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← The Resolution Trust

2023-09-30-accounts

Charity number:

THE RESOLUTION TRUST

TRUSTEE'S REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023

THE RESOLUTION TRUST

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustee's Report 2 - 6
Independent Auditors' Report on the Financial Statements 7 - 10
Statement of Financial Activities 11
Balance Sheet 12
Statement of Cash Flows 13
Notes to the Financial Statements 14 - 29

THE RESOLUTION TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2023

Trustees

The Resolution Trust (Trustee) Limited

On 2 November 2015 The Resolution Trust (Trustee) Limited, company number 09852910, was incorporated and all the Trustees of The Resolution Trust were appointed as its Directors. On 11 January 2016 the existing Trustees of The Resolution Trust retired and The Resolution Trust (Trustee) Limited was appointed as the sole Corporate Trustee. The Directors of the Resolution Trust (Trustee) limited act in the capacity of Trustees of The Resolution Trust and are listed below:

C Cowdery C Alexandrou B Meehan A Cooper

Principal office 2 Queen Annes Gate London SW1H 9AA Independent auditors haysmacintyre 10 Queen Street Place London EC4R 1AG Bankers Goldman Sachs International 25 Shoe Lane London EC4A 4AU HSBC Private Bank (UK) Limited 8 Cork Street London W1S 3LJ Waverton Investment Management Limited 16 Babmaes Street London SW1Y 6AH Solicitors Stone King Boundary House 91 Charterhouse Street London EC1M 6HR

Page 1

THE RESOLUTION TRUST

TRUSTEE'S REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2023

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 October 2022 to 30 September 2023. The Trustees have adopted the provisions of 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 UK and Republic of Ireland (FRS 102) (effective I January 2019).

Objectives and activities

a. Objectives and aims

The objects of the Trust are to hold the Trust Fund and its income upon trust to apply them for all objects which are regarded as exclusively charitable under the law of England and Wales.

In setting objectives and planning for activities, the Trustee have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Significant activities

The Trustees ensure that all work undertaken is in line with the Trust's charitable objectives and aims.

The Trust acts as catalyst, convenor and sponsor of work with a range of partners to promote shared growth and reforms that distribute power more widely across society. The Trust takes a specific interest in long-term problems that are often viewed as intractable due to the short-term nature of the political cycle. The approach taken is non-partisan, evidence-based and draws on international experience.

The Trust provides on going funding for the Resolution Foundation, a charitable organisation which promotes research and education of the public into the effect of economic, social and financial factors on the living standards of people benefiting from an income at or below the national average, and for the charitable content of Prospect Magazine as part of a wider strategy to support quality media and analysis in order to promote debate on issues of national importance that may not be sufficiently addressed in the course of the political cycle.

c. Public benefit

The goal of the Trust is to fund projects that have a direct public benefit, often focused specifically on the prevention or relief of poverty through research and education. When planning the Charity's activities, the Trustees have regard to the Charity Commission's guidance on public benefit generally and guidance relating to public benefit and the advancement of education.

d. Grantmaking

The Trust fulfils its objectives and aims by providing grant funding to selected entities.

Page 2

THE RESOLUTION TRUST

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

Achievements and performance

a. Charitable activities

In 2022/23 the Trust primarily funded the Resolution Foundation in its goal to educate the public about issues that are important to the living standards of those on low-to-middle incomes, and deliver change in areas where this income group is currently disadvantaged.

The work that the Foundation produced in 2022/23 continued to make a substantial contribution to ensuring public policy discussion across the political spectrum retained a focus on living standards. The Foundation produces robust and primarily quantitative economic analysis on specific areas crucial for low-to-middle income households such as the cost of living and energy prices, incomes and inequality; jobs, skills and pay; housing, wealth and debt; tax and welfare; firms and productivity; places and spatial inequalities; macroeconomic policy, net zero, trade and intergenerational fairness, and continues to develop innovative work that addresses longerterm challenges and identifies strategies for shifting away from a low pay, low productivity economy.

During the year, the Foundation continued work on its Economy 2030 Inquiry (a major three-year project in partnership with the Centre for Economic Performance at London School of Economics, and supported by the Nuffield Foundation) focused on the underlying causes of the economic stagnation seen over the past 15 years including the low growth and high inequality that have disadvantaged low-to-middle income households. The Foundation is advocating for a comprehensive economic strategy for the UK to address these problems over the 2020s, as detailed in a major report, ‘Stagnation Nation’, which was published in December 2023.

During the year, the Trust also financially supported a number of other charitable causes, including:

Financial review

a. Financial position

The income to the charity comprises dividends and bank interest received of £475,382 (2022: £403,818). After taking account of net losses on investments of £2,488,799 (2022: net gains £3,735,109), charitable grants awarded of £1,917,536 (2022: £8,980,611) and running costs of the charity during the period, including investment management fees of £563,574 (2022: £547,937), the financial statements show a capital endowment balance of £37,560,088 (2022: £42,042,489) and restricted funds of £nil (2022: £2,500). The endowment funds are expendable to meet the charity's objectives.

b. Reserves policy

The Trustees do not have a specific policy to hold unrestricted funds and will award future grants from available unrestricted reserves and from the expendable endowment to meet the charity's objectives. At the year end unrestricted funds were £nil, restricted funds were £nil and the expendable endowment fund stood at £37,560,088.

Page 3

THE RESOLUTION TRUST

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

c. Investment policy and objectives

The Trustee's investment policy is to generate the highest possible returns over the long term, consistent with its risk appetite and appropriate protection for the capital of the Trust, to maximise the resources that can be expended on the Trust's charitable objectives. The Trust's policy is to accept reasonable capital volatility with no more than a 5% risk of capital loss over a 5-year period.

HSBC Private Bank (UK) Ltd, Goldman Sachs International and Waverton Investment Management Limited are responsible for the management of the Trust's investments. Monitoring of the investment performance takes place through regular investment reports and meetings. Investment performance results are reported and discussed at Trustee meetings and compared to industry benchmarks where applicable.

Investments are stated at market value, with realised and unrealised profits charged net to the statement of financial activities.

Structure, governance and management

a. Governing document

The Resolution Trust was established as a Trust Fund on 14 December 2007 and registered as charity number 01123128 on 7 March 2008. The Charity is governed by its Trust deed which was amended on 4 January 2016.

On 2 November 2015, the Resolution Trust (Trustee) Limited, company number 09852910, was incorporated and all the trustees of The Resolution Trust were appointed as its Directors. On 11 January 2016 the existing trustees of The Resolution Trust retired and The Resolution Trust (Trustee) Limited was appointed as the sole Corporate Trustee. The Directors of The Resolution Trust (Trustee) Limited act in the capacity of trustees of The Resolution Trust and are listed above.

b. Recruitment and appointment of new trustees

The Trustees are a self-appointing body with each Trustee initially appointed for a three-year term. New Trustees can be nominated by any existing Trustee and are appointed according to relevant skills and experience. Under the terms of the amended Trust deed, the Corporate Trustee, Resolution Trust (Trustee) Ltd, has the power to appoint new trustees. Clive Cowdery is the sole company law member of the corporate trustee.

c. Organisational 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 appointed a Chief Executive, Gavin Kelly in September 2015, who has day to day responsibility for all operational matters. In April 2019, Gavin Kelly's employment contract was amended in order for him to take up a formal part-time position at Resolution Foundation in addition to his role at Resolution Trust, so he can continue to oversee the pro-worker innovation work established by the Trust and now being further developed by the Resolution Foundation; and more widely support with the oversight of the work of the Resolution Foundation including on key projects like the Economy 2030 Inquiry and in the setting of the Living Wage.

d. Induction and training of new trustees

Trustees are provided with appropriate induction and training when appointed taking account of the nature of the charity.

Page 4

THE RESOLUTION TRUST

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

Structure, governance and management (continued)

e. Key management remuneration

Key management personnel of the Trust are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Trustee of the entity. They comprise the Directors of Resolution Trust (Trustee) Ltd, the Chief Executive and the Director of Resources. The remuneration of the Chief Executive is set by the Trustees.

All our staff and contractors are paid at least the Living Wage which is an hourly rate set and updated annually, based on the cost of living.

f. Related parties

Trustees are required to disclose all relevant interests, register them with the Chairman and withdraw from decisions where a conflict of interest arises. All Trustees give of their time freely and no Trustee remuneration or expenses were paid in the year. Related party transactions are disclosed in the notes to these financial statements.

g. Risk management

The Trust has a risk management strategy in place. The risk register is reviewed annually by the board of Trustees and continually monitored by the Chief Executive who takes responsibility for implementation of the policies and procedures identified to mitigate risks. In addition, risk reviews are undertaken regularly by the Trustees and Chief Executive to ensure the Trust's independence and political neutrality are maintained.

The most significant organisational risk identified during the year was related to the Trust’s core activity of grant making. Inappropriate use of grant funds could lead to reputational damage and potentially, investigation by the Charity Commission. Steps to mitigate this risk included updating internal procedures to ensure appropriate authorisation, reporting and due diligence procedures are in place. In addition, the Chief Executive and a trustee have undertaken reviews of specific areas of activity (such as the Trust’s support for the charitable content of Prospect magazine) to ensure that the processes used, and associated reporting mechanisms, are sufficiently robust.

The most significant external risk identified by Trustees during the year was associated with the investment portfolio framework, now split across three management firms to avoid the risks associated with a single manager. Poor investment decisions could lead to financial loss and an inability to fulfill the Trust’s charitable objectives. Mitigating measures included reviewing and updating monitoring and reporting procedures, regular performance and management reviews by Trustees, and ongoing input from specialist investment management advisors.

Plans for future periods

In 2022/2023, the Resolution Trust's ongoing funding commitments include:

Page 5

THE RESOLUTION TRUST

TRUSTEE'S REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2023

Statement of Trustee's responsibilities

The Trustee are responsible for preparing the Trustee's 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 & Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustee are required to:

The Trustee are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustee at the time when this Trustee's Report is approved has confirmed that:

Auditors

The auditors, haysmacintyre, have indicated their willingness to continue in office. The designated Trustee will propose a motion reappointing the auditors at a meeting of the Trustee.

Approved by order of the members of the board of Trustee and signed on their behalf by:

Clive Cowdery

Clive Cowdery

Director of The Resolution Trust (Trustee) Limited

Date: 30/07/2024

Page 6

THE RESOLUTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RESOLUTION TRUST

Opinion

We have audited the financial statements of The Resolution Trust (the 'charity') for the year ended 30 September 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 7

THE RESOLUTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RESOLUTION TRUST (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustee are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work 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 we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustee's Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which 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 charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 8

THE RESOLUTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RESOLUTION TRUST (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to registered charities, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to areas of estimation uncertainty and to manual accounting journals. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 9

THE RESOLUTION TRUST

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RESOLUTION TRUST (CONTINUED)

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 that we might state to the charity's trustees those matters we are required to state to them in an Auditors' 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

haysmacintyre

Statutory Auditors 10 Queen Street Place London EC4R 1AG

Date: 30 July 2024

haysmacintyre are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 10

THE RESOLUTION TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2023

Note
Income and
endowments from:
Investments
3
Other income
4
Total income and
endowments
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Net expenditure
before net
(losses)/gains on
investments
Net (losses)/gains on
investments
Net expenditure
Transfers between
funds
16
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Unrestricted
funds
2023
£
385,382
90,000
475,382
365,952
2,100,532
2,466,484
(1,991,102)
-
(1,991,102)
1,991,102
-
-
-
-		 Restricted
funds
2023
£
-
-
-
-
2,500
2,500
(2,500)
-
(2,500)
-
(2,500)
2,500
(2,500)
-		 Endowment
funds
2023
£
-
-
-
-
-
-
-
(2,488,799)
(2,488,799)
(1,991,102)
(4,479,901)
42,039,989
(4,479,901)
37,560,088		 Total
funds
2023
£
385,382
90,000
475,382
365,952
2,103,032
2,468,984
(1,993,602)
(2,488,799)
(4,482,401)
-
(4,482,401)
42,042,489
(4,482,401)
37,560,088		 As restated
Total
funds
2022
£
321,318
82,500
403,818
401,382
9,127,166
9,528,548
(9,124,730)
3,735,109
(5,389,621)
-
(5,389,621)
47,432,110
(5,389,621)
42,042,489

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 14 to 29 form part of these financial statements.

Page 11

THE RESOLUTION TRUST

BALANCE SHEET AS AT 30 SEPTEMBER 2023

Note
Fixed assets
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
14
Total net assets
Charity funds
Endowment funds
16
Restricted funds
16
Total funds		 3,192,500
759,053
3,951,553
(3,464,352)		 2023
£
39,572,887
39,572,887
487,201
40,060,088
(2,500,000)
37,560,088
37,560,088
-
37,560,088		 3,106,348
1,288,303
4,394,651
(4,095,741)		 As restated
2022
£
46,743,579
46,743,579
298,910
47,042,489
(5,000,000)
42,042,489
42,039,989
2,500
42,042,489

The financial statements were approved and authorised for issue by the Trustee and signed on their behalf by:

Clive Cowdery

Clive Cowdery

Director of The Resolution Trust (Trustee) Limited

Date: 30/07/2024

The notes on pages 14 to 29 form part of these financial statements.

Page 12

THE RESOLUTION TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2023

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2023
£
(5,686,525)
475,382
14,687,231
(10,005,338)
5,157,275
(529,250)
1,288,303
759,053		 As restated
2022
£
(6,610,631)
403,818
30,104,650
(22,936,194)
7,572,274
961,643
326,660
1,288,303

The notes on pages 14 to 29 form part of these financial statements

Page 13

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

1. General information

The Resolution Trust is an unincorporated charity, registered in England and Wales (registration number 1123128). The registered address is 2 Queen Anne's Gate, London, SW1H 9AA.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Resolution Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future, and on that basis the charity is considered to be a going concern.

2.3 Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donated services are valued at an estimate of the financial cost borne by the donor.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Page 14

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

2. Accounting policies (continued)

2.4 Expenditure (continued)

Support costs comprise costs for processing grants and applications, including support to actual and potential applicants; costs associated with the management and administration of the Trust's activities; and governance costs which are incurred with the general running of the Trust as opposed to the management and administration of it's activities. They include costs relating to constitutional and statutory requirements.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

2.5 Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

2.6 Taxation

The charity is exempt from tax on its charitable activities.

2.7 Investments

Investments are a form of basic financial instrument and comprise investments in quoted equity instruments which are initially recognised at their transaction value and are subsequently measured at their fair value as at the balance sheet date. Changes in fair value are recognised in the Statement of Financial Activities. Quoted stocks and shares are included in the Balance Sheet at the current market price quoted on a recognised stock exchange as at the reporting date.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Page 15

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

2. Accounting policies (continued)

2.11 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 Pensions

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.13 Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Investment income, gains and losses are allocated to the appropriate fund.

3. Investment income

Unrestricted
funds
2023
£
Investment income - HSBC
243,445
Investment income - Goldman Sachs
71,310
Investment income - AMP
56,960
Deposit account interest
13,667
385,382		 Total
funds
2023
£
243,445
71,310
56,960
13,667
385,382

Page 16

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

3. Investment income (continued)

Investment income - HSBC
Investment income - Goldman Sachs
Investment income - AMP
Deposit account interest		 As restated
Unrestricted
funds
2022
£
170,376
70,645
79,923
374
321,318		 As restated
Total
funds
2022
£
170,376
70,645
79,923
374
321,318

4. Other incoming resources

Other loan interest
Other loan interest		 Unrestricted
funds
2023
£
90,000
Unrestricted
funds
2022
£
82,500		 Total
funds
2023
£
90,000
Total
funds
2022
£
82,500

Page 17

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

5. Investment management costs

Unrestricted
funds
2023
£
Portfolio management - HSBC
77,249
Portfolio management - AMP
191,927
Portfolio Management - Goldman Sachs
61,528
Portfolio management - Waverton
25,738
Portfolio management - lntegrum
9,510
365,952
Unrestricted
funds
2022
£
Portfolio management - HSBC
117,218
Portfolio management - AMP
(12,370)
Portfolio Management - Goldman Sachs
59,857
Portfolio management - Waverton
21,380
Portfolio management - lntegrum
215,297
401,382		 Total
funds
2023
£
77,249
191,927
61,528
25,738
9,510
365,952
Total
funds
2022
£
117,218
(12,370)
59,857
21,380
215,297
401,382

6. Analysis of expenditure on charitable activities Summary by fund type

Unrestricted Restricted
funds funds Total
2023 2023 2023
£ £ £
Research and Education 2,100,532 2,500 2,103,032

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THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

6. Analysis of expenditure on charitable activities (continued)

Summary by fund type (continued)

Unrestricted
funds Total
2022 2022
£ £
Research and Education 9,127,166 9,127,166

7. Analysis of expenditure by activities

Research and Education
Research and Education		 Grant
funding of
activities
2023
£
1,917,536
Grant
funding of
activities
2022
£
8,980,611		 Support
costs
2023
£
185,496
Support
costs
2022
£
146,555		 Total
funds
2023
£
2,103,032
Total
funds
2022
£
9,127,166

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THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Prospect Magazine
Resolution Foundation
Old Vic
Save the Children
West Youth Zone
Warwick Academy
Grants to individuals		 Total
funds
2023
£
1,358,000
182,500
350,000
-
25,000
2,036
-
1,917,536		 Total
funds
2022
£
1,108,000
7,539,968
100,000
150,000
25,000
45,078
12,565
8,980,611

Analysis of support costs

Staff costs
Support charges
IT costs
Sundries
Staff training and expenses
Auditors' remuneration
Auditors' remuneration for non audit work
Accountancy and legal fees		 Total
funds
2023
£
125,722
3,624
2,027
1,078
-
14,160
-
38,885
185,496		 Total
funds
2022
£
117,636
3,624
3,349
1,076
43
4,320
1,200
15,307
146,555

Page 20

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

8. Auditors' remuneration

2023 2022
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 14,160 4,320
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above - 1,200

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
104,075
14,362
7,285
125,722		 2022
£
96,867
13,988
6,781
117,636

From June 2019, all Resolution Trust salaries have been paid by Resolution Foundation under the terms of shared employment contracts and a service level agreement between the two organisations. Resolution Trust's portion of the staff salaries are then repaid to the Resolution Foundation.

The average number of persons employed by the Charity during the year was as follows:

2023 2022
No. No.
Employees 2 2

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
No. No.
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000
1 -

The total employee benefits paid to key management personnel during the year amounted to £125,722 (2022: £117,636).

Page 21

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

10. Trustee's remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL) .

During the year ended 30 September 2023, no Trustee expenses have been incurred (2022 - £NIL) .

11. Fixed asset investments

Cost or valuation
At 1 October 2022
Additions
Disposals
Revaluations
At 30 September 2023
Net book value
At 30 September 2023
At 30 September 2022		 Listed
investments
£
46,743,579
10,005,338
(14,687,231)
(2,488,799)
39,572,887
39,572,887
46,743,579

The listed investments are held in a mixed portfolio, mainly invested in shares, and managed by HSBC Private Bank (UK) Limited, Goldman Sachs International, Waverton Investment Management Limited and Integrum Holdings plus the AMP Capital Global Infrastructure Fund (now Digital Bridge) investment which is a limited partnership fund registered in Luxemburg.

Page 22

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

11. Fixed asset investments (continued)

Fixed interest
Equities
Alternative investments
Cash
Funds		 2023
£
4,471,272
15,678,590
18,775,617
311,628
335,780
39,572,887		 2022
£
3,951,220
26,493,661
14,194,824
1,490,115
613,759
46,743,579

The Trust is subject to certain investment risks:

The Trust manages these investment risks by retaining expert advisers and operating an investment policy that provides a high degree of diversification of holdings within investment assets classes that are mainly quoted on recognised stock exchanges. All investments are carried at fair value. The basis of fair value is equivalent to the market value using the bid value.

12. Debtors

Due after more than one year
Other debtors
Due within one year
Other debtors		 2023
£
3,172,500
20,000
3,192,500		 As restated
2022
£
3,082,500
23,848
3,106,348

Page 23

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

13. Creditors: Amounts falling due within one year

Trade creditors
Other creditors		 2023
£
192
3,464,160
3,464,352		 2022
£
32,173
4,063,568
4,095,741

14. Creditors: Amounts falling due after more than one year

2023 2022
£ £
Other creditors 2,500,000 5,000,000

15. Prior year adjustments

An adjustment has been made to recognise the interest receivable on the loan to EdCity in the prior period, which had not previously been recognised resulting in an understatement of income.

As
previously Total
reported Adjustment funds
2022 2022 2022
£ £ £
Other income - 82,500 82,500
Transfers between funds 9,207,230 (82,500) 9,124,730
Other debtors 3,000,000 82,500 3,082,500
Endowment funds 41,957,489 82,500 42,039,989

Page 24

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

16. Statement of funds

Statement of funds - current year

Unrestricted
funds
General fund
Endowment
funds
Endowment fund
Restricted
funds
Accenture/BGV
work
Total of funds		 Balance at 1
October
2022
£
-
42,039,989
2,500
42,042,489		 Income
£
475,382
-
-
475,382		 Expenditure
£
(2,466,484)
-
(2,500)
(2,468,984)		 Transfers
in/out
£
1,991,102
(1,991,102)
-
-		 Gains/
(Losses)
£
-
(2,488,799)
-
(2,488,799)		 Balance at
30
September
2023
£
-
37,560,088
-
37,560,088

Page 25

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
General fund
Endowment
funds
Endowment fund
Restricted
funds
Accenture/BGV
work
Total of funds		 Balance at
1 October
2021
£
-
47,429,610
2,500
47,432,110		 As restated
Income
£
403,818
-
-
403,818		 Expenditure
£
(9,528,548)
-
-
(9,528,548)		 As restated
Transfers
in/out
£
9,124,730
(9,124,730)
-
-		 Gains/
(Losses)
£
-
3,735,109
-
3,735,109		 Balance at
30
September
2022
£
-
42,039,989
2,500
42,042,489

17. Summary of funds

Summary of funds - current year

General funds
Endowment
funds
Restricted funds		 Balance at 1
October
2022
£
-
42,039,989
2,500
42,042,489		 Income
£
475,382
-
-
475,382		 Expenditure
£
(2,466,484)
-
(2,500)
(2,468,984)		 Transfers
in/out
£
1,991,102
(1,991,102)
-
-		 Gains/
(Losses)
£
-
(2,488,799)
-
(2,488,799)		 Balance at
30
September
2023
£
-
37,560,088
-
37,560,088

Page 26

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

17. Summary of funds (continued)

Summary of funds - prior year

General funds
Endowment
funds
Restricted funds		 Balance at
1 October
2021
£
-
47,429,610
2,500
47,432,110		 As restated
Income
£
403,818
-
-
403,818		 Expenditure
£
(9,528,548)
-
-
(9,528,548)		 As restated
Transfers
in/out
£
9,124,730
(9,124,730)
-
-		 Gains/
(Losses)
£
-
3,735,109
-
3,735,109		 Balance at
30
September
2022
£
-
42,039,989
2,500
42,042,489

18. Analysis of net assets between funds Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Fixed asset investments
2,012,799
Debtors due after more than one year
3,172,500
Current assets
779,053
Creditors due within one year
(3,464,352)
Creditors due in more than one year
(2,500,000)
Total
-		 Endowment
funds
2023
£
37,560,088
-
-
-
-
37,560,088		 Total
funds
2023
£
39,572,887
3,172,500
779,053
(3,464,352)
(2,500,000)
37,560,088

Page 27

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

18. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Fixed asset investments
Debtors due after more than one year
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
funds
2022
£
4,703,590
3,082,500
1,309,651
(4,095,741)
(5,000,000)
-		 Restricted
funds
2022
£
-
-
2,500
-
-
2,500		 Endowment
funds
2022
£
42,039,989
-
-
-
-
42,039,989		 Total
funds
2022
£
46,743,579
3,082,500
1,312,151
(4,095,741)
(5,000,000)
42,042,489

19. Reconciliation of net movement in funds to net cash flow from operating activities

20.

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Gains/(losses) on investments
Dividends, interests and rents from investments
Loss on disposal of social investment
Increase in debtors
Increase/(decrease) in creditors
Net cash used in operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2023
£
(4,482,401)
2,488,799
(475,382)
-
(86,152)
(3,131,389)
(5,686,525)
2023
£
759,053
759,053		 As restated
2022
£
(5,389,621)
(3,735,109)
(403,818)
39,969
(3,086,348)
5,964,296
(6,610,631)
2022
£
1,288,303
1,288,303

Page 28

THE RESOLUTION TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2023

21. Analysis of changes in net debt

Cash at bank and in hand At 1
October
2022
£
1,288,303
1,288,303		 Cash flows
£
(529,250)
(529,250)		 At 30
September
2023
£
759,053
759,053

22. Pension commitments

The Trust operates a defined contribution pension scheme through The Pensions Trust with contributions made by both the employer and employees at variable rates. The assets of the scheme are held separately from those of The Resolution Trust. Pension costs charged represent contributions payable by The Resolution Trust to The Pensions Trust. Total pension costs in the current year amounted to £7,285 (2022: £6,781). At the year end £nil was due to The Pensions Trust (2021: £nil).

23. Related party transactions

One of the trustees of The Resolution Trust is a director and the sole member of Resolution Media Limited which in turn owns Prospect Publishing Limited. There is no mechanism for transfer of income, profit or assets of Resolution Media Limited directly or indirectly to its sole member/the trustee. The Trust's commitment to fund the charitable content of Prospect Magazine was taken by the independent trustees in June 2015. Funding is granted specifically for charitable content being primarily educational, which improves public understanding and promotes informed debate about economic and social sciences, and related subjects including the arts, sciences, heritage and culture. Monitoring procedures and legal protections are in place to ensure all funding is applied exclusively in furtherance of the Trust's charitable purposes and objectives, and for public benefit.

Page 29