Cinven Foundation
COMPANY REGISTRATION NO. 6428771 CHARITY REGISTRATION NO. 1121875
Cinven Foundation (A company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2020
Cinven Foundation
CONTENTS
| Page | |
|---|---|
| Trustees and professional advisers | 3 |
| Report of the Trustees | 4 |
| Statement of Trustees’ responsibilities | 8 |
| Independent Auditor's Report | 9 |
| Statement of financial activities and income and expenditure account | 13 |
| Balance sheet | 14 |
| Notes to the Financial Statements | 15 |
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Cinven Foundation
TRUSTEES AND PROFESSIONAL ADVISERS
Trustees
Michael Colato David Barker (resigned 15 April 2020) Christopher Good (resigned 23 April 2021) Vanessa Maydon Matthew Sabben-Clare Sarah Verity-Thomas (appointed 23 April 2021)
Secretary
Tracey Perkins
Registered Office
Registered office between 1 January 2020 and 9 November 2020: Warwick Court Paternoster Square London EC4M 7AG
Registered office since 9 November 2020: 21 St James’s Square London SW1Y 4JZ
Bankers
Lloyds Banking Group Plc The Mound Edinburgh EH1 1YZ
Solicitors
Simpson Thacher & Bartlett LLP CityPoint One Ropemaker Street London EC2Y 9HU
Auditor
Deloitte LLP Regency Court Glategny Esplanade St Peter Port Guernsey GY1 3HW
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Cinven Foundation
REPORT OF THE TRUSTEES
The Trustees present their report on Cinven Foundation (company registration number 6428771) (“the Charity” or “the Company”), together with the audited financial statements and the auditor's report for the year ended 31 December 2020. Cinven Foundation is a public benefit entity as defined by FRS 102.
The Report of the Trustees has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption, including the exemption from preparing a strategic report.
Objectives and Activities
The Charity is a vehicle for Cinven’s corporate giving (Cinven is a European private equity management firm).
In setting the Charity’s programme each year, the Trustees have regard to both the Charity Commission’s general guidance on public benefit, and our purpose, to aid the advancement of education through commitments made, mainly to education-related programmes. The Trustees review all proposed grants on a case by case basis to ensure that all grants committed are in accordance with the Charity’s agreed objectives. For charities supported on a continuing basis, future commitments are contingent on receipt of satisfactory progress reports.
Achievements and Performance
The Charity continues to support the following charities:
School-Home Support, an education-related charity. School-Home Support helps disadvantaged, vulnerable and disaffected children overcome the barriers that get in the way of their learning through the support of highly-trained, independent workers in schools.
Impetus – raises money from the private equity industry and its business partners to support selected charities to empower young people to reach their full potential.
Through Impetus, the Charity pledged donations to the four following education related charities in 2020;
ThinkForward intervenes early to ensure young people most at risk of becoming NEET (Not in Education, Employment, or Training) make a successful transition from education into employment.
Place2Be provides emotional and therapeutic services in primary and secondary schools, building children's resilience through talking, creative work and play.
IntoUniversity offers an innovative programme that supports young people from disadvantaged backgrounds to attain either a university place or another chosen aspiration.
City Gateway - is a charity based in East London, offering support, employment and apprenticeship opportunities for young people, women and families. Based in East London, they are a charity working with young people, women and families to give them the skills, experience and qualifications they need to achieve their ambitions. And through what they do, they help change society.
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Cinven Foundation
REPORT OF THE TRUSTEES (CONTINUED)
Achievements and Performance (continued)
SEO - prepares talented students from ethical minorities or low socio-economic backgrounds for career success.
Stonewall - campaigns for the equality of lesbian, gay, bi and trans people across Britain. Their priorities include empowering individuals, transforming institutions to create inclusive and accepting cultures, changing hearts and minds, and changing and protecting laws for equality of the LGBT community.
The Opportunity Network (OppNet) - works with students from historically and systematically underrepresented communities in developing their skills, knowledge, and passions to achieve their college and career goals, honouring the identities and embracing the power of each member of our community.
Donations relating to Covid-19
During 2020 the Charity supported various Covid-19 relief efforts in the United Kingdom and overseas. As part of this initiative, donations were made by the Company to St. Mark’s Hospital Foundation, the University of Oxford Development Trust and The National Emergencies Trust in the UK as well as various local initiatives in France, Germany, Italy, Luxembourg and Spain.
Other charitable donations
Individual Cinven employees make financial donations and time commitments to a number of charities. The Charity recognises this and has matched employee donations to 54 charities in 2020 (2019: 53).
Governing Document
The Charity is a charitable company limited by guarantee, incorporated on 16 November 2007 and registered as a charity on 7 December 2007. It was established under a Memorandum of Association which established the objectives and powers of the charity and is governed under its Articles of Association. In the event of the Charity being wound up members are required to contribute an amount not exceeding £1.
Structure, Governance and Management
Trustees
The Directors of the Charity are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. The Trustees who served during the year and since the period end are listed on page 3. The Trustees of the Charity meet quarterly, or less frequently as required, to review the Charity’s grants. The quorum for each meeting is three Trustees.
Appointment of Trustees is governed by the Articles of Association of the Charity. The Board of Trustees is authorised to appoint new Trustees to fill vacancies arising through resignation or death of an existing Trustee. If the number of Trustees falls below three for any reason, the Trustees must take steps to bring the number up to at least three.
Related Parties
Cinven Services Limited is the sole member of the Charity. One of the Trustees, Mr Colato, is a director of Cinven Services Limited and may benefit financially from the activities of Cinven Services Limited, but not the Charity itself. No trustees are remunerated for their services as trustees.
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Cinven Foundation
REPORT OF THE TRUSTEES (CONTINUED)
Trustee Training Policy
There is no formal Trustee training policy, but all Trustees are professionally qualified individuals who participate in continuing professional development in the course of their professional duties.
Risk Management
The Charity’s principal risk is a reduced funding commitment from Cinven, which would impair its ability to pay the grants it is committed to. The Charity mitigates this risk by receiving a two year funding commitment and the Trustees ensure that any grants from the Charity are matched by this committed revenue. The Trustees consider the risks associated with governance to be low and meet regularly to discuss and review the operation of the Charity and the activities which the Charity supports. The Trustees are all experienced investment professionals, some of whom are also Chartered Accountants. In addition, the Trustees obtain expert professional advice where appropriate.
Financial Review
During the year ended 31 December 2020, voluntary income of £1,441,788 (2019: £296,555) was received comprising funding commitments from Cinven. Investment income was £38 (2019: £92), relating to bank interest. The Charity made commitments of £1,449,917 (2019: £270,444), as detailed in note 4. The Charity’s net assets amount to £27,193 at 31 December 2020 (2019: £35,566).
Investment Policy
The Trustees’ current policy is to place any cash balances in an interest bearing deposit account. The Trustees will review this policy on an ongoing basis.
Future Developments
The Charity plans to continue the activities mentioned in future years subject to satisfactory funding arrangements. The Trustees are confident that the Charity will continue to be supported by Cinven for the foreseeable future. During the year ending 31 December 2020, Cinven Partners LLP provided support to the charities through the use of staff and premises. From 1 April 2021, this support has been provided from Cinven Limited. A gift in kind has not been recognised in the accounts as it is not easily quantifiable.
Reserves Policy
The Charity’s administration costs are small. There are no ongoing commitments due to day to day administration support from Cinven Partners LLP and therefore the Trustees believe the Charity does not need to maintain significant reserves. From 1 April 2021, this administration is provided by Cinven Limited. Uncommitted reserves freely available for current activities amount to £27,193 (2019: £35,566) as shown in note 10. The Trustees will continue to identify opportunities to make grants in furtherance of its objectives.
The Trustees review this policy annually, or if there are any significant changes to its commitments or activities.
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Cinven Foundation
REPORT OF THE TRUSTEES (CONTINUED)
Going Concern
The Trustees have reviewed the voluntary income, commitments and cashflows of the Charity for the coming 18 months. The Charity is the vehicle for Cinven’s corporate giving and consequently the Trustees have detailed knowledge of the financial position of Cinven which enables them to conclude that the Charity has the financial resources, via its commitments from Cinven, to meet its obligations. Accordingly, the Trustees deem it appropriate to adopt the going concern basis in preparing the annual report and accounts. (Risk management in relation to the Charity is discussed in the Report of the Trustees, above).
During the period from the date of the Statement of Financial Position to the date that the Financial Statements were approved, the coronavirus (COVID-19) outbreak has continued to cause extensive disruptions to businesses and economic activities globally. The uncertainties over the emergence and spread of COVID-19 have caused market volatility on a global scale. The quantum of the effect on the Charity is difficult to determine, however the Trustees are monitoring the situation and considering the effect it may have on the Charity in the future.
Auditor
Each of the persons who is a trustee at the date of approval of this report confirms that:
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so far as the Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and
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the Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provision of s418 of the Companies Act 2006.
Deloitte LLP have indicated their willingness to be reappointed for another term and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.
Approved by the Board of Trustees and signed on behalf of the Board
Tracey Perkins Secretary 10 June 2021
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Cinven Foundation
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The Trustees (who are also directors of Cinven Foundation for the purposes of company law) are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including The Financial Reporting Standard applicable in the UK and the Republic of Ireland (“FRS 102”).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and 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 trustees 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 Charities SORP;
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make judgments and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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Cinven Foundation
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
In our opinion the financial statements of Cinven Foundation (the ‘charitable company’):
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give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, 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 Companies Act 2006.
We have audited the financial statements which comprise:
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the statement of financial activities and income and expenditure account;
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the balance sheet; and
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the related notes 1 to 12.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.
We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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 charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work
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Cinven Foundation
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
Other information (continued)
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.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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.
We considered the nature of the charitable company’s industry and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud
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Cinven Foundation
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)
and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the charitable company operates in, and identified the key laws and regulations that:
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had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Charities Act, UK Companies Act 2006; and
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do not have a direct effect on the financial statements but compliance with which may be fundamental to the charitable company’s ability to operate or to avoid a material penalty. These included the Charity Commission for England and Wales (Charity Commission ) .
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our specific procedures performed to address them are described below:
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there is an increased risk of material misstatement arising from incomplete recording of donation income. This significant risk was also considered a fraud risk. In responding to the identified fraud risk, we performed an understanding of controls around donation receipts and reconciled a sample of receipts to bank statements and trustee meetings minutes; and
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there is an increased risk of material misstatement arising from inaccurate recording of charitable expenditure. This significant risk was also considered a fraud risk. In responding to the identified fraud risk, we performed an understanding of controls around charitable expenditure and agreed a sample of expenditures to grant agreements and related approval minutes.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
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reading minutes of meetings of those charged with governance.
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Cinven Foundation
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
Report on other legal and regulatory requirements
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the directors’ report included within the trustees’ report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:
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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
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees’ remuneration specified by law are not made; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the trustees’ report and from the requirement to prepare a strategic report; or
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we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
David Becker For and on behalf of Deloitte LLP Statutory Auditor St Peter Port, Guernsey
Date: 10 June 2021
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Cinven Foundation
STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT
Year ended 31 December 2020
| Note Income from: Donations 2 Investment income Total income Expenditure on: Other costs 3 Charitable activities 4 Total resources expended Net movements in funds Reconciliation of funds Net movements during the year Total funds brought forward as previously reported Total funds carried forward 10 |
2020 2019) £ £ |
|---|---|
| 1,441,788 296,555 38 92 |
|
| 1,441,826 296,647 (282) (144) (1,449,917) (270,444) |
|
| (1,450,199) (270,588) |
|
| (8,373) 26,059 |
|
| (8,373) 26,059 35,566 9,507 27,193 35,566 |
All income for the current and preceding years was derived from continuing activities and relates to unrestricted funds.
The statement of financial activities includes all gains and losses recognised in the period.
The notes on pages 15 to 20 form an integral part of the financial statements.
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Cinven Foundation
BALANCE SHEET
31 December 2020
| Note CURRENT ASSETS Cash at bank and in hand CREDITORS FALLING DUE WITHIN ONE YEAR 9 NET CURRENT ASSETS NET ASSETS THE FUNDS OF THE CHARITY UNRESTRICTED INCOME FUNDS Unrestricted general funds 10 TOTAL CHARITY FUNDS |
2020 2019) £ £ |
|---|---|
| 61,183 36,629 |
|
| 61,183 36,629 (33,990) (1,063) |
|
| 27,193 35,566 |
|
| 27,193 35,566 |
|
| 27,193 35,566 27,193 35,566 |
The notes on pages 15 to 20 form an integral part of the financial statements.
The accounts have been prepared in accordance with the provision applicable to companies subject to the small companies regime.
The financial statements of Cinven Foundation (registered number 6428771) were approved by the Board of Trustees and authorised for issue on 10 June 2021.
Signed on behalf of the Board of Trustees
M A Colato
Trustee
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Cinven Foundation
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2020
1. Accounting policies
These financial statements have been prepared under United Kingdom Accounting Standards in accordance with the Financial Reporting Standard 102 (“FRS 102”), the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the charities SORP 2019, effective 1 January 2019.
The Charity is a charitable company limited by guarantee, incorporated in the United Kingdom on 16 November 2007 and registered as a charity on 7 December 2007. On 9 November 2020 the Charity changed its registered address to 21 St James’s Square London SW1Y 4JZ. It was established under a Memorandum of Association which established the objectives and powers of the charity and is governed under its Articles of Association. In the event of the Charity being wound up members are required to contribute an amount not exceeding £1.
The functional currency of the Charity is considered to be pounds sterling because that is the currency of the primary economic environment in which the Charity operates. The financial statements are also presented in pounds sterling.
Going concern
The Trustees have reviewed the voluntary income, commitments and cashflows of the Charity for the coming 18 months. The Charity is the vehicle for Cinven’s corporate giving and consequently the Trustees have detailed knowledge of the financial position of Cinven which enables them to conclude that the Charity has the financial resources, via its commitments from Cinven, to meet its obligations. Accordingly, the Trustees deem it appropriate to adopt the going concern basis in preparing the annual report and accounts. (Risk management in relation to the Charity is discussed in the Report of the Trustees, page 4 to 7).
Income
All incoming resources are included in the statement of financial activities when the Charity is entitled to the income, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income:
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Voluntary income received by way of grants is included in full in the Statement of Financial Activities when notification is received from Cinven Partners LLP (Cinven Limited since 1 April 2021) and there is entitlement probability of receipt and the amount can be measured reliably.
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Investment income is included on a receivable basis. All investment income arises from interest bearing deposit accounts (including treasury deposits).
Expenditure
Expenditure is recognised on an accruals basis. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates:
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Charitable activities include costs incurred in furtherance of the Charity’s objectives.
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Governance and support costs include costs associated with meeting the constitutional and statutory requirements of the Charity and include the audit fees and costs linked to the legal advice of the Charity.
Foreign currencies
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the Income and Expenditure account.
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Cinven Foundation
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2020
Accounting policies (Continued)
Funds structure
All funds are unrestricted income funds.
Grant and donations
Grants and donations to beneficiaries are accounted for on a committed basis. Commitments are recognised as liabilities when a constructive obligation arises that results in future payments being unavoidable.
Cash at bank and in hand
The balances relate to the company’s UK held bank accounts for all cash transactions.
Cash flow statement
The Company has taken the exemption under the charities SORP (FRS 102) not to present a cash flow statement as it meets the definition of a small company.
Legal status of Company
The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
Financial Instruments
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the Charity’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.
2. Income from donations
| Donations | 2020 2019 £ £ |
|---|---|
| 1,441,788 296,555 |
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Cinven Foundation
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2020
3. Other costs
The Charity allocates its support costs as shown in the table below:
| Governance and Support costs External audit Tax Fees Bank charges Foreign exchange loss/(gain) |
2020 2019 £ £ |
|---|---|
| 100 100 52 50 84 25 46 (31) 282 144 |
All support costs are allocated to grant giving.
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Cinven Foundation
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2020
4. Charitable Activities
Grants committed and paid in the year to 31 December 2020 and 31 December 2019 are listed below:
| Impetus – private equity foundation pledged donations (£125,000 commitment) - ThinkForward - Place2Be - IntoUniversity - City Gateway - Impetus – general fund The Charity’s direct commitments - The Children’s Literacy Charity - School Home Support - Opportunity Network (U.S. Charity) - Impetus – transforming lives dinner - Stonewall - SEO - Grants of £10,000 or less Covid-19 Donations - UK – St Mark’s Hospital Foundation - UK - University of Oxford Development Trust - UK – The National Emergencies Trust - Overseas Covid donations |
2020 2019 £ £ |
|---|---|
| 29,000 29,000 25,000 25,000 25,000 25,000 25,000 25,000 21,000 21,000 - 20,000 10,000 10,000 25,000 25,000 - 25,000 6,000 6,000 50,000 21,500 61,033 37,944 710,456 - 125,000 - 125,000 - 212,428 - 1,449,917 270,444 |
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Cinven Foundation
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2020
5. Staff costs
The Charity does not directly employ any individuals (2019: none). As described in the Trustee’s report the Charity receives administration support from Cinven Partners LLP in which it cannot easily quantify and does not recognise in the accounts.
6. Trustee remuneration and related party transactions
None of the Trustees received any remuneration during the year (2019: £nil), nor have they been reimbursed by the Charity for any expenses incurred in carrying out their duties.
Cinven Services Limited is the sole member of the Charity. One of the Trustees is a director of Cinven Services Limited and may benefit financially from the activities of Cinven Services Limited, but not the Charity itself.
Donations made by the Charity are funded by Cinven Partners LLP (Cinven Limited since 1 April 2021). The Trustees may benefit financially from the activities of Cinven Partners LLP, but not the Charity itself.
During the year voluntary income of £1,441,788 (2019: £296,555) was received from Cinven Partners LLP. There were no other related party transactions other than the ones described above.
7. Movement in total funds for the year
This is stated after charging auditor’s remuneration of £100 (2019: £100), which related solely to the external audit. No non-audit services were received.
8. Taxation
As a Charity, Cinven Foundation is exempt from tax on income and gains falling within Chapter 3, Part 11 of the Corporation Tax Act 2010 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity (2019: nil).
9. Creditors falling due within one year
| Accruals Trade creditors |
2020 2019 £ £ 10,251 200 23,739 863 33,990 1,063 |
|---|---|
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Cinven Foundation
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Year ended 31 December 2020
10. Reconciliation of movements in Charity’s funds
| Reconciliation of movements in Charity’s funds | |
|---|---|
| Incoming resources Resources expended Opening Funds Closing Funds |
2020 2019 £ £ |
| 1,441,826 296,647 (1,450,199) (270,588) 35,566 9,507 |
|
| 27,193 35,566 |
11. Ultimate parent company
The Trustees regard Cinven Services Limited, a company incorporated in the United Kingdom and registered in England and Wales, whose principal activity is to provide support services to Cinven Partners LLP, as the immediate and ultimate parent and controlling party. Copies of Cinven Services Limited's financial statements can be obtained from The Registrar of Companies, Crown Way, Maindy, Cardiff CF14 3UZ.
12. Subsequent events
There are no events after the end of the reporting period.
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