BECHT FOUNDATION
(Registered Charity Number: 1116657) TRUSTEES ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
BECHT FOUNDATION
CONTENTS
| Page | |
|---|---|
| Annual Report of the Trustees | 1 - 8 |
| Independent Report |
9 - 11 |
| Statement of Financial Activities | 12 |
| Balance Sheet | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 15 - 23 |
Page 1
BECHT FOUNDATION
FOR THE YEAR ENDED 31 DECEMBER 2023
The Trustees submit their report and the independently audited financial statements of Becht Foundation foundation for the year to 31 December 2023. These have been prepared in accordance with the accounting policies set out on pages 15 to 17 trust deed and applicable law.
The financial statements comply with the Charities Act 2011 and where applicable, the Charities Act 2022, the trust deed dated 3 October 2006 and 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 issued in October 2019.
1. REFERENCE AND ADMINISTRATIVE DETAILS
Becht Foundation registered charity number 1116657, is based and administered in the United Kingdom. The registered address is Eighth Floor, 6 New Street Square, London, EC4A 3AQ.
The names of the Trustees who served throughout the year and continue to serve at the date of
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Lambertus Johannes Hermanus Becht
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Ann Marie Becht
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David Walter Poulter
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The R&H Trust Co (UK) Ltd
Key Management:
The Trustees, together with the Programme Director, consider themselves the key management personnel of the Foundation who are in charge of directing and controlling, running and operating the Foundation on a day to day basis.
Independent Auditors:
KPH Audit & Assurance Services Ltd, 255 Poulton Road, Wallasey, Wirral, CH44 4BT
Accountants:
Rawlinson & Hunter LLP, Eighth Floor, 6 New Street Square, New Fetter Lane, London, EC4A 3AQ
Solicitors:
Macfarlanes LLP, 20 Cursitor Street, Holborn, London, EC4A 1LT
Investment Managers:
UBS Wealth Management, 1 Finsbury Avenue, London Fidelity Investments, Oak Brook, Illinois, USA BDT Capital Partners, LLC, Chicago, Illinois, USA The Craftory, Egyptian House, 170 Piccadilly, London AiiM Partners, 410 Sherman Avenue, Palo Alto, California, USA Goldman Sachs International, Plumtree Court, 25 Shoe Lane, London, EC4A 4AU
Page 2
BECHT FOUNDATION
FOR THE YAER ENDED 31 DECEMBER 2023
2. STRUCTURE, GOVERNANCE AND MANAGEMENT
The Charity was established by Declaration of Trust dated 3 October 2006.
In accordance with the Declaration of Trust dated 3 October 2006 there shall never be less than three Trustees.
New Trustees are elected by Trustees who are members of the Becht family. The original Trustees express the wish, without creating any legal obligation, that as each of the children of Lambertus Johannes Hermanus Becht and Ann Marie Becht attain the age of 21 years, they shall be considered for appointment as Trustee if there is a need to appoint Trustees in order to establish a quorum. Otherwise, they should be considered for appointment as Trustees after they have attained the age of 25 years.
Induction and Training
In order to ensure that the Trustees operate within current Charity Commission guidelines, Rawlinson & Hunter staff attend regular structured training sessions on charity administration and compliance. Knowledge gained from this training is then passed on to the Trustees for discussion and implementation.
The Trustees meet on a regular basis to review performance, grant applications and any other matters arising. All Trustees are expected to attend the meetings and play an active role in the administration of the foundation, including researching possible donees and visiting charity events where applicable.
Through Trustee meetings, consultation with agents, and review of Charity Commission guidance CC 26, the Trustees have examined the major strategic, business, and operational risks that the charity faces. Following a review and assessment of these risks, the Trustees have formulated management policies and implemented internal controls to mitigate risks to the Fund. The Trustees shall continue to review the risks, and the adequacy of the systems in place.
Any complaints are considered by the Trustees and responded to within three weeks.
The foundation has two employee who receives a fair and commensurate pay package which is reviewed annually. The Trustees do not receive remuneration for acting as Trustees.
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in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:
Page 3
BECHT FOUNDATION
FOR THE YEAR ENDED 31 DECEMBER 2023
2. STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and where applicable, the Charities Act 2022, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to Auditor
In so far as the Trustees are aware:
- 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 . Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Internal Controls
The Trustees have overall responsibility for ensuring that the charity has appropriate systems of internal controls. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps towards the prevention and detection of fraud.
The system of internal controls is designed to provide reasonable, but not absolute, assurance against material misstatement or loss.
Risk Management and Governance
A risk assessment has been undertaken which comprises:
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an annual review of the risks the charity may face;
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the establishment of systems and procedures to mitigate those risks; and
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the implementation of procedures designed to minimise any potential impact on the charity should those risks materialise.
This continuing process will identify risk areas to which the foundation is vulnerable and highlight any necessary safeguards that will need to be put in place. No major risks were identified at the date of these financial statements.
Page 4
BECHT FOUNDATION
FOR THE PERIOD ENDED 31 DECEMBER 2023
2. STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)
The Trustees have signed fit and proper declarations in line with HMRC guidance.
In addition, the Trustees have taken due consideration of Good Governance A Code for the Voluntary and Community Sector, ensuring that the seven main principles of the Code are adhered to. These are:
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Organisational purpose;
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Leadership;
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Integrity;
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Decision-making, risk and control;
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Board effectiveness;
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Equality, diversity and inclusion; and Openness and accessibility.
The Trustees recognise that good governance plays an essential part in securing the future of the charity and confirm that the said main principles of the Code are followed by them in leading, directing and managing the charity.
Related party transactions occurring during the year are disclosed in note 10 on page 23.
3. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT
The objects of the charity are such exclusively charitable purposes as the Trustees may in their absolute discretion determine. The charity is established for general charitable purposes and will operate as a grant making charity, supporting charitable projects, organisations and individuals with grants of varying sizes and durations.
The Trustees may use the income and the capital of the charity in promoting the objects.
Statement of Public Benefit
The Trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to it. They consider the information which follows in this annual report, about the foundation achievements in the areas of interest that the trust supports demonstrates the benefit to its beneficiaries and through them to the public, that arise from those activities.
Fundraising
confirm that the Act and CC20 have no impact on the charity as it does not engage in any public fundraising activities.
Page 5
BECHT FOUNDATION
FOR THE YEAR ENDED 31 DECEMBER 2023
3. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT (continued)
Grant Making Policy
The charity has been established to provide grants for purposes that are, or would be deemed to be, exclusively charitable under the law of England and Wales. The charity has put in place sound grant arrangements so that it can properly select appropriate grantees and impose prudent terms on grants, including, as appropriate, requiring monitoring and evaluation of the way in which funds are applied by grantees.
Objectives and Activities of the Charity
The Trustees hold the capital and income funds for such charities, or charitable purposes, in any part of the world as they may determine. In particular, but not limited to such purposes, the Trustees seek to sponsor and support activities that protect and restore the through marine conservation and climate communications. The Trustees have gradually phased down their support for activities that provide humanitarian aid, in order to increase their support for projects in the marine and climate communications space.
The Trustees wish to be able to provide regular, long-term support to charitable purposes, and therefore aim to maintain sufficient reserves to produce a yield that will make such support possible.
During the year the Trustees made grants to charitable purposes of $9,832,442 (2022: $9,367,917 ).
The Trustees use the funds to make grants to charitable purposes, in the interests of providing public benefit.
The Trustees have wide powers, enabling them to support charitable purposes. The main areas which the Trustees seek to biodiversity through marine conservation; and (ii) climate communications to help build strong public support for climate action. The charity also provides support to other biodiversity and humanitarian projects, at a smaller level.
The Trustees are aware that charities may require unrestricted funds to enable them to operate effectively. Therefore, the Trustees are willing to consider making both restricted and unrestricted donations to charitable purposes in the course of their support, with a continued focus on monitoring regular process.
The Trustees hired a Programme Manager to support them and the Programme Director in grant making as well as reviewing the performance and progress of the projects supported by the Foundation.
In order to minimise administrative costs, the Trustees will reply to successful applicants only.
The Trustees request that donees provide updates and information on how they have used any funds received. These responses are considered at Trustee meetings. Such updates should include details of outcomes, outcome against agreed milestones. Whilst many outcomes may be measurable, the Trustees appreciate that certain benefits are less tangible, and this is understood when reviewing the effect of the Trustees' grants. Where further information is required, the Trustees will make contact with donees.
Page 6
BECHT FOUNDATION
ANNUAL REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
4. ACHIEVEMENT AND PERFORMANCE
Total charitable donations paid or awarded during the year amounted to $9,832,442 (2022: $9,367,917).
A total of 25 organisations were supported during the year, compared with 29 in the previous year, because of some marine projects coming to the end of their grant period and being in the process of renewal, as well as some one-time humanitarian grants made in 2022, which were not repeated in 2023.
ar was $2,037,573 awarded to Potential Energy Coalition towards their goal of increasing public support for climate action (2022: $1,517,500 awarded to the Save the Children Emergency Health Unit).
$48,297 was paid in respect of governance costs (2022: $42,307) and $371,582 in support costs (2022: $359,919).
In 2023, Becht Foundation continued to grow its grant making in the marine conservation and climate communications space.
The share of charitable expenditure on climate communications was $2m (21%). Expenditure on marine issues decreased slightly to $6.5m (66%), from $6.6m (70%) in the previous period. Humanitarian issues have correspondingly decreased from $2.3m (23%) to $1.3m (13%).
A key achievement for marine conservation in 2022 was The Nature Conservancy led Blue Bonds deal in Gabon swap for ocean conservation, generated savings of $163M that Gabon will use to finance the protection and management of 3 coastal areas. Another major milestone was the years of talks and intense negotiations, the United Nations has formally adopted a landmark treaty to High S marine biodiversity in areas of the ocean beyond national borders. The treaty is an important step . Becht Foundation supported the High Seas Alliance in their campaign to protect the high seas.
In Australia, Becht Foundation supported Pew Charitable Trusts who successfully campaigned to expand and fully protect The Macquarie Island Marine Park, which is set to nearly triple in size, to a total area of 475,465 square kilometres (184,000 square miles), with 93% of the park an area the size of Germany designated as a fully protected marine sanctuary.
In the space of climate communications, Becht Foundation supports Potential Energy Coalition, which support from 31% of Michiganders in their target audience to 46%. Their campaign combined with the strong ground game of their partner organizations resulted in Michigan adopting a new clean energy standard requiring the state to meet 100% clean energy by 2040.
The trustees remain committed to scaling up funding to support marine conservation and protection projects, and climate communications projects that will generate strong citizen support for climate action.
Page 7
BECHT FOUNDATION
FOR THE PERIOD ENDED 31 DECEMBER 2023
5. FINANCIAL REVIEW
Incoming Resources and Resources Expended
Total incoming resources were $3,155,520 (2022: $7,008,630). $1,625,693 (2022: $1,562,494) was expended on investment management costs. Governance costs totalled $48,297 (2022: $42,307), whilst direct charitable activity totalled $9,832,442 (2022: $9,367,717). Net incoming funds over the period totalled $22,058,812 (2022: $96,507,542 net expenditure) driven by global equity market contractions in 2023.
The Trustees' source of funding in the year was investment income and capital realised from the charity's investment portfolios.
Investments
The Trustees' aim in the short to medium term is to grow the Fund and produce sufficient investment income to enable the Trustees to continue their support of charitable purposes.
A net unrealised gain of $21,949,398 (2022: $78,041,472 loss) was recognised during the year on the Trustees' investments. Additionally, through investment sales the Trustees realised a net gain of $8,809,774 (2022: $13,967,800 loss) in the year. Currency revaluation gains of $22,134 (2022: $174,442 losses) were recognised during the year.
Investment income for the year to 31 December 2023 totalled $3,074,561 (2022: $6,890,326); a 55% decrease (2022: 77% increase) on the previous year. This decrease is as a result of no income being returned from the Trustees private equity investments.
The Trustees monitor performance of the underlying investments and mangers on a regular basis, through face to face reviews, investment reports and comparisons to peer groups and appropriate indices.
Investment policy and performance
Charity in line with the total return of the broader equity market over the long term, after expenses. This should allow the Charity to maintain the real value of the assets, whilst funding its annual expenditure. The Trustees have agreed an asset allocation strategy with investment managers, which is set to achieve this objective.
The key risk to the sustainability of the Charity is inflation and the assets will be invested to mitigate this risk over the long term. The Trustees understand that this is likely to mean that investment will be concentrated in real assets and that the capital value will fluctuate. The trustees are able to tolerate volatility of the capital value of the Charity, as long as the Charity is able to meet its short term grant making commitments through either income or liquid capital assets. To this end the Cha are invested widely and diversified by asset class, by manager and by security. Asset classes can include cash, bonds, equities, property, hedge funds, structured products, private equity, commodities and any other asset that is deemed suitable for the Charity.
The investment philosophy is also to invest a companies that have a social charter that is consistent with the purposes of the charity. On occasion this may include early stage higher risk companies where the financial returns are not yet proven but
Page 8
BECHT FOUNDATION
FOR THE YEAR ENDED 31 DECEMBER 2023
5. FINANCIAL REVIEW (continued)
and restoration of marine ecosystems or in the transition to more sustainable agricultural practices.
In these cases the Trustees recognise that losses could materialise but that the benefits of purpose outweigh the risks and will not be of a size that would put the overall investment objective at risk.
The Trustees have adopted a targeted approach in managing their investments, to match the aims of the Charity. Investments will not be made in companies which derive significant levels of their turnover from activities which conflict with the aims of the charity, nor the causes which the Trustees are trying to support.
Reserves policy and going concern
The Trustees have reviewed the guidance on reserves in Charity Commission guidance note CC19.
The Trustees have examined the requirement for resources in light of the main risks to the organisation and have no outstanding commitments or cash demands which are not adequately covered by existing resources. The net assets of the Trust are regarded as free reserves and the funds at 31 December 2023 will be retained to make grants in accordance with the Trust objects and any policies. The Trustees consider that the freely expendable funds are appropriate and adequate taking into account plans for grants to be awarded in future and have at present therefore not designated any specific reserves. However, the Trustees will keep this under constant review. In future years, a specific reserves policy may be required.
The balance held as unrestricted funds as at 31 December 2023 was $461,833,635 (2022 - $439,774,822).
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The current uncertainty in the global economy, including cost inflating factors, have increased financial pressure on charities. The Trustees have considered, the level of funds held, the expected level and security of income and the committed expenditure for twelve months from the date of signing of these financial statements. The Trustees are satisfied the forecast income and reserves are sufficient to cover all of the budgeted expenditure to be able to continue as a going concern. The Trustees therefore consider the adoption of the going concern basis in preparing these financial statements continues to be appropriate.
6. PLANS FOR THE FUTURE
The Trustees wish to continue to provide sustainable long term support to charitable purposes through grant making.
7 . AUDITOR
It will be proposed at the next Trustees KPH Audit & Assurance Services Ltd be reappointed as auditor to the charity for the ensuing year subject to the charity requiring an audit.
Approved by the Trustees and signed on their behalf by:
~~L~~ ambertus Becht
Trustee
Date
Page 9 REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF BECHT FOUNDATION Opinion We have audited the financial statements of the Becht Foundation {Ihe 'charity'l for the year to 31 December 2022 which comprise the Slalemenl of Financial Activity, Balance Sheet, Cash Flow Slalement and 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 applicabl8 in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial slalements= give a true and fair view of the slate of the charity's affairs as al 31 December 2023 and of its incoming resources and application of resources, for the year then ended; have been properly prepared in accordance with Unrted Kingdom Generally Accepted Accounting Practice,. and have b88n prepared in accordance wth the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance %Mlh Intemational Stsndards on Auditing IUKI IISAS (UKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalemenls section of our report. We are independent of the charity in accordance with the ethical requirernenls Ihal 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 appropriat& lo provid8 a basis for our opinion. Concluslons relatlng to golng concem We have nolhing lo report in respect of the following matters in relation to which the ISAS (UK) require us to report to you were.. the trustees, use of the going concem basis of accounting in the preparation of the financial stat&m&nts is not appropriate., or the Iwslees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for 8 period of at least twelve months from the date when the financial statements are authorised for issue.
Page 10 REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF BECHT FOUNDATION (continued) Other information The trustees are responsible for the other infomiation. The other infomation comprises the infomiation included in the Trustees, Annual Report and Financial Slalements. other than the financial statements and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other information and. except to the extent otheiSe explicitly stated in our report. we do not express any fomi of assurance conclusion thereon. In connection with our audit of the financial statements. our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial slalemenls or our knowledge obtained in the audit or olhemse appears lo be malerially misstated. If we identify such material inconsistencies or apparent material misslalemenls. we are required to determine whether there is a material misslatemenl in the financial statements or a material misstatement of the other infornalion. If, based on the work we have perfomed, we conclude Ihat there is a material misslatemenl of this other information. we are required lo report that fact. We have nothing to port in Ihis ward. Matters on whlch we are requlred to report by exceptlon We have nothing to report in respect of the followng matters in relation lo which the Charities (Accounts and Rèports) Règulations 2008 require us to report to you rf, in our opinion.. the information given in the financial statements is inconsistent in any material respect with the trustees, report., or sufficient accounting records have not been kept.. or the financial slalemenls are not in agreement the accounting records,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, SponSibl1111es slalement sel out on page 2, the Iruslees are responsible for the preparation of finanaal statements which give a true and fair view. and for such internal control as the trustees delemiine is necessary to enable the preparation of financial statements that are free from material misslalement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability lo continue as a going concem, disclosing, as applicable. matters related lo going concem and using the going concern basis of accounting unless the trustees eilher intend to liquidate the charity or lo cease operations, or have no realistic altemative but to do so.
Page11 REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES OF BECHT FOUNDATION (continued) Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole a free from material misslalement, whether dLJe 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 {UKI will ahvays detecl a material misstatement when il exists. Misslalemenls 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 slalemenls. A further description of our responsibilities for the audr( of the financial slalemenls is located on the Financial Reporting Council's website at.. wvM.frc.org.uklaudttorsresponsibililies. This dèscription forms part of our auditor's pOrt. Use of thls report This r8POrt is made solely to the charity's trustees. as a bcJy. in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate to the charity's trustees those matters we are required lo 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 lo anyone other than the charity and the charity's Iruslees as a bcJy. for our audit work. for this report. or for the opinions we have formed. KPM th¢t & Asx¢rA•K* S&rv¢tsfr L 13 August 2024 KPH Audit & Assurance Services Ltd Statutory Auditor and Chartered Accountants 255 Poulton Road, Wallasey Wirral, CH44 4BT KPH Audit & Assurance Sertyices Ltd is eligible to acl as an auditor in terms of section 1212 of the Companies Act 2006.
Page 12
BECHT FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR TO 31 DECEMBER 2023
| Page Income from: Investments (note 2) 17 Charitable activity (note 3) 17 Total income Expenditure on: Charitable Activities (note 4) 19 Raising Funds (note 5) 19 Total expenditure Net gains/(losses) on investments (note 6) 20 Net income/(expenditure) before other recognised gains Other recognised gains/losses: Other gains/(losses) Net movement in funds Total funds brought forward at 1 January 2023 Resources carried forward at 31 December 2023 |
Unrestricted Funds 31 December 2023 $ 3,074,561 80,959 3,155,520 10,252,321 1,625,693 11,878,014 30,759,173 22,036,679 22,134 22,058,813 439,774,822 $ 461,833,635 |
Unrestricted Funds 31 December 2022 $ 6,890,326 118,304 7,008,630 9,769,888 1,562,574 11,332,462 (92,009,272) (96,333,104) (174,438) (96,507,542) 536,282,364 |
Unrestricted Funds 31 December 2022 $ 6,890,326 118,304 7,008,630 9,769,888 1,562,574 11,332,462 (92,009,272) (96,333,104) (174,438) (96,507,542) 536,282,364 |
|---|---|---|---|
| 9,769,888 1,562,574 |
|||
| 11,332,462 | |||
| (92,009,272) | |||
| (96,333,104) (174,438) |
|||
| (96,507,542) | |||
| 536,282,364 | |||
| $ 439,774,822 |
There are no recognised gains or losses in the years to 31 December 2022 and 2023 other than those included in the statement of financial activities.
All incoming resources and resources expended derive from continuing activities.
The notes on pages 15 to 23 form part of the notes of the financial statements
Page 13
BECHT FOUNDATION
BALANCE SHEET
AT 31 DECEMBER 2023
| Fixed assets: Investments (note 6) Current assets: Cash at bank (note 7) Debtors due within one year (note 8) Total current assets Liabilities: Creditors - amounts falling due within one year (note 9) Net current assets Total net assets The funds of the charity: Unrestricted funds pproved by the Trustees nd signed on their behalf by: J H Becht W Poulter ate |
Page Unrestricted Funds Unrestricted Funds 31 December 2023 31 December 2022 $ $ 20 458,278,972 436,864,382 22 3,620,394 3,081,501 22 52,972 55,696 3,673,366 3,137,197 22 (118,703) (226,757) 3,554,663 2,910,440 $ 461,833,635 $ 439,774,822 $ 461,833,635 $ 439,774,822 A M Becht R&H Trust Co (UK) Ltd |
Page Unrestricted Funds Unrestricted Funds 31 December 2023 31 December 2022 $ $ 20 458,278,972 436,864,382 22 3,620,394 3,081,501 22 52,972 55,696 3,673,366 3,137,197 22 (118,703) (226,757) 3,554,663 2,910,440 $ 461,833,635 $ 439,774,822 $ 461,833,635 $ 439,774,822 A M Becht R&H Trust Co (UK) Ltd |
|---|---|---|
| A M Becht | ||
| R&H Trust Co (UK) Ltd |
The notes on pages 15 to 23 form part of the notes of the financial statements
Page 14
BECHT FOUNDATION
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
| Page | 31 December | 31 December | |
|---|---|---|---|
| 2023 | 2022 | ||
| $ | $ | ||
| Net cash flow from Operating Activities | |||
| Net movement on funds for the year | 12 | 22,058,812 | (96,507,542) |
| Less: Investment income and deposit interest | (3,074,561) | (6,890,326) | |
| Net (gain)/loss on investment assets | (30,759,172) | 92,009,272 | |
| Decrease in debtors | 2,724 | 37,818 | |
| (Decrease)/increase in creditors | (108,054) | (82,456) | |
| Net cash used by Operating Activities | (11,880,251) | (11,433,234) | |
| Returns on investments | |||
| Investment income (note 2) | 17 | 2,860,828 | 6,779,241 |
| Deposit interest (note 2) | 17 | 213,733 | 111,085 |
| 3,074,561 | 6,890,326 | ||
| Capital expenditure and financial investment | |||
| Purchase of investments (note 6) | 20 | (128,039,503) | (90,815,019) |
| Proceeds from sale of investments (note 6) | 20 | 137,384,086 | 88,805,968 |
| 9,344,583 | (2,009,051) | ||
| Net (decrease)/increase in cash in the year | $ 538,893 | $ (6,551,959) | |
| Reconciliation of net cash flow to movement in net funds | |||
| Net cash resources at 1 January 2023 | 3,081,501 | 9,633,460 | |
| Net increase/(decrease) in cash | 538,893 | (6,551,959) | |
| Net cash resources at 31 December 2023 | 3,620,394 | 3,081,501 | |
| Analysis of net funds: | |||
| Cash at Bank (note 7) | 22 | 3,620,394 | 3,081,501 |
| $ 3,620,394 | $ 3,081,501 |
The notes on pages 15 to 23 form part of the notes of the financial statements
Page 15
BECHT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
1. ACCOUNTING POLICIES
Becht Foundation Foundation 16657, is based and administered in the United Kingdom. The registered address is Eighth Floor, 6 New Street Square, New Fetter Lane, London EC4A 3AQ. The nature of the
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
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 Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and where applicable, the Charities Act 2022, and UK Generally Accepted Accounting Practice. The Foundation constitutes a public benefit entity as defined by Charities SORP FRS 102.
The financial statements are presented in US Dollars which is the functional currency of the charity.
Status of funds
The entire resources of the charity are unrestricted. The Trustees have complete discretion for the use of the funds in pursuance of the charity's objectives.
Fixed asset 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. Investment gains and losses, whether realised or unrealised, are combined and shown in Foundation does not acquire put options, derivatives or other complex financial instruments.
Private equity investments are initially accounted for at the cost of the Charity capital call. They are then recorded at fair market value once a valuation is formally conducted by the manager in which the Charity is invested, with any revaluation gain or loss being recorded through the SOFA.
Incoming resources
Investment income is derived from interest and dividends receivable from investments and is accounted for in the period in which the Foundation is entitled to receipt. Interest from deposit accounts are included as and when received only. All incoming resources are included in the SOFA when the Foundation is entitled to the income and the amount can be quantified with reasonable accuracy.
Voluntary donations include donations under Gift Aid with the associated tax credits included when receivable. Interest from deposit accounts are included when received.
Page 16
BECHT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
1. ACCOUNTING POLICIES (continued)
Resources expended
All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation committing the Trustee to the expenditure.
Charitable activities include governance costs made during the period and are expended through the SOFA when the offer is conveyed to the recipient.
Cost of raising funds relate to the costs incurred by the Foundation in managing its investment portfolios.
Governance costs relating to the general running of the Foundation, as opposed to the management functions inherent in generating funds.
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value, except where settlement is delayed, in which case the transaction is recognised at the present value of the settlement amount.
Foreign currency
Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the Balance Sheet date. Transactions denominated in foreign currencies are converted at the rate of exchange ruling at the date of the transaction. All translation differences are taken to the statement of financial activities as they arise.
Debtors and creditors receivable/payable
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised as expenditure.
Debtors and creditors receivable/payable after one year
Debtors and creditors receivable or payable after one year are recognised at their present value.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held on call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Also included is cash held under management by the investment broker.
Provisions
Provisions are recognised when the charity has an obligation at the Balance Sheet date as a result of a past event, it is probable that an outflow of economic benefit will be required in settlement and the amount can be reliably estimated.
Taxation
As a registered charity, the Foundation is entitled to certain exemptions from Income and Capital Gains Tax on profits from investments and any trading activities carried on in furtherance of the
Costs are recorded net of recoverable VAT as the Foundation is able to reclaim a portion of VAT paid, because of its trading activates, using the standard method.
Page 17
BECHT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1. ACCOUNTING POLICIES (continued)
Going Concern
The Trustees have examined the requirement for resources in light of the main risks to the organisation and have no outstanding commitments or cash demands which are not adequately covered by existing resources. The net assets of the Trust are regarded as free reserves and the funds at 31 December 2023 will be retained to make grants in accordance with the Trust objects and any policies. The Trustees consider that the freely expendable funds are appropriate and adequate taking into account plans for grants to be awarded in future and have at present therefore not designated any specific reserves. However, the Trustees will keep this under constant review. In future years, a specific reserves policy may be required.
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The current uncertainty in the global economy, including cost inflating factors, have increased financial pressure on charities. The Trustees have considered, the level of funds held, the expected level and security of income and the committed expenditure for twelve months from the date of signing of these financial statements. The Trustees are satisfied the forecast income and reserves are sufficient to cover all of the budgeted expenditure to be able to continue as a going concern. The Trustees therefore consider the adoption of the going concern basis in preparing these financial statements continues to be appropriate.
Judgements and key sources of estimated uncertainty
In preparing these financial statements, the Trustees have to make judgements on how to apply the .
Apart from valuation of investments which are based on open market values and advice from asset managers, the trustees have made no significant judgements.
| 2. | INVESTMENT INCOME | Page | 31 December | 31 December |
|---|---|---|---|---|
| 2023 | 2022 | |||
| $ | $ | |||
| Net income from investments | ||||
| UBS portfolio | 2,860,828 | 3,255,016 | ||
| Deposit interest | 213,733 | 111,085 | ||
| Private Equity portfolio | - | 3,493,385 | ||
| Fidelity Investments portfolio | - | 30,840 | ||
| Total investment income | 12 | $ 3,074,561 | $ 6,890,326 | |
| 3. | CHARITABLE ACTIVITY | |||
| ESG advisory services | 80,959 | 118,304 | ||
| $ 80,959 | $ 118,304 |
On 1 November 2021 the Trustees entered into an agreement with Bansk Group LLP to review and analyse Environmental, Social and Governance matters as required.
Page 18
BECHT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
| Page 31 December | 31 December | |||
|---|---|---|---|---|
| 2023 | 2022 | |||
| 4. | CHARITABLE ACTIVITIES | $ | $ | |
| Grants payable: | ||||
| Potential Energy Coalition | 2,037,573 | 500,000 | ||
| Blue Ventures Conservation | 1,000,000 | 1,000,000 | ||
| Save the Children Emergency Health Unit |
943,200 | 1,517,500 | ||
| The Nature Conservancy | 900,000 | 700,000 | ||
| The Pew Charitable Trusts | 850,000 | 250,000 | ||
| Oceana Inc | 825,000 | 1,425,500 | ||
| Global Fishing Watch | 750,000 | - | ||
| WWF | 600,000 | 400,000 | ||
| Client Earth | 503,501 | 612,398 | ||
| Oceans North Conservation | 375,000 | 250,000 | ||
| Seas at Risk | 275,000 | 137,500 | ||
| St Georges Hospital Charity | 180,855 | 198,600 | ||
| Greenwave | 150,000 | 550,080 | ||
| Irish Environmental Network | 100,000 | 102,763 | ||
| Mangrove Action Project | 100,000 | 100,000 | ||
| Chem Trust | 75,000 | 75,000 | ||
| Sightsavers | 61,390 | 66,406 | ||
| The Universtiy of Chicago |
Booth School | 50,000 | 66,406 | |
| Lamoille Community Food Share | 15,000 | 15,000 | ||
| United Way of Lamoille County | 15,000 | 15,000 | ||
| Other small grants | 25,923 | 7,827 | ||
| Only One | - | 423,999 | ||
| Rare, Inc. | - | 354,961 | ||
| UBS Optimus Foundation |
Ukraine appeal | - | 298,091 | |
| Greenpeace | - | 172,187 | ||
| High Seas Alliance | - | 50,000 | ||
| Fairchance Foundation | - | 39,096 | ||
| Room to Read | - | 23,630 | ||
| OceanMind | - | 15,773 | ||
| Total Grants payable: | $ 9,832,442 | $ 9,367,717 |
Page 19
BECHT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
| Page | 31 December | 31 December | 31 December | ||
|---|---|---|---|---|---|
| 2023 | 2022 | ||||
| 4. | CHARITABLE ACTIVITIES (continued) | $ | $ | ||
| Governance costs: | |||||
| Accountancy fees | 42,511 | 39,484 | |||
| Audit fees | 5,205 | 2,198 | |||
| Bank charges | 581 | 628 | |||
| Total Governance costs: | $ 48,297 | $ |
42,310 | ||
| Auditor remuneration for the year ended 31 December 2023 totalled $5,092 excluding | VAT (2022: | ||||
| $4,530 excluding VAT) | |||||
| Support Costs: | |||||
| Staff costs | 330,427 | 338,467 | |||
| General expenses | 37,705 | 14,246 | |||
| IT costs | 3,450 | 7,148 | |||
| Total Support costs: | $ 371,582 | $ 359,861 | |||
| Total Charitable activities: | 12 | $10,252,321 | $9,769,888 |
Included in Staff costs are gross salaries of $283,421 (2022: of $287,863), Social Security costs of $30,347 (2022: $33,715) and employer pension contributions of $16,660 (2022: $16,889 ).
One employee earned between $210,000 and $220,000 during the year (2022: one earning between $160,000 and $170,000) and the average number of employees during the year was two (2022: two).
5. COST OF RAISING FUNDS
| Investment management fees: UBS Private equity Goldman Sachs rebate LEI renewal fee 12 |
682,434 1,161,081 (218,117) 295 $ 1,625,693 |
793,211 1,000,600 (231,317) - $ 1,562,494 |
|---|---|---|
The investment management fees are costs of managing the investment portfolio which are payable to the investment managers and do not include transactional costs.
The investment management fees do not include management charges for the investments held with Goldman Sachs which are deducted directly from the fund value.
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Page 21
Page 22
BECHT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
| Page | 31 December | 31 December | ||
|---|---|---|---|---|
| 2023 | 2022 | |||
| $ | $ | |||
| 7. | CASH AT BANK | |||
| Coutts & Co Bank | 1,729,629 | 1,425,793 | ||
| Goldman Sachs | 957,827 | 124,286 | ||
| UBS Bank London | 919,521 | 1,518,340 | ||
| Fidelity Investments Chicago | 13,417 | 13,082 | ||
| 13 | $ 3,620,394 | $ 3,081,501 | ||
| 8. | DEBTORS - DUE WITHIN ONE YEAR | |||
| Investment management fee rebate | 51,120 | 55,696 | ||
| VAT recoverable | 1,852 | - | ||
| 13 | $ 52,972 | $ 55,696 |
||
| 9. | CREDITORS - Amounts falling due within one year | |||
| Investment management fees | 91,968 | 189,198 | ||
| Accountancy and administration fees | 21,643 | 10,271 | ||
| Audit fees | 5,092 | 4,530 | ||
| Staff costs | - | 14,972 | ||
| VAT payable | - | 7,786 | ||
| 13 | $ 118,703 | $ 226,757 |
Page 23
BECHT FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
10. RELATED PARTY TRANSACTIONS
Rawlinson & Hunter received $42,511 during the year (year to 31 December 2022: $39,484) for the provision of secretarial and accountancy services for the year. Certain partners of Rawlinson & Hunter are also directors of the R&H Trust Co (UK) Ltd.
On 1 November 2021 the Trustees entered into an agreement with Bansk Group LLP to review and analyse Environmental, Social and Governance matters as required. Certain Trustees of the Foundation are also members of Bansk Group LLP. As at year end, Bansk Group LLP had incurred costs of $80,959 exclusive of VAT, all of which was paid to the Foundation (2022: $118,304 exclusive VAT).
No Trustee received reimbursement of expense or payment for services (period to 31 December 2022: none). The Foundation incurred costs totalling £11,313 on behalf of three trustees in relation to travel and accommodation for a field visit to a grant recipient in Canada and attendance for two at New York climate week.
11. ULTIMATE CONTROLLING PARTY
The ultimate controlling party are the Trustees.
| 12. FINANCIAL INSTRUMENTS Page 31 December 2023 $ financial instruments are as follows: Financial assets Measured at fair value through SOFA: -Fixed asset investments 20 458,278,972 -Cash at bank and in hand 22 3,620,394 Financial liabilities Measured at amortised cost sured at amortised cost: -Creditors -Accrued income 22 118,703 The income, expenses, net gains and net losses financial instruments are summarised as follows: Income and expense Measured at fair value through SOFA:sured at amortised cost: -Net (losses)/gains (including changes in fair value) 12 30,781,306 |
12. FINANCIAL INSTRUMENTS Page 31 December 2023 $ financial instruments are as follows: Financial assets Measured at fair value through SOFA: -Fixed asset investments 20 458,278,972 -Cash at bank and in hand 22 3,620,394 Financial liabilities Measured at amortised cost sured at amortised cost: -Creditors -Accrued income 22 118,703 The income, expenses, net gains and net losses financial instruments are summarised as follows: Income and expense Measured at fair value through SOFA:sured at amortised cost: -Net (losses)/gains (including changes in fair value) 12 30,781,306 |
31 December 2022 $ 436,864,382 3,081,501 226,757 (92,183,710) |
|---|---|---|
| 30,781,306 |