# **Registered Charity No. 1134994 (England and Wales)**
**The Ruddock Foundation for the Arts**
**Trustees’ report and financial statements for the year ended 5 April 2022**
**The Ruddock Foundation for the Arts**
## **Contents**
||`Page`
**Page**|
|---|---|
|`Legalandadministrativeinformation`
Legal and administrative information|`1`
1|
|`Reportofthetrustees`
Report of the trustees|`2`
2|
|`Independentauditors’report`
Independent auditors’ report|`6`
6|
|`Statementoffinancialactivities`
Statement of financial activities|`10`
10|
|`Balancesheet`
Balance sheet|`11`
11|
|`Statementofcashflows`
Statement of cash flows|`12`
12|
|`Notestothefinancialstatements`
Notes to the financial statements|`13`
13|
**The Ruddock Foundation for the Arts**
## **Legal and administrative information**
|`Trustees`
**Trustees**|`SirPaulRuddock`
Sir Paul Ruddock|
|---|---|
||`LadyJillShaw-Ruddock`
Lady Jill Shaw-Ruddock|
||`MichaelFullerlove`
Michael Fullerlove|
||`SophieRuddock`
Sophie Ruddock|
||`IsabellaRuddock`
Isabella Ruddock|
|`Bankers`
**Bankers**|`BarclaysWealth`
Barclays Wealth|
||`1ChurchillPlace`
1 Churchill Place|
||`London`
London|
||`E145HP`
E14 5HP|
|`Solicitors`
**Solicitors**|`WigginOsborneFullerlove`
Wiggin Osborne Fullerlove|
||`95ThePromenade`
95 The Promenade|
||`Cheltenham`
Cheltenham|
||`Gloucestershire`
Gloucestershire|
||`GL501HH`
GL50 1HH|
|`Independentauditors`
**Independent auditors**|`SafferyChampnessLLP`
Saffery Champness LLP|
||`71QueenVictoriaStreet`
71 Queen Victoria Street|
||`London`
London|
||`ECAV4BE`
EC4V 4BE|
|`Registered address`
**Registered address**|`10ColvilleMews`
10 Colville Mews|
||`London`
London|
||`W112DA`
W11 2DA|
|`Charitynumber`
**Charity number**|`1134994`
1134994|
Page 1
**The Ruddock Foundation for the Arts**
## **Report of the trustees For the year ended 5 April 2022**
The trustees are pleased to present their annual report and financial statements for the year ended 5 April 2022.
The financial statements have been prepared in accordance with the accounting policies set out in Note 1 and comply with the Charities Act 2011 and the second edition of the 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 Trust was established by a Trust Deed dated 12 January 2010 and registered with the Charity Commission in England and Wales on 10 March 2010.
##
## **Objects of the Foundation**
The objects of the Foundation are:
- a. To advance, promote and educate for the benefit of the public generally all branches of the arts with particular, but not exclusive reference to the performing, literary and decorative arts.
- b. To advance the preservation, protection and improvement of pictures, historic records, books, manuscripts, monuments, armour, porcelain, silver and gold objets d’art and other chattels or items of artistic, historic, or national interest.
- c. To establish and maintain a museum and/or art gallery for the display and promotion of the arts with particular, but not exclusive, reference to the decorative and medieval arts for the benefit of the public.
- d. Notwithstanding the above, to support or carry out such other objects or purposes as are exclusively charitable in accordance with the laws of England and Wales.
- **Organisation**
Trustees meet twice a year to consider grant applications, review investment performance and discuss matters of a strategic and administrative nature.
The power to appoint new trustees is vested in the existing trustees of the Foundation. There is an informal interview and induction process for any new trustee. Continuing training for trustees is undertaken through regular meetings and discussions with individuals and organisations in the areas supported by the Foundation.
##
## **Achievements, performance and future plans**
The Charity paid grants of £1,665,000. It also committed to unconditional future funding for some organisations which has been accrued in these financial statements.
The focus remains on supporting research, conservation and display in museums as well as supporting the work of non-commercial theatres. The vast majority of the grants are to institutions or charities that are world leaders in their respective fields
During the year the major grants paid were:
Metropolitan Museum, New York: $1.1 million (£810,000): this included grants towards the emergency COVID support fund, curatorial departments and a grant towards the renovation of the Ancient Near Eastern galleries.
Page 2
**The Ruddock Foundation for the Arts**
## **Report of the trustees For the year ended 5 April 2022**
Courtauld Institute, London: £350,000 of which £100,000 was to support education programmes and £250,000 to support gallery renovations
The Musee du Moyen Age, Paris: 110,000 euros (£92,000) to support the renovation of the Museum
The Bard Graduate Center: $100,000 (£72,800) for emergency student support during COVID
British Museum: £52,000 towards curatorial support
King Edward’s School, Birmingham: £50,000 to support bursaries
Afrikids: £43,300: general support for work combatting poverty in Ghana
Ashmolean Museum, Oxford: £30,000 to support funding for the Museum’s University Teaching programme;
Almeida Theatre, London: £28,850 of which £25,000 was to directly support productions.
Other charities that received grants between £10,000 and £20,000 were: The Hay Literary Festival
Mansfield College, Oxford Mousetrap Theatre projects MV Youth
## **Grant making policy**
Is to focus on three main areas:
- a. Institutions which look after and conserve paintings and works of art b. Research projects with a focus on medieval art c. Theatre and playwriting
The trustees confirm that they are aware of the Charity Commission’s guidance on public benefit and will consider this when agreeing future grants.
## **Reserves policy**
At 5 April 2022, the reserves of the Foundation comprised an unrestricted income fund and an expendable endowment fund. Donations from the Founder are treated as capital and are invested in line with the policy below. As at 5 April 2022, the expendable endowment fund contained £24,638,602 (2021: £26,643,552).
Trustees do not consider it necessary to maintain substantial reserves in the Income Fund. Accordingly, such reserves are reviewed annually and will not normally exceed the annual amount of net resources expended.
Page 3
**The Ruddock Foundation for the Arts**
## **Report of the trustees For the year ended 5 April 2022**
At 5 April 2022 free reserves, being the unrestricted income fund, were £Nil (2021: £Nil). The trustees are satisfied with the level of free reserves held.
## **Investment policy**
There are no restrictions on the Foundation’s powers to invest. The policy of the trustees is to seek to maximise total return, whilst maintaining the real value of the portfolio and not subjecting it to undue risk. Trustees review investment performance at each meeting, and their policy at least annually.
The investment policy is to aim for returns targeting a long term return of LIBOR+3-5%. The Foundation’s assets are allocated to a range of managers investing in global equities, private equity and real estate.
**Financial review**
## _Income_
Total income for the year amounted to £584,223 (2021: £1,575,122). Investment income earned this period was £45,140 (2021: £215,313). The Foundation manages its investments on a total return basis so that investment income is simply one component of the total investment return.
The Trustees are aware of their responsibilities under the Charities (Protection and Social Investment) Act 2016 and confirm that the Foundation does not carry out any fundraising activities.
## _Grants and Donations_
The Foundation committed to grants totalling £4,307,715 during the year (2021: £632,865). One grant commitment is for more than one year.
##
## _Investment Performance_
During the year the Foundation allocated funds to several external asset managers including Marylebone Partners, Theleme Fund Managers, and Bridges, all of whom seek to deliver good absolute returns.
## **Risk management**
The trustees are responsible for establishing and monitoring internal control systems within the Foundation. The major risks which may impact its activities have been reviewed during the period and the trustees are satisfied that the system of internal controls currently in place is adequate, whilst recognising that they are designed to manage rather than eliminate risk. Internal controls are reviewed on an ongoing basis as part of the day-to-day risk management process within the Foundation.
The Foundation is very well capitalised and there are no significant risks that are foreseen.
## **Impact of Covid-19 on the Foundation**
In March 2020 the World Health Organisation declared the Covid-19 virus to be a global pandemic. This has impacted the operations of almost every organisation globally. The Foundation is aware of the impact on its beneficiaries, where museums had to close their doors and welfare charities are facing increasing demands on their resources. The Trustees continued their grant making programme in the 2021/22 financial year and beyond, providing emergency covid related support to several charitable organisations.
## **Key management personnel remuneration**
The trustees consider the board of trustees as comprising the key management personnel of the Foundation in charge of directing and controlling the Foundation and running and operating the Foundation on a day
Page 4
##
##
**The Ruddock Foundation for the Arts**
## **Independent auditors’ report to the trustees For the year ended 5 April 2022**
## **Opinion**
We have audited the financial statements of The Ruddock Foundation for the Arts for the year ended 5 April 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and 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 Financial Reporting Standard 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 charity’s affairs as at 5 April 2022 and of its incoming resources and application of resources 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 Charities Act 2011.
## **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 charity 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
Page 6
**The Ruddock Foundation for the Arts**
## **Independent auditors’ report to the trustees For the year ended 5 April 2022**
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
- • the charity has not kept sufficient accounting records; or • the financial statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for our audit. **Responsibilities of trustees**
As explained more fully in the Trustees’ Responsibilities Statement set out on page 4, the trustees 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditors’ responsibilities for the audit of the financial statements**
We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Page 7
**The Ruddock Foundation for the Arts**
**Independent auditors’ report to the trustees For the year ended 5 April 2022**
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with trustees and updating our understanding of the sector in which the charity operates.
Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.
## Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with trustees and those responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Page 8
**The Ruddock Foundation for the Arts**
**Independent auditors’ report to the trustees For the year ended 5 April 2022**
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustees 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 charity and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Saffery Champness LLP 71 Queen Victoria Street Chartered Accountants London Statutory Auditors EC4V 4BE
Date: 17 October 2022
Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Page 9
**The Ruddock Foundation for the Arts**
## **Statement of financial activities For the year ended 5 April 2022**
|`Notes`
`Incomeandendowments`
`from:`
`Donations`
`2`
`Investments`
`3`
`Totalincome`
`Expenditureon:`
`Raisingfunds`
`4`
`Charitableactivities`
`-Grants`
`5`
`-Grantrelatedsupportcosts`
`4`
`Totalexpenditure`
`Gain/(loss)oninvestments`
`Netincome/(expenditure)`
`Transfersbetweenfunds`
`Other(losses)/ gains`
`Netmovementinfunds`
`Balancesbrought forward`
`at6 April2021`
`Balancescarriedforward`
`at5 April2022`
`11`
`Unrestricted`
`income`
`funds`
`£`
`-`
`45,140`
`45,140`
`-`
`4,307,714`
`8,812`
`4,316,526`
`-`
`(4,271,386)`
`4,271,386`
`-`
`-`
`-`
`-`
**Unrestricted**
**income**
**funds**
**Notes**
**£**
**Income and endowments**
**from:**
Donations
**2**
-
Investments
**3**
45,140
**Total income**
45,140
**Expenditure on:**
Raising funds
**4**
-
Charitable activities
- Grants
**5**
4,307,714
- Grant related support costs
**4**
8,812
**Total expenditure**
4,316,526
Gain/(loss) on investments
-
**Net income /(expenditure)**
(4,271,386)
**Transfers between funds**
4,271,386
Other (losses) / gains
-
**Net movement in funds**
-
Balances brought forward
at 6 April 2021
-
**Balances carried forward**
**at 5 April 2022**
**11**
-|
`Expendable`
`endowment`
`funds`
`£`
`539,083`
`-`
`539,083`
`1,634`
`-`
`-`
`1,634`
`1,616,124`
`2,153,573`
`(4,271,386)`
`112,863`
`(2,004,950)`
`26,643,552`
`24,638,602`
**Expendable**
**endowment**
**funds**
**£**
539,083
-
539,083
1,634
-
-
1,634
1,616,124
2,153,573
(4,271,386)
112,863
(2,004,950)
26,643,552
24,638,602|
`Total`
`funds`
`2022`
`£`
`539,083`
`45,140`
`584,223`
`1,634`
`4,307,714`
`8,812`
`4,318,160`
`1,616,124`
`(2,117,813)`
`-`
`112,863`
`(2,004,950)`
`26,643,552`
`24,638,602`
**Total**
**funds**
**2022**
**£**
539,083
45,140
584,223
1,634
4,307,714
8,812
4,318,160
1,616,124
(2,117,813)
-
112,863
(2,004,950)
26,643,552
24,638,602|`Total`
`funds`
`2021`
`£`
`1,359,809`
`215,313`
**Total**
**funds**
**2021**
**£**
1,359,809
215,313|
|---|---|---|---|
||||
`1,575,122`
1,575,122|
||||
`1,364`
`632,865`
`9,924`
1,364
632,865
9,924|
||||
`644,153`
644,153|
||||
`7,369,624`
7,369,624|
||||
`8,300,593`
8,300,593|
||||
`-`
`(111,334)`
-
(111,334)|
||||
`8,189,259`
`18,454,293`
8,189,259
18,454,293|
||||
`26,643,552`
26,643,552|
The Statement of Financial Activities includes all gains and losses recognised in the period.
All income and expenditure derives from continuing activities.
The notes on pages 13 to 20 form part of these financial statements.
Page 10
##
|||`2022`|`2021`|
|---|---|---|---|
||`Notes`|||
|`Fixedassets`||||
|`Investments`||`23,847,555`|`22,175,571`|
|`Programmerelatedinvestments`|||`10,000`|
|||`23,847,555`|`22,185,571`|
|`Currentassets`||||
|`Debtors`|||`272,500`|
|`Cashatbank`||`3,490,795`|`4,257,603`|
|||
`3,490,795`|`4,530,103`|
|`Currentliabilities`||||
|`Creditors:amountsfallingdue`
`withinoneyear`||`(868,548)`|`(72,122)`|
|`Netcurrentassets`||`2,622,247`|`4,457,981`|
|`Totalassetslesscurrentliabilities`||
`26,469,802`|
`26,643,552`|
|`Creditors:amountsfallingdueafter`||||
|`morethanoneyear`|`10`|`(1,831,200)`||
|`Netassets`||`24,638,602`|`26,643,552`|
|`Funds`||||
|`Unrestrictedincomefund`|`11`|||
|`Expendableendowmentfund`|`11`|`14,145,108`|`16,829,698`|
|`Revaluationreserve`|`11`|`10,493,494`|`9,813,854`|
|||`24,638,602`|`26,643,552`|
**The Ruddock Foundation for the Arts**
## **Statement of cash flows For the year ended 5 April 2022**
|`Notes`
`Cashflowsfromoperatingactivities:`
`Netcashprovidedby/(usedin)operating`
`12`
`activities`
`Cashflowsfrominvestingactivities:`
`Dividends,interestsandrentsfrominvestments`
`Proceedsfromsaleofinvestments`
`Distributionfromprivateequity`
`Concessionaryloanmadeinyear`
`Purchaseofinvestments`
`Netcashprovidedbyinvestingactivities`
`Cashflowsfromfinancingactivities:`
`Cashendowmentreceipt`
`Netcashprovidedbyfinancingactivities`
`Changeincashandcashequivalentsintheyear`
`Cashandcashequivalentsat6 April2020`
`Cashandcashequivalentsat5 April2021`
`13`
**Notes**
**Cash flows from operating activities:**
**_Net cash provided by/(used in) operating_**
**_activities_**
**12**
**Cash flows from investing activities:**
Dividends, interests and rents from investments
Proceeds from sale of investments
Distribution from private equity
Concessionary loan made in year
Purchase of investments
**_Net cash provided by investing activities_**
**Cash flows from financing activities:**
Cash endowment receipt
**_Net cash provided by financing activities_**
**_Change in cash and cash equivalents in the year_**
**Cash and cash equivalents at 6 April 2020**
**_Cash and cash equivalents at 5 April 2021_**
**13**|`2022`
`(1,136,047)`
`45,140`
`467,822`
`87,710`
`(770,515)`
`(169,843)`
`539,083`
`539,083`
`(766,807)`
`4,257,603`
`3,490,796`
**2022**
**£**
(1,136,047)
45,140
467,822
87,710
-
(770,515)
(169,843)
539,083
539,083
(766,807)
4,257,603
3,490,796|`2021`
`(725,182)`
`674`
`587,086`
`189,238`
`(570,943)`
**2021**
**£**
(725,182)
674
587,086
189,238
-
(570,943)|
|---|---|---|
|||`206,055`
`1,087,309`
206,055
1,087,309|
|||`1,087,309`
1,087,309|
|||`568,182`
568,182|
|||`3,689,421`
3,689,421|
|||`4,257,603`
4,257,603|
The notes on pages 13 to 20 form part of these financial statements.
Page 12
**The Ruddock Foundation for the Arts**
## **Notes to the financial statements For the year ended 5 April 2022**
## **1. Accounting policies**
- **1.1 Basis of accounting**
The financial statements are prepared under the historical cost convention and in accordance with applicable accounting standards. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The trust constitutes a public benefit entity as defined by FRS 102. The functional currency for these financial statements is £.
- **1.2 Going concern**
The trustees have considered the financial position of the Foundation and consider it a going concern. The accounts have been prepared on this basis.
## **1.3 Income**
Investment income is stated on an accruals basis. Donations are accounted for in the period in which the Foundation is entitled to receipt and include any associated gift aid. Gifts in kind are recognised on receipt at the value the Foundation would have paid for the goods or services on the open market.
- **1.4 Expenditure**
Expenditure is included on an accruals basis.
Costs of raising funds comprise those costs directly attributable to managing the investments or endowment fund assets.
Grants awarded and donations payable are charged in full against income when the offer is conveyed to the beneficiary, except in those cases where the offer is conditional and therefore recognised as expenditure when the conditions attached are fulfilled. Grants offered subject to conditions which have not been met at the period end are noted as a commitment, but not accrued as an expense.
- **1.5 Support and governance costs**
Support and governance costs are allocated to the charitable activity as incurred.
- **1.6 Governance costs**
Governance costs comprise all costs involving the public accountability of the Foundation and cost related with statutory requirements.
- **1.7 Funds**
Unrestricted funds - The Income Fund represents the balance of income from all sources after deduction of donations and other necessary expenditure.
The Expendable Endowment Fund represents all the donations of the Founder and can be invested to provide an income from which to make future payments or spent at the trustees’ discretion.
Page 13
**The Ruddock Foundation for the Arts**
## **Notes to the financial statements (continued) For the year ended 5 April 2022**
**1.8 Taxation** The Trust is a registered charity and is not liable to United Kingdom income tax or corporation tax on charitable activities.
## **1.9 Investments** Quoted investments
Investments are stated at mid-market value at the balance sheet date. Realised and unrealised gains and losses on investments are accounted for in the Statement of Financial Activities.
## Unquoted investments
Unquoted investments are valued at the trustees’ best estimate of fair value. The principal unquoted valuations are calculated as follows:
Property fund investments held through funds are managed by private equity and property groups. No readily identifiable market price is available for these unquoted investments. These funds are included at the most recent valuations from the respective investment manager. In a limited number of cases where information is not available at 5 April, the most recent valuations from the managers are adjusted for cash flows and any foreign exchange movement between the most recent valuation and the balance sheet date.
Derivative financial instruments are used for the Foundation’s risk management as part of the investment portfolio management and investment return strategy. The Foundation’s use of derivative financial instruments includes currency forwards. The fair value of contract positions is recognised in the balance sheet and gains/losses on the contracts are recognised in the SOFA.
## **1.10 Programme related investments**
Programme-related investments are initially recognised and measured at the amount paid to the beneficiary. Programme related investments relate to a concessionary loan made to further the charitable objects of the Foundation. The carrying amount is adjusted in subsequent years to reflect repayments and accrued interest and if necessary to adjust for any impairment. Any impairment is treated as a cost of charitable activities.
## **1.11 Foreign exchange**
Transactions in foreign currencies are recorded at the rate of exchange at the date of transaction. Assets or liabilities in foreign currencies at the balance sheet date are translated into Sterling at that date. All exchange differences are recorded in the Statement of Financial Activities.
**1.12 Financial instruments**
The Foundation has financial assets and financial liabilities of a kind that qualify as basic and non basic. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Derivative financial instruments held by the Foundation are not basic financial instruments and are accounted for in accordance with the policy in 1.9.
Page 14
**The Ruddock Foundation for the Arts**
## **Notes to the financial statements (continued) For the year ended 5 April 2022**
**1.13 Key estimates and judgements** In application of the Foundation’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experiences and other factors considered to be relevant. Actual results may differ from these estimates.
**2. Donations and gifts**
|`2.`
**2.**|`Donationsandgifts`
**Donations and gifts**|||
|---|---|---|---|
|||`2022`
**2022**|`2021`
**2021**|
|||`£`
**£**|`£`
**£**|
||`Donations`
Donations|`539,083`
539,083|`1,359,809`
1,359,809|
|||
`539,083`
539,083|
`1,359,809`
1,359,809|
||
`Donationsincludecashof£539,083fromtrustsinwhichtrusteesarethesettlor(2021:`
Donations include cash of £539,083 from trusts in which trustees are the settlor (2021:||
`£1,087,329in`
£1,087,329 in|
||`cashfromtrustees).`
cash from trustees).|||
|`3.`
**3.**|`Investmentincome`
**Investment income**|||
|||`2022`
**2022**|`2021`
**2021**|
|||`£`
**£**|`£`
**£**|
||`Dividendincome`
Dividend income|`45,140`
45,140|`214,639`
214,639|
||`Interest`
Interest|`-`
-|`674`
674|
|||
`45,140`
45,140|
`215,313`
215,313|
|`4,`
**4.**|`Allocationofoverheadcosts`
**Allocation of overhead costs**|
|
|
|||`2022`
**2022**|`2021`
**2021**|
|||`£`
**£**|`£`
**£**|
||`Raisingfunds`
**Raising funds**|||
||`Bankcharges`
Bank charges|`1,634`
1,634|`-`
-|
||`Investmentmanagementfees`
Investment management fees|-|`1,364`
1,364|
|||
`1,634`
1,634|
`1,364`
1,364|
||`Grantrelatedsupportcosts`
**Grant related support costs**|
|
|
||`Auditfees`
Audit fees|`3,960`
3,960|`3,960`
3,960|
||`Accountancyandtaxadvice`
Accountancy and tax advice|`4,620`
4,620|`4,188`
4,188|
||`Accountancyunder-accrualfrompreviousyear`
Accountancy under-accrual from previous year|`-`
-|`1,620`
1,620|
||`Sundrycosts`
Sundry costs|`-`
-|`156`
156|
|||
`8,580`
8,580|
`9,924`
9,924|
The Foundation has no employees (2021: none).
Page 15
**The Ruddock Foundation for the Arts Notes to the financial statements (continued) For the year ended 5 April 2022**
**5.**
During the period no payments were made to any Trustee for their services nor were any expenses reimbursed to them (2021: none).
|`Analysisofgrantspayable`
**Analysis of grants payable**|||
|---|---|---|
||`2022`
**2022**|`2021`
**2021**|
||`£`
**£**|`£`
**£**|
|`TheFoundationmadegrantsacrossthefollowingareasof`
The Foundation made grants across the following areas of|||
|`focus:`
focus:|||
|`Researchandcuratorialsupport`
Research and curatorial support|`726,169`
726,169|`374,152`
374,152|
|`Museumacquisitions`
Museum acquisitions|`7,259`
7,259|`3,904`
3,904|
|`Museumandgalleryprojects`
Museum and gallery projects|`3,320,344`
3,320,344|`92,805`
92,805|
|`Culturalexhibitions`
Cultural exhibitions|`-`
-|`90,000`
90,000|
|`Otherareas`
Other areas|`253,942`
253,942|`72,004`
72,004|
|
`Totalgrantscommittedintheyear`
**Total grants committed in the year**|
`4,307,714`
4,307,714|
`632,865`
632,865|
|
`Thegrantspayablenotedabovedoesnotincludeanydonations`
The grants payable noted above does not include any donations|
`madetoindividuals(2021:£Nil),`
made to individuals (2021: £Nil),||
|`allgrantshavebeenmadetoinstitutions.`
all grants have been made to institutions.|||
|`Formoredetailedinformationaboutrecipientsofsignificantgrantsduringtheyearpleaserefer`
For more detailed information about recipients of significant grants during the year please refer|||
|`tothetrustees’report.`
to the trustees’ report.|||
|`Investments`
**Investments**|||
||`2022`
**2022**|`2021`
**2021**|
||`£`
**£**|`£`
**£**|
|`Marketvalueat6 April2021`
Market value at 6 April 2021|`22,175,571`
22,175,571|`14,796,422`
14,796,422|
|`Additionsatcost`
Additions at cost|`770,506`
770,506|`1,186,018`
1,186,018|
|`Disposalsatmarketvaluebroughtforwardorcost`
Disposals at market value brought forward or cost|`(467,822)`
(467,822)|`(988,364)`
(988,364)|
|`Distributionfromprivateequity`
Distribution from private equity|`(87,710)`
(87,710)|`(189,238)`
(189,238)|
|`Unrealisedgains/(losses)onrevaluationat5 April`
Unrealised gains/ (losses) on revaluation at 5 April|`1,457,010`
1,457,010|`7,382,856`
7,382,856|
|`(Decrease)/Increaseincashheldbyinvestmentmanager`
(Decrease)/ Increase in cash held by investment manager|`-`
-|`(12,123)`
(12,123)|
|`Marketvalueat5 April2022`
**Market value at 5 April 2022**|
`23,847,555`
23,847,555|
`22,175,571`
22,175,571|
|`Historicalcostat5 April2022`
Historical cost at 5 April 2022|
`13,354,061`
13,354,061|
`12,361,717`
12,361,717|
## **6. Investments**
The investment portfolio includes material holdings in Theleme Fund Limited of £6,888,066 (2021: £5,646,667), Lansdowne Developed Markets of £4,417,174 (2021: £4,852,199), Bridges Property Alternatives of £2,045,525 (2021: £1,585,885) and the Marylebone Lane Fund of £10,496,798 (2021: £10,090,818). No other individual holdings are considered material in the context of the market value of the portfolio.
Page 16
**The Ruddock Foundation for the Arts**
## **Notes to the financial statements (continued) For the year ended 5 April 2022**
|`Investmentsatmarketvalue:`
`2022`
`£`
`UKotherinvestments`
`6,462,699`
`Overseasotherinvestments`
`17,384,856`
`Cash`
`-`
`Totalinvestmentsatmarketvalue`
`23,847,555`
`AttheyearendtheFoundationhada commitmentof£1,119,208forfurtherfundingof`
`PropertyAlternativesinvestmentfunds(2021:£1,336,700).`
`Programmerelatedinvestments`
`2022`
`£`
`Concessionaryloans`
`-`
`Totalinvestmentsatfairvalue`
`-`
Investments at market value:
**2022**
**£**
UK other investments
6,462,699
Overseas other investments
17,384,856
Cash
-
**Total investments at market value**
23,847,555
At the year end the Foundation had a commitment of £1,119,208 for further funding of
Property Alternatives investment funds (2021: £1,336,700).
**Programme related investments**
**2022**
**£**
Concessionary loans
-
**Total investments at fair value**
-|`2021`
`£`
`6,438,085`
`15,737,486`
`-`
**2021**
**£**
6,438,085
15,737,486
-|
|---|---|
||
`22,175,571`
22,175,571|
||
`theBridges`
`2021`
`£`
`10,000`
the Bridges
**2021**
**£**
10,000|
||
`10,000`
10,000|
## **7. Programme related investments**
During 2020 the Foundation made a loan of £10,000 to the National Funding Scheme. The interest rate of 0% was below the prevailing market rate, it therefore meets the definition of a concessionary loan. In the 2022 financial year this loan was converted to a grant.
## **8. Debtors**
|`Giftaidreceivable`
`Creditors- amountsfallingdue withinoneyear`
`Grantspayable`
`Accruals`
Gift aid receivable
**9.**
**Creditors - amounts falling due within one year**
Grants payable
Accruals|
`2022`
`£`
`-`
`-`
`2022`
`£`
`860,400`
`8,148`
`868,548`
**2022**
**£**
-
-
**2022**
**£**
860,400
8,148
868,548|`2021`
`£`
`272,500`
**2021**
**£**
272,500|
|---|---|---|
|||
`272,500`
272,500|
|||
`2021`
`£`
`63,974`
`8,148`
**2021**
**£**
63,974
8,148|
|||
`72,122`
72,122|
Page 17
**The Ruddock Foundation for the Arts**
## **Notes to the financial statements (continued) For the year ended 5 April 2022**
**10. Creditors - amounts falling due after more than one year**
Grants payable
|`2022`
**2022**|`2021`
**2021**|
|---|---|
|`£`
**£**|`£`
**£**|
|`1,831,200`
1,831,200|`-`
-|
Grants payable constitute 3 instalments of a grant that is expected to be paid annually.
## **11. Analysis of net assets between funds**
||`Unrestricted`
**Unrestricted**|`Expendable`
**Expendable**|`Totalat`
**Total at**|
|---|---|---|---|
||`income`
**income**|`endowment`
**endowment**|`5April`
**5 April**|
||`fund`
**fund**|`fund`
**fund**|`2022`
**2022**|
||`£`
**£**|`£`
**£**|`£`
**££**|
|`Investments`
Investments|`-`
-|`23,847,555`
23,847,555|`23,847,555`
23,847,555|
|`Currentassets`
Current assets|`868,548`
868,548|`2,622,248`
2,622,248|`3,490,796`
3,490,796|
|`Currentliabilities`
Current liabilities|`(868,548)`
(868,548)|`-`
-|`(868,548)`
(868,548)|
|`Longtermliabilities`
Long term liabilities||`(1,831,200)`
(1,831,200)|`(1,831,200)`
(1,831,200)|
|`Netassets`
Net assets|
`-`
-|
`24,638,603`
24,638,603|
`24,638,603`
24,638,603|
|
`xpendableendowmentfundincludestherevaluationreserveof`
xpendable endowment fund includes the revaluation reserve of|||
`£10,493,494`
£10,493,494|
||`Unrestricted`
**Unrestricted**|`Expendable`
**Expendable**|`Totalat`
**Total at**|
||`income`
**income**|`endowment`
**endowment**|`5April`
**5 April**|
||`fund`
**fund**|`fund`
**fund**|`2021`
**2021**|
||`£`
**£**|`£`
**£**|`£`
**£**|
|`Investments`
Investments|`10,000`
10,000|`22,175,571`
22,175,571|`22,185,571`
22,185,571|
|`Currentassets`
Current assets|`62,122`
62,122|`4,467,981`
4,467,981|`4,530,103`
4,530,103|
|`Currentliabilities`
Current liabilities|`(72,122)`
(72,122)|`-`
-|`(72,122)`
(72,122)|
|`Netassets`
Net assets|
`-`
-|
`26,643,552`
26,643,552|
`26,643,552`
26,643,552|
|||||
Expendable endowment fund includes the revaluation reserve of £10,493,494
Expendable endowment fund includes the revaluation reserve of £9,813,854.
## **12. Related party transactions**
Donations connected to Trustees are set out in note 2 to these financial statements. There were no other related party transactions during the year (2021: none).
Page 18
**The Ruddock Foundation for the Arts**
## **Notes to the financial statements (continued) For the year ended 5 April 2022**
**13. Reconciliation of net income to net cash flow from operating activities**
|`14.`
`Netincome/(expenditure)for theyear`
`Adjustmentsfor:`
`(Gains)/lossesoninvestments`
`Realisedforeignexchangegain`
`Dividends,interestandrentsfrominvestments`
`Loanconvertedtoa grant`
`(Increase)/decreaseindebtors`
`Increase/(decrease)increditors`
`Endowmentsreceived`
`Netcash(usedin)/providedbyoperatingactivities`
`Analysisofcashandcashequivalents`
`At`
`6`
`April`
`2021`
`£`
`Cashinhand`
`4,257,603`
`Cashheldbyinvestmentmanager`
`-`
`Totalcashandcashequivalents`
`4,257,603`
**_Net income/(expenditure) for the year_**
**Adjustments for:**
(Gains)/losses on investments
Realised foreign exchange gain
Dividends, interest and rents from investments
Loan converted to a grant
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Endowments received
**_Net cash (used in)/provided by operating activities_**
**14.**
**Analysis of cash and cash equivalents**
**At 6 April**
**2021**
**£**
Cash in hand
4,257,603
Cash held by investment manager
-
**Total cash and cash equivalents**
4,257,603|
`2022`
`£`
`(2,004,950)`
`(1,457,000)`
`-`
`(45,140)`
`10,000`
`272,500`
`2,627,626`
`(539,083)`
`(1,136,047)`
`Netcash`
`movement`
`£`
`(766,807)`
`-`
`(766,807)`
**2022**
**£**
(2,004,950)
(1,457,000)
-
(45,140)
10,000
272,500
2,627,626
(539,083)
(1,136,047)
**Net cash**
**movement**
**£**
(766,807)
-
(766,807)||
`2021`
`£`
`8,189,259`
`(7,381,747)`
`11,855`
`(215,313)`
`-`
`(272,500)`
`30,573`
`(1,087,309)`
`(725,182)`
`At5 April`
`2022`
`£`
`3,490,796`
`-`
**2021**
**£**
8,189,259
(7,381,747)
11,855
(215,313)
-
(272,500)
30,573
(1,087,309)
(725,182)
**At 5 April**
**2022**
**£**
3,490,796
-|
|---|---|---|---|
|||
||
|||
||
||||
`3,490,796`
3,490,796|
Page 19
## **The Ruddock Foundation for the Arts**
## **Notes to the financial statements (continued) For the year ended 5 April 2022**
## **15. 2021 SOFA comparatives**
|`Incomeandendowments`
`from:`
`Donations`
`Investments`
`Totalincome`
`Expenditureon:`
`Charitableactivities`
`-Grants`
`-Grantrelatedsupportcosts`
`Raisingfunds`
`Totalexpenditure`
`Gain/(Loss)oninvestments`
`Netincome/(expenditure)`
`beforetransfers`
`Transfersbetweenfunds`
`Othergains/(losses)`
`Netmovementinfunds`
`Balancesbrought forward`
`at6 April2020`
`Balancescarriedforward`
`at5 April2021`
**Income and endowments**
**from:**
Donations
Investments
**Total income**
**Expenditure on:**
Charitable activities
- Grants
- Grant related support costs
Raising funds
**Total expenditure**
Gain/(Loss) on investments
**Net income/ (expenditure)**
**before transfers**
**Transfers between funds**
Other gains/(losses)
**Net movement in funds**
Balances brought forward
at 6 April 2020
**Balances carried forward**
**at 5 April 2021**|
`Unrestricted`
`Funds`
`£`
`-`
`215,313`
`215,313`
`632,865`
`9,924`
`-`
`642,789`
`-`
`(427,476)`
`538,810`
`(111,334)`
`-`
`-`
`-`
**Unrestricted**
**Funds**
**£**
-
215,313
215,313
632,865
9,924
-
642,789
-
(427,476)
538,810
(111,334)
-
-
-|
`Endowment`
`Funds`
`£`
`1,359,809`
`-`
`1,359,809`
`-`
`-`
`1,364`
`1,364`
`7,369,624`
`8,728,069`
`(538,810)`
`-`
`8,189,259`
`18,454,293`
`26,643,552`
**Endowment**
**Funds**
**£**
1,359,809
-
1,359,809
-
-
1,364
1,364
7,369,624
8,728,069
(538,810)
-
8,189,259
18,454,293
26,643,552|`2021`
`Total`
`£`
`1,359,809`
`215,313`
**2021**
**Total**
**£**
1,359,809
215,313|
|---|---|---|---|
||||
`1,575,122`
1,575,122|
||||
`632,865`
`9,924`
`1,364`
632,865
9,924
1,364|
||||
`644,153`
644,153|
||||
`7,369,624`
7,369,624|
||||
`8,300,593`
8,300,593|
||||
`-`
`(111,334)`
-
(111,334)|
||||
`8,189,259`
`18,454,293`
8,189,259
18,454,293|
||||
`26,643,552`
26,643,552|
Page 20