Registered Company No: 06314343 Registered Charity No: 1120148
The Goldman Sachs Charitable Gift Fund (UK) (a company limited by guarantee)
Report and financial statements for the year ended 30 June 2022
The Goldman Sachs Charitable Gift Fund (UK)
Contents
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| 1 | 8 | ||||
| 9 |
11 | ||||
| Statement of financial activities | 12 | ||||
| Balance sheet | 13 | ||||
| Statement of cash flows | 14 | ||||
| Notes to the financial statements | 15 |
26 |
The Goldman Sachs Charitable Gift Fund (UK)
for the year ended 30 June 2022
The directors, who are also the trustees of The Goldman Sachs Charitable Gift Fund (UK) (the Fund ), present their report and audited financial statements for the financial year ended 30 June 2022, which have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS 102)) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006, and the Charities Act 2011.
Objectives and activities for the public benefit
The objects of the Fund are to promote for the public benefit the advancement of education, the relief of poverty, the advancement of religion and any other exclusively charitable purposes in both English and Welsh law and United States' law. In furtherance of these objects the Fund focuses on supporting charities and charitable activities that build and stabilise communities, increase educational opportunities, advance health, relieve poverty, promote the arts and culture, provide humanitarian relief and further any other charitable purposes.
The ongoing strategy of the Fund is to make grants pursuant to its objects from donated funds solicited from The Goldman Sachs Group, Inc, and its predecessors, subsidiaries, affiliates and successors , and current and former senior employees of Goldman Sachs. The Fund, including its Hong Kong branch, operates as a donor advised fund whereby the directors establish donor accounts for individual donors to make recommendations, although the ultimate decision for the distribution of funds rests solely with the directors of the Fund. Consequently, the directors consider that it is appropriate to disclose the funds as unrestricted. The directors pursue a broad strategy of ensuring proper due diligence in the assessment of grant applications with regard, among other things, to:
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proper identification of grant recipients;
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establishing that grant purposes are charitable in both English and Welsh law and United States' law; and
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ensuring the legality of making grants to the recipients.
The Fund is formally recognised by HM Revenue & Customs as a charity for tax purposes within the United Kingdom. The Fund is also the wholly owned subsidiary of, and has elected to be treated for United States federal tax purposes as a disregarded entity of, The Goldman Sachs Charitable Gift Fund, which has been recognised by the United States Internal Revenue Service as a tax-exempt organisation.
The directors have paid due regard to th the Charities Act 2011, when reviewing the objects and ongoing strategy of the Fund. In particular, the directors have considered whether grants being awarded by the Fund are for the public benefit. The Fund has established its grant making policy to achieve its objects for the public benefit. The Fund ensures that proper due diligence is undertaken to establish that proposed projects are charitable. In n terms either requiring reporting or entitling the Fund to require reporting at its discretion, and in all cases restrict private benefit to donors to the Fund (and those connected with them).
1
The Goldman Sachs Charitable Gift Fund (UK)
for the year ended 30 June 2022 (continued)
Strategic report
Achievements and performance
benefit. In this financial year, the Fund has continued to receive donations and ensure that funds are held securely and invested, ensure that processes are in place to enable grant recommendations to be examined with the requisite detail, intended grant purposes and recipients scrutinised appropriately, and grants made subject to appropriate grant conditions, including conditions as to monitoring.
Grants awarded during the financial year amounted to US$3,912,910 (2021: US$2,949,230).
The Fund does not raise funds from members of the general public beyond Goldman Sachs, its predecessors, subsidiaries, affiliates and successors and current and former senior employees of Goldman Sachs. Therefore, additional fundraising disclosures as required by the Charities (Protection and Social Investment) Act 2016 are not required.
Financial review
During the financial year, income of US$2,292,189 (2021: US$10,227,429) was received. This income was applied to furthering the objects of the Fund and the directors made grants totalling US$3,912,910 (2021: US$2,949,230) during the financial year.
The net movement in funds for the financial year, as shown in the statement of financial activities, shows an expenditure in the year of US$5,514,908 (2021: surplus of US$10,474,011).
During the financial year, the Fund received donated investments in publicly traded securities amounting to US$1,016,230 (2021: US$1,480,598). Please refer to the Grant making section on page 3 for details of grants made in the year.
assets at 30 June 2022 is US$25,627,408 (2021: US$31,142,316).
Investment policy and performance
In accordance with Clauses 3.8 and 3.9 of the Articles of Association the directors have the power to invest in such stocks, shares and investments as they see fit, and, subject to certain limitations, the power to delegate the management of such investments to a financial expert. Mindful of their duties as charity trustees to act prudently and to diversify the investments of the Fund appropriately, the directors engage and Goldman Sachs Asset Management International as investment manager of the Fund pursuant to a Discretionary Advisory and Administrative Services Agreement. The fees of GSAM and GSAMI are not paid for by the Fund, but are donated by Goldman Sachs. The investment policy as adopted in November 2007 and amended thereafter is subject to regular reporting and review and may be amended by the directors as necessary. The directors consider the grant requirements each year and the amount of investment income that will be generated from the investments held.
The directors have monitored the performance of investments in the financial year by reviewing regular investment reports to minimise the risks to the Fund. During the financial year, investments were disposed at a realised gain of US$597,475 (2021: US$1,899,304) and decreased in value by US$4,095,640 (2021: increased by US$1,689,269) as a result of unrealised losses or gains on the revaluation of investments. Investment income in the financial year amounted to US$136,632 (2021: US$77,294).
2
The Goldman Sachs Charitable Gift Fund (UK)
for the year ended 30 June 2022 (continued)
Strategic report (continued)
Policy statement on reserves and going concern
The funds at 30 June 2022 amounted to US$25,627,408 (2021: US$31,142,316) and this level of reserves is considered to be appropriate and acceptable by the directors taking into account plans for grants to be awarded in future years. The directors review the outstanding reserves at the end of each year to ensure that any future grant making will be aligned to the recommendations of each donor and that the Fund will continue to have substantially adequate funds to be able to meet its payment obligations to any outstanding creditors and meet its future financial commitments. The Fund does not have any programme related or mixed motive investments, or any designated or restricted funds. The level of grants distributed in the financial year and the funds available for expenditure are consistent with this approach. The Fund historically has spent a significant percentage of its reserves in any given year and the typical donor recommends spending within a few years the vast majority of .
These financial statements have been prepared on the going concern basis and in accordance with the historical cost convention as modified by the revaluation of investments to fair value.
The directors have considered the impact of inflation, the war in Ukraine and the Coronavirus ( COVID-19 ) pandemic operating, on the basis that adequate reserves are available to fund the activities of the Fund for the foreseeable future. Goldman Sachs have indicated that they would continue to provide donations and any funding to the Fund to enable the Fund to meet any future liabilities which the Fund would not be able to meet from its existing reserves. The directors have no reason to believe that Goldman Sachs will not continue to make donations to the Fund and not be in a position to provide funding and support. The directors, having considered the availability of any future funding by Goldman Sachs, if it should be required, have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability the directors have a reasonable expectation that the Fund will be able to continue in operational existence for the foreseeable future.
Grant making
Charities Aid Foundation America A Sachs, review grant eligibility applications and other requests for grant funding on behalf of the directors. Subject to the express approval of each grant application by a director or an officer of the Fund on behalf of the Board of in the financial year of US$3,912,910 (2021: US$2,949,230) were to support charities that build and stabilise communities, increase educational opportunities, advance health, relieve poverty, promote the arts and culture, provide humanitarian relief and to further other exclusively charitable purposes under English and Welsh law and United States' law. Given that the Fund is a donor advised Fund, the directors do not utilise Key Performance Indicators to measure the activity of grant making.
3
The Goldman Sachs Charitable Gift Fund (UK)
for the year ended 30 June 2022 (continued)
Strategic report (continued)
Principal risks and uncertainties
The directors consider that the Fund has the following principal risks and uncertainties and have determined strategies for managing those risks as set out further below
Market, credit, currency and interest rate risk
Investments are exposed to various risks, such as market, credit, foreign currency and interest rate risk. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the fair value of such investments, it is at least reasonably possible that changes in risks in the near term could materially affect the net assets of the Fund. The Fund has investment strategies and policies in place to mitigate these risks.
Concentration risk
The Fund maintains custody accounts with Fidelity and believes they are reputable custodians. However, there is no guarantee that Fidelity will not become insolvent. While Fidelity is a member of the Securities Investor Protection Corporation, and while the U.S. Bankruptcy Code, SEC 15c3-3 Customer Protection Rule and Securities Investor Protection Act of 1970 seek to protect customer property in the event of a failure, insolvency or liquidation of a broker-dealer, there is no certainty that, in the event of a failure of a broker-dealer that has custody of the Fund's assets, the Fund would not incur losses due to its assets being unavailable for a period of time, ultimately less than full recovery of its assets, or both. Because substantially all of the Fund's assets are in the custody of this broker, such losses could be significant and could materially impair the ability of the Fund to achieve its charitable objectives.
Inflation
The impact of economic matters that have arisen in 2022, in particular rising inflation, on the regional and global economy remains uncertain and is difficult to assess in terms of duration and severity. For these financial statements, the recent economic matters are considered to be non adjusting events and consequently there is no impact on the recognition and measurement of assets and liabilities as at 30 June 2022. The Fund will continue to monitor market conditions and to evaluate the potential impact, if any, on its operations going forward.
War in Ukraine
The invasion of Ukraine by Russia on 24 February 2022 has led to significant sanctions against Russia. The Fund has no ongoing exposures to, or investments in, Russian related interests, and the conflict is not expected to have any impact on the company at this time.
COVID-19
The World Health Organisation declared the COVID-19 outbreak to be a pandemic in recognition of its rapid spread across the globe, with over 150 countries now affected. Many governments have taken steps to help contain or delay the spread of the virus. There is a significant increase in economic uncertainty which is, for example, evidenced by a currently decreased demand of products, more volatile asset prices and currency exchange rates.
The Fund's income mainly from donations and donated investments from Goldman Sachs and current and former employees of Goldman Sachs has decreased by 79% from the prior year. The Fund also receives continuation to donate funds.
4
The Goldman Sachs Charitable Gift Fund (UK)
for the year ended 30 June 2022 (continued)
Strategic report (continued)
Principal risks and uncertainties (continued)
Strategies for managing those risks
The Fund has a risk management process that ensures that appropriate steps are taken to mitigate risk. The directors have assessed the above risks and are satisfied that reasonable steps are being taken to mitigate exposure to these risks. The directors have overall responsibility for ensuring that the Fund has a system of internal control to mitigate the risks identified.
In respect to specific financial risks investments, the directors approve the level of grants to be awarded taking into account the funds available, and ongoing expenses are entirely reimbursed by Goldman Sachs. Sufficient reserves have been allocated for working capital needs and there are no long-term borrowings.
In respect to COVID-19 risks impacting the Fund, the directors have considered the current strategy of Goldman Sachs and have confirmed that their intention is to continue to donate at a level consistent with prior years. The directors have also considered the recent results of Goldman Sachs including those since the COVID-19 pandemic and based on these consider that Goldman Sachs will be able to continue to donate to the Fund for a period of at least 12 months from the date of approval of these financial statements. The Fund's other income is derived from its investments. The directors continue to monitor the performance of investments as a result of the impact of COVID-19. Overall, the directors do not expect significant disruption to the Fund's charitable activities going forward.
Plans for future periods
The Fund aims to encourage its donor pool (including employees and former employees of Goldman Sachs) to seek out opportunities to recommend grants to high-impact charitable organisations which advance the charitable objects of the Fund. The Fund will continue to make grants, to the extent lawful and prudent, according to those recommendations of donors and the approval of the directors. Over the years, the Fund has honed its due diligence procedures to ensure resources are allocated to their best effect.
Structure, governance and management
Governing documents
The Fund is a charitable company limited by guarantee governed by its Articles of Association.
The sole member of the Fund is The Goldman Sachs Charitable Gift Fund, a non-stock corporation incorporated in the State of Delaware, and operating for exclusively charitable purposes under United States law, with its registered office at Corporate Trust Centre, 1209 Orange Street, Wilmington, County of New Castle, Delaware 19801, USA and Internal Revenue Service tax identification number 11-3813663.
Directors and trustees
The directors and trustees of the Fund, who held office during the financial year and up to the date of signing the financial statements, are as follows:
Jennifer Catherine Evans (appointed 18 November 2021) Peter Matthew Fahey Robert Katz Graham Philip Shaw
5
The Goldman Sachs Charitable Gift Fund (UK)
for the year ended 30 June 2022 (continued)
Structure, governance and management (continued)
Directors and trustees (continued)
The directors of the Fund are also directors and trustees of Goldman Sachs Gives (UK), a charitable company incorporated in England and Wales. Goldman Sachs Gives (UK) receives donations from donors who are required to account for tax in the United Kingdom but not in the United States of America, and is a connected charity of the Fund by virtue of the two charities having The Goldman Sachs Charitable Gift Fund as their respective sole member.
Qualifying third party indemnity provisions
A qualifying third party indemnity provision as defined in Section 234 Companies Act 2006 is in force for the benefit of each of the directors and the company secretary in respect of liabilities incurred as a result of their office, to the extent permitted by law. In respect of those liabilities for which directors may not be year and up to the date of signing the financial statements.
Appointment of directors
The directors are appointed by The Goldman Sachs Charitable Gift Fund pursuant to the F Association. The number of directors appointed shall not be less than three but is not subject to any maximum number. A director of the Fund, who is also a director of The Goldman Sachs Charitable Gift Fund, is appointed to serve for as long as he or she is a director of The Goldman Sachs Charitable Gift Fund. Any other director is appointed for a renewable term of three years.
Induction and training of directors
New directors are briefed on their legal obligations, powers and duties as company directors and charity on the history and structure of the Fund, as well as the decision making processes, policies and the future plans and objectives of the Fund.
Organisation
The directors are responsible for the strategic direction and policy of the Fund and, subject to any prudent delegation to advisers and agents, make all substantive decisions in relation to the Fund. In furtherance of this, the directors meet as and when required. The directors have delegated responsibility to management for the oversight of the Fund. The directors have been supported throughout the financial year by the company secretary to the Fund. The directors may delegate any of their powers or functions to committees but the terms of delegation must be agreed in advance.
The directors meet at least three times per year to review the grant activity of the Fund and investment performance. The directors have established procedures for the examination of grant recommendations and the conduct of due diligence. The conduct of due diligence is delegated to specialist service providers. directors before being made.
No staff were employed by the Fund during the financial year (2021: None). The directors and the key management personnel received US$Nil remuneration in respect of their services to the Fund during the financial year (2021: US$Nil).
No director or key management personnel received any reimbursement of expenses during the financial year (2021: US$Nil). The key management personnel are remunerated by Goldman Sachs and the fair value of the appropriate proportion of their time is included within donated services (see note 2).
6
The Goldman Sachs Charitable Gift Fund (UK)
for the year ended 30 June 2022 (continued)
Structure, governance and management (continued)
The directors are responsible for preparing the d report (including the strategic report) and the financial statements in accordance with applicable law and regulation.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Accounting w (United Kingdom Generally Accepted Accounting Practice). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.
In preparing these financial statements, the directors are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities (FRS 102) effective 1 January 2019;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards, comprising FRS 102 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 charitable company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company cy 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the charitable company information included on the relevant website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Disclosure of information to auditors
In so far as the directors are aware:
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there is no
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the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Independent auditors
The sole member of the Fund has re-appointed PricewaterhouseCoopers LLP as auditors to the Fund during the relevant year for the appointment of auditors by way of written member s resolution.
7
The Goldman Sachs Charitable Gift Fund (UK)
for the year ended 30 June 2022 (continued)
Reference and administrative details
Status
The Goldman Sachs Charitable Gift Fund (UK) is a private company limited by guarantee, company number 06314343. It is registered in England and Wales as a charity, number 1120148.
The registered office is at Plumtree Court, 25 Shoe Lane, London, EC4A 4AU.
Secretary
Benjamin Rader
Independent Auditors
PricewaterhouseCoopers LLP, 1 Embankment Place, London, WC2N 6RH
Solicitors
Bates Wells, 10 Queen Street Place, London, EC4R 1BE
Custodians
Fidelity Brokerage Services LLC, 900 Salem Street, Smithfield, RI 02917, USA
Bankers
Barclays Bank plc, 1 Churchill Place, London, E14 5HP
The d report, including the strategic report, was approved by the directors and signed on their behalf by order of the Board:
Graham Shaw Director
Date:
8
The Goldman Sachs Charitable Gift Fund (UK)
Goldman Sachs Charitable Gift Fund (UK)
Report on the audit of the financial statements
Opinion
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resources and application of resources, including its income and expenditure, and cash flows, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards
have been prepared in accordance with the requirements of the Companies Act 2006.
W which comprise: the balance sheet as at 30 June 2022; the statement of financial activities (incorporating the income and expenditure account) and statement of cash flows for the year then ended; and the notes to the financial statements, which include a description of significant accounting policies.
Basis for opinion
W financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the charitable company in accordance with the ethical requirements that are relevant to
other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collec concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.
In auditing the financial
in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance 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 an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.
9
The Goldman Sachs Charitable Gift Fund (UK)
Goldman Sachs Charitable Gift Fund (UK) (continued)
Strategic Report and Directors report
I report, including the Strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Strategic r report have been prepared in accordance with applicable legal requirements.
In addition, in light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we are required to report if we have identified any material misstatements in the Strategic report and the Director report. We have nothing to report in this respect.
Responsibilities for the financial statements and the audit
Responsibilities of the trustees for the financial statements
A charitable company for the purposes of company law) are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they 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 ch 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 charitable company or to cease operations, or have no realistic alternative but to do so.
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 ort 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.
Based on our understanding of the charitable company, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011 and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journals to manipulate financial results or conceal the misappropriation of assets. Audit procedures performed included:
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obtaining confirmations of cash balances and material investment valuations as at 30 June 2022;
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testing the recognition of grant expenditure in line with terms of the grant awards;
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enquiring of management and the board of trustees, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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reading minutes of meetings of the board of trustees; and
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assessing financial statement disclosures, and testing to supporting documentation, for compliance with applicable laws and regulations.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.
A further description of our responsibilities for the audit of the financia www.frc.org.uk/auditorsresponsibilities. This description forms part of our .
Use of this report
T with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions,
10
The Goldman Sachs Charitable Gift Fund (UK)
Goldman Sachs Charitable Gift Fund (UK) (continued)
accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
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we have not obtained all the information and explanations we require for our audit; or
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
ecified by law are not made; or
the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Daniel Chan (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 2022
11
The Goldman Sachs Charitable Gift Fund (UK)
Registered Company No: 06314343
Statement of financial activities for the year ended 30 June 2022
(incorporating the income and expenditure account)
| Note Income Donations 2 Investment income 3 Total Expenditure Investment management costs 4 Expenditure on charitable activities 4 Total Net (losses) / gains on investments and cash Net (expenditure)/income and net movement in funds for the year 5 Total funds brought forward Total funds carried forward 16 |
2022 Unrestricted funds US$ 2,155,557 136,632 2,292,189 (87,108) (4,221,824) (4,308,932) (3,498,165) (5,514,908) 31,142,316 25,627,408 |
2021 Unrestricted funds US$ 10,150,135 77,294 |
|---|---|---|
| 10,227,429 | ||
| (83,219) (3,258,772) |
||
| (3,341,991) | ||
| 3,588,573 | ||
| 10,474,011 20,668,305 31,142,316 |
All of the Fund's activities are derived from continuing operations.
The statement of financial activities includes all gains and losses recognised in the current and prior year.
The notes on pages 15 to 26 form part of these financial statements.
12
The Goldman Sachs Charitable Gift Fund (UK)
Registered Company No: 06314343
Balance sheet as at 30 June 2022
| Note Fixed assets Investments 7 Current assets Debtors 8 Cash at bank and in hand 9 Creditors: amounts falling due within one year 10 Net current liabilities Net assets The funds of the charity: Unrestricted income funds - General 13 - Fair value reserve 13 Total charity funds 16 |
2022 US$ 25,751,269 2,311 15,127 17,438 (141,299) (123,861) 25,627,408 25,586,418 40,990 25,627,408 |
2021 US$ 31,248,422 |
|---|---|---|
| 3,500 2,147 |
||
| 5,647 (111,753) (106,106) 31,142,316 27,005,686 4,136,630 31,142,316 |
The financial statements on pages 12 to 26 were approved by the Board of directors on and were signed on their behalf by:
Graham Shaw Director
The notes on pages 15 to 26 form part of these financial statements.
13
The Goldman Sachs Charitable Gift Fund (UK)
Registered Company No: 06314343
Statement of cash flows for the year ended 30 June 2022
| Note Cash flows from operating activities Donations received Operating expenses paid Net cash flow (used in) / generated from operating activities Cash flows from investing activities Purchase of investments Proceeds from sales of investments Net cash flow generated from / (used in) investing activities Net increase / (decrease) in cash and cash equivalents 17 Fair value movements on cash 17 Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 9 |
2022 US$ 960,679 (4,100,739) (3,140,060) (6,238,324) 9,391,364 3,153,040 12,980 - 2,147 15,127 |
2021 US$ 8,491,540 (3,185,949) |
|---|---|---|
| 5,305,591 | ||
| (24,206,526) 18,736,998 |
||
| (5,469,528) | ||
| (163,937) 43 166,041 2,147 |
The notes on pages 15 to 26 form part of these financial statements.
14
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022
1 Principal accounting policies
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 financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS 102)) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.
The Fund has adapted the Companies Act formats to reflect the Charities SORP and the special nature
The Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are recognised at historical cost or transactions value unless otherwise stated in the relevant accounting policies.
Going concern
These financial statements have been prepared on the going concern basis and in accordance with the historical cost convention as modified by the revaluation of investments to fair value.
The directors continued to consider the impact of the Coronavirus ( COVID-19 ) pandemic and concluded that t reserves are available to fund the activities of the Fund for the foreseeable future. Goldman Sachs have indicated that they would continue to provide donations as well as any funding to the Fund to enable the Fund to meet any future liabilities which the Fund would not be able to meet from its existing reserves. The directors have no reason to believe that Goldman Sachs will not continue to make donations and provide funding and support to the Fund. The directors, having considered the availability of any future funding by Goldman Sachs, if it should be required, have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the Fund to continue as a going concern. On the that the Fund will be able to continue in operational existence for the foreseeable future.
Critical accounting judgements and estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key areas of estimation and judgement that affect items in the financial statements are as follows:
Judgements:
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Unrestricted funds The Fund operates as a donor advised fund whereby the directors establish donor accounts for individual donors to make grant recommendations, although the ultimate decision for the distribution of funds rests solely with the directors of the Fund. Consequently, the directors consider that it is appropriate to disclose the funds as unrestricted.
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Income Donations received are not restricted in nature and the directors have no restrictions in how they can be spent by the Fund.
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Grants payable Grants are recognised as liabilities after they have been approved by the directors, the recipients have been notified and there are no further terms and conditions to be fulfilled which are within the control of the Fund.
15
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
1 Principal accounting policies (continued)
Critical accounting judgements and estimation uncertainty (continued)
Estimates:
- Revaluation of investments The fair value of investments is obtained from the relevant third party pricing sources for review by the directors taking into account the levels of each type of investment.
Functional currency
The financial statements are prepared in US$, which is the functional currency of the Fund, since this is the currency of the primary economic environment in which the Fund operates. All significant donations received and grants awarded during the year have been in US$.
Income
Donations are credited to the statement of financial activities when entitled, receipt is probable and when the amount can be quantified with reasonable accuracy and valued on date of entitlement. Donated shares are valued at fair value on the date of receipt. Investment income is recognised on a receivable basis and is stated inclusive of recoverable taxation, where appropriate.
Donated services and facilities are included in the financial statements in the period in which they are receivable, where they are quantifiable, and where a third party is bearing the cost. Services provided by or paid for by Goldman Sachs are recorded at fair value to the Fund and include grant processing, key management personnel, administrative services, investment management services, professional and other operating costs (see note 2).
Expenditure
Liabilities are recognised as expenditure when there is a legal or constructive obligation committing the Fund to the expenditure.
Grants, both single and multi-year, if any, are recognised in the financial statements as expenses in the period where paid or unconditionally promised to give, whichever occurs first.
Allocation of support and governance costs
Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs associated with meeting the constitutional and statutory requirements of the Fund. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.
Governance costs and support costs relating to charitable activities are allocated to activities based on the amount spent for each activity. The allocation of support and governance costs is set out in note 4.
Charitable activities
The cost of charitable activities comprise grants to institutions, governance costs and an apportionment of support costs as set out in note 4.
16
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
1 Principal accounting policies (continued)
Foreign currencies
Transactions in foreign currencies are translated into US$ at the rate of exchange ruling at the date of the transaction. Assets and liabilities in foreign currencies are translated into US$ at the rate of exchange ruling at the balance sheet date US$1.2145 : £1 (2021: US$1.3815 : £1). Exchange differences are charged / credited to the statement of financial activities and hence are taken into account in arriving at the net movement in funds.
Taxation
The Fund is a registered charity, and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. VAT is included within expenditure where it is not recoverable.
Fixed asset investments
Investments are included in the financial statements at fair value at the balance sheet date. Realised and unrealised gains and losses are credited or debited to the statement of financial activities in the period in which they arise.
Investments are categorised into a three-level hierarchy, based on the type of inputs to the valuation techniques used, as follows:
Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the Fund can access at the measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.
Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
Debtors
Trade debtors and other receivables are recognised at their transaction price less any allowance for doubtful debts.
Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits with banks and funds that are readily convertible into cash at, or close to, their carrying values, but not held for investment purposes.
Creditors
Trade creditors and other payables are recognised when a past event results in an obligation to transfer funds to a third party and the amount payable can be measured or reliably estimated. Trade creditors and other payables are recognised at their nominal value.
17
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
1 Principal accounting policies (continued)
Fund accounting
The unrestricted fund comprises a general fund which is used to meet the charitable objects of the Fund at the discretion of the directors.
The Fund operates as a donor advised fund whereby the directors establish donor accounts for individual donors to make recommendations, although the ultimate decision for the distribution of funds rests solely with the directors of the Fund, and therefore these funds are unrestricted.
Included within unrestricted funds, if relevant, is a fair value reserve that represents the cumulative unrealised gains on fixed asset investments held.
Financial assets and liabilities
The Fund her Financial Instrument Issues .
(i) Financial assets
Basic financial assets, including other debtors and cash and bank balances are initially recognised at transaction price. Such assets are subsequently measured at amortised cost using the effective interest method.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of financial activities.
Other financial assets, including investments in fixed asset investments are initially measured at fair value, which is normally the transaction price.
Such assets are subsequently carried at fair value and the changes in fair value are recognised in the statement of financial activities.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial instruments, including other creditors are initially recognised at transaction price.
Other creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Grant commitments over one year are discounted to reflect present value.
18
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
2 Donations
| Monetary contributions received Donated investments (see note 7) Donated services and support |
2022 US$ 960,677 1,016,230 178,650 2,155,557 |
2021 US$ 8,491,540 1,480,598 177,997 10,150,135 |
|---|---|---|
Donations of US$773,182 (2021: US$8,255,302) were made by the current and former employees of Goldman Sachs.
Donated investments represent US$1,016,230 (2021: US$1,480,598) made by the employees and former employees of Goldman Sachs.
Donated services and support represent the fair value of services provided by or paid for by Goldman Sachs and include US$87,108 (2021: US$83,219) for investment management services, and US$91,542 (2021: US$94,778) for grant processing, key management personnel, administrative services, professional and other operating costs.
3 Investment income
| Income from fixed asset investments - Dividend income 4 Expenditure Investment management costs Expenditure on charitable activities Investment management costs Expenditure on charitable activities |
Grants US$ - 3,912,910 3,912,910 Grants US$ - 2,949,230 2,949,230 |
2022 US$ 136,632 Allocation of support and governance costs US$ 87,108 308,914 396,022 Allocation of support and governance costs US$ 83,219 309,542 392,761 |
2021 US$ 77,294 |
|
|---|---|---|---|---|
| 2022 US$ 87,108 4,221,824 4,308,932 2021 US$ 83,219 3,258,772 3,341,991 |
19
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
4 Expenditure (continued)
Investment management costs
Donated investment management services
| 2022 | 2021 |
|---|---|
| US$ | US$ |
| 87,108 | 83,219 |
The Fund does not pay fees to GSAM and GSAMI (both are affiliates of Goldman Sachs International (GSI)) for the investment management services they provide. Instead the imputed cost of the fees is included in donated services with a corresponding amount included in income.
Expenditure on charitable activities
| Arts and Culture Community Education Medical Other Arts and Culture Community Education Medical Other |
Grants to institutions US$ 168,022 149,088 3,407,800 137,500 50,500 3,912,910 |
Governance costs US$ 6,911 6,133 140,179 5,656 2,077 160,956 |
Support costs US$ 6,353 5,637 128,859 5,199 1,910 147,958 |
2022 US$ 181,286 160,858 3,676,838 148,355 54,487 |
|---|---|---|---|---|
| 4,221,824 | ||||
| Grants to institutions US$ 154,500 633,007 1,933,760 55,963 172,000 2,949,230 |
Governance costs US$ 8,431 34,544 105,528 3,054 9,386 160,943 |
Support costs US$ 7,785 31,894 97,433 2,820 8,667 148,599 |
2021 US$ 170,716 699,445 2,136,721 61,837 190,053 |
|
| 3,258,772 |
There were a total of 47 (2021: 108) grants made during the year totalling US$3,912,910 (2021: US$2,949,230). Grants were made to support charities that build and stabilise communities, increase educational opportunities, advance health, relieve poverty, promote the arts and culture, and to further other exclusively charitable purposes under English and Welsh law and United States' law. All grants were made to institutions. In line with the Charities SORP, material grants above US$100,000 have been listed below.
20
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
4 Expenditure (continued)
| Grant Name of institution Classification Trustees of Princeton University (a) Education President and Fellows of Harvard College Education Trustees of Columbia University in the City of New York Education Elsai Foundation (b) Community Trustees of the University of Pennsylvania Education Groton School (a) Education Greenwich Country Day School, Inc. Education Education Boston Higashi School, Inc. Education Trustees of the College of the Holy Cross (a) Education Worthless Foundation, Inc. Arts & Culture Other (less than US$100,000) |
2022 US$ 1,111,000 1,086,600 500,000 - 210,000 - 147,900 100,000 - - - 757,410 3,912,910 |
2021 US$ 1,048,980 - - 297,460 - 200,000 - - 100,000 100,000 100,000 1,102,790 2,949,230 |
|---|---|---|
(a) Funds provided for need-based scholarships
(b) Funds provided for need-based programs and support for the environment
Analysis of allocation of governance and support costs
| Investment management costs Charitable activities Investment management costs Charitable activities |
Governance costs US$ - 160,956 160,956 Governance costs US$ - 160,943 160,943 |
Investment management costs US$ 87,108 - 87,108 Investment management costs US$ 83,219 - 83,219 |
Donated grant processing costs US$ - 63,812 63,812 Donated grant processing costs US$ - 70,483 70,483 |
Other grant processing costs US$ - 84,146 84,146 Other grant processing costs US$ - 78,116 78,116 |
2022 US$ 87,108 308,914 |
|---|---|---|---|---|---|
| 396,022 | |||||
| 2021 US$ 83,219 309,542 392,761 |
Governance and support costs are allocated to activities based on the amount spent for each activity.
21
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
4 Expenditure (continued)
Analysis of governance costs
| Audit and accountancy fees Legal fees Donated administrative services Other costs |
2022 US$ 109,110 15,365 27,729 8,752 160,956 |
2021 US$ 113,628 14,099 24,295 8,921 160,943 |
|---|---|---|
5 Net (expenditure) / income and net movement in funds for the year
The net (expenditure) / income and net movement in funds for the year is stated after charging / (crediting):
| - Audit - Other services Net losses / (gains) on investments and cash |
2022 2021 US$ US$ 76,782 79,668 32,328 33,960 3,498,165 (3,588,573) |
|---|---|
6
No staff were employed by the Fund during the financial year (2021: None).
The directors and the key management personnel received no remuneration in respect of their services to the Fund during the financial year (2021: US$Nil). No director and key management personnel received any reimbursement of expenses during the financial year (2021: None). The key management personnel are remunerated by Goldman Sachs and fair value of the appropriate proportion of their time is included within donated services (see note 2).
7 Investments
| Quoted investments Fair value at the beginning of the year Additions at cost Additions - donated investments Disposals Unrealised (losses) / gains on revaluation Fair value at the end of the year Cost at 30 June |
2022 US$ 31,248,422 6,374,956 1,016,230 (8,792,699) (4,095,640) 25,751,269 25,710,279 |
2021 US$ 20,630,945 24,283,820 1,480,598 (16,836,210) 1,689,269 |
|---|---|---|
| 31,248,422 | ||
| 27,111,792 |
22
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
7 Investments (continued)
The fixed asset investments are principally invested in Goldman Sachs Mutual Funds, Money Market Funds and Vanguard Total World Stock. Investments included in the above with a fair value greater than 5% of the total portfolio fair value at 30 June are as follows:
| 2022 US$ Goldman Sachs US$ Treasury Liquid Reserve Fund 9,679,658 Goldman Sachs Global Equity Partners Portfolio 5,198,227 Vanguard Total World Stock 4,443,465 Goldman Sachs Global Fixed Income 2,739,160 Goldman Sachs Global Fixed Income Plus Portfolio (hedged) 1,902,502 The fair value hierarchy of the investments are as follows: Level 1 8 Debtors Other debtors 9 Cash at bank and in hand Cash at bank and in hand 10 Creditors: amounts falling due within one year Accruals |
2021 % US$ % 38 10,946,324 35 20 4,826,535 15 17 6,128,568 20 11 4,197,560 13 7 2,257,000 7 2022 2021 US$ US$ 25,751,269 31,248,422 2022 2021 US$ US$ 2,311 3,500 2022 2021 US$ US$ 15,127 2,147 2022 2021 US$ US$ 141,299 111,753 |
|
|---|---|---|
23
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
| 11 Financial instruments Financial assets Financial assets that are debt instruments measured at amortised cost: - Fixed asset investments - Other debtors Financial liabilities Financial liabilities measured at amortised cost: - Accruals |
2022 US$ 25,751,269 2,311 25,753,580 (141,299) |
2021 US$ 31,248,422 3,500 |
|---|---|---|
| 31,251,922 | ||
| (111,753) |
12 Financial risk management
on pages 4 to 5.
13 Unrestricted income funds
| General Fair value reserve General Fair value reserve |
At 1 July 2021 US$ 27,005,686 4,136,630 31,142,316 At 1 July 2020 US$ 18,220,944 2,447,361 20,668,305 |
Income US$ 2,292,189 - 2,292,189 Income US$ 10,227,429 - 10,227,429 |
Expenditure US$ (4,308,932) - (4,308,932) Expenditure US$ (3,341,991) - (3,341,991) |
Investment gains / (losses) US$ 597,475 (4,095,640) (3,498,165) Investment gains US$ 1,899,304 1,689,269 3,588,573 |
At 30 June 2022 US$ 25,586,418 40,990 25,627,408 At 30 June 2021 US$ 27,005,686 4,136,630 31,142,316 |
|---|---|---|---|---|---|
General
The general fund is used for the furtherance of the objectives of the Fund.
Fair value reserve
The fair value reserve represents the unrealised gains on fixed asset investments.
24
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
14 Analysis of net assets between funds
| At 30 June 2022 Fixed asset investments Debtors Cash at bank and in hand Creditors At 30 June 2021 Fixed asset investments Debtors Cash at bank and in hand Creditors |
General US$ 25,710,279 2,311 15,127 (141,299) 25,586,418 General US$ 27,111,792 3,500 2,147 (111,753) 27,005,686 |
Fair value reserve US$ 40,990 - - - 40,990 Fair value reserve US$ 4,136,630 - - - 4,136,630 |
Total US$ 25,751,269 2,311 15,127 (141,299) 25,627,408 Total US$ 31,248,422 3,500 2,147 (111,753) 31,142,316 |
|---|---|---|---|
15 Capital
The Fund is a company limited by guarantee and has no share capital. In the event of the Fund being wound up, the liability of the sole member, The Goldman Sachs Charitable Gift Fund, is limited to £1.
16 Reconciliation of movements in funds
| Net movements in funds Net (reduction) / additions to funds Opening funds Closing funds |
2022 US$ (5,514,908) (5,514,908) 31,142,316 25,627,408 |
2021 US$ 10,474,011 |
|---|---|---|
| 10,474,011 20,668,305 31,142,316 |
25
The Goldman Sachs Charitable Gift Fund (UK)
Notes for the financial statements for the year ended 30 June 2022 (continued)
17 Analysis of changes in net debt
| Cash at bank and in hand Cash at bank and in hand |
At 1 July 2021 US$ 2,147 2,147 At 1 July 2020 US$ 166,041 166,041 |
Cash flows US$ 12,980 12,980 Cash flows US$ (163,937) (163,937) |
Fair value movements US$ - - Fair value movements US$ 43 43 |
At 30 June 2022 US$ 15,127 15,127 At 30 June 2021 US$ 2,147 2,147 |
|---|---|---|---|---|
Fair value movements represent the realised and unrealised losses on certain amounts relating to cash at bank and in hand being held.
18 Related party transactions
No donations were received from the directors during the year (2021: US$Nil).
The Fund is included in the consolidated financial statements of its sole member, The Goldman Sachs Charitable Gift Fund, which are publicly available and may be obtained from 200 West Street, New York, New York 10282.
Jennifer Catherine Evans and Graham Philip Shaw, directors and trustees of the Fund during the year, are employed by GSI. The investment manager of the Fund, GSAM, and the investment managers of the and GSAMI, are affiliates of GSI. paid for by Goldman Sachs and are included in donated services (see note 2).
Donations of US$773,182 (2021: US$8,255,302) and donated investments of US$1,016,230 (2021: US$1,480,598) were made by the employees and former employees of Goldman Sachs.
Goldman Sachs provides grant processing, administrative services, investment management services, professional and other operating services to the Fund. The fees for such donated services are based upon the cost of time spent by Goldman Sachs employees in providing the services and fees charged. Goldman Sachs has agreed to donate such services to the Fund (see note 2).
19 Ultimate parent undertaking and controlling party
The ultimate parent undertaking and controlling party is The Goldman Sachs Charitable Gift Fund, a charity registered in the USA.
26