RECISTERF,D CHARITY NUMBER: 1123128 REPORT OF THE TRUSTEES AND FIP4Af4CIAL STATEMENTS FOR THE YEAR ENDED 3QTH SEPTEMBER 2020 FOR THE RESOLUTION TRUST Chpriot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
THE RESOLUTION TRUST CONTF.NI'S OF THE Fif4ANCIAL STATEMENTS FOR THF. YEAR ENDED 30TH SEPTF.MBER 2020 P#ge Report of the Trustees Report of tht Independent Auditors Statement of Finaneial Aetivities Balanee Sheet Cash Flow Statement io Notes to the Cash Flow St2temea)t li Notes to the Flnatteial Statements 12 to 20 Detailed Statement of Finaneial Activities 21 10 22
THE RESOLUTION TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH SEFfEMBER 2020 The trustees present their report with the financial SEaiements of the charity lor the year cnd¢d 30th September 2020. The trngtees have Adopted the provisions of Accounting and Reporting by Charities= Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and R¢public of Ireland (FRS 102) (eff¢ctive l January 2019}. OBJECTIVES AND AcfIviTIES Objectives and aims 'rhe objects of the Tr1 are to hold the Trust Fund and its income upon trust lo apply them for all objects which are regarded as exclu5Lvely charitabl¢ under the law of England and Wales. Significant activitie5 The 1'nee5 ensure ihat all wotl( undertaken is in line wtth the TTU5fs charttable objects and airns. The Trusi 8cts a5 caialyst. conyenor and sponsor of work with a rnjge of partner5 to promote shared grow(h and reforn that di5tributc power more widely across society. The Tnjsi tskes a specific int¢re5t in long-tenn problems that are often viewed as intractable due to thc short-t¢rni nalur¢ of the rM)li(ical cycle. The approach takcD is non-partisan. evidence-based and thaws OD RItt¢rnational experienc¢. The Trnst provides going fijnding for th¢ R¢solution Foundation, a charitable organisation which prornotes r¢5¢ar¢h and education of the public into the effect of economic. social and fmancial lacto on the living standards of people benefiting from an income at or below the national avenge, and for the charitable content of Prospect Magazine as part of a wider strategy io support quality media and analysis in order ro support debatr on issues of national importance that may not be sufficiently addressed in the course of the trf)litical cycle. Public benefit The goal of the Trust is io fund projects that have a direa public benefiL often focused specifically on the prevention or relief of poverty through research and educa(ion. When planning the Charity's actiVLtie5. the Tru5tee5 have regard to the Charity Commission's guidance on public benefit generally and guidance relating to public benefit and the advanc¢ment of education. GrantmAking The Trusi fuifils its objeciives and aim5 by providing grant funding to seleded entitie¥ primarily the Resolution Foundation.
THE RESOLUTION TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH SEPTEMBER 2020 ACHIEVEMENT AND PERFORMAP4CE Charitable actlVLties In 20191?O the Trust primarily funded the Re501ution Foundation in its goal to improve the well-being of people on low lo middle incolnes itt the U.K. by deliyering change in areas where this income wup is currently disadvantaged. The work that the Foundaiion produced in 2019120 continued to fftake a substantial contribution to ensuring the issue of living Standards remained firnily at the centrc of public policy discussion across the political spectrum. The Foundation produce5 detailed economic and policy analysis on specific areas such as incomes and inequalsty,. jobs, skills and pay; housing. wealth and debi: i&¥ and welfare- public finances and intergenerational fairness - all erucial issues for low to middle income household5, and CODtinues to develop inT]ovative new w'ork that addresses the longer-terni challenges and identifies strdtegies for shifting away from a low pay. low productivity economy. The CoYid-19 pandemic dominated the second half of 2019-20 and the Tnl'S ongoing support enabled the Resolution Foundaiion io play a key role in explaining the emergina impacts on the economy, the labour market and household living standards and devising policy solutions to support low-to-middle income households and the underlying health of the UK economy. In particular the Resolution Foundation played an active role in making proposals for the design of the 'furlough' scheme (taken up by the government) as well &5 uplifts in supFK)rt for low-income households {such as through Universal Credii). In addition, the Trnst has fmancially supTrned a variety of organisations including." Ark Schools to support activitie5 designed to close learning gaps. athlre5s mental health issues and support digical access at home in light of ihe covid-19 pandemic. - the Battersea Arts Centre to cover the ¢osi of a young person's symposiu - the Living Wage campaign coordinated by Citizen'5 UK - the Old Vic's pubic fvnd supporting innovative theatre desigtted to protnoie political, 50¢ial and personal change, - the Charitable content of Prospe¢1 magazine. - the 'WorkerTech' element of the Bethnal Green Ventures programme which support5 new and viable organisations offering services and l or support to UK'S poorly served low-wage workforce. Oversight for the continued support of pr(Fworker Énnovation Éllcluding low paid workers. through partnerships such as the Bethnal Green Venture5 'workertech' scheme and snsOrship of Citizens UK Living Wage initiaiive wa5 transferred to the Resolution Foundation durtng the year. FINANCIAL REVIEW Financi81 position The intome to the charity comprises dividends and bank interest received of £844.325. After taking account of net losses on investments of £406.38]. charithble grants awarded of £1,485,574 and running cosis of the charity during thc period, including investment managemeni (tts of £541,657, the financial siatements show a capital endownent balance of £41.900,439 and restricted funds of £2,500. The end01ent lunds are expendable to meei the charity's objectives. IDve5tment policy and objeetlves The Trustee's investment policy 15 to generale the high¢sl pissible returns over the long tenn. consistent with its risk appetite and appropriate protection for the capital of the Trll5L to maximise the resources that can be expended on the Trust's charitable objectives. The Trnsi's policy is to accept reasonable Capitsl volatility with no more than a 5Q/• risk of capiial loss over a 5-year period. HSBC Private Bank are responsible for the mallagement of the TnLSt's itivestments. moniring of the investment perfornian¢e lakes place through regular invesiment reports and meetings with HSBC. Investment perforniance results are reported and discussed at Tnjsttt Tnxting5 and compared to industy bencIllna5 where applicable. Investments are stated at market val. with r¢alised and UDreali5¢d profits nct to the statement of financial activities. Reserve5 policy The Trustees do not have a specific pilicy to hold unrestricted fids. and will award future grants from available unrestricled reserves and from the expendable endowment to meet the charity's objeciives. At the year end unrestricted funds were £nil, restrictcd fidS were £2,500 and the expendable endowment fi]nd stood at £4 5,900,439. Page 2
THE RESOLUTION TRUST REPORT OF THE TRUSTEES FOR'fHE YEAR ENDED 30TH SEPTEMBER 2020 FUTURE PLANS In 202012021, the Resolution Trust's ongoing funding commitments include= - continued suppon for the Work of the Resolution FoundatioT] - continued supp(Frt of ihe chatiiable conteni of Prospect tnagazine Additional ant fiding may be made available to contnbut¢ to the work of chaTitics whose work and l or funding ha5 b¢¢n itnpactcd by the pandemic. STRUCTURE, GOVERNANCE AND MANAGEMEP4T Coverrting docurnent The Resolution Trnst was established as a Tn Fund on 14 December 2007 and registered as charity number 01123128 on 7 March 2008. The Charity is governed by its TnL%t deed whi¢h was amended OD 4 January 2016. On 2 NoveTnber ?015, the Resolution Trust (Trustee) Limited, company number 09852910, was in¢orporated and all the trllst¢¢s of The Resolution Trust We appointed as its Direciors. On I l January 2016 the existing ttStee5 of The R¢solution Tn1 reiired and The Resolution T1 (Trusiee) Limited was aprM)inted as the sole Corporate Tn[Ce. The Directors of The Resolution Trust (Trusttt) Limited act in the capacity of tnLStee% of The Resolution Tn]st and are listed above. Recruitment appointment of new trustees The Trustees are a self-appointing body with eacb TnL%tee initially appointed for a three-year tenn. New Tntee9 be norninated by any existing Ttustee and are apNJinted according lo relevant skills and experience. Under the tern]s of the amended TnL41 dee(L th¢ Corporale Tntee. Resolutton Trust (Trllstee) Ltc has the power 10 appoint new trustees. Clive Cowdery 15 the sole company law member of the ¢OTporate trustee. OrgaDi5ational structure The Trustees meet as necessary, and not less than twice each year. and all key decisions affecting the Charity are made at these meetings. The Trustees appotnted a Chief Execuiive. Gavin Kelly in September 2015, who has day to day responsibility for all operational matters. ID April 2019. Gavtn Kellys employment eontrdct was amended in order for hiTn to take up a fornal part-time position at Resolution Foundation in addition to his role at Resolution TrusL so he can continue io overse¢ the pro-worker innovation work established by the Tnjst and now being fiarther dcvcloped by the R¢solution Foundation. Induetion and trainillg of tru5tee5 Trustees are provÈded with approprmte illduction and training when aptM)inted taking account of the nature of the harity. Key mgn9gement r¢muDer8tion Key mana(Tement personnel of the Trust are those petnS having authoriry and reswjnsibility for planning, directing and controlling the activities of the entity, directly or indirectl>', including any Trustee of the entity- They colnprise the DirectOTS of Resolution Trust (Trustee) Lt¢ the Chief Execuiive and the Director of Resourees. The remuneration of the Chief Executive is sei by the Trustees_ All our staff and contrdctors are paid at least the Living Wag¢ which is an hourly rnlc s¢l and Updat annually, bas¢d on the cost of livit Related parties Trustees are required to disclose all relevant interests, register them wKth the Chairtnan and with¢fraw from decisions where a conflict of interest arises. All TnteeS give of their time freel}. and no Trustee remuneration or expenses were paid in the year. Related party transactions are disclosed in the notes to these financial statements. Page 3
THE RESOLUTION TRUST REPORT OF THE TRUSTEES FOR THE YF,AR ENDED 30TH SEPTEMBER 2020 STRUCTURE, GOVERNANCE AND MANAGF.MEKr Risk management The Trust has a risk management strategy in place. The risk register is reviewed annually by the b(th of TnteeS and continually monitored by the Chief Executive who tskes responsibility for implementation of the policies and proCcduS id¢ntified to miligate risks. In addition. risk reviews are undertaken r¢gularly by the Trustees and Chief F.xe¢utive to ensure the Trusi's independen¢e and political neutrality are mainthined. The most significant exiemal risk identified during th¢ year was relaied io the Coronavirus Outbreak which lcd to broad operational and Fnanagement challenges due to remote working and the risk of ally potential impact on the healih. wellbeing and morale of the T1,5 eJDployeeg. These risks were successfully mitigated through Tnonitoring Charity ComTnission and other government guidanc¢ r¢lating to the pandemic. and through amending managerial proc¢dur¢s and Hcalth and Safety policies and prnciice in light of the changing demands of the external siiuation. We also ensured our data securtty and internal processes were equipp¢d to meet the increased risks of fraud and cybercrime. The most Si)ir]eant organisational risk id¢ntified by trustees during the year w&% associated with the transfer of the Trust's support of pro-worker innovation to the Resolution Foundation which could lead to brand cOn510n and the poien(ial loss of chaTitsble resources in failed ventures. These risks have been Tnitigated by consistency of oversight by Resolution Trust's CEO who has taken a pan-time role w Re501ution Foundation to lead the work and ensure the appropriate stsffmg, management and governance procedure5 are in place. REFERETriCE AND ADMINISTRATIVE DETAILS Registered Charit>. Dujllber 11?3128 Principal address 2 Queen Anne's Gate .ondon SWIH 9AA Trustees On 2 November 2015 The Resolution Tn1 {Ttus(ee) Limited , company number 09852910. was incorporated and all the Trustees of The Resolution Trust were appointed &5 its Directors. On aa January 2016 ¢he existing Trustees of The Resolution Trust retired and The Resolution Tn1 (Tntsiee) Limited was appointed as the sole Corwrate Tntee. The Directors of the Resolution Trust {Trustee} limiled act in the capacity of Tntsiees of The Resolution Trnst and are listed below.. C Cowdery C Alexandrou B Meehan A Cooper Auditors Charioi House Limited Chartered Accounrants 44 (trand Parade Brighton E.ast Sussex BN2 9QA Solicitors Stone King Boundary House 91 Charterhouse Street Ind0 ECIM 6HR Pagc 4
THE RESOLUTION TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH SEtryEMBER2Q20 RF.FF.RENCE AND ADMINISTRATIVE DETAIIS Bankers and Investmeni Manager HSBC Private Bank IUK) Limited 8 Cork Street London WISJLJ STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees are responsible for preparing the Report of the Trjstees and the ftnancial ststements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted A¢¢ounting Practice). The law applicable to chariiies tn England and Wales. the Chariiies Act 2011, Chlty (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each fin2nci21 year which give a tnje and fair view of the State of affairs of the char5ty and of the incorning resouwes and application of resources, tncluding the incorne and cxpcnditure. of the charsty for that period. In preparing those fllwicial statements. the trusi¢¢s are quIr to select Suitable accounting policies and then apply them consistently- observe the methods and principles in ihe Charity SORP,. make judgements and estirnates Ihar are re&sonable and prndenL stale whether applicable accounting standards have been followe¢ subject to any material departures diselosed and explained in the financial statements. prepare the financial staiemenis on the going concern basis unless it is inappropriate to pttsume that the charity will continue in business. The trustees are responsible for keeping proper accounttng r¢cords whi¢h di105¢ with reasonable accuracy ai any tim¢ the financial position of the charity and io enable them to ensure that the financsa] statements comply with the Charities Act 2011, the Charity (Aceounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the ¢hority and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by order of the board of trSte¢S on .... - and signed on its behalf by.. C Cowd¢ry- Director of The Resolutkon Tnt Limited Page 5
REPOR'f OF THE INDF.PF.NDF.NT AUDITORS TO THE TRUSTEES OF THE RESOLUTION TRIJ.ST Opinion We have audited the financial statement5 of The Re501ution Trus( (the 'chariry') for the year ended 30th September 2020 which comprise the Statement of Financial Activities. the Balance SheeL the Cash Flow Ststetnent and notes to the financial stai¢ments, including a summary of S11f)¢ant aecounting policies. The fiRan¢ial reporting framework that has been applied in their preparation 15 applicable law and United KiDgd(Trm Accounting Standards (United Kingdom Generally Accepted Accounting Pra¢tice)- In our opinioll the financial siaÈemenis-. give a true and fair view of the state of the charlS affairs as at 30th September 2020 and of its in¢oming r¢sources and application of resources. for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Praciice; and have been prepared in accordance with the requirements of the Charities Act 2011. B#$is for opinion We conducted our audit in accordance with Intemalional Standards on Auditing (UK) {ISA5 (UK)) and applicable law. Our responsibilities under those stdardS are fuTther described in the AuditOTS' responsibilities for the audit of the financial stsiements section of our retMTrrL We are independent of ihe charity in accordance with the ethical requirements thai are relevant io our audii of the financial si*ements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requiretnents. Wc b¢li¢ve that the audit evidence we have obtained is sufficient and appropriate to provide a basi5 for our opinion_ Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAS IUK) require us to report to you where- the trustee5' use of the going concern basis of accounting in the preparation of the financial statements 15 not appropriate. or the trustees have not disclosed in the financial rtaiements any identified rnaterial uncertainties that may cast significant doubt about the charity's ability to continue to adopi the going concern basis of accounting for a period of at least twelve months from the date when the financial 51Hternents are authoris¢d for issue. Other information The trustees are resFrf)nsible for the other inforniation. The other infonnation comprises the inforniation included in ihe Annual Report, other than the financial statements and our Report of the Independent Auditors thereott. Our opinion on the fi[1¢]81 Staents does not cover the other inforniation an¢1 except to th¢ ement tstherwise explicitly stated in our reporL we do not express any fom of assutance conclusion thereon. In conneetion with our audii of the financial statements, our restx)nsibility is io read the other inforniatiotj an41 in doing so. consider whether the oth¢r inforniaiion is maieriall)" illC0115LStent with che finantial statements or our knowledge obtsined in ihe audit or otherwise appears lo be materially 15Stated. If we ideniify such material inconsistencies or apparent matertal tnisstatcments, we are required its delertnine whether there is a material misstatem¢nt in the fmancial statements or a material misstatement of the other inforniataon. If, based on the work we have perfornieiL we conclude th3t there is a material misgtatement of ihis oiher Infornti0 we are required io report that fa¢t. We have nothing to r¢port in this regard. Matters on which we are required to re)rt by eiceptiOD We have noihing io report in reS¢t of the following matters where the Chartties (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinioll= the inforniation given in the Report of the TnL8tee5 is inconsisteni in any material respect with the financial statements.. or suffieieni accounting records have been kept; or the f]nancial statements are not in agreement wilh the accounting records and retUrn5' or we have not received all the information and explanations we require for our Audit. Page 6
REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THF. RESOLUTION TRUST Responsibilities of trust¢ As explained Tnore fvlly in the Statement of Trustee5' Responsibilities, the tru5tee5 are responsil)le for th¢ preparation of the financial statements which give a true and fair view. and for gueh internal control as the trnstees detemjine is necessary to enable th¢ preparation of fu1claI statements that are free from material misstatemenL whether due to fraud or error. In preparing the financial siaiements, the tnEStccs are responsible for a5SCS5ing the charity's ability to conEinue as 2 going concern, di5¢105ing, a5 applicable, matte[5 r¢lat¢d to going concern and using the going con¢¢rn basis of accounting unless the trustees either intend to liquidate the charity or to cease operations. or have no realisti¢ alternative but to do 50. Our respon5ibililt¢s for the audit of the fingncial statements We have been apposnted as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made 01 having effect thereunder_ Our objectives are t(Tr obtaiD reasonable assurance atrM)ut whether the financial statements as a whole are free from matcrial misststement. wheiher due io fraud or eTror, and io i55u¢ a R¢rMIrt of the Independent Auditor5 that illcludes our opinion. Reasonable assurdnce is a high leycl of a55ufdnce, but is not a guarantee that an audit conducted in ae¢ordance with ISAS (UK) will always detect a matetial misstate¥nenl wh¢n it exists. Misstaiements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the ¢¢onomic decisions of users taken on the basis of these financial statements. A further description of our responsibiliiies for the audii of the financial statem¢nts is located on the Financial Reponing Couneil's websiie at www.frc.org.uklauditorsresponsibilities. This de%ription forn part ofour Report of the Independent Auditors. Use of our report This report 15 Tnad¢ sol¢ly to th¢ charitys tTUStee& as a body. in accordance with Pan 4 of the Charities (Accounts and R¢ports} R¢gulations 2008. Our audit work has been undertaken so that we mighi stste to the charity's trustee5 those matters we are required to state to ihem in an auditois, report and for no other purpose. To the fullest extent perniitted by law. we do not accept or Issume responsibility io anyone other than the charity and the charity's trustees as a body, for our audit work, for thi5 repor¢ or for the opinions we have fonned. Chariot House Limiied Eligible to act a5 an auditor terrns of Section 1212 of the Companies Act 2006 Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA Dale.. Page 7
THE RESOLUTION TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30TH sEEmBER2020 2020 Tothl fimds 2019 Total nds Unrestricted fund Restricted fimd Endowment fund Notes INCOME AND ENDOWMENTS FROM Donation5 and legacies 31,774 Investment income 930 560 Total 844.325 844.325 962,334 EXPENDITURE OTr4 Raising fund5 541,657 541,657 271,087 Charit4ble activities Research and Education 1.485,574 1,485,574 8,979,723 Total 2,027231 2,027,231 9250,810 Net gain(losSes) on investments 406.381 406,381) 1,144,003 NET INCOMEI(EXPENDITURE) (1,182.906) (406.381) (1.589287) (7.144,473) Transfers between funds 1.182.906 1,182,906) Net movement in funds (1.589287) (1,589,287) {7.IJA.473) RECONCILIATION OF FUNDS Totgl funds brought forward 2.500 43.489.726 43,492.226 50,636,699 TOTAL FUNDS CARRIED FOR WARD 2.500 41.900 439 41902939 43 492 226 The notes forni part of these fancial staternents Page 8
THE RESOLUTION TRUST BALANCE SHEET 30TH SEvfF.MBER 2020 2020 Total fuRds 2019 Total funds UTw¢stricted fund Restricted fund Endowment fund Noies FIXED ASSETS Investments 44,770.815 44.770,815 42,848,527 CURRENT ASSETS Debtors Cash at bat and in hand 12 20,01)0 2 745,846 20.000 2 748 346 20,000 7 321216 2,500 2.500 2.765,846 2,768,346 7.341,216 CREDITORS Amounts falling due within one year 13 (3.536.222) (3.536.222) (2,497.517) NET CURRENT ASSETS 2,500 770.376 767 876) 4.843.699 TOTAL ASSETS LESS CURRENT LIABILITIES 2,500 44,01)0.439 44,002,939 47,692.226 CREDITORS Arnounts falling due after more than one year 14 (2.1(M).000) (2,100,(H)O) (4.200.000) NET ASSETS 2.500 41900439 41,902,939 43.492.226 FUNDS Restricted fund5 Endowment funds 15 2,500 41.9(M),439 2,500 43,489,726 TOTAL FUNDS 41902.939 43 492 226 The fina ial sratements were approved by the Board of Th1¢¢$ and authorised for issue on C Cowdery- Dir lor of The iiesolution Tnjst (Ttusiee) Limited The notes forni part of these financial statements Pa8e 9
THE RESOLUTION TRUST CASH FLOW STATF.MENT FOR TEIE YEAR ENDED 30TH SEPTEMBER 2020 2020 2019 Notes Cash flows from operating attiviti¢s Cash (penerated from operations 3,088,526) 3,766,238) Net cash used in operating a¢tiYtlies 3.088.526 Cash flows from inYe5tiDg aetÉvities Purchase of fixed a5SCt invesirnents Sale of fixed asset investments Interest received (14.116.733) 11,788.064 844,325 (14,284,535) 14,123,104 930.560 Net cash (used inypTovid¢d by inY¢sting activities 1484 344) 769 129 Change in c8sh and casb equivalcnts in the reporting period Cash and cash equivalents at tbe beginning nf the reporting period (4,572,870) {2,997,109) 7.321.216 10.318.325 Cgsh e8sb equivaleDts at the elld of the reporting period 2.748.346 7 321210 The notes forni part of these financial staiements Page 10
THE RESOLUTIO.N TRUST NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30TH SEPTEMBF.R 2020 RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES 2020 2019 Ntt txpenditure for th¢ reporting period {as per the StattmtTrt of Financial Activities) Adjustments for: LoSSe(gain} on inve5ttnents Interest received (Decreaseyincre&s¢ in creditor5 (1,589,287) {7,144,473) 406.381 (844,325) 1061295) (1,144,004) (930,5601 5 452 799 Net c85h used in operntions ANALYSIS OF CHANGF.S IN NET FUNDS AI 1110119 Cash flow At 3019120 Net cash Cash at bank and in hand 7.321216 4,572,870 2.748,346 7.321 4 572 870} 2,748,346 Total 4 572 870 2 748,346 The notes fonn part of these firLe1a1 ststements Pagell
THF. RESOLUTION TRUST NOTES TO THE FINANCIAL STATEMETriTS FOR THE YEAR ENDED 30TH SF,vfEMBER 2020 ACCOUNTING POLJCIES Basis of preparing the fin4n¢isl stateMets The financial statements of the charity, which is a public benefit entity under FRS 102, hav¢ been prepared in accordan¢e with the Charities SORP (FRS 102) 'Accounting and Rep)rting by Charitie5'. StateTnent of Recommended Practice applicable to chartiies preparing their accounts in a¢cordan¢e with the financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2019),, Financial Reporting Standard 102 The Financial Rewrting Standard applicable in the UK and Republic of Ireland, and the Chariiies Act 2011. The financial stat¢m¢nts hav¢ been prcpar¢d under the historical cost convention, with ihe exception of InVements which are included at market value, as modified by the r¢valuation of certain as5Cts. At the time of approving the ftnancial statementy the trustees have a r&rysonable expectation that the charity has dequate resources io coniinue in operdiional existence for the foreseeable future, including taksng into account any potential impact of the Covid-19 pandemic. and on that basis the charity is considered io be 2 going concern. IThcome All income 15 recognised in the Statement of Financial Attivitie5 once the charity has eniitlement to the funds, it is probable that ihe income H'ill be received and the amount can be measured reliably. Donated services valued at an estimate of the finaneial cost borne by the donor. Expenditure Liabilities are recognised as eXnditre as s(bOn as there is a legal or constructive obligation colnrnitting the charity to that expenditure, it is probable that a transfer of economic benefit5 will be required in settl¢ment and the amount of the obligation can b¢ measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headiT)gs that aggregate all cost related to the category_ Wh¢rc costs cannoi be directly attributed io particular headlljgs they have been allocated to activities on a basis consistent with the usc of resources. Support costs comprise costs for processing grants and applications, including sllpport to actual and potential applicants: costs associated wrth the Tnanagement and administr*ion of the Ttust's activities: and governance costs which are incurred 1th the general ruTIng of the TTrt as opposed to the management and administration of it's aciivities. They include costs r¢laiing to con5tiwiional and Sul0ry rcquirernents. Grants olTered subject to conditions which have noi been met at the year end date are noted a5 a commitment but not accrued as expenditure. Taxation The ch8rity is exempt from thx on its charitsble activities. Fund accounting Unrestricted funds can be u5¢d in accordance with the charitable objectives the discreiion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrietions arise when specified by the donor or when funds are rdised for particular restricted purpose5. The expendable endowment funds are Capit ndS where nonnally only the income arising tnay be applied but for which the TnEStees also have the powerto spend the c11. Further explanation of the nanllt and purpose of eacb fid is tncluded in the notes to the financial statements. Foreign turr¢ncies Assets and liabilities in foreign currencie5 are translated into sterling at the rates of exchange njling at the balance sheet date. Transactions in foreign currencies are translat¢d into sterling at the rate of exchange ruling at the date of transaction. Exchange difterences ar¢ taken into account in Tiving at the operating result. Page 12 continued...
THF. RESOLUTION TRUST NOTES TO THE FINANCIAL STATEMEP*TS- Continued FOR THE YEAR ENDED30TH SEPTEMBER 2020 ACCOUNTING POLICIES- eolltlDued Pension Costs and other post-retirement benefits The charity operates a defined contribution pension scheme. Contributions payable to the ¢hari¢y's pension scheme are charged to the Statemeni of Financial Activities in the period to which they relate. DONATIONS AND LEGACIES 2020 2019 Donations in kind 31,775 INVESTMENT INCOME 2020 2019 Deposit account interest Investment income- HSBC Investment income- AMP 967 929.592 684,675 159,650 930,559 RAISING FUNDS Investment mana%ement eosts 2020 2019 Portfolio management- HSBC Portfolio manag¢m¢nt- AMP 297.768 243.889 271,087 541,657 271087 CHARrrABLE ACTtVlTIES COSTS Grant fimdinB of activities (sce notc Support costs (sec note 7) 6) Totals Research and Education 1343 000 142 574 1485 574 Page 13 cotttinued..-
THE RESOLUTIOY TRUST NOTES TO THE FINANCIAL STATEMENTS- ¢olltiDucd FOR THE YEAR EIYDED 30TH SEPTEMBER2020 GRANTS PAYABLE 2020 2019 Research and Education 1343.000 8.698,115 The total wis paid to instirntions during the year was &5 follows". 2020 2019 Prospect Magazine Re501ution Foundation Life Be BGV Citizens UK Old Vic Labour Xchange Ark Schools Coronavirus Appeal Battersea 1,108,000 1.522.000 6.945,000 5,000 10,000 loo,000 15,000 IIM),I)00 125,000 1.343.000 8,698,115 In August 2019. the Resolution Trust comrnitted to fi]nd the Resolution Foundation for at Itasi a further 3 years having awarded ants iotalling £6.300.(M)O 7th effect from l October 2019. This comrnitmeni was recognised as expenditure in the year ending September 2019. In the current yegr, the Trust paid £2.100.000 to the Foundation reflecting this annual cornmitm¢nl. SUPPORT COSTS Governance osts Management Totals Research and Education 134517 8.057 142 574 Support Costs, included in the above. are as follows= 2020 Research 2019 Total activitl¢S Education Wages Social security Pensions Support charges IT costs Sundries Stsff training and expenses AuditOTS' remuneration AuditOTS' remuneration for non audit work Auditors, remunerdtion undetprovision previous year Donat¢d staff time Accounthncy and legal ftts 105.209 14.519 7,i65 3,624 2,583 1,210 185,853 25,066 13.010 3.556 1.317 7.368 333 2,(M)O 1,000 3200 1,000 2,200 31,774 10,148 1,657 142.574 281,425 Page 14 continued...
THE RESOLUTION TRUST NOTES TO THE FINANCIAL STATEMENTS- coThtinued FOR THE YEAR ENDED 30TH SEvfEMBER 2020 TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 30th September 2020 nor for the year ended 30th September 2019. Trustee5' expense5 There were no tnjstees, expenses paid for the year ended 30th September2020 nor for the year ended 30th September 2019. STAFF COSTS 2020 2019 Wages and salaries Social security costs Other pension costs 105.209 14,519 185,853 25,066 13,010 223,929 From June 2019, all Resolution Tnjst salaries haye been paid by Resolution Foundation under the tcm)s of shared emploJThent contracts and a service level agreement betw'een the two organisations. Resolution Tti]st's portion of the stsff salaries are then repaid to the Resolution Foundation. The total employee nefits paid io key management persorjnel during the year arnounted to £127,093 (2019.. £210,153) The number of employees whose employee benefits (excluding ernployer pension costs) exceeded £60.000 was: 2020 2019 £80,001- £90.000 £150,001- £160,0(M) The averdge monthly nulnber of employees during the year was as follows.. 2020 2019 Total On a Full TiTne equi?lent basis, the averdge numb¢r of ernploytts is l (2019: 1) Page 15 continued...
THE RESOLUTJON TRUST NOTES TO THE FINANCIAL STATEMENTS- eontinued FOR THE YEAR ENDED 30TH SEPTEMBER 2020 io. COMPARATIVES FOR THE STATEMENf OF FINANCIAL ACTtVlTIES Unrestricted Restricted fid fund Endownent fjjnd Total funds INCOME AND ETr4DOWMENTS FROM Donaiions and legacie5 31.775 31,775 Investment income 930 559 930,559 To131 962.334 962.334 EXPENDITURE ON Raising funds 271,087 271,087 Charitable activities Research and Education 8,878,609 101,115 8,979.724 Total 9.149.696 101.115 9,250,811 Net gains on investsnenL8 1,144.004 NET INCOMEIIEXPENDITURE) (8,187,362) {101,115) 1.144.004 {7,144.473) Transfer5 between fuDds 8,187,362 8 187362) Net movement in funds (101.115) (7,043.358) (7.144.473) RECONCILIATION OF FUNDS Total funds brought forward 103,615 50,533.084 50.636.699 TOTAL FUNDS CARRIED FORWARD 2.500 43 489.726 43.492,226 FiXED ASSET INVESTMENTS Listed investments Unlisted investments Totals MARKET VALUE At Isi October 2019 Additions Disposals Movement in Market value Movement in cash held 42,828,527 14,116,733 (1? 141.903) 191,946 264.456) 20,000 42,848,527 14.116,733 (12,141,903) 211,914 264 456} 19.968 At 30th September 2020 44,730.847 39.968 44770 815 NET BOOK VALUE At 30th Septernr 2020 44.730 847 44,770.815 At 30th September 2019 42 828,527 42,848.527 Page 16 continued...
THE RESOLUTION TRUST NOTES TO THE FINANCIAL STATEMEP4TS- eoDtiThued FOR THE YEAR ENDED 30TH SEPTEMBER 2020 ii. FIXED ASSET INVESTMENTS- £ontIllt0 The listed investments are held in a mixed portfolio. tnaillly invested in shares, and rna1¢d by HSBC Private Bank (UK) Limited except the AMP Capita] Global Infr&8trncture Fund investment which is a limited partnership fund registered in Luxemburg. 2020 2019 Fixed Interest Equities Alternative Investments Cash Funds 10.495,741 24.591,871 7,708,089 1,022,818 91? 328 11,077,775 19,,665,726 9,741,608 1,287,273 1056 145 44 730 847 42 828 527 The Trnst is subjeci io certain investtneni risks: - Credit risk, which is the risk that one party io a financial instrumcnt will cau% financial 105S to the other bu failing to discharge an obligation. - Mark¢t risk, whi¢h is the risk that the fair value of firture cash flows of a fmancial asset will fluctuaie because - Currency risk as a resuli of Changes in foreign currency rate5 - Inieresi rdte risk as a result of changes in market interest rates.. or Other price risk Is a result of changes in market prices (other than because of CUTrency or interest rdt¢ risk) and whether these changes affect all similar fmancial tnstruments traded in the market place or a particular financial instTument. The Trust manage5 these invt51tnI risks by retaining expert advisers and opernting an investment policy that provides a high deee of diversificaiion of holdings within investment assets classes that are rnainly quoted on Tecognised stock exchanges. All investments are carried at fair value. The basis of fair value is equivalent to the market value using the bid value. The Unlisted Investment is a minoriry shareholding in Poplar Technologies l.iTniied, a social investtnent mkde as part of the Trust'5 SUPPOrt of prfvworker innovation. Poplsr Technologies Lirnited aitns to improve the living 5tandard5 of low-io-middle income worker5 by building software that helps them become more empow¢r¢d, autonomo% and productive at Work. 12. DEBTORS: AMOUNTS FALLING DUE THIN OF4E YEAR 2020 2019 Other debtors 20,000 Page 17 continued...
THE RESOLUTION TRUST NOTES TO THE FINACIAL STATEMEYTS- eontinued FOR THE YEAR ENDED 30TH SEPTEMBF.R 2020 13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2020 2019 Trdde ¢rediiors Other creditors 67.493 3 468 729 205,242 2 292 275 3,536,222 2,497,517 14. CREDITORS: AMOUNTS FALLING DUE AFfER MORE THAN ONE YEAR 2020 2019 Other creditors 2,100,0(M) 4,200,000 15. MOVEMENT IN FVNDS Net movement in fimds Trdnsfers between funds At 1110119 At 3019120 Unre51ricled fund5 General fund (1.182.906) .182,906 Restricted funds AccenturelBGV work 2,500 2,500 Endowment funds nd0ent fund 43,489,726 (406,381) (1,182,906) 41,900,439 TOTAL FUNDS 43.492.226 1589 287) 41902,939 movement in fillKls, included in the above are as follows: Incoming resources Re501]recs expcnded Gains and losse5 Movement in funds Unrestricted funds General fvnd 844,325 (2,027231) (1,182,906) EndowEnent funds Endowment nd (406.381) (406.381) TOTAL FUNDS 844.325 2027231) 406.381) 1,589,287) Page 18 continued...
THE RESOLUTION TRUST NOTES TO THE FINATraCIAL STATEMENTS- continued FOR THE YEAR ENDED30TH SEPTEMBER 2020 15. MOVEMENT IN Fuf4DS- eontinufd Comparatives for movernent ID funds Net movement funds Transfers between fijnds At 1110118 At 3019119 Unrestricted funds General filnd {8,187.362) 8,187,362 Restricted funds AccenturelBGV work 103,615 2,500 EndowmeTht fullds Endowm¢nt fid 50,533,084 1.144.004 (8,187,362) 43,489,726 TOTAL FUNDS 50.636.699 7 144,473) 43.492.226 Comparative nei movement In fimds. included in the above are as follow5." Incoming resources Resourtt5 expended Gains and losses Movement in funds Unrestricted fllnds General nd 962,333 {9,149,695) (8,187,362) Restricted funds Ac¢enturelBGV work (101,115) (101,115) Endowment fund5 Endowinent fund 1,144,003 1,144.004 TOTAL FUNDS 962.334 9250,810 1,144,003 7,144,473) The 'WorkerTech' elernent of the Bethnal Green Ventures prowrne is to support new and viable organssations offering services and l or sUPPOrt to the UK'S poorly setved low-wage workforce Page 19 continued...
THF. RESOLUTION TRUST NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 30TH SEWtEMBER 2020 EMPLOYEE BENEFIT OBLIGATIONS The Trust operatcs a defined contribution pension schcme throuoJ The Pensions Trust with contributions made by both th¢ ¢mployer and employees at variable r*es. The assets of the scheme are held separately from those of The Resolution Trust. Pension costs charged represent conthbuiions payable by The Resolution Trust to The Pensions Trust. Total pension Costs in the current year amounted to £7,365 (2019= £13,010). At the year end £nil was due to The Pensions Trust (2019.. £nil)- 17. RELATED PARTY DISCI.OSURES One of the trnstees of The Resolution Trusi is a director and the 501e Tnember of Resolution Media Limited which in turn OWlLS Prospect Publishing I.imiieiL There is no Mechanis for transfer of income, profit or setS of Resolution Media Limited directly or indircctly to its sole memberlthe tsusiee. The Trust's commitment to fund the charitable conieni of Prospect Magazin¢ was taken by the independent trustees IE) June 2015. Funding is granted Specifically for charitable content being primarily educational, which iTnproves public understanding and prornote5 infornied debate aboui economtc and social sciences, and related subjects including the arts, sciences, heritage and culture. Monitorrng procedures and legal protections are in place to ensure all funding is applsed exelusively in furtherance of the TnLSt's charitsble purposes and objectives, and for public benefit Page 20
THE RESOLUTIO.N TRUST DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR EP4DED30TH SEPTEMBER 2020 2020 2019 INCOME AND ENDOWMENTS DonAtion$ and legacie5 Donations in kind 31,775 Investment income Deposil account interest Invesmient incoTne- HSBC Invc5tm¢nl incornc- AMP 967 929.592 684,675 159.650 930 559 Tot31 incoming resour¢es 844,325 962,334 EXPENDITURE IRvestment maageMent costs Portfolio manageTnent- HSBC Portfolio management- AMP 297.768 243.889 271,087 541,657 271,087 Charitable activities Travel & hote15 Grants to institutions 183 8698,115 1343 000 1,343,0(Kl 8,698,298 Support CO51$ Management Wages Social security Pensions Support charges IT costs Sundries Staff trnining and expenses 105.209 14.519 7,365 3,624 2.583 1,210 185.853 25.066 13,010 3,556 1.317 7,368 333 134.517 236.503 Governanee costs Auditors, iemunerdiion Auditgrs, relnuneration for non audit work AudEtors' relnuneration undetprovision previous y¢ar Donated staff tim¢ 3200 I,IM)O 2.000 1.000 2200 31,774 Carried forward 6,400 34.774 This page does not forni part of the slatulory financial statements Page 21
THF. RESOLUTION TRUST DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THF, YEAR ENDED 30TH SEFfEMBER 2020 2020 2019 Governance costs Bn)ught forward Accountancy and legal fees 6.400 1,657 34,774 8,057 44,922 Total resources expended 2 027.231 9 250.810 Net exptllditure before gains aDd losses (1.182,906) (8,288,476) Realised recognised gain5 and losses Realised gainsl{losses} on fixed asset investments 406,381) 1,144,003 Net expenditure ,589,287) 7,144,473) This page does not forni part of the statuiory financial ststements Page 22