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts due within 1 year
11
Net current assets
Total assets less current liabilities
Creditors: amounts due after 1 year
12
Net assets
Funds
Unrestricted funds
13
Total funds		 2024
£
13,495,988
116,997
793,004
910,001
(563,293)
346,708
13,842,696
(30,000)
13,812,696
13,812,696
13,812,696		 2023
£
11,726,033

112,822
2,539,519

2,652,341
(932,400)

1,719,941

13,445,974
(530,000)

12,915,974

12,915,974

12,915,974

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.

10

THE SCHRODER FOUNDATION

Statement of Cash Flows for the year ended 5 April 2024

Notes
Cash flows from operating activities:
Net cash used in operating activities
(a)
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
(b)
Cash and cash equivalents at the end of the reporting period
(b)
(a) Reconciliation of net income to net cash flows from operating activities
Net income for the reporting period
Adjustments for:
(Gains) / losses on investments
Dividends and interest from investments
Increase in debtors
(Decrease) / increase in creditors
Net cash 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:
6 April
2023
Cash flows
£
£
Cash and cash equivalents
2,539,519
(1,746,515)		 2024
£
(1,291,667)

356,274
91,537
(898,674)
(3,985)
(454,848)
(1,746,515)
2,539,519
793,004
896,722
(711,406)
(603,701)
(4,175)
(869,107)
(1,291,667)
793,004
793,004

Non-cash
movement

£

-		 2023
£
(1,747,333)

327,601
3,637,768
(1,788,006)
2,274

2,179,637

432,304

2,107,215

2,539,519

(2,523,211)
1,122,024
(504,723)
(7,260)
165,837

(1,747,333)

2,539,519

2,539,519

5 April
2024
£
793,004

The notes on page 11 to 18 form part of these financial statements.

11

THE SCHRODER FOUNDATION

Notes to the financial statements for the year ended 5 April 2024

1. General information

2. Principal accounting policies

a) Basis of accounting

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. 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.

12

THE SCHRODER FOUNDATION

Notes to the financial statements for the year ended 5 April 2023

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.

l) 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.

13

THE SCHRODER FOUNDATION

Notes to the financial statements for the year ended 5 April 2024

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 investments

Restricted
Unrestricted
£
£
Bank interest
-
11,247
Dividends
-
592,454
-
603,701		 2024
£
11,247
592,454
603,701		 2023
£
22,690
482,033
504,723

No restricted investment income was received in the year (2023: £Nil).

4.

Expenditure on raising funds 2024 2023
£ £
Investment management fees 16,550 14,937

All costs incurred in both 2024 and 2023 were in respect of unrestricted funds.

5.

Expenditure on administration costs
Salary and pension costs:
Wages and salaries
Social security costs
Pension costs
Consultancy costs
Temporary staff
Other staff related costs
Office running costs
Subscriptions
Grants management system
Training and travel
Sundry		 2024
£
90,912
5,044
8,951
7,150
38,641
5,490
42,192
4,741
2,339
787
587
206,834		 2023
£
95,000
5,960
10,243
6,688
-
90
41,138
3,894
2,343
368
-

165,724

All costs incurred in both 2024 and 2023 were in respect of unrestricted funds.

The average number of employees employed by the Foundation in the year was 1.5 (2023: 2)

The following number of employees received employee benefits (excluding employer pension costs and employer national insurance) during the year between:

2024 2023
£70,000 - £79,999 1 -
£60,000 - £69,999 - 1

14

THE SCHRODER FOUNDATION

Notes to the financial statements for the year ended 5 April 2024

5. Expenditure on administration costs continued

The Trustees and the Foundation Director are considered to be key management personnel.

The total employee benefits, including pension contributions and employer's national insurance, of the key management personnel were £82,515 (2023: £80,300).

6. Expenditure on charitable grants

a) Charitable grants made during the year:

a) Charitable grants made during the year:
Age UK (Silver Line Helpline)
Breast Cancer Now
British German Association
Cockpit Arts
David McAnthony Gibson Foundation
Dornoch Heritage SCIO (Historylinks Museum)
International Federation of Red Cross & Red Crescent
Islay & Jura Sub-Committee (see note 6b)
Surfers Against Sewage
Less: Grants no longer required: The Cares Family Limited

2024 Total
2023 Total		 2024
£
35,000
50,000
40,000
30,000
10,023
25,000
9,998
38,250
90,000
328,271
(60,000)
268,271

1,790,250

b) Charitable grants approved by the Islay & Jura Sub-Committee:

2024 Total
2023 Total
All charitable donations paid in both 2024 and 2023 were unrestricted.
table grants approved by the Islay & Jura Sub-Committee:
Cantilena Festival On Islay
Finlaggan Trust
Glasgow Islay Gaelic Choir
Islay Heritage
Islay Book Festival
Islay Development Initiative Ltd
Islay & Jura Community Enterprises Ltd
Islay & Jura Highland Dancers
Islay Natural History Trust (SCIO)
Islay Pipe Band Association
Islay and Jura Senior Citizens Association
Kilmeny Community Playing Field
Museum of Islay Life
North and West Islay Church of Scotland
38,250

25,250
2024
£
2,000
500
750
7,500
2,000
7,500
6,000
1,000
1,000
4,000
2,500
1,000
500
2,000

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THE SCHRODER FOUNDATION

Notes to the financial statements for the year ended 5 April 2024

7.
Net investment gains and losses
Realised gains / (losses)
Unrealised gains / (losses)
8.
Net movement in funds
Net movement in funds is stated after charging:
Trustees’ emoluments
Auditor’s remuneration
- as auditor
- for tax services
9.
Investments
Market value brought forward
Additions at cost
Disposal proceeds
Net gains / (losses) on disposals and revaluations
Portfolio cash held by the investment manager
Market value carried forward
Historic cost carried forward
Investments comprise the following:
Equities (listed)
Private equity		 2024
£
652
710,754
711,406
2024
£
-
6,780
180
2024
£
11,722,182
1,146,101
(91,537)
711,406
13,488,152
7,836
13,495,988

12,256,787

2024
£
13,427,488
60,664
13,488,152
 2023
£
(311,780)
(810,244)

(1,122,024)

2023
£
-
6,600
180

2023
£
14,516,846
1,965,128
(3,637,768)
(1,122,024)

11,722,182
3,851

11,726,033

11,136,476

2023
£
11,590,826
131,356

11,722,182

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THE SCHRODER FOUNDATION

Notes to the financial statements for the year ended 5 April 2024

10. Debtors 2024 2023
£ £
Dividends and interest receivable 68,996 65,364
Other administration & accountancy fees receivable 42,549 42,396
Other debtors 5,452 5,062
116,997 112,822
11. Creditors: amounts falling due within one year 2024 2023
£ £
Grants payable 550,000 920,000
Accruals:
Auditor’s fees for audit 6,780 6,600
Accountancy fees 1,500 1,500
Investment management fee payable 4,110 4,300
Employer’s pension contributions payable 903 -
563,293 932,400
Reconciliation of Grant creditors:
2024 2023
£ £
Balance of grant creditors at 6 April 2023 1,450,000 1,285,990
Grant commitments made in the year 268,271 1,790,250
Grants paid during the year (1,138,271) (1,626,240)
Balance of grant creditors at 5 April 2024 580,000 1,450,000
12. Creditors: amounts falling due after one year 2024 2023
£ £
Grants payable 30,000 530,000
30,000 530,000

17

THE SCHRODER FOUNDATION

Notes to the financial statements for the year ended 5 April 2024

13.
Analysis of net assets between funds – 2024
Restricted
Unrestricted
funds
funds
£
£
Investments
-
13,495,988
Other net assets
-
316,708
-
13,812,696		 Total
funds
£
13,495,987
316,708
13,812,696

All funds held at 5 April 2024 were unrestricted funds and all transactions in the year ended 5 April 2024 were within unrestricted funds.

Analysis of net assets between funds – 2023
Restricted
Unrestricted
funds
funds
£
£
Investments
-
11,726,033
Other net assets
-
1,189,941
-
12,915,974		 Total
funds
£
11,726,033
1,189,941
12,915,974

14. Grant Commitments

The Foundation approved future grants with a value of £80,000 (2023: £915,000) before the year end. Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions.

15. Commitments under operating leases

At 5 April 2024 the charity had future minimum lease payments due on non-cancellable operating leases as follows:

2024 2023
£ £
Not later than 1 year 25,200 25,200

16 . Trustee remuneration

During the year, the Trustees received no remuneration or benefits in kind (2023: £Nil). During the year no Trustees received reimbursement of expenses (2023: one Trustee, Mrs C L Fitzalan Howard, received reimbursement of meeting expenses of £217.20).

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THE SCHRODER FOUNDATION

Notes to the financial statements for the year ended 5 April 2024

17. Related party transactions

Ms L K E Schroder and Mrs C L Fitzalan Howard are non-executive directors of Schroders plc, the ultimate parent company of Cazenove Capital, which acts as investment manager for the Charity, and Schroder & Co Ltd, which act as bankers for the charity.

Three of the trustees, Mrs C B Mallinckrodt (until 15 June 2023), Mrs C L Fitzalan Howard and Ms L K E Schroder, are also trustees of the Schroder Charity Trust. During the year The Schroder Foundation made a charge to the charity of £45,916 in respect of administration and accountancy services provided and £13 in relation to Companies House expenditure incurred during the year (2023: £47,211 in respect of administration and accountancy services and £13 in relation to Companies House expenditure). A balance of £20,406 (2023: £28,290) was due to the Schroder Foundation at the year end.

Mr P S A Mallinckrodt (until 31 December 2023) and Ms L K E Schroder are also trustees of The Charities Administered by the Kaiser Wilhelm II Fund. During the year The Schroder Foundation made a charge to the charity of £12,746 (2023: £9,632) in respect of administration and accountancy services provided and £60 (2023: £nil) for an EPC Certificate and £nil (2023: £520.05) for utility costs paid during the year. A balance of £7,257 (2023: £5,136) was due to the Schroder Foundation at the year end.

Three of the trustees, Mrs C B Mallinckrodt, Mrs C L Fitzalan Howard and Mr P S A Mallinckrodt are also trustees of The Mallinckrodt Foundation. During the year The Schroder Foundation made a charge to the charity of £17,319 (2023: £11,276) in respect of administration and accountancy services provided and £nil (2023: £342) for meeting expenses incurred during the year. A balance of £11,770 (2023: £7,670) was due to the Schroder Foundation at the year end for administration and accountancy services and £nil (2023: £342) for meeting expenses.

Cockpit Arts received a grant of £30,000 in 2024 (2023: £nil). The Chair of Trustees of Cockpit Arts, Mrs D Mallinckrodt, is related to Mr P S A Mallinckrodt.

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