2022-03-31-accounts - The Rumi Foundation

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Company Number: 5840786 Charity Number: 1115154

THE RUMI FOUNDATION

REPORT AND ACCOUNTS

For the year ended 31 MARCH 2022

THE RUMI FOUNDATION

CONTENTS	PAGES
Trustees and advisors	2
Trustees' annual report	3 - 9
Independent auditor's report	10 - 12
Consolidated Statement of Financial Activities	13
Consolidated Balance Sheet	14
Company Balance Sheet	15
Consolidated Statement of cash flows	16
Notes to the accounts	17 - 31

THE RUMI FOUNDATION

TRUSTEES AND ADVISORS

Trustees and Directors	D Muriithi
	B Pollard
	S Malcolmson
Secretary	S Malcolmson
Registered office	1st Floor
	Clutha House
	10 Storey's Gate
	London
	SW1P 3AY
Bankers	National Westminster Bank Plc
	Piccadilly and New Bond Street
	63 Piccadilly
	London
	W1J 0AJ
Auditor	Nexia Smith & Williamson
	Chartered Accountants
	Statutory Auditor
	45 Gresham Street
	London
	EC2V 7BG
Tax Advisors	Smith & Williamson LLP
	Accountants
	45 Gresham Street
	London
	EC2V 7BG
Legal Advisors	BDB Pitmans LLP
	1 Bartholomew Close
	London
	EC1A 7BL
Company registration number	5840786
Charity registration number	1115154

THE RUMI FOUNDATION

TRUSTEES' ANNUAL REPORT incorporating the Strategic Report and Directors' Report

The Trustees present their report and the accounts for the year ended 31 March 2022.

Structure, Governance and Management

The Foundation is a charitable company limited by guarantee, established under a Memorandum and Articles of Association adopted by the Charity on incorporation on 8 June 2006, as amended by the Articles of Association adopted on 27 October 2019. The Foundation was registered as a charity on 7 July 2006. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

The Trustees of the Foundation are also directors for the purposes of company law under the company’s Articles and are shown on page 2 to this report. The Trustees who served during the year are listed below:

B Pollard
D Muriithi
S Malcolmson

Organisational structure

The Rumi Foundation has a Board made up of three Trustees who meet at least twice a year and are responsible for managing the business of the Foundation. The Foundation retains third party professional managers to oversee its property portfolio. The Foundation's legal advisors are BDB Pitmans LLP.

At the year end the Foundation's corporate structure includes one subsidiary, Whitechapel Acquisitions Limited, which is non trading and is 100% owned by the Foundation. The Trustees appoint the directors of the subsidiary.

Trustees’ recruitment and appointment

Under the requirements of the Articles of Association the Trustees are appointed for fixed terms in office of a maximum of three years, and on retirement are eligible for re-appointment subject to the conditions in the Articles.

The Trustees have adopted a skills matrix and are recruited for their expertise and experience. The role of Trustee does not carry any remuneration, as such all Trustees give their time freely and no Trustee remuneration or expenses were paid in the year (2021: £nil). Trustees are required to disclose all related interests, any such interests or transactions are shown in Note 19 and in accordance with the Foundation's policies withdraw from decisions where a conflict of interest arises.

The Trustees have adopted a Trustees' Roles and Responsibilities Policy, which includes a Trustees' Code of Conduct.

Trustee Induction and Training

As part of their induction programme any new Trustees are made aware of their responsibilities as Trustees.

The existing Trustees recognise the need to have regular training on their roles and responsibilities and continuously seek to educate themselves to improve their skills and best practices. The Trustees appoint specialist advisors for professional support where necessary.

Risk Policy

The Trustees have adopted a Risk Assessment Register which considers the major risks to which the Foundation is exposed and sets out systems and procedures to mitigate them. The Trustees consider the major risk to be the safety of, and investment returns on, its funds. The Trustees seek professional advice to manage risks as appropriate.

THE RUMI FOUNDATION

TRUSTEES' ANNUAL REPORT

incorporating the Strategic Report and Directors' Report (continued)

The Trustees have specifically considered a number of business risks such as: the credit-worthiness of its tenants and debtors, the risk of changes in interest rates and the risks associated with property investment. The Foundation has made investments where the Trustees believe such risks are as low as possible and the Trustees seek professional advice where appropriate.

Reserves policy

The Trustees have formalised the Foundation’s reserves policy with reference to Charity Commission guidance (CC19) and accounting standards (Charities SORP FRS102). The Trustees have adopted a policy which defines free reserves as funds which are available for use by the Foundation, which are deemed to be those that are readily realisable in liquid investments, excluding any funds whose uses are restricted or else designated for any particular purposes (no such funds currently exist).

The policy specifies that the Foundation's free reserves should not fall below the amount required to run its activities for at least one year should there be any call for funds on the Foundation, bearing in mind the levels of stable income which the Foundation currently receives. The Foundation's expenditure excluding property management costs and interest is around £2.2 million per annum.

At the year end, the Group's cash consisted of around £9.8 million and the Group expects to receive around £6 million in annual income from investments.

The Trustees are comfortable that the level of reserves held at the end of the financial year are suitable, despite being in excess of the levels required by its long term policy, detailed above. This year the Trustees have opted for a cautious approach to the Foundation's finances due to the disruption caused by COVID 19 and the pressure of the current high inflation environment, that is likely to only get worse in the year ahead. The Foundation held a large cash balance and projects relatively secure rental income from its UK real estate investments in the coming year, which will provide a source of continuing reliable income.

The Trustees have examined the future anticipated cash flows of the Foundation and are satisfied that the Foundation has sufficient resources to meet its continuing obligations.

Investment Policy

The Trustees have created an investment policy to further the Foundation’s charitable objectives and are aware of the Charity Commission’s guidance (CC14) on the importance of managing risk in the formation of the Foundation’s investment policy. As the Foundation’s charitable objectives include the furtherance of charitable purposes both in the UK and overseas, the investment policy aims to invest its funds to create revenue streams in areas where the Foundation is undertaking or planning to undertake charitable activities.

The investment policy is to make appropriate investments achieving a reasonable balance of risk and reward in a range of both short and long-term investments. The Trustees leverage their own investment skills and also seek independent advice where appropriate to ensure that this balance is met.

The current fundraising strategy of the Foundation is to continue to build its capital to create an Expendable Endowment which can support a larger number of long-term projects in the future. In the low interest rate environment, the Trustees consider an appropriate target return to be 3% - 5%, in a blend of income and capital appreciation. The Trustees have regard to environmental, social and ethical considerations in evaluating potential investment opportunities for the Foundation.

The focus of the Foundation’s investment policy for the year was to continue to source good value, incomeyielding investments and to increase the value of existing investments through good asset management techniques. The Foundation’s return on investment in the current financial year was within the target range.

THE RUMI FOUNDATION

TRUSTEES' ANNUAL REPORT

incorporating the Strategic Report and Directors' Report (continued)

The Trustees also recognise that by making social investments The Foundation can invest to directly meet its charitable objects. During the year the Foundation made a programme related investment, the investment was made exclusively to further the charitable aims of The Foundation by funding the specific activities or assets of the organisation in receipt of the investment. Any future financial return is not the primary reason for making the investment, further details of the programme related investment are given in Note 13.

During the financial year, the Trustees continued to improve the Foundation's existing property portfolio by renovating vacant units and improving common parts, whilst renegotiating rents with existing tenants. Investment properties have been valued by the Trustees taking account of independent professional advice. The resulting increase in values reflects the improvements undertaken in the year.

The Trustees made a number of financial investments in the year, with the intention of reducing risk and diversifying future revenue streams. The value of the Foundation's other financial investments at the year end was £2,836,631 (2021: £274,852). Rental income continues to increase as further investment properties have been acquired and the Foundation monitors the covenants of its tenants to maximise the sustainability of its rental income. With these new investments, the Foundation continued to increase its annual income and to record the requisite earnings from its investments to fund its activities through the financial year.

Fundraising Policy

The Foundation is in compliance with the Charities (Protection and Social Investment) Act 2016

Grant-Making Policy

The Trustees have an established grant making framework whereby the Foundation works with large, established foundations to, together, support smaller, grassroots organisations that are making changes in an innovative way. The purpose of this grant making framework is to leverage the Foundation's impact by building up and maintaining strong long-term relationships with its strategic grant partners, which enables the Foundation to scale the impact of its activities. Furthermore, the Foundation's general policy is to enter longer-term grant arrangements as it enables the Foundation to build up a more meaningful and productive relationship with the grant recipient.

As part of its due diligence procedures on potential grant recipients, the Foundation ordinarily meets with every organisation it is considering funding and interviews them. Where appropriate the Foundation then records the terms on which it provides its grants in written grant agreements using Grant Offer Letters and Terms & Conditions and Grant Reporting Forms. The Foundation monitors the application and impact of its grant funding by meeting with each grant recipient on a regular basis to carry out a detailed assessment of the grant activities. In addition, the Foundation conducts site visits to the projects supported by some of its larger grants.

Objectives and Activities for the Public Benefit

The objects and purposes of the Charity as set out in its Articles, are:

the advancement of education of the public of any age in the UK and overseas and in particular, but without prejudice to the generality of the foregoing:
the provision, support and promotion of the education of children and young people in schools and institutions of further and higher education;
the education of disadvantaged members of the public;
the promotion of the arts; and
the relief of poverty.

The Trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when exercising their powers and duties and also when reviewing the Foundation's aims and objectives, when setting the grant-making policy for the year and planning future activities.

The Trustees are satisfied that the processes and activities of the Foundation satisfy the public benefit test set out in s.4 Charities Act 2011.

THE RUMI FOUNDATION

TRUSTEES' ANNUAL REPORT incorporating the Strategic Report and Directors' Report (continued)

The Foundation carries out these objects in the shorter term by providing financial support to schools, universities, healthcare and educational programmes that have a specific focus on the advancement of education, the relief of poverty, or both. The Foundation also provides financial support to schools in the most disadvantaged areas of the world, aimed at both educating disadvantaged members of the public and relieving poverty. In the longer term, the Foundation seek to promote and support research into scientific and human advancement at educational institutions. The intention is to partner with those particularly focused around social sciences, healthcare, technology and creative industries, where any innovation is most likely to further the Foundation's objects. The Foundation also aims, in particular, to support the education of girls.

Achievements and Performance during the period and plans for the future

The Foundation continued to work with existing charitable partners and sought to identify new long term partners to help fulfil its charitable vision.

The Foundation focused its partnerships this year on the education, empowerment and advancement of young people in our society today, and on community engagement and civic involvement. Education provides a route out of poverty for young people and prevents future generations from having to experience poverty. Also by having educated, motivated people actively engaging with their community the benefits of any educational programme or one designed to relieve poverty can be brought to individuals that were not initially involved with that programme.

The Foundation assesses how its giving meets its objects and measures the success of the programmes or other charities it has funded against a number criteria. These may be the number of people that have been helped, has the project or organisation grown and is there potential for future growth , the objective and subjective impact any funding has had on a community or organisation and whether any future giving will provide further impact. When measured against these criteria the Foundation had a very successful year. Future giving will continue to be measured against these criteria. The Trustees will continue learning from and improving their work and seeking the best opportunities for the Foundation to further its objects.

Details of grant funding and charitable expenditure are set out in Note 8. Further details of selected initiatives are set out below.

Drawing on their experience of working with charitable partners in previous years, the Trustees wanted to explore whether the networks the Foundation has built could successfully be used to connect charitable organisations with each other. As the Foundation has continued to mature, the Trustees were increasingly able to identify the unique ability of the Foundation to work with large, established foundations all around the world and at the same time to support smaller, grassroots foundations that are making change in an innovative way. Through the Trustees' unique networks, the Foundation can match these young changemakers with established foundations, further helping their growth and allowing them to access funding and recognition on a larger scale. The Foundation acts as an accelerator for social impact enterprises and organisations.

The Trustees use their networks and entrepreneurial skills to find innovative organisations that are making change at the grassroots level and provides these charities with funding to develop their ideas and to experiment and test how they can make the most impact. The Foundation provides guidance and mentorship and local networks to these young founders, and then connects the charities with larger, global organisations who help them grow, can provide them with additional levels of funding, and can give them access to best practices and networks of similar organisations around the world.

As the Foundation has entered into discussions with its grantees, it has also become clear how important it is for these charities to receive some unrestricted funds to allow them to satisfy their core costs, rather than to restrict funding to specific projects and not to underlying costs. The Trustees work with the grantees, particularly the smaller charities, to ensure that they are allocating the Foundation’s funds wisely, are acting in accordance with the Trustees’ suggestions and guidance, and that their impact is measured against the criteria given above. Where funds have been allocated to support a particular project, this is indicated below.

THE RUMI FOUNDATION

TRUSTEES' ANNUAL REPORT incorporating the Strategic Report and Directors' Report (continued)

Royal Foundation

The Foundation continued its relationship with the Royal Foundation, the charitable organisation of the Duke and Duchess of Cambridge. The Foundation provided unrestricted core funding for the Earthshot Prize, a project launched by the Duke of Cambridge in October 2020. The Prize will run between 2021 and 2030 and will be awarded annually to 5 winners whose solutions substantially help the environment and therefore work to relieve poverty. The prize fund will distribute £50 million over the course of the next decade. The Foundation also supported the mental health programmes of the Royal Foundation. The support was given with the intention of introducing some of the Foundation's innovative, grassroots charities that focus on educating those suffering with mental health issues to the Royal Foundation, increasing their impact and scale. Representatives of the Foundation worked closely with staff of the Royal Foundation to begin this co-ordination and plan for further engagement during the next financial year to continue to benefit disadvantaged members of the public and its mission to relieve poverty.

The Obama Foundation

The Foundation continued its long-term partnership with the Obama Foundation to further its object of education. The Obama Foundation operates globally, supporting outstanding civic innovators, those leaders who are working with their communities to create transformational change and addressing some of the world's most pressing problems.

The Obama Foundation runs educational programs in North America, Europe, Africa, Asia and Pacific regions. People enrolled in these programs are offered tailored workshops that will help them grow their existing skills develop new ones, further enhancing their 'leadership toolkit'. The Obama Foundation also engages with young people aged 18 - 25 to identify future leaders, it then supports them by offering educational workshops, mentoring and networking opportunities and cultural events where the emerging leaders can meet and engage with innovative thinkers and inspirational civic leaders from around the world. As a key supporter of the Obama Foundation's European programme representatives from the Foundation have attended events hosted by the Obama Foundation and directly witnessed it's impact and the community spirit created amongst the emerging leaders.

Kings College - The Global Institute for Women's Leadership

The Foundation continued its relationship with the Global Institute for Women's Leadership, an innovative charity that engages in rigorous academic research with the aim of playing key role in driving gender equality in leadership. Research undertaken by Global Institute for Women's Leadership provides insights that policymakers, practitioners and campaigners can use to make evidence-based decisions, effective interventions and policies that create real change.

Clinton Foundation

The Foundation continued its partnership with The Clinton Foundation. The mission of The Clinton Foundation is to improve global health, strengthen economies, promote healthier childhoods, and protect the environment by fostering partnerships among governments, businesses, non-governmental organisations, and private citizens to turn good intentions into measurable results.

The Foundation's main direction of funds provided to The Clinton Foundation is to education and health causes, particularly in Africa. The Community Agribusiness Approach programme provides education to rural farmers in sub-Saharan Africa to understand markets and climate-smart agriculture production. In Rwanda, The Clinton Foundation estimates that every $1 of funding has resulted in $3.80 of increased income for farmers.

Representatives of the Foundation met with representatives of the Clinton Foundation to discuss the application, use and impact of the Foundation's grant. The grant furthers the Foundation's objects of education of disadvantaged members of the public and the relief of poverty.

THE RUMI FOUNDATION

TRUSTEES' ANNUAL REPORT

incorporating the Strategic Report and Directors' Report (continued)

The Cares Family

During the year the Foundation began a new relationship with the Cares Family, a charity that works to dispel loneliness and the resulting social dislocation that appears to be all too common in our society. The Cares Family has a number of programmes that brings together, in friendship, older people with their younger neighbours by offering a mix of activities online, on the phone and in person. Over the course of 2021 a total 4,800 older and younger neighbours have shared time, new experiences and connection.

These activities ultimately make The Cares Family's reach broader, their work more accessible and their model more adaptable than ever, which will enable even greater impact in the years ahead.

Renaissance Foundation

The Renaissance Foundation is a key smaller, grassroots organisation that seeks to empower young people aged 12-18 experiencing significant challenges in their lives. The Renaissance Foundation runs a 3 year tailored outreach programme which aims to inspire and support disadvantaged young people facing barriers to education, work and fulfilment. Representatives of the Rumi Foundation have met regularly with the Renaissance Foundation to assess the impact of its giving.

The Migration Museum

The Migration Museum explores how the movement of people to and from Britain across the ages has shaped who we are, as individuals, communities and as a nation. The museum is located in Lewisham in South London and stages engaging exhibitions and dynamic events, alongside a far-reaching education programme for primary, secondary, university and adult learners. The museum also has a growing digital presence and convenes a knowledge-sharing Migration Network of museums and galleries.

Inspiring Girls International

Inspiring Girls International works in partnership with other charities and businesses around the world to help educate and inspire girls around the world to achieve their ambitions. In the last year Inspiring Girls teams held 835 events, reached 55,089 and registered 2,244 role models. and expanded to include 9 new global teams in Australia, Algeria, Belgium, Guatemala, Jersey, Poland, Portugal, Switzerland and Russia. As a result Inspiring Girls is now active in 28 countries around the world. The Foundation is pleased to support Inspiring Girls International as its work educating and empowering women directly empowers whole families to improve their economic well-being.

Other Initiatives

The Foundation also supported a number of other organisations including institutions within the creative industries, educational projects and children's charities in the UK and across the globe to further all of the Foundation's objectives.

Financial Review

The Foundation had another successful year. The Trustees continue to seek to build a long-term Expendable Endowment for the Foundation to allow it to sustainably increase its charitable giving without eroding the Foundation's capital base. This will allow the Foundation to continue to grow in size as it finds more long-term major charitable projects with which it can partner, both large and smaller.

THE RUMI FOUNDATION

TRUSTEES' ANNUAL REPORT

incorporating the Strategic Report and Directors' Report (continued)

Going Concern

Over the last year, global and national events have left most advanced economies with inflation levels greatly in excess of previous forecasts, the UK is no exception to this trend. The Trustees, taking into account the expected impact of the high inflationary environment we are currently operating in, consider that the investment and reserves policies they have put in place are sufficient to allow the Foundation to continue to meet its charitable purposes for the foreseeable future. The Trustees will be monitoring the economy and seek to find ways for the Foundation to support those most impacted and in greatest need.

Trustees’ Responsibilities Statement

The Trustees (who are also directors of The Rumi Foundation for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) and The Financial Reporting Standard 102. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including its income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgments and estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the that the charitable company will continue in business.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy, at any time, the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditors

In accordance with Section 485 of the Companies Act 2006, the Trustees confirm that Nexia Smith & Williamson have been reappointed as auditors of the company.

Awareness of relevant audit information

The Trustees of the company confirm that, in fulfilling their duties as Trustees, they have:

taken all the necessary steps in order to make themselves aware of any information relevant to the audit and to establish that the auditors are aware of that information; and
so far as they are aware, there is no relevant audit information of which the auditors have not been made aware.

Approved by the board of trustees and signed on behalf of the board

S Malcolmson Date: 8 July 2022

Trustee

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE RUMI FOUNDATION

Opinion

We have audited the financial statements of The Rumi Foundation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated & Parent Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2022 and of the group’s income and expenditure 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 Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charitable company’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 Report and Accounts, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees' 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.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE RUMI FOUNDATION

(CONTINUED)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees’ Annual Report, which includes the Strategic Report and the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors’ Report included within the Trustees’ Annual Report have been prepared

in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report included within the Trustees’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent charitable company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 9, the trustees (who are directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and under section 151 of the Charities Act 2011, and report in accordance with those Acts 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 auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND THE TRUSTEES OF THE RUMI FOUNDATION

(CONTINUED)

We obtained a general understanding of the charitable group’s legal and regulatory framework through enquiry of management in respect of their understanding of the relevant laws and regulations. We obtained an understanding of the charitable group’s policies and procedures in relation to compliance with relevant laws and regulations. We also drew on our existing understanding of charity regulation.

We understand that the charitable group complies with the framework through:

Updating operating procedures and internal controls as legal and regulatory requirements change; and
The Trustees' close oversight through regular board meetings.

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the charitable group’s ability to conduct operations and where failure to comply could result in material penalties. We have identified the following laws and regulations as being of significant in the context of the charitable group.

FRS 102 and the requirements of the Companies Act 2006 in respect of the preparation and presentation of the
financial statements;
Health and safety regulations, including building and fire safety; and
Charity law and regulation.

The senior statutory audit led a discussion with all members of the engagement team regarding the susceptibility of the Charity’s financial statements to material misstatement, including how fraud might occur. They key areas identified as part of the discussion were the risk of manipulation of the financial statements through manual journal entries, and incorrect treatment of the valuation of investment properties.

The procedures we carried out to gain evidence in the above areas included testing:
A sample of manual journal entries, selected through applying specific risk assessments based on the Charity’s processes and controls surrounding manual journals;
Making enquiries of the Trustees as to the risks of and any instances of non-compliance with laws and
Reading minutes of meetings of trustees and enquiring into any correspondence between regulators and the
charitable company; and
Reviewing support for the valuation of investment properties.

The senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent 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 parent charitable company, and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Bond

Senior Statutory Auditor, for and on behalf of Nexia Smith & Williamson Statutory Auditor Chartered Accountants Date: 8 July 2022

45 Gresham Street London EC2V 7BG

THE RUMI FOUNDATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING THE INCOME & EXPENDITURE ACCOUNT

FOR THE YEAR TO 31 MARCH 2022

FOR THE YEAR TO 31 MARCH 2022
		Total Funds	Total Funds
		31 March 2022	31 March 2021
	Notes	£	£
Income from:
Donations	4	710,000	1,219,308
Investments	5	6,922,525	5,403,509
Other trading income	6	27,345	12,942
Total income		7,659,870	6,635,759
Expenditure on:
Raising funds
Administrative costs	7	71,037	159,056
Real Estate Management
Administrative costs	7	3,430,343	1,848,829
Interest payable	7	2,556,207	1,401,226
Charitable activities	7	2,141,135	1,128,183
Total expenditure		8,198,722	4,537,294
Net gain on investments		4,160,973	2,841,173
Net income and net movement in funds		3,622,121	4,939,638
Funds as at 1 April		76,428,215	71,488,577
Funds as at 31 March		80,050,336	76,428,215

All incoming resources and resources expended derive from continuing activities.

THE RUMI FOUNDATION

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022

Notes Fixed Assets Tangible fixed assets 12 Investments 13 Investment properties 14 Current Assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 17 Creditors: amounts falling due after more than one year 18 Represented by: Unrestricted charity funds Accumulated fund 20 Revaluation reserve 20 Net Current Assets Net Assets	2022 £ 1,782,574 2,916,631 159,244,794 5,676,279 9,798,852 (4,714,550) (94,654,244) 62,984,781 17,065,555 10,760,581 163,943,999 15,475,131 80,050,336 80,050,336	2021 £ 1,866,974 274,852 154,162,794
		988,991 17,975,875 156,304,620
		(3,728,879) 18,964,866
		(95,112,392) 15,235,987
		76,428,215
		62,693,251 13,734,964
		76,428,215

The accounts were approved and authorised for issue by the Board of Directors on 8 July 2022 and were signed on its behalf by:

S Malcolmson Director

Company Number: 5840786

THE RUMI FOUNDATION

COMPANY BALANCE SHEET AS AT 31 MARCH 2022

Notes Fixed Assets Tangible fixed assets 12 Investments 13 Investment properties 14 Current Assets Debtors 15 Cash at bank and in hand Creditors: amounts falling due within one year 17 Creditors: amounts falling due after more than one year 18 Represented by: Unrestricted Accumulated fund 20 Revaluation reserve 20 Net Current Assets Net Assets	2022 £ 1,782,574 2,920,989 159,244,794 5,677,429 9,793,344 (4,714,550) (94,654,244) 62,984,781 17,065,555 163,948,357 10,756,223 15,470,773 80,050,336 80,050,336	2021 £ 1,866,974 279,852 154,162,794
		995,633 17,964,876 156,309,620
		(3,728,879) 18,960,509
		(95,112,392) 15,231,630
		76,428,858
		62,693,894 13,734,964
		76,428,858

The Foundation has taken advantage of the exemption under section 408 of the Companies Act 2006 from publishing its individual income statement, statement of other comprehensive income and related notes.

The company’s surplus for the year ended 31 March 2022 was £3,622,121 (2021 £5,558,417).

The accounts were approved and authorised for issue by the Board of Directors on 8 July 2022 and were signed on its behalf by:

S Malcolmson Director

Company Number: 5840786

THE RUMI FOUNDATION

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR TO 31 MARCH 2022

Net cash generated from operating activities Notes Net income Depreciation charge Interest paid Interest received Change in debtors Change in creditors Revaluation gain Revaluation loss Impairment of investments Investing activities Additions to investment properties Disposals of investment properties Additions to investments Disposals of investments Interest received Cash paid on acquisition of subsidiaries net of cash acquired Financing activities New loans Loans repaid Interest paid (Decrease) / increase in cash and cash equivalents Cash at 1 April Cash and cash equivalents at year end 23 Net cash (used) / generated from operating activities Net cash outflow from investing activities Net cash (outflow) / inflow from financing activities	2022 £ 3,622,121 84,400 2,556,207 (3) (367,288) 985,671 (4,160,973) - 1,520,000 (8,121,027) 2,880,000 (4,161,779) - 3 - - (458,148) (2,556,207) (8,177,023) 17,975,875 9,798,852 4,240,135 (9,402,803) (3,014,355)	2021 £ 4,939,638 84,400 1,401,226 (729,708) 58,528 2,660,192 (2,841,173) - -
		5,573,103
		(52,942,328) - - 23,426,000 729,708 (1,658,581)
		(30,445,201)
		43,216,052 (540,000) (1,401,226)
		41,274,826
		16,402,728
		1,573,147
		17,975,875

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022

1 Legal status

The Rumi Foundation ("the Foundation") is a private company limited by guarantee (Company number: 5840786) and a registered charity (Charity number: 1115154) incorporated in England and Wales. The address of the registered office is 1st Floor, Clutha House, 10 Storey's Gate, London SW1P 3AY.

In the event of the charitable company being wound up the liability in respect of the guarantee is limited to £1 per member.

2 Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period.

(a) Basis of preparation

The consolidated financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements have been prepared under the historical cost convention as modified by the valuation of certain assets including investment properties, in accordance with the Foundation's accounting policies.

The group's functional currency is sterling (£).

The Foundation is a public benefit entity and the Group is a public benefit group, as defined by FRS 102.

The principal accounting policies of the Foundation are set out below.

(b) Going concern

These financial statements have been prepared on a going concern basis.

Over the last year, global and national events have left most advanced economies with inflation levels greatly in excess of previous forecasts, the UK is no exception to this trend. The Trustees have reviewed the outlook for the coming year, taking into account the expected impact of the high inflationary environment we are currently operating in. The Trustees noted that the Foundation has a diverse investment property portfolio, consisting of a number of properties with a range of uses, its covenants with its tenants are strong, it also has a portfolio of other financial investments and consolidated net current assets of £10,760,581 at 31 March 2022. Therefore the Trustees consider that there is reasonable assurance the Group and the Foundation will have sufficient resources to enable them to continue in operation for the foreseeable future, being a period of no less than one year from the date of approval of these Financial Statements. Accordingly, the going concern basis has been adopted in the preparation of the financial statements.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

2 Accounting policies (continued)

(c) Basis of consolidation

The group financial statements incorporate the financial statements of the Foundation and entities controlled by the Foundation (its subsidiaries) prepared to 31 March each year. Control is achieved where the Foundation has the power to govern the financial and operating policies of an investee entity so as to obtain benefits from its activities.

The results of subsidiaries acquired during the year are included in profit or loss from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group.

All intra-group transactions and balances and any unrealised gains and losses arising from intra-group transactions are eliminated in preparing the consolidated financial statements.

(d) Business combinations and goodwill

Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the group.

The cost of a business combination is the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the group in exchange for control and the costs directly attributable to the business combination. The consideration transferred includes the estimate of any asset or liability resulting from a contingent consideration arrangement where the transfer of further consideration is probable and can be measured reliably. Identifiable assets acquired and liabilities and contingent liabilities assumed in the business combination are measured initially at their fair values at the acquisition date. Contingent liabilities are only recognised where the fair value can be measured reliably.

The group measures goodwill at the acquisition date as the excess of the cost of the business combination over the acquirer’s interest in the net amount of the identifiable assets, liabilities and contingent liabilities recognised. Subsequently goodwill is amortised on a straight line basis over its useful life of three years.

When the excess is negative, the negative goodwill arising is recognised separately on the face of the balance sheet and released up to the fair value of the non-monetary assets as the non-monetary assets are recovered and otherwise in the periods expected to be benefited.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

2 Accounting policies (continued)

(e) Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy and the receipt is considered to be probable.

Voluntary income is received by the way of donations and is included in full in the Statement of Financial Activities when receivable.

Investment income relates to interest on bank deposits, rental income arising from investment properties and interest on long term secured debt. Investment income is recognised on an accruals basis. Rental income is recognised as earned with the cost of any lease incentives being spread equally over the lease term. Any rental income relating to future periods is recognised in deferred income.

Other trading income relates to sales of development properties.

(f) Resources expended

Expenditure is recognised on an accruals basis, as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which relates.

Grants are recognised at the earlier of payment and when a constructive obligation to the recipient is created. Any grant recognised but unpaid, is recognised as a creditor.
Raising funds comprise the costs associated with attracting voluntary income.
Real estate management comprise property management costs, financing costs and the cost of developments sold.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and the services. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.
Governance costs are allocated between expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource.

(g) Taxation

The tax expense represents the sum of the tax currently payable and any deferred tax.

The current tax charge is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. The Foundation’s activities are charitable and therefore, to the extent that any surpluses are applied to its charitable objects, the Foundation is not liable to tax. In addition, its subsidiaries incur no current tax charge as all their profits, which would otherwise be taxable, are distributed to the Foundation by way of Gift Aid and thus no tax liability arises.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

2 Accounting policies (continued)

(h) Taxation (continued)

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date, and where it is probable that a tax liability will arise. Deferred tax on investment property revaluation gains are not recognised where it is probable that the crystallised profits will be donated to the Foundation such that no tax liability will ultimately arise.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income.

Whilst the tax expense is immaterial, it is recognised as a part of the cost of the relevant activity, rather than being disclosed separately in the Statement of Financial Activities.

(i) Property, Plant and Equipment

Property, Plant and Equipment are valued using the cost model and are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing an asset to the condition necessary for it to operate in the manner intended for it by the trustees.

Depreciation is charged on assets so as to allocate their cost less their residual value over their estimated useful lives, using the straight line method.

Depreciation is provided on the following basis:

Freehold property - 4% straight line

(j) Investments

Investments are initially recognised at cost and subsequently at fair value, if this can be measured reliably; or if fair value cannot be measured reliably, at cost less impairment. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

(k) Social Investments

Programme related investments are held at fair value, if this can be measured reliably; or if fair value cannot be measured reliably, at cost less impairment. Where a decision is taken that a programme related investment should be held to generate a financial return and that the primary motivation for holding it is no longer to further the objects of the charity, it will be transferred to the main investment portfolio and measured accordingly.

(l) Investment properties

Investment properties which are properties held to earn rentals and / or capital appreciation are initially measured at cost and subsequently at fair value. Revaluation surpluses and deficits are recognised as part of the income statement.

Where there is a mixed use property the fair value of the investment element is included in Investment Properties and the cost is included in Property, Plant and Equipment, in accordance with FRS 102.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

2 Accounting policies (continued)

(m) Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the Foundation becomes a party to the contractual provisions of the instrument.

Trade (including rental) and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the Foundation will not be able to collect all amounts due.

Loans which meet the criteria to be classified as basic financial instruments are initially recorded at the present value of cash payable to the bank, which is ordinarily equal to proceeds received net of direct issue costs. These liabilities are subsequently measured at the amortised cost, using the effective interest rate method.

The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

(n) Cash and cash equivalents

Cash and cash equivalents includes cash in hand and bank deposits with maturities of three months or less.

(o) Recognition of liabilities

All expenditure is recognised once there is a legal or constructive obligation committing the charity to the expenditure.

(p) Funds structure

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. Unrestricted funds comprise the revaluation reserve and general reserves. The revaluation reserve is the excess of the fair value of investment property in excess of cost; the general reserves are the accumulated reserves of the Foundation, not otherwise classified as restricted reserves or revaluation reserves. Restricted funds are subjected to restrictions on their expenditure imposed by the donor, currently there are no restricted funds.

(q) Foreign currency transactions

All transactions denominated in foreign currencies are translated at the rate of exchange ruling at the time of the transaction. All foreign exchange differences are taken to the Statement of Financial Activities in the period in which they arise. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated using the closing rate.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

3 Key sources of estimation uncertainty and judgements

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

Significant management judgements

Financial instruments classification

The classification of financial instruments as "basic" or "other" requires judgement as to whether all applicable conditions as basic are met. This includes consideration of the form and its return.

Recognition of grants payable

Grants payable are recognised at the earlier of payment or when a constructive obligation to the grant recipient arises. The point at which this occurs requires the exercise of judgement in the cases of conditional grants which have been advised to the recipients.

Significant management estimates

Valuation of investment property

Investment properties are included in the financial statements at their value at the year end, as required by FRS 102. Fair value is estimated based on expected future net income from the properties and market yield rates. The value of the investment properties is detailed in note 14.

Valuation of Programme Related Investments

The Trustees make a judgement in relation to the classification of investments between those made primarily for financial return and those held for non-financial objectives. Impairments to programme related investments are charged to Charitable Activities.

Programme related investments form a portfolio managed separately from the Foundation’s other investments. These investments are held primarily to further the charitable aims of the Foundation rather than to provide a financial return. They are held at fair value, if this can be measured reliably; or if fair value cannot be measured reliably, at cost less impairment.

Deferred taxation

Deferred tax on investment property revaluation gains arising in subsidiaries are not recognised where it is probable that the crystallised profits will be donated to the Foundation such that no tax liability will ultimately arise.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

		Group		Company	Company
4	Voluntary income	2022	2021	2022	2021
		£	£	£	£
	Donations	710,000	1,219,308	710,000	1,744,692

The income from donations was £710,000 (2021: £1,219,308) for the group. The company received donations of £ Nil from its wholly owned subsidiaries (2021: £1,744,692). All income was unrestricted.

The Foundation benefits greatly from the involvement and support of its volunteers, details of which are given in the Annual Report. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

5 Investment income Rental income Interest on debt securities Dividend income Bank interest 6 Other trading income Other income Gain on exchange	2022 2021 £ £ 6,907,927 4,673,801 - 729,673 14,595 - 3 35 6,922,525 5,403,509 2022 2021 £ £ 27,345 12,942 - - 27,345 12,942 Group Group	2022 2021 £ £ 6,907,927 4,184,251 - 850,851 14,595 - 3 27 6,922,525 5,035,129 2022 2021 £ £ 27,345 12,942 - - 27,345 12,942 Company Company	2022 2021 £ £ 6,907,927 4,184,251 - 850,851 14,595 - 3 27 6,922,525 5,035,129 2022 2021 £ £ 27,345 12,942 - - 27,345 12,942 Company Company
			12,942

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

7 Total Resources Expended - Group Basis of allocation Costs directly allocated to activities Grants Direct Other charitable activities Direct Disposal of investment property Direct Investment property expenses Direct Provision for doubtful debts Direct Support costs allocated to activities Accountancy Direct Bank charges and fees Direct Interest on bank loans Direct Governance costs allocated to activities Audit fees Apportioned Legal and professional Direct Other Apportioned Total expenditure	2022 £ - - - - - - - - - - 12,080 - 58,957 71,037 71,037 Raising	2021 £ - - - - - - - - - - 19,098 - 139,958 159,056 159,056 funds	2022 2021 £ £ - - - - 76,000 - 2,637,481 1,192,324 347,487 - 3,060,968 1,192,324 61,322 92,433 86,092 80,181 2,556,207 1,401,226 2,703,621 1,573,840 12,080 - 150,924 483,891 58,957 - 221,961 483,891 5,986,550 3,250,055 Real Estate Management	2022 2021 £ £ 833,432 969,128 1,236,667 - - - - - - - 2,070,099 969,128 - - - - - - - - 12,080 19,097 - - 58,956 139,958 71,036 159,055 2,141,135 1,128,183 Charitable activities	2022 £ 833,432 1,236,667 76,000 2,637,481 347,487 5,131,067 61,322 86,092 2,556,207 2,703,621 36,240 150,924 176,870 364,034 8,198,722	2021 £ 969,128 - - 1,192,324 -
						2,161,452
						92,433 80,181 1,401,226
						1,573,840
						38,195 483,891 279,916
						802,002
						4,537,294

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

8 Grants and charitable expenditure 2022 £ Material Grants Charitable Objective Clinton Foundation Education 221,663 Obama Foundation Education 198,958 Royal Foundation Education 100,000 Other Grants Equality Education Education 114,365 UK Education Education 90,500 Africa Education Education 48,333 India Education Education 33,333 North America Education Education 18,500 UK Creative Industries 7,780 UK Healthcare Relief of poverty - 833,432 All grants were made to institutions. 9 Auditor's remuneration 2022 £ 36,240 Accountancy and advisory fees 4,778 Restructuring and professional fees - 41,018 Fees payable to the Foundation's auditor for the audit of the Foundation's financial statements. Education - Promotion of the Arts	2021 £ 76,176 369,661 100,000 122,037 127,800 15,000 30,454 50,000 47,000 31,000
	969,128
	2021 £ 32,945 45,198 15,912
	94,055

10 Trustees' remuneration and expenses

No trustees received any remuneration or expenses during the year (2021: £ Nil). During the year a company controlled by a trustee received £46,975 (2021: £49,918) for the provision of accountancy services to the group, as detailed in Note 19.

11 Corporation Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

The Trustees consider that it is probable no corporation tax will arise in the group's commercial subsidiary as all their profits, which otherwise would be taxable, are likely to be distributed to the Foundation by way of Gift Aid. Accordingly, no post acquisition tax charge has been provided on their results.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

12 Tangible fixed assets Cost At 1 April 2021 Additions At 31 March 2022 Depreciation At 1 April 2021 Charge for the year At 31 March 2021 Net Book Value At 31 March 2022 At 31 March 2021 13 Investments Group At 1 April 2021 Additions Impairment At 31 March 2022 Company At 1 April 2021 Additions Impairment Disposals At 31 March 2022	Group Land and Buildings £ 2,110,000 - 2,110,000 243,026 84,400 327,426 1,782,574 1,866,974 Unlisted Program Related Investments £ £ 274,852 - 2,561,779 1,600,000 - (1,520,000) 2,836,631 80,000 274,852 - 2,561,779 1,600,000 - (1,520,000) - - 2,836,631 80,000	Company Land and Buildings £ 2,110,000 - 2,110,000 243,026 84,400 327,426 1,782,574 1,866,974 Subsidiaries Total £ £ - 274,852 - 4,161,779 - (1,520,000) - 2,916,631 5,000 279,852 - 4,161,779 - (1,520,000) (642) (642) 4,358 2,920,989	Company Land and Buildings £ 2,110,000 - 2,110,000 243,026 84,400 327,426 1,782,574 1,866,974 Subsidiaries Total £ £ - 274,852 - 4,161,779 - (1,520,000) - 2,916,631 5,000 279,852 - 4,161,779 - (1,520,000) (642) (642) 4,358 2,920,989
			2,110,000
			243,026 84,400
			327,426
			1,782,574
			1,866,974
			Total £ 274,852 4,161,779 (1,520,000)
			2,916,631
			279,852 4,161,779 (1,520,000) (642)
			2,920,989

At 31 March 2022, the charity's investments were held in the UK and USA.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

14 Investment properties

Group At 1 April 2021 Additions Disposals Revaluation gains At 31 March 2022 Company At 1 April 2021 Additions Disposals Revaluation gains At 31 March 2022	Freehold £ 147,412,794 6,830,502 (7,200,000) 4,034,973 151,078,269 Freehold £ 147,412,794 6,830,502 (7,200,000) 4,034,973 151,078,269	Leasehold £ 6,750,000 1,290,525 - 126,000 8,166,525 Leasehold £ 6,750,000 1,290,525 - 126,000 8,166,525	Total £ 154,162,794 8,121,027 (7,200,000) 4,160,973
			159,244,794
			Total £ 154,162,794 8,121,027 (7,200,000) 4,160,973
			159,244,794

Historical cost of freehold properties at 31 March 2022 amounted to £134,544,694 (2021: £134,524,192) for the Group and £134,544,694 (2021: £134,524,192) for the Foundation. Historical cost of leasehold properties at 31 March 2022 amounted to £7,194,164 (2021: £5,903,638) for Group and Foundation. Additions are comprised of new properties acquired by the group and improvements to some of its existing properties during the year.

Investment properties have been valued by the Trustees taking account of independent professional advice. Fair value is estimated based on expected future net income from the properties and market yield rates.

15 Debtors Trade debtors Other debtors Accrued income Prepayments	2022 2021 £ £ 1,213,960 699,209 4,374,255 - - 217,250 88,064 72,532 5,676,279 988,991 Group	2022 2021 £ £ 1,213,960 699,209 4,374,255 6,642 1,150 217,250 88,064 72,532 5,677,429 995,633 Company	2022 2021 £ £ 1,213,960 699,209 4,374,255 6,642 1,150 217,250 88,064 72,532 5,677,429 995,633 Company
			995,633

During the year the Foundation disposed of one of its investment properties. Included in Other Debtors is a loan of £4,320,000 (2021: £Nil) extended to the purchasers of the property. The loan is at 60% LTV and secured by first charge against the property and is repayable on 31 December 2022, at which time if the loan remains unpaid interest of 8% per annum is payable.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

16 Operating leases with tenants

The Foundation leases out all its investment properties under operating leases. The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows:

2022 2021 Due: £ £ Not later than one year 3,491,059 3,880,818 Later than one year but within five years 4,729,166 7,146,182 Later than five years 6,064,661 6,149,518 14,284,886 17,176,518 Group	2022 2021 £ £ 3,491,059 3,880,818 4,729,166 7,146,182 6,064,661 6,149,518 14,284,886 17,176,518 Company	2022 2021 £ £ 3,491,059 3,880,818 4,729,166 7,146,182 6,064,661 6,149,518 14,284,886 17,176,518 Company
		17,176,518

None of the leases entered into give tenants the right or option to purchase or contain contingent rents.

17 Creditors: Amounts falling due within one year

Secured bank loan Accruals and deferred income Other creditors Other taxes and social security costs	2022 2021 £ £ 540,000 540,000 2,500,492 1,691,002 1,501,171 1,388,416 172,887 109,461 4,714,550 3,728,879 Group	2022 2021 £ £ 540,000 540,000 2,500,492 1,691,002 1,501,171 1,388,416 172,887 109,461 4,714,550 3,728,879 Company	2022 2021 £ £ 540,000 540,000 2,500,492 1,691,002 1,501,171 1,388,416 172,887 109,461 4,714,550 3,728,879 Company
			3,728,879

18 Creditors: Amounts falling due after one year

Secured loan Secured bank loan Bank loans Amounts due within one year Amounts due within two to five years	2022 2021 £ £ 22,000,000 22,000,000 72,654,244 73,112,392 94,654,244 95,112,392 2022 2021 £ £ 540,000 540,000 72,654,244 73,112,392 73,194,244 73,652,392 Group Group	2022 2021 £ £ 22,000,000 22,000,000 72,654,244 73,112,392 94,654,244 95,112,392 2022 2021 £ £ 540,000 540,000 72,654,244 73,112,392 73,194,244 73,652,392 Company Company	2022 2021 £ £ 22,000,000 22,000,000 72,654,244 73,112,392 94,654,244 95,112,392 2022 2021 £ £ 540,000 540,000 72,654,244 73,112,392 73,194,244 73,652,392 Company Company
			73,652,392

The secured bank loan is secured with a charge against the properties to which the loan relates, the value of the properties offered as security is £159,244,794 (2021: £151,562,794). The loan is repayable in 2024, and interest on the loan accrues at 2% above SONIA.

The Secured loan is secured by a second charge against the security properties in the above note. The loan is repayable in 2023 and interest on the loan accrues at a fixed rate of 4%.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

19 Related party transactions and key management personnel

During the year Aristeia Accounting Limited, a company controlled by Stuart Malcolmson who is also a Trustee of the Foundation, invoiced £46,975 (2021: £49,919) for the provision of accountancy services, of which £3,852 (2021: £3,500) was unpaid at the year end.

Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the Foundation. In the opinion of the Trustees, key management are the board of Trustees. The Trustees appoint specialist advisors for professional support where necessary.

20 Movements in funds

Revaluation reserve £ Group At 1 April 2021 13,734,964 Incoming resources - Outgoing resources - Revaluation gains on investment properties 4,160,973 Realisation of revaluation on disposal of investment property (830,382) Movement for the year 3,330,591 17,065,555 Company At 1 April 2021 13,734,964 Incoming resources - Outgoing resources - Revaluation gains on investment properties 4,160,973 Realisation of revaluation on disposal of investment property (830,382) Disposals - Movement for the year 3,330,591 17,065,555 21 Financial instruments 2022 2021 £ £ Financial assets 2,916,631 274,852 9,798,852 17,975,875 Financial assets measured at amortised cost Group Financial assets measured at fair value through the profit & loss	Accumulated Total fund Funds £ £ 62,693,251 76,428,215 7,583,869 7,583,869 (8,122,721) (8,122,721) - 4,160,973 830,382 - 291,530 3,622,121 62,984,781 80,050,336 62,693,894 76,428,858 7,583,869 7,583,869 (8,122,721) (8,122,721) - 4,160,973 830,382 - (643) (643) 290,887 3,621,478 62,984,781 80,050,336 2022 2021 £ £ 2,916,631 274,852 9,793,344 17,964,876 Company	Total Funds £ 76,428,215 7,583,869 (8,122,721) 4,160,973 -
		3,622,121
		80,050,336
		76,428,858 7,583,869 (8,122,721) 4,160,973 - (643)
		3,621,478
		80,050,336

Financial assets measured at amortised cost are comprised of cash.

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

22 Subsidiaries

Details of the company's subsidiaries at 31 March 2022 are as follows:

		Nature of	Class of shares	2022 %	2021
Name of undertaking	Registered	business	held	Held	% Held
				Direct	Direct
Whitechapel	11380670	Property
Acquisitions Limited	England and Wales	investment	Ordinary	100	100

Summary financial information of the significant subsidiaries at 31 March 2022:

Turnover Fair value gain Expenses Loss Assets Liabilities Net Assets	Whitechapel Acquisitions Limited 2022 - - -
	-
	5,508 1,150
	4,358

Gift Aid donations to the Foundation are excluded from the profit and loss information above.

23 Analysis of changes in net debt

	At		At
	1 April 2021	Cash Flows	31	March 2022
Cash and cash equivalents
Cash and cash equivalents	17,975,875	(8,177,023)		9,798,852
	17,975,875	(8,177,023)		9,798,852
Borrowings
Debt due within one year	(540,000)	-		(540,000)
Debt due after one year	(95,112,392)	458,148	(94,654,244)
	(95,652,392)	458,148	(95,194,244)
Total Net Debt	(77,676,517)	(7,718,875)	(85,395,392)

THE RUMI FOUNDATION

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2022 (continued)

24 Post Balance Sheet Events

There are no significant events to report.