Charlty règlstratlon number 1122870 THE DONALD GORDON THIRD FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023
THE DONALD GORDON THIRD FOUNDATION LEGAL AND ADMINISTRATIVE INFORMATION Trustees W Appelbaum G Gordo J Rossouw D Reynolds A Sternberg H l Appelbaum Charity number 1122870 Règlsterèd offlc clo Stonehage Fleming 6 Sl James's Square London United Kingdom SW1Y 4JU Auditor Azels Audit Services Ashcombe Court Woolsack Way Godalming Surrey United Kingdom GU7 1LQ
THE DONALD GORDON THIRD FOUNDATION CONTENTS Page Trustees report Independent auditorfs report statement of financial activities Balance sheet ststement of cash flows Notes to the financial statements 10-15
THE DONALD GORDON THIRD FOUNDATION TRUSTEES REPORT FOR THE YEAR ENDED 28 FEBRUARY 2023 The Trustees present their annual report and financial slalements for the year ended 28 February 2023. The Trustees have adopted the provisions of the Statement of Recommended Practice ISORPI "Accounting and Reporting by Charities" in preparing the annual report and financial statements of the charity. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Trusl Deed dated 14 August 2007, Ihe Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the LIK and Republic of Ireland published in October 2019. Objectives and activities The Donald Gordon Third Found8tion is a charitable trust with ils main objects being the advancement and promotion of scientific, medical and technological research, education, relief of povety, promotion and support ol the arts and other charitable causes. The Trustees believe that the Foundation can make a meaningfLJI impact on society throLJgh slrategically allocating the resources of the Foundation over the medium to long term and the Foundation is committed to making a positive and lasting impact on society by supporting various charitable and philanthropic initiatives and projects for the public benefit. In accordance with the wishes of the Late Sir Donald Gordon, much of the charitable activity will be undertaken through the Foundation's registered Public Benefit Organisalion IPBOI in South Africa, where the Trusltres hava boen focusing their initial efforts in relation lo considering future public benefit a¢livilies. Achievements and perfornian¢e The Foundation is a beneficiary of the South African Esiate of the Lale Sir Donald Gordon. There was very limited activity within the Foundation during the financial year under review although the receipt of initial distributions from the Estate, which mainly took place shortly after the end of the financial year under review, has been accrued for in these accounts as further detailed in the notes to the financial stalernenls. As such all of the impact of the Foundation's charitable giving will be felt and reported on in further detail in future years and hence no specific discussion around the perfortnance of the Foundation is made here. Dislribulions received from the Eslale during the current financial year lending 29 February 20241 are reflected in these financial statements and the Trustees have recently commenced charitable giving 8ctivity 85 well as the consideration and implementstion of appropriate goveman¢e stru¢tures and policies, including Distribution, Reserves and Board Composition poli¢ies and the consideration of the handling of potential ¢onfli¢ts of interests. In outline terms, the Foundation expe¢ts in the medium tem to allocate 51>750k of ils Current nel in¢ome for charitable initiatives and projects annually, once the Foundation's assets have been fully invested. The allocation percentage can be adjusted depending on financial performance and available resources. The Foundation expects to maintain a reserve fund to safeguard against unexpected financial challenges and provide funding for any emergency charitable giving. The Trustees will also be able to approve specific capital distributions at their discretion to support agreed charitable inilialives and projects. The implementation of the Distribution and Reserves policies will be reviewed annually. Financial review The Foundation is 8 beneficiary of the South Afri¢an Estate of the Late Sir Donald Gordon and has sin¢e the end of the financial year under review, benefited from distributions made by the Estate. This has resulted in unrestricted reseNes at 28 FebrLJary 2023 of R141,110,069. For the year ended 28 February 2023, the Trustees have presented the financial statements in South African Rand IZARI, which is the functional currency of the Foundation. The comparative figures for the prior financial year have therefore been restated, as described further in the notes lo the financial staleThenls. The Found81ion has engaged suitable and exp&rien¢ed 8dvis&rs, bankets 8nd ¢uslodians to safeguard and manage these fLJnds, and the funds are and will be managed and deployed in line with the Distribution and Reserves poli¢ies agreed subsequent to the financial year end. The implementation and impact of these policies will be reported on in more detail in fulure years.
THE DONALD GORDON THIRD FOUNDATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023 The Distribution and Reserves policies will provide the framework for allocating funds to ensure effectiveness, and accountability in the Foundation's charitsble endeavours and lo determine the level of reserves the Foundation should maintain to balance the needs of current and future beneficiaries and adapt and respond to evolving needs, while also trnsuring that the Foundation's activities fall within one or more of its charitsble objects and Comply with all required rLJles and regulations in the relevant jurisdictions. The Trusltres considtrr that the principal risks 8nd uncertainties Currently facing the Found8tion r&l8te lo the achievement of sufficient investment returns $0 as to be able to generate sufficient resour¢es for ¢haritable beneficiaries, without putting the capital of the Foundation at undue risk either from investment losses or from the impacl of ongoing inflation over the medium to long term. To this end the Trustees will consult with investment experts who will construct an appropriate long-term investment portfolio for the Foundation having considered the return and risk parameters identified by the Trustees. The Trustees will carefully monitor and review the porttolio on a regular basis. The Trustees are also concerned with the custodianship of the Foundation's assets and regularty monitor this, considering the strength and stability of wunlerparties and appropriate diversification. Plans for future periods As highlighted above, the Foundation has since the financial year end reiVed substantial funding from the Estate of the Late Sir Donald Gordon and has commenced charitable giving activity in line with its objectives. Its activities will increase materially in future years, in order to implement and achieve its objectives and safeguard the assets for future public benefit. The Foundation will consider distributions to chariiable activilies that fall within one or more d the charitable objects las defined in the Trust Deed) and that are exclusively charitable in accordance with the Charilies Act. All projects will be carefully evaluated based on their potential for positive impact, sustainability, and efficiency. A thorough evaluation process will be conducted for each project lo assess ils viability, effectiveness and potential risks. The Foundation will maintain appropriate levels of accountsbility, tracking the progress and outcomes of funded aclivilies. The Foundation may also collaborate with other charitsble organisations to maximize the impact of its activities and encourage collective efforts towards common goals. Structuro, gov8rnance and manag•m8nt The Trust is a charitable trust and was registered with the Charity Commission on 19 February 2008 Icharity registration number 11228701. It is governed by a Trust Deed dated 14 August 2007. The Trustees who served during the year and up to the date of signature of the financial statements were.. WAppelbaum G Gordon J Rossouw D Reynolds A Slernberg H l Apptrlbaum The Foundalion is required have at least three trustees and a maximum of ten trustees. Trustees are reappointed annually and the power to appoint new additional trustees is vested in the existing Trustees. The existing Trustees are responsible for the induction of new Trustees. The Trustees manage and administer the Foundation in line with ils objectives. As explained above, there has been lirniled activity within the Foundation lo dale other than the recent receipt of dislribulions from the Estate of the Late Sir Donald Gordon and the consideration and implementation of the key poli¢ies and goveman¢e MhanISm$, which is ongoing. The Trustees have (since the end of the financial yearl considered a Board Composition policy so that Ihe Trustees can ensure that the Foundation will have the requisite skills, abilities and independent inpLJt to be able to fulfil its objectives. If the Trustees identify an area where the existing Trustees have limited experience or knowledge, they would consider appointing a new trustee lo fill that knowledge gap.
THE DONALD GORDON THIRD FOUNDATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023 The Trustees have also been considering their approach lo dealing with potential conflicts of interest, lo be able to respond appropriately should such conflicts be identified and lo ensure that in practice the requisite nurllber of unconflicted Iruslees are able lo act for the Foundation. The TrLJStees are aware of their duty to act in the best interests of the Foundation and its beneficiaries and that, in line with Charily Commission requirements and the Deed of the Foundation, Trustees should nol place themselves in a position where they have, or may have, a direct or indirect interest that conflicts with their duties as Trustee. This could potentially be relevant given that certain trustees are related to the Estate of the Late Sir Donald Gordon andlor other charitable enlilies established by him during his lifetime. statement of Trustees responsibilities The Trustees are responsible for preparing the Trustees Report and the financial statements in acw[dan with appli¢able law and United Kingdom Accounting Stsndards (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 Trust and of the incoming resources and application of resources of the Trust for that year. In preparing these financial ststemenls, the Trustees are required lo.. select suitable a¢¢oLJnting policies and then apply them Consistently., observe the methods and principles in the Charilies SORP., make judgements and eslimales that are reasonable and prudent; slate whether applicable accounting standards have been followed, subject lo any rllalerial departures disclosed and explained in the financi81 slalements.. and prepare the financial statements on the going concern basis Ljnless it is inappropriate to presLI£ that the charity will continue in operation. The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees report was approved by the Board of Trustees. A Sternberg H l AppelbaLJm 06 March 2024 Dale..
THE DONALD GORDON THIRD FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE DONALD GORDON THIRD FOUNDATION Opinion We have audited the financial stslemenls of The Donald Gordon Third Foundation Ilhe 'Trusl'l for the year ended 28 February 2023 which comprise the statement of financial activities, thè balance sheet, the statement of cash flows and notes to the financial stalements, including significant accounting policies. The financial reporting framework that has been applied in their preparats'on is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic ol Iland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the slate of the charity's affairs as al 28 February 2023 and of its incorning resources and appli¢ation of resources, for the year then ended., have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practi., and hav& betrn prepared in a¢¢ordance with the reqU1ments of the Charities Act 2011. Basis for opinion We conducted our aLJdit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit ol the financial statements section of our report. We are independent of the Trusl in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard, and we have fvlfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In aLJditing the financial ststemenls, we have ¢oncluded that the Trustees usg of the going concern basis ol 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 doubl on the Trust's ability to continue as a going concern for a period of al least twelve months from when the financial slalements 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 olher information comprises the information included in the annual report other than the finala1 statements and our auditor's report thereon. The Trustees are responsible for the other information coniained wilhin the annual report. Our opinion on the financial statements does not cover the other infomiation and we do not express any fomi of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial slalements or our knowledge obtained in the course of the audit. or otherwise appears to be materially misstated. If we identify such malerral inconsistencies or apparent material misstslemenls, we ar& required to determine whelhtrr this gives rise to a material misstslemenl in the financial ststements themselves. If, based on the work we have performed, we Conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which wa are roquired to report by exception We have nothing lo report in respect of the following matters in relation lo which the Charities (Accounts and Reports) Regulations 2008 require us lo report lo you if, in our opinion.. the information given in the financial statements is inconsislent in any material respect with the TrLJStees report., or sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records,. or we have not received all the information and explanations we require for our audit.
THE DONALD GORDON THIRD FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE DONALD GORDON THIRD FOUNDATION Responsibilities of Trustees As explained more fully in the stslemenl of Trustees responsibilities, the Trustees are responsible for the preparation of the financial statements and for bèing 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 Trust's ability to continue as a going concern, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting unless the Trustees either intend lo cease operations, or have no realistic altemalive but to do so. Auditorfs responsibilities for the audit of the financial statements We have been app()inted as auditor under se¢tion 144 of the Charities Act 2011 and report in accordance with the A¢t and relevant regulations made or having effect thereunder. Our obje¢tives are lo obtain reasonable assurance about whether the finan¢ial slalements as a whob are free from material misstatement, whether dLJe to fraud or error, and to issue an audito¢s report that in¢ludes our opinion. Reasonable assLJrance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities is available on the Financial Reporting Council's website al.. htlps'.11 www.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs 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 and on the Financial Reporting Council's website, lo delecl material misstatements in respect of irregularities, including fraud. We obtain and update our understanding of the entity, its a¢tivities, its ¢ontrol environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that frameworf(. Based on this understanding, we identify and assess the risks of material misstalement of the financial siatements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary lo applicable laws and regulations, including fraud. In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included.. Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud., Reviewing minutes of meetings of those charged with governance., Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the enlily through enquiry and inspection., Reviewing financial stslemenl disclosures and lesling to 5UPPOrting documentation to assess compliance with applicable18ws and regulations., Perfoming audit work over the risk of management bias and override of ¢ontrols, including testing ol journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the nomial course of business and reviewing accounting estimates for indicators ol potential bias. Because of the inherent limitations of an audit, there is a risk that we will not delecl all irregularities, including those leading to a material misslalement in the financial stslerllenls or non-complian with regulation. This risk incre8ses the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial ststements, as we will be less likely to become aware of instances of n0cOMpli3n¢&. The risk ol not detecting a material misstatement resulting from fraud is higher than lor one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of intemal control.
THE DONALD GORDON THIRD FOUNDATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE DONALD GORDON THIRD FOUNDATION Other matters The balances corresponding to the previous period are unaudited. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so Ihat we might state to the charity's trustees those matters we are required lo state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than the charity and the charitys trustees as a bodv. for our audit work. for this report, or for the opinions we have formed. Ats+s kuli* £2 -<LQfj Debra Saunders Bs¢ FCA (Senior Statutory Audltorl for and on behalf of Azets Audit Services 7 March 2024 Chartered Accountants Statutory Auditor Ashc0be Court Woolsack Way Godalming Sutrey United Kingdom GU7 1LQ Azets Audit Services is eligible for appoinlrllenl as auditor of the Trust by virtue of ils eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
THE DONALD GORDON THIRD FOUNDATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 28 FEBRUARY 2023 Unrestricted Unrestricted funds funds 2023 2022 ZAR ZAR Notes Donations and legacies 141,564,160 115,060 Charitable activities 353,787 187,695 Net incomellexpenditurel for the year 141,210,373 172,6351 other recognised gains and losses Other gains or losses 10 128,9911 Net movement in funds 141,181,382 172,6351 Fund balances al 1 March 2022 169,2471 3,389 Fund balances at 28 February 2023 141,112,135 169,2461 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derives from continuing aclivilies.
THE DONALD GORDON THIRD FOUNDATION BALANCE SHEET AS AT 28 FEBRUARY2023 2023 2022 ZAR Notes ZAR ZAR ZAR Current assets Debtors Cash at bank and in hand 11 141,451,162 12,753 3,906 141,463,915 3,906 Creditors.. amounts falling due within one year 12 1351,7801 173,1521 Net current assetsllliabilitiesl 141,112,135 169,2461 Income funds nr General unrestricted funds Trust capital 141,110,069 2,066 171,3121 2,066 141,112,135 169,2461 141,112,135 169,2461 06 March 2024 The financial ststements were approved by the Trustees on A Slernberg Truste8 H l Appelbaum Trustèe
THE DONALD GORDON THIRD FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 28 FEBRUARY 2023 2023 2022 ZAR Notes ZAR ZAR ZAR Cash flows from operating a¢tivities Cash generated from operalions 15 8,847 517 Nat cash used In Invèstlng actlvltlas Net ¢a$h used In flnanclng a¢tlvltles Net increase in cash and cash equivalents 8,847 517 Cash and cash equivalents at beginning of year 3,906 3,389 Cash and cash equivalents at end of year 12,753 3,906
THE DONALD GORDON THIRD FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023 Accounting policies Charity information The Don8ld Gordon Third Foundation is an unincorporated Charitable foundation governed by a deed dated 14 August 2007 and registered in England & Wales on 19 February 2008. The registered Offi of the charity is clo Stonehage Fleming, 6 St James's Square, London, SW1Y 4JU. 1.1 Accountlng conventlon The financial statements have been prepared in accordance with the Trusts goveming document, the Charities Act 2011, FRS 102 °The Financial Reporting Standard applicable in the UK and Republic ol Ireland" I'FRS 102.1 and the Charities SORP "Acwunting and Reporting by Charities.. Stslemenl ol Recommended Pradice applicable lo charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republi¢ of Iieland IFRS 1021" leffe¢tive 1 January 20191. The Trust is a Public Benefit Entity as defined by FRS 102. The financial ststemenls a prepared in South African Rand IZARI, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest Rand. The financial slalements have been propared under the historical Cost convention. The principal accounting poli¢ies adopted are set out below. 1.2 Going ¢oncem At the time of approving the financial statements, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future, taking into account the distributions that the Trust expects to receive from the Estate of the late Sir Donald Gordon. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial stalemenls. 1.3 Charltabl¢ funds Unrestricted funds are available for use at the discretion of the Trustees in furtheran of their charitable objectives. Reslricled ftjnds are subject to spe¢ifi¢ conditions by donors as lo how they may be used. The purposes and Ljses of the restri¢ted funds are set out in the notes to the financial statements. 1.4 Income Income is rewgnised when the Trust is legally enlilled lo it after any performance conditions have been met, the amounts can be mtrasured reliably, and il is probabl& that income will be received. Cash donations are recognised on receipt. Other donations are recognised On the Trust has been notified ol the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised al the time of the donation. Legacies are rtrcognised on ceipt or othtrrwise if the Ttusl has been notified of an impending distribution, th& amount is known, and receipt is expected. If the amount is not known, the legacy is Irealed as a ¢onlingenl asset. 10-
THE DONALD GORDON THIRD FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023 A¢¢ounting policies (Continued} 1.5 Expenditu Expenditure is recognised once there is a legal or constructive obligation 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 ol the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of dir1 costs and shared ¢osls, including support costs involved in undertaking &a¢h a¢tivily. Dir&¢l Costs attributable lo a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attribLJtable to a single activity are apportioned between those activitEs on a basis consislent with the use of reSoUrs. Central staff costs are allocated on the basis of lime spent, and depreciation charges are allocated on the portion of the asset's use. 1.6 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of Ihree months or less. 1.7 Flnanclal Instruments The Trust has elected lo apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of ils financial inslrumenls. Financial instruments 8re re¢ognised in the Trust's b81an¢e sheet when the Trust bewmes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the 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. Basic financial assets Basic financial assets, which include debtors and cash and bank balan5, are initially measured al Irans8clion price including tr8ns8dion costs and are subsequently carried al amortised cost using the 8ff&clive interest method unless the arrangement ¢onstitutes a financing transaction, where the transaction is measLJred 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. Baslc flnanclal Ilabllltles Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement conslilules a financing transaction, where the debt instrument is measured al the present value of the future payments discounted al a market rale of interest. Financial liabilities classified as payable within one year are not arnortised. Debt instruments are subsequendy carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or setvices that have been acquired in the ordinary course ol 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 al transaction price and subsequently measured al amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are dere¢ognised when the Trust's contractual obligations expire or are discharged or cancelled.
THE DONALD GORDON THIRD FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023 A¢¢ounting policies (Continued} 1.8 Foreign ex¢hange Transactions in currencies other than South African Rand are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated al the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profil or loss. Change in accounting policy On 1 March 2022 the functional currency in which the charity operates has changed to ZAR from GBP as the ongoing activity will be in South African Rand. The primary currency of the charity is considered to be South African Rand. All transactions other than those in South African Rand are translated using the spot rale on the date of exchange. For the year ended 28 February 2023 the ¢harity has ele¢ted to present its finan¢ial statements in South African Rand (from GBP) inline with the functional currency change as this is the jurisdiction of its administration. The comparative year to 28 February 2022 has therefore been translated. The balan sheet was converted at the year end spot rate and statement of financial acts'vities on the average rate during the year. Critical accounting estimates and judgements In the application of the Trust's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The eslimales and associated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these estimates. The estimates and underfying assuwplions are reviewed on an ongoing b85is. Revisions lo accounting estimates are recognised in the period in which the estimate is revised where the revision affects lY that period, or in the period of the revision and futLJre periods where the revision affects both current and fLJture periods. Crltlcal ludg¢mènts Legacy Income recognltlon The Trustees consider whether the receipt of legacy income they were aware of at year end is probable, in accordance with the recognition criteria sel out in the Charity SORP. Where the amount of such future legacy income cannot be measured or eslimaled with sufficient reliability the details of the legacy are disclosed as a contingent asset until the criteria for income recognition are met. The Trustees exercise their judgement over the ability to measure or estimate future legacy incorne based on information available lo up lo the date ol signing the financial slalements. Income from donations and legacies Unrestricted Unrestricted funds funds 2023 ZAR 2022 ZAR Donations and legacies 141,564,160 11 S,060 12-
THE DONALD GORDON THIRD FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023 Charitable activities Charitable Charitable activities activities 2023 2022 ZAR ZAR Donations paid 100,000 100,863 Share of governance costs (see note 61 253,787 86,832 353,787 187,695 Support costs Support Governance costs costs ZAR ZAR 2023 Support Govemance costs costs ZAR ZAR 2022 ZAR ZAR Audit fees Accounl8n¢y Secretarial fees Bank charges 152,554 98,852 152,554 98,852 85,014 1,818 85,014 1,818 2,381 2,381 253,787 253,787 86,832 86,832 Analysed betteen Charitable activities 253,787 253,787 86,832 86,832 Trustees None of the Trustees lor any persons connected with them) received any remuneration or benefits frorll the Trust during the year. There were no trustees, expenses paid for the year ended 28 February 2023 nor for the year ended 28 February 2022. Employ•8s The average monthly number of employees during the year was.. 2023 Number 2022 Number Total There wore no employees whose annual remuneration was more than £60,000 equivalent. 13-
THE DONALD GORDON THIRD FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023 Taxation 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 lo ils charitable objects. 10 Other gains or losses Unrestricted funds Total 2023 ZAR 2022 ZAR Foreign exchange losses 28,991 11 Debtors 2023 ZAR 2022 ZAR Amounts falling due within one year: Other debtors (note 141 141,451,162 12 Creditors: amounts falling due within one year 2023 ZAR 2022 ZAR Other creditors Accruals 113,000 238,780 73,152 351,780 73,152 13 Contingent assets There is uncertainty over the value of the further legacies the charity will receive from the Eslale of the Late Sir Donald Gordon as the remaining assets are related to property. Due lo this significant uncertainty no income has been reflected in relation lo this further legacy to be received. 14 Related party transactions During the year the Foundation has received donations of ZAR113,00012022.' ZAR113,7251 frorn The Donald Gordon Foundation, a Foundation wth Trustees in common. The Foundation has received donations of ZAR141,451,16212022'. ZARnill from the South African Estate ol the Late Sir Donald Gordon post year end which are reflected in income for the year ended 28 FebrLJary 2023. The other debtor balance of ZAR141,451,162 12022.. ZARnill is due from the Estate of the Late Sir Donald Gordon at 28 February 2023. There are executors of the Estate of the Late Sir Donald Gordon who are Trustees of the Foundation. 14-
THE DONALD GORDON THIRD FOUNDATION NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 28 FEBRUARY 2023 15 Cash generated from operations 2023 ZAR 2022 ZAR Surpluslldefi¢ill for the year 141,210,373 172,6351 Adjustments for.. Foreign exchange differences 128,9911 Movements in working capital.. Ilncreasel in debtors Increase in creditors 1141,451,1621 278,628 73,152 Cash generated from operations 8,848 517 16 Analysis of changes in net funds The Trust had no debt during the year. 15-