The Sackler Trust (A company limited by guarantee) Trustees, R¢port and Audited Financial Statements Year ended: 31 December 2020 Company Number: 07022224 Charity Number: 1132097
The Sackler Trust Reference and administrative details Com an Number: 07022224 Chari Number: 1132097 Direetors and Trustees Dame"I'heresa E. Sacklei DIIF. Marissa T. Sackler Sophia Dalrymple Michael D. Sackler Marianne K. Mitchell Anthony Collins Seereta Tiercel Services Limited Princi al and Re istered olee Address New Zealand House, 9th Floor 80 Haymarket London SWIY 4TQ Solieitor Christopher B M1belI New Zealand House. 9th Floor 80 Haymarket London SWIY 4TQ Accountants Management Revision5 Limited New Zealalld House. 9th Floor 80 Haymarket London SWIY 4TQ Auditors G¢oige Hay & Company 83 Cambridge Streel Pimlico London SWIV 4PS Bankers C. Hoare & Co 37 fleet Street London EC4P 4DQ Investment Advisers Capital Generation Partners LLP Berkeley Square 14ouse Berkeley Square London WIJ 6BX Cazenove C&pilal 12 Moorgate London EC2R 6DA
The Sackler Trust Trustees, Report The Trustees present their report and accounts of The Sa¢kler Trust (the Tnt I for the year ended 31 tkcetnber 2020. Trustees and Dir¢ctor$ The Directors of ihe TnLt are also Ttustees of the TNst and ihroughoul this report are refekTed to as Trustees. The Trustees serving throughout the year were Theresa E. Sackler, Marissa T. Sackler. Sophia Dalrymple, Michael D. Sackler. Marianne K. Mitchell and Anthony Collins. Structure Governanee and Man ement Governin Instrument The Trust was incorporated under the Companies Aci 1985 as a private copanY limited by guarantee under number 07022224 on 17 September 2009. The Trust obtained charitable statu8 under the Chariiies Aci 1960 on 13 October 2009, and it is re8l8tered as a charity under number 1132097. The Twst is gov¢rn¢d by its Memorand and Articles of Association. Ob e¢tiv¢s and Activities As set out in the objecls ctsniained in the Trust's memorandum of association, the Principal object of the Trust is. and will continue to be, the advancement of research and educaiion in England and Wales and elsewhere irt the fields of an, science and tnediLal research and any other charilable obje¢is as the Trustees shall, at their discretion, decide according to the laws of England and Wales. Grant appli¢aiions are 5crutinised io ensure conformity with tlie TIst,5 stated objectives. The uusiees confirm they have ¢omplied with the duty Kn section 17 of the Charittes Act 2011 to have due regard to public benefit guidance publtshed by ihe Commission. Grant-makin olic It is the policy of the Trust to Trview applications from charKtable organisations and to make grants on & selective basis. Achievements and P¢rfonnan¢¢ As Shown on page 16 the Trust committed charitable donations of £3,565,220 during the year1£280,(X)O in 2019). The reduced activity in 2019 arose from a temporary suspension of giving frtsm March 2019 and then-existing ¢ommitment% were further reduced by £2.920.315. ointment of Trustees Trustees are appointed by Resolution of the Members of the-l'rust. Tru5te¢ activities -rhe Trustees are supported in their aetiviÈies by the Advisers noted on page l and attend Trustee meetings. Mana ement and or anisalion The'lnjqt has no etnployees. Thc administration of the Trust is dealt with by the Trusttts and supported by the Adviser8 noted on page l. These services are provided free of charge by the Trustees. Risk mana ement The Ttu.8tees have examined the major strategic, busineys and operarional ri5k$ which dLe Trust faces and confimi thal system8 have been established so thai the ne¢e5¥ary 8tepb can be taken to lessen these risks. These are kept under regular review. Financial Risk Mana Financial insirumenis, including equities securities are qubject to various risks including mark¢t (comprising of euffency risk and iiiterest rate risk}, credit. liquidity. operaiional at)d off-bal4LnLe sheet risks. The Trust manauFes these risks on an aggregate ba%is along with the ri%k8 asbociated with lis inve8tEnuJ activities as pari of lis overall risk mat)agetnent policies. The Trust's investment advisers have full invesrmeiit discretion. Ac(ivity and performanc¢ reports are reviewed ai least monthly and regular meetlll¥8 are held with Ihem lo review investment allocation and perfonnance. ement
The Sackler Trust Trustees, Report (continued) Market risk Murket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due changes in market vaTiables such as equity prÉces. inierest raies and foreign exchange rates. Currenc Currency risk is the risk thai the value ofa fncIal instnunent will flu¢tuate because of changes in foreign exchange rates. The TNst has assets whicli are denominaied in other CuenCieS that in¢lude US Dollars. Accordingly. the value of $u¢h assets may be affected favourably or unfavourably by fluctuations in currency rates. The currency risk sen8ltivity analysis has not been diwlosed because the impact is not ]naterial. risk Interest rate risk Interest rate rssk arises from the possibility that ¢hat)ges in interest rates ws118(fect Thre cash flows or the fair values of Finan¢ial illslrumentb.. As at 31 December 2020, the TNst is exposed to interest rate ri.sk on the payment of Grants in instalmenls over an extended period. The interest rate risk sensittvity analysis ha5 not been disclosed because th¢ impact is not material. Coronavirus risks At this present titne. the TNstee$ do not perceive there to be any Signifi1 risk to the Trust's current operation5. This will r¢main under review for the foreseeable future. Other ma or risks The TNst's outstanding Lharitable commitments are expected to be met out of current resources and future income. The TNstees have id¢ntifi¢d no other major risks. Financial Review Financial osition The accounts have been prepared sn aceordance with the revised Siatemeni of Recommended Praclire, Accounting and Reporti8 by Charitie8 ISORP 2019}. The Trustees have taken advantage of the small company exemptions in the preparation of this report. Th¢ net increase in fund8 for the year was £1.584,027 and was added to the funds balance at the beginning of the year to give a balance carried forward 81 the end of the year of £49,389,347 (for the year ended 31 December 2019 the net increase of £4,543,200 was added io giv¢ a funds balance of £47,805,320}. These funds are unrestricted and will be applied to meeting the Trust's commitment% and any other donaiion.% in the cotning year. The Trnstees report that.. l. The Trust has sufficient funds lo cover its immediate and re comtnitments out of current resources. As set out i page 16 outstallding commitment5 at the year end were £14.543,399 of whtch £5.906,332 are payable in 2021. The remaitiing £8,637,067 is the total of instalments payable in accordance wilh gift a¥reements 10 be paid during the years 2022 to 2025. 2. The Trust's assets are held in order to rther objectives and all funds received have been or will be applied to the achaevement ofthose objectives. 3. The Trustees have perforn)ed a review of the Ttust's ability to contanue as a going ¢on¢ern. In their opinion tILe Tn1 will be able to continue in operational exisiencc for the foreseeable future. Reserv¢s The Trustee5 have decided to retain and invest approximaiely £40.0(X),000 in order to generate income and gains which the Trustees intend lo distribute each year. nvestmenl olic The'frustees have tommitted £39.9 millEon to investment for the medium io long tem). 'fhese are with a view lo the long terni preservation and growth of Capital $0 that the Trust cun fulfil the intention 10 maintain ¢liartlable paytnenls out of the income ari8ing. As shown on page 13 these investment5 were valued at £50.6 million al the year end {2019 - £48.1 million). Surplus uninvesied fvnds are retained in short terni cash deposits Wlih MaritY dates of less than one year.
The Saekler Trust Trustees, Report (continued) Trustees, Res on5ibilities Statement The Trustees (who are also the directors for the pUrpe of company law) are responsible for preparing the Annu21 Report and the financial statements in accordarlce with applicable law and rcgulations. Company law requiJYs the Trnsteeg to prepare finan¢ial statements for each financial year. Under that law the Trustees have elected to prepare the financial staiemenis in a¢¢ordat]ce witli United Kingdom Generally A¢¢epied Accounting Practice (United Kingdom Accountin Standards and applicable law}. Under conipany law, the Tw.%iee$ must not approve the a¢¢ounis unle88 they are satisfied that give a tNe and fair vi¢w of the state of affairs of the chariiable company and of the incoming resources and application of resources, in¢luding the income and expendiwre of the charitable Company for that period. In preparing those fjnancial siatemenls, lh¢ Trustees are required to.. Seleci suitable a¢counting policses and then apply thern ¢onsistently Observe the meihods and principles in the Charities SORP: Make judgcments and estimates ihai are reasonable and prudent: State wheiher applicable UK Accounting Standards have been followed, subject to any material departures dis¢lo$ed and explained in the financial statements, and; Prepare ihe flnancial sialements on the going concern basis unless it is inappropriate to presume ihat the Trust will ¢oniinue in operation. The Twstees ar¢ r¢sponsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accEiracy at any time Ihc finaiicial positioll of the charitable company and tnable them to ensure that the fmancial statements comply with Ihc Companies Act 2006. They are also Tesponsible lor sateguarding the assets of the company and hence for iaking reasonable steps for the prevention and detection of fraud and other itregjularities. The trustees confirtn that so far they are aware, there is no relevat)t audit Lnfom)ation {a$ dcfjned by section 418(31 of Lhe Companies Act 2006) gf which the cliaritable company's auditors are unawai'e. They have raken all th¢ steps that they ught have iaken as tNstee5 in order io tnake themselves aware of any relevant audLI infomiaiion and to ¢stabli8h that the charitable company's auditots are awatE of Iliat illformatioti. On behalf of the Board Date.. 21 June 2021 Sophia Dalrymple Date: 21 June 2021 Anihony Collins
The Saekler Trust INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OFTHE SACKLER TRUST Opinio We liave audited tlie fillancial statenients of The Sackler Trnst ("tlie Charitable Company") for tl)e year ended J I Decenibei. 2020 wliich cornpi'ise Siatement of fillancial Activities, the Balai)ce Sheei. Ihe Ca511 Flow Statement and the relaied notes Lo tlie fiiTrancial slatements. includillg a summary of significant accouniing wlicies. Tlie financidl reporiing rramework that ha5 been applied in their preparatioi) is applicable law alld Uniied Kingdom Accountin¥ Siandards (Uniled Kiiigdoim Generally Acceptcd Accountiiiu Practice). including fRS 102"Tlie Financial Reportiiiu sl<indard applicable in the UK and Republic of Ireland" In our opinion th¢ financial s(aiements'. give a true and fair view of ihe state of the Charitable Company's affairs as at 31 December 2020 and of its incoming resources and application of i'¢sources, including its ijicome and ¢xpendiiure, for the year then ended., have been properly prepar¢d in accordance wilh United Kingdom Generally Accepted Accouniing Practice. and have beell prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance witli lllternaiional Standards Auditing {UK) (ISAS (UK)) and applicable law. Our responsibilities under those siandards are furtlier described tn th¢"Auditor's responsibilities for (he audit of tlie financial statements" section of our report below. We are independent of tlie Cliaritable Company in accordaiice witli the ethical requireinents tliat are relevant to our audit of ihe financial statements in (he UK, including the FRC'S EthiLal Standard and we have fulfilled oui. oihei. ethical responsibilities in accordance witl) these requirements. We believe that tl)e audit evidence we have obtailled is sufficient and appropriaie to provide a basis for our opinion. Conclusioiis relating to going eoD¢ern We Iiave nothing to i'eport ITI respect of tlie following matters in relation to wliich the ISAS (UK) require u5 to report to you where.. Ihe trustee5' U5¢ Of the goiiig concern basi5 of accounting in rhe prepai7tion of the financial stat¢ment5 15 not appropriate; or the ttustee5 hiive noi disc105ed iii the financial statem¢nls atiy identified material unceitaiIities thai may cast significant doubl about the Charitable Company's ability to continue to adopi ihe going concern ba51s ol. accounting for a period ora( least twelve molltl)5 from ihe date wheji the financial statemersts ar¢ authoi'ised for issue. Other information The other infoi'mation comprises Ihe information included in the annual report set oot on pages I to 4, othei. than the rinBllcial statements and our &uditoi s report thereon. The trustees are re5pon5ible lor the olhei. infoi'mation. Oui. opinion on the financial 51atemertis doe5 not cover the oiher information and. excepi ro the extent otiierwise Explicitly stated iii IhL5 iepo11, we do not express any form of assurance coiielusion thereon. In connection with our audit of the financial statements, our responsibility is to read the oiher infomiarion and. in doin8 50, consider whether the other iE)fomiation 18 mattrially inconsistent with the financial statements or our knowledge obtained En Ilie audit or otherwise appears w be materially missraied. If we identify SULh material inconsistencies or apparent tnaterial mi8stateJnents, we are required to detemiine whether therc is a material missiaiemeni in th¢ fUnClaI statements or a malerial misstatement of the other infot7n8tion. If. based on the work we have perfonned, we conclude that there is a material misstatement of the other inforn]ation. we are required to reEK)rt that fact. We have nothing to i'eport in this regard. Opinlon on other matter5 prescribed by the Cornp&nies Act 2006 In our opiiiion, based on tlie WOTk uiidertaken in the course of the audit.. Ihe iiifoi'mdiion giveii iii tlie Irustees, repoi'l, wliicli incliides tl)e directors, report prcpaied for coinpaiiy law purpos¢s, for the fiiiancial year for which the financial stalememts are prepaied is consistertt iviih the fii)ancial slalements., ai)d rhe diiyciors, report Iiicluded witliiji the tTU5tees' report has been prepared in accordance with applicable legal requirements.
The Sackler Trust INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OFTHE SACKLER TRUST Matters on which we ar¢ required to report by exceptro In li¥lii of tlie knowledLJe and under5tandin# of the Cliaritable Company aiid its environment obtained in the course of the aiidiL we have identified no material misstatenients in the Trustees, Report. We have nothino to report in re5peci of tlie following mat¢ers wl)ere the Companies Act 2006 requires us io repoit to you if, iii our opinion.. adequate accounting records have noi been kept or retums adequate for our audit have not been received from branches Iiot visited by us., or the fInancal statements are not in agr¢emenL with (he accounting records and i'ewms., or certain disclosures of trust¢es' remunera(ion specified by law are not made. or we have nat received all the information and explanations we require for our audit. Responsibilitie5 of trustee5 As explained more fully in the Trustees, R£sponsibs1ities Statement set out on page 4. the tNstee8 (who are also the dire¢tors of the Charitable Company for the pury)08es of company law) are responsible for the preparation of the fu1claI siatemenls and for beEng 5atl5fLed thai they give a true and fair view, and for such internal control as ihe triistees deterniine is nec£ssary to enable the preparation of financial siatemenls ihat are free from material missthiement, wh¢th¢r due io fraud or error. In preparing the financial statements. Ihe tn]8tees are responsible for assessing tlie charitable company's ability to continue as a going conccrn, disclosing, as applicable, tnatiers related lo going ¢oncem and using the going con¢em basis of accouniing unless the iru.%tees either intend io liquidate the charitable company or to cease operatlOll5. or have no reali.%tic alternaiive bui to do 50. Auditor's responsibilities for the Sudit of the financial stalem¢nt5 Our objective5 are to obtait) reasonable assuraiice about wheiher the financial statemenis as a whole are fi¢e frotn tnaterial missiacement, whether due to fraud or ei'ror. and to issue an auditor's repoil that iii¢lude5 our opinion. Reasonabl¢ a55urance is a high level of assurance. but is not a guarantee, that an audit conducted in aLLOI'dance with ISAS (UK) will alway5 detect a material misstatement when it exists. Misslatements can arise from fi7ud or error and are considered matei'ial if. individually or in the agoregate. they could reiisonably be expected to influenLe ihe econumic decision5 or users taken on the basis of these financial ststements. Based on our understanding of ihe chariiable company'5 operations, we identified th2t the principal risks of noM- compliance with laws alid regulations relaies ro grant making. We considered the extcnt lo which non-compliance mIt have a maiei'ial effect on the fiiiancial siaiements that i'esults in the situaiion ihat no fuilher grant fundiiig can be provided. We a150 considei'ed tli¢ i'elevaiit laws and regulations that have a direc( impact on the prcparation uf the financial statements. We aye required to ev?luate Etlanaueinent's in¢entive5 and opportunities for fraudul¢nt maiiipulation of the financial statements (including the i'isk of oven'ide of conti'ols). We found theiE ivere no priii¢ipal risks diiectly impaciing the haritable company's income aiid tn(Inagement bias in accounting estimates. Audit proccdure5 peiformed tiy the ¢ngabJemenr team included.. Discussion5 Wlth management including Consideration of known or suspected inst2nce5 of non-compliance with laws and regulation and fraud., Evaluatin¥ management's contt'ols designed to prevent and detect irregularities. Identifying and te5tin¥ joumals. in particular journal enti'ies posted with unusual account combinations or with unusual descriptions; and Challertging assumptions aiid judgements made by tnanagement in iheir criiical a¢countEJig e5thmates. Becau$e of the inherent limiiations of an audit, there is a risk ihat we will not detect all irregulartlies, including those leading io a material misstaieinent in the flnancial biatements or llon-coinpliance wilh reguld¢ion.'fhis risk increases the more Ihat compliance with a law or regulation is removed from ihe events and Iraiisactions reflected in the financial statements, as we will be less likely to become aware of instances of non-CO]npliance.
The Dr. Mortimer and Theresa Sackler Foundation INDf4 pfi NDfi NT AUDII'OR'S JIEI l)ORT TO 'I'HI MEI MBEI lis ofi TFIR DR. MORTIMER AND THEI IILSA SACKLER FOUNDATION A fuTther description of our responsibilities for the audit of the financial statements is located on the FinanLial Repoiling Council's website at htl 5:l/www.frc.or .uklauditor5res onsibilitie5. This desci'iption forms part of our audiior's report. Use of our report This report is made solely to the Charitable Coinpany's members, a5 a body, in accordance with Chaptei. 3 of Part 16 of the Companies Act 2006. Our audit work has beeli undertaken so that we might statc to the Charitable Coinpany's membcrs those matters we al'e IEquired to State to them in an aiiditor's repoi'l and foi. no other purpose. To the fullest extent pcrniiiied by law. we do nol accept or assume Tesponsibility to anyone other than tl)c Chai'itable Company and the Charitable Company's members as a body, for our audit work, foi. tliis report, or for the opinions we have fortned. Andrew Fox BA FCA (Senior Statutory Auditor) ror and on behalf of George Hay & CoTnpany, Statutory Auditors 83 Cambridge Street. PiTnlico, London. SWI V 4PS Date.. 21 June 2021
The SackIer Trust STATEMENT OF FINANCIAL ACTIVITIES Incorporating Income and Expenditure Ac¢ount For the year ended 31 December 2020 2020 2019 Nol INCOMING RESOURCES Donations received Investment and Similar income 512,709 638,372 TOTAL INCOMING RESOURCES 512 709 638 372 RESOURCES EXPENDED Charitable activities 872,820 1924,404) Costs of generating funds 266,104 252.356 TOTAL RESOURCES RXPENDED 1,138,924 672.048 Net gains on investments 2,210.242 3.223.780 NET INCOME 1,584.027 4,534,200 RECONCILIATION OF FUINDS Ttslal funds brought fonvard 47 805 320 43,271 120 TOTAL FUNDS CARRIED FORWARD 49 389 347 47 805 320 All funds received are u[estri¢d. There were no other rwognised gains or losses. All amounts deTive from continuing activities. The accompanying notes I to 14 fomi an integral part of these Financial Statements
The Saclder Trust CompAny Number: 07022224 BALANCE SHEET at 31 December 2020 2020 2019 Notes FIXED ASSETS Inve$tmenis 50,601,467 48,074J68 CURRENT ASSETS Cash at bank 13,389,169 17254.106 CREDITORS: amounts falling due within one year 15,999,909) (7.795,868) NET CURRENT ASSETS 7 389260 9,458 238 TOTAL ASSETS LESS CURRENT LIABILITIES 57,990,727 57,532,606 CREDITORS: amout)ts fallit)g due beyond one year 8 601380 9 727 286 NET ASSETS 49 389 347 47 805 320 REPRESENTED BY: FUIYDS OF THE TRUST Unrestricied Funds 49,389.347 47.805,320 TOTAL FUNDS OF THE TRUST 49 89.347 47 805 320 Approved by the Trn8te&% and signed on17ehalf of the Board by.. Sophia Dalrymple- irector and Trustee Date.. 21 June 2021 Antholly Ctsllins- Director and Trustee Date.. 21 lune 2021 Th¢ a¢comp2nysng notes I to 14 fonn an integral part of these FinancEal Statement
The Sackler Trust CASH FLOW STATEMENT For the year ended 31 December 2020 2020 2019 Cash llows from operatlng activities: Net cash u8ed in operating aciiviiies 4 060 789 5.669,321 Cash flows from Investing activitle&: Purchase of invesiments Interest and dividend income receivcd Net ¢ttsh floivs provided by Investlng activitie8 1316,857) 605.812 288,955 {382,985) 791,934 408,949 Change in Cash in th¢ reportlng period (3,771,834) (5,260.372) Cash at the beglnning of the reportlng period 17.254,106 22,668,040 Change in eash due to exch#nge rate movenienl$ (93.1031 (153.562) Ca8h at ihe end of the reportine perlod 13,J89.169 17 254 106 Recon£Èliation of net income to net cash flow used in o eratin activitles 2020 2019 Ntt income ftsr the reporting period as per the 5t&tement of rinan¢tJl activities 1.584,027 4,534.21X) Adjustments for: Gains on investments 12,210.2421 13,223,780) Interest and similar income 1512,7091 1638,372) Decrcase in creditors 12,921,865} 16,341,369) Net cash used in operating aelivities 4 060 789 5 669,321 The accompanying notes I to 14 fonn an integral part of the%e Financial StalemenL 10
The Sackler Trust NOTES TO THE ACCOUNTS At 31 December 2020 ACCOUNTING POLICIES The principal accounting policies adopled, judgements made and key 50Urtes of estimation uncertainty in the preparation of the accounts are as follows.. Basls ofaecounting The aceounis of the Trust. which is a public benefit eniiiy under FRS 102, have been prepared in accordance with ihe Charities SORP {FRS 102)"AccountinLi and Reporting by LharitEes'. Statement of Recommended Praciice applicable io charities preparing their aucounrs in accordance with the Trinoncial Reporting Siand8rd applicable in the UK and Republic of Ireland IFRS 102) (effeciive 151 January 2019)" Financial Reporting Siandard 102"Tlie FinaTtcial Reporting Standard applicable in tl)e UK and RepL]blic of Ireland" tlie Cliarities Acr 201 l and ihe Con)panies Act 2006. The accounts have been prepared UDder the historical cost convention with items recognised at Cost or trdnsaciion value unle&s otherwise siared in the relevant note(sl to the accounts. Gotrtg coneern No material uncertaittties Ihat east significant doubt about Ihe ability of the Trust to continue as a going concem have been identified by the Trustees. The activities, financial position, cash flow and liquidity position are set out in Ihe Trustees, Report and the financial siatements. The Twstees have a reasonable expectaiion that the Trust ha8 adequate resources to coniinue in opcration for the foreseeable future and tiiey thus continue to adopt ihe going concern b&sis of ac¢ountitig in preparing the financial siatements. Incoming re50urees All incoming resources are included in the Sta*ment of Financial A¢iivilies when the Trust 18 entitled to the income. it is probable that the income WEII be reLeived and the amount can be quanrilied with reasonable accuracy. The following specific policies are applied to panicular ¢alegorie5 OE in¢ome.' Voluntary incorne is received by way of granis, donations and gift9 and is included Èn full in the Statemen¢ of Financial AGtivitie8 when receivable. Grants, where entktlemeni is not ¢onditional on the delivery of a specifi¢ perfomiance by the Trust, are recognised when the Trust becomes unconditionally eniitled to th¢ grani. Dunated services and tacilities are ineluded at the value to ihe Trust where this can be quantified. The value of services provided by volut)teers has not been included in these account8. Investment income is included on an accruals basis when receivable. Investment income includes- Dividends Interest income Resources &Ypenrfed Expendllure is re¢ognis¢d on an accnlals basis as a liability is incurred. Expenditure includes any VAT which cat]not be fully 0vered, and is reported as part of ttke expenditure to which it relates.. Ch&riiable expenditure comprises those ¢o&ls incurred by the TrUt in the delivery OF its activities and serviee$ for its beneficiarie5. It includes both coyts ihal can be allocated directly to such activities and those costs of An indireci natyre necebsary to support them. Govemauce costs include thosc costs 8ssociaied with meeting the consiitutional and stalury requtrements of the Trust and include the accountancy fee.8 and costs linked to Ihe strateuic manag)emenl of the Trust. All costs are allocated beiween the expenditure ¢ategori¢s of the Statement of Financial Aciiviues on a basis designed to reflecl the use ofthe resource. Recowiiliort ofgvant commi#iiieJYtspny&ble Granib payable are cliargjed in the year when the offer is nVeYed 10 the recipient. Grallts otfered subjeci conditsons wliich have not been met al the year-end are accrued as expenditure. In ac¢ordan¢e with FRS 102. the payment of a Grani in inslalments over an extended period i5 considered to be a 'debt inslrutnent.. The T81 recordb ils l()ng-lerm liabElilies (i.e. deferred insialmenls) in the accounts at their discounied pr¢ent value in order lo attribute an economic value to the defcrral of paymenis. As the inbtalmenis are Pdid. Ilie unwindlng of Ihe discount is accounl¢d for a. a finance charge in the Statemeni of Finaticial ALtivilies. As per FRS 102.11.12. the present values of deferred instalmenlg are discounted at the required di.8count rate. being ihe market rate for a similar debt inslrurllent. As Ihcre is no such markei, Ihe frust use$ noiional ratc8 to refleLt the top raie of interest available at the Balance Slieel dale for deSit. of Trust funds.
The Saclder Trust NOTES TO THE ACCOUNTS At 31 December 2020 I. ACCOUN'fING POLICIES (continued) lrtveslmenls In a¢cordatkce with FRS 102, the Trust hold% IL8 financial &qsets and financial liabiliiies ai fair value through profit or Ioss I'FVTPL"). Financial assets and financial liabilities are initially recognibed at Cost excluding transaction costs, beiog the fair value Of thc consideration given excluding transaction costs. All transaction ¢0st5' ielating FVTPL inslwments are recognised in the Stateinent of Financial Activiiies when incurred. After initial recognition, the investments of the Trust are included in the Balance Sheet at net market value as at the reporting da wilh both reali5ed and unrealised gains and108ses recorded in the Statement of Financial Activities in the financial year in which they occur. Nei market values of investments itk listed securities and listed unit trnstS quoted on a reCogni¢d stock exchange are stated at the last sale price as at tlie close of business on reporting dat¢. Terni deposits are carri¢d at cost. which approximates Thet fair value because of their short terni to maturity. Net matket value is the amount which could be expected to be received from the disposal tsf an asset in an orderly market after deducting costs expected to be incurred in realising the proceeds of such a di.%posal. Net markei value approximates fair value. Fair value is the price that would be received to 8ell an as$et or paid to transfer a liabtlity in an orderly transa¢iion between market participants at the measurement dale. All assets at)d liabilities for which fair value is measured in the financial statements are cate8orised within the fair value hierarchy, degcribed in note 7 to the financial ylatements. Foreign CMrreK¢i Assets and liabilities in toreign currencies are ttanslaied into sterling al the rale8 of exchange ruling ai the Balance Sheet da. Tran%actions in foreign currencies are Iranslated into sterlirtg at the rate of exchange rulit)g at tlie date of the transaction. Realised and utealiSed exchange differences are reported in the Statement of Financial Activities and categorised in line with the underlyin¥ inC0e or expenditure of the assets or liabilities concerned. The functional and presentational currency of the TTUSt is UK Pounds Sterling. Cash rtftd ea5h eqMlVrtleNts Cash and cash eqLTivalents in the Balance Sh¢¢t cotnprise cash at bank and in hand and short terni deposiis with an original maturity date of ihree months or less. For the putpose of the Cash Flow Statement, ¢ash at)d Cash equivalents consist of cash and cash equivalents as defined above. net of ouislanding balth overdrafis. 2. LEGAL STATUS OF THE TRUST The Trust is a company limited by guaraniee and Iw no share capital. The liability of each member in the event of a wanding up is limited io £10. INVESTMENT AND SIMILAR INCOME 2020 2019 Invesimeni income UK bank deposit inieresi Overseas ballk deposit interest Exchange differences 587.245 2.067 16,500 93,103 512.709 675,452 116.482 153,562 638.372 12
The Saekler Trust NOTES TO THE ACCOUNTS At 31 December 2020 4. CHARITABLE ACTIVITIES 2020 2019 Grantb made- Note I I Reduction in previous commiunents Net discount charged l (¢reditedl- Note 12 3,565,220 12,920,315) 221,288 280,000 (1,248,370) 71,948 Governance wsts- Audit fee - Bank charges 6,089 538 6,627 6,000 496 6,496 Exchange differ¢nces 872 820 924 404 The Ttust had no employees during the year12019.' nil). None of the fru%tees received remuneration or reimbursed expenses during the year (2019-. nil). The audiior did not receive any remuneration in respect of non-audit services during ihe year12019.. nil). 2020 S. COST OF GENERATINC FUNDS 2019 Investment Managemeni and Custody Fees 6. NET GAINS ON INVESTMETr4TS 2020 2019 Realised gains on disposals Ullrealised ¥ains / {losses} Oll restatement at fair value 614,597 1.595.645 411,960 2,811,820 2 210.242 3 223 780 7. INVESTMENTS HELD AT FAIR VALUE THROUGH PROFIT AND LOSS Deposits Inve$tmeTht5 at fair vglue Total Cost at l January 2019 Additions 1,890.839 43,546,806 45,437,645 11.866,505 10,575,438 22,441,943 {10,564.037) (11,494,921) {22,058,9581 (36.417) 448,377 411,960 3,156,890 43,075.700 46,232,590 1,841,778 1,841.778 44,917.478 48,074,368 Disposals Realised Gains l (108ses) Cost ai 31 December 2019 Unrealised gains on invesiments Financial assets at fair value through profit and 105s at 31 December 2019 3,156.890 Cost at I Sanuary 2020 Additions 3,156,890 43,075,71X) 46,232.590 24,161.637 24,724,311 48.885,948 124,724,311) (23,844,780) (48,569,091) 132,5241 647,121 614,597 2,561.692 44,602.352 47,164,044 3,437,423 3,437,423 48,039,775 50,601,467 Di.sposals Realised Gains I Iloqsesl Cost at 31 December 2020 Unrealised gains on investment$ Financial a&8elS at fair value through profit and loss at 31 December 2020 2,561,692 13
The Sackler Trust LYOTES TO THE ACCOUNTS At 31 December 2020 7. INVESTiVIENTS HELD AT FAIR VALiiE THROUGH PROFIT AND LOSS l¢ontlnlled) Investments in 8UritieS held al fair value consist of equities and equlty funds, bond$ and bond nds. red income, Open Ended Investment Companies {OEICs) l Unit Trusts, and Ixchange-Traded Funds (ETFS). The Trust's it)ves(ments recorded at fair value have been ¢ategorised based upon a fair value hierarchy in aocordanLe with FRS 102. Investmenrs measurcd and reported at fair value are Classified and dis¢lo%cd in one of the following fair value hierarchy levels based on the significance of the inputs used in measuring it5 tair value.. Level l inputs are unadjusted quoted prices iTh active markets for identical assets or liabilities that Ihe reporting entily has the abiliiy to aeces8 ai ihe valuation dare. An active market for the asset okr liabiliry ts a market in which an$&ctiOnS for the asset or liability occur with 8uffRLient frequency ld volume lo provide pricing information on an ongoing basis. Level 2 inputs art inputs other than quoted pri¢e$ in active markets included within Level I that are observable for the a&set or liability, either directly or indirectly. Fair value is detemiined thrO8h the use of models or other valuation methodologies. Level 2 inputs include the following.. al Quoted price% for similar a&seL¥ or liabilities Èn active markets. b) Quoted price.q for identical or similw aet8 or liabilities in markeis that are not aCÉive, that is, markets in which ther¢ are few transactions for the asset or liability, the prices ar¢ not current, or price quoiations vary substantially either over time or among market makers, or in which little inforniation is released publicly. ) Inputs other than quoted prices that are observable for ihe asset or liability {e.g. interest rate and yield ¢urves observable at commonly quoted intervals. volatilities. prepayment 5peeds', loss severities. credii risks and default rates). d) Inputs that are derived principally from or ¢omborated by observable market data by correlation or other means. Level 3 inpuis are unobservable inputs for the asset or liability. Unobservable inputs reflect the TTusI's own assumptions about how market participants would be expected lo valu¢ the asset or liability. Unobsetvable inputs are developed based oll the best infonnaiion available in ihe circum5tan¢es, other than markei dale obtained from sources independent of the Trnst and mighi include the TtU5t's own data. An investsn¢nt is always categorised as level 1, 2 or 3 in lis entirety. In certain cases, the fair value measurement For an investment may use a number of different inputs that fall into different levels of the fair value hierarchy. In such cayes, an investmeni's level wiihin Ihe fair value hiei'archy is based on ihe lowest level of iiiput thal is si¥nificaiit to the fasr value measurement, The assessment of the SL8nilicance of a particular input to the fair value me&surement requires judgment and is specific to the investment. The following fair value hierarchy table present5 infomiation about the Tivst'5 investmenis measured at fair value on a recu1¥ basis as of 31 December 2020. No financial assets were transferred E¢tween levels during 2019 or 2020.. Totsl Level I Level 2 Level 3 Financial xsstts at fair v#lue through profit or loss Invesunents at fair value 2,561,692 48,039.775 50.601,467 The following fair value hierarchy table presents infomiation about the TNst's inv¢stmenrs measured at fair value on a recurring basis as of 31 December 2019.. Level I Level 2 Level 3 Total Finaneial assets at fAlr value through profit or loss Investmenty at fair value 3.156,A90 44.917.478 48,074,368 14
The Sackler Trust NOTES TO THE ACCOUNTS At 31 December 2020 8. CREDrtORS: amounts falling due within one year 2020 2019 GranLs payable Accruals 5,906,3J2 93,577 7,743,114 52,754 5.999,909 7 795 868 9. CREDITORS: amounts falling due beyond one year 2020 2019 Grants payable- Note 12 8.601.380 9,727,286 10. TAXATION The Trust 1.8 exempt from rax on income and ¥ains arising ITh pursuit of its charitable objects. 15
The Sackler Trust NOTES TO THE ACCOUNTS At 31 December 2020 11. GRANTS LTrIADE 2020 2019 InstitutiortAI grants made l (redlleed): The Watcrniill Theatre Oxford Philhamonic Orchestra Tnjst Edmonton Academy Trust King8 College London St Marylebone Parish Church The Amber Foulldation National Museum of Anthrowlogy, Mexico- USD 250,000 Galapagos Conservation Trust Genesis Trust Veterans Aid Professional Teaching Institute Save The Children Miscellaneous Donations under £1 50,000 (2020.. 45 grants, 2019.. 6 grants under £50,000) 500,000 280,000 250,000 250,000 250,000 200.oon 187,100 150,000 150.000 150.000 90,000 50,000 1,198.120 140,000 New commiiments 3,565,220 280,(K)O Reduciion in pr¢vÈous commitments (2,920,315) 11,248,370) Exchange differences (34,478) Increase l (decrease) commitments 1002 848 2020 2019 Reconeiiiatlon of grants payxble: CotnEnitmcnts at lJanuary Increase I (decrease) in commitments Grants paid Commitmenis ai 31 D¢cember 17,727.375 644.905 3 828,881 14 543,399 24,145,222 (1,002,848) 5,414,999 17,727 375 Payable within one year Payable beyond one year 5,906.332 8,637,067 14,543,399 7.743,114 9.984.261 17.727.375 All amounts above are actual commitments. Ab set out in Note 12 the amounts payable beyond onc year are.%ubject to diseounts for irtclusion in the Balan¢e She¢t. 16
The Sackler Trust NOTES TO THE ACCOUNTS At 31 December 2020 12. COMMITMINTS PAY ABLE BEYOND ONE YEAR In ¢ompliance with the SORP 2019, the carrysng values of grant commitments payable beyond one year are discounted to net present value using notional inlereqt rat¢s. The rates adopted in preparing these accounts are 1.330/0 per Annum, compounded. as at 31 December 2019 and 0.21 / per atllLum. compounded, a5 at 31 December 2020. The application arld reversal of the discount 15 deemed a'Finan¢e charge. by the SORP 2019 and is Charged to Charitable Activities. 2020 2019 Committnents payable beyond one year at l January 9,984,261 11.966,489 (256.975} 1328.92Jl Di.8¢ount to commitmenrs at l January Carrying value of discounted commitments at l January 9.727,286 11,637,566 Comrnittnents in¢re8sed l (decreasedl during the year 265,138 (168,370) Financ¢ charge attributed tts.. Discount decreased I (increased) on comtnitmenLS' ar l January Discount applied to new commiimenis made during the year 223,221 1.933 221,288 72,342 394 71,948 Commitments becoming due within one year (1,612,332) 11,813,858) Commiunen¢s at 31 December at carrying values 8 001,380 9 727 286 13. REI LATED PARTY TRANSACTIOL¥S No related party iransactions have been identified in the period. 14. IMPACT OF COROL¥AVIRUS (COVID-19) In light of thc etnergence of the coronavirus (COVtD-19). the Charity has asses.%¢d, on an ongoing basis, the impaci on its operarions attd closely monitored ils fLnan¢es, which have not been inatrrially affected a5 a re.sult of the global pandemi¢. The potential (or a fall in global cquity markets is an eveni that would negatively impact on the value of the charitable company's investmenis but it is too early to predict whether there will be any long term impact on our investEnent portfolio in the curreni financial year or beyond a result of COVID-19. 17