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2022-12-31-accounts

The Garcia Family Foundation (UK) Limited

Annual Report and Financial Statements

31 December 2022

Company Registration Number 07465181 (England and Wales)

Charity Registration Number 1140841

Contents

Reports
Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report 10
Financial statements
Statement of financial activities 14
Balance sheet 15
Principal accounting policies 16
Notes to the financial statements 19

The Garcia Family Foundation (UK) Limited

Reference and administrative information

Trustees Mrs Jill R. Garcia
Dr John L. Garcia
Mr James W. Leng
Company Secretary Temple Secretarial Limited
Principal office Withers LLP
20 Old Bailey
London
EC4M 7AN
Telephone +44 (0)207 597 6000
Charity registration number 1140841
Company registration number 07465181
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers HSBC Bank plc
2ndFloor
King Street
London
WC2E 8JF
Solicitors Withers LLP
20 Old Bailey
London
EC4M 7AN

The Garcia Family Foundation (UK) Limited 1

Trustees' report 31 December 2022

The trustees present their statutory report together with the financial statements of the Garcia Family Foundation (UK) Limited for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out on page 16 to 18 therein and comply with the charitable company’s memorandum and articles of association, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), effective from accounting periods commencing 1 January 2015 or later.

GOVERNANCE, STRUCTURE AND MANAGEMENT

Governance

The Garcia Family Foundation (UK) Limited (“the Foundation”) was incorporated on 9 December 2010 as a private company limited by shares under company registration number 07465181 (England and Wales). On 21 March 2011, the Foundation registered on the Central Register of Charities under registration number 1140841. The Foundation has been established as part of a group structure. Its sole share is owned by the Garcia Family Foundation (US), a US tax-exempt charitable organisation, and it was founded to carry out the work of that entity in the UK.

The Trustees

Trustees who served during the year and up to the date of this report were:

Recruitment and appointment details

Given the structure of the Foundation, it being a family charity, a recruitment process was not necessary. The trustees consult professional advisors to supplement their own skill sets, as required.

Induction and trustee training

Each of the trustees received copies of the governing documents and trustee policies. This included guidance on operational matters, including grant making, and on the responsibilities of charity trustees, as set out in Charity Commission guidance.

Key Management personnel

The key management personnel are considered to be the trustees, who are not remunerated for their roles.

Fundraising statement

The charities do not actively solicit donations and therefore are not registered with the Fundraising Regulator or subscribe to any fundraising codes of practice. When donations from individuals are received, the charities aim to protect personal data and never sell data or swap data with other organisations. During 2022, the charities received no complaints about fundraising activities.

The Garcia Family Foundation (UK) Limited 2

Trustees' report 31 December 2022

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Statement of trustees’ responsibilities

The trustees (who are also directors of the charitable company for the purposes of company law) are responsible for preparing the trustees’ report and 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 period, which give a true and fair view of the state of affairs of the Foundation and of the income and expenditure of the Foundation for that period.

In preparing these financial statements, the trustees are required to:

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

Each of the trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the Foundation. The trustees have held a number of meetings, discussions and reviews by conference call and e-mail throughout the year to review developments with regard to the Foundation, its grant-giving activities and to make any important decisions.

The Garcia Family Foundation (UK) Limited 3

Trustees' report 31 December 2022

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Structure and management reporting (continued)

When necessary, the trustees seek advice and support from the Foundation’s professional advisors including investment managers, bankers and auditor. The day-to-day management of the charity’s activities and implementation of policies is delegated to the Foundation Secretary, Ms Jade H Light-Häusermann.

Risk management

The trustees discuss any risks to which the charity may be exposed during the course of their meetings; in particular those relating to its investments and its finances. The trustees resolved that its asset allocation as outlined in the investment policy shall remain unchanged. Accordingly, the funds of the Foundation remain in US dollars and sterling. The activities of the Foundation are not such that it is exposed to any other significant risks, and the trustees intend to carry out further risk assessments in due course.

ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES

Charitable objectives and activities

The Foundation’s fund and income are to be applied towards the benefit of such charitable purposes, institutions or foundations as the trustees in their absolute and uncontrolled discretion determine.

The Foundation makes awards of grants to a range of charities and charitable activities in accordance with the Foundation’s grant-making policy as set out below.

Grant-making policy

The trustees meet regularly to decide on the distribution of income and funds held by the charity. The Foundation is a general grant-making charity and makes grants to charitable organisations or charitable projects that are connected with the advancement of: education, the arts, and/or health (including the promotion of education in medicine and the medical sciences).

As a grant-funder, the Foundation’s activities will provide public benefit to the individuals and communities who are beneficiaries of its funded projects. The trustees have complied with their duty to have due regard to the guidance of public benefit published by the Charity Commission.

The Garcia Family Foundation (UK) Limited 4

Trustees' report 31 December 2022

ACHIEVEMENTS AND PERFORMANCE

In 2022, grants were paid to the following charitable organisations:

ACHIEVEMENTS AND PERFORMANCE
In 2022, grants were paid to the following charitable organisations:
Grant
£
The British Columbia Society for the Prevention of Cruelty to Animals
Center for Curatorial Studies, Bard College
Courtauld Institute of Art
Cornubian Arts & Science Trust
The Difference
Friends of New Curators
Gallery Climate Coalition
Painswick Rococo Garden Trust
Shobana Jeyasingh Dance
Studio Voltaire
Swiss Institute		 8,526
77,506
102,500
50,000
50,000
77,506
10,000
32,682
25,000
15,000
77,506
526,226

The Courtauld Institute of Art is an internationally renowned centre for the teaching and research of art history and its faculty is the largest community of art historians and conservators in the U.K. It looks after one of the greatest art collections in the U.K., which is held in trust by the Samuel Courtauld Trust SCT, a registered charity. The Courtauld works to increase understanding of the role played by art throughout history, in all societies and across all geographies. The two donations made this year were pivotal to securing further donations through matching pledges of thirty thousand pounds from the Courtauld Fund’s leaders and one hundred thousand pounds from the Governing Board of the SCT. The latter donations will fund a two-year acquisition programme of modern and contemporary works of art on paper.

Swiss Institute (SI) is an independent non-profit contemporary art institution dedicated to promoting forward-thinking and experimental art. It is committed to the highest standards of curatorial and educational excellence and serves as a platform for emerging artists. It also fosters appreciation for under-recognised positions. SI is open to the public free-of-charge and seeks to explore how a Swiss context can be the starting point for international conversations in the fields of visual and performing arts, design, and architecture. It provides artist-led educational programmes for children of all ages and their caregivers, and older adults. Since its move to New York’s East Village in 2018, SI has collaborated with neighbourhood arts and civic-centred organisations to offer art-focused programs to a wide audience. This donation was the first of a new three-year commitment of $100,000 per year to continue supporting SI’s exhibition programme, community work and education.

The Garcia Family Foundation (UK) Limited 5

Trustees' report 31 December 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

The Center for Curatorial Studies (CCS) is an innovative institution that combines an academic program in curatorial studies with a public exhibition program dedicated to contemporary art. It is based at Bard College in New York’s Hudson River Valley, alongside the Hessel Museum of Art. CCS Bard’s M.A. curatorial studies programme is unique and CCS provides unmatched facilities: an extensive collection, one of the United States’ finest contemporary art libraries, an archive, galleries, and a faculty that is unparalleled among similar programs. The single greatest obstacle to an education is financial and CCS Bard provides generous scholarship and fellowship support to its students on the basis of financial need and academic merit. This donation was the first of a three-year pledge of $100,000 per year to support educational scholarships at the CCS.

The donation to the British Columbia Society for the Prevention of Cruelty to Animals (BS SPCA) sponsored a table at their major annual fundraising event organised by a related charity Offleashed. In addition to animal rescue and wild animal rehabilitation, BC SPCA works closely with communities to offer much-needed support for low-income pet owners. Their programmes include pet food banks, low-cost veterinary clinics and boarding for animals, emergency assistance, and educational camps for children.

The Gallery Climate Coalition is a charity founded by a voluntary group of London-based gallerists and professionals working in the commercial arts sector as an attempt to develop a meaningful and industry-specific response to the growing climate crisis. Its members are committed to reducing carbon emissions, including changing their operations to reduce their carbon footprints by fifty percent over the next ten years; reducing waste; compensating emissions by donating to companies committed to systemic change; and working towards mitigating embedded climate injustice.

Painswick Rococo Garden is the only surviving Rococo garden in the U.K. and listed on the Historic England Register of Parks and Gardens of Special Historic Interest. The Trust was established in 1988 to preserve, maintain and improve the garden for public benefit. The garden provides volunteering opportunities for over sixty local people and runs education programmes for young people and families, including a forest school and art workshops. Painswick Rococo Garden preserves heritage, protects habitats and provides a place to connect with nature. The Trust had a sixty-thousand-pound fundraising target to move to a new location on site, create a new welcome centre, and ensure it remains operational. It raised nearly half the target through Crowdfunder and donations from local supporters and this donation provided the remaining balance.

The Garcia Family Foundation (UK) Limited 6

Trustees' report 31 December 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Studio Voltaire is one of the U.K.’s leading not-for-profit arts and education organisations and part of Arts Council England’s National Portfolio. It champions emerging and underrepresented artists. Studio Voltaire commissions and produces exhibitions, collaborative projects, artist development programmes, live events and off-site projects. Working in partnership with schools, colleges and universities, as well as local groups and community organisations, it creates a year-round artist-led programme that is free to attend and suitable for people of all ages. Studio Voltaire provides an alternative site for intergenerational learning, helping to overcome barriers that some people experience in formal education settings and supporting those who might have limited access to creative opportunities. It continues to provide much–needed affordable and accessible studios for a diverse range of individual and collective artistic practices. This donation supported its work in the local and wider community, including schools.

Training to become a curator is expensive and entering this profession can be difficult. New Curators is a paid twelve-month curatorial training programme located at the South London Gallery for individuals from lower socio-economic backgrounds, starting in September 2023. By offering intensive twelve-month curatorial training and a London living wage to twelve people from lower socio-economic backgrounds globally, New Curators will help diversify the curatorial profession. This programme aims to help make the art world more accessible and equitable in order to make it richer and more relevant. As one of New Curators’ anchor donors, this donation is the first of a two-year grant.

The Difference’s mission is to improve the outcomes of the most vulnerable children by elevating the expertise and status of their educators. Its two-year Difference Leaders Programme trains existing teachers, placing them in an Alternative Provision school for two years with extra training to support the most-challenged children. It also offers an Inclusive Leadership course at mainstream schools to improve inclusion. The initial viability pilot demonstrated it is possible to train and support the progression of outstanding school leaders focused on inclusion practice. It is now working on scaling and deepening its impact; it added a shorter, less intense senior leader programme to increase scale. This was the third year of three-year co-funding with the Bridges Impact Foundation.

The Cornubian Arts and Science Trust (CAST) is dedicated to enriching cultural life in Cornwall and the South West and encouraging national and international connection and exchange. Its public programme serves an area of Cornwall that previously had little access to innovative contemporary arts activity. CAST’s objectives are to educate and promote the Arts and Sciences for public benefit and to further the development of public appreciation of the Arts and Sciences. CAST’s learning activities range from opportunities for young people to engage directly with artists to ‘Art Lab’ sessions for primary schools, and free holiday workshops. It also provides an ambitious programme of creative learning for local primary schools both on-site and through outdoor workshops. Activities are designed to develop creative learning and engagement through observation, drawing and making. CAST’s learning specialist closely works with each school to provide links to its current curriculum and offers training sessions to teachers on cross-disciplinary creative learning. This year’s donation was the last of a three-year commitment to support learning programmes.

The Garcia Family Foundation (UK) Limited 7

Trustees' report 31 December 2022

ACHIEVEMENTS AND PERFORMANCE (continued)

Throughout the year Shobana Jeyasingh Dance (SJD) offered long-term, high-quality dance and creative projects to support participants whose lives have been adversely affected by lockdown. It delivered a collaborative Creative Learning programme around Clorinda Agonistes, a new dance opera which toured nationally in the last half of 2022. The tour was a huge success and seen by over three thousand four hundred people. This second year of a two-year grant continued support for SJD’s Creative Learning Programmes, which involved ten schools and five in-depth community projects. The community work centred on young carers with limited access to the arts, adults who had experienced homelessness, and senior citizen dancers. SJD also continued to nurture young dancers through training and providing full-time work and dance experience to an apprentice for six months.

FINANCIAL REVIEW

Results for the year

During the year ended 31 December 2022 total income amounted to £288,591 (2021 – £652,448) which arose from donations, foreign exchange gains and interest earned on deposit accounts.

Grants were made to eleven charitable organisations totalling £526,226 (2021 –£188,646 to six charitable organisations). The net expenditure for the year amounted to £651,563 (2021 – net income £442,875) after accounting for exchange gains of £288,591 (2021 – exchange gains of £27,448) and governance costs of £8,254 (2021 – £20,927). Thus, the total shareholder’s funds of the Foundation at 31 December 2022 amounted to £4,342,595 (2021 – £4,994,158).

Reserves and investment policy

The Foundation has been established with initial donations from Dr John Garcia, who has expressed a desire to establish the charity as an endowed Foundation on an enduring basis. It is the trustees’ intention to continue to meet grants from the income and capital of the Foundation for the foreseeable future, working with Dr Garcia and his family to formulate longer term spending plans.

As this longer-term strategy has to be fully developed, the trustees have not sought to invest in assets, which would expose the Foundation’s funds to market risk, and accordingly all funds continue to be held in bank deposits. In due course, the trustees will formulate an appropriate investment strategy for its funds that takes into account its long-term grants and reserve policy; until then the funds will continue to be held on deposit in US dollars and sterling.

The Garcia Family Foundation (UK) Limited 8

Trustees' report 31 December 2022

FUTURE PLANS

The trustees do not anticipate any significant changes to the Foundation or its activities over the foreseeable future. Its areas of focus shall continue to be education, health, and art-related topics for the benefit of society.

Signed on behalf of the trustees:

Dr John L. Garcia, Trustee

Approved on: 29 September 2023

The Garcia Family Foundation (UK) Limited 9

Independent auditor’s report Year ended 31 December 2022

Independent auditor’s report to the members of The Garcia Family Foundation (UK) Limited

Opinion

We have audited the financial statements of The Garcia Family Foundation (UK) Limited (the ‘charitable company’) for the year ended 2022 which comprise the statement of financial activities, the balance sheet, the principal accounting policies and the notes to the financial statements. 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:

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.

The Garcia Family Foundation (UK) Limited 10

Independent auditor’s report Year ended 31 December 2022

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 and financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

The Garcia Family Foundation (UK) Limited 11

Independent auditor’s report Year ended 31 December 2022

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The Garcia Family Foundation (UK) Limited 12

Independent auditor’s report Year ended 31 December 2022

Auditor’s responsibilities for the audit of the financial statements (continued) There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.

Use of our report

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

29 September 2023

Edward Finch (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

The Garcia Family Foundation (UK) Limited 13

Statement of financial activities Year ended 31 December 2022

Notes Year ended
31
December
2022
£		 Year ended
31
December
2021
£
Income and expenditure
Income from:
Donations
Gift Aid
Foreign exchange gain on translation
Total income
Expenditure on:
Charitable activities
. Grants payable
1
. Governance
Total expenditure
Net (expenditure)/income and net movement in funds for
the period
9
Balances brought forward at 1 January 2022
Balances carried forward at 31 December 2022		 —
—
288,591		 500,000
125,000
27,448
288,591 652,448
931,900
8,254		 188,646
20,927
940,154 209,573
(651,563)
4,994,157		 442,875
4,551,282
4,342,594 4,994,157

All the Foundation’s activities derived from continuing operations during the above two financial years.

All recognised gains and losses are included in the above statement of financial activities.

The notes on pages 16 to 21 form part of these financial statements.

All funds are unrestricted.

The Garcia Family Foundation (UK) Limited 14

Balance sheet 31 December 2022

2022 2021
Notes £ £
Current assets
Debtors 5 274,219 274,219
Cash at bank 4,698,140 4,858,310
4,972,359 5,132,529
Creditors: amounts falling due
within one year 6 (467,496) (138,371)
Net current assets 4,504,863 4,994,158
Creditors: amounts falling due after one year (162,268) —
Total net assets 4,342,595 4,994,158
The funds of the charity:
Capital and reserves
. Called up share capital 8 1 1
. Unrestricted general fund 4,342,594 4,994,157
Shareholder’s funds 9 4,342,595 4,994,158

Approved and authorised for issue by the trustees and signed on their behalf by:

Dr John L. Garcia, Trustee

Approved on: 29 September 2023

Garcia Family Foundation (UK) Limited

Company registration number: 07465181 (England and Wales)

The Garcia Family Foundation (UK) Limited 15

Principal accounting policies 31 December 2022

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 31 December 2022.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) Section 1A issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts may require the trustees to make significant judgements and estimates. In the trustees’ opinion, no such judgements or estimates were necessary in preparing these financial statements.

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 December 2023, the most significant areas that can affect the carrying value of the assets held by the charity is the interest earned on cash balances held and the movements in exchange rates between US Dollar and Sterling.

Incoming resources

All income is credited to the statement of financial activities on a receivable basis.

The Garcia Family Foundation (UK) Limited 16

Principal accounting policies 31 December 2022

Resources expended and the basis of apportioning costs

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT that cannot be recovered.

Resources expended comprise the following:

Governance costs, which include audit fees, are the costs associated with the governance arrangements of the charitable company and are included within support costs.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

The Garcia Family Foundation (UK) Limited 17

Principal accounting policies 31 December 2022

Fund accounting

The unrestricted general fund represents monies that are freely available for application towards achieving any charitable purpose that falls within the Foundation’s charitable objects.

Foreign currencies

Assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the average rate of exchange for the financial period. Foreign exchange gains or losses are recognised in the statement of financial activities in arriving at the net movement in funds.

The Garcia Family Foundation (UK) Limited 18

Notes to the financial statements 31 December 2022

1 Charitable activities

Charitable activities
Year
ended 31
December
2022
£		 Year
ended 31
December
2021
£
Grants payable
Recipients
The British Columbia Society for the Prevention of Cruelty to Animals
Center for Curatorial Studies, Bard College
Courtauld Institute of Art
Cornubian Arts & Science Trust
The Difference
Friends of New Curators
Gallery Climate Coalition
Painswick Rococo Garden Trust
Royal Academy of Arts
Shobana Jeyasingh Dance
Studio Voltaire
Swiss Institute
Grants approved in the year
Grant support costs
Governance costs (100% allocation)
Total		 8,526
239,776
102,500
50,000
50,000
158,641
10,000
32,682
—
25,000
15,000
239,775		 —
—
80,000
—
—
—
—
—
15,000
50,000
—
43,646
931,900 188,646
8,254 20,927
940,154 209,573

2 Governance costs

Governance costs
Year
ended 31
December
2022
£		 Year
ended 31
December
2021
£
Audit fee
Other fees paid to auditor
. Tax compliance for UK entity
. Tax compliance for US entity
Legal and compliance
Bank charges		 4,200
914
1,890
1,133
117		 3,900
5,607
8,045
1,198
2,177
8,254 20,927

The Garcia Family Foundation (UK) Limited 19

Notes to the financial statements 31 December 2022

3 Trustees’ remuneration

The Foundation has no employees.

No trustees received any remuneration. No expenses were reimbursed to, or paid on behalf of, any trustees. The key management personnel of the charity are the trustees.

4 Taxation

The Garcia Family Foundation (UK) Limited is a registered charity and therefore is not liable to income tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

5 Debtors

Debtors
Total
2022
£		 Total
2021
£
Donations receivable
Gift Aid receivable		 —
274,219		 —
274,219
274,219 274,219

6 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Total
2022
£		 Total
2021
£
Grants payable
Trade creditors
Accrued expenditure		 454,436
6,690
6,370		 125,000
—
13,371
467,496 138,371

7 Creditors: amounts falling due after one year

Creditors: amounts falling due after one year
Total
2022
£		 Total
2021
£
Grants payable 162,269 —
162,269 —
Reconciliation ofgrantspayable Year
ended 31
December
2022
£		 Year
ended 31
December
2021
£
Commitments at 1 January 2022
Grants approved in the year
Grants paid in the year
Commitments at 31 December 2022		 125,000
931,900
**(440,195) **		 200,000
188,646
(263,646)
616,705 125,000

The Garcia Family Foundation (UK) Limited 20

Notes to the financial statements 31 December 2022

8 Called up share capital

Called up share capital
Authorised
2022
£		 Allotted,
called up
and fully
paid
2022
£		 Authorised
2021
£		 Allotted,
called up
and fully
paid
2021
£
Ordinaryshares of £1 each 1 1 1 1

9 Reconciliation of movements in shareholder’s funds

Reconciliation of movements in shareholder’s funds
Total
2022
£		 Total
2021
£
Opening shareholder’s funds at 1 January 2022
Net (expenditure)/income for the period
Closingshareholder’s funds at 31 December 2022		 4,994,158
**(651,563) **		 4,551,283
442,875
4,342,595 4,994,158

10 Related party transactions

Dr John Garcia is a member of the governing board of the Courtauld Institute of Art. During the year, grants totalling £102,500 (2021 – £80,000) were approved for payment to the Institute.

Dr John Garcia is a trustee of the Swiss Institute of Contemporary Arts. During the year, grants totalling £239,776 (2021 – £43,646) were approved for payment to the Institute. At the balance sheet date grants were owing of £162,269.

Dr John Garcia is a trustee of the Center for Curatorial Studies (CCS Bard). During the year, grants totalling £239,775 (2021 - £nil) were approved for payment to the Center. At the balance sheet date grants were owing of £162,269.

11 Ultimate holding company and control

The charitable company is wholly owned by the Garcia Family Foundation (US), a US taxexempt charitable organisation, and was founded to carry out the work of that entity in the UK.

The activities of the company are controlled by the trustees of the company.

There were no transactions with the holding company during this period.

The Garcia Family Foundation (UK) Limited 21