## **The Saïd Foundation** 

Annual Report and Audited Accounts for the year ended 31 August 2023 

Charity number: 1125521 Company number: 06621764 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

|**Table of Contents**|**Page**|
|---|---|
|Reference and Administrative Information|3|
|1. Mission, Objectives and Programmes|4|
|2. Review of Programmes||
|-<br>Summary|5|
|-<br>Saїd Business School Programme|5|
|-<br>Humanitarian Programme|6|
|-<br>Scholarship Programme|7|
|-<br>Other Charitable Expenditure|8|
|3. Trustees and Management|8|
|4. Financial Review|9|
|5. Governance Information|10|
|6. Statement of Trustees’ Responsibilities|14|
|7. Independent Auditors’ Report|15|
|8. Financial Statements||
|-<br>Statement of Financial Activities|18|
|-<br>Balance Sheet|19|
|-<br>Cash Flow Statement|20|
|-<br>Notes to the Financial Statements|21|



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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **Reference and Administrative Information** 

|**Charity Registration Number** <br>**Company Registration Number**<br>**Correspondence and registered office address**<br>**Website**<br>**Board of Trustees**<br>**Chief Executive Officer**<br>**Auditors**<br>**Bankers**<br>**Legal Advisers**<br>**Investment and**<br>**Property Advisers**|1125521<br>06621764<br> Floor 3, College House, 272 King’s Road, London, SW3 5AW<br>www.saidfoundation.org<br>Mr Wafic R Saїd (Chairman)<br>Dr Rasha Saїd (Deputy Chair)<br>Mr Jonathan Aitken<br>Mrs Sirine Idilby<br>Sir Michael Peat<br>Lord Powell of Bayswater<br>Mrs A Rosemary Saїd<br>Mr Khaled R Saїd<br>Mrs Nadine Zakaria<br>Ms Catherine Thomé<br>CLA Evelyn Partners Limited<br>Cumberland House<br>15-17 Cumberland Place<br>Southampton<br>SO15 2BG<br>Citi Private Bank<br>Citigroup Centre<br>Canada Square<br>Canary Wharf<br>London<br>E14 5LB<br>UBS Zurich AG<br>Paradeplatz 6<br>CH-8098 Zurich<br>Switzerland<br>Bates Wells<br>10 Queen Street Place<br>London<br>EC4R 1BE<br>Stephenson Harwood<br>1 Finsbury Circus<br>London<br>EC2M 7SH<br>Capital Generation Partners LLP<br>Berkeley Square House<br>London<br>W1J 6BX|
|---|---|



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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **Trustees’ Report incorporating the Strategic Report** 

The Trustees present the report and financial statements for the period from 1 September 2022 to 31 August 2023. The Trustees are also Directors of the company for the purposes of the Companies Act 2006. The financial statements have been prepared in accordance with the accounting policies set out therein and comply with the Memorandum and Articles of Association, applicable law, _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)_ and the Companies Act 2006. 

## **1. Mission, Objectives and Programmes** 

The charitable object of The Saїd Foundation as set out in its Memorandum and Articles of Association is “to advance all exclusively charitable purposes in accordance with English law for the public benefit”. 

The Trustees retain a focus on the Middle East, particularly the priority areas of Syria, Palestine, Lebanon and Jordan. However, they also fund projects in the UK through the Saїd Business School Programme and the Saїd Research Initiative. In October 2023, the Board of Trustees reviewed the vision, mission, guiding principles and objectives set out below. 

The **vision** is of a world where people from all backgrounds can realise their full potential. 

The **mission** is to bring positive and lasting change to the lives of children, young people and the wider community through carefully selected investments in themes and geographies with which the Saїd family and The Saїd Foundation have developed strong links and expertise. 

The **guiding principles** are as follows: 

1. A conviction that education is a powerful tool to change lives for the better and that higher education, in particular, plays a valuable role in creating enlightened and effective leadership which benefits the broader community. 

2. An approach that is non-sectarian and non-political. 

3. Recognition of the need to build capacity and capability across the countries in which the Foundation works. 

4. An understanding of the importance of bridge building, communication, and respect across cultures. 

5. A desire to enhance and learn from the thematic and regional experience of the Foundation and to benefit from synergy between programmes. 

6. The potential to promote philanthropy and to maximise the impact of specific projects through partnerships with organisations that share our objectives. 

## The **objectives** are: 

1. To assist the Saїd Business School at Oxford University in its pursuit of excellence and its goal of achieving a top ten place among global business schools, as well as in its desire to promote the beneficial role of business in society. 

2. To support the humanitarian relief and development needs of displaced Syrian people. 

3. To support the higher education of students in order to promote the sustainable development of the Levant region. 

4. To improve the lives of disadvantaged communities in the Levant region. 

5. To increase understanding of Britain’s Muslim communities among its non-Muslims and to foster a stronger sense of belonging in the UK among Muslim communities in the UK. 

6. To enable disadvantaged students in the UK and overseas to realise their full potential through educational and vocational training, and internship opportunities. 

These objectives are pursued through three main related **programmes** : 

1. The **Saїd Business School Programme** makes grants to the Saїd Business School Foundation for its Strategic Development Fund with a view to establishing and maintaining the School as one of the world’s top and most influential business schools. 

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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

2. The **Humanitarian Programme** supports the educational and development needs of displaced Syrians in Lebanon and in Jordan. 

3. The **Scholarships Programme** provides financial support, directly and with partner organisations, to students from the Levant region who demonstrate particular potential to pursue higher education so that they can expand their skills and knowledge in relevant fields and thereby enhance their contribution to the development of the region. 

In addition to these three main programmes, the Foundation also funds other charitable organisations. 

The Foundation is non-sectarian and non-political. Its partners are individuals, non-governmental organisations, educational institutions, UN agencies and other charities. The Foundation regularly reviews its objectives and programme priorities, especially those in the Levant region, to ensure the most effective deployment of its funds. 

## **2. Review of Programmes** 

## **Summary** 

The Foundation made grant commitments of £6.5 million in 2022/23 across the three main charitable programmes, as well as through other charitable expenditure. A summary of this grant expenditure is shown below, with further detail set out at note 4 to the accounts: 


**----- Start of picture text -----**<br>
Grants Committed  Grants Committed<br>Programme<br>2022/23 (£’000s)  2021/22 (£’000s)<br>Saїd Business School Programme  1,294  1,232<br>Humanitarian Programme  -  10<br>Scholarship Programme  982  1,326<br>Other Charitable Expenditure  4,265  -<br>TOTAL  6,541  2,568<br>**----- End of picture text -----**<br>


Other charitable expenditure included: the Chance to Change Foundation, Saïd Research Initiative and Turquoise Mountain (Palestine). 

The following sections give more detail about the aims and impact of each programme. 

## **Saїd Business School Programme** 

An important focus for the Saїd Foundation is to assist the strategic development of the Saїd Business School at the University of Oxford. In support of that goal, the Foundation provides annual funding to the Saїd Business School Foundation (SBSF) for its Strategic Development Fund (SDF) and for its legal and administrative costs. That annual funding rises each year in line with the CPI inflation index, with a 5% cap on the annual uplift.  In 2022/23 it was £1.3 million. 

The purpose of the SDF is to support initiatives which will make a strategic difference to the successful development of the Saїd Business School and to assist the School in its pursuit of excellence in research, teaching and relevance to business practitioners, with a view to establishing and maintaining the School as one of the best in the world. 

During 2022/23, SBSF made payments, under multi-year agreements entered into in previous years, which support its medium-term objectives: 

- to assist the School to strengthen those functions which are of critical importance to the success of a business school; 

- to assist the School to strengthen the key points of differentiation that underpin and enhance its brand; 

- to assist the School to attract top calibre students, particularly through the provision of scholarships; 

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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

- to attract and retain top calibre faculty and staff; and 

- to assist the School to establish and maintain itself as one of the world’s top ten schools as measured by a range of authoritative rankings of business schools. Further details about this grant-making activity can be found in SBSF’s annual report. 

During 2022/23, SBSF awarded five new and one increased multi-year SDF grants, totalling £3,852,000 (2022: one grant for £500,000). The new and increased grants related to Oxford Saïd Online (£1.6 million), Strategic Programme Management Office (£0.5 million), Development and Alumni Relations (£0.5 million), Doctoral Student Research Fund (£0.1 million) and continuing support for the School in awarding scholarships to MBA students (£1.1 million). In addition, the School returned to the SBSF £20,000 of unspent grants (2022: £1.7 million) relating to DPhil Research Expenses Fund. 

In 2017/18, the Foundation made a significant commitment to support the School’s redevelopment of the Osney Power Station, which is adjacent to the School, to provide a new world-class executive education facility called the Global Leadership Centre. With matched funding from the University, SBSF made a commitment of £15 million to support the project, funded by the Chairman and made via the Saïd Foundation. Of this total, £10,165,000 had been paid to the School by 31 August 2023. £4,835,000 remains to be paid. 

## _Assessment of impact_ 

The Foundation’s funding for the Strategic Development Fund requires, amongst other conditions, that the School does not cease to be ranked as one of the top three schools in the UK for more than three consecutive years. The Board therefore assesses the impact of its support by monitoring the achievement of this objective. In 2023, the School was placed 28[th] globally (2022: 31[st] ) and third in the UK (2022: third) in the Financial Times’ MBA rankings. This means the School continues to meet the objective set by the Board. Improving the global ranking is an ongoing strategic focus for the School. 

## **Humanitarian Programme** 

Since 2011/12, the Foundation has focussed the Humanitarian Programme on relief and development support for Syrian refugees and host communities in Jordan and Lebanon, by funding projects in the fields of education, healthcare, child protection and emergency relief. In 2022/23, the Foundation had three continuing partnerships focused on child protection, higher education, and vocational training. 

- Further to an Appeal held in November 2018, the Asfari Foundation and the Saïd Foundation granted the **International Rescue Committee** (IRC) £5.5 million to continue their work in Lebanon to improve Syrian refugee children’s protection and access to education. A four-year agreement was signed between the parties. The programme started in January 2019 and ended in December 2022. In 2022, the IRC provided case management services and psychosocial support to street working children.  One hundred teenagers received vocational training enabling them to set up work initiatives in a safe environment.  Close to a thousand households received emergency cash assistance to address emergencies such as eviction threats. Adolescent girls at risk of gender-based violence or early marriage were empowered through life skills training. 

- The Foundation has partnered with the **UNHCR** since 2014.  UNHCR implements a worldwide scholarship programme for refugees known as the DAFI programme.  This programme has been enabling access to higher education for refugee students in their country of asylum since 1992.  The Foundation has been funding scholarships for Syrian refugees in Lebanon and Jordan since 2014.  In November 2019, the Board of Trustees approved a further grant of $1,061,051 to fund the undergraduate studies of 41 young Syrians in Lebanon and in Jordan from 2019 until graduation in 2023. 

- In July 2021, the Board granted $504,132 for a one-year **UNHCR for livelihood project** to train 100 students in Jordan. This programme provided accredited vocational and micro-business training for Syrian refugees and vulnerable Jordanians in urban areas across Jordan. Following the successful completion of the training, beneficiaries received seed funding and technical support through mentors to assist them in starting their own businesses. This programme was completed in September 2022. 

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The Saïd Foundation Annual Report and Financial Statements 2022/23 

## _Assessment of Impact_ 

By supporting implementing partners that have a strong record of capability and achievement in the region, the Foundation aims to maximise the impact of its grant-making and to reach the most vulnerable beneficiaries. All projects are funded under formal agreements with payment instalments conditional upon the effective achievement and reporting of project outcomes. 

The CEO conducted visits to Lebanon and to Jordan to monitor these programmes in May and July 2022. 

Throughout the year, partners provided regular updates as well as monitoring and evaluation reports, and case studies of beneficiaries who were supported. 

## **Scholarship Programme** 

## _Scholarships in the UK_ 

The Saïd Foundation has offered educational scholarships and training opportunities since 1984. Its Scholarship Programme aims to empower students through educational opportunities and provide skills needed for the development of the region. It is targeted towards outstanding individuals who demonstrate the potential to be future leaders and drivers of change within the Levant. Since 1984 the Foundation has  supported over 670 scholars from the region to study in the UK. 

By bringing talented scholars to study at a postgraduate level in the UK, the intention is to provide them with skills and knowledge not widely available in the Middle East, to expose them to critical and independent ways of learning and thinking, and thereby to help to create future leaders in their professional fields. 

Saïd Foundation Scholarships are awarded based on merit. Applications are carefully considered by officers and Trustees of the Foundation as well as by external assessors selected from among the Foundation’s alumni. The Foundation bases its decisions on candidates’ academic excellence, the usefulness of the subject to their home counties, the candidates leadership potential, their commitment to serving their communities, their future career intentions and their practical ability to make use of the knowledge to be gained in the UK on their return to the Middle East. 

For the 2023/24 application round, the Saïd Foundation received 708 (2022/23: 796) applications, of which 600 (2022/23: 700) met the programme’s eligibility criteria. The selection process lasted eight months, with award letters sent from June to August 2023. Selected scholars arrived in the UK in September 2023. The Foundation supports 21 scholars for postgraduate study in the UK (2022/23 academic year: 29 scholars): 20 scholars are supported for a one-year master’s degree, with one scholar concluding PhD studies. The scholars come from Syria (9), Jordan (3), Lebanon (5) and Palestine (4). 

The total amount granted under Scholarship Programmes (including tuition fees, maintenance awards and travel expenses) was £982,000 (2022: £1,326,000). This figure includes the £146,000 (2022: £280,000) cost of scholars selected separately to the main programme (see Other Scholarship Grants below). 

The Foundation seeks to maximise the number of scholars it can support by working with partners who contribute financially towards scholarships. Of the 21 current scholars, three scholars are also supported by the Foreign, Commonwealth & Development Office’s Chevening Scholarship programme. The Saïd Foundation has partnership agreements with 28 UK universities each providing a tuition fee discount of 20-50%. 

Over the last few years, the Foundation has improved communications with its alumni and keeps an up-to-date database of over 630 former scholars. 

## _Rhodes Scholarships for Syria, Jordan, Lebanon and Palestine_ 

In September 2022, two new Rhodes Scholars from the Foundation’s target countries arrived in the UK to begin their postgraduate studies at the University of Oxford, one from Syria and one from Lebanon. They will spend between three to four years at the University of Oxford. This was the sixth year of the scholarship agreement between the Saïd Foundation, the Rhodes Trust and the University of Oxford, bringing the total number of Saïd Rhodes students to thirteen. 

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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## _Assessment of Impact_ 

The Foundation continues to monitor the Scholarships Programme throughout the year and an internal evaluation report is prepared every 3-5 years. The latest evaluation report in September 2022 concluded that the Scholarships Programme continued to meet its objectives of providing talented individuals with educational opportunities that not only enhance their personal careers but also contribute to the development of the Levant region. 

## _Other Scholarship Grants_ 

In addition to the main Scholarship Programme, four other scholarships were awarded to one European, one US, one Canadian and one UK scholar. 

## **Other Charitable Expenditure** 

## _Chance to Change Foundation_ 

In October 2022, an agreement was signed with the Chance to Change Foundation (CCF) The £50,000 grant assists the fulfilment of CCF’s objectives: to promote the care, resettlement and rehabilitation of offenders and ex-offenders and the prevention of crime in particular but not exclusively by providing educational programmes within prisons and by acting as a resource for people leaving prison. 

## _Saïd Research Initiative_ 

In March 2023, the Foundation signed a six-year £3 million grant agreement with University College London. The grant funds researcher positions across UCL and Moorfields Eye Hospital to work collaboratively on research to prevent or cure vision loss due to dry age-related macular degeneration (AMD). The donation is used to fund a team of two research fellows, one clinical fellow, one technician, two PhD students and one project administrator. Mr Khaled Saïd is on the Advisory Board which meets annually to monitor progress. 

## _Turquoise Mountain (Palestine)_ 

In June 2023, an agreement for a three-year grant of up to $1.5 million was signed with Turquoise Mountain (TM) for Preserving Palestinian Craft Heritage. As successfully achieved in Jordan (and other countries), TM will assist artisans to innovate on their designs and techniques and produce quality products that can access higher value segments of the craft economy locally and internationally. TM’s objectives are to:  mentor and train entrepreneurs; support 50 small businesses and workshops to become financially sustainable; generate craft sales for artisans; save 20 workshops from closure; upskill 250 artisans and designers through business skills and design training; launch 10 new artisanal businesses; immerse 3,000 people in Palestinian in craft heritage through an exhibition; and run engagement events for 1,000 members of the community. 

## _Other Grants_ 

In October 2022, a grant agreement was signed between the Foundation and Homerton College for £1,500 to support two disadvantaged students to participate in the Homerton Changemakers project during the academic year 2022/23. 

In November 2022, a grant was signed with The Prince’s Trust for £9,500 to support ten young people from disadvantaged backgrounds through vocational training in London. 

## **Plans** 

The Saïd Foundation plans to continue funding the Saïd Business School Programme and Scholarship Programme, along with supporting Humanitarian work whenever funds permit. 

## **3. Trustees and Management** 

During the year, the Board of Trustees met in September 2022 and February 2023. The Audit Committee met in February 2023. The Investment Committee met in November 2022, April 2023 and August 2023. Both the Projects Committee and the Student Committee met in May 2022. 

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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **4. Financial Review** 

## **Summary of Financial Performance** 

The Foundation monitors its financial performance through six key performance indicators (KPIs) which are reported to the Audit Committee and Board. 

A summary of these is set out below. 


**----- Start of picture text -----**<br>
KPI Area  Description  Target  2022/23  2021/22<br>Maintaining  Value of endowment compared with  Value should be in  £24.9  £7.7<br>the  the value adjusted for CPI inflation  surplus against inflation  million  million<br>endowment  since inception. adjusted-value. shortfall shortfall<br>10.4%  7.3%<br>Return, after fees, on financial  >4% above rate of CPI<br>below  below<br>investments  inflation<br>target target<br>Management fees as a percentage of<br><1%  0.00% 0.00%<br>Investment  financial investments<br>performance<br>Net yield from investment properties  >5%  -20.6% 5.4%<br>Property management costs as a<br><10%  16.6%  26.0%<br>percentage of gross rental income<br>Operational  Staff and administrative costs as a<br><15%  6.9% 19.7%<br>performance  percentage of charitable expenditure<br>**----- End of picture text -----**<br>


The Trustees’ primary financial target is to ensure that the value of the endowment is maintained in real terms (i.e. after adjusting for inflation). There is a shortfall of £24.9 million, 37%, as at 31 August 2023.  This primarily reflects reduced commercial property valuations following the Covid pandemic and increased interest rates, as well as high CPI inflation rates (6.7% as of 31 August 2023). The Trustees expect the property valuations to recover in due course. 

Investment performance during the year remains below the long-term objective. The gross return of 0.3% was well below the target of 10.7% (i.e. 4% above the 6.7% CPI inflation rate at 31 August 2023). The shortfall against target reflected the defensive positioning of the portfolio in challenging markets. 

The net yield from the commercial freehold properties have been significantly impacted by the £12.7 million property revaluation loss and have continued to suffer from a combination of lower economic activity and muted rental markets, higher interest rates and higher vacancy costs following the pandemic.  If the valuation loss were excluded from the net yield from investment properties, the KPI would be 4.3% in 2022/23 (2021/22: 2.2%). 

Whilst improved from prior year, property management costs have continued to exceed their target limit of 10% of gross rental income. This largely reflects vacancy costs, both lost rent and services charges falling back on the landlord during vacant periods. 

The KPI “Staff and administrative costs as a percentage of charitable expenditure” has met the target for the year at 6.9% because of the increase in charitable expenditure in the year. The staff and administrative costs in 2022/23 were £479,000 (2021/22: £699,000), compared to charitable expenditure of £6,943,000 (2021/22: £3,543,000). 

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Annual Report and Financial Statements 2022/23 

The value and allocation of the Foundation’s investment portfolio at 31 August 2023 are summarised below, with further detail provided at note 8 to the financial statements. 


**----- Start of picture text -----**<br>
2023  2023  2022  2022<br>(£’000s)  (%)  (£’000s)  (%)<br>Investment Properties<br>College House, London*  34,000  51%  37,600  47%<br>One Kingsway, Cardiff*  9,100  14%  16,300  20%<br>King William St, London*  7,800  12%  8,505  11%<br>Financial Investments<br>Mixed Asset Funds  15,554  23%  17,246  21%<br>Fixed income and cash  5  0%  10  0%<br>Private equity  749  1%  976  1%<br>TOTAL  67,208  100%  80,637  100%<br>**----- End of picture text -----**<br>


* The values of the Investment Properties are stated without any deduction for borrowing secured on those properties. As at 31 August 2023, borrowing secured across all three properties was £27,903,000 (2022: £27,814,000) 

Capital Generation Partners LLP is the Foundation’s sole adviser for its financial and property  investments. The financial investments are primarily invested in a multi-asset strategy designed to achieve a 4% real return over the cycle. 

## **Charitable expenditure** 

The activities of the Foundation are funded through income from its investments, which are managed by professional investment and property managers. Total charitable expenditure in the year to 31 August 2023 was £6.9 million (2022: £3.5 million) and is analysed at note 4 of the financial statements. 

## **5. Governance Information** 

## **Governance and Decision Making** 

The Saїd Foundation is the successor organisation to the Karim Rida Saїd Foundation (KRSF) that was established in 1986. It is a UK charity registered with the Charity Commission for England and Wales and is also a company limited by guarantee and registered at Companies House. The Saїd Foundation is based in London. During the year under review, all staff, programmes and financial matters were overseen by the Chief Executive Officer (CEO). 

The Trustees of the Saїd Foundation who have served during the year are set out on page 3. The Trustees normally meet twice a year and are empowered under the Articles of Association to delegate authority to sub-committees. There are five standing committees, the Nominations, Investment, Audit, Projects and Student Committees, which meet as necessary. The mandates and membership of the sub-committees are reviewed and agreed annually by the Board. 

New or additional Trustees may be appointed by the Foundation’s Benefactor and the current trustees. Mr Khaled Saїd is the current Benefactor. Any transactions with Trustees or other related parties are disclosed at note 19 to the financial statements. 

The Foundation’s Audit Committee reviews governance arrangements annually to assess compliance with the _Charity Governance Code_ published in July 2017, as updated in December 2020. While the Code is not a legal or regulatory requirement, Trustees seek to ensure the Foundation complies with it to the fullest extent reasonably possible. 

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Annual Report and Financial Statements 2022/23 

## **Remuneration Policy** 

The Board of Trustees has delegated to the Audit Committee the authority to set the salaries of the Foundation’s officers in line with positions of similar responsibility in comparable organisations. The salary of the CEO is also be approved by the Chairman. 

## **Risk Management** 

New and existing risks are assessed by the Foundation’s sub-committees on an ongoing basis to ensure that they are appropriately identified and managed. The Foundation’s Audit Committee reviews the full risk register and the accompanying systems and controls, with a summary of key risks presented to the Board, on an annual basis. 

Trustees have identified the following principal risks facing the Foundation and have controls in place for their active management: 

|**Principal Risks**|**Present Controls**|
|---|---|
|**_Misuse of Funds_**<br>The Foundation may inadvertently fund an<br>extremist organisation or individual.|<br>Procedures are in place for pre-selection due diligence,<br>and performance monitoring for all students and project<br>partners.<br><br>Grant agreements are drafted to include stage payments<br>dependent on reports detailing the delivery of agreed<br>outcomes.<br><br>Projects in the Levant are implemented by large<br>international NGOs with experience of working in<br>complex environments and with appropriate due<br>diligence and monitoring in place.|
|**_Charitable Programmes_**<br>Conflict and political instability in the<br>Foundation’s<br>priority<br>countries<br>causes<br>disruption to the delivery of projects.|<br>The Foundation runs no direct activity in the Middle East<br>but maintains relationships with major agencies (the<br>IRC, Save the Children, UNHCR and Turquoise<br>Mountain) which have been chosen because of their<br>experience in delivering humanitarian projects in<br>conflict-affected areas.<br><br>Risk assessment is undertaken during the project<br>selection process, recognising that some risk is inevitable<br>in order to meet the humanitarian needs. Grant<br>agreements are drafted to include stage payments<br>dependent on reports detailing the delivery of agreed<br>outcomes.|
|**_Humanitarian Programmes_**<br>The programme may be unclear, or there is a<br>failure to focus on and deliver objectives,<br>which wastes the Foundation’s charitable<br>funding.|<br>Annual review of objectives by the Board informs all SF<br>programmes and funding priorities.<br><br>All funding is subject to decision by Trustees, either at<br>Board or Projects Committee level.<br><br>Regular communication between Chairman and CEO on<br>project proposals and funding.|
|**_Charitable Impact and Strategy_**<br>The Foundation’s strategy is not sufficiently<br>focussed to maximise its charitable impact,<br>leading to charitable funds being wasted|<br>Annual review of objectives by the Board informs all SF<br>programmes and funding priorities / criteria.<br><br>Achievement of objectives is reviewed annually by the<br>Board and more frequently by sub-committees.<br><br>Performance against objectives is reported regularly in<br>management accounts, quarterly updates to Trustees, and<br>in Projects and Student Committee papers.<br><br>Established operating guidelines and work manuals are<br>in place for all charitable programmes.|



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|**_Stewardship of Assets and Investments_**<br>The Foundation is unable to continue funding<br>charitable<br>activity<br>due<br>to<br>sustained<br>underperformance of its investment portfolio<br>and/or poor stewardship of its assets and<br>liabilities|<br>The target return of 4% above inflation and 4% of<br>investment assets spending policy work together to<br>ensure the real value of the endowment is maintained<br>over time.<br><br>The Investment Committee is tasked with setting<br>investment policy and asset allocation to achieve target<br>returns.<br><br>Procedures and internal controls are in place to safeguard<br>the Foundation’s assets and to manage its liabilities<br>securely.|
|---|---|



## **Grant-making Policy** 

As a charitable foundation, making grants is the primary means through which the Foundation achieves its charitable objectives. The grant-making policies for each charitable programme are summarised as follows. 

- The annual funding provided for the Saїd Business School Foundation’s Strategic Development Fund will continue to be provided as long the School does not cease to be ranked as one of the top three schools in the UK for more than three consecutive years; and as long as the Foundation does not reasonably consider that the annual funding paid to SBSF would be better granted to other beneficiaries. 

- The Foundation’s criteria for funding scholarships are available on the Foundation’s website as well as through academic partners in the target countries, such as the British Council. The Student Committee awards scholarships annually following a rigorous selection process that includes interview by the Foundation, verification of references and academic transcripts, and background checks on each successful candidate. Each successful candidate must sign an award letter setting out the terms of the scholarship and funds are not advanced until those terms are met. 

- The Humanitarian Programme makes grants to established international organisations and is not open to speculative applications. The Foundation selects partners with experience of working successfully in complex conflict-affected environments. 

## **Public Benefit** 

The Trustees have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The Trustees consider that each of the Foundation’s programmes is aimed at one or more of: the advancement of education, advancement of health / saving lives, advancing the arts and heritage, and assisting the young and/or disabled. Furthermore, while there are eligibility criteria for each of the Foundation’s programmes, the Trustees are also satisfied that each programme is targeted at a sufficiently wide section of the public to meet the ‘public benefit’ test. 

## **Investment Policy** 

Under the Articles of Association, the Trustees have wide investment powers, including the power to appoint investment managers provided the managers are given clear investment guidelines and are monitored by the Trustees. The overall financial and investment objectives of the Fund are to provide a stream of income to support of the Foundation’s mission and to preserve and enhance the real purchasing power of its investment assets. For the Foundation to be able to pursue its charitable objects effectively the Trustees have targeted an inflation adjusted total return of at least 4%. 

## **Reserves Policy** 

As the Foundation does not usually fundraise externally, income from investments represents its primary source of revenue alongside new donations from the Chairman. Trustees therefore seek to maintain the value of the endowment in inflation adjusted terms in order to maintain the purchasing power of the endowment over the longterm, and to provide income to meet continuing charitable expenditure.  The objective of the Trustees is that the value of the endowment fund should not be permitted to fall below (across the economic cycle) the value of the donations made by the Chairman since 1986, uplifted in line with inflation. The Trustees review performance against this objective on an annual basis. 

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Annual Report and Financial Statements 2022/23 

At 31 August 2023, the Foundation’s endowment fund was valued at £43.1 million which represented a shortfall of £24.9 million compared with the inflation-adjusted value of £68.0 million at the same date (2022: £56.1 million, representing a £7.7 million shortfall compared with the inflation-adjusted value of £63.8 million). 

## **Fundraising Policy** 

The Foundation is an endowed charity and does not rely on donations from the public or third parties to fund its charitable activities. It therefore has no fund raising requirement, and does not devote significant resources to fund raising. However, the Foundation follows the Fundraising Regulator’s Code of Fundraising Practice to the extent that it is applicable. 

## **Audit information** 

In so far as the Trustees are aware: 

- there is no relevant audit information of which the charitable company’s auditor is unaware; and 

- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

20/02/2024 This report was approved by the Trustees on                                           and signed on its behalf by: 

Michael Peat (Feb 20, 2024 16:41 GMT) 

Sir Michael Peat 

Trustee and Chairman of the Audit Committee 

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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **Statement of Trustees’ responsibilities** 

The Trustees (who are also Directors of the Saїd Foundation for the purposes 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) including Financial Reporting Standard 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’. 

Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming/outgoing resources and application of resources, including the income and expenditure, of the charitable company for that period.  In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis, unless it is inappropriate to assume that the charitable company will continue in business. 

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

14 



The Saïd Foundation Annual Report and Financial Statements 2022/23 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SAID FOUNDATION** 

## **Opinion** 

We have audited the financial statements of The Saïd Foundation (the ‘charitable company’) for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow statement and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice). 

In our opinion, the financial statements: 

- give a true and fair view of the state of the charitable company’s affairs as at 31 August 2023 and of its income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 trustees’ 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 charitable company’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. 

## **Other information** 

The other information comprises the information included in the Annual Report and Audited Accounts, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report and Audited Accounts. 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. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the Trustees’ Report, which incorporates the Strategic Report and the Directors’ Report prepared for the purpose of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

15 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

- the Strategic Report and the Directors’ Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report contained within the Trustees’ Report. 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit 

## **Responsibilities of trustees** 

As explained more fully in the Statement of Trustees’ Responsibilities on page 14, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

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 auditor’s 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. 

We obtained a general understanding of the charitable company’s legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the entity’s policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the charitable company’s sector and regulation. 

We understand that the charitable company complies with the framework through: 

• Subscribing to relevant updates from external experts, and making changes to internal procedures and controls as necessary. 

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the charitable company’s ability to conduct its business, and/or where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the charitable company: 

• The Companies Act 2006, Charities Act 2011 and FRS102 (including the provisions of the Charities SORP) in respect of the preparation and presentation of the financial statements. 

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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

We performed the following specific procedures to gain evidence about compliance with the significant laws and regulations identified above: 

- Enquiry of management and responsible staff members 

- The inspection of any relevant correspondence. 

- The review of Board minutes. 

The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were: 

• Manipulation of the financial statements via fraudulent journal entries, particularly as the size and nature of the charitable company means that there is little opportunity for segregation of duties. 

These areas were communicated to the other members of the engagement team not present at the discussion. The procedures we carried out to gain evidence in the above areas included: 

• Testing journal entries, focusing particularly on postings to unexpected or unusual accounts and those posted at unusual times. 

Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities. In particular, both the senior statutory auditor and the audit manager have a number of years’ experience in dealing with charities and companies that operate in this sector. 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 

CLA Evelyn Partners Limited CLA Evelyn Partners Limited (Feb 20, 2024 16:43 GMT) 

Julie Mutton (Senior Statutory Auditor) For and on behalf of 

## **CLA Evelyn Partners Limited** 

Statutory Auditor Chartered Accountants 

4th Floor, Cumberland House 15-17 Cumberland Place Southampton Hampshire SO15 2BG 

Date: 20/02/2024 

17 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation** 

## **Statement of Financial Activities incorporating Income and Expenditure Account for the year ended 31 August 2023** 

|**Note**<br>**Unrestricted Funds -**<br>**Expendable**<br>**Endowment**<br>**£000’s**<br>**INCOME FROM:**<br>- Donations<br>2<br>5,093<br>- Investments<br>3<br>3,767<br>- Other income<br>21<br>**Total income**<br>**8,881**<br>**EXPENDITURE ON:**<br>_Raising funds:_<br>- Investment management costs<br>(624)<br>- Interest on borrowings<br>(968)<br>- Other expenditure on raising funds<br>- Movement on bad debt provision<br>(4)<br>59<br>_Charitable expenditure:_<br>4<br>- Humanitarian Programme<br>(20)<br>- Said Business School Programme<br>(1,525)<br>- Scholarship Programme<br>(1,250)<br>- Other Charitable Expenditure<br>(4,148)<br>**Total expenditure**<br>**(8,480)**<br>Net (losses) / gains on investment properties<br>(12,658)<br>Net gains on financial investments<br>44<br>Net (losses) / gains on interest rate swap<br>(149)<br>Net (losses) on foreign currency movements<br>(545)<br>**Net (losses) / gains**<br>**(13,308)**<br>**Net (expenditure) / income and net**<br>**movement in funds for the year**<br>6<br>**(12,907)**<br>**RECONCILIATION OF FUNDS**<br>Funds brought forward 1st September<br>13,14<br>56,056<br>**Funds carried forward 31st August**<br>13,14<br>**43,149**|**Total**<br>**2023**<br>**£000’s**<br>**5,093**<br>**3,767**<br>**21**<br>**8,881**<br>**(624)**<br>**(968)**<br>**(4)**<br>**59**<br>**(20)**<br>**(1,525)**<br>**(1,250)**<br>**(4,148)**<br>**(8,480)**<br>**(12,658)**<br>**44**<br>**(149)**<br>**(545)**<br>**(13,308)**<br>**(12,907)**<br>**56,056**<br>**43,149**|**Total**<br>**2022**<br>**£000’s**<br>79<br>3,252<br>22|
|---|---|---|
|||3,353|
|||(846)<br>(1,006)<br>(6)<br>29<br>(129)<br>(1,645)<br>(1,769)<br>-|
|||(5,372)|
|||1,960<br>1,223<br>1,751<br>(37)|
|||4,897|
||||
|||2,878|
|||53,178<br>56,056|



The statement of financial activities includes all gains and losses recognised in the year. 

All income and expenditure derive from continuing activities. 

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Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Balance Sheet at 31 August 2023** 

|**Note**<br>**Fixed assets**<br>Tangible Fixed Assets<br>8a<br>Investment properties<br>8c<br>Financial investments<br>8d<br>**Total fixed assets**<br>**Current assets**<br>Debtors, prepayments and accrued income<br>9<br>Cash at bank and in hand<br>Interest rate swap<br>**Total current assets**<br>Creditors falling due within one year<br>10a<br>**Net current assets**<br>**Total assets less current liabilities**<br>Creditors falling due after more than one year<br>10b<br>**Net assets**<br>**The funds of the charity**<br>Restricted funds<br>13<br>Unrestricted funds<br>- Expendable endowment fund<br>14<br>**Total charity funds**|**2023**<br>**£000’s**<br>-<br>50,900<br>16,308<br>**67,208**<br>12,597<br>1,534<br>1,602<br>**15,733**<br>(9,593)<br>**6,140**<br>**73,348**<br>(30,199)|**2022**<br>**£000’s**<br>866<br>62,405<br>18,232|
|---|---|---|
|||**81,503**|
|||12,560<br>1,474<br>1,751|
|||**15,785**<br>(8,695)|
|||**7,090**|
|||**88,593**<br>(32,537)|
||**43,149**<br>-<br>43,149<br>**43,149**|**56,056**|
|||-<br>56,056<br>**56,056**|



The notes on pages 21 to 33 form part of the financial statements. 

Approved by the Board of Trustees on                                                  and signed on its behalf by: 20/02/2024 

Michael Peat (Feb 20, 2024 16:41 GMT) 

......................................................... Sir Michael Peat Trustee 

Registered Company No: 06621764 

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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation** 

## **Cash Flow Statement** 

## **for the year ended 31 August 2023** 

|**Note**<br>**Cash used in operating activities**<br>12a<br>**Cash flows from investing activities**<br>- Interest and rents received<br>12b<br>- Receipts from sale of investments<br>- Payments to buy new investments<br>- Additions to tangible fixed assets<br>- Capital expenditure on investment properties<br>**Cash flows from financing activities**<br>- Repayment of borrowings<br>- New loans drawn (net of arrangement fees)<br>- Payment of interest<br>Increase in cash and cash equivalents during the year<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**|**2023**<br>**£000’s**<br>**(3,883)**<br>3,583<br>1,414<br>(295)<br>-<br>-<br>**4,702**<br>-<br>-<br>(759)<br>**(759)**<br>60<br>1,474<br>**1,534**|**2022**<br>**£000’s**<br>**(4,795)**<br>3,485<br>2,557<br>-<br>(75)<br>(190)|
|---|---|---|
|||**5,777**<br>(27,682)<br>27,732<br>(855)|
|||**(905)**|
|||177|
|||1,297<br>**1,474**|



A reconciliation of net debt is included at note 12(c). 

20 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Notes to the Financial Statements for the year ended 31 August 2023** 

## **1 ACCOUNTING POLICIES** 

## **a) Basis of preparation** 

The financial statements have been prepared in accordance with _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)_ , the Charities Act 2011 and UK Generally Accepted Accounting Practice. The Foundation meets the definition of a 'public benefit entity' under FRS 102. The financial statements are prepared under the historic cost convention except where otherwise stated. The majority of the Foundation’s assets and liabilities are denominated in Pounds Sterling. The functional currency of the Foundation is therefore considered to be Pounds Sterling and the Financial Statements are presented in that currency. The Saїd Foundation is a company limited by guarantee and is incorporated in England and Wales. Its registered office address is 70-72 King William Street, London, EC4N 7HR. 

## **b) Income** 

Income is recognised when the Foundation has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Income from operating leases is recognised on a straight-line basis over the lease term, net of lease incentives. Lease incentives are typically granted at the commencement of the lease term and are then accrued and recognised on a straight-line basis over the lease term. 

## **c) Expenditure and irrecoverable VAT** 

Expenditure is recognised once: there is a legal or constructive obligation to make a payment to a third party arising from a past event; it is probable that settlement will be required; and the amount of the obligation can be measured reliably. Expenditure relates either to raising funds (principally the costs directly attributable to managing the investment portfolio and investment properties) or to charitable activities. Expenditure on charitable activities is analysed between the Foundation's major charitable programmes at note 4 to the accounts. 

The Foundation is registered for VAT and recovers input tax to the fullest extent possible. However, the majority of the Foundation's transactions are outside of the scope of VAT and irrecoverable VAT is therefore charged as a cost against the activity for which the expenditure was incurred. 

## **d) Fund accounting** 

Restricted funds are donations which the donor has specified are to be solely used for particular grant-making activities. Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Foundation. Analyses of income, expenditure and net assets of the Foundation's restricted and unrestricted funds are shown at notes 13, 14 and 15 to the accounts. 

## **e) Financial instruments** 

The Foundation holds financial assets and financial liabilities classified as 'basic' financial instruments, such as receivables, loans and payables, as well as ‘other’ financial instruments, being an interest rate swap. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest rate method. Other financial instruments are measured at market value at each reporting date, with movements in market value included in net income. 

In October 2021, the Foundation entered into an interest rate swap in relation to the facility agreement with Citibank. This is measured at market value at each reporting date, with movements in market value included in net income. 

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The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Notes to the Financial Statements** 

## **for the year ended 31 August 2023** 

## **1      ACCOUNTING POLICIES (continued)** 

## **f) Foreign currencies** 

Transactions denominated in foreign currency are recognised at the exchange rate on the date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated at the exchange rate on the balance sheet date. All gains and losses on exchange, realised and unrealised are charged to the Statement of Financial Activities and included in the net movement on funds. 

## **g) Investment properties** 

Investment properties are held primarily to earn rental income and for capital appreciation, and not for use in connection with the Foundation's charitable activities. Investment properties are held at fair value at the balance sheet date. Depreciation is not provided on investment property. 

Subsequent to purchase, an investment property carried at fair value may be subject to further expenditure on improvements or refurbishment. Such expenditure is capitalized where it is expected that the work will enhance the income-generating potential of the asset. The costs of such work are added to the carrying value of the asset which is subject to re-measurement as part of future revaluations. 

The Foundation determines the fair value of its investment properties by commissioning valuations from independent, third-party valuers with appropriate professional skills and experience. These valuations are commissioned on a 'market value' basis sufficiently frequently to satisfy the Trustees that the book value is a materially accurate estimate of the fair value at the reporting date. Further details about the valuations of individual investment properties are shown at note 8 to the accounts. 

## **h) Tangible Fixed Assets** 

Fixtures and fittings are shown at cost less accumulated depreciation. Depreciation is provided on a straight line basis over ten years (10% of cost per annum once in use). 

During the year, the Foundation has decided to move out of the King William Street property. As a result the fifth floor has been reclassified back to investment property. 

## **i) Financial investments** 

Quoted investments are stated at market value at the balance sheet date. Unquoted investments are valued at the Foundation's best estimate of fair value based on valuations provided by fund managers and reviewed by the Foundation's investment advisers. 

Where a valuation is not available at the balance sheet date, the most recent valuation from the fund manager is used, adjusted for cash flows and foreign exchange movements in the period between the valuation and the balance sheet date, and for any evidence of impairment between the most recent valuation date and the financial year end. 

## **j) Grant commitments** 

Grant expenditure is recognised when the grant has been approved by the Foundation's Board of Trustees, Student Committee or Projects Committee and a constructive obligation is considered to exist. Grants which remain unpaid at the end of a period are carried forward as liabilities, as set out in note 10 to the accounts. 

22 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Notes to the Financial Statements** 

## **for the year ended 31 August 2023** 

## **1      ACCOUNTING POLICIES (continued)** 

## **k) Going concern** 

The Foundation's Statement of Investment Policies states that the objectives of the investment portfolio are to provide a stream of funding in support of the Foundation's mission, and to preserve and enhance the real (inflationadjusted) purchasing power of the assets. The Foundation holds a prudent level of cash to meet short-term liabilities, and its Financial Controller, CEO and Audit Committee members regularly review a cash flow forecast to ensure that the level of cash held is sufficient to meet all expected liabilities as they fall due. 

The majority of the Foundation’s investment portfolio is held in directly-owned properties which provides the Foundation with a regular stream of cash receipts from tenants. In the event of an unexpected shortfall in rental income, the Foundation’s financial asset portfolio also includes substantial holdings in highly liquid assets, which could be readily exchanged for cash. 

Accordingly, the Trustees consider it appropriate to continue to adopt the going concern basis in preparing the financial statements. 

## **l) Critical accounting judgments and sources of estimation uncertainty** 

In the application of these accounting policies, the Trustees have made two judgments that have a significant effect on the financial statements. 

The Grant Agreement between the Foundation and SBSF confirms that the Foundation has a long-term commitment to SBSF for at least five years. For 2022/23 that commitment was £1.3 million (2021/22: £1.2 million) and it rises each year in line with the annual increase in the CPI inflation index. In January 2023 it was agreed to cap the uplift at 5% for the current and future years. However, the agreement also states that there are circumstances in which this funding could cease. Therefore, SF recognises one year's funding for SBSF in each year's financial statements. 

In applying the requirement under paragraph 7.9 of the FRS 102 SORP to discount long-term grant liabilities to their present value, the Trustees have used HM Treasury's forecast medium-term CPI inflation rate for 2023 and beyond which was 4.10% at the end of August 2023. In accordance with paragraph 11.20 of FRS 102, grants committed in prior years are discounted using the original discount rate (i.e. the prevailing CPI inflation rate forecast in the year of initial recognition). 

The CPI inflation rate forecast was chosen as the discount rate because SF’s charitable expenditure is funded from an endowment which is invested to achieve a return calculated with reference to the rate of change in the CPI inflation index. Further information about HM Treasury's forecast inflation rates can be found at https://www.gov.uk/government/collections/data-forecasts. 

The Trustees have also noted one significant valuation, being the valuation of investment property assets. The Trustees’ approach to the valuation of each investment property is described at note 8 to the accounts. However, there remains a risk that, if the assets were realised, the sale proceeds might differ materially from the estimates made by the Trustees and their professional advisers. 

23 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation** 

## **Notes to the Financial Statements** 

**for the year ended 31 August 2023** 

## **2 Donations** 

|General donations<br>Donations from the Chairman<br>**Total**|**Restricted**<br>**2023**<br>**£000’s**<br>-<br>-<br>**-**|**Unrestricted Funds -**<br>**Expendable**<br>**Endowment**<br>**2023**<br>**£000’s**<br>-<br>5,093<br>**5,093**|**Total**<br>**2023**<br>**£000’s**<br>**-**<br>**5,093**<br>**5,093**|**Total**<br>**2022**<br>**£000’s**<br>1<br>78<br>79|
|---|---|---|---|---|



## **3 Income from investments** 

|Bank interest<br>Rents and other income from<br>investment properties<br>**Total**|**Restricted**<br>**2023**<br>**£000’s**<br>**-**<br>**-**<br>**-**|**Unrestricted Funds -**<br>**Expendable**<br>**Endowment**<br>**2023**<br>**£000’s**<br>8<br>3,759<br>**3,767**|**Total**<br>**2023**<br>**£000’s**<br>**8**<br>**3,759**<br>**3,767**|**Total**<br>**2022**<br>**£000’s**<br>2<br>3,250<br>3,252|
|---|---|---|---|---|



No income is received from the main part of the Foundation’s financial assets, which are managed by Capital Generation Partners. The income is accumulated. The movement in the value of the investments managed by Capital Generation Partners is shown under net gains/losses on financial investments. 

- **4 Analysis of expenditure on charitable activities** 

|**Humanitarian**<br>**Programme**<br>**£000’s**<br>**Saїd Business**<br>**School**<br>**Programme**<br>**£000’s**<br>**Scholarship**<br>**Programme**<br>**£000’s**<br>**Other**<br>**Charitable**<br>**Expenditure**<br>**£000’s**<br>- Grant commitments<br>-<br>1,294<br>982<br>4,265<br>-Financing adjustment related to<br>discounting future grant liabilities<br>-<br>-<br>-<br>(314)<br>- Financing cost /(credit) relating to<br>the unwinding of discounted grant<br>liabilities<br>2<br>159<br>31<br>10<br>- Staff costs (note 7)<br>17<br>18<br>154<br>12<br>- Directly allocated support costs<br>-<br>-<br>35<br>-<br>- Apportioned support cost (note 5)<br>1<br>38<br>34<br>124<br>- Governance costs (note 5)<br>-<br>16<br>14<br>51<br>**Total**<br>**20**<br>**1,525**<br>**1,250**<br>**4,148**|**Total**<br>**2023**<br>**£000’s**<br>**6,541**<br>**(314)**<br>**202**<br>**201**<br>**35**<br>**197**<br>**81**<br>**6,943**|**Total**<br>**2022**<br>**£000’s**<br>2,568<br>(229)<br>22<br>233<br>68<br>378<br>89<br>3,543|
|---|---|---|



Expenditure on charitable activities was £6.9 million, including the following significant grant commitments: 

- £3.0 million to the Saïd Research Initiative (under Other Charitable Expenditure); 

- £1.3 million to the Saïd Business School Foundation for the Strategic Development Fund; 

- £1.2 million to the Turquoise Mountain (Palestine) (under Other Charitable Expenditure); 

- £1.0 million of scholarship grants largely related to scholars studying in the 2023/24 academic year; 

- £50,000 to Chance to Change Foundation (under Other Charitable Expenditure); and 

- £11,000 to Homerton College and The Prince’s Trust, in relation to the Toucan Project (under Other Charitable Expenditure). 

24 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation** 

## **Notes to the Financial Statements for the year ended 31 August 2023** 

## **5 Analysis of governance and support costs** 

The Foundation initially identifies support costs which relate directly to each of the charitable programmes listed above and allocates them to the activity to which they relate. The remaining support costs which cannot be directly allocated (such as premises expenses and general office expenses) are then apportioned between ‘support’ and ‘governance’ functions, and further apportioned between the four charitable activities based on total charitable expenditure attributable to each programme. This apportionment is shown at note 4, above. 

The table below shows the support and governance costs which have been apportioned in this way, and notes the basis on which the apportionment has been made: 

|Premises expenses<br>Salaries, wages and related costs<br>General office expenses<br>Audit fees<br>Travelling<br>Legal and professional fees|**Support**<br>**£000’s**<br>**Governance**<br>**£000’s**<br>36<br>-<br>109<br>50<br>49<br>-<br>-<br>28<br>2<br>-<br>1<br>3<br>**197**<br>**81**|**Total**<br>**£000’s**<br>**Basis of Apportionment**<br>**36**<br>_Allocated to support_<br>**159**<br>_Estimate of staff time_<br>**49**<br>_Allocated to support_<br>**28**<br>_Allocated to governance_<br>**2**<br>_Allocated to support_<br>**4**<br>_Allocated on nature of advice received_<br>**278**|
|---|---|---|



## **6 Analysis of net movement in funds for the year** 

Net movement in funds for the year is stated after charging: 

|et movement in funds for the year is stated after charging:|||
|---|---|---|
||**Total**|**Total**|
||**2023**|**2022**|
||**£000’s**|**£000’s**|
|Auditors' remuneration (excluding irrecoverable VAT):|||
|- Statutory audit fees|28|28|



## **7 Analysis of staff costs and remuneration of key management personnel** 

|Salaries<br>National Insurance<br>Employer’s pension contributions and other benefits|**Total**<br>**2023**<br>**£000’s**<br>284<br>31<br>45<br>**360**|**Total**<br>**2022**<br>**£000’s**<br>331<br>35<br>50<br>**416**|
|---|---|---|



Of the £360,000 total staff costs analysed above, £201,000 has been allocated to charitable programmes and other charitable expenditure (see note 4) and £159,000 has been allocated to support and governance costs (see note 5). 

25 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Notes to the Financial Statements for the year ended 31 August 2023** 

## **7 Analysis of staff costs and remuneration of key management personnel (continued)** 

The average full-time equivalent (FTE) employees during the year was 5 (2022: 7). The average number of staff on a head count basis in the year was 5 (2022: 7). The Foundation contributed 10% of each employee’s gross salary to a registered pension scheme. In addition, all employees contributed 3% of gross salary. Employees are also entitled to membership of a private medical insurance scheme after satisfactory completion of their probationary period. No other employee benefits were paid during the year. 

The charity’s key management personnel comprised the Chief Executive Officer (CEO). The CEO’s total remuneration (excluding employer’s pension contributions) in the year to 31 August 2023 was £102,887 (2022: £101,255). The Foundation also made pension contributions to a money purchase pension scheme of £14,167 (2022: £14,082) and paid employer’s National Insurance contributions of £13,139 (2022: £13,242) in respect of the CEO. 

The numbers of employees whose remuneration and benefits, excluding employer’s pension and employer’s National Insurance contributions, for the year fell within the following bands were: 

|||**2023**|**2022**|
|---|---|---|---|
|||**Number**|**Number**|
|£100,000|to £109,000|1|1|



The Foundation's trustees were not paid any remuneration nor received any other benefits from the Foundation or a related entity. One trustee (2022: nil) received reimbursement of £60 for administrative expenses incurred whilst on Saïd Foundation business (2022: nil). 

## **8 Fixed Assets** 

## **a) Analysis of Tangible Fixed Assets** 

The Foundation moved into the fifth floor of 70-72 King William Street in February 2022. The deemed cost of the fifth floor at King William Street was based on the square footage as a percentage of the total square footage of the premises. During the year, the Foundation has decided to move out of King William Street, so the property has been reclassified back to Investment Property. 

|_Cost:_<br>Balance at 1 September 2022<br>Reclassification during the year<br>**Balance at 31 August 2023**<br>_Accumulated Depreciation:_<br>Balance at 1 September 2022<br>Additions during the year<br>Reclassification during the year<br>**Balance at 31 August 2023**<br>_Net Book Value:_<br>**Balance at 31 August 2023**<br>Balance at 1 September 2022|**Leasehold**<br>**Property**<br>**£000’s**<br>795<br>(795)<br>**-**<br>-<br>-<br>-<br>-<br>**-**<br>795|**Fixtures and**<br>**Fittings**<br>**£000’s**<br>75<br>(75)<br>**-**<br>4<br>8<br>(12)<br>-<br>**-**<br>75|**Total**<br>**£000’s**<br>870<br>(870)|
|---|---|---|---|
||||**-**|
||||4<br>8<br>(12)|
||||-|
|||||
||||**-**<br>870|



26 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Notes to the Financial Statements for the year ended 31 August 2023** 

## **8 Fixed Assets (continued)** 

## **b) Analysis of Investments** 

The Foundation's Statement of Investment Policies sets out the overall objectives for the investment portfolio, which are to provide a stream of funding in support of the Foundation's mission, and to at least preserve the real (inflation-adjusted) purchasing power of the assets. The Board of Trustees alone is empowered to vary these policies, although management of the portfolio within these objectives is delegated to the Investment Committee. 

The Foundation's investment portfolio consists of the following asset classes, all of which are held at fair value: 

|_Investment properties:_<br>- College House, London SW3<br>- One Kingsway, Cardiff<br>- King William Street, London EC4<br>_Financial investments:_<br>- Mixed asset funds<br>- Fixed income and cash<br>- Private equity|**2023**<br>**£000’s**<br>34,000<br>9,100<br>7,800<br>15,554<br>5<br>749<br>**67,208**|**2023**<br>**%**<br>51%<br>14%<br>12%<br>23%<br>0%<br>1%<br>**100%**|**2022**<br>**£000’s**<br>37,600<br>16,300<br>8,505<br>17,246<br>10<br>976<br>**80,637**|**2022**<br>**%**<br>47%<br>20%<br>11%<br>21%<br>0%<br>1%<br>**100%**|
|---|---|---|---|---|



## **c) Analysis of Investment Properties** 

|Market value at 1st September<br>Additions (costs of improvement and refurbishment work)<br>Transfer from/(to) tangible fixed asset<br>Net revaluation gains/(losses)<br>**Market value at 31st August**<br>Historical cost at 31st August|**2023**<br>**£000’s**<br>62,405<br>295<br>858<br>(12,658)<br>**50,900**<br>66,224|**2022**<br>**£000’s**<br>61,050<br>190<br>(795)<br>1,960|
|---|---|---|
|||**62,405**|
|||65,929|



The Foundation holds three investment properties: 

## _College House, King's Road, London SW3_ 

The property was purchased in October 2014 for £36.40 million. A professional valuation undertaken in December 2023 by Knight Frank in accordance with the Royal Institute of Chartered Surveyors (RICS) Red Book valued the asset at £34.0 million. Trustees believe that this represented fair value at 31 August 2023. 

## _One Kingsway, Cardiff_ 

The property was purchased in February 2016 for £18.15 million. A professional valuation, undertaken in December 2023 by Cushman & Wakefield in accordance with the RICS Red Book, valued the asset at £9.1 million.  The Trustees consider this represented a fair value at 31 August 2023. 

27 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Notes to the Financial Statements for the year ended 31 August 2023** 

## **8 Fixed Assets (continued)** 

## **c) Analysis of Investment Properties (continued)** 

## _King William Street, London EC4_ 

The property was purchased in May 2017 for £9.40 million. A professional valuation undertaken in December 2023 by Cushman & Wakefield in accordance with the RICS Red Book valued the asset at £7.8 million. 

## **d) Analysis of financial investments** 

|Mixed asset funds<br>Fixed income and cash<br>Private equity<br>**Total**|**Market value**<br>**at 01.09.2022**<br>**£000’s**<br>17,246<br>10<br>976<br>**18,232**|**Purchase of**<br>**new**<br>**investments**<br>**£000’s**<br>-<br>-<br>-<br>**-**|**Proceeds**<br>**from sale /**<br>**distribution**<br>**£000’s**<br>(1,172)<br>(4)<br>(238)<br>**(1,414)**|**Investment**<br>**Gains/(Losses)**<br>**and Foreign**<br>**Exchange**<br>**Movement**<br>**£000’s**<br>(520)<br>(1)<br>11<br>**(510)**|**Market value**<br>**at 31.08.2023**<br>**£000’s**<br>**15,554**<br>**5**<br>**749**<br>**16,308**|
|---|---|---|---|---|---|



## **9 Debtors and prepayments** 

|Sundry debtors<br>Accrued income<br>Prepayments<br>**Total**|**2023**<br>**£000’s**<br>11,494<br>809<br>294<br>**12,597**|**2022**<br>**£000’s**<br>12,021<br>300<br>239<br>**12,560**|
|---|---|---|



Within Sundry debtors, £9.7 million is owed by the Chairman (2022: £11.4 million) in relation to the following grant commitments: £3.1 million Osney Power Station, £3.0 million Saïd Research Initiative, £1.2 million Turquoise Mountain (Palestine), £1.9 million Humanitarian Programme, £396,000 other scholarships and £50,000 Chance to Change Foundation. 

28 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation** 

## **Notes to the Financial Statements for the year ended 31 August 2023** 

## **10 Creditors** 

## **a) Amounts falling due within one year** 

|Grant commitments not yet paid<br>Accruals and deferred income<br>Trade creditors<br>Taxation and social security<br>**Total**|**2023**<br>**£000’s**<br>8,184<br>1,059<br>108<br>242<br>**9,593**|**2022**<br>**£000’s**<br>7,669<br>448<br>424<br>154<br>**8,695**|
|---|---|---|



‘Accruals and deferred income’ includes a balance of £547,000 (2022: £222,000) relating to rental income from investment properties received in advance. The balance at year end will be recognised in the income and expenditure account in full by December 2023. 

## **b) Amounts falling due after more than one year** 

|Bank loans<br>Grant commitments not yet paid|**2023**<br>**£000’s**<br>27,903<br>2,296<br>**30,199**|**2022**<br>**£000’s**<br>27,814<br>4,723<br>**32,537**|
|---|---|---|



In October 2021, the Foundation refinanced from two bank loans to one £28 million facility. The £28 million loan is secured on all three investment properties. The Foundation is committed to make quarterly repayments of interest over a three-year term commencing October 2021, with the principal repayable in full at the end of the term. The lender holds a first legal charge over the properties as security, and rental income from the properties is remitted to the Foundation after the lender’s interest and fees are deducted. 

## **11 Grant commitments not yet paid** 

Grant commitments not yet paid at 31 August 2023 comprised the following balances: 

|Saїd Business School Foundation (Osney Power Station)<br>Saïd Research Initiative<br>Saїd Business School Foundation (Strategic Development Fund)<br>Turquoise Mountain (Palestine)<br>Amal<br>UK Scholarship Programme<br>Other Scholarship Programmes<br>Chance to Change Foundation<br>Less: adjustment to discount grant liabilities required by FRS102<br>**Total grant commitments not yet paid**|**£000’s**<br>4,835<br>2,500<br>1,294<br>1,063<br>257<br>789<br>31<br>25<br>(314)<br>**10,480**|
|---|---|



29 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Notes to the Financial Statements** 

## **for the year ended 31 August 2023** 

## **12 Cash Flow Statement** 

## **a) Reconciliation of net movement in funds to net cash flow from operating activities:** 

|Net (loss) / income for the year (as per Statement of Financial Activities)<br>Adjusted for:<br>Returns on investment<br>Losses / (gains) on investments and investment properties<br>Depreciation charge<br>Interest paid on borrowings<br>Interest received on cash balances<br>Decrease in debtors<br>Decrease in creditors<br>Losses / (Gains) on interest rate swap<br>**Net cash used in operating activities**|**2023**<br>**£000’s**<br>(12,907)<br>(3,759)<br>13,168<br>8<br>968<br>(8)<br>472<br>(1,974)<br>149<br>**(3,883)**|**2022**<br>**£000’s**<br>2,878<br>(3,250)<br>(3,209)<br>4<br>1,006<br>(2)<br>4,496<br>(4,967)<br>(1,751)<br>**(4,795)**|
|---|---|---|



## **b) Analysis of cash flows from interest and rents from investment properties:** 

|Interest from financial investments<br>Rental income from investment properties<br>**Total**<br>**) Reconciliation of movements on net debt**<br>**Net debt at**<br>**01.09.2022**<br>**£000’s**<br>Cash at bank and in hand<br>1,474<br>_Bank loans due within one year_<br>_-_<br>_Bank loans due after one year_<br>_(27,814)_<br>Total bank loans<br>(27,814)<br>**Net debt**<br>**(26,340)**|**2023**<br>**£000’s**<br>**2022**<br>**£000’s**<br>8<br>2<br>3,575<br>3,483<br>**3,583**<br>**3,485**<br>**Cash flows**<br>**£’000s**<br>**Non-cash**<br>**movements**<br>**£’000s**<br>**Net debt**<br>**31.08.2023**<br>**£000’s**<br>60<br>-<br>1,534<br>_-_<br>_-_<br>_-_<br>_-_<br>_(89)_<br>_(27,903)_<br>60<br>(89)<br>(27,903)<br>**60**<br>**(89)**<br>**(26,369)**|**2023**<br>**£000’s**<br>**2022**<br>**£000’s**<br>8<br>2<br>3,575<br>3,483<br>**3,583**<br>**3,485**<br>**Cash flows**<br>**£’000s**<br>**Non-cash**<br>**movements**<br>**£’000s**<br>**Net debt**<br>**31.08.2023**<br>**£000’s**<br>60<br>-<br>1,534<br>_-_<br>_-_<br>_-_<br>_-_<br>_(89)_<br>_(27,903)_<br>60<br>(89)<br>(27,903)<br>**60**<br>**(89)**<br>**(26,369)**|
|---|---|---|
|||(27,903)<br>**(26,369)**|



## **c) Reconciliation of movements on net debt** 

30 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Notes to the Financial Statements for the year ended 31 August 2023** 

## **13 Analysis of restricted funds** 

During the year, the Foundation received no restricted donations. 

## **14 Analysis of unrestricted funds** 

|Expendable endowment fund|**Balance**<br>**01.09.22**<br>**£000’s**<br>**56,056**|**Income**<br>**£000’s**<br>**Expenditure**<br>**£000’s**<br>**Other Gains**<br>**and (Losses)**<br>**£000’s**<br>**8,881**<br>**(8,480)**<br>**(13,308)**|**Balance**<br>**31.08.23**<br>**£000’s**<br>**43,149**|
|---|---|---|---|



## **Expendable endowment fund** 

The Foundation's endowment fund is maintained to generate income to enable the continuing fulfilment of the Foundation’s objectives. The Trustees’ power to spend the Fund is not restricted by donors or by the Foundation’s constitution, providing it is spent to meet the charitable objectives. However, it is the Trustees’ intention to maintain the purchasing power of the expendable endowment fund in real terms. 

## **15 Analysis of net assets between funds** 

|Tangible fixed assets<br>Investment properties<br>Financial investments<br>Current assets<br>Creditors falling due within one year<br>Creditors falling due after one year<br>**Net Assets**|**Restricted**<br>**Funds**<br>**£000’s**<br>-<br>-<br>-<br>3,095<br>(3,095)<br>-<br>**-**|**Unrestricted**<br>**Funds -**<br>**Expendable**<br>**Endowment**<br>**£000’s**<br>-<br>50,900<br>16,308<br>12,573<br>(6,433)<br>(30,199)<br>**43,149**|**Total**<br>**2023**<br>**£000’s**<br>-<br>50,900<br>16,308<br>15,668<br>(9,528)<br>(30,199)<br>**43,149**|**Total**<br>**2022**<br>**£000’s**<br>866<br>62,405<br>18,232<br>15,785<br>(8,695)<br>(32,537)<br>**56,056**|
|---|---|---|---|---|



## **16 Contingent liabilities and commitments** 

The Foundation's grant agreement with the Saїd Business School Foundation (SBSF), as updated in June 2023, states that, in the event that the Trustees decide to cease the annual Strategic Development Fund (SDF) funding for SBSF, the Foundation will nevertheless provide funding to SBSF to ensure that the SDF commitments already made can be met. At 31 August 2023, these future grant commitments totaled £5.12 million. The Foundation has a creditor balance of £1.3 million under Grant Commitments due within one year in respect of the annual funding commitment for 2022/23. The Trustees do not consider it likely that the conditions will be met to cease the annual funding in the near future. 

31 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation** 

## **Notes to the Financial Statements for the year ended 31 August 2023** 

## **17 Operating leases** 

The Foundation is lessor of 22 individual lease arrangements for office and retail units at its three investment properties. The leases are all classified as operating leases and the income from these leases is recognised on a straight-line basis over the lease term. In addition to amounts accrued to the period end, the Foundation is entitled to receive the following future minimum lease payments under non-cancellable operating leases: 

|Amounts due:<br>Not later than one year from 31 August<br>Later than one year and not later than five years from 31 August<br>Later than five years from 31 August<br>**Total rental income from operating leases**|**2023**<br>**£000’s**<br>3,144<br>8,625<br>7,838<br>**19,607**|**2022**<br>**£000’s**<br>3,096<br>8,130<br>930<br>**12,156**|
|---|---|---|



|**18 Financial instruments**<br>Financial investments<br>Interest rate swap<br>Financial assets held at fair value|**2023**<br>**£000’s**<br>16,308<br>1,602<br>**17,910**|**2022**<br>**£000’s**<br>18,232<br>1,751<br>**19,983**|
|---|---|---|



Financial assets held at fair value comprise financial investments and an interest rate swap. 

## **19 Transactions with trustees and connected persons** 

Three Saїd Foundation Trustees are also Directors of The Saїd Business School Foundation Trustee Ltd, which is sole trustee of the Saїd Business School Foundation. They are Mr Wafic Saїd, Mr Khaled Saїd and Lord Powell of Bayswater. Grants made to the Saїd Business School Foundation during the year, and amounts owed at 31 August (before discounting), were: 

|**Grant**<br>**Commitments**<br>**2023**<br>**£000’s**<br>Osney Power Station grant<br>**-**<br>Strategic Development Fund<br>1,294<br>**Total**<br>**1,294**|**Amount**<br>**owed**<br>**2023**<br>**£000’s**<br>**Grant**<br>**Commitments**<br>**2022**<br>**£000’s**<br>4,835<br>-<br>1,294<br>1,232<br>**6,129**<br>**1,232**|**Amount**<br>**owed**<br>**2022**<br>**£000’s**<br>9,480<br>1,232<br>**10,712**|
|---|---|---|



Donations made by the Chairman are disclosed separately at note 2 to the financial statements. The Chairman made donations of £5,093,000 in total during the year to 31 August 2023, of which £3 million relates to the Saïd Research Initiative grant, £1.2 million relates to the Turquoise Mountain (Palestine) grant, £396,000 relates to scholarship support, £50,000 relates to the Chance to Change grant and nil relates to an ‘in kind’ use of office premises at 24 Queen Anne’s Gate (2022: £24,583). £9.7 million of Chairman’s commitments from the current and previous years were outstanding as at 31 August 2023 (2022: £11.4 million). The Chairman is also a director of Beaumont Hotel (Midco) Limited. During the year to 31 August 2023, one event was held at this venue, for which the cost of £12,000 was covered by a donation from the Chairman. 

32 



The Saïd Foundation 

Annual Report and Financial Statements 2022/23 

## **The Saїd Foundation Notes to the Financial Statements for the year ended 31 August 2023** 

## **19  Transactions with trustees and connected persons (continued)** 

Mr Khaled Saïd is a Partner of Capital Generation Partners LLP which provides the Foundation with investment and property management advice. In the year to 31 August 2023, the firm charged £128,000 before VAT (£153,600 including VAT) for property management advice (2022: £128,000 before VAT) and nil for investment management services (2022: nil). Of this, £38,400 remained outstanding at year end (2022: £38,400). Mr Khaled Saïd recused himself from decisions made about the appointment of Capital Generation Partners at meetings of the Foundation’s Board of Trustees. Mr Khaled Saïd is also a trustee of The Turquoise Mountain Trust. In June 2023, the Foundation signed a grant agreement with The Turquoise Mountain Trust. The grant amount outstanding at the year end is £1,063,000. 

Lord Powell of Bayswater is a member of the Board of the Northern Trust Corporation of the United States which provides custody and brokerage services for investments held by the Foundation. In the year to 31 August 2023, the Foundation paid Northern Trust £831 in custody fees (2022: £766) and nil in brokerage commissions (2022: nil). The decision to appoint Northern Trust was taken by the Investment Committee of which Lord Powell is not a member. 

Since September 2020, Ms Catherine Roe, one of the Foundation’s Trustees until 6[th] January 2021, has been the Chief Executive of Amal (registered charity number 1190887).  The Foundation pledged funding of up to £800,000 to Amal, of which £256,927 remained unpaid at the year-end (2022: £493,478). 

## **20 Analysis of Statement of Financial Activities – prior year comparatives** 

There were no restricted funds in 2022. 

|**INCOME FROM:**<br>Donations<br>Investments<br>Other income<br>**Total income**<br>**EXPENDITURE ON:**<br>Raising funds<br>Charitable expenditure<br>**Total expenditure**<br>Net gains on investment properties<br>Net gains on financial instruments<br>Net gains on interest rate swap<br>Net losses on foreign currency movements<br>**Net gains / (losses)**<br>**Net income / (expenditure)**<br>**Net movement in funds for the year**<br>**RECONCILIATION OF FUNDS**<br>Funds brought forward 1st September 2020<br>**Funds carried forward 31st August 2021**|**Unrestricted Funds**<br>**Expendable Endowment**<br>**2022**<br>**£000’s**<br>79<br>3,252<br>22<br>**3,353**<br>(1,829)<br>(3,543)<br>**(5,372)**<br>1,960<br>1,223<br>1,751<br>(37)<br>**4,897**<br>**2,878**<br>**2,878**<br>53,178<br>**56,056**|**Total**<br>**2022**<br>**£000’s**<br>**79**<br>**3,252**<br>**22**|
|---|---|---|
|||**3,353**|
|||**(1,829)**<br>**(3,543)**|
|||**(5,372)**|
|||1,960<br>1,223<br>1,751<br>(37)|
|||**4,897**|
||||
|||**2,878**|
||||
|||**2,878**|
|||**53,178**<br>**56,056**|



33