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← Montpelier Foundation Limited

2023-12-31-accounts

Montpelier Foundation Limited

(a Company Limited by shares and registered as a charity) Company Registration Number: 07462731 Charity Registration Number: 1139851

REPORT AND FINANCIAL STATEMENTS

for the year to 31 December 2023

Montpelier Foundation Limited

CONTENTS

Page
Trustees' Annual Report 1
Report of the Auditor 5
Statement of Financial Activities 9
Balance Sheet 10
Cashflow 11
Notes to the Financial Statements 12

Montpelier Foundation Limited

Directors' ANNUAL REPORT

for the period to 31 December 2023

Montpelier Foundation Limited (the 'Foundation') is a charitable company limited by shares and incorporated as Company number 07462731 on 7 December 2010 and listed on the Central Register of Charities under registration Charity number 1139851.

The Foundation was established under, and is governed by, its Articles of Association. The directors of the Foundation are its Directors for the purposes of charity law and throughout this report are collectively referred to as 'the Directors'.

As set out in the Articles of Association, the Directors, who shall number not less than two but shall not be subject to any maximum, may be appointed for such terms as thought fit by the shareholder, in the case of shareholder appointments, or the Directors in the case of appointments made by the Directors.

Reference and administrative information

Directors Nicholas Cournoyer
Richard Brass
Secretary Temple Secretarial Limited
Registered Office 16 Old Bailey
London, EC4M 7EG
Auditors Moore Kingston Smith LLP
9 Appold Street
London, EC2A 2AP
Investment Managers The Directors
Bankers C Hoare and Co.
37 Fleet Street
London
EC4P 4DQ

Page 1

Montpelier Foundation Limited

Directors' ANNUAL REPORT cont'd

for the period to 31 December 2023

Report of the Directors for the period ended 31 December 2023

The Directors present their report along with the financial statements of the Foundation for the period from 1st January to 31st December 2023.

The financial statements comply with statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities and have been prepared in accordance with Companies Act 2006 and Charities Act 2011.

Objects, Objectives, The Foundation provides funding to organisations whose core focus is to see meaningful
Governance & Management income uplift for those who need it most, as well as to fight climate change. The support the
Foundation provides is structured as grants, loans or equity investments, and funding
decisions are always driven by the social and environmental impact.
The Directors are responsible for the strategic direction and policy of the Foundation and,
subject to any prudent delegation to advisers and agents, make all substantive decisions in
relation to the Foundation.
Activities and Achievements In the financial period ending 31 December 2023, Montpelier Foundation (MF) continued its
livelihoods grant-making to its long-standing non-profit partners in the UK and
internationally. Total grant-making remained steady, at £1,609,671, while costs stood at
£389,308 (this includes costs of generating funds, staff and support costs, as well as
governance costs). Since inception in 2011, i.e. over a twelve-year period, the Foundation
has now distributed a total of over £11.6 million in grants and programme-related
investments (net of repayments).
Programme-Related Investment (PRI) activity remained steady in 2023 with the outstanding
balance staying at around £65,000. MF continues to carefully monitor its PRIs and received
further repayments post year-end.
Future Plans The Foundation intends to continue its work to fight poverty and climate change globally at
similar grant-making levels which enable capital preservation.
Grant-Making Policy The Foundation mainly provides grants to non-profits working to improve livelihoods and the
environment in the Global South and the UK. The Directors reserve the right to make grants
that may fall outside of these areas in a strict sense, as described in the Grant-Making
Policy approved by the Board, such as to combat homelessness or to deal with a health or
humanitarian crisis.
All grants are approved or pre-approved by Directors based on criteria such as impact,
leadership, and past and potential growth, following a standardised due diligence process.
We do not accept unsolicited proposals.
Public Benefit As required by the Charities Act 2011, the Directors have referred to the Charity
Commission's general guidance on public benefit when making grants and Programme-
Related Investments.
Financial Review The Foundation received £137,006 (2022: £88,094) in interest and dividend income, as well
as £1,253,329 (2022: £0) in grants and donations. Outgoings comprised of charitable
donations of £1,609,671 (2022: £1,567,450) and running costs of £389,308 (2022:
£298,535).
In addition, the Foundation had unrealised and realised net gains on its investments totalling
£730,011 (2022: unrealised losses of £506,464). It lost £16,457 on foreign exchange (2022:
gain of £190,602).
As a result, the net movement of funds was an incoming of £104,909 (2022: outgoing of
£2,093,754), and the Foundation ended the year with Capital and Reserves of £6,026,109
(2022: £5,921,199).
Risk Management The major risks to which the Charity is exposed, as identified by the Directors, have been
reviewed and the Directors are satisfied that the systems in place mitigate those risks. A
Risk Policy was approved by the Directors as part of this process. The Risk Register was
updated as of December 2023.

Page 2

Montpelier Foundation Limited

Directors' ANNUAL REPORT cont'd for the period to 31 December 2023

Risk Management (cont'd) The major risks as identified by the Directors in the Risk Register are:
- Economic or governance risk at a grantee organisation level. This risk is mitigated by an
extensive due diligence process and rigorous reporting requirements, and by staggered
payments which are contingent upon satisfactory reporting.
- Economic and political risk at a country level. However, the risk is spread over a wide
range of countries. This portfolio is reviewed by the Board on a regular basis to ensure this
risk remains mitigated.
- Particular risks associated with grantees working with vulnerable groups (children in
particular). Verifying the existence and application of a child protection policy is part of the
Charity’s due diligence process. This includes ensuring that potential grantees or investees
of the Charity perform the necessary background checks and training of employees,
volunteers and other adults who interact with vulnerable beneficiaries.
- Investment Risk in Programme Related Investments (PRIs). PRIs are monitored closely
both financially and on their social outcomes, and they are impaired and/or exited as
appropriate. The book value of the five PRIs was £64,740 as at 31 December 2023.
Investment Policy and Under the Foundation's Articles of Association, the Directors have wide powers of
Performance investment in respect of the Foundation's assets. In recognition of their general duty of
prudence and the need to have proper regard to the suitability of investments and the need
to consider diversification, the Directors have adopted the current investment policy to
maintain a certain level of income and capital growth while avoiding speculative or
hazardous investments such as futures or traded options. The prudent investment of the
Foundation's assets continued with a balance of cash and investments providing both
income and the potential for capital appreciation. The Directors reviewed the positions of
the non-PRI investment portfolio and noted the diversification in terms of asset class,
sector, geography, and currency exposure. The investment portfolio had a strong
performance in calendar year 2023 with an XIRR of 23.48%. This return remained constant
for the overall period that the Foundation has existed, at 11.66% for the period from 14
September 2011 to 31 December 2023.
Regarding the Programme Related Investment (PRI) strategy, it is aligned with the
charitable mission and objectives of the Foundation. The Foundation's social investments
are designed to achieve the financial sustainability and scale of the targeted enterprises,
whilst seeking a social return on investment, although PRI activity has continued to
decrease. In 2023, there were no new PRIs and these were valued at £64,740.
Charity Governance Code The Board have noted the updates to the Charity Governance Code. The charity aims to
embody the principles of equality, diversity and inclusion (EDI) through its investment and
grant-making, for example by avoiding funding organisations of low integrity and choosing
grantees with participatory practices (such as community-led development, representation
of the people served by the charity in processes and advisory boards, etc). The Board will
also be mindful of EDI when appointing any new directors.
Reserves Policy The Trustees have determined that MF should maintain 50% of its annual staff, support
costs and governance costs in reserves. This figure amounts to £186,655 (2022: £141,147),
which is sufficiently covered by unrestricted funds totalling £6,026,109 as at 31 December
2023 (2022: £5,921,199). Looking forward, the grant-making activities and the charity's
costs are expected to remain at the same level to allow MF to continue its work for the
foreseeable future.
Appointment of New Directors New Directors may be appointed by the shareholders or by the Directors themselves, to fill
a vacancy or as an additional Director. In respect of future appointments, the Foundation
shall select appropriate Directors and provide to them with the necessary materials and
training to acquaint them with the governance and policies of the Foundation as well as with
what is expected of them. Additional information is provided to the Directors on an ongoing
basis.
Auditors Moore Kingston Smith LLP have indicated their willingness to continue in office and in
accordance with the provisions of the Companies Act, it is proposed that they be re-
appointed audtors or independent examiners, dependant on statutory requirements, for the
ensuing year.

Page 3

Montpelier Foundation Limited

Directors' ANNUAL REPORT cont'd

for the period to 31 December 2023

Statement of Directors' responsibilities

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

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

The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Directors are aware at the time of approving the Directors’ Annual Report:

These accounts have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies and in accordance with the Financial Reporting Standards for Smaller Entities (effective April 2008).

Approved by the Directors on:

and signed on their behalf by:

Date:

Richard Brass, Director

Page 4

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MONTPELIER FOUNDATION LIMITED

Opinion

We have audited the financial statements of Montpelier Foundation Limited (‘the company’) for the year ended 31 December 2023 which comprise the Statement of Financial, the Balance Sheet, the Cash Flow Statement 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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.

Page 5

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MONTPELIER FOUNDATION LIMITED

Opinions on other matters prescribed by the Companies Act 2006

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

Other matter

The comparative figures in the financial statements of the company were not audited as the company did not require a statutory audit under the Companies Act 2006 or Charities Act 2011 last year.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 4, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page 6

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MONTPELIER FOUNDATION LIMITED

obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

Page 7

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MONTPELIER FOUNDATION LIMITED

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.

Use of our report

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

Adam Fullerton (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

6[th] Floor 9 Appold Street London EC2A 2AP

Date: 31 October 2024

Page 8

Montpelier Foundation Limited

STATEMENT OF FINANCIAL ACTIVITIES

(including income and expenditure account)

for the year ended 31 December 2023

Note
INCOME
Investments
3
Grants and donations
4
TOTAL INCOMING RESOURCES
EXPENDITURE
Generating Funds
5
Charitable activities
6
TOTAL RESOURCES EXPENDED
NET GAINS/(LOSSES) ON INVESTMENTS
Realised
11.1
Unrealised
11.1
NET INCOME/(EXPENDITURE)
OTHER RECOGNISED GAINS/(LOSSES)
Gains/(losses) on foreign exchange
NET MOVEMENT IN FUNDS
RECONCILLIATION OF FUNDS
Total funds brought forward
15
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
137,006
1,253,329
1,390,335
15,997
1,982,982
1,998,979
128,001
602,010
730,011
121,367
(16,457)
104,909
5,921,199
6,026,109		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2023
Total
Funds
£
137,006
1,253,329
1,390,335
15,997
1,982,982
1,998,979
128,001
602,010
730,011
121,367
(16,457)
104,909
5,921,199
6,026,109		 2022
Total
Funds
£
88,094
-
88,094
16,241
1,849,745
1,865,986
-
(506,464)
(506,464)
(2,284,356)
190,602
(2,093,754)
8,014,953
5,921,199

All of the charity's activities relate to continuing operations

The charity has no recognised gains and losses other than those shown in the statement of financial activities.

Page 9

Montpelier Foundation Limited

BALANCE SHEET

as at 31 December 2023

Note
FIXED ASSETS
Tangible Assets
10
Investments:
Investments
11.1
Programme related investments
11.2
CURRENT ASSETS
Debtors
12
Cash at Bank and in Hand
LIABILITIES
Creditors: falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS LIABILITIES
CAPITAL AND RESERVES
Share Capital
14
Unrestricted reserves
15
Restricted Reserves
15		 2023
£
4,364
3,437,067
64,740
3,506,171
15,807
2,534,892
2,550,699
(30,760)
2,519,939
6,026,110
1
6,026,109
-
6,026,110		 2022
£
4,095
4,886,975
65,082
4,956,152
8,321
971,722
980,043
(14,995)
965,048
5,921,200
1
5,921,199
-
5,921,200

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

Approved by the Directors and authorised for issue on:

29 October 2024

and signed on their behalf by:

Date:

Richard Brass, Director

COMPANIES HOUSE NUMBER: 07462731

The accompanying notes form part of these financial statements.

Page 10

Montpelier Foundation Limited

CASHFLOW STATEMENT

Notes
Cash generated from operating activities:
Net cash provided by (used in) operating activities
see below
Cash flows from investing activites:
Dividends, interest and rents from investments
3
Purchase of tangible fixed assets
10
Purchase of investments
11.1 & 11.2
Proceeds from sale of of investments
11.1 & 11.2
Investment Management Fees
5
Net cash provided by investment investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Change in cash and cash equivalents due to exchange rate movements
Cash and cash equvalents at the end of the reporting period		 2023
2022
£
£
(722,282)
(1,855,134)
130,201
88,094
(2,798)
(5,255)
(422,791)
(16,744)
2,602,710
7,219
(5,412)
(6,197)
2,301,909
67,117
1,579,627
(1,788,017)
971,722
2,569,137
(16,457)
190,602
2,534,892
971,722

Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/ (expenditure) (as per the statement of
Notes
SOFA
financial activties)
Adjustments for:
Depreciation charges
10
Dividends, interest and rents from investments
3
Loss/(profit) on Forex differences
Revaluation of investments
11.1 11.2
Investment Management Fees
5
(Increase)/decrease in debtors
12
Increase/(decrease) in creditors
13
Net cash provided by (used in) operating activities
Analysis of cash and cash equivalents
Total cash and cash equivalents		 2023
2022
£
£
104,909
(2,093,754)
2,530
1,608
(137,006)
(88,094)
16,457
(190,602)
(729,669)
503,726
5,412
6,197
(680)
2,736
15,765
3,048
(722,282)
(1,855,135)
2023
2022
£
£
2,534,892
971,722

Page 11

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

1. ACCOUNTING POLICIES

(a) Basis of Preparation

Montpelier Foundation Limited is a company limited by shares (Company number 07462731). Its registered office is Third Floor, Old Bailey, London, EC4M 7AN.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for

the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

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.

(b) Going concern

The directors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The directors have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the directors have considered the charity’s forecasts and projections and have taken account of pressures on donation and investment income on the charitable company's activities. The charitable company has a significant unrestricted investment portfolio from which capital could be drawn upon if necessary to support these. After making enquiries the directors have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the forseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

(c) Fund Structure

Unrestricted Funds comprise those funds which the directors are free to use in accordance with the charitable objects.

Restricted funds - these are funds that have restrictions imposed by donors and can only be applied for the particular purposes specified by donors.

(d) Incoming Resources

All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. The following accounting policies are applied to different categories of income:

Grants and Donations Receivable

Grants and donations are recognised in the SOFA when conditions for receipt have been complied with.

Investment Income

Investment income is accounted for when receivable and is stated gross of any reclaimable taxation relief.

(e) Resources Expended

Liabilities are recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on the accruals basis and has been classified under headings that aggregate all costs related to the category.

Page 12

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

1. ACCOUNTING POLICIES (CONTINUED)

(f) Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and preference shares that are classified as debt, are initially recognised at the transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services thart have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method.

(g) Fixed Asset Investments

Investments are stated at market value at the balance sheet date and are primarily held to provide an investment return. The SOFA includes the net gains and losses on revaluation and disposals throughout the year.

Programme Related investments are included at the value of the loans advanced to beneficiaries less any provision against those deemed irrecoverable.

(h) Realised and Unrealised Gains and Losses

All gains and losses are taken to the SOFA as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).

(i) Tangible fixed assets

Tangible fixed assets are included at cost less accumulated depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset on a straight line basis over its expected useful economic life. The rates are as follows:

Computer equipment and machinery straight line over 3 years Factory equipment and machinery straight line over 5 years

Page 13

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

1. ACCOUNTING POLICIES (CONTINUED)

(j) Foreign Exchange

Assets and liabilities expressed in foreign currency are translated into sterling at appropriate rates of exchange ruling at the end of the financial year. Differences on exchange arising during the year are taken through the Statement of Financial Activities.

(k) Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have most significant effect on amounts recognised in the financial statements:

The fair value estimations of Level 2 and Level 3 financial instruments are considered as estimations due to the risks associated with the investments held.

The year end valuation of the Programme Related Investments, and assessment for impairment, which are made on the basis of assessment of the performance of investments.

2. REMUNERATION OF TRUSTEES

In the financial period ended 31 December 2023, none of the trustees received any remuneration or had expenses reimbursed by the charity (2022: none).

3. INVESTMENT INCOME

Year to 31 December 2023

Income from Investments
Interest on cash deposits
Year to 31 December 2022
Income from Investments
Interest on cash deposits
4. GRANTS AND DONATIONS
Year to 31 December 2023
Individual Donations
Year to 31 December 2022
Peru Covid Relief Programme
Support Lao Children Fund		 Unrestricted
£
102,969
34,037
137,006
Unrestricted
£
69,990
18,104
88,094
Unrestricted
£
1,253,329
1,253,329
Unrestricted
£
-
-
-		 Restricted
£
-
-
-
Restricted
£
-
-
-
Restricted
£
-
-
Restricted
£
-
-
-		 Total
£
102,969
34,037
137,006
Total
£
69,990
18,104
88,094
Total
£
1,253,329
1,253,329
Total
£
-
-
-

Page 14

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

5. COST OF GENERATING FUNDS

Year to 31 December 2023

Travel & Entertainment
Subscriptions
Bank Charges
Investment Management Fees
Year to 31 December 2022
Travel & Entertainment
Subscriptions
Bank Charges
Investment Management Fees		 Unrestricted
£
3,877
6,290
418
5,412
15,997
Unrestricted
£
1,168
8,421
455
6,197
16,240		 Restricted
£
-
-
-
-
-
Restricted
£
-
-
-
-
-		 Total
£
3,877
6,290
418
5,412
15,997
Total
£
1,168
8,421
455
6,197
16,240

6. CHARITABLE ACTIVITIES

Year to 31 December 2023

Analysis of donations and grants
Climate 2025
Green Alliance
Right to Succeed
Resurgo Trust
BOMA
Proximity Designs
Drive Forward Foundation
University College London
Bridges to Prosperity
Medha
Support Lao Children
Depaul UK
The Gecko Project
University of Leeds
British Red Cross (Libya Flood Appeal)
Global Returns Project
Conservative Environmental Network
Anonymous
Disasters Emergency Committee - Turkey/Syria Earthquake
Two grantees have been anonymised for their protection.
Staff costs (see note 9)
Support costs (see note 7)
Governance Costs
Total Charitable activities		 Unrestricted
£
300,000
325,000
150,000
125,000
101,428
103,503
75,000
73,884
-
60,857
-
100,000
50,000
-
30,000
25,000
-
60,000

30,000
1,609,671
296,555
58,437
18,319
1,982,982		 Restricted
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
£
300,000
325,000
150,000
125,000
101,428
103,503
75,000
73,884
-
60,857
-
100,000
50,000
-
30,000
25,000
-
60,000
30,000
1,609,671
296,555
58,437
18,319
1,982,982

Page 15

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

6. CHARITABLE ACTIVITIES (CONTINUED)

Year to 31 December 2022

Analysis of donations and grants
Climate 2025
Green Alliance
Right to Succeed
Resurgo Trust
BOMA
Proximity Designs
Drive Forward Foundation
University College London
Bridges to Prosperity
Medha
Support Lao Children
Depaul UK
The Gecko Project
University of Leeds
Anonymous
Conservative Environmental Network
Anonymous
Disasters Emergency Committee - Pakistan Floods
Staff costs (see note 9)
Support costs (see note 7)
Governance Costs
Total Charitable activities		 Unrestricted
£
300,000
250,000
150,000
100,000
93,165
93,020
75,000
71,331
67,385
55,812
55,541
50,000
50,000
36,196
30,000
30,000
30,000
30,000
1,567,450
233,736
41,760
6,799
1,849,745		 Restricted
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
£
300,000
250,000
150,000
100,000
93,165
93,020
75,000
71,331
67,385
55,812
55,541
50,000
50,000
36,196
30,000
30,000
30,000
30,000
1,567,450
233,736
41,760
6,799
1,849,745

7. ALLOCATION OF SUPPORT COSTS

Year to 31 December 2023

Office Use re-charge
Computer Support
Depreciation
Postage
Supplies
Insurance
Couriers
Legal and professional fees
Telephone
Governance Costs		 Generating
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-		 Charitable
Actvities
£
33,689
754
2,530
2
944
1,664
-
18,710
144
58,437
18,319
76,756		 Total
£
33,689
754
2,530
2
944
1,664
-
18,710
144
58,437
18,319
76,756

Page 16

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

7. ALLOCATION OF SUPPORT COSTS (CONTINUED)

Year to 31 December 2022

Office Use re-charge
Computer Support
Depreciation
Postage
Supplies
Insurance
Couriers
Legal and professional fees
Telephone
Governance Costs
8. ANALYSIS OF GOVERNANCE COSTS
Accountancy
Auditor's fee
Independent Examiner's fee
Legal and professional fees		 Generating
Funds
£
-
-
-
-
-
-
-
-
-
-
-
-		 Charitable
Actvities
£
23,751
5,828
1,608
10
867
1,236
19
8,287
154
41,760
6,799
48,559
2023
£
17,160
426
733
18,319		 Total
£
23,751
5,828
1,608
10
867
1,236
19
8,287
154
41,760
6,799
48,559
2022
£
-
6,053
746
6,799

9. STAFF COSTS

Gross salaries
Social security costs
Private Health Insurance
Pension Contributions (Scottish Widows Workplace Pension Scheme)		 2023
£
250,305
25,399
9,440
11,411
296,555		 2022
£
196,626
19,627
7,995
9,489
233,736

The average number of staff employed by the Foundation for the year was 4.32 (2022: 3.73). During the year, two employees received remuneration greater than £70,000 and lower than £80,000 (2022: two employees received remuneration greater than £60,000 and lower than £70,000).

Key management personnel (eg Trustees, Chief Exec etc) include 2 Trustees. The total employee benefits of the charity's key management personnel was £0 (2022:£0)

Page 17

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

10. FIXED ASSETS Tangible Assets

Cost or market value
At 1 January 2023
Additions
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 £
13,060
2,798
15,858
8,965
2,530
11,494
4,364
4,095

11.1. FIXED ASSET INVESTMENTS

Listed Investments
Balance brought forward
Acquisitions at cost
Less: disposal proceeds
Net Realised (Losses)/gains on disposals
Net Unrealised (loss)/gain on revaluation
Market Value Carried Forward
Historical Cost
Geographical Analysis
United Kingdom investments
Overseas investments		 Quoted
Investments
2023
£
4,886,975
422,791
(2,602,710)
128,001
602,010
3,437,067
1,489,999
708,663
2,728,403
3,437,067		 Quoted
Investments
2022
£
5,376,695
16,744
-
-
(506,464)
4,886,975
2,689,686
2,249,615
2,637,360
4,886,975

Page 18

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

11.1. FIXED ASSET INVESTMENTS (continued)

Fair value determination

The fair value of financial instruments has been estimated using the following fair value hierarchy:

Level 1 The unadjusted quoted price in an active market for identical assets or liabilities that the entity can assess at the measurement date. Level 2 Inputs other than quoted prices included in level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly. Level 3 Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

The Scheme’s investment assets have been fair valued using the above hierarchy categories as follows:

As at 31 December 2023
Managed funds
Programme related investments
Total
As at 31 December 2022
Managed funds
Programme related investments
Total		 Level 1
3,437,067
-
3,437,067
Level 1
4,886,975
-
4,886,975		 Level 2
-
-
-
Level 2
-
-
-		 Level 3
-
64,740
64,740
Level 3
-
65,082
65,082		 Total
3,437,067
64,740
3,501,807
Total
4,886,975
65,082
4,952,057

11.2. FIXED ASSET PROGRAMME RELATED INVESTMENTS

Balance brought forward
Capital Repayments
FX Revaluation		 Programme related
Investments
2023
£
65,082
-
(342)		 Total
2022
£
69,563
(7,219)
2,738
Market Value Carried Forward 64,740 65,082
Programme Related Investments
Talent Fund Peru
FutureShapers(Sheffield)*
Ingabo Plant Health
Rumbuka Seeds		 2023
Total
13,381
325
41,362
9,672		 2022
Total
13,723
325
41,362
9,672
64,740 65,082

Talent Fund Peru provides flexible student loans to university students in Peru. It continued to repay MF post year-end, in 2024. The investment is denominated in PEN, a currency that has been subject to significant depreciation. FutureShapers is a past investment into a Social Impact Bond led by youth charity Sheffield Futures to improve the educational attainment of at-risk secondary school pupils. The project is now complete but MF retains £325 in equity until the dormant holding company can be liquidated in 2024.

Ingabo Plant Health and Rumbuka Seeds are social businesses operating in Rwanda to serve smallholder farmers with agricultural inputs (e.g. seeds and fertilizer). MF holds equity positions.

12. ANALYSIS OF ASSETS

Debtors falling due within one year

Accrued Interest
Prepayments		 2023
Total
£
6,805
9,002
15,807		 2022
Total
£
-
8,321
8,321

Page 19

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

13. ANALYSIS OF LIABILITIES Creditors falling due within one year

Accruals
Other creditors
14. SHARE CAPITAL
Ordinary shares of £1 each at 1 January and 31
15. MOVEMENT OF RESERVES
1st January
2023
£
Unrestricted Funds:
Unrestricted general funds
5,921,199
Total Funds
5,921,199		 December 2023
Incoming
Outgoing
Resources
Resources
£
£
1,390,335
(1,998,979)
1,390,335
(1,998,979)		 2023
Total
£
18,249
12,511
30,760
Gains &
(Losses)
£
713,553
713,553		 2022
Total
£
7,678
7,317
14,995
Authorised
£
1
Fund
Transfers
£
-
-		 Allocated,
Called Up
and Fully
Paid
£
1
31st December
2023
£
6,026,109
6,026,109

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Year to 31 December 2023
Fixed assets and investments
Current assets
Creditors		 Unrestricted
Funds
£
3,506,171
2,550,699
(30,760)
6,026,110		 Restricted
Funds
£
-
-
-
-		 Total
2023
£
3,506,171
2,550,699
(30,760)
6,026,110

Page 20

Montpelier Foundation Limited

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31st December 2023

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)

Year to 31 December 2022

Fixed assets and investments
Current assets
Creditors		 Unrestricted
Funds
£
4,956,152
980,043
(14,995)
5,921,200		 Restricted
Funds
£
-
-
-
-		 Total
2020
£
4,956,152
980,043
(14,995)
5,921,200

17. COMMITMENTS

As of 31 December 2023, the Foundation has potential commitments to Green Alliance, Drive Forward Foundation, Resurgo Trust and University College London totalling £600,507. The Foundation has full discretion over these commitments.

18. POST BALANCE SHEET EVENTS

As of 31 May 2024, the Foundation made an additional commitment to Proximity Designs of $125,000 per year for two years; one such instalment was disbursed in March 2024 (the other one is due in March 2025). The Foundation also committed to an additional £100,000 for DePaul UK in 2024, and to an additional £250,000 per year for two years for Right to Succeed in 2024 and 2025. The Small Grants Fund was approved for 2025 at a level of maximum £50,000 per grantee for a maximum total of £250,000 (2024: maximum £50,000 per grantee for a maximum total of £200,000).

19. RELATED PARTY TRANSACTIONS

The donation of over £1.25M received in 2023 comes from a relative of Nicholas Cournoyer, a Director of the Foundation.

Directors' Interests:

Nicholas Cournoyer, a Director of the Foundation, is also a Director of Hampshire Foundation Incorporated, a charity registered in the USA. Agathe Bourgon, a senior member of staff, is also a Director of Hampshire Foundation Incorporated.

The registers of interests for each Director were updated in April 2023. Additionally, nothing of concern was found in the disqualification searches which were carried out in May 2024 on the Directors and on David Rooney, who has sole online access to the Foundation's C. Hoare & Co. bank account and who can make payments for invoices and payroll by himself. David Rooney is also the sole shareholder of Montpelier Foundation and prepares the Foundation's financial statements.

Page 21