Charlty reglstratlon number 1122865 THE DONALD GORDON SECOND FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024
THE DONALD GORDON SECOND FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION Trustees H l Appelbaum W Appelbaum G Gordon A Sternberg M Abel S Tager N Appelbaum Terra Nova Trustees (Pty) Limited (Appointed 20 August 2024) (Appointed 20 August 2024) (Appointed 20 August 2024) (Appointed 20 August 2024) Charlty number 1122865 Reglstered office clo Stonehag8 Fleming 6 St James's Square London United Kingdom SW1Y 4JU Audltor Azets Audit SeNices Ashcombe Court Woolsack Way Godalming Surrey United Kingdom GU71LQ
THE DONALD GORDON SECOND FOUNDATION CONTENTS Page Trustees. report Independent auditor's report Stalement of financial acllvities Balance sheet Stalement of cash flows Notes to the financial stalements 10-16
THE DONALD GORDON SECOND FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 29 FEBRUAR Y 2024 The Truslees present their report and the audited financiel statements of the Foundation for Ihe year ended 29 February 2024. The truslees have adopted the provisions ol the Stalemenl ol Recommended Pra¢llce (SORP) -Accounling and Reporting by Charibes. in preparing the annual report and financial statemenls of the Foundalion. The financial sialements have been prepared in accordance with Ihe accounting policies sel out in note 1 lo the financlal slalemenls and comply wlth Ihe Foundation's governing document, the Trust Deed dated 14 August 2007. the Chanlies Act 2011 and 'Accounling and Reporting by Charities.. Stalemenl of Recommended Practice applicabla to charlts'es preparing their accounts in accordance with the Financial Reporting Slandard applicable in the UK 8nd Republic of Ireland (FRS 102)" (effective 1 January 20191- ObJectlve8 and actfvltlos The Donald Gordon Second Foundats'on Is a charflable trust wlth its main objects being the advancement and Pfomolion of scientific, medical and technological research, educalion. reliel of poverty, promolion and support ol the arts and olher charilable causes. The Trustees believe that the Foundation can make a meaninglul impact on society through slralegically allocating the resources of the Foundation over the medium lo long lerm and th• Foundation is commilled to making a positive and lasting impact on society by supporting various charitable and philanlhropiG iniliatlves and projects for the publlc benefrt, In accordance with the wSshes of the Founder, the Late Slr Donald Gordon. much of the charttable aclmty Is undertaken Ihrough the Foundation's registered Public Benefit Organisalion {PBOI in South Afnca, where the Trustees hav8 been focusing their inttial efforts in relation to current and futur8 public benefit aclivilies. Achlevemonts and performance The Foundation is a beneficiary of the Estate ol the Late Sir Donald Gordon. The principal activrty within the Foundation duflng the financial year under review has been the recelpl and investment deployment ol the distributions from the Estate, which principally look place shortly before and shortly after the beginning ol the financlal year under revlew. In additlon, there were inllial allocations lo beneficiarles lotaling £1.04m dunng the financlal year. The impacl of the FoundalSon's charitable givlng will be increaslngly lell in future year5 and reportod on approprialely, In addilion lo recolving and Investing further dislrlbutions ffom the Estate of Slr Donald Gordon duflng the flnancial year, the Trustees have commenced charitable acllvilies as well as the conslderation and Implemenlalion of appropriate govemance structures and policies, including Distribullon, Reserves. Inveslmenl and Board Composition policies and the consideration of the handling of poiential conllicts of interests. In outline tems. the Foundation 8xp8cts In fijlure to allocate 50 - 75% of its current nel income for charfrtabl? Initiatives and projects annually. once the Foundation's a5set5 are fully Invested. The 8llocation percentage can be adiusled by the Trustees depending on financial performance, available resources and the nalure of projects selected for funding. The Foundation expects to malniain a reserve fund to safeguard against unexpected financial challenges and provide funding lor any emergency charitable giving. The Trustees will also be able to approve specific capilal dislributlons al Iheir discrellon to support agreed charitable Inillallves and projects. The Implementation of the Dlslrlbution and Reserves pollcies 11 be reviewed annually. Flnanclal r•vl•w The Foundation has b8nefited from sub5tanlial distrlbulions made by the Estate of the Late Slr Donald Gordon. This has resulteii in unrestncled reserves at 29 Febnjary 2024 of £94.367.026. For the year ended 29 February 2024. the Foundation generated income from investments totalling £3.526m, made donations lo charitsble entities of £1.043m and generated net income for the year of £2.815m after taking account ol costs and inveslmenl gains. The Foundation has engaged suitable and expenenced advisers, bankers and custodians to safeguard and manage the Foundation's assets, which are managed and deployed in line with the Dislributs'on, Reserves and Investment policies agreed by ihe Truslees. As 81 the financial year end, the assets were slill in the process of being deployed by investment managers wSihin a diversified portlollo across a varlety of assel classes and the full implemenlalion ol thls will be reported on in more delall in fulure years.
THE DONALD GORDON SECOND FOUNDATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 29 FEBRUARY 2024 The Distribution and Reserves policies agreed by the Trustees provide the framework for allocating funds to ensure effectiveness and accountability in the Foundation's charitable endeavours. The policies also determine the level of resetves the Foundation intends to maintain to balance the needs of current and future beneficiaries and adapt and respond to evolving needs, while also ensuring that the Foundation's activities fall within its charitable objects and comply with all required rules and regulalions in the relevant jurisdictions. The Trustees consider that the principal risks and uncertainties currently facing the Foundation relate to the achievement of sufficienl investment returns so as lo be able to generate sufficient resources for charitable beneficiaries, without putting the capital of the Foundation at undue risk either from investment losses or from the impact of ongoing inflation over the medium lo long term. To this end the Trustees have consulted with investment experts who have considered the various return and risk parameters identified by the Trustees and who have constructed an appropriately diversified long-lerm inveslmenl portfolio for the Foundalion. The Trustees carefully monitor and review the portfolio on a regular basis. The Trustees are also concemed with the custodianship of the Foundation's assels and regularfy monitor this, taking into account the slr8ngth and slability of counterpartl8s and appropriate diversification. Plans for future perlods As highlighted above, the Foundation has received substantial funding from the Estate of the Late Sir Donald Gordon and its activities will increase materially in futur8 years. in order to implement and achieve its objectlV8s and safeguard the assets for future public benefit. To this end the Foundation has recently appointed additional trustees {noled below) to add to the Foundation's resources and ability to evaluate beneficiaries. The Foundation will consider distributions to charitable activities that fall within one or more of the charitable objects {as defined in Ihe Trust Deed) and Ihat are exclusively charitable in accordance with the Charities Acl. All projects will be carefully evaluated based on their potential for positive impact, sustainability, and efficiency. A thorough evaluation proc8ss will be conducted for each project to assess its viability. effectiveness. impact and potential risks. The Foundation will maintain appropriate levels of accountability, tracking the progress and outcomes of funded activities. The Foundation may also collaborate with other charitable organisations to maximize the impact of its activities and encourage collective efforts towards common goals. Structure, governance and management The Foundation is a Charitable trust and was registered with the Charity Commission of England and Wales on 19 February 2008 (charity r8gistration number 1122865}. It is governed by a Trusl Deed dated 14 August 2007. The Foundation is also registered as a PBO in South Africa. The Trustees who served during the year and up to the date of signature of the financial statements were: H l Appelbaum W Appelbaum G Gordon D Reynolds J Rossouw A Sternberg M Abel S Tager N Appelbaum Terra Nova Trustees {Pty) Limited {Resigned 30 April 2024) (Resigned 20 August 2024} (Appointed 20 Augusl 2024) {Appointed 20 Augusl 20241 {Appointed 20 Augusl 2024) {Appointed 20 Augusl 2024) The Foundation is required to have at least 3 trustees and a maximum of 10 trustees. Trustees are reappointed annually and the power to appoint new trustees is vested in the exisling Trustees. The existing Trustees are responsible for the induction of new Trustees.
THE DONALD GORDON SECOND FOUNDATION TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 29 FEBRUARY 2024 New trustees have been appointed subsequent to the financial year*nd in particular to add to Ihe Foundalion's resources in relation to key South African projects and to ensure that the Foundation has the requisite skills, abilities and independent input to b8 abl8 to fulfil its obj8Ctives. The Trustees manage and administer the Foundation in line with its objectives. As explained above, the Foundation is in the early stages of its public benefit activities including ongoing consideration of beneficiaries, deployment of assets and implementation of the key policies and governance mechanisms. If the Trustees identify an area where the existing Trustees have limited experience or knowledge, they would consider appointing a new trustee lo fill Ihat knowledg8 gap. The Trustees have also considered their approach to dealing with potential conflicts of interest, to be able to respond appropriately where such conflicts are identified and to ensure that in practice the requisite number of unconflicted trustees are able to act for the Foundation. Further details of this are included in the notes to the annual financial statements. Staternent of Trustees. responslbllltles The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and applicalion of resources of the Foundation for that year. In preparing these financial statements, the Trustees are required to.. Select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial stalem8nts', and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any lime the financial position of the Foundation and enable them to ensure that the financial stalemenls comply with the Charilies Act 2011, the Charity (Account5 and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees confimi that they have complied with the duty in Section 4 of the Charities Act 2011 to have regard to the Charity Commission's general guidan on public benefit. The Trustees, report was approved by the Board of Trustees. H l Appelbaum Trustee A Sternberg Trustee 19 December 2024 Date..
THE DONALD GORDON SECOND FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE DONALD GORDON SECOND FOUNDATION Oplnlon We have audited the financial stalements of The Donald Gordon Second Foundation (the 'Foundalion') for the year ended 29 February 2024 which comprise the statement of financial activities. Ihe balance sheet, the 51atement of cash flows and notes to the financial statements. including significant accounting policies. The financial rewrting framework that has been applied in Iheir preparahon is applicable law and United Kingdom Accounling Standards. Including Financial Reporting Slandard 102 The Financial Reporting Standard applicable In lh8 UK 8nd Republlc or Ireland (United Klngdom Generally Accepted Accounting Practice). In our opinion. the financial statements: give a trLJe and fair view of the stale of the charity s affairs as al 29 February 2024 and of its incoming resource5 and application of resource5, for the year then ended: have been properly prepared in accordance with Uniled Kingdom Generally ACpIed Accounting Practice: and have been prepared in accordance wlth the raqulremenls of the Charities Act 2011. Ba81s for oplnlon We conducled our audil in accordanc• wlth Intorn8tlonal Slandards on Auditing (UK> (ISAS (UK)) and applicabl8 law. Our responsibilities under those stsndards are lurther de5cnbed in the Audilorfs responsibilitie5 lor the audit of the financi81 statements section of our rewrt. We are independent of the Foundation in accordance with the ethical requirements that are relevant to our audil ol the financial statements in the UK. including Ihe FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wilh these requirements. We believe thal the audit evidence we have obtalned is sufficient and appropriate lo provide a basls for our oplnlon. Concluslons relatlng to golng concern In auditing the financial slatements. we have concluded Ihat the Truste6s' use of th6 going coneem basls of accounting in the preparation of the financial stalemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually Of collectively. may cast SnIfICant doubt on the Foundalion's ability lo continue as going concem for a period ol al least e1ve months from when the financlal statements are authorised for issue. Our responslbilities and Ihe responsibSllties of the Trtsstees with respect to going concem are described Sn the relevant sections of this report. Other Information The other information comprises the infonnation included in the annual report other than the financlal ststements and our audilorfs report Ihereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financi81 statements does not cover the other information and we do not express any form of assurance conclLJsSon Ihereon. Our responsibS1Sty Is lo read the olher infomialion and, Sn doing so, conslder whelher the other information is malerially Inconsistent wllh the financlal slatemenls or our knowledge oblairtred in the course of the audit, or otheise appears to be malerially misstated. If we identfy such material inconsistencies or apparent material misstatements. are required to determine whether this gives rise to a material misstatement in the financi81 stalemenls themselves. If, based on the work we have perfonned, we condude that there is m81erial misslatemenl of Ihis other information, we are required lo report thal fact. We have nothlng to report In Ihls regard, Matter8 on whlch wo are requlro<1 lo r•port by •xc•ptlon We have nothing lo report in respect of the followng matters in relation lo which the Charities {Accounts and Reports) Regulations 2008 require us to report to you rf, in our opinion.. the informalion given in the financial statements is inconsisient in any material resped wrth the Trustees, report., or sufficient accounting records have not been kepi; or the financial statements are not in agreement with the accounting records: or we have not received all Ihe Infonnaloon and explanalions we require for our audit.
THE DONALD GORDON SECOND FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE DONALD GORDON SECOND FOUNDATION Rosponslbllltlos of Trusl••8 As explained more fully in the statement of Trustees. responsibilities, the Trusl8es are responsible ft)r the preparation of the fi'nancial ststemenls and for being satisfied that they give a true and fair view. and for such intemal control as the Trustees detemiine is necessary to enable the preparation of financial statements that are free from material misstalement, whether due to fraud or efror. In preparing the linancial ststements. the Trustees are responsible for assessing the Foundation's ability to continue as a going concern, disclosing, as applicable, matters related to going corbcem and using the going concern basis of accounting unless the Trustees either inlend to cease operations. or have no realistic allemative but to do so. Audltof 8 rospon8lbllltles for Iho audtt of tho flnanclal 8tatomenls We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the l and relevant regulations made or having effe¢t thereunder. Our objeclives are to obtain reasonable assurance al)out whether Ihe financial statements as a whole are free from malenal misslatemenl. whether due lo fraud or error. and lo issue an auditor's report thal Includes our opinion. Reasonabl8 assurance is a high lev81 of assurance but is not a guarantee that an audit conducted in accordance th ISAS (UK) will always detect a material misstatement when il exists. Misstatements can 8rise from fraud or error and are considered material if. individually or in the 8ggre9ale, they could reasonably be expected to Inlluence the economlc decislons ol users laken on the basls ol these financlal stalements. A further description ol our responsibilibes is available on the Financial Reporting Councll's website at: https:11 wvNI.frc.org.uklauditorsresponsibilities. This descripts'on fomis part of our auditors report. Ext•nt to whlch the audlt was ¢onsldered capabl• of d•t•ctlng Irr•gularltl•8, Includlng fraud Irregularits'es, including fraud. are instances ol non-compliance with laws and regulations. We design Procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website. to delect material mlsstatements in respecl ol irregularities, includlng fraud. We obtain and update our underslanding of the entity. its activlties, Its control envlronmenl, and Ilkely future developments. including in relation to the legal and regulatory framework applicable and how the entity is complying th that framework. Based on this understsnding. we identsfy and assess the risks of material misstslemenl of the financlal stslemenls. whether due lo fraud or error, design and perfomi audit procedures responsive to those risks. and oblain audit evldence that is sufficient and appropriate lo provlde a basls for our opinion. Thls includes considerallon of the rlsk of acts by Ihe entity Ihal were contrary to applicable laws and regulalions, including fraud. In response lo the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included.. Enqulry of management and th08e tharged with governance around aclual and potenlial lillgallon and claims as w811 as actual. suspected and alleged fraud: Reviewing minutes of meetings of those charged wilh govemance: Assessing the extent of compliance with the laws and regulations considered to have a direct material effecl on the financial statements or the operations of the entity through enquiry and inspection: Reviewing financial statement disclosures and lesting lo supporting documentation to assess compliance with applicable laws and regulations; Performing audit work over the risk of management bias and override of controls, Including testing of journal entries and other adjustments for appropriatene55. evaluating the business rationale of 5ignificanl transactions outside the normal course of busiriess and reviewing accounts'ng estimates for indicators ol potential bias. Because of the inherent limilations of an audit. there is a risk that we will not delect all irregularities, including those leading to a material misstalemenl in the financial stalemenls or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is moVed from the events and transathons reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk ol not delecting 8 material misststemenl resulting from fraud is higher than for one resulting from error. as fraud may involve collusion. forgery, intentional omissions, misrepresentations, or the override of inlemal control.
THE DONALD GORDON SECOND FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE DONALD GORDON SECOND FOUNDATION Use of our report This report is made solely to the charity s trustees, as a body, in accordance wilh part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so thal we might state to the charity's trustees those matters we are required to state lo 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Ats45 £0 Debra Saunders Bsc FCA (Senior Statutory Auditor) for and on behalf of Azets Audit Servicos 20 December 2024 Chartered Accountants Statutory Auditor Ashcomb8 Court Woolsack Way Godalming Surrey United Kingdom GU7 1LQ Azets Audit Services is eligible for appointment as auditor of the Foundation by virtue of its eligibility for appointm8nt as auditor of a company under section 1212 of the Companies Act 2006.
THE DONALD GORDON SECOND FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 29 FEBRUARY 2024 Unrestrlcted Unrestrlcled funds funds 2024 2023 Notes Income from: Donations and legacies Investments 94,904,085 6,115 3,526,352 Total Income 3,526,352 94,910,200 enditure on: Charitable activities 1.225,728 13,675 Net gainslllossesl on investments 514,585 Nel Income for the year 2,815,209 94,896,525 Other recognlsed galns and losses Other gains or losses 11 1230,343) (313,470) Nel movement In funds 2,584,866 94,583,055 Fund balances at 1 March 2023 91,782,160 {2,800,895) Fund balances at 29 February 2024 94,367,026 91,782,160 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
THE DONALD GORDON SECOND FOUNDATION BALANCE SHEET AS AT 29 FEBRUARY2024 2024 2023 Notes Fixed assets Investments 12 94,304,815 Current assets Debtors Cash at bank and in hand 13 67,743,870 24,049,090 98,105 98,105 91,792,960 Creditors: amounts falling due within one year 14 (35,894) (10,8001 Net current assets 62.211 91,782,160 Total a888t8 le88 current Ilabllltle8 94,367,026 91,782,160 Income funds Unrestricted funds Designated funds General unrestricted funds Trust capital 15 1,091,775 93,275,151 100 91,782,060 100 94,367,026 91,782,160 94,367,026 91,782,160 19 December 2024 The financial statements W8re approved by th8 Trustees on H l Appelbaum Trustee A Slernberg Trustee
THE DONALD GORDON SECOND FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 29 FEBRUARY 2024 2024 2023 Notes Cash flows from operating activities Cash generaled from operations 17 66,312,892 26,840,360 Investing activities Purchase of investments Investment income received (93,790,229) 3,526,352 6,115 Net cash (used inllgenerated from Investlng actlvltles 190,263,877) 6,115 Financing activities Repayment of borrowings 12,797,893) Net cash used In flnanclng actlvltles (2,797,893) Net (decrease)Ilncrease In cash and cash equivalents 123,950,985) 24,048,582 Cash and cash equivalenls at beginning of year 24,049,090 508 Cash and cash equlvalants at end of year 98,105 24,049,090
THE DONALD GORDON SECOND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024 Accounting policies Charity information The Donald Gordon Second Foundation is an unincorporated charitable foundation govemed by a deed dated 14 August 2007 and registered in England & Wales on 19 February 2008. The registered office of the charity is clo Stonehage Fleming, 6 St James's Square, London. SW1Y 4JU. 1.1 Accounting convention The financial statements have been prepared in accordance with the Foundation's governing document. th8 Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" I'FRS 102") and the Charities SORP "Accounting and Reporling by Charities.. Statement of Recommended Practice applicable to Charitie5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. (effective 1 January 2019}. The Foundation is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Golng concern At the time of approving the financial statements, the Trustees have a reasonable expectation that the Foundation has adequate resources lo continue in operalional existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of a¢¢ounting in preparing the financial statements. 1.3 Charltable funds Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as lo how they may be used. The purposes and uses of the restricted fvnds are set out in the notes to the financial statements. 1.4 Income Income is recognised when Ihe Foundation is legally enlitled to it after any perfomiance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. C8sh donations are recognised on receipt. other donations are recognised once the Foundation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donalions r8ceiv8d under Gift Aid or deeds of covenant is r8cognised al Ihe time of the donation. Legacies are recognised on receipt or otheiSe if the Foundation has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. 10-
THE DONALD GORDON SECOND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 FEBRUARY 2024 Accounting policies (Continu8d) 1.5 Expendlture Expendilure is recognised once there is a legal or construclive obligalion to transfer economic benefit to a third party. it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are mada up of the lotal of dir8Ct costs and shared costs. including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly lo that activity. Shared costs which contribute to more than one activity and support costs which are nol altributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. 1.6 Fixed asset investments Fixed asset investments ar8 initially measured at transaction price excluding transaction costs, and ar8 subsequently measured al fair value at each reporting date. Changes in fair value are recognised in net incomellexpenditure) for the year. Transaction costs are expensed as incurred. 1.7 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call wilh banks, other short-term liquid investments with original maturities of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.8 Flnanclal Instruments The Foundation has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Foundation's balance sheet when the Foundation becomes party to th8 contractual provisions of th8 instrument. Financial assets and liabilities are offset, with Ihe net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Baslc flnanclal assets Basic financial assets, which include debtors and cash and bank balances, are inllially measured at transaction price including Iransaclion costs and are subsequently carried al amortised cost using the effeclive interest method unless the arrangement conslilutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at Ihe present value of the fvture payments discounted at a market rale of interest. Financial liabilities classified as payable within one y8ar ar8 not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations lo pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction pri and subsequently measured al amortised cost using ihe effective interest melhod. 11
THE DONALD GORDON SECOND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 FEBRUARY 2024 Accounting policies (Continu8d) Derecognltlon of flnanclal Ilabllltles Financial liabililias are darecognised when the Foundation's contractual obligations expire or are discharged or cancelled. 1.9 Foreign exchange Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing al the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are relranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss. Crltlcal accountlng estlmates and Judgements In the application of the Foundalion's accounting policies, the Trustees are required to make judgements, estimates and assumptions about Ihe carrying amount of assels and liabilities that are not readily apparent from oth8r sourc8s. The estimates and associat8d assumplions ar8 based on historical 8XP8ri8nc8 and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumpiions are reviewed on an ongoing basis. Revisions lo accounling estimates are recognised in the period in which the estimate is revised where the rèvision affects only that period, or in the period of the revision and futur8 periods where th8 revision affects both current and future periods. Income from donatlons and legacles Total Unrestricled funds 2024 2023 Donations and gifts 94,904,085 Other Income Unrestricted Unrestricted funds funds 2024 2023 Income from listed investments Interest receivable 3,045,571 480,781 6,115 3,526,352 6,115 12-
THE DONALD GORDON SECOND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 FEBRUARY 2024 Charitable activities Charitable Charitable activities activities 2024 2023 Donations paid 1,042,890 1,751 Share of governance costs (see note 6) 182,838 11,924 1,225,728 13,675 Support costs Support Governance costs costs 2024 Support Governance costs costs 2023 Auditors remuneration Legal and professional Accountancy Bank charges Interest payab18 Management fees 7,200 73,987 7,428 1,112 7,200 73,987 7,428 1,112 6,900 6,900 4,506 515 4,506 515 93,111 93,111 182,838 182.838 11,924 11,924 Analysed between Charitable activities 182,838 182,838 11,924 11,924 Trustees None of the Trustees {or any persons connected with them) received any remuneration or benefits from the Foundation dunng the year. There were no trustees, expenses paid for the year ended 29 February 2024 nor for the year ended 28 February 2023. 13-
THE DONALD GORDON SECOND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 FEBRUARY 2024 Employees The average monthly number of employees during the year was- 2024 Number 2023 Number Total There were no employees whose annual remuneration was more than £60,000. Net gainsl(losses) on investments Unrostrlcled funds Total 2024 2023 Unrealised gain on investments 514,585 10 Taxatlon The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 11 Other galns or108808 Unrestrlcted Unrestricted funds funds 2024 2023 Foreign exchange gainsl{losses) 1230,343) 1313,470) 14-
THE DONALD GORDON SECOND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 FEBRUARY 2024 12 Fixed asset investments Llsted investments Cost or valuatlon At 1 March 2023 Additions Valuation changes 93,790,229 514,585 At 29 February 2024 94,304,814 Carrying amount At 29 February 2024 94,304,814 At 28 February 2023 13 Deblors 2024 2023 Amounts falllng due wlthln one year: Other debtors 67,743,870 14 Credltor8: amounts falllng due wlthln one year 2024 2023 A¢¢wals 35,894 10,800 15 Designated funds The income funds of the charity include the following designaled funds which have been set aside out of unrestricted funds by the trustees for specific purposes.. Balance at 1 March 2023 Transfers Balance at 29 February 2024 Specialist and sub specialist medical training 1,091,775 1,091,775 1,091,775 1,091,775 15-
THE DONALD GORDON SECOND FOUNDATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 29 FEBRUARY 2024 16 Related party transactions During the year, the Foundation has paid donations of £nil {2023= £1,751) to The Donald Gordon Foundation, a Foundation with Truslees in common. The other debtor balance of £67,743.870 at 28 February 2023 was due from the Estate of the Late Sir Donald Gordon. During the year these donations of £67,743,870 {2023'. £27,156,675) were received from the Estate of the Late Sir Donald Gordon. There are executors of Ihe Eslate of Ihe Lale Sir Donald Gordon who are Trust88s of the Foundation. The Foundation incurred £24,794 for administration services provided by Stonehage Fleming Financial Services (Pty) Ltd. The nominee for a Trustee is an employee of Stonehage Fleming Financial Services (Pty} Ltd. At the year end a¢¢ruals included £24,794 owed to Stonehage Fleming Financial SeNices (Pty) Ltd. Additionally, during the year the Foundation incurred costs of £23,52312023'. £nill for adminslrative SeICe8 provided by Exmoor Fiduciary Limited, a company of which trustee A Slernberg is a director. 17 Cash generatad from operatlons 2024 2023 Surplus for the year 2,815,209 94,896,525 Adjustments for.. Investment income recognised in statement of financial activities Foreign exchange differences Fair value gains and losses on investments {3,526,352} (230,343} (514,585} (6,115) 1313,470) Mov8ments in working capital.. Decreasellincreasel in debtors Increase in creditors 67,743,870 25,094 (67,743,840) 7,260 Cash generated from operatlons 66,312.892 26,840,360 16-