Charity registration number 1125130
Company registration number 06446031 (England and Wales)
THE FINBOROUGH FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
THE FINBOROUGH FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
C Pettiward J M Pettiward J R Pettiward
Trustees Charity number 1125130 Company number 06446031
06446031
(Appointed 2 March 2021) (Appointed 15 December 2021)
Registered office 34 Ely Place London EC1N 6TD Independent examiner Grunberg & Co Ltd 5 Technology Park Colindeep Lane Colindale London United Kingdom NW9 6BX
THE FINBOROUGH FOUNDATION
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 3 |
| Independent examiner's report | 5 |
| Statement of financial activities | 6 |
| Statement of financial position | 7 |
| Notes to the financial statements | 8 - 13 |
THE FINBOROUGH FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees present their annual report and financial statements for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 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 UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
Objectives and activities
The Finborough Foundation objectives and activities during the period were to advance the training & study of medicine, science and the arts; to promote the conservation, protection and improvement of the environment; to support homeless children and adults and protect them from abuse.
Significant activities
The Foundation has made donations to selected registered charities whose aims accord to those of the Foundation. This has enabled the charity to effectively meet the charitable purpose detailed above.
Public benefit
The Trustees confirm that they have complied with their duty to have due regard to the public benefit in exercising their powers and duties.
Grant making
The Trustees review applications for grants and determine those which best accord to the Foundation's aims in deciding grants to be made.
Achievements and performance
Charitable activities
During the year the Foundation made grants to 18 charities. The Foundation receives favourable feedback and updates from these beneficiaries.
Financial review
Financial position
The Foundation's portfolio of properties donated by the founder, Mr Charles Pettiward, in 2009 continues to be managed and maintained to a high standard and underpins the financial strength of the Foundation. The Trustees also ensure donations made are within available resources. As a result, the financial position of the Foundation is very strong. In particular, the income of many charities has suffered as a result of the Covid 19 pandemic, but to date The Foundation has suffered no significant impairment in its rental income.
As at 31 December 2021 the Trustees obtained a desktop appraisal of the value of the property portfolio of £8,084,500. As a result, the valuation of the properties in the accounts has been reduced by £310,750. The Trustees do not believe this makes a significant difference to the long term future of the Foundation or its planned activities.
The charity does not maintain a policy for holding reserves, this is to ensure grants made are within available resources and adequately funded by the income generated from the Foundation's investments. The Foundation does not require any additional reserves.
Going concern
The financial strength of the Foundation means there is no significant uncertainty about the charity continuing as a going concern.
Principal funding sources
The Foundation's primary source of incoming resources is generated from the net rental income derived from its property portfolio.
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THE FINBOROUGH FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
Investment policy and objectives
The Foundation has to date maintained its investments in the properties originally donated by the founder, Mr Charles Pettiward. The Trustees are considering widening the spread of investments to reduce its concentration in London Property as and when The Foundation’s professional advisors consider the market conditions for the sale of properties in London are favourable.
Structure, governance and management
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
P Hamilton (Resigned 4 August 2022) C Pettiward J M Pettiward (Appointed 2 March 2021) J R Pettiward (Appointed 15 December 2021) M R Winstanley (Resigned 10 February 2021)
Recruitment and appointment of new Trustees
Trustees are primarily selected by the Founder of the Foundation, Mr Charles Pettiward, who donated £5 million of property to the Foundation in 2009. During the year Mark Robert Winstanley resigned on 10 February 2021, Josephine Mary Pettiward was appointed on 2 March 2021 and James Roger Pettiward was appointed 10 December 2021
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number 06446031 (England and Wales)
Registered Charity number
1125130
Registered office 34 Ely Place London EC1N 6TD
Trustees
Charles Pettiward Philip Hamilton (resigned 4 August 2022) Josephine Mary Pettiward (appointed 2 March 2021) James Roger Pettiward (appointed 15 December 2021)
Independent Examiner
Grunberg & Co Limited 5 Technology Park Colindeep Lane Colindale London NW9 6BX
Solicitors
BPC Law Omni House 252 Belsize Road London NW6 4BT
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THE FINBOROUGH FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees' report was approved by the Board of Trustees.
C Pettiward Trustee
24 October 2022
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THE FINBOROUGH FOUNDATION
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2021
The Trustees, who are also the directors of The Finborough Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that 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 Companies Act 2006. 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.
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THE FINBOROUGH FOUNDATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE FINBOROUGH FOUNDATION
I report to the Trustees on my examination of the financial statements of The Finborough Foundation (the Charity) for the year ended 31 December 2021.
Responsibilities and basis of report
As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Grunberg & Co Ltd
Gedalia Waldman BA FCA
5 Technology Park Colindeep Lane Colindale London NW9 6BX United Kingdom
Dated: 31 October 2022
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THE FINBOROUGH FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2021 | 2020 | ||
| Notes | £ | £ | |
| Income and endowments from: | |||
| Investments | 2 | 240,486 | 262,476 |
| Other income | 3 | 20 | 114 |
| Total income | 240,506 | 262,590 | |
| Expenditure on: | |||
| Charitable activities | 4 | 255,246 | 343,008 |
| Net gains/(losses) on investments | (310,750) | - | |
| Net expenditure for the year/ | |||
| Net movement in funds | (325,490) | (80,418) | |
| Fund balances at 1 January 2021 | 8,546,985 | 8,627,403 | |
| Fund balances at 31 December 2021 | 8,221,495 | 8,546,985 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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THE FINBOROUGH FOUNDATION
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
| Notes Fixed assets Investment properties 9 Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2021 £ 130,784 76,233 207,017 (70,022) |
£ 8,084,500 136,995 8,221,495 8,221,495 8,221,495 |
2020 £ 81,911 107,036 188,947 (37,212) |
£ 8,395,250 151,735 |
|---|---|---|---|---|
| 8,546,985 | ||||
| 8,546,985 | ||||
| 8,546,985 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 24 October 2022
C Pettiward
Trustee
Company registration number 06446031
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THE FINBOROUGH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
Charity information
The Finborough Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 34 Ely Place, London, EC1N 6TD.
1.1 Accounting convention
The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 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. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
1.4 Income
Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
1.5 Expenditure
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 of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
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THE FINBOROUGH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1 Accounting policies
(Continued)
1.7 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 three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 Financial instruments
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity's balance sheet when the Charity becomes 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 balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.
1.9 Taxation
The charity is exempt from corporation tax on its charitable activities.
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THE FINBOROUGH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
| 2 | Investments | ||
|---|---|---|---|
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Rental income | 240,477 | 262,376 | |
| Interest receivable | 9 | 100 | |
| 240,486 | 262,476 | ||
| 3 | Other income | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Other income | 20 | 114 | |
| 4 | Charitable activities | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Grant funding of activities (see note 5) | 136,000 | 136,000 | |
| Share of support costs (see note 6) | 98,299 | 184,772 | |
| Share of governance costs (see note 6) | 20,947 | 22,236 | |
| 255,246 | 343,008 | ||
| 5 | Grants payable | ||
| 2021 | 2020 | ||
| £ | £ | ||
| Grants to institutions: | |||
| Other | 136,000 | 136,000 |
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THE FINBOROUGH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
5 Grants payable
(Continued)
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6 Support costs
| Support costs Governance costs £ £ Rates and water 2,494 - Insurance 2,597 - Light and heat 1,385 - Repairs and renewals 38,132 - Property management fees 29,069 - Service charges 24,526 - Bank charges 96 - Auditors' remuneration - - Independent examiners' fee - 5,503 Legal fees - 9,024 Other professional fees - 2,280 Accountancy - 4,140 98,299 20,947 Analysed between Charitable activities 98,299 20,947 |
2021 Support costs Governance costs £ £ £ 2,494 2,857 - 2,597 2,458 - 1,385 2,658 - 38,132 121,920 - 29,069 33,347 - 24,526 21,451 - 96 81 - - - 7,587 5,503 - - 9,024 - 9,716 2,280 - 1,865 4,140 - 3,068 119,246 184,772 22,236 119,246 184,772 22,236 |
2020 £ 2,857 2,458 2,658 121,920 33,347 21,451 81 7,587 - 9,716 1,865 3,068 |
|---|---|---|
| 207,008 | ||
| 207,008 |
7 Trustees
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Charity during the year.
8 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
There were no employees whose annual remuneration was more than £60,000.
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THE FINBOROUGH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
| 9 Investment property Fair value At 1 January 2021 Net gains or losses through fair value adjustments At 31 December 2021 |
2021 £ 8,395,250 (310,750) |
|---|---|
| 8,084,500 |
Investment properties are carried at fair value, determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate. No depreciation is provided. Changes in fair value are recognised in the Statement of Financial Activities.
| Freehold Long leasehold Short leasehold 10 Debtors Amounts falling due within one year: Other debtors 11 Creditors: amounts falling due within one year Other creditors Accruals and deferred income 12 Related party transactions |
2021 £ 2,079,500 6,005,000 - 8,084,500 2021 £ 130,784 2021 £ 60,420 9,602 70,022 |
2020 £ 2,170,250 6,225,000 - |
|---|---|---|
| 8,395,250 | ||
| 2020 £ 81,911 |
||
| 2020 £ 27,187 10,025 |
||
| 37,212 | ||
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THE FINBOROUGH FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
12 Related party transactions
(Continued)
The freehold of certain properties are subject to a head lease to a Management Company, in which The Finborough Foundation holds shares. The Management Companies then sublease the flats in these properties either to third parties or back to The Finborough Foundation.
Payments totalling £9,024 (2020 - £9,725) were made to Bower Cotton Hamilton LLP in respect of legal services provided to the charity. Included in debtors is an amount of £3,527 (2020 - £4,847) held by Bower Cotton Hamilton LLP on behalf of the charity. Philip Hamilton is a member of Bower Cotton Hamilton LLP and was a trustee of the charity throughout the reporting period (resigned 4 August 2022).
Included in other creditors is an amount of £35,000 advanced to the charity by a Trustee, Mr Charles Pettiward. This loan is interest free and repayable on demand and no benefit was received by Mr Pettiward in exchange for this loan.
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