REGISTERED CHARITY NUMBER: 1118490
Report of the Trustees and
Audited Financial Statements for the Year Ended 31st December 2020
for
The Hearn Foundation
Lincoln Brown & Co Limited Chartered Certified Accountants Statutory Auditors Grenville House 4 Grenville Avenue Broxbourne Hertfordshire EN10 7DH
The Hearn Foundation
Contents of the Financial Statements for the Year Ended 31st December 2020
| Page | |
|---|---|
| Report of the Trustees | 1 to 4 |
| Report of the Independent Auditors | 5 to 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Cash Flow Statement | 11 |
| Notes to the Cash Flow Statement | 12 |
| Notes to the Financial Statements | 13 to 20 |
| Detailed Statement of Financial Activities | 21 |
The Hearn Foundation
Report of the Trustees for the Year Ended 31st December 2020
The trustees present their report with the financial statements of the charity for the year ended 31st December 2020. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's trust deeds, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019
The Trust is an unincorporated trust, constituted under the trust deeds dated 19th January 2007 and is a registered charity, number 1118490. The Trust was established by an initial gift from Mr P Hearn and continues to receive gifts from Mr Hearn. The Trust does not actively fundraise, but seeks to continue the philanthropic work desired by the donor through the careful stewardship of its existing resources and additional donation from Mr P J Hearn
The Trustees are appointed by the settlor during his life and thereafter by Mr M Hearn. The Trust Deed provides for a minimum of 3 trustees, to a maximum of 5 trustees.
The Trustees keep the experience and skill requirements of trustees under review and in the event that any trustee resigns or it is deemed new trustees are required, the Board will seek independent advice on any appointments.
The Trustees meet formally on a regular basis to agree all areas of activity for the Trust including grant making, investments, reserves and risk management policies and performance.
Risk Management
The Trustees have considered the major risks to which the Trust is exposed and have reviewed those risks and ensure by continual monitoring that these risks are properly managed. The Trustees consider the viability of investment returns as the Trust's major risk and keep these investments under constant review.
The Trustees have agreed the major risk to which the Charity is exposed and are satisfied that systems are in place to mitigate those risks.
OBJECTIVES AND ACTIVITIES
Objectives and aims
The Trust is a charitable trust and the Trustees are authorised to apply the annual income and the capital of the Trust to such charity and charities or for such charitable purpose or purposes as the trustees shall determine.
The Trustees have decided that, for the time being, the Trust will focus on providing grants to Institutions working with underprivileged young people and to contributing to the support of the Arts. Geographic location not to be determining factor in such grants.
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The Hearn Foundation
for the Year Ended 31st December 2020
Report of the Trustees
ACHIEVEMENT AND PERFORMANCE
Charitable activities
During 2020 the following grants have been agreed:
| Total | |
|---|---|
| £ | |
| National Theatre | 200,000 |
| St Peter's London Docks School | 56,379 |
| EBP South | 54,562 |
| AWT Foundation | 37,000 |
| Others | 12,800 |
| Total | £360,741 |
Public Benefit
The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on the public benefit when reviewing the Trust aims & objectives, planning for future activities and settling grants for the year.
The main activities that the charity has undertaken to further the public benefit are by funding institutions whose main focus is towards underprivileged children and support of the Arts.
FINANCIAL REVIEW
Financial position
The trust's income is from its investments and any further gifts it receive from donors. During 2020, the Trust received donations of £6,699,259 (2019 - £163,439) from Mr P Hearn. The income of the trust from its investments was £2,577 (2019 - £2,667). During 2020 £360,741 (2019 - £233,798) was spent on charitable activity and £7,200 (2019 £6,600) on governance of the Trust and £9,469 to maintain property investment.
Investments are valued at market value at the balance sheet date and revaluations / devaluations are reflected in the statement of financial activities. At the year end investments were revalued by £451,843 (2019 (£872,520).
Investment policy and objectives
The trustees invest the Trust's excess funds in mainly the UK and European Equities and interest bearing deposits with UK Banks. The Trustees take into account social, environmental and ethical concerns when making investments.
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The Hearn Foundation
Report of the Trustees for the Year Ended 31st December 2020
FINANCIAL REVIEW
Reserves policy
The current reserves policy of the Trustees is to maintain free reserves in the unrestricted funds level which equates to approximately two years of charitable expenditure taking account of average annual expenditure over the previous 3 years. The Trustees consider that this is the appropriate level to provide sufficient funds to respond to grant applications in an effective manner.
The Trustees review the funds available and grant applications on a continuous basis. The Trust deed gives the power to accumulate funds for future periods.
FUTURE PLANS
For the foreseeable future the Trustees intend to primarily target the work of the Trust towards underprivileged children & support of the Arts.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
1118490
Principal address
Flat 94 Cinnabar Wharf East 28 Wapping High Street Wapping London E1W 1NG
Trustees
Mr P J Hearn Mr M Hearn Mr J Pike
Auditors
Lincoln Brown & Co Limited Chartered Certified Accountants Statutory Auditors Grenville House 4 Grenville Avenue Broxbourne Hertfordshire EN10 7DH
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The Hearn Foundation
Report of the Trustees for the Year Ended 31st December 2020
EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed require 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 those 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 2019 (FRS 102); - make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume
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that the charity will continue in operation.
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state whether applicable accounting standards have been followed subject to any material
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departures disclosed and explained in the financial statements.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, 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.
Approved by order of the board of trustees on 22nd September 2021 and signed on its behalf by:
Mr P J Hearn - Trustee
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Report of the Independent Auditors to the Trustees of The Hearn Foundation
Opinion
We have audited the financial statements of The Hearn Foundation (the 'charity') for the year ended 31st December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31st December 2020 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity'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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Report of the Independent Auditors to the Trustees of The Hearn Foundation
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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.
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 statements or our knowledge obtained in 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity'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 charity or to cease operations, or have no realistic alternative but to do so.
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Report of the Independent Auditors to the Trustees of The Hearn Foundation
Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we identified the laws and regulations applicable to the charity through discussions with the trustees.
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Charities Act 2011.
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of trustees and inspecting legal correspondence; and
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charities financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
To address the risk of fraud through management bias and override of controls, we:
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias;
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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Report of the Independent Auditors to the Trustees of The Hearn Foundation
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agreeing financial statement disclosures to underlying supporting documentation;
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reading the minutes of meetings of those charged with governance;
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enquiring of trustees as to actual and potential litigation and claims;
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Lincoln Brown & Co Limited Chartered Certified Accountants Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Grenville House 4 Grenville Avenue Broxbourne Hertfordshire EN10 7DH
22nd September 2021
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The Hearn Foundation
Statement of Financial Activities for the Year Ended 31st December 2020
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Investment income 3 Total EXPENDITURE ON Charitable activities 4 Grants Payable Other Total NET INCOME/(EXPENDITURE) Transfers between funds 13 Other recognised gains/(losses) Gains/(losses) on revaluation of fixed assets Net movement in funds RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
31.12.20 Unrestricted Endowment Total funds fund funds £ £ £ 6,500,000 199,259 6,699,259 2,577 - 2,577 6,502,577 199,259 6,701,836 - 360,741 360,741 16,669 - 16,669 16,669 360,741 377,410 6,485,908 (161,482) 6,324,426 1,430,752 (1,430,752) - - (451,843) (451,843) 7,916,660 (2,044,077) 5,872,583 123,332 5,654,903 5,778,235 8,039,992 3,610,826 11,650,818 |
31.12.19 Total funds £ 163,439 2,667 166,106 233,798 6,600 240,398 (74,292) - 872,520 798,228 4,980,007 5,778,235 |
|---|---|---|
The notes form part of these financial statements
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The Hearn Foundation
Balance Sheet 31st December 2020
| Notes FIXED ASSETS Tangible assets 9 Investments 10 CURRENT ASSETS Cash at bank CREDITORS Amounts falling due within one year 11 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 13 Unrestricted funds Endowment funds TOTAL FUNDS |
31.12.20 £ 6,500,000 2,375,717 8,875,717 2,782,301 (7,200) 2,775,101 11,650,818 11,650,818 8,039,992 3,610,826 11,650,818 |
31.12.19 £ - 4,419,794 4,419,794 1,371,641 (13,200) 1,358,441 5,778,235 5,778,235 123,332 5,654,903 5,778,235 |
|---|---|---|
The financial statements were approved and authorised for issue by the Board of Trustees and authorised for issue on 22nd September 2021 and were signed on its behalf by:
Mr P J Hearn - Trustee
The notes form part of these financial statements
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The Hearn Foundation
| Cash Flow Statement for the Year Ended 31st December 2020 Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by/(used in) operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of fixed asset investments Interest received Net cash (used in)/provided by investing activities Cash flows from financing activities Income attributable to endowment Expenditure attributable to endowment Net cash used in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
31.12.20 £ 6,477,331 6,477,331 (6,500,000) 1,592,234 2,577 (4,905,189) 199,259 (360,741) (161,482) 1,410,660 1,371,641 2,782,301 |
31.12.19 £ (6,600) (6,600) - 586,543 3,619 590,162 163,439 (233,798) (70,359) 513,203 858,438 1,371,641 |
|---|---|---|
The notes form part of these financial statements
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The Hearn Foundation
Notes to the Cash Flow Statement for the Year Ended 31st December 2020
1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Interest received Income attributable to endowment Expenditure attributable to endowment Adjustment Net cash provided by/(used in) operations |
31.12.20 £ 6,324,426 (2,577) (199,259) 360,741 (6,000) 6,477,331 |
31.12.19 £ (74,292) (3,619) (163,439) 233,798 952 (6,600) |
|---|---|---|
- ANALYSIS OF CHANGES IN NET FUNDS
| Net cash Cash at bank Total |
At 1.1.20 £ 1,371,641 1,371,641 1,371,641 |
Cash flow £ 1,410,660 1,410,660 1,410,660 |
At 31.12.20 £ 2,782,301 2,782,301 2,782,301 |
|---|---|---|---|
The notes form part of these financial statements
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The Hearn Foundation
Notes to the Financial Statements for the Year Ended 31st December 2020
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective October 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value and the functional currency is pounds sterling.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the 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 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn
General information
The charity is constituted by Trust Deed and is registered in England, the registered address can be found in the Trustees report along with the charity's principal activities.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Income from donations is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably
Income from interest is recognised when receivable.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants payable are payments made to third parties in the furtherance of the charitable activities of the trust. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and that the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside the control of the trust.
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continued...
The Hearn Foundation
Notes to the Financial Statements - continued for the Year Ended 31st December 2020
1. ACCOUNTING POLICIES - continued
Expenditure
Governance costs consist of the annual audit and property fees.
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Endowment funds represent those assets which must be held permanently by the charity, the nature of those assets, and how income, relevant expenditure, and capital gains and losses are accounted for.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Financial instruments
Financial assets and financial liabilities are recognised on the Charities Statement of Financial Position when the Charity becomes a party to the contractual provisions of the instrument.
Investments
Investments in shares which can be publicly traded are measured at fair value (market value)
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand that is readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
2. DONATIONS AND LEGACIES
31.12.20 31.12.19 £ £ Donation by P Hearn 6,699,259 163,439
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The Hearn Foundation
Notes to the Financial Statements - continued for the Year Ended 31st December 2020
3. INVESTMENT INCOME
Deposit account interest
| 31.12.20 | 31.12.19 |
|---|---|
| £ | £ |
| 2,577 | 2,667 |
4. CHARITABLE ACTIVITIES COSTS
Grants Payable
5. GRANTS PAYABLE
Grants Payable
| 31.12.20 £ 360,741 |
Grant funding of activities (see note 5) £ 360,741 31.12.19 £ 233,798 |
|---|---|
| Endowmen t Funds |
Total Funds 2020 |
Total Funds 2019 |
|
|---|---|---|---|
| Institutions | £ | £ | £ |
| St Peter's London Dock School | 56,379 | 56,379 | 53,147 |
| AWT Foundation | 37,000 | 37,000 | - |
| National Theatre | 200,000 | 200,000 | 100,000 |
| EPB South | 32,208 | 32,208 | 32,208 |
| Humanist UK | - | - | 15,000 |
| Other Grants | 12,800 | 12,800 | 33,443 |
| 360,741 | 360,741 | 233,798 | |
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The Hearn Foundation
Notes to the Financial Statements - continued for the Year Ended 31st December 2020
6. SUPPORT COSTS
| 6. | SUPPORT COSTS | ||
|---|---|---|---|
| Governance | |||
| costs | |||
| £ | |||
| Other resources expended | 16,669 | ||
| Support costs, included in the above, are as follows: | |||
| 31.12.20 | 31.12.19 | ||
| Other | |||
| resources | Total | ||
| expended | activities | ||
| £ | £ | ||
| Auditors' remuneration | 6,200 | 5,600 | |
| Auditors' remuneration for non audit | |||
| work | 1,000 | 1,000 | |
| Property costs | 9,469 | - | |
| 16,669 | 6,600 | ||
| 7. | AUDITORS' REMUNERATION | ||
| 31.12.20 | 31.12.19 | ||
| £ | £ | ||
| Fees payable to the charity's auditors for the audit of the charity's | |||
| financial statements | 6,200 | 5,600 | |
| Other non-audit services | 1,000 | 1,000 |
8. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st December 2020 nor for the year ended 31st December 2019.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31st December 2020 nor for the year ended 31st December 2019.
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The Hearn Foundation
Notes to the Financial Statements - continued for the Year Ended 31st December 2020
9. TANGIBLE FIXED ASSETS
| COST Additions NET BOOK VALUE At 31st December 2020 At 31st December 2019 10. FIXED ASSET INVESTMENTS MARKET VALUE At 1st January 2020 Disposals Revaluations At 31st December 2020 NET BOOK VALUE At 31st December 2020 At 31st December 2019 Analysis of the investments held by class: UK Investments Global European Property UK Fixed Interest Cash Total |
Freehold property £ 6,500,000 6,500,000 - Listed investments £ 4,419,794 (1,592,234) (451,843) 2,375,717 2,375,717 4,419,794 2019 £ 2,385,552 139,063 1,427,807 - 111,331 356,040 4,419,793 |
||
|---|---|---|---|
| 2020 | |||
| £ | |||
| 897,707 | |||
| 222,971 | |||
| 804,360 | |||
| - | |||
| 60,453 | |||
| 390,253 | |||
| 2,375,744 | |||
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The Hearn Foundation
Notes to the Financial Statements - continued for the Year Ended 31st December 2020
11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| 31.12.20 £ Other creditors 7,200 12. ANALYSIS OF NET ASSETS BETWEEN FUNDS 31.12.20 Unrestricted Endowment Total funds fund funds £ £ £ Fixed assets 6,500,000 - 6,500,000 Investments - 2,375,717 2,375,717 Current assets 1,547,192 1,235,109 2,782,301 Current liabilities (7,200) - (7,200) 8,039,992 3,610,826 11,650,818 13. MOVEMENT IN FUNDS Net Transfers movement between At 1.1.20 in funds funds £ £ £ Unrestricted funds Unrestricted 123,332 6,485,908 1,430,752 Endowment funds Expendable Endowment Fund 5,654,903 (613,325) (1,430,752) TOTAL FUNDS 5,778,235 5,872,583 - Net movement in funds, included in the above are as follows: Incoming Resources Gains and resources expended losses £ £ £ Unrestricted funds Unrestricted 6,502,577 (16,669) - Endowment funds Expendable Endowment Fund 199,259 (360,741) (451,843) TOTAL FUNDS 6,701,836 (377,410) (451,843) |
31.12.19 £ 13,200 31.12.19 Total funds £ - 4,419,794 1,371,641 (13,200) 5,778,235 At 31.12.20 £ 8,039,992 3,610,826 11,650,818 Movement in funds £ 6,485,908 (613,325) 5,872,583 |
|---|---|
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The Hearn Foundation
Notes to the Financial Statements - continued for the Year Ended 31st December 2020
13. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Net | ||||||
|---|---|---|---|---|---|---|
| movement | At | |||||
| At 1.1.19 | in funds | 31.12.19 | ||||
| £ | £ | £ | ||||
| Unrestricted funds | ||||||
| Unrestricted | 127,265 | (3,933) | 123,332 | |||
| Endowment funds | ||||||
| Expendable Endowment Fund | 4,852,742 | 802,161 | 5,654,903 | |||
| TOTAL FUNDS | 4,980,007 | 798,228 | 5,778,235 | |||
| Comparative net movement in funds, included in the above are as follows: | ||||||
| Incoming | Resources | Gains and | Movement | |||
| resources | expended | losses | in funds | |||
| £ | £ | £ | £ | |||
| Unrestricted funds | ||||||
| Unrestricted | 2,667 | (6,600) | - | (3,933) | ||
| Endowment funds | ||||||
| Expendable Endowment Fund | 163,439 | (233,798) | 872,520 | 802,161 | ||
| TOTAL FUNDS | 166,106 | (240,398) | 872,520 | 798,228 | ||
| A current year 12 months and prior | year 12 months combined position is as follows: | |||||
| Net | Transfers | |||||
| movement | between | At | ||||
| At 1.1.19 | in funds | funds | 31.12.20 | |||
| £ | £ | £ | £ | |||
| Unrestricted funds | ||||||
| Unrestricted | 127,265 | 6,481,975 | 1,430,752 | 8,039,992 | ||
| Endowment funds | ||||||
| Expendable Endowment Fund | 4,852,742 | 188,836 | (1,430,752) | 3,610,826 | ||
| TOTAL FUNDS | 4,980,007 | 6,670,811 | - | 11,650,818 |
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continued...
The Hearn Foundation
Notes to the Financial Statements - continued for the Year Ended 31st December 2020
13. MOVEMENT IN FUNDS - continued
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Unrestricted funds Unrestricted Endowment funds Expendable Endowment Fund TOTAL FUNDS |
Incoming resources £ 6,505,244 362,698 6,867,942 |
Resources expended £ (23,269) (594,539) (617,808) |
Gains and losses £ - 420,677 420,677 |
Movement in funds £ 6,481,975 188,836 6,670,811 |
|---|---|---|---|---|
The expendable endowment fund represents non-restricted donations which the trustees use to fund expenditure that is not covered by annual income. Expenditure on the fund represents the value of grants made in the year.
14. RELATED PARTY DISCLOSURES
The only related party transaction for the period was that of the donation received from Mr P Hearn which amounted to £6,699,259 (2019 £163,439) these donations were made without conditions.
15. POST BALANCE SHEET EVENTS
The coronavirus pandemic has not affected the charity's ability to keep providing donations even with the fall in value of the fixed asset investment to £2,376,000
16. FINANCIAL INSTRUMENTS
The carrying amount for each category of financial instrument is as follows:
| 31.12.20 | 31.12.19 | |
|---|---|---|
| £ | £ | |
| Financial assets | ||
| Financial assets measured at amortised cost | 2,782,301 | 1,317,641 |
| Financial assets measured at fair value | 8,875,717 | 4,419,794 |
| 11,658,018 | 5,791,435 | |
| Financial liabilities | ||
| Financial liabilities measured at amortised cost | 7,200 | 13,200 |
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The Hearn Foundation
| Detailed Statement of Financial Activities for the Year Ended 31st December 2020 INCOME AND ENDOWMENTS Donations and legacies Donation by P Hearn Investment income Deposit account interest Total incoming resources EXPENDITURE Charitable activities Grants to institutions Support costs Governance costs Auditors' remuneration Auditors' remuneration for non audit work Property costs Total resources expended Net income/(expenditure) |
31.12.20 £ 6,699,259 2,577 6,701,836 360,741 6,200 1,000 9,469 16,669 377,410 6,324,426 |
31.12.19 £ 163,439 2,667 166,106 233,798 5,600 1,000 - 6,600 240,398 (74,292) |
|---|---|---|
This page does not form part of the statutory financial statements
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