Company number: 07601963 Charity number: 1144124
The PwC Foundation
(a company limited by guarantee)
Trustees’ report and financial statements
for the financial year ended 30 June 2023
The PwC Foundation
| Contents Page |
|---|
| Trustees’ report……………………………………………………………………………………………………………………………………………………………1 |
| Independent auditor’s report………………………………………………………………………………………………………………………………………..5 |
| Statement of financial activities…………………………………………………………………………………………………………………………………….8 |
| Balance sheet………………………………………………………………………………………………………………………………………………………………9 |
| Statement of cash flows………………………………………………………………………………………………………………………………………………10 |
| Notes to the financial statements………………………………………………………………………………………………………………………………… 11 |
The PwC Foundation
Trustees’ report for the financial year ended 30 June 2023
The trustees, who are also directors of The PwC Foundation (‘the Foundation’), present their report and the audited financial statements for the financial year ended 30 June 2023, which have been prepared 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 (‘FRS 102’), and the Charities Act 2011.
Reference and administrative information
The Foundation is registered with the Charity Commission, under the charity number 1144124, and with Companies House, under the company number 07601963.
Registered and principal office
1 Embankment Place, London, WC2N 6RH.
Trustees
The following individuals have held office both as trustees and directors throughout the financial year and up to the date of signing these financial statements:
DR Adair EHL Cox KJD Ellis (Chair) Z Hussain KS Talvitie-Brown DR Walters.
Auditors
Crowe U.K. LLP, London, EC4M 7JW.
Bankers
National Westminster Bank PLC, London, EC2R 8PA.
Solicitors
PricewaterhouseCoopers LLP, London, WC2N 6RH.
Structure, governance and management
Organisation structure
The Foundation is a company limited by guarantee and governed by memorandum and articles incorporated on 12 April 2011, as amended by special resolutions on 18 September 2011 and 24 January 2014. The Foundation was registered with the Charity Commission on 4 October 2011.
The Foundation comprises a board of trustees and a Steering Committee, whose members are all current or prior members or employees of the PricewaterhouseCoopers LLP group (‘the Group’). While the Foundation bears the PwC trading name, it is independent of the Group and the trustees and Steering Committee members perform their duties under this guiding principle.
Governance
Prospective trustees must first be appointed directors of the Foundation through ordinary resolution of the existing directors. On appointment, directors become trustees of the Foundation.
Newly appointed trustees are given an induction to their role, including guidance on their responsibilities as trustees and the objectives of the Foundation. In addition, trustees are provided with a copy of the Foundation’s Memorandum and Articles of Association, information on the Foundation’s history and structure and its decision making processes, policies and future plans.
1
The PwC Foundation
Trustees’ report (continued)
Management
Operational management of the Foundation is undertaken by the Group’s Community Engagement team, under delegated powers from the trustees. The Community Engagement team reports periodically to the Steering Committee and the board of trustees. The members of the Steering Committee are nominated by open application from employees of the Group and are selected based on an evaluation of skills and experience by a committee. They are then appointed by the Chair. Members of the Steering Committee hold office for a minimum of one year and are responsible for strategy recommendations to the trustees, as well as sharing the Foundation strategy with key stakeholders.
Every three to four years, applications are taken to be national fundraising partners of the Foundation. The Steering Committee and board of trustees independently review the applications, ensuring that they meet the charitable objectives of the Foundation and address its key areas of focus. A shortlist is formulated and then put to a vote by the PwC UK members and staff, with the next vote taking place in June 2024. The selected charities are then approved by the board of trustees.
Risk management
The trustees have reviewed the major risks to the Foundation and have established systems to mitigate those risks.
The key area of risk is the Foundation’s reliance on other parties to take programmes forward and ensure developmentally sound and financially viable outcomes. This risk is managed through a robust selection process for recipients of donations. The trustees manage liquidity risk by approving the level of donations to be awarded taking into consideration available funding. The trustees consider that there is minimal credit risk and minimal exposure to foreign currency risk, owing to the nature of the Foundation’s activities.
Strategy and objectives for the public benefit
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit in the Charities Act 2011 when reviewing the charity’s aims and objectives and in planning activities. In particular, the trustees have considered whether donations being given by the Foundation are for the public benefit.
The objectives of the Foundation are to promote sustainable development, social inclusion and environmental awareness for the public benefit, and the furtherance of such other purposes that are exclusively charitable under the laws of England and Wales as the trustees, in their discretion, determine.
The Foundation provides matched funding in certain circumstances to the Group’s staff who involve themselves in the wider charitable sector. The funding does not extend to political organisations, lobby groups, animal rights groups and religious bodies.
The Foundation’s strategy is congruent with the Group’s purpose to build trust in society and solve important problems and the Foundation’s strategy reflects this purpose by enabling PwC people to come together and have a bigger collective impact than they could on their own. The strategy will continue to evolve as the Foundation responds to external events such as the wider geopolitical environment and inflationary impacts on the cost of living.
Grant making policy
The charitable objectives of the Foundation are to work with selected charities and social enterprises to promote sustainable development, social inclusion and environmental awareness for the public benefit, encompassing social mobility, education, healthcare and wellbeing, and the environment. When the Foundation is approached by charities or social enterprises for funding, a review and selection process is undertaken where proposals meet the Foundation’s charitable objectives and are in relation to programme delivery. The review process is undertaken by the Group’s community engagement team and board of trustees. All donations made are unconditional.
Donations are also made, subject to certain criteria, through PwC’s matched giving programme and additionally to voluntary, community and social enterprises.
2
The PwC Foundation
Trustees’ report (continued)
Financial review
The Foundation’s objectives remain consistent and as originally envisaged, namely to work with selected charities and social enterprises to promote sustainable development, social inclusion and environmental awareness for the public benefit. The trustees consider carefully the many charities and enterprises that benefit from the various grants and donations that are awarded. As can be seen in these financial statements, 582 such donations were made during the financial year ended 30 June 2023 (2022: 564). The principal beneficiaries of these donations were Hospice UK, Crisis UK, School for Social Entrepreneurs, The British Red Cross Society, RefuAid, Beyond Food Foundation and The Social Mobility Foundation. Donations made to all beneficiaries are discretionary with the underlying objective being to make use of incoming funds as expeditiously as possible whilst keeping a reasonable cash balance in reserve.
During the financial year ended 30 June 2023, the Foundation received donations of £2,543,348 (2022: £2,406,619). Of this total, £769,834 (2022: £1,090,511) was restricted in that donors made specific requests on the ultimate use of their donations. All donation income, whether restricted or not, was applied to furthering the objectives of the Foundation. The Foundation made donations totalling £2,904,150 (2022: £2,576,395) during the financial year and incurred support costs of £34,082 (2022: £29,809). It should be noted that donations from the general public are not directly encouraged by the Foundation. The donations made were in support of:
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social inclusion through social mobility – £1,147,867 (2022: £1,173,837)
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social inclusion through education – £407,983 (2022: £164,886)
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healthcare and wellbeing – £459,616 (2022: £384,290)
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environmental and other charitable activities – £703,992 (2022: £729,714)
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the PwC matched funding programme – £184,692 (2022: £123,668)
The Foundation’s national charity fundraising partnerships with Crisis UK and Hospice UK began on 1 July 2020. During the financial year ended 30 June 2023, £273,870 (2022: £178,211) was raised for Hospice UK and £237,146 (2022: £171,529) was raised for Crisis UK.
The Foundation has also continued to support Beyond Food Foundation, School for Social Entrepreneurs, Wellbeing of Women, The British Red Cross Society and Tech She Can.
Additional consideration was given to the donations to social mobility initiatives during the financial year ended 30 June 2023, with a focus on the programmes’ charitable purposes. As a result, the Foundation made donations of £357,899 (2022: £157,182) to 34 (2022: 29) recipients of the Colour Brave programme and £81,250 (2022: £121,500) to 8 (2022: 6) recipients of the Social Mobility programme. The Flying Start Bursary programme commenced in the current financial year with donations totalling £240,000 made to five UK universities. The bursary covers four years, therefore donations are expected to increase in future years as new students join the programme each year.
During the financial year ended 30 June 2023, the Group launched three appeals related to Humanitarian relief, with beneficiaries including the British Red Cross and Disaster Emergency Committee. Donations to these appeals exceeded £165,000, and were a mixture of the PwC Foundation and PwC staff donations.
On the basis of their assessment of the Foundation’s financial position, the trustees have a reasonable expectation that the Foundation will be able to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the financial statements.
Reserves policy
The trustees maintain sufficient reserves to meet working capital needs, with remaining funds being made available to distribute in line with the Foundation’s charitable objectives. Consideration is given to maintaining sufficient reserves to minimise the risk of disruption at short notice due to a lack of funds, while at the same time ensuring reserves are not retained where they are not required to continue to fulfil the Foundation’s charitable objectives. The reserves are reviewed regularly.
Restricted funds in respect of the Flying Start Bursary programme of £240,000 were released during the financial year ended 30 June 2023, resulting in a closing reserve of £1,260,000 (2022: £1,500,000). The total restricted funds of £1,500,000 are to be expended over a four year period to October 2025.
The balance of reserves at 30 June 2023 was £2,853,905 (2022: £3,298,789), of which £1,805,592 (2022: £2,204,471) was restricted. The balance of unrestricted reserves at 30 June 2023 was £1,048,313 (2022: £1,094,318). The trustees consider the level of reserves held at 30 June 2023 to be adequate to meet the working capital needs of the Foundation, sufficient to support more than six months’ expenditure.
3
The PwC Foundation
Trustees’ report (continued)
Investment policy
The Foundation retains sufficient unrestricted funds to meet its working capital needs. Most of the Foundation’s funds are to be spent in the short term and, therefore, with the exception of the Flying Start Bursary programme, there are few funds available for long term investment. Funds ready for donation are currently held within current accounts or in the Foundation’s accounts with the Charities Aid Foundation. The Charity does not undertake any public fundraising activities that require compliance with any United Kingdom fundraising standards or regulations. The Foundation has not received any complaints about fundraising activity.
Plans for future periods
The Foundation will continue to encourage giving by its donor pool, primarily members and employees of the Group, and to make donations according to the recommendation and wishes of the donor group, and the trustees. The Steering Committee is consulted periodically for feedback on Foundation initiatives and strategies, and to provide recommendations to the trustees. The Foundation does not undertake material fundraising activities but supports initiatives carried out voluntarily by the donor group.
Statement of trustees’ responsibilities
The trustees, who are also directors of the Foundation for the purposes of company law, are responsible for preparing the trustees’ report and the financial statements in accordance with applicable laws and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, and applicable law (‘United Kingdom Generally Accepted Accounting Practice’). Under company law the trustees must not approve the financial statements unless they are satisfied that they 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 charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently, subject to any changes disclosed and explained in the financial statements;
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state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;
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observe the methods and principles in the Charities Statement of Recommended Practice (‘Charities SORP’); make judgements and estimates that are reasonable and prudent; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for safeguarding the assets of the charitable company and for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and 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.
In so far as each of the trustees is aware:
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there is no relevant audit information of which the charitable company’s auditor is unaware; and
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each of the trustees has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Independent auditor
Crowe U.K. LLP has expressed its willingness to be reappointed.
This report is prepared in accordance with the provisions of part 15 of the Companies Act 2006 relating to companies subject to the small companies regime.
DR Walters Trustee
19 February 2024
4
The PwC Foundation
Independent auditor’s report to the Members of The PwC Foundation
Opinion
We have audited the financial statements of The PwC Foundation (‘the charitable company’) for the financial year ended 30 June 2023, which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies and other explanatory information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 (‘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:
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give a true and fair view of the state of the charitable company’s affairs as at 30 June 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 Financial Reporting Council’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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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 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 our audit:
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the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements.
5
The PwC Foundation
Independent auditor’s report (continued)
Matters on which we are required to report by exception
In 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 directors’ report included within 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:
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adequate and proper accounting records have not been kept;
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the financial statements are not in agreement with the accounting records and returns;
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certain disclosures of trustees' remuneration specified by law are not made;
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the trustees’ report.
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 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:
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations, are set out below.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
6
The PwC Foundation
Independent auditor’s report (continued)
Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102, and the Charities Act 2011. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (‘irregularities’) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located 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.
Ryan Ketteringham (Senior Statutory Auditor)
For and on behalf of Crowe U.K. LLP Statutory Auditor London
19 February 2024
7
The PwC Foundation
Statement of financial activities for the financial year ended 30 June 2023
| **Unrestricted ** | Restricted | **Total ** | Unrestricted | Restricted | Total | ||
|---|---|---|---|---|---|---|---|
| Funds | Funds | 2023 | Funds | Funds | 2022 | ||
| Note | £ | £ | £ | £ | £ | £ | |
| Income from | |||||||
| Donations and legacies | 2 | 1,773,514 | 769,834 | 2,543,348 |
1,316,108 |
1,090,511 | 2,406,619 |
| Total income | 1,773,514 | 769,834 | 2,543,348 |
1,316,108 | 1,090,511 | 2,406,619 | |
| Expenditure on | |||||||
| Charitable activities | 3 | (1,735,437) | (1,168,713) | (2,904,150) | (1,415,166) | (1,161,229) | (2,576,395) |
| Donated services | 4 | (50,000) | - | (50,000) |
(46,250) | - | (46,250) |
| Bank charges and fees | 3 | (34,082) | - | (34,082) |
(27,113) | (2,696) | (29,809) |
| Total expenditure | (1,819,519) | (1,168,713) | (2,988,232) | (1,488,529) | (1,163,925) | (2,652,454) | |
| Net expense and | |||||||
| movement in funds | (46,005) | (398,879) | (444,884) |
(172,421) |
(73,414) | (245,835) | |
| Reconciliation of funds | |||||||
| Total funds brought | |||||||
| forward | 7 | 1,094,318 | 2,204,471 | 3,298,789 |
1,266,739 |
2,277,885 | 3,544,624 |
| Net expense and movement in funds |
(46,005) | (398,879) | (444,884) |
(172,421) |
(73,414) | (245,835) | |
| Total funds carried | |||||||
| forward | 7 | 1,048,313 | 1,805,592 | 2,853,905 |
1,094,318 |
2,204,471 | 3,298,789 |
All of The PwC Foundation’s operations represent continuing activities.
8
The PwC Foundation
Balance sheet at 30 June 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Current assets | |||
| Cash and cash equivalents | 6 | 2,853,905 | 3,298,789 |
| Total net assets | 2,853,905 | 3,298,789 | |
| Charity funds | |||
| Unrestricted funds | 7 | 1,048,313 | 1,094,318 |
| Restricted funds | 7 | 1,805,592 | 2,204,471 |
| Total charity funds | 7 | 2,853,905 | 3,298,789 |
These financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to companies subject to the small companies regime.
The notes on pages 11 to 16 are an integral part of these financial statements.
The financial statements on pages 8 to 16 were approved and authorised for issue by the trustees on 19 February 2024 and were signed on their behalf by:
DR Walters Trustee
The PwC Foundation
Company number: 07601963 Charity number: 1144124
9
The PwC Foundation
Statement of cash flows for the financial year ended 30 June 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Note | £ | £ | |
| Cash flows from operating activities | |||
| Net expense | (444,884) | (245,835) | |
| Net cash utilised in operating activities | (444,884) | (245,835) | |
| Net decrease in cash and cash equivalents in financial year | (444,884) | (245,835) | |
| Cash and cash equivalents at beginning of financial year | 3,298,789 | 3,544,624 | |
| Cash and cash equivalents at end of financial year | 6 | 2,853,905 | 3,298,789 |
10
The PwC Foundation
Notes to the financial statements for the financial year ended 30 June 2023
1 Accounting policies
Basis of preparation
The PwC Foundation (‘the Foundation’) is a public benefit entity. The trustees’ report and the financial statements have been prepared in compliance with the Charities Act 2011, the Charities Statement of Recommended Practice (‘Charities SORP’) and Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (‘FRS 102’).
The principal accounting policies adopted by the Foundation in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented.
The financial statements have been prepared on a going concern basis under the historical cost convention. The trustees have no reason to believe that a material uncertainty exists that may cast significant doubt on the ability of the Foundation to continue as a going concern. On the basis of their assessment of the Foundation’s financial position, the trustees have a reasonable expectation that the Foundation will be able to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the financial statements. Details of the structure, governance and management of the charity, including the risk management and financial review, are set out in the trustees’ report.
The Foundation is a company limited by guarantee and governed by memorandum and articles incorporated on 12 April 2011, as amended by special resolutions on 18 September 2011 and 24 January 2014. The address of the Foundation’s registered office is 1 Embankment Place, London, WC2N 6RH. The nature of the Foundation’s operations and its principal activities are set out in the trustees’ report.
Income and endowments
Income, gross of related expenditure, is recognised when there is sufficient evidence of entitlement, the receipt is probable and the value of the income can be reliably measured.
Donations and legacies include donations and donated services. Donated services are those provided to the charity on a probono basis. All donated services are recognised at their value to the charity as assessed by the trustees.
Expenditure
Expenditure is recognised on an accruals basis and classified under the following headings:
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Charitable activities (note 3) - comprises direct expenditure associated with fundraising or charitable activity, including donations made and related support costs, and expenditure associated with the governance arrangements of the charity, including the general running costs.
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Donated services (note 4) - comprises expenditure associated with the provision of operational support and financial management services.
Donations made are payments to third parties in the furtherance of the objectives of the charity. Donations are committed on an ad-hoc basis and are not subject to performance reviews.
Value Added Tax is included within expenditure where it is not recoverable.
Liabilities are recognised when there is a legal or constructive obligation committing the charity to the expenditure.
Funds
Restricted funds
Restricted funds comprise amounts donated to the charity for specific objectives specified by the donor or by the nature of the fundraising.
Unrestricted funds
All other funds are unrestricted and are available to the charity to further any of its charitable objectives.
Taxation
As a registered charity, the Foundation benefits from tax exemptions available to registered charities. Consequently, it is not liable for income tax or corporation tax on income derived from its charitable activities.
Financial instruments
Financial instruments are initially measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In the statement of cash flows, cash and cash equivalents include cash at bank and in hand and cash held by the Charities Aid Foundation.
11
The PwC Foundation
Notes to the financial statements (continued)
1 Accounting policies (continued)
Critical accounting estimates and judgements
The trustees consider that the key estimate and critical accounting judgement that could have an impact on the Foundation’s financial results relates to the valuation of the services donated to the Foundation (note 4).
2 Donations and legacies
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|
| Funds | Funds | 2023 | Funds | Funds | 2022 | |
| £ | £ | £ | £ | £ | £ | |
| Donations from | ||||||
| PricewaterhouseCoopers Services | 1,678,114 | 355,500 | 2,033,614 | 1,246,340 | 566,810 | 1,813,150 |
| Limited | ||||||
| Other donations | 40,900 | 414,334 | 455,234 | 19,768 | 523,701 | 543,469 |
| Support costs borne by | ||||||
| PricewaterhouseCoopers Services | 4,500 | - | 4,500 | 3,750 | - | 3,750 |
| Limited | ||||||
| Services donated by PricewaterhouseCoopers Services Limited (note 4) |
50,000 | - | 50,000 | 46,250 | - | 46,250 |
| Total donations and legacies | 1,773,514 | 769,834 | 2,543,348 | 1,316,108 | 1,090,511 | 2,406,619 |
Auditor’s remuneration payable to Crowe U.K. LLP in respect of audit fees for the financial year ended 30 June 2023 was £4,500 (2022: £3,750). There were no fees payable for other services in the current financial year (2022: nil). In both the current and prior financial years, the auditor’s remuneration was borne by PricewaterhouseCoopers Services Limited and is included in donations and legacies.
3 Expenditure on charitable activities
| Donation | Support | Total | Donation | Support | Total | |
|---|---|---|---|---|---|---|
| made | costs | 2023 | made | costs | 2022 | |
| £ | £ | £ | £ | £ | £ | |
| Charitable activities | ||||||
| In support of social mobility | 1,147,867 | - | 1,147,867 | 1,173,837 | - | 1,173,837 |
| In support of education | 407,983 | - | 407,983 | 164,886 | - | 164,886 |
| In support of healthcare and | ||||||
| wellbeing | 459,616 | - | 459,616 | 384,290 | - | 384,290 |
| In support of environmental and | ||||||
| other charitable activities | 703,992 | - | 703,992 | 729,714 | - | 729,714 |
| Resources expended in matched | ||||||
| giving programme | **184,692 ** | - | **184,692 ** | 123,668 | - | 123,668 |
| 2,904,150 | - | 2,904,150 | 2,576,395 | - | 2,576,395 | |
| Governance costs | ||||||
| Operational and financial support |
- | 50,000 | 50,000 | - | 46,250 | 46,250 |
| Bank charges and fees | - | 29,582 | 29,582 | - | 26,059 | 26,059 |
| Audit fees | - | 4,500 | 4,500 | - | 3,750 | 3,750 |
| - | 84,082 | 84,082 | - | 76,059 | 76,059 | |
| Total charitable activities | 2,904,150 | 84,082 | 2,988,232 | 2,576,395 | 76,059 | 2,652,454 |
All donations made in the current and prior financial years were to institutions.
12
The PwC Foundation
Notes to the financial statements (continued)
3 Expenditure on charitable activities (continued)
The Foundation participates in a matched giving programme for members and employees of the PricewaterhouseCoopers LLP UK group, whereby the Foundation matches an individual’s fundraising to a maximum of £250 per person, per year. The charitable cause is selected by the individual member or employee but excludes political organisations, lobby groups, animal rights groups and religious bodies. Bank charges and fees include fees charged by online giving platforms, Give As You Earn support and card readers transaction fees.
Total donations made to individual institutions in the current and prior financial years, where material, are shown below:
| 2023 | 2022 | |||
|---|---|---|---|---|
| Number of | Total | Number 0f | Total | |
| donations | donations | donations | donations | |
| made | made | made | made | |
| £ | £ | |||
| In support of social mobility | ||||
| Crisis UK | 47 | 237,146 | 53 | 171,529 |
| School for Social Entrepreneurs | 3 | 152,000 | 2 | 114,500 |
| RefuAid - Prism the Gift Fund | 2 | 125,000 | 1 | 60,000 |
| Beyond Food Foundation | 17 | 123,432 | 19 | 148,897 |
| The Social Mobility Foundation | 6 | 101,570 | 4 | 50,625 |
| Social Enterprise Coalition Community Interest Company | 3 | 57,200 | 4 | 55,000 |
| Making the Leap | 1 | 30,000 | 1 | 30,000 |
| 10,000 Black Interns Foundation | 2 | 22,000 | - | - |
| Chinese Women in the City | 1 | 20,000 | - | - |
| Ahead Partnership | 4 | 18,000 | 1 | 18,000 |
| Business in the Community | 1 | 18,000 | 2 | 32,750 |
| Babbasa Youth Empowerment Projects Community Interest | 3 | 17,650 | - | - |
| Company | ||||
| Advice Support Knowledge Information | 2 | 17,500 | - | - |
| St Martin-in-the-Field | 2 | 16,534 | - | - |
| Street League | 2 | 16,000 | - | - |
| 1000 Black Boys Community Interest Company | 3 | 16,000 | - | - |
| Access Accountancy | 1 | 10,500 | 1 | 10,000 |
| Orange Bow Community Interest Company | 3 | 10,225 | - | - |
| Spark Inside | 2 | 10,200 | 1 | 10,000 |
| XLP | 1 | 10,000 | 3 | 6,078 |
| Money A&E Community Interest Company | 1 | 10,000 | 2 | 6,000 |
| The Institute of Chartered Accountants in England Wales -RISE | 1 | 8,300 | 1 | 8,300 |
| Beyond Food Community Interest Company | 5 | 4,813 | 3 | 99,016 |
| Tutors United | 1 | 2,500 | 1 | 10,000 |
| Teach First | 1 | 1,600 | 2 | 72,000 |
| UpReach Charitable Company | 1 | 300 | 3 | 46,500 |
| Urban Synergy | - | - | 4 | 15,800 |
| The Amos Bursary | - | - | 2 | 15,200 |
| Enabling Enterprise Community Interest Company | - | - | 1 | 15,150 |
| Impact Hub Bradford Community Interest Company | - | - | 1 | 15,000 |
| London School of Mosaic | - | - | 4 | 10,470 |
| Donations to other institutions | 68 | 91,397 | 98 | 153,022 |
| Total donations in support of social mobility | 184 | 1,147,867 | 214 | 1,173,837 |
| In support of education | ||||
| Queen Mary University of London | 1 | 64,000 | - | - |
| University of Reading | 1 | 60,000 | - | - |
| University of Nottingham | 1 | 52,000 | - | - |
| Tech She Can | 2 | 50,033 | 2 | 100,000 |
| Newcastle University | 1 | 40,000 | - | - |
| Place2Be | 2 | 37,350 | 2 | 27,600 |
| The University of Manchester | 1 | 24,000 | - | - |
| National Literacy Trust | 4 | 21,980 | 3 | 19,000 |
13
The PwC Foundation
Notes to the financial statements (continued)
3 Expenditure on charitable activities (continued)
| 2023 | 2022 | |||
|---|---|---|---|---|
| Number of | Total | Number of | Total | |
| donations | donations | donations | donations | |
| made | made | made | made | |
| £ | £ | |||
| In support of education(continued) | ||||
| Wales Millennium Centre (Productions) | 2 | 13,920 | - | - |
| The Tutor Trust | 16 | 13,156 | - | - |
| Donations to other institutions | 37 | 31,544 | 16 | 18,286 |
| Total in support of education | 68 | 407,983 | 23 | 164,886 |
| In support of healthcare | ||||
| Hospice UK | 44 | **273,870 ** | 44 | 178,211 |
| Wellbeing of Women | 16 | 75,924 | 18 | 100,727 |
| City Mental Health Alliance Community Interest Company | 1 | **12,000 ** | - | - |
| London's Air Ambulance Limited | 1 | 10,833 | - | - |
| Simon Community NI | 1 | **10,000 ** | - | - |
| Scottish Association for Mental Health | 10 | 5,903 | 14 | 8,199 |
| Mesothelioma UK | 3 | **1,551 ** | 1 | 9,245 |
| Meadow House Hospice | 1 | **38 ** | 1 | 9,628 |
| Bradford Birth to 19 | - | **- ** | 1 | 10,000 |
| Donations to other institutions | 100 | **69,497 ** | 109 | 68,280 |
| Total in support of healthcare | 177 | **459,616 ** | 188 | 384,290 |
| In support of other charitable activities | ||||
| The British Red Cross Society | 17 | 126,122 | 20 | 385,653 |
| The Hummingbird Project Community Interest Company | 14 | 88,157 | 13 | 44,305 |
| The Trussell Trust | 4 | 56,050 | - | - |
| Walk To The Horizon Limited | 6 | 43,787 | - | - |
| PwC Yönetim Danismanligi AS | 1 | 40,000 | - | - |
| WWF-UK | 4 | 38,405 | - | - |
| Donmar Productions Limited | 2 | 25,011 | - | - |
| Global Leadership Foundation | 1 | 25,000 | - | 25,000 |
| Disasters Emergency Committee (DEC) Earthquake | 1 | 25,000 | 1 | - |
| Black Swimming Association | 2 | 20,250 | - | - |
| Refugee Council | 1 | 20,000 | 1 | 10,000 |
| Tonic Housing Association Limited | 7 | 16,095 | - | - |
| Ummah Welfare Trust | 5 | 15,099 | - | - |
| The Story of Christmas | 1 | 15,000 | - | - |
| The Lord Mayor's Appeal Trading Limited | 4 | 12,203 | 2 | 10,100 |
| The Felix Project | 1 | 10,000 | - | - |
| Energy Saving Trust Foundation | 1 | 10,000 | - | - |
| The Sutton Trust | 1 | 5,000 | 1 | 10,000 |
| The Bread and Butter Thing | 2 | 2,870 | 17 | 28,681 |
| Charity Week | 1 | 2,914 | 3 | 13,663 |
| British Refugee Council | 1 | 2,000 | 3 | 26,663 |
| TaxAid UK | - | - | 1 | 30,000 |
| Sustainable Environment and Ecological Development Society | - | - | 1 | 25,285 |
| Good Chance Theatre | - | - | 1 | 21,950 |
| Fundacja PwC Poland | - | - | 2 | 10,927 |
| Donations to other institutions | 76 | 105,029 | 73 | 87,487 |
| Total in support of other charitable activities | 153 | **703,992 ** | 139 | 729,714 |
| Resources expended in matched giving programme | 184,692 | 123,668 | ||
| Total donations made | 582 | 2,904,150 | 564 | 2,576,395 |
14
The PwC Foundation
Notes to the financial statements (continued)
4 Donated services
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|
| Funds | Funds | 2023 | Funds | Funds | 2022 | |
| £ | £ | £ | £ | £ | £ | |
| Operational support | 41,000 | - | 41,000 | 37,250 | - | 37,250 |
| Financial management | 9,000 | - | 9,000 | 9,000 | - | 9,000 |
| Total donated services | 50,000 | - | 50,000 | 46,250 | - | 46,250 |
5 Staff costs and trustees’ remuneration
No staff were employed by the Foundation during the current financial year ended 30 June 2023 (2022: nil).
During the current and prior financial years, no trustees received any remuneration in respect of their services to the Foundation or any reimbursement of expenses.
6 Cash and cash equivalents
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Cash at bank and in hand | 2,840,399 | 3,264,526 |
| Cash held by Charities Aid Foundation | 13,506 | 34,263 |
| Total cash and cash equivalents | 2,853,905 | 3,298,789 |
7 Charity Funds
| 7 Charity |
Funds | ||||||
|---|---|---|---|---|---|---|---|
| At | |||||||
| beginning | Expenditure | At end of | Expenditure | At end of | |||
| of prior | Income for | for the | prior | Income for | for the | financial | |
| financial | the financial | financial | financial | the financial | financial | year | |
| year | year | year | year | year | year | ||
| £ | £ | £ | £ | £ | £ | £ | |
| Unrestricted | 1,266,739 | 1,316,108 | (1,488,529) | 1,094,318 | 1,719,013 | (1,765,018) | 1,048,313 |
| Funds | |||||||
| Restricted | 77,398 | 740,511 | (770,243) | 47,666 | 469,834 | (474,564) | 42,936 |
| Funds 1 | |||||||
| Restricted | 30,000 | - | (15,000) | 15,000 | (15,000) | - | |
| Funds 2 | |||||||
| Restricted | 417,737 | 300,000 | (157,182) | 560,555 | 300,000 | (357,899) | 502,656 |
| Funds 3 | |||||||
| Restricted | 202,750 | - | (121,500) | 81,250 | - | (81,250) | - |
| Funds 4 | |||||||
| Restricted | 50,000 | 50,000 | (100,000) | - | - | - | - |
| Funds 5 | |||||||
| Restricted | 1,500,000 | - | - | 1,500,000 | - | (240,000) | 1,260,000 |
| Funds 6 | |||||||
| Total Restricted | 2,277,885 | 1,090,511 | (1,163,925) | 2,204,471 | 769,834 | (1,168,713) | 1,805,592 |
| Funds | |||||||
| Total | 3,544,624 | 2,406,619 | (2,652,454) | 3,298,789 | 2,488,847 | (2,933,731) | 2,853,905 |
15
The PwC Foundation
Notes to the financial statements (continued)
7 Charity Funds (continued)
Donations received are classified as restricted funds when donors make specific requests in respect of the purpose for which the funds will be used. Restricted Funds 2 are for environmental purposes, Restricted Funds 3 for the Colour Brave programme, Restricted Funds 4 for the Social Mobility programme, Restricted Funds 5 for Tech She Can and Restricted Funds 6 for Flying Start bursaries. Restricted Funds 1 comprises funds held for all other specified purposes.
8 Analysis of net assets between funds
Fund balances at the end of the financial year are represented by:
| Unrestricted | Restricted | Total | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|
| Funds | Funds | 2023 | Funds | Funds | 2022 | |
| £ | £ | £ | £ | £ | £ | |
| Current assets | 1,048,313 | 1,805,592 | 2,853,905 | 1,094,318 | 2,204,471 | 3,298,789 |
| Total net assets | 1,048,313 | 1,805,592 | 2,853,905 | 1,094,318 | 2,204,471 | 3,298,789 |
See note 7 for an analysis of the movements in the fund balances in the current and prior financial years.
9 Capital
The Foundation is a company limited by guarantee and has no share capital. In the event of the Foundation being wound up, the liability of the sole member, PricewaterhouseCoopers LLP, is limited to £1.
10 Related party transactions
There were no transactions with related parties during the current or prior financial years and there were no balances with related parties at the end of the current or prior financial years.
16