2021-03-31-accounts

The Barrow Cadbury Trust (A company limited by guarantee)

Annual report and consolidated financial statements for the year ended 31 March 2021

Charity Registration Number 1115476 Company Registration Number (England and Wales) 5836950

The Barrow Cadbury Trust (a company limited by guarantee)

Contents

Reference and administrative details	2
Report of the Board of Trustees	3
Independent Auditor’s report	29
Statement of Financial Activities	33
Balance sheets	34
Consolidated statement of cash flows	35
Notes to the accounts	36

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The Barrow Cadbury Trust (a company limited by guarantee)

Reference and administrative details for the year ended 31 March 2021

Trustees Erica Cadbury (Chair) Nicola Cadbury Omar Khan (appointed 11 July 2020) Esther McConnell Catherina Pharoah Tamsin Rupprechter Henry (Harry) Serle John (Jack) Serle Steven Skakel Anna Southall OBE Co-optees Carol Harrison – Investment Management Committee Jan Pethick – Investment Management Committee Key management personnel Dame Sara Llewellin DBE Chief Executive Deborah Pippard Director of Programmes Mark O’Kelly Director of Finance and Administration and Company Secretary

Principal office Kean House, 6 Kean Street, London WC2B 4AS Telephone [phone] Facsimile 0207 632 9061 Website www.barrowcadbury.org.uk Company registration number 5836950 Charity registration number 1115476 Statutory auditor Sayer Vincent LLP Invicta House, 108-114 Golden Lane, London EC1Y 0TL Bankers Triodos Bank, Deanery Road, Bristol BS1 5AS HSBC Bank plc, 94 Kensington High Street, London W8 4SJ Investment manager Sarasin & Partners LLP Juxon House, 100 St Paul's Churchyard, London EC4M 8BU Solicitors Russell-Cooke LLP 2 Putney Hill, Putney, London SW15 6AB

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

The trustees present their statutory report together with the accounts of the Barrow Cadbury Trust (the Trust) for the year ended 31 March 2021. The accounts consolidate the financial statements of the Trust and its subsidiary undertaking, the Barrow Cadbury Fund Limited (the Fund). Comparatives are for the year ended 31 March 2020.

The reference and administrative information set out on page 2 forms part of this report.

The financial statements comply with current statutory requirements, the Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Structure

The Trust was incorporated as a charitable company limited by guarantee on 5 June 2006, and is also a registered charity. The Trust is the sole member of the Barrow Cadbury Fund (the Fund), a noncharitable company limited by guarantee. Both the Trust and the Fund are governed by Articles of Association which were reviewed and amended in July 2020 in order to take account of new requirements under company law and best practice.

Trustees

Appointment of trustees

Until 2009, all of the trustees were direct descendants of Barrow and Geraldine Cadbury. The first two non-family members were appointed in 2009. Three non-family trustees served during the past year. Family trustees are recruited through the family and efforts are made to establish familiarity with the work of the Trust among younger family members at an early stage. Non-family trustees are recruited and are selected to diversify and enhance the skill base of the Board. Induction is provided for new trustees on Trust strategy and good governance. The trustee register of interests is updated and graded annually and is available for public inspection on request. There is continuing emphasis on improving capabilities in governance, investment, financial management and communications. There is an annual trustee performance review where additional training requirements are identified and appropriate training is provided. Workshops and site visits are arranged for trustees on relevant matters. In the past year site visits have not been possible due to the pandemic.

Chief Executive

The day-to-day management is delegated to the Chief Executive of the Trust, Dame Sara Llewellin DBE.

Governance

The Board has strengthened its role in strategy setting and in the oversight of impact, whilst stepping back from operational management over the last few years. A core governance pack is in place for trustees. This governance pack also serves as an induction pack for new trustees, incorporating all key

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

documents and is reviewed and updated annually. The Trust welcomes the Charity Governance Code and looks to it for best practice advice.

Centenary year 1920-2020

2020 was the centenary year of the establishment of the Trust. Our plans to celebrate this were impacted by Covid-19 but nevertheless some were achieved in part:

• Commissioning a refreshed animation about the work of the Trust (achieved).

• Posting monthly blogs on contemporary issues with links to the Trust’s work over time (largely achieved).

• Convening partners on each of our programmes for learning exchanges (partially achieved virtually).

• An event on ‘models of change’ for our social and statutory sector partners in Birmingham (on hold).

• A day long conference at the British Library on ‘How Change Happens’ with notable key note speakers (on hold).

As a Quaker heritage foundation our approach to celebrations is to ‘party with a purpose’ and we fully intend to hold these events when it is safe to do so.

The Impact on the Trust of Covid-19

At the start of the financial year we had closed the office and all staff were working from home. We issued guidance to staff in line with Government health advice at the time and ensured all staff had the equipment and the access to work remotely. At the time of writing the report this is still largely the case with some carefully restricted office attendances.

Our approach during the year to all our grant holders and social investees was to be flexible regarding their timetables for work in hand and activities, payments (grants) and repayments (social investments). We repurposed some grants, rescheduled others and made other variations as needed. We introduced a Covid-19 page on our website which has been frequently updated all year. We undertook simple stress testing of all our portfolios and identified organisations we considered vulnerable. We made several emergency grants. We do not fund a great deal of direct service delivery and hence the demand for this was not high. We also updated our risk register iteratively to include the major risks posed to the charity by the pandemic.

In the summer of 2020 we took on and distributed £5 million to the refugee and migrant sector in England on behalf of the National Lottery Community Fund and in the autumn took on £2 million of dormant assets from DCMS/Access Foundation to help shore up social investment intermediaries.

As an endowed foundation we experience the volatility of the investment markets. Our response to this matter is covered in the financial review.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

Since staff have been working from home we have:

• contacted and kept in touch with grantees and social investees, being flexible and helpful as outlined above. Of particular note was that a number of social investees struggled and we introduced forbearance and help with business planning

• had a brief team meeting every working day and maintained regular updates on our work and well being

• held six virtual Board meetings and three Investment Management Committee meetings

• agreed an investment of £500,000 in the Resilience and Recovery Loan Fund

• participated in steering a national portal for foundation collaboration with the Association of Charitable Foundations (ACF)

• worked with regulators (FCA, Ofgem, the Payment Regulator, CMA) on protection for vulnerable people living in poverty by means of ‘inclusive design’

• reassessed and redrawn the priorities of the Connect Fund with the Access Foundation to better reflect the needs of social investment market in the Covid-19 context

• worked with our partners in a variety of networks and with our trade association (ACF).

In 2021-22 we will:

• have regular board meetings and weekly written board updates

• make new grants, renewal grants and social investments as appropriate

• work from home while Government guidance asks those who can to do so

• continue to support our funded partners and social investees with business help and sign posting in order to protect their charitable activities as best they can

• work with our partners to help them to recover from the negative impacts of the pandemic

• continue to work in collaboration with other foundations to improve our collective impact in the recovery phase

• continue to deploy our workforce to assist with the collective efforts of the funding community

• return to in-office working in a planned and careful way

• review and report on the impact of the pandemic on our work and working practices.

As an endowed foundation we have become more aware of slavery and labour exploitation in the origins of the wealth of the Cadbury company which contributed to the original endowment of the Trust. We have published several responses to this as we have learned more and are very committed to deepening both our understanding of our history and our work on racial justice. More information can be found on our website and will continue to be updated.

The Board has a Strategic Framework in place for 2016-22. The Board decided to continue to spend capital as well as income at broadly the same level as now over this period, in order to prioritise the continued impact of our work. The Board has decided that by the end of the next strategic period (2022-27), the Trust should no longer be depleting the capital endowment. Further information on this decision can be found on our website.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

During the year one new non-family trustee was appointed (Omar Khan in July 2020).

In 2021-22 we will:

• Undertake a full strategic view of the Trust’s work and put in place a strategic framework for 202227.

• Review the composition of the Board.

Remuneration of senior staff

Senior staff are on salary scales with five incremental steps, with an additional annual inflationary element. The trustees sought external advice and undertook a peer benchmarking exercise when these were put in place. No salaries are individually negotiated.

Risk management

At least once a year, the trustees review the major risks facing the Trust and Fund and ensure that any necessary mitigating actions are put in place. One named trustee has lead responsibility for oversight of the risk register (currently Steven Skakel). The trustees are satisfied that appropriate measures and effective systems are in place to mitigate those risks. A comprehensive risk analysis was undertaken during the year and an updated full risk strategy reviewed by trustees in April 2021. Each quarter the Board monitors the identified ‘headline’ risks. Additional risks were identified in relation to Covid-19 and were added to the register. The highest scoring risks on the register are:

1. COVID-19 has serious adverse consequences resulting in the delay or non-delivery of funded projects, or impacts on the survival of the funded partner. This is managed through regular communication with all individual grant holders and being flexible and responsive as appropriate.

2. Our ability to influence policy is reduced by perceptions of political bias. This is managed by ensuring our activities and public profile are politically non-partisan with partnerships across the political spectrum.

3. The Trust is subject to adverse publicity regarding the origins of the endowment, specifically with reference to the legacy of historic slavery. The Trust has a long track record in racial justice work, demonstrating a longstanding commitment to this work. In addition the Trust has been transparent about any findings, including blogs and statements on the website, and we are currently reviewing stakeholder feedback mechanisms.

The trustees have considered the risks and do not consider that any of the risks pose a threat in the foreseeable future to the Trust’s ability to operate as a going concern. The Trust has significantly increased its cash holdings, as mentioned in the investment section, to mitigate against falls in investment values and financial returns due to any economic downturns arising from Covid-19, Brexit or other market shock.

In 2021-22 we will: Remain vigilant with regard to changes in the external environment which may affect our risk appetite or exposure, with particular reference to the ongoing pandemic.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

Strategic and operational planning

Having developed the Trust’s Strategic Framework for 2016-22, in 2021 we implemented and now report on the fifth year’s Operational Plan. A revised Operational Plan is now in place for 2021-22.

In 2021-22 we will: Implement the sixth year of the revised Strategic Framework for 2016-22 (N.B. extended for a sixth year due to COVID-19).

Public benefit

The trustees have had regard to the Charity Commission’s guidance on public benefit and also to guidance from the Association of Charitable Foundations. Trustees are confident the Trust operates for public benefit and discussed the matter fully at a Board meeting during the year.

The Trust’s mission is to use all our assets, especially our money, to work with others to bring about structural change for a more just and equal society. The benefits arising from the Trust’s work include social and economic improvement for people, especially, but not exclusively:

• young adults and women, who are within or at risk of falling into the criminal justice system;

• refugees, asylum seekers and undocumented migrants; and the communities which receive them;

• people living in poverty, especially those who are most financially excluded;

• the promotion of philanthropy, social investment; and

• strengthening civil society and its voice.

This assistance is provided both directly and indirectly by the Trust working with and funding voluntary organisations, campaigns, social investment vehicles, think tanks and community groups to work directly with, or to secure better social and economic improvements for, end beneficiaries.

Fundraising

The Trust does not engage in public fundraising and does not use professional fundraisers or commercial participators. The Trust nevertheless observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance with these regulations and codes and the Trust received no complaints relating to its fundraising practice.

Vision, Mission, Values and Cross-Cutting Themes

Vision: The Trust’s vision is of a just and peaceful society which recognises the equal value of all people.

Mission: The Trust’s mission is to use all of our assets, especially our money, to work with others to bring about structural change for a more just and equal society.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

Values:

Voice:

The Trust is committed to ‘speaking truth to power’ by enabling the unfiltered voices of people’s real lived experience to influence those in power.

Collaboration:

Recognising that we can achieve little on our own, the Trust works in partnership with others to build movements for change.

Engagement:

The Trust aims to use the power that having independent money gives us and to work with all our partners respectfully in the interests of our shared goals.

Independence:

The Trust sees a strong civil society, of which we are a part and which we will nurture, as a key mechanism for holding the powerful to account.

Learning:

The Trust seeks to learn from all the work we undertake and support – and to share that learning widely to increase impact.

Innovation and evidence:

The Trust will work over a sustained period of time to find and build an evidence base for new solutions to old problems.

Quaker Values:

The Trust respects its historical roots in Birmingham and in Quaker values, although now embracing all faiths and none.

Cross-Cutting Themes:

• Strengthening civil society.

• Putting equality at the heart of everything we do.

• Addressing gender based disadvantage.

• Addressing racism in all its forms.

• Sustainable development.

Our Model

The Trust describes its approach as that of a catalytic change maker, using all our assets, not only our money, in the service of our mission. We aim to bridge the divide between experience on the ground and policymakers. We are guided by the Quaker imperative to ‘speak truth to power’ and to this end we aim to allow the voices and ‘lived experience’ of marginalised and disadvantaged people to be heard in the ‘corridors of power’ and to contribute to problem solving. We aim to bring to policymakers what

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

we call ‘new solutions not just old complaints’. The Trust works with think tanks, campaigning organisations and the media to increase informed public dialogue about some of the difficult issues of our age. The Trust provides opportunities for grantees to influence policy makers and also for them to come together and share learning. The Trust also funds research which aims to influence public policy and practice in order to bring about structural change. These areas of work are described in more detail in the next section of this report.

In order to better explain our model of working we have a short animation which illustrates succinctly our approach. The animation and guidance for prospective applicants on eligibility to apply, our procedures and methods of working are all available on our website (www.barrowcadbury.org.uk).

Objectives and Activities, Achievements and Performance

In January 2016 trustees approved a new five year Strategic Framework for the Trust (2016-21). Note the Board extended this framework for a further year (2021-22) due to the pandemic and will conduct the full strategic review during this period.

Strategic Objectives:

The Trust’s five strategic objectives for 2016-22 are:

Strategic Objective 1

To develop and promote evidence of effective policy and practice for young adults and women at all stages of the criminal justice system, and to enable the voices of those directly affected to be heard.

Strategic Objective 2

To promote an immigration system that is fair to both migrants and established residents and a policy and public debate on migration and integration that is based on shared values as well as evidence.

Strategic Objective 3

To support practical and effective approaches to improving the economic inclusion of communities and reducing economic injustice.

Strategic Objective 4

To use all the Trust’s assets for the advancement of social justice.

Strategic Objective 5

To ensure that the organisation is fit for purpose to deliver its Strategic Framework, to support trustees in their stewardship of the Trust and to support staff to work efficiently and effectively.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

The Past Year:

Operational Objectives 2020-21:

The Operational Plan for 2020-21 identified 33 operational objectives for the year across the five Strategic Objectives, against which progress is closely monitored and reported to the Board.

Activities

The Trust works to achieve its objectives through grant making, social investment, campaigning, outreach, commissioning research, facilitating alliances and partnerships and adding value to grants through capacity building, leadership and learning support.

New programme approvals in 2020-21

The following table includes the total value of programme approvals in 2020-21 for each of the three main programme areas and the two other associated funding streams. These included restricted funds, in particular for the Connect Fund and Fair By Design, and part of Cross-Cutting as noted. Further details of restricted funding are included in note 19 of the accounts.

----- Start of picture text -----
£ ‘000
Criminal Justice 1,084
(includes £42,000 of restricted funds)
Migration 6,224
(includes £4,990,440 of restricted funds in grants – the remainder
of the restricted expenditure included in the Migration figure in the
Statement of Financial Activities is for operating costs)
Economic Justice 1,046
Cross-cutting & Promoting Philanthropy (includes £114,665 of 369
restricted funds)
Connect Fund 679
Fair By Design 20
Social investment impairments 46
TOTAL 9,468
----- End of picture text -----

Key achievements 2020-21:

Strategic Objective 1 – Criminal Justice

Our work on the Criminal Justice Programme has centred principally around progressing the Transition to Adulthood Alliance (T2A) which is a collaborative effort of 16 key organisations working to embed an age appropriate approach to the post juvenile age group (c. 18-25) across the criminal justice system.

Principal Achievements :

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

• Significant policy and influencing opportunities:

• Her Majesty’s Prison and Probation Service (HMPPS) has continued its work to support young adults in its care. It has maintained a young adult focus through the difficult COVID-19 period.

• The HMPPS Young Adult Project Board has been regularly convened throughout 2020. The Project Board has senior representatives from each agency making up the HMPPS organisation.

• The continuing influence of T2A was seen with Her Majesty’s Prison Inspectorate conducting a thematic review of young adults in custody.

• The Mayor’s Office for Policing and Crime has recently secured funding to pilot a Transitions to Adulthood hub for young adults on probation in one London borough from this coming July.

• Significant projects came to fruition:

• The brave decision by Unlock to intervene in a Supreme Court case on behalf of the plaintiffs challenging criminal conviction rules has led to significant reform of the disclosure system.

• The Trust’s criminal justice programme has enabled a strong and well-connected sector to develop in support of women in the justice system.

 Significant approaches:

• Continuing strategic input to Equal (previously the Young Review) working to implement the Lammy recommendations on BAME disproportionality.

• The Trust’s support for women’s centres and senior leaders in this sector has produced a strong and cohesive group.

• The Trust continues to support groups articulating Muslims’ experiences of the justice system.

• The Trust continues to support the infrastructure of the sector, specifically Clinks’ policy and leadership capabilities.

• The Trust’s relationship with Leaders Unlocked continues to develop. Its project supporting young adult criminal justice advisers is well regarded.

 Significant publications:

• Manchester Metropolitan University: Stories of Injustice: the criminalisation of women convicted under joint enterprise laws.

• Just for Kids Law/Youth Justice Legal Centre : Timely Justice: Turning 18 - A briefing on the impact of turning 18 in the criminal justice system

• Justice : Tackling Racial Injustice: children and the youth justice system

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

Strategic Objective 2 – Migration

Our work on the Migration programme has centred principally around opening-up public debate on migration and integration over a number of years. Since the referendum of June 2016 we have stepped up our work to support migrant voices together with those of established (receiving) communities and to respond collaboratively to the current refugee crisis in Europe.

Principal Achievements :

• Significant policy and influencing opportunities:

• It was a difficult year for parliamentary advocacy, with the pandemic dominating most political and policy debates.

• The Migration Observatory at Oxford University continues to play a central role in debates about migration and integration, with an impressive media exposure, particularly with the ‘red tops’.

• British Future's work on integration continued to expand. It remains a driving force behind the Together coalition, which formally launched during the year and is backed by the Church of England

• The All Party Parliamentary Group (APPG) on Social Integration launched the second part of its inquiry into the lessons and legacy of COVID-19 for social connection with an open call for evidence.

• An important development has been work to highlight the impacts of the no recourse to public funds (NRPF) visa conditions imposed upon thousands of migrants, including those with legal status, effectively excluding them from most forms of statutory support.

• Significant projects came to fruition:

• The Trust delivered a National Lottery Community Fund (NLCF) grants programme of £5 million to the refugee and migrant sector, led by the Director of Programmes. In total 197 grants were awarded with a maximum size of £50,000.

  • Of those there was an even spread grant size in each of the <£10,000, <£20,000, <£30,000, <£40,000 and <£50,000 ranges.

The geographical spread was:

• All 9 English regions and some England-wide.

• Three regions received more than the other others – North West, Yorkshire and Humber and Greater London – largely reflecting the higher levels of relevant population and numbers of organisations serving them.

• The funder collaboration Migration Exchange, which the Trust has supported over many years, initiated a series of pandemic related interventions, including the Respond and Adapt programme.

• The Refugee and Migrant Centre won the Third Sector Charity of the Year, with Refugee Action among the runners-up.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

  - Hope not Hate presented our Chief Executive with an award in recognition of the Trust’s longstanding work in racial and social justice.

  - We supported work with EU nationals to target those most at risk of not securing legal status before the deadline in June 2021.[1]

• Significant publications:

• IPPR : Beyond the Hostile Environment

• Migration Observatory : Unsettled Status - 2020: which EU citizens are at risk of failing to secure their rights after Brexit?

• Lift the Ban Coalition : Why giving people seeking asylum the right to work is common sense.

Strategic Objective 3 – Economic Justice

Our Economic Justice Programme has been further refined to focus more fully on several areas of work: local economies (especially Birmingham), fairer financial systems and savings and debt.

Principal Achievements :

• Significant policy and influencing opportunities:

• Energy and appetite for community wealth building activities within Birmingham and the wider combined authority has continued to grow with a new Anchor Institution initiative incubating in Sandwell.

• The Fawcett Society and Women’s Budget Group were quick to mobilise around the specific impact of the virus on gender inequality, delivering briefings and seminars to parliamentarians and civil servants.

• The Trust’s support for partners such as Tax Justice UK, Fair Tax Mark and the High Pay Centre put them in a good position, when COVID struck, to ensure that wealth inequalities, transparency and accountability in public spending and fair tax systems were included into civil society and political debate on how to “build back better”.

• Evidence gathered by the Child Poverty Action Group (CPAG), including from the Early Warning System was used to repeatedly remind the government of the gaps left by its welfare response to the pandemic.

• Significant projects pivoted to pandemic related interventions:

• The High Pay Centre has continued to comment on excessive CEO salaries and the extent to which these have been maintained during the pandemic, despite rising unemployment and food bank use.

• The Centre for Household Assets and Savings Management’s (CHASM) Financial Inclusion Monitor 2020, launched in October, flagged the cumulative impacts of Brexit and COVID-

1 With the exception of Irish citizens, all citizens of European Union, European Economic Area countries and Switzerland and their family members are required to apply, even if they have a status called ‘permanent residence’ or were born in the UK but not have British citizenship. The deadline is June 2021.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

19 on low-income households. Figures from the Monitor were quoted in the Treasury’s own financial inclusion report.

• Responsible Finance worked with its membership of responsible finance providers to document local demand for affordable credit from individuals and small businesses over the early months of the pandemic.

• The Finance Innovation Lab has established a partnership with StepChange to start a new, third sector-led conversation about Open Finance, a major new policy development area for data-driven finance.

• Significant publications:

• New Policy Institute : The State of Economic Justice in Birmingham and the Black Country

• New Local : Shifting the balance: local adaptation, innovation and collaboration during the pandemic and beyond.

• Finance Innovation Lab : Lifting the Lid on Fintech

Fair By Design

Fair By Design is a campaign to ‘design out’ the poverty premium within a decade. The poverty premium is the additional costs for essential goods and services paid by low-income households. Fair By Design runs parallel to a Venture Fund investing in innovations, particularly in fin-tech, to better deliver products to low-income households at fairer cost. Fair By Design is not a grant programme; it is financed by a collaboration of foundations and is run by the Barrow Cadbury Trust.

Fair By Design has a key role in ‘curating’ the efforts of various players in this space, as well as actively working to effect change in the policy and regulatory environment and in corporate sector offerings and products.

• We have been achieving considerable traction over the year:

• Published a report on Protected Characteristics and the poverty premium.

• Published flagship guides jointly with Money Advice Trust for regulators and business on ‘Inclusive Design’.

• Added to the evidence base for the poverty premium.

• Worked intensively with Fair4AllFinance and Toynbee Hall which secured an announcement in government’s spring budget of a pilot No Interest Loans Scheme (NILS).

• Worked intensively with National Energy Action and secured an extension for a further year of the Warm Homes Discount with consultation to follow regarding any further extension.

• Embedded lived experience in the work through two cohorts of ambassadors.

• Worked closely with regulators (Financial Conduct Authority, Competition and Markets Authority, Ofgem, Payments Regulator).

• Served on the Financial Inclusion Commission.

• Worked closely with the Treasury and BEIS on policy issues.

• Initiated international work with the OECD.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

• Significant publications and short films:

Publications

• Inclusive Design in Essential Services (in partnership with Money Advice Trust)

• The inequality of poverty: Protected Characteristics and the poverty premium

• The poverty premium: A customer perspective

Films

• ‘What is the poverty premium’ https://bit.ly/FBDFilm

• Our first lived experience film, ‘Paulette’s story’ http://bit.ly/FBDLivedExp

Cross-Cutting Themes and Promoting Philanthropy

In addition to our other programmes and social investment portfolio we earmarked a modest budget for related areas of work:

Firstly, we used some funding for work which cuts across our programmes but which trustees consider key to our mission.

• In line with our commitment to ‘strengthening the hands of the change makers’ we contributed to and managed a pooled fund for the Coalition for Race Equality organisations.

• In line with our commitment to racial justice we worked with other funders for race equality and contributed to a secretariat function for the Funders for Race Equality Alliance.

• In line with our commitment to strengthening civil society we contributed to NPC’s latest ‘State of the Sector Report’, Equally Ours and the Sheila McKechnie Foundation.

Secondly, we earmarked some funding to support the promotion of philanthropy including the exploration by others of social investment.

• Core support was given to Global Dialogue, Philanthropy Impact, Charitable Trusts West Midlands and the European Foundation Centre.

• Project support was given to Friends Provident Foundation for the development of a Transparency Index for foundations.

Strategic Objective 4: Using all the Trust’s assets

Our approach is to use all the assets at our disposal to further our mission. This includes ourselves, our intellectual capital, our endowment (for grants and for social investments), our brand, our convening power and our office space.

Principal Achievements :

• The investment portfolio, valued at £92.8 million at 31 March 2021, is managed by Sarasin and Partners whose performance is monitored through quarterly reports and regular meetings with the Investment Manager. Details of the investment performance and responsible investment activities are included on pages 20-21.

• The Trust has its main bank accounts in Triodos Bank, a bank with high ethical ranking.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

• Details of social investment activities are included on pages 22-23.

In-kind and convening support:

• British Future notionally occupied six desks in our offices in 2020-2021 (albeit that office was in effect out of use during that period) free of charge. The work of the organisation is closely aligned with our own and the Trust played a key role in creating it. The estimated share of rent and other costs is £73,000.

• The Trust’s meeting rooms are normally used by our partners and other sector colleagues throughout the year but due to Covid-19 this was not possible.

• The Trust usually uses its convening power to bring together organisations and people for briefings, roundtables, learning events, cultural exchange and the spread of new practice. Examples (virtual) in the year were limited but included learning events on several of the Trust’s programmes.

• The Trust’s staff and trustees see the intellectual capital of the Trust as a resource for pursuing our mission. We therefore accept a large number of invitations to speak at or chair events in our areas of expertise. During the year these have been fewer than usual but included: social investment, ethical investment, governance, migration and refugee issues, equalities issues, strategic and family philanthropy, third sector research, criminal justice and VCS infrastructure. Senior staff also serve on a significant number of Boards and working groups relevant to our mission.

Strategic Objective 5 – Fit for Purpose Organisation

To achieve the maximum possible impact with our resource base, our governance and management need to be fit for purpose and continually improving. Our systems of all kinds must be suitable and constantly updated for the good stewardship and operational management of all our activities.

Principal Achievements :

• Moved all our Board business meetings online for the year.

• Moved our operations online with all our staff working from home for the year.

• Kept close contact with all staff and a keen eye on their wellbeing all year.

• Pivoted our activities to include a high-volume grants programme for the refugee and migrant sector for NLCF requiring rapid development of new systems and digital tools.

• Held a short daily staff meeting to keep everyone up-to-date on the Trust’s activities.

• For the most part had weekly one-to-one update meetings between the Chair and Chief Executive.

• Annual legal health check were undertaken and relevant actions taken.

• Several trustees took up training opportunities in investment management.

• Timely management accounts and quarterly reports to Board and IMC.

• All staff and trustees were appraised during the year. Staff each have clear objectives in their work plans and learning plans.

• Ensured information on the four main websites – Barrow Cadbury Trust, T2A, Connect Fund

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

and Fair By Design - was frequently updated and included Covid-19 related information.

• Calculated and published our gender and racially and ethnically minoritised groups pay gaps.

• Brought a new non-family trustee on to the board in 2020.

Salaries – Diversity comparisons As at 31 March 2021

Gender

----- Start of picture text -----
All Female Male
Number 16 10 6
Mean salary £56,996 £56,244 £58,249
Median salary £51,420 £49,706 £53,484
Gender pay gap (mean) 3.4%
Gender pay gap (median) 7.1%
----- End of picture text -----

	Female	Male
Upperquartile	50%	50%
Upper middlequartile	50%	50%
Lower middlequartile	75%	25%
Lowerquartile	75%	25%

Racially and ethnically minoritised group (REM)

----- Start of picture text -----
All REM Non-REM
Number 16 6 10
Mean salary £56,996 £47,077 £62,947
Median salary £51,420 £48,849 £55,056
BAME pay gap (mean) 25.2%
BAME pay gap (median) 11.3%
----- End of picture text -----

	BAME	Non-BAME
Upperquartile	0%	100%
Upper middlequartile	75%	25%
Lower middlequartile	25%	75%
Lowerquartile	50%	50%

As at March 31[st] 2021 our gender and racially and ethnically minoritised group pay gaps were as above. In an organisation as small as ours (16 staff) any churn in staffing can have a marked impact on results. We calculate by mean (average) and median (the middle salary if all are lined up in a row). These can differ markedly due to the distribution of seniority.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

Gender – the staffing complement is 10 women and 6 men. Our pay gap at the year end was 3.4% (mean) and 7.1% median. This means on average men were paid more than women by 3.4% (mean) and 7.1% (median). In a staff team of this size, we consider this difference marginal.

Racially and ethnically minoritised group (REM) . We ask staff to self-define. The staffing complement is 6 REM and 10 non-REM. Our pay gap at the end of the year end was 25.2% (mean) and 11.3% median. This means on average REM staff were paid 25.2% less (mean) and 11.3% less (median). This is because we have fewer REM staff on the higher salary scales.

Clearly a gap of 25.2% is more than marginal and our progression pay scales will improve this at least over the next several years (assuming a static staff complement). However, we are encouraged by the ‘direction of travel’ insofar as the REM ‘pipeline’ of middle managers will hopefully hold more senior roles in the sector in years to come.

Funder Commitment on Climate Change

The Trust is a signatory to the Funder Commitment on Climate Change, recognising that the growing climate emergency is a serious risk to the pursuit of our charitable aims.

The five commitments are to:

1. Educate and Learn

• Highlights in the year included presentations to our board from our investment manager on how our investments are used to pressure companies to align with the Paris agreement and a staff team discussion following a recording of Sir Ronnie Cohen and Dame Elizabeth Corley in dialogue about impact investing and measurement.

2. Commit Resource

• Highlights in the year centred around our investment portfolio which is invested alongside Sarasin’s Climate Active Fund and our other shareholder activism through the Charitable Responsible Investment Network and the Church Investors Group. We are members of the Investor Decarbonisation Initiative which mobilises investor support for science-based emission targets and commitments to renewable energy (RE100), energy productivity (EP100) and electric mobility (EV100).

3. Integrate (through our programmes, priorities and processes)

• Truthfully work on this has not been strong due to the many competing priorities of the COVID19 year. We will be integrating work on this into our full strategic review over the current year.

4. Steward (our investments for a post carbon future)

• This is currently the most developed area of our climate commitment and great progress has been made by the Climate Active Fund. Examples during the year include:

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

• Taking part in the shareholder resolution at HSBC which resulted in members voting to phase out coal financing by 2040 and to align its financing with the goals of the Paris Climate agreement.

• Pressuring fossil fuel firms and their auditors to ensure that the annual accounts are consistent with the Paris Climate agreement. During 2020 BP lowered its long term price assumptions resulting in decreasing valuations in its balance sheet by about $15 billion.

5. Decarbonise our Operations

• We had a full eco-audit just before the March 2020 lockdown. During the year we significantly reduced our carbon footprint by default – far less travel of all kinds, far less catering, lower use of paper and energy. What we were unable to do was direct work on our office and this will be a priority once we transition back to it.

Learning and development

The Trust aims to learn from everything it does, develop its people so they are equipped to pursue its mission and share learning in a two-way process with our funded and other partners. We are in the ever iterative process of developing a more sophisticated approach to evaluating our work and achievements and are committed to helping our partners do the same. We encourage staff to play an active role in civic life and to stretch themselves into new areas of learning.

During the year we funded or undertook a number of additional learning activities: Internal:

• Trustees and staff all learnt a lot from delivering the NLCF Covid-19 Fund programme.

• Kept trustees abreast of the work of the Trust between Board meetings through weekly email updates and early view of all publications in which the Trust is involved on the eve of publication.

• Kept trustees informed of governance and other key sector issues through a briefing by our lawyer at a board meeting and circulation of relevant publications and information.

• Ensured individual learning plans were in place for all staff.

• Gave opportunities to ‘back office’ staff to attend programme related events and meet counterparts in other trusts (virtually).

External:

• Participated in the Social Impact Investment Group of trusts and foundations.

• Brought networks of funded partners together to learn from each other on most of our programmes.

• Continued to convene learning networks across our programmes, notably T2A, Connect Fund chairing European Foundation Centre’s Diversity, Migration and Integration Group (DMIG) and contributing to Migration Exchange and EPIM.

• Hosted seminars to disseminate, promote and discuss various research publications supported with our funding.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

Financial review

The income for the group was £8,480,000 (2020 - £3,954,000). Total resources expended were £11,506,000 (2020 - £6,002,000) resulting in net outgoing resources, before gains and losses on investments, of £3,026,000 (2020 - £2,048,000). The main increase in income and expenditure was due to a restricted grant of £5,141,000 from the National Lottery Community Fund for delivering emergency grants to migration charities affected by Covid-19.

As in previous years there are net outgoing resources. This is in line with the strategic decision by the trustees to spend both capital and income in the near term. The trustees have decided to move to a more financially sustainable level of spending over the next five years, though this will be on a total return basis.

There were investment gains of £17,895,000 (2020 – losses of £2,849,000), resulting in a net increase in funds of £14,869,000 (2020 – decrease of £4,897,000). This was in keeping with market performance and our investment managers performed broadly in line with the benchmark set for them.

The total spend for the group on social justice and grant-making during the period was £11,092,000 (2020 - £5,635,000).

As the group’s funds are held as expendable endowment, the trustees do not operate a reserves policy, but manage the balance between short and long term financial objectives through their grant making and investment policies. Designated funds represent funds committed to social investments and amounts set aside for particular activities (see note 18). There are some restricted funds which we have received from other organisations for specific pieces of work.

Investment policy and performance

The investments of the Trust and Fund have been managed since 2008 by Sarasin & Partners in accordance with the terms and conditions of a formal asset management agreement. This is overseen by the Investment Management Committee, a sub-group of the Trustee Board, which also has two appropriately skilled external co-opted members and the Trust’s Chief Executive. In January 2021 Anna Southall stepped down as Chair and Harry Serle was appointed as the new Chair. Anna has served as Chair of the committee for ten years and she was warmly thanked by the Board for this service. The committee meets quarterly to monitor investment and social investment performance and has oversight of the Connect Fund.

During 2020-21, Sarasin & Partners achieved a total return (i.e. both investment income and capital growth/loss) of 25.8% on the investment portfolio. This strong performance should be seen in the context of sharp falls in investment markets in February and March 2020, i.e. the two months immediately preceding this period. The Trust increased the cash deposits to £10 million, equivalent to more than three years expenditure out of capital, and will use this money, or add to it, as the situation dictates.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

In order to ameliorate the risk of currency fluctuations there are forward currency transactions so that the total exposure to foreign currency is about 40% of the total value of the investment portfolio.

The main purpose of the investments is to provide a financial return to fund the activities of the Trust. This is balanced with the need to protect and enhance the value of the Trust while taking a responsible and ethical approach to investing.

The three objectives are:

• To achieve a total financial return which matches or exceeds its benchmarks.

• To take a responsible and ethical approach to investing, considering environmental, social and governance issues.

• To develop the social investment market.

The Trust and Fund avoid investments in companies which are associated with human rights violations or engage in activities that cause social harm. Specifically, the Trust and Fund avoid investments in companies which are materially involved in the production or sale of armaments, tobacco, alcohol, gambling, or pornography. The Trust and Fund will not hold any government bonds in countries with high military expenditure.

The Trust also aims to actively engage with the investee companies, both directly and through its investment managers, to try and improve company practice. We recognise that working with other investors will increase the impact of such engagement and are an active member of the Charity Responsible Investment Network, facilitated by Share Action, and the Church Investors Group.

The Trust is aware of the significant negative impacts of climate change and the need to take action with regard to fossil fuel company investments. The Trust will:

• Engage more intensively with investee companies that make a significant contribution to greenhouse gas emissions, whether producers or users, to encourage them to move to a low carbon economy. Where it is considered that the companies are not taking seriously their responsibilities to move to a low carbon economy then the Trust will divest.

• Engage more intensively with public policy makers with the aim of creating a structural and regulatory environment that supports the transition to a low carbon economy.

• Seek to make investments which have a positive environmental impact, subject to the availability and suitability of such investments.

The investment portfolio is aligned with Sarasin & Partners’ Climate Active Fund which has resulted in divesting from several fossil fuel companies and actively engaging with others.

The Investment Management Committee reviews the investments regularly to ensure that the ethical criteria are adhered to and reports to the Board quarterly.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

Social Investment

Since 2010 we have used part of the endowment to invest in programme related investments in charities and social enterprises, aiming to achieve both a social impact and a financial return with the funds.

We committed £1,100,000 to four new investments during 2020-21 with the aim of building a varied portfolio which will both further our programme aims and develop the social investment market. Not all these investments had been made at the year end. In each case, systems are in place for capturing social impact. We also worked with co-investors to support existing investees who were adversely affected by the Covid-19 crisis, including extending lengths of loans and postponing interest payments.

Staff and trustees of the Trust were involved on the Boards of four of the social investments (see note 27 of the accounts) and play an active role in social investment development, including:

• Regular attendance at the Social Impact Investors Group, speaking at events and participation on its steering group.

• Speaking at ACF events on social investment.

• Meetings with other Trusts and Foundations to discuss social investment.

• Running the Connect Fund.

• Membership of the Advisory Boards of Big Society Capital and the Impact Investing Institute.

Current investments are as follows:

----- Start of picture text -----
Programme related investment Current Actual investment
investment (at cost) at
commitment 31 March 2021
£ £
Social Justice & Human Rights Centre Ltd 500,000 500,000
Ethex 40,000 40,000
Bristol Together 145,000 145,000
Big Issue Invest Social Enterprise Investment Fund 52,041 52,041
Social Venture Fund 224,266 211,547
Fair For You 250,000 250,000
Charity Bank 750,000 750,000
Street UK 67,227 67,227
Community Channel 50,000 50,000
Thrive Renewables 100,000 100,000
Ashley Community Housing 200,000 200,000
Fair By Design Venture Fund 250,000 112,977
Five Lamps Trading 250,000 250,000
Social and Sustainable Housing Fund 250,000 84,168
----- End of picture text -----

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

----- Start of picture text -----
Micro Rainbow 250,000 -
EdAid Foundation 50,000 -
Resonance Sheltered Housing Fund 250,000 37,500
Triodos 250,000 250,000
RefuAid 100,000 100,000
Women in Safe Homes 250,000 42,500
Resilience and Recovery Loan Fund 500,000 -
Total 4,778,534 3,242,960
Less: Provisions for impairments (215,925)
Balance per accounts 3,027,035
----- End of picture text -----

The Connect Fund

The Trust runs the Connect Fund with resources from the Access Foundation. This is a £6 million fund for grants and occasionally social investment to build better infrastructure for the social investment landscape in England, particularly for new entrants and markets. The Board delegates the grant making of the fund to the Investment Management Committee.

This year was the fourth of a six year agreement. During the year we renegotiated the Fund’s priorities with Access in the light both of Covid-19 and of Access’ own strategy. The funded organisations continued to be supported by our team during this difficult year and to participate in the ongoing ‘learning community’.

Areas of work centre around three strands Flexible Finance, Business Development and Equality and Diversity. Additionally, we took on the management of up to £2 million of additional dormant assets funding to shore up social investment intermediaries.

Key achievements in the year:

• Reviewed the financial security of existing grantees to identify any that may need emergency support.

• Launched a business development strand to fund innovative responses as organisations looked to adapt their business models.

• Made significant progress on equality and diversity issues particularly through the Diversity Forum, Black South West Network and the LGBT Consortium.

• Assisted Access with the development of their Flexible Finance strand by convening roundtables from potential stakeholder pools.

• Reflected and responded to capacity strains being experienced in the market.

• Commissioned a formative evaluation with a particular brief to help us contribute effectively to Access’ legacy.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

Plans for future periods

The coming year will see the implementation of the final year of the Strategic Framework 2016-22. An Operational Plan for the year 2021-22 is in place, the outline objectives of which are shown below against the Trust’s five Strategic Objectives.

Strategic Objective 1: Criminal Justice

In 2021-22 we will:

• Develop and promote evidence of effective policy and practice for young adults at all stages of the criminal justice system.

• Support initiatives that focus on gender and race equality within the criminal justice context, primarily through the T2A element of the programme.

• Amplify the voices of those within the criminal justice system who are less frequently heard, and to highlight parts of the system that are infrequently scrutinised.

• Help create conditions for change in Birmingham and the surrounding area by ensuring the voices of those with experience of the criminal justice system are heard, supporting leaders, sharing learning and convening meeting.

Strategic Objective 2: Migration

In 2021-22 we will:

• Promote greater understanding within communities and the fair and dignified treatment of refugees, asylum seekers and migrants.

• Broaden and deepen the public debate on migration and integration and ensure that it draws on shared values as well as evidence.

• Inform public policy and promote workable policies in relation to immigration and integration

Strategic Objective 3: Economic Justice

In 2021-22 we will:

• Continue Community Wealth Building/inclusive economies approaches at the Birmingham and national level.

• Strengthen intersectional work on financial exclusion and gender/race/disability.

• Ensure the voices of those at the sharp end are heard, including those affected by the fallout from COVID-19 and the intersectional issues identified above.

• Assist best practice in anti-poverty work, financial assistance, COVID responses etc is shared between local authorities.

Strategic Objective 3: Economic Justice: Fair By Design

In 2021-22 we will

• Influence regulators and the Competition and Markets Authority (CMA) so that they recognise and mitigate the impact of the poverty premium.

• Influence social policy makers so that they (1) recognise and (2) mitigate the impact of the poverty premium.

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

• Work with the Fair by Design Fund to increase the number of businesses that create products and services that are more affordable and better meet the needs of poor and low-income consumers.

• Launch our insurance project with the Institute and Faculty of Actuaries, articulating the key problems experienced by lowincome consumers and their causes, alongside an engagement programme to help secure change.

• Further promote our protected characteristics research, linking this to regulators’ public sector equality duties, and work to ensure regulators consider low income as part of their equalities work. We will explore the role of the Equality and Human Rights Commission here.

• Work with partners and HM Treasury to roll out the No Interest Loans Scheme pilot.

Cross Cutting Themes and Promoting Philanthropy

In 2021-22 we will:

• Continue to support key infrastructure organisations both at programme and cross-cutting levels.

• Address disadvantage due to gender, race and ethnicity.

• Promoting philanthropy/social investment.

• Develop relationships with key stakeholders in Birmingham (both general and programme-specific).

• Develop coherent portfolios of local work in each of the three Trust-funded programmes.

Strategic Objective 4: Using all our assets

In 2021-22 we will:

• Fund the work of the Trust in the current and long term.

• Use the premises, convening power and intellectual capital of the Trust to advance our vision and mission.

• Develop the social investment market.

• Further develop our responsible investment particularly through by being active shareholders.

Strategic Objective 5: Fit for purpose organisation In 2021-22 we will:

• Ensure a safe and smooth transition back to the office and explore future working arrangements of the staff team.

• Work on the journey to achieve financial sustainability.

• Ensure that the new Chair of IMC is fully supported.

• Explore opportunities to increase the diversity, particularly racial, of the board.

• Through performance appraisal, objective setting and regular supervision, ensure each member of the staff delivers their workload to a high standard through the year.

• Maintain robust relations with our investment managers.

• If physically possible, hold the two planned but delayed Centenary events.

• Continue to improve our understanding and application of our equity (equality) values throughout our work.

• Learn how (better) to ‘climate lens’ our work.

25

The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

• Explore technological and other means to improve our efficiency (e.g. DocuSign, and conferencing tools).

Investment

In 2021-22 we will:

• Ensure the management of the investment portfolio is of a high standard and produces the required returns.

• Through negative screening and discussions with the investment manager ensure investments held do not contravene the Trust’s ethical policy.

• Actively engage with investee companies through our networks and through our investment manager.

• Take a responsible approach to investing, considering environmental, social and governance issues.

Social Investment

In 2021-22 we will:

• Continue to support existing social investees which have been adversely affected by the COVID19 crisis, including being flexible on repayments.

• Engage with other social investors to share learning and encourage greater development of the market.

• Investigate further investments in new and innovative products which support the development of the social investment market, including new models of working and providing risk capital which is otherwise hard to raise.

The Connect Fund

In 2021-22 we will:

• Finalise and begin to deliver on the evaluation plan for the second phase of Connect Fund, with a focus on the impact legacy of the Fund.

• Continue to promote and support improved diversity, equality and inclusion across the social enterprise and investment sectors, with an emphasis on embedding this as a priority for the sector now and post-Connect Fund.

• Identify emerging trends and challenges in the social investment sector to ensure the Connect Fund can provide effective support to infrastructure, enabling it to respond to the changing business support needs of front-line charities and social enterprises.

• Continue to work closely with Access and support work across its other programmes, specifically Flexible Finance and the Local Access Programme.

Strengthening civil society

We aim to strengthen the capacity of our funded partners where we can and will continue to use our convening power and act as an ‘honest broker’ in the sector. We will continue our dialogue with key infrastructure organisations in order both to learn from them and to support them as they develop their strategic thinking. Specifically, we will work with others to improve equalities leadership

26

The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

development and succession in the sector and to protect the independent advocacy voice of civil society.

Cross-cutting work and Promoting philanthropy

Because our programmes have a considerable degree of focus, we sometimes want to fund other things which we see as core to our vision and mission. For this reason we will continue to set aside some budget for crosscutting work which we see as essential. This includes work on equalities, infrastructure and leadership initiatives. Similarly, as a family foundation we set aside a modest budget to support philanthropic development and improvement.

Funders’ infrastructure

Working collaboratively with other trusts and foundations enables us to represent our views on charity law and philanthropy to government as well as to learn from others and improve our practice. To these ends we will be active members of the Association of Charitable Foundations, the European Foundation Centre, the European Venture Philanthropy Association and Ariadne global human rights funders network in the year ahead.

Statement of Trustees’ responsibilities

The trustees (who are also directors of The Barrow Cadbury Trust for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which 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 the 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 judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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

In so far as the trustees are aware:

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The Barrow Cadbury Trust (a company limited by guarantee) Trustees’ report for the year ended 31 March 2021

• there is no relevant audit information of which the charitable company’s auditor is unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The trustees’ report has been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime.

Approved by the trustees and signed on their behalf by:

Erica Cadbury Chair of Trustee Board 10 July 2021

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The Barrow Cadbury Trust (a company limited by guarantee)

Independent Auditor’s report for the year ended 31 March 2021

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BARROW CADBURY TRUST

Opinion

We have audited the financial statements of The Barrow Cadbury Trust (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and 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 Financial Reporting Standard 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 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended

• Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

• Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group 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 Barrow Cadbury Trust'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.

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The Barrow Cadbury Trust (a company limited by guarantee)

Independent Auditor’s report for the year ended 31 March 2021

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s 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.

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 for the financial year for which the financial statements are prepared is consistent with the financial statements

• The trustees’ annual report has 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 trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 require us to report to you if, in our opinion:

• Adequate 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; or

• The trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes

30

The Barrow Cadbury Trust (a company limited by guarantee)

Independent Auditor’s report for the year ended 31 March 2021

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

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• We enquired of management, internal audit and the audit and risk committee, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:

• Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;

• Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;

• The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

• We inspected the minutes of meetings of those charged with governance.

• We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.

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The Barrow Cadbury Trust (a company limited by guarantee)

Independent Auditor’s report for the year ended 31 March 2021

• We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.

• We reviewed any reports made to regulators.

• We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.

• We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

• In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 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 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.

Jonathan Orchard (Senior statutory auditor) Date

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

32

The Barrow Cadbury Trust (a company limited by guarantee) Consolidated statement of financial activities for the year ended 31 March 2021 (incorporating an income and expenditure account)

Unrestricted Note £’000 Income from: Charitable activities 2 - Investments 3 1,886 Total income 1,886 Expenditure on: Raising funds Investment management costs 414 Charitable activities Social justice and grant making 6 Criminal justice 1,259 Migration 1,492 Economic Justice 1,179 Philanthropy, crosscutting & other Connect Fund Fair By Design 483 107 194 Voluntary sector use of premises 70 4,784 Total resources expended 5,198 Net income/(expenditure) before gains & losses on investments (3,312) Net gains/(losses) on investments 17,895 Net movement in funds 14,583 Fund balances brought forward 81,495 Fund balances carried forward 96,078	2021 Restricted £’000 6,594 - 6,594 - 42 5,141 - 115 788 222 - 6,308 6,308 286 - 286 635 921	Total Unrestricted £’000 £’000 6,594 - 1,886 2,477 8,480 2,477 414 367 1,301 1,275 6,633 1,280 1,179 949 598 895 416 632 189 177 70 85 11,092 4,587 11,506 4,954 (3,026) (2,477) 17,895 (2,849) 14,869 (5,326) 82,130 86,821 96,999 81,495	2020 Restricted £’000 1,477 - 1,477 - 73 - - 64 671 240 - 1,048 1,048 429 - 429 206 635	Total £’000 1,477 2,477
				3,954
				367
				1,348 1,280 949 696 860 417 85
				5,635
				6,002
				(2,048) (2,849)
				(4,897)
				87,027 82,130

All the above results are derived from continuing activities.

All recognised gains and losses in the current and prior year are included in the statement of financial activities.

33

The Barrow Cadbury Trust (a company limited by guarantee) Company number: 5836950 Balance sheets at 31 March 2021

Notes Fixed Assets Tangible assets 11 Investments 12 Programme related investments 13 Current assets Debtors due within one year 14 Short term deposits Cash at bank and in hand Liabilities Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Total net assets The funds of the charity 17 Unrestricted funds Expendable endowment funds Investment revaluation reserve Designated funds 18 Restricted funds 19 Funds retained within a non-charity subsidiary (The Barrow Cadbury Fund) 26 Profit and loss account Designated Funds Restricted Funds 18 19 Investment revaluation reserve Total charity funds 20	Group 2021 2020 £’000 £’000 14 24 92,837 77,697 3,027 2,188 95,878 79,909 692 445 2,232 3,489 3,994 3,096 6,918 7,030 (4,253) (3,684) 2,665 3,346 98,543 83,255 (1,544) (1,125) 96,999 82,130 61,215 59,839 16,258 6,980 5,432 3,877 82,905 70,696 921 595 10,401 9,718 30 - 40 40 2,742 1,041 96,999 82,130	Charity 2021 2020 £’000 £’000 14 24 79,657 66,677 3,027 2,188 82,698 68,889 720 460 2,232 3,489 3,877 3,019 6,829 6,968 (4,170) (3,509) 2,659 3,459 85,357 72,348 (1,531) (1,057) 83,826 71,291 61,215 59,839 16,258 6,980 5,432 3,877 82,905 70,696 921 595 - - - - - - - - 83,826 71,291	Charity 2021 2020 £’000 £’000 14 24 79,657 66,677 3,027 2,188 82,698 68,889 720 460 2,232 3,489 3,877 3,019 6,829 6,968 (4,170) (3,509) 2,659 3,459 85,357 72,348 (1,531) (1,057) 83,826 71,291 61,215 59,839 16,258 6,980 5,432 3,877 82,905 70,696 921 595 - - - - - - - - 83,826 71,291
			68,889
			460 3,489 3,019
			6,968 (3,509)
			3,459
			72,348 (1,057)
			71,291
			59,839 6,980 3,877
			70,696 595 - - - -
			71,291

The financial statements were approved by the trustees on 10 July 2021 and signed on their behalf by:

Erica Cadbury Chair

34

The Barrow Cadbury Trust (a company limited by guarantee) Consolidated statement of cash flows For the year ended 31 March 2021

Note Cash flows from operating activities Net cash used in operating activities 21 Cash flows from investing activities Investment income Social investment income Proceeds from sale of investments Purchase of investments Foreign exchange proceeds/(payments) (Increase)/decrease in cash held by investment manager Proceeds from sale/redemption of social investments Purchase of social investments Net cash provided by investment activities Change in cash and cash equivalents in the year Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 22	2021 £’000 £’000 (4,115) 1,842 44 30,210 (26,116) 1,543 (2,882) 114 (999) 3,756 (359) 6,585 6,226	2020 £’000 £’000 (4,370) 2,329 148 31,590 (26,264) (1,703) 103 175 (212) 6,166 4,789 6,585	2020 £’000 £’000 (4,370) 2,329 148 31,590 (26,264) (1,703) 103 175 (212) 6,166 4,789 6,585
			4,789
			6,585

35

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

1. Accounting policies

• (a) The Barrow Cadbury Trust is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address is Kean House, 6 Kean Street, London WC2B 4AS.

• (b) Basis of preparation

The 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 UK 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.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

• (c) Basis of preparation - group accounts

These financial statements consolidate the results of the charitable company and its wholly owned subsidiary The Barrow Cadbury Fund Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

• (d) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

• (e) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

• (f) Income - general recognition criteria

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Dividends are recognised when they are declared.

Grant income: Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

36

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

• (g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the restricted fund.

• Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. These include expendable endowment funds which comprise the Trust’s capital fund, the income from which, together with capital sums approved by the trustees, may be applied for any purpose within the charity’s objects. The Investment Revaluation Reserve is the difference between the historic cost and the year end valuation of the investment portfolio.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

• (h) Expenditure and irrecoverable VAT

• Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: Costs of raising funds includes the fees paid to investment managers in connection with the management of the charity’s listed investments.

Expenditure on charitable activities includes the costs of grants and other activities undertaken to further the purposes of the charity and their associated support costs.

Gifts in kind (use of premises) represents the use of the office by external organisations, both working space and use of meeting rooms. The monetary value of these donated services is, for the meeting rooms, based on the usage and meeting room area are as a proportion of the office area and costs, and for the office use on the head count of external organisations as a proportion of the total office head count and costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

• (i) Allocation of support costs

Where costs, including programme staff costs, relate directly to a particular programme then they are allocated to that programme.

Support costs, comprising the staff and overhead costs of the central function, are apportioned to the main programmes based on the time spent by employees in processing and monitoring grants and other programme work.

Governance costs include costs relating to the public accountability of the charity and its compliance with regulation and good practice. These are allocated to the programmes in the same proportions as the support costs.

• (j) Grants payable

Grants payable are charged to the statement of financial activities in the year in which the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the relevant conditions are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

37

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

• (k) Operating leases

Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial activities on a straight line basis over the minimum lease term.

• (l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Leasehold improvements Over life of lease Fixtures and fittings 3 years IT and communications equipment 3 years

• (m) Listed 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 the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as an investment revaluation reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

• (n) Programme related investments

Programme related investments are valued at fair value, if such a value can be measured reliably, or at cost less any impairment or capital repayments.

• (o) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

• (p) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(q) Short term deposits

Short term deposits include cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

38

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

• (r) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. The charity only has 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.

• (s) Pensions: defined contribution

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

• (t) Foreign currency translations

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the average rate of exchange for the year. Exchange differences are taken into account in arriving at the net incoming resources for the year.

2. Charitable Activities

Charitable activities represent grants and donations from other charitable foundations for specific activities. More detail is included in note 19.

3. Investment income and interest receivable

All income listed is unrestricted, for both 2020 and 2021.

Income from listed investments Interest receivable Income from social investments Total	2021 £ ‘000 1,791 51 44 1,886	2020 £ ‘000 2,299 30 148 2,477

39

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

4. Net outgoing resources for the year

Net outgoing resources for the year is stated after charging:

et outgoing resources for the year Net outgoing resources for the year is stated after charging:
	2021	2020
	£ ‘000	£ ‘000
Auditor’s remuneration (excluding VAT)
Group – for audit	14	14
(of which the charity amounts to)	10	10
Group – for other services	2	1
Depreciation of tangible fixed assets	10	10
Rentals payable under operating leases	179	179
Trustee professional indemnity insurance	1	1
Trustee meeting and travelling expenses and learning and development	1	20

5. Grants awarded by the group

The number of grants approved during the year were as follows:

Programme Criminal justice Migration Economic Justice Connect Fund Fair By Design Philanthropy, Cross-Cutting & other Total	2021 Number 20 223 21 13 1 13 291	2020 Number
		25 24 22 24 2 10 107

All of the grants made by the Trust were for institutions, none were for individuals. Further details about the individual programmes are included in the Trustees’ report and on the Trust’s website www.barrowcadbury.org.uk.

40

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

6. Social justice and grant making

2021

021
Direct costs Projects, campaigns & partnerships Direct staff and property costs Support costs Management & administrative staff Property Governance Other support costs Total 2021	Criminal Justice Migration Economic Justice Philanthropy & other Connect Fund Fair By Design Campaign Voluntary sector use of premises Total 2021 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 1,084 6,224 1,046 415 679 20 - 9,468 105 280 90 88 109 202 70 944
	1,189 6,504 1,136 503 788 222 70 10,412 62 71 24 52 61 110 - 380 30 34 11 25 29 52 - 181 7 9 3 7 7 13 - 46 13 15 5 11 10 19 - 73
	1,301 6,633 1,179 598 895 416 70 11,092

41

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

2020 Comparative	figures
	Criminal	Migration	Economic	Philanthropy	Connect	Fair By	Voluntary	Total
	Justice		Justice	& other	Fund	Design	sector	2020
						Campaign	use of
							premises
	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Direct costs
Projects, campaigns &	1,109	1,034	806	483	483	12	-	3,927
partnerships
Direct staff and	126	122	86	116	189	227	73	939
property costs
	1,235	1,156	892	599	672	239	73	4,866
Support costs
Management &	57	63	29	50	98	91	6	394
administrative staff
Property	30	32	15	25	49	47	3	201
Governance	10	11	5	8	15	15	1	65
Other support costs	16	18	8	14	26	25	2	109
Total 2020	1,348	1,280	949	696	860	417	85	5,635

42

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

7. Governance costs

For the group Staff costs Auditor’s remuneration Trustee meeting and travelling expenses and learning and development Trustee training Legal and professional costs Total	2021 £ ‘000 23 17 1 - 5 46	2020 £ ‘000 26 16 20 1 2 65

8. Staff numbers and costs

Staff costs during the year were:

Wages and salaries Social security costs Employer’s contribution to defined contribution pension scheme Total	2021 £ ‘000 765 82 208 1,055	2020 £ ‘000 814 88 177 1,079

The average number of employees (head count based on number of staff employed) during the year was:

Social justice and grant making Support Governance Total	2021 No. 12.5 3.5 0.2 16.2	2020 No. 13.9 3.3 0.2 17.4

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

		2021	2020
		No.	No.
£60,000	- £69,999	1	1
£70,000	- £79,999	-	1
£90,000	- £99,999	1	1

The total employee benefits including pension contributions and employer national insurance contributions of the key management personnel amounted to £347,619 (2020: £341,922).

43

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

Key management personnel received the following salaries, pension contributions and NI contributions.

For 2021 Role Chief Executive Director of Programmes Director of Finance and Administration TOTAL Comparative figures for 2020 Role Chief Executive Head of Programmes Head of Finance and Administration TOTAL		Salary Employer pension contribution Employer NI contribution £ £ £ 96,412 36,154 12,092 43,520 52,223 4,794 68,123 26,112 8,189 208,055 114,489 25,075 Salary Employer pension contribution Employer NI contribution £ £ £ 97,905 29,394 12,230 59,795 33,613 7,061 71,877 21,229 8,728 229,577 84,236 28,109

The Barrow Cadbury Trust operates a salary sacrifice scheme for pension contributions, where the staff member may forego part of their salary in return for the Trust making an equivalent pension contribution. The above figures show the salaries and pension contributions after the salary sacrifice.

9. Trustee remuneration and costs

None of the trustees received any remuneration for their services during the year (2020 - nil). During the year travel and other expenses amounting to £1,199 (2020 - £10,525) were reimbursed to, or paid on behalf of, three trustees (2020 – nine).

10. Taxation

Barrow Cadbury Trust is a registered charity and therefore is not liable to corporation tax on income derived from its charitable activities as it falls within the various exemptions available to registered charities. Its subsidiary donates surpluses and gains that would otherwise be taxable to the Trust.

44

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

11. Tangible fixed assets

For charity and group Cost At 1 April 2020 and at 31 March 2021 Depreciation At 1 April 2020 Charge for year At 31 March 2021 Net book values At 31 March 2021 At 31 March 2020	Leasehold improvements £’000 83 62 8 70 13 21	Fixtures, fittings & equipment £’000 34 31 2 33 1 3	Computer equipment £’000 11 11 - 11 - -	Total £’000 128
				104 10
				114
				14 24

All the above assets are used for charitable purposes.

12. Investments

Group 2021 2020 £’000 £’000 Investments at market value Market value at 1 April 2020 74,716 81,188 Additions at cost 26,116 26,264 Disposal proceeds (30,210) (31,590) Investment gains/(losses) 16,352 (1,146) Market value at 31 March 2021 86,974 74,716 Cash held by investment managers 5,863 2,981 92,837 77,697 Historic cost of investments 73,837 69,676 Reconciliation of investment gains with Statement of Financial Activities Investment gains/(losses) 16,352 (1,146) Foreign exchange gains/(losses) 1,543 (1,703) Net gains/(losses) on investments 17,895 (2,849)	Charity 2021 2020 £’000 £’000 64,207 70,100 22,684 23,335 (26,418) (28,276) 13,955 (952) 74,428 64,207 5,229 2,470 79,657 66,677 63,399 59,696 13,955 (952) 1,310 (1,468) 15,265 (2,420)	Charity 2021 2020 £’000 £’000 64,207 70,100 22,684 23,335 (26,418) (28,276) 13,955 (952) 74,428 64,207 5,229 2,470 79,657 66,677 63,399 59,696 13,955 (952) 1,310 (1,468) 15,265 (2,420)
		64,207 2,470
		66,677
		59,696
		(952) (1,468) (2,420)

45

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

Investments comprise the following: Fixed interest UK equities Global equities Property Alternative assets Forward exchange contracts Liquid assets	Group 2021 2020 £’000 £’000 10,526 10,880 17,460 13,111 48,480 39,153 3,091 3,579 7,440 7,687 (23) 306 5,863 2,981 92,837 77,697	Charity 2020 2020 £’000 £’000 9,006 9,322 14,920 11,248 41,497 33,597 2,628 3,170 6,397 6,611 (20) 259 5,229 2,470 79,657 66,677	Charity 2020 2020 £’000 £’000 9,006 9,322 14,920 11,248 41,497 33,597 2,628 3,170 6,397 6,611 (20) 259 5,229 2,470 79,657 66,677
			66,677

Included in the investment valuation are forward exchange contracts entered into to ameliorate the risk of any currency fluctuations.

13. Programme related investments

Investments at cost Cost less impairments at 1 April 2020 Additions at cost Losses and impairments Disposals and repayments Cost less impairments at 31 March 2021 Investments comprise the following: Equities Debt Limited partnership Total	Group 2021 2020 £’000 £’000 2,188 2,262 999 212 (46) (111) (114) (175) 3,027 2,188 1,209 712 1,277 970 541 506 3,027 2,188	Charity 2021 2020 £’000 £’000 2,188 2,207 999 212 (46) (111) (114) (120) 3,027 2,188 1,209 712 1,277 970 541 506 3,027 2,188	Charity 2021 2020 £’000 £’000 2,188 2,207 999 212 (46) (111) (114) (120) 3,027 2,188 1,209 712 1,277 970 541 506 3,027 2,188
			2,188
			712 970 506 2,188

At 31 March 2021 the trustees had further commitments to specific programme related investments of £1,535,574 (2020 - £869,840). These are treated as designated funds.

The programme related investments include a £500,000 investment in Charity Bank which is included within restricted funds.

The programme related investments are listed in the annual report attached to these accounts, including the commitments made but not yet invested.

46

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

14. Debtors

Due within one year Dividends and interest receivable Prepayments and amounts receivable Amount due from the Barrow Cadbury Fund Other debtors	Group 2021 2020 £’000 £’000 176 215 516 225 - - - 5 692 445	Charity 2021 2020 £’000 £’000 166 201 516 225 38 29 - 5 720 460

15. Creditors: amounts falling due within one year

Group 2021 2020 £’000 £’000 Trade creditors 11 10 Grants payable 3,914 3,463 Social security and other taxes 24 23 Accruals 214 184 Deferred income 87 - Other creditors 3 4 4,253 3,684 editors: amounts falling due after more than one year Group 2021 2020 £’000 £’000 Grants payable between 1 and 2 years 1,228 858 Grants payable between 2 and 5 years 316 267 Grants payable 1,544 1,125	Charity 2021 2020 £’000 £’000 11 10 3,852 3,308 24 23 193 164 87 - 3 4 4,170 3,509 Charity 2021 2020 £’000 £’000 1,215 803 316 254 1,531 1,057

16. Creditors: amounts falling due after more than one year

47

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

17. Analysis of charitable funds

Analysis of charitable funds
Unrestricted funds Expendable endowment funds Investment revaluation reserve Designated funds Restricted funds Total funds of the parent charity Funds retained within a non-charity subsidiary (The Barrow Cadbury Fund) Profit & Loss account Designated funds Investment revaluation reserve Restricted funds Total funds of the group Analysis of charitable funds for prior year Unrestricted funds Expendable endowment funds Investment revaluation reserve Designated funds Restricted funds Total funds of the parent charity Funds retained within a non-charity subsidiary (The Barrow Cadbury Fund) Profit & Loss account Designated funds Investment revaluation reserve Restricted funds Total funds of the group	At 1 April 2020 Net expenditure, gains, losses & transfers At 31 March 2021 £’000 £’000 £’000 59,839 1,876 61,715 6,980 9,278 16,258 3,877 1,055 4,932 595 326 921 71,291 12,535 83,826 9,718 683 10,401 40 (10) 30 1,041 40 1,701 (40) 2,742 - 82,130 14,869 96,999 At 1 April 2019 Net expenditure, gains, losses & transfers At 31 March 2020 £’000 £’000 £’000 60,101 (262) 59,839 11,457 (4,477) 6,980 3,765 112 3,877 171 424 595 75,494 (4,203) 71,291 9,629 89 9,718 115 (75) 40 1,754 35 (713) 5 1,041 40 87,027 (4,897) 82,130
		71,291 9,718 40 1,041 40 82,130

The Trust’s capital fund was originally settled as expendable endowment. The trustees can apply both income and capital for any purpose within the charity’s objects.

Restricted funds represent amounts received from other organisations for specific projects. These are detailed in note 19.

48

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

18. Designated Funds

Designated Funds represent funds which the trustees have agreed to invest in programme related investments, including amounts committed but not yet invested (see note 13), and funds which have been allocated to specific programme work.

Designated Funds Parent company Invested in programme related investments Outstanding commitments to programme related investments Funds allocated to specific programme work Subsidiary company Funds allocated to specific programme work Total	2021 £’000 2,527 1,536 869 30 4,962	2020 £’000 2,188 870 819 40 3,917

19. Restricted Funds

Restricted Funds represent amounts received from other organisations for specific projects. These are:

Restricted Funds Migration Exchange Funders for Race Equality The St Sarkis Charity Trust Connect Fund Connect Fund (held in subsidiary) Fair By Design NLCF Covid-19 Support Fund Robin Corbett Award Other Total	At 1 April 2020 £’000 39 - - 393 40 154 - - 9 635	Incoming resources £’000 - 185 32 893 - 333 5,141 10 - 6,594	Outgoing resources £’000 - (115) (32) (748) (40) (222) (5,141) (10) - (6,308)	At 31 March 2021 £’000 39 70 - 538 - 265 - - 9 921

Comparative figures for 2020

Restricted Funds Migration Exchange Funders for Race Equality The St Sarkis Charity Trust Connect Fund Connect Fund (held in subsidiary) Fair By Design Other Total	At 1 April 2019 £’000 39 24 - 39 35 60 9 206	Incoming resources £’000 - 40 73 975 55 334 - 1,477	Outgoing resources £’000 - (64) (73) (621) (50) (240) - (1,048)	At 31 March 2020 £’000 39 - - 393 40 154 9 635

49

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

Purpose of restricted funds

----- Start of picture text -----
Migration Exchange The Migration Exchange programme aims to encourage debate on
national identity, integration and identity.
Funders for Race The programme aims to increase race equality. External funders
Equality which contributed to the programme during the year include:
£
Barings Foundation 20,000
Clothworkers’ Foundation 12,000
Comic Relief 30,000
Esmée Fairbairn Foundation 20,000
Goldsmiths’ Company Charity 5,000
Indigo Trust 500
Joseph Rowntree Charitable Trust 10,000
Lloyds Bank Foundation 20,000
National Lottery Community Fund 40,000
Paul Hamlyn Foundation 15,000
Trust for London 12,000
Total 184,500
In addition the Barrow Cadbury Trust is contributing £20,000
towards the current phase of the programme.
The St Sarkis Charity The St Sarkis Charity Trust co-funded two criminal justice projects
Trust through the Barrow Cadbury Trust.
Connect Fund The Connect Fund, funded by the Access Foundation, has been set
up to strengthen the social investment market to better meet the
needs of charities and social enterprises. Funds received during
the year included £500,000 for an investment in Charity Bank. The
investment was made in March 2021 and is included in the
balance sheet under Programme related investments and within
the closing balance of restricted funds.
NLCF Covid-19 Support The Barrow Cadbury Trust partnered with the National Lottery
Fund Community Fund (NLCF) to distribute emergency grant funding to
the migration charity sector in England in response to Covid-19.
Robin Corbett Award The Barrow Cadbury Trust manages the Award, given to a start-up
criminal justice charity.
----- End of picture text -----

50

The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

----- Start of picture text -----
Fair By Design Fair By Design works with companies, regulators, policy makers
and the public to end the poverty premium.
External funders for the first three years (2018-21) of the
programme include:
Total grant Recognised
in 2020/21
£ £
Comic Relief 200,000 66,668
Joseph Rowntree Foundation 150,000 50,000
National Lottery Community Fund 200,000 66,000
Tudor Trust 150,000 -
Trust For London 150,000 -
Total 182,668
External funders have agreed the following grants for 2021-24:
Total grant Recognised
in 2020/21
£ £
Tudor Trust 150,000 150,000
-
Joseph Rowntree Foundation 150,000
Friends Provident Foundation 60,000 -
Oak Foundation 200,001 -
Total 150,000
In addition the Barrow Cadbury Trust committed £100,000 for
2018-2021 and a further £150,000 for 2021-24.
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20. Analysis of net assets between funds

Fund balances at 31 March 2021 are represented by:

Fund balances at	31 March 2021 are represented by:
Tangible assets Investments Programme related investments Current assets Current liabilities Creditors greater than one year Net assets	Unrestricted funds Restricted funds Endowment Investment revaluation reserve Designated Within subsidiary Parent company Within subsidiary Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 14 - - - - - 14 60,993 16,258 2,405 13,181 - - 92,837 - - 2,527 - 500 - 3,027 6,370 - - 127 421 - 6,918 (4,131) - - (122) - - (4,253) (1,531) - - (13) - - (1,544)
	61,715 16,258 4,932 13,173 921 - 96,999

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The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

Fund balances at 31 March 2020 were represented by:

Tangible assets Investments Programme related investments Current assets Current liabilities Creditors greater than one year Net assets	Unrestricted funds Restricted funds Endowment Investment revaluation reserve Designated Within subsidiary Parent company Within subsidiary Total £’000 £’000 £’000 £’000 £’000 £’000 £’000 24 - - - - - 24 58,008 6,980 1,689 11,020 - - 77,697 - - 2,188 - - - 2,188 6,345 - - 50 595 40 7,030 (3,481) - - (203) - - (3,684) (1,057) - - (68) - - (1,125)
	59,839 6,980 3,877 10,799 595 40 82,130

21. Reconciliation of net income /(expenditure) to net cash flow from operating activities

Net income/(expenditure)for the year (as per the statement of financial activities) Depreciation charges (Gains)/losses on investments Dividends & interest from investments Losses on social investments Dividends & interest from social investments (Increase)/decrease in debtors (Increase)/decrease in creditors Net cash used in operating activities	2021 £’000 14,869 10 (17,895) (1,842) 46 (44) (247) 988 (4,115)	2020 £’000 (4,897) 10 2,849 (2,329) 111 (148) 124 (90)
		(4,370)

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The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

22. Analysis of cash and cash equivalents

Cash at bank and in hand Notice deposits mparative figures for 2019-20 Cash at bank and in hand Notice deposits	1 April 2020 £’000 3,096 3,489 6,585 1 April 2019 £’000 2,316 2,473 4,789	Cash flows 2019-20 £’000 898 (1,257) (359) Cash flows 2019-20 £’000 780 1,016 1,796	31 March 2021 £’000 3,994 2,232 6,226 31 March 2020 £’000 3,096 3,489 6,585

Comparative figures for 2019-20

23. Programme commitments

Grants are fully accrued for once they have been approved and the grantee informed. As noted in note 13 there are commitments relating to programme related investments of £1,535,574 (2020: £869,840).

24. Operating lease commitments

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Less than one year One to five years	2021 £’000 202 142 344	2020 £’000 202 344 546

25. Parent Charity

The parent charity’s gross income and the results for the period are disclosed as follows:

	2020	2019
	£’000	£’000
Gross income	8,625	3,905
Surplus/(loss) for year	12,534	(4,203)

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The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

26. Subsidiary company

The Barrow Cadbury Trust is the sole member of the Barrow Cadbury Fund, a company registered in England and Wales, registered company number 503137. The registered office address is Kean House, 6 Kean Street, London, WC2B 4AS.

This subsidiary company is engaged in the making of benevolent and other grants and the funding of special initiatives to further social justice objectives where it meets the directors’ priorities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available surpluses are distributed under Gift Aid to the parent charity.

The trustees Erica Cadbury, Anna Southall, Nicola Cadbury, Tamsin Rupprechter and Henry Serle are also directors of the subsidiary.

A summary of the financial results of the company is shown below.

Income from fixed asset investments Grants receivable Gains on sale of investments Grants and special initiatives Administrative expenses Surplus on ordinary activities before investment gains or losses Unrealised gains/(losses) on investments Surplus/(loss) on ordinary activities tained earnings Total retained earnings brought forward Surplus/(loss) on ordinary activities Distribution under Gift Aid to parent charity Total retained earnings carried forward e aggregate of the assets, liabilities and reserves was: Assets Liabilities Reserves	2021 £’000 270 - 928 1,198 (43) (107)	2020 £’000 326 55 285 666 (262) (100)
	1,048 1,701 2,749 2021 £’000 10,839 2,749 (415) 13,173 2021 £’000 13,308 (135) 13,173	305 (713) (409) 2020 £’000 11,533 (409) (285) 10,839 2020 £’000 11,111 (272) 10,839

Retained earnings

The aggregate of the assets, liabilities and reserves was:

27. Related party transactions

The Barrow Cadbury Trust and the Barrow Cadbury Fund are administered from the same registered office. The Barrow Cadbury Trust incurs most administrative expenses and is reimbursed by the Barrow Cadbury Fund for its appropriate share of these costs. In 2021 these amounted to £40,621 (2020 - £46,912). In addition the Barrow Cadbury Fund made a donation of £415,000 to the Barrow Cadbury Trust during the year (2020 - £285,000).

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The Barrow Cadbury Trust (a company limited by guarantee) Notes to the accounts for the year ended 31 March 2021

During the year trustees and key management personnel served on the Boards of four social investments and three grantees to which the Trust makes contributions. None of these posts is remunerated. These are as follows:

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Name Organisation Nature of relationship to
Barrow Cadbury Trust
Anna Southall Bristol Together Social investment
Clore Social Leadership Programme Grantee
Dame Sara Llewellin Charity Bank (retired 1 July 2020) Social investment
Deborah Pippard Social Justice and Human Rights Centre Ltd Social investment
Ethex Social investment
Global Dialogue Grantee
Mark O’Kelly Child Poverty Action Group Grantee
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Other than those transactions stated above there were no related party transactions during the year.

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