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2020-12-31-accounts

Liberum Foundation

(A Registered Charity & Company Limited by Guarantee)

Annual Report & Unaudited Financial Statements

For the year ended 31 December 2020

Company Number: 07196199

Charity Number: 1137475

Liberum Foundation

Reference & Administrative Information

Directors & Trustees:

S Le Prevost (Chairman) (Appointed 4 February 2020)

C Doherty J Kelly N Khassine N Clarke

W Thomas L Hamilton (Resigned 28 May 2020) A Foster (appointed 4 February 2020) C Metcalfe (appointed 4 February 2020) J Klement (appointed 8 September 2020)

Secretary:

A Burton-Hopkins

Registered Office: Ropemaker Place, Level 12 25 Ropemaker Street London EC2Y 9LY

Bankers:

Barclays Bank 1 Churchill Place London E14 5HP

Independent Examiners: Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

Solicitors:

Bates Wells & Braithwaite 2-6 Cannon Street London EC4M 6YH

Liberum Foundation

Contents

Trustees’ Report 4
Independent Examiner’s Report 9
Statement of Financial Activities 10
Balance Sheet 11
Notes to the Financial Statements 12

Liberum Foundation

Trustees’ Report

For the year ended 31 December 2020

The Directors and Trustees (collectively the “Trustees”) present their report along with the financial statements for Liberum Foundation (the “Charity” or “Charitable Company”) for the year ended 31 December 2020. This report is a Directors’ Report as required by Section 415 of the Companies Act 2006 and a Trustees’ Report as required under the Charities Act 2011.

The Charity is constituted as a company limited by guarantee and is governed by the Memorandum and Articles of Association dated 19 March 2010 (the “Memorandum & Articles”).

The financial statements have been prepared in accordance with the accounting policies set out on page 12 and comply with the requirements of the Memorandum & Articles, the Companies Act 2006, the Charities Act 2011 and the FRS 102 Charities SORP.

Structure, Governance & Management

The Charity was established in 2010 by Liberum Capital Limited (the “Member Company”) who is the sole member and sole guarantor of the Charity.

The Member Company has a history of charitable giving both as a company and through individual employees actively raising money themselves for their nominated charities. Following requests from its employees, the Board of the Member Company (the “Board”) felt that the business was established and mature enough to support a more proactive approach to “giving back” and therefore decided to establish the Charity.

The Charity relies on the financial contribution and participation from the Board and employees of the Member Company (the “Employees”) in fundraising activities. The Trustees are appointed by the Member Company and include representatives from the Board and the Employees, as well as an independent trustee. Although they consider the views of the Employees and the Board, the Trustees collectively make decisions regarding the nature and amount of donations made by the Charity. The powers, responsibilities and decision making authority of the Trustees are governed by the Memorandum & Articles. In 2020 the Board agreed to donate an annual amount to the Charity equivalent to 0.5% of the Member Company’s EBITDA, with a minimum payment to the Charity of £75,000 per annum.

The Trustees meet regularly to monitor the progress of projects that the Charity has funded, to consider other donations and also to discuss and organise fundraising events.

All trustees give their time voluntarily with no trustee remuneration being paid during the year. It is anticipated that further volunteers will be invited to apply to join the Charity as Trustees in the coming year on a rotation basis. When the Charity appoints new trustees they are given an introduction to the Charity’s activities and briefing information about their role as a trustee.

Objects & Activities

The objects of the Charity are for the public benefit, to pursue any purposes that are charitable from time to time. Particularly:

Trustees’ Report for the year ended 31 December 2020 (Continued)

Liberum Foundation

By making grants to individuals and organisations to support projects that are aimed at helping children and young people and other members of society or other charitable purposes as determined by the Trustees.

Grant Making Policy

In order to obtain maximum benefit, the Trustees have maintained a structured approach to grants and donations; with the majority of the funds available being used to fund projects with charities that the Charity has previously supported, being registered charities whose objects and activities mirrored that of the Charity’s (the “Anchor Charity”) being:

During the year the Trustees made donations totalling £34,465 (2019: £26,945) to fund specific projects (the “Projects”) with the Anchor Charity described below:

School Home Support: in June 2020 the Charity donated £26,000 in order to continue to support a project which involved the provision of SHS practitioners at two primary schools in North London and a college of higher education in East London, as well as a contribution to the SHS Welfare Fund. The funding benefitted children and parents as well as leveraging further matched funds support directly from each of the institutions. Regular termly reports were received during the year from SHS regarding progress made by the practitioners in the schools. In addition to this a collection was undertaken by the Employees to provide Christmas hampers for families linked to SHS practitioners, and funds were raised to provide books for World Book Day.

Launch It: the Trustees initially met Launch It in 2019 as part of a search for a potential anchor charity. Launch It is a group of charities with the mission to empower young people to fulfil their potential by providing the workspace, mentoring and training needed to start a business. The Trustees supported Launch It and their ‘Growth Guru’ programme by recruiting Member Company Employees with relevant business experience to act as mentors to three businesses. As part of the mentoring programme the Trustees agreed to donate £6,000 to Launch It in 2020.

Ad Hoc Donations in 2020: as a direct result of the COVID-19 pandemic Trustees received many requests for financial assistance from charities which matched the Charities objectives. Trustees agreed to donate ad hoc and unrestricted funding to:

Honeypot : Trustees donated £1,000 to Honeypot, a charity which works with young carers aged 5-12 years by providing respite breaks and on-going outreach support.

Single Homeless Project: Trustees donated £1,000 to Single Homeless Project, a London based charity assisting single Londoners by preventing homelessness, providing support and accommodation, promoting wellbeing, enhancing opportunity, and being a voice for change.

Public Benefit

The Trustees confirm that they 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.

Trustees’ Report for the year ended 31 December 2020 (Continued)

Liberum Foundation

Achievements & Performance

The Charity’s main focus during the year was on developing its relationship with the Anchor Charity, identifying and meeting potential anchor charities and exploring alternative funding opportunities and fundraising. The Charity successfully raised a total of £75,878 during the year (2019: £41,531) which mainly consisted of a donation from the Member Company, and from fundraising events organised by the Trustees and Employees throughout the year. The remaining funds were raised from other ad hoc donations and events organised by the Trustees and Employees.

COVID-19

The COVID-19 pandemic curtailed the Charity’s ability to fundraise and for Employees to engage with the Anchor Charity, and prospective local charities. The pandemic did not have a significant impact on the Charity’s reserves however, largely due to the Member Company donation, and, as a direct result of the pandemic Trustee’s took the decision to make a number of ad hoc donations to charities on an unrestricted basis.

Plans for the Future

In 2021 the Trustees continue their ongoing review of the structure of the Charity, with particular emphasis on:

Financial Review

The movement of the Charity’s financial resources for the year is shown in the Statement of Financial Activities on page 10. The highlights are:

Trustees’ Report for the year ended 31 December 2020 (Continued)

Liberum Foundation

Risks

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to internal controls and the granting of funds and lending externally, and are satisfied that systems and controls are in place to mitigate exposure to these risks.

Related Parties

The Member Company is the sole guarantor of the Charity and it relies on the financial contribution and participation from the Member Company, the Board and Employees to achieve its objectives. Furthermore, the majority of the Trustees of the Charity are employees of the Member Company.

During the year Trustees made donations totalling £740 (2019: £1,000).

Reserves Policy

In the Trustee’s view, the reserves should provide the Charity with adequate financial stability and the means to meet its charitable objectives for the foreseeable future.

The Trustees propose to maintain the charity’s reserves at a level of at least £25,000, over and above sufficient reserves held to cover any current liabilities, this being the typical level of one grant made to an Anchor Charity. This ensures that if minded to do so the Trustees can always make further funds available to support the Anchor Charities or for other funding opportunities that may arise, whilst ensuring that all of the Charities financial obligations can be met. Furthermore, it is not the intention of the Trustees to hold excessive reserves which could otherwise be used in supporting its charitable objectives.

The Trustees reviewed the amount of reserves that are required to ensure that they are adequate to fulfil the Charity’s continuing objectives on at least an annual basis, or prior to agreeing to any grants, donations or other methods of funding. The Trustees are aware that the reserves at the 31 December 2020 were in excess of the £25,000 minimum and given their intention to make further grants and pursue other forms of sustainable funding opportunities during 2021; the Trustees deem the level of reserves at the year-end to be appropriate.

As at the year ended 31 December 2020 the Charity held £122,360 (2019: £83,710) in unrestricted reserves and £Nil (2019 £Nil) held as designated funds.

Trustees’ Responsibilities

The Charitable Company is registered as a company limited by guarantee in England & Wales (number 07196199) and a registered Charity (number 1137475).

The Trustees, who are also directors for the purposes of company law, are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the

Trustees’ Report for the year ended 31 December 2020 (Continued)

Liberum Foundation

Charitable Company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate 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.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Trustees and signed on their behalf by

S Le Prevost

Chairman

Liberum Foundation

Independent Examiner’s Report to the Trustees of Liberum Foundation

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Devonshire House Luke Holt, FCA 60 Goswell Road Independent Examiner For and on behalf of Moore Kingston Smith London EC1M 7AD LLP

Date: 9 September 2021

Liberum Foundation

Statement of Financial Activities (Incorporating an Income & Expenditure Account)

For the year ended 31 December 2020

Notes
Income
3
Charitable activities
Donations, legacies and grants
Other income
Total
Expenditure
4 & 5
Donations and Grants
Other expenditure
Total
Net income/(expenditure)
Total funds carried forward
9
Total funds brought forward		 2020
2019
£
£
80,961
39,134
718
2,386
-
12
81,679
41,531
40,266
26,945
2,763
2,717
43,029
29,662
38,650
11,868
83,710
71,841
122,360
83,710
Total		 2020
2019
£
£
80,961
39,134
718
2,386
-
12
81,679
41,531
40,266
26,945
2,763
2,717
43,029
29,662
38,650
11,868
83,710
71,841
122,360
83,710
Total
41,531
26,945
2,717
29,662
11,868
71,841
83,710

All income and expenditure in the current and prior year represents unrestricted funds.

The notes on pages 12 to 17 form part of these financial statements

Liberum Foundation

Balance Sheet

As at 31 December 2020

Notes
Current assets
Cash at bank and in hand
Total current assets
Creditors and accruals
6
Net current assets
Net assets
Unrestricted funds
9
Total funds
9
Funds of the charity		 2020
£
124,960
124,960
2,600
122,360
122,360
122,360
122,360		 2019
£
86,210
86,210
2,500
83,710
83,710
83,710
83,710

For the year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime within Part 15 of the Companies Act 2006.

7 September 2021

Approved by the Trustees on ………..…….……………. and signed on their behalf by

S Le Prevost

Trustee

Company number: 07196199

The notes on pages 12 to 17 form part of these financial statements

Liberum Foundation

Notes to the Financial Statements

For the year ended 31 December 2020

1 Basis of preparation

1.1 Basis of accounting

These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (FRS 102) and the requirements of the Companies Act 2006.

The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity's financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (including update Bulletin 1) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014.

These financial statements are prepared on the going concern basis, under the historical cost convention and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principle accounting policies are set out below.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

1.2 Financial instruments

Basic financial instruments are measured at amortised cost.

Debtors, creditors and related programme investment

Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price and subsequently measured at amortised cost less any impairment.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.3 Going concern

After making reasonable enquiries, and assessing all data relating to the Foundation’s liquidity and the impact of the Covid-19 pandemic the Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future and do not consider there to be any threat to the going concern status of the Foundation. The Foundation is guaranteed a minimum donation in excess of its running costs and all other expenditure is discretionary. Therefore, the Trustees continue to adopt the going concern basis in preparing the financial statements and confirm there are no material uncertainties at the date of the approval of these financial statements.

Liberum Foundation

Notes to the Financial Statements (continued)

2 Accounting policies

2.1 Income

Recognition of income

Income is included in the Statement of Financial Activities (SoFA) when:

Income with related expenditure

Where income has related expenditure (as with fundraising or contract income) the income and related expenditure are reported gross in the SoFA.

Grants and donations

Grants and donations are only included in the SoFA when the Charity has unconditional entitlement to the resources.

Tax reclaims on donations and gifts

Incoming resources from tax reclaims are included in the SoFA at the same time as the gift to which they relate.

2.2 Expenditure & Liabilities Liability recognition

Liabilities are recognised as soon as there is a legal or constructive obligation committing the Charity to pay out resources.

Grants with performance conditions

Where the Charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SoFA once the recipient of the grant has provided the specified service or output.

These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to the grant which remain in the control of the Charity.

2.3 Taxation

The charity is exempt from corporation tax on its charitable activities.

2.4 Funds structure

Unrestricted funds are funds which are used in accordance with the charitable objects at the discretion of the trustees. Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

2.5 Critical accounting estimates and areas of judgements

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. There are no judgements and estimates are considered by the Trustees to have a significant effect on amounts recognised in the financial statements.

Liberum Foundation

Notes to the Financial Statements (continued)

3 Analysis of income

Analysis of income
Charitable activities
Donations
Charity day
School Home Support
Donations, legacies & grants
Other
Interest receivable
Interest receivable		 2020
2019
£
£
75,000
-
-
36,309
5,961
2,824
80,961
39,134
718
2,386
718
2,386
-
12
-
12
Total
39,134
2,386
2,386
12
12

Liberum Foundation

Notes to the Financial Statements (continued)

4 Analysis of expenditure

Analysis of expenditure
Donations & grants
School Home Support
Launch IT
SHP
Honeypot
Bank charges & interest
Bank charges (including Virgin Giving)
Legal & professional fees
Independent examination - current year
Independent examination - under accrual
Data protection renewal		 2020
2019
£
£
32,266
26,945
6,000
-
1,000
-
1,000
-
40,266
26,945
23
99
23
99
2,600
2,500
140
78
-
40
2,740
2,618
Total
26,945
99
99
2,500
78
40
2,618

Liberum Foundation

Notes to the Financial Statements (continued)

5 Grantmaking

Grants were made during the year to fund specific projects with three main charities, being registered charities who's objects and activities mirrored that of the Charity's. Although the grants were made to fund specific projects or activities, there were no specific performance conditions attached to them.

School Home Support
To fund SHS practitioners in three schools in the London
area to help to keep disadvantaged children in education
Other institutions
Total grants to institutions		 2020
£
32,266
8,000
40,266		 2019
£
26,945
488
27,433

Liberum Foundation

Notes to the Financial Statements (continued)

6 Creditors & Accruals

Creditors & Accruals
Amounts falling due within one year
Independent examination		 2020
£
2,600
2,600		 2019
£
2,500
2,500

7 Related parties

Liberum Capital Limited (the "Member Company") is the sole guarantor of the Charity. The Charity relies on the financial contribution and participation from the Member Company, its Board and Employees to achieve it's objectives. Furthermore the majority of the Trustees of the Charity are employees of the Member Company. During the year the Member Company donated £75,000 (2019: £28,013) to the Charity.

During the year 6 (2018: 6) Trustees also made donations totalling £740 (2019: £1,000). Gift aid of £191 (2019: £150) was recieved in respect of these donations.

8 Remuneration

All Trustees give their time voluntarily, no remuneration or expenses were paid during the year. The Charity has no employees.

9 Reserves

Unrestricted
Total		 Funds as at 1
January 2020
83,710
83,710		 Income
81,679
81,679		 Expenditure
(43,029)
(43,029)		 Transfers
-
-		 Funds as at
31
December
2020
122,360
122,360

10 Limited liability

The Liberum Foundation is a Company limited by guarantee and as such does not have any share capital. In the event of winding up the liability of each member is limited to £1.