REGISTERED COMPANY NUMBER: 07415543 (England and Wales) REGISTERED CHARITY NUMBER: 1144317
THE HENDRIE FOUNDATION
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30TH APRIL 2021
THE HENDRIE FOUNDATION
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH APRIL 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 2 |
| Report of the Independent Auditors | 3 | to | 5 |
| Statement of Financial Activities | 6 | ||
| Balance Sheet | 7 | ||
| Cash Flow Statement | 8 | ||
| Notes to the Cash Flow Statement | 9 | ||
| Notes to the Financial Statements | 10 | to | 14 |
THE HENDRIE FOUNDATION (REGISTERED NUMBER: 07415543)
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30TH APRIL 2021
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30th April 2021. The trustees have adopted the provisions of 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
07415543 (England and Wales)
Registered Charity number
1144317
Registered office
137, Station Road, Chingford, London E4 6AG
Trustees
J.W. Purnell C.J. Adkins J.L. Howe
Auditors
S. Cobbin & Co Limited t/as Findlay Wetherfield Scott & Co Chartered Accountants and Statutory Auditors 137, Station Road, Chingford, London E4 6AG
Bankers
Barclays Bank plc., North East London Group, P.O. Box 2403, London, N18 2BY
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of The Hendrie Foundation for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"
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THE HENDRIE FOUNDATION (REGISTERED NUMBER: 07415543)
REPORT OF THE TRUSTEES
FOR THE YEAR ENDED 30TH APRIL 2021
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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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 keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The auditors, S. Cobbin & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 20th July 2021 and signed on its behalf by:
J.W. Purnell - Trustee
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE HENDRIE FOUNDATION
Opinion
We have audited the financial statements of The Hendrie Foundation (the 'charitable company') for the year ended 30th April 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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 30th April 2021 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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 Auditors' 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 trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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.
In connection with our audit of the financial statements, 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
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the charitable company has not kept adequate accounting records; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE HENDRIE FOUNDATION
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, 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.
Our responsibilities for the audit of the financial statements
We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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 a Report of the Independent Auditors 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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we considered the following:
- the nature of the company's industry and sector, control environment and performance - the company's assessment of the risks and irregularities that may occur as a result of fraud or error - the legal and regulatory framework in which the company operates affecting both financial and operational areas
Having considered these areas and identified any as a key audit matter, procedures were applied for the review and testing of these to satisfy us of their appropriateness and compliance.
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 Report of the Independent Auditors.
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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE HENDRIE FOUNDATION
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of S. Cobbin & Co Limited t/as Findlay Wetherfield Scott & Co Chartered Accountants and Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 137, Station Road, Chingford, London E4 6AG
20th July 2021
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THE HENDRIE FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30TH APRIL 2021
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Investment income 3 Total EXPENDITURE ON Raising funds 4 Charitable activities 5 General donations Other Total Net gains/(losses) on investments NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2021 Unrestricted fund £ 1,770 485,226 486,996 19,382 57,850 - 77,232 (232,794) 176,970 10,243,895 10,420,865 |
2020 Total funds £ 1,634 610,899 612,533 24,053 405,479 4,188 433,720 (158,058) 20,755 10,223,140 10,243,895 |
|---|---|---|
The notes form part of these financial statements
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THE HENDRIE FOUNDATION (REGISTERED NUMBER: 07415543)
BALANCE SHEET 30TH APRIL 2021
| Notes FIXED ASSETS Investment property 9 CURRENT ASSETS Debtors 10 Investments 11 Cash at bank NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 12 Unrestricted funds TOTAL FUNDS |
2021 Unrestricted fund £ - 151,251 8,628,924 1,640,690 10,420,865 10,420,865 10,420,865 10,420,865 10,420,865 10,420,865 |
2020 Total funds £ 2,000,000 171,412 6,645,369 1,427,114 |
|---|---|---|
| 8,243,895 | ||
| 8,243,895 | ||
| 10,243,895 | ||
| 10,243,895 | ||
| 10,243,895 | ||
| 10,243,895 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30th April 2021.
The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.
The trustees acknowledge their responsibilities for
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(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
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(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 20th July 2021 and were signed on its behalf by:
J.W. Purnell - Trustee
The notes form part of these financial statements
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THE HENDRIE FOUNDATION
CASH FLOW STATEMENT FOR THE YEAR ENDED 30TH APRIL 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash used in operating activities Cash flows from investing activities Purchase of fixed asset investments Purchase of investment property Sale of fixed asset investments Sale of investment property Interest received Dividends received Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2021 £ (55,301) (55,301) (2,087,210 ) - 47,843 1,823,018 33,700 451,526 268,877 213,576 1,427,114 1,640,690 |
2020 £ (381,835) (381,835) (640,685) (221,763) 385,148 354,753 36,919 533,937 448,309 66,474 1,360,640 1,427,114 |
|---|---|---|
The notes form part of these financial statements
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THE HENDRIE FOUNDATION
NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 30TH APRIL 2021
| 1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM | OPERATING ACTIVITIES | OPERATING ACTIVITIES |
|---|---|---|---|
| 2021 | 2020 | ||
| £ | £ | ||
| Net income for the reporting period (as per the Statement of Financial | |||
| Activities) | 176,970 | 20,755 | |
| Adjustments for: | |||
| Losses on investments | 232,794 | 158,058 | |
| Interest received | (33,700) | (36,919) | |
| Dividends received | (451,526) | (533,937) | |
| Decrease in debtors | 20,161 | 28,044 | |
| Decrease in creditors | - | (17,836) | |
| Net cash used in operations | (55,301) | (381,835) | |
| 2. | ANALYSIS OF CHANGES IN NET FUNDS |
| Net cash Cash at bank Liquid resources Deposits included in cash Current asset investments Total |
At 1.5.20 £ 1,427,114 1,427,114 - 6,645,369 6,645,369 8,072,483 |
Cash flow £ 213,576 213,576 - 1,983,555 1,983,555 2,197,131 |
At 30.4.21 £ 1,640,690 |
|---|---|---|---|
| 1,640,690 | |||
| - 8,628,924 |
|||
| 8,628,924 | |||
| 10,269,614 |
The notes form part of these financial statements
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THE HENDRIE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH APRIL 2021
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Foreign currencies
Assets and liabilities 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 rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
2. DONATIONS AND LEGACIES
| DONATIONS AND LEGACIES | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Donations | 1,770 | 1,634 |
continued...
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THE HENDRIE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH APRIL 2021
| 3. INVESTMENT INCOME Rents received Dividends from subsidiary Dividends and distributions Deposit account interest Unit trust interest Loyalty bonuses 4. RAISING FUNDS Investment management costs Administrative expenses Property insurance Property repairs Property rates, other costs and charges Support costs 5. CHARITABLE ACTIVITIES COSTS Direct Costs £ General donations 57,255 6. SUPPORT COSTS Management £ Investment management costs - General donations 535 535 |
2021 £ - 300,000 151,526 7,041 18,939 7,720 485,226 2021 £ - 745 394 17,075 1,168 19,382 Support costs (see note 6) £ 595 Finance £ 1,168 60 1,228 |
2020 £ 40,043 321,763 212,174 11,077 18,178 7,664 |
2020 £ 40,043 321,763 212,174 11,077 18,178 7,664 |
2020 £ 40,043 321,763 212,174 11,077 18,178 7,664 |
|---|---|---|---|---|
| 610,899 | ||||
| 2020 £ 188 2,991 6,900 9,107 4,867 |
||||
| 24,053 | ||||
| Totals £ 57,850 |
||||
| Totals £ 1,168 595 1,763 |
||||
| 1,763 |
continued...
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THE HENDRIE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH APRIL 2021
7. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30th April 2021 nor for the year ended 30th April 2020.
| Trustees' expenses 2021 £ Trustees' expenses 6 8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES INCOME AND ENDOWMENTS FROM Donations and legacies Investment income Total EXPENDITURE ON Raising funds Charitable activities General donations Other Total Net gains/(losses) on investments NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2020 £ 8,311 Unrestricted fund £ 1,634 610,899 612,533 24,053 405,479 4,188 433,720 (158,058) 20,755 10,223,140 10,243,895 |
|---|---|
continued...
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THE HENDRIE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH APRIL 2021
9. INVESTMENT PROPERTY
| Cost less impairment At 1st May 2020 Disposals At 30th April 2021 Net book value At 30th April 2021 At 30th April 2020 10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 £ Amounts owed by group undertakings 148,579 Other debtors 1,380 Broker's account 1,292 151,251 11. CURRENT ASSET INVESTMENTS 2021 £ Listed investments 8,628,924 |
£ 2,000,000 (2,000,000 ) - - 2,000,000 2020 £ 148,579 3,380 19,453 171,412 2020 £ 6,645,369 |
|---|---|
The market value of the investments at the balance sheet date was £10,226,231 (previous year £6,615,358).
12. MOVEMENT IN FUNDS
| Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as Unrestricted funds General fund TOTAL FUNDS |
follows: Incoming resources £ 486,996 486,996 |
At 1.5.20 £ 10,243,895 10,243,895 Resources expended £ (77,232) (77,232) |
Net movement in funds £ 176,970 176,970 Gains and losses £ (232,794) (232,794) |
At 30.4.21 £ 10,420,865 10,420,865 Movement in funds £ 176,970 176,970 |
|
|---|---|---|---|---|---|
continued...
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THE HENDRIE FOUNDATION
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 30TH APRIL 2021
12. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General fund TOTAL FUNDS |
At 1.5.19 £ 10,223,140 10,223,140 |
Net movement in funds £ 20,755 20,755 |
At 30.4.20 £ 10,243,895 |
|---|---|---|---|
| 10,243,895 |
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund TOTAL FUNDS |
Incoming resources £ 612,533 612,533 |
Resources expended £ (433,720) (433,720) |
Gains and Movement losses in funds £ £ (158,058) 20,755 (158,058) 20,755 |
Gains and Movement losses in funds £ £ (158,058) 20,755 (158,058) 20,755 |
|---|---|---|---|---|
| 20,755 |
The loss relates to further distributions on the winding up of LF Equity Income Fund. There was also a loss on the disposal of the property previously transferred from the subsidiary and revalued.
The previous year's loss relates to the deficit realised on the Trust's holdings in LF Equity Income funds from the distributions made in that year on the funds winding up. That loss was reduced by the gain realised on a property sold during the year.
13. OTHER FINANCIAL COMMITMENTS
The Foundation has committed towards a drugs trial. At the balance sheet date, there was a remaining commitment of £312,500 planned for payment over five quarterly instalments.
14. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 30th April 2021.
15. INVESTMENT IN SUBSIDIARY
Under the terms of the Will of the former shareholder of Compuvac Computer Service Limited, incorporated in England and Wales, the Charity was gifted the whole of that company's issued share capital. No value has currently been attributed to this gift in the Charity's accounts. Dividends from this company have been stated in the Notes.
Information on this company's accounts is as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Capital and reserves | 418,185 | 728,722 |
| Profit (loss) before taxation | (13,024) | (9,765) |
| The company's financial year end is 31st March. |
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