OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

THE EIGHTY EIGHT FOUNDATION (Registered Charity Number: 1149797)

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR TO 31 MARCH 2021

Eighth Floor, 6 New Street Square, New Fetter Lane, London EC4A 3AQ

THE EIGHTY EIGHT FOUNDATION

TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR TO 31 MARCH 2021

CONTENTS

Page
Annual Report of the Trustees 1 - 6
Independent Auditor’s Report 7 - 9
Statement of Financial Activities 10
Balance Sheet 11
Statement of Cash Flows 12
Notes to the Financial Statements 13 - 19

Page 1

THE EIGHTY EIGHT FOUNDATION

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR TO 31 MARCH 2021

The Trustees present their report and the independently audited financial statements of The Eighty Eight Foundation (“the trust” or “the charity”) for the year to 31 March 2021. These have been prepared in accordance with the accounting policies set out on pages 13 to 15 and comply with the charity’s trust deed and applicable law.

The financial statements comply with the Charities Act 2011, the charity’s trust deed dated 15 November 2012 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 UK and Republic of Ireland – SORP (FRS).

1. REFERENCE AND ADMINISTRATIVE DETAILS

The Eighty Eight Foundation, registered charity number 1149797, is based and administered in the United Kingdom. The registered address is Eighth Floor, 6 New Street Square, New Fetter Lane, London EC4A 3AQ.

Trustees

The names of the Trustees who served throughout the year and continue to serve at the date of the report’s approval are:

Edward Fitzmaurice Bella Ann Fitzmaurice Claude Slatner Stuart John Walker Neelesh Christopher Heredia Barry Ivor Fine (appointed 16 July 2020)

Accountants

Rawlinson & Hunter LLP Eighth Floor, 6 New Street Square, New Fetter Lane, London, EC4A 3AQ

Independent Auditor

Rawlinson & Hunter Audit LLP Eighth Floor, 6 New Street Square, New Fetter Lane, London, EC4A 3AQ

Solicitors

Withers LLP 16 Old Bailey, London, EC4M 7EG

Bankers

Barclays Bank Plc Barclays House, Victoria Street, Douglas, Isle of Man, IM99 1AJ

Investment Managers & Custodians

Barclays Bank Plc 1 Churchill Place, Canary Wharf, London, E14 5HP

UBS Wealth Management 5 Broadgate, London, EC2M 2QS

Page 2

THE EIGHTY EIGHT FOUNDATION

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR TO 31 MARCH 2021

2. STRUCTURE, GOVERNANCE AND MANAGEMENT

The charity was established by a Declaration of Trust dated 15 November 2012 and is an unincorporated charitable trust governed by the proper law of England and Wales and registered as a charity with the Charity Commission.

The entire resources of the charity have been unrestricted throughout the period and the Trustees have complete discretion for the use of the funds in pursuance of the trust’s objectives.

The management of the charity is conducted solely by the Trustees.

The Trustees’ investment powers are unrestricted.

The Trustees shall hold at least two meetings in each calendar year.

Induction and Training

Should new Trustees be appointed a formal induction process will be conducted by the Trustees. Other Trustee training is undertaken on an informal basis. All Trustees are aware of their legal duties and obligations in respect of the management of the charity, including in relation to the protection of its assets.

Pay policy for senior staff

The Trustees comprise the key management personnel of the charity who are in charge of directing and controlling, running and operating the charity on a day to day basis.

All Trustees give their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in the notes to the financial statements. There are no staff other than the Trustees.

Trustees’ Responsibilities Statement

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

The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity 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 charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

THE EIGHTY EIGHT FOUNDATION

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR TO 31 MARCH 2021

2. STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Disclosure of information to Auditor

In so far as the Trustees are aware:

Internal Controls

The Trustees have overall responsibility for ensuring that the charity has appropriate systems of internal controls. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps towards the prevention and detection of fraud.

The system of internal controls is designed to provide reasonable, but not absolute, assurance against material misstatement or loss.

Risk Management and Governance

A risk assessment has been undertaken which comprises:

This continuing process will identify risk areas to which the trust is vulnerable and highlight any necessary safeguards that will need to be put in place. No major risks were identified at the date of these financial statements.

The Trustees have signed fit and proper declarations in line with HMRC guidance.

In addition, the Trustees have taken due consideration of Good Governance – A Code for the Voluntary and Community Sector, ensuring that the six main principles of the Code are adhered to. These are:

The Trustees recognise that good governance plays an essential part in securing the future of the charity and confirm that the said main principles of the Code are followed by them in leading, directing and managing the charity.

Page 4

THE EIGHTY EIGHT FOUNDATION

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR TO 31 MARCH 2021

3. OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

The objectives of the charity are such exclusively charitable purposes as the Trustees may in their absolute discretion determine. The charity is established for general charitable purposes and will operate as a grant making charity, supporting charitable projects, organisations and individuals with grants of varying sizes and durations.

The Trustees continue to provide opportunities for the Irish underprivileged and for exceptional underprivileged artists and photographers, although for the time being, the Trustees’ key focus is supporting education, cancer and dementia research and care.

The Trustees may use the income and the capital of the charity in promoting the objectives.

Statement of Public Benefit

The Trustees are aware of the Charity Commission guidance on Public Benefit and confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to it. They consider the information which follows in this annual report, about the trust’s aims, activities and achievements in the areas of interest that the trust supports, demonstrates the benefit to its beneficiaries and through them to the public, which arise from those activities.

4. ACHIEVEMENT AND PERFORMANCE

Investments

The assets of the charity consist principally of investments and cash and these are recorded on the Balance Sheet at their market value on that date as detailed in Note 6 to the accounts. Any increase or decrease over cost of the restatement of these values is recorded in the Statement of Financial Activities.

Charitable Activities

Charitable Activities include direct charitable expenditure in the year and governance costs.

During the year, the Trustees pledged donations totalling £1,666,814 (2020 - £681,577) to 19 (2020 - 14) charitable organisations. All grants were paid in line with the policies set out in section 3 of this report, Objectives and Activities for the public benefit. A full list of grants made during the period is shown in Note 4. The accounting treatment in respect of grants is in line with that set out in section 7 of SORP (FRS 102).

Governance costs of £16,629 (2020 - £17,369) were incurred during the year, and are included in Charitable Activities.

5. FINANCIAL REVIEW

Incoming Resources

Incoming resources totalled £3,745,165 (2020 - £3,935,108) from donations, investment income and Gift Aid reclaims as detailed in Notes 2 and 3 to the accounts.

Investment income is shown gross of investment management costs. Charity SORP (FRS 102) prescribes that investment management costs, when incurred, are separately accounted for under resources expended and more specifically under costs of raising funds.

Page 5

THE EIGHTY EIGHT FOUNDATION

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR TO 31 MARCH 2021

5. FINANCIAL REVIEW (continued)

Fundraising

The Trustees have referred to the Code of Fundraising Practice (“the Code”) which were developed during the year by the fundraising community through the work of the Institute of Fundraising and Public Fundraising Association, and the Guidance on Charities and Fundraising issued by the Charity Commission (“CC20”) and the Charities (Protection and Social Investment) Act 2016 (“the Act”). They confirm that the Code, CC20 and the Act have no impact on the charity as it does not engage in any public fundraising activities.

Investment policy and performance

The Trustees’ investment powers are unrestricted. The Trustees have engaged Barclays Wealth and Investment Management and UBS to manage the trust’s assets. The Trustees selected a moderate risk investment profile, which remains unchanged.

Over the financial year the charity’s investment portfolio with Barclays grew by 22.06% (2020: 1.26%) and since inception the investment portfolio has provided at an annualised return of 10.29% (2020: 4.9%).

Over the financial year the charity’s investment portfolio with UBS appreciated by 19.18% (2020: depreciated 6.71%).

Reserves Policy

The Trustees have examined the charity’s requirements for resources in light of the main risks to the organisation and have no outstanding commitments or cash demands that are not adequately covered by existing resources. The net assets of the charity are regarded as free reserves and the available funds at 31 March 2021 will be retained to make grants in accordance with the charity’s charitable objects and any policies.

The Trustees consider that the freely expendable funds are appropriate and adequate taking into account plans for grants to be awarded in the future and therefore have at present not designated any specific reserves. However, the Trustees will keep this under constant review. In future years a specific reserves policy will be adopted.

The balance held as unrestricted funds as at 31 March 2021 was £20,021,621 (2020 - £14,678,141).

Page 6

THE EIGHTY EIGHT FOUNDATION

TRUSTEES’ ANNUAL REPORT

FOR THE YEAR TO 31 MARCH 2021

6. GRANT MAKING POLICY

The charity has been established to provide grants for purposes that are exclusively charitable under the law of England and Wales. The charity has established sound grant arrangements so that it can properly select appropriate grantees and impose prudent terms on grants, including, as appropriate, requiring monitoring and evaluation of the way in which funds are applied by grantees.

The charity identifies worthy causes through its own research, the use of specialist research companies like NPC or the philanthropy units of UBS and Barclays. The potential charities are interviewed to ensure that they meet the objectives of the Eighty Eight Foundation and due diligence and referencing is undertaken at this stage. Once the potential charities are selected to progress to discussion by the Trustees they need to submit a written proposal, showing how the grant will be spent, the phasing of the funds and the frequency and type of reporting. These proposals will then be discussed at meetings by the Board of Trustees with formal minutes being taken.

It is also requested that the supported charities send updates, so that the charity is aware of how they are getting on, and to inform if any changes are made to their original plans. This is of particular note where there are conditions attached to the donation.

The trust usually requests that they receive no publicity from the grantee for the donation.

7. PLANS FOR THE FUTURE

The Trustees do not currently propose to deviate from the current objectives and activities of the trust as detailed in section 3 of this report.

8. AUDITOR

It will be proposed that at the next Trustee meeting that Rawlinson & Hunter Audit LLP be reappointed as the auditor to the trust for the ensuing year.

Approved by the Trustees on and signed on their behalf by:

Edward Fitzmaurice

19 January 2022

…………………………………… E Fitzmaurice

Page 7

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF THE

THE EIGHTY EIGHT FOUNDATION

Opinion

We have audited the financial statements of The Eighty Eight Foundation (“the charity”) for the year ended 31 March 2021 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. 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 charity 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 charity’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 Trustees’ Annual Report and Financial Statements, 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.

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 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.

Page 8

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF THE

THE EIGHTY EIGHT FOUNDATION (continued)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 2, the Trustees are responsible for the preparation of financial statements which 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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.

Our assessment of the susceptibility of the charity's financial statements to material misstatement, including how fraud might occur, is considered to be low. This conclusion was reached after the consideration of the following:

Page 9

INDEPENDENT AUDITOR’S REPORT

TO THE TRUSTEES OF THE

THE EIGHTY EIGHT FOUNDATION (continued)

We designed our audit procedures to respond to identified audit risks, including non-compliance with laws and regulations (irregularities) that are material to the financial statements. Some of the specific procedures performed to detect irregularities, including fraud, are detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 this report

This report is made solely to the charity’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 charity’s Trustees 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 charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Rawlinson & Hunter 20 January 2022

Rawlinson & Hunter Audit LLP Statutory Auditor and Chartered Accountants

Eighth Floor, 6 New Street Square London, EC4A 3AQ

Rawlinson & Hunter Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 10

THE EIGHTY EIGHT FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR TO 31 MARCH 2021

Page Unrestricted Unrestricted
Funds Funds
2021 2020
£ £
Income from:
Donations (note 2) 15 3,442,500 3,583,750
Investments (note 3) 15 302,665 351,358
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Total income 3,745,165 3,935,108
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Expenditure on:
Charitable activities (note 4) 16 1,683,619 793,112
Raising funds (note 5) 17 108,552 92,635
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Total expenditure 1,792,171 885,747
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Net income before net gains/(losses) 1,952,994 3,049,361
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Net gain/(loss) on investments (note 6) 17 3,400,928 (864,160)
Realised (loss)/gain on currency exchange (10,442) 9,077
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
3,390,486 (855,083)
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Net movement in funds 12 5,343,480 2,194,278
Reconciliation of funds:
Resources brought forward at 1 April 2020 14,678,141 12,483,863
ÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄ
Resources carried forward at 31 March 2021 11 £ 20,021,621 £ 14,678,141
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ

There are no recognised gains or losses other than those included in the statement of financial activities.

All incoming resources and resources expended derive from continuing activities.

The notes on pages 13 to 19 form part of the notes of the financial statements

Page 11

THE EIGHTY EIGHT FOUNDATION

BALANCE SHEET

AT 31 MARCH 2021

Page Unrestricted Unrestricted
Funds Funds
2021 2020
£ £
Fixed Assets
Investments & cash under management (note 6) 17 20,763,097 15,238,600
Current Assets
Debtors (note 7) 17 10,315 12,286
Cash at bank (note 8) 18 1,033,694 1,906,013
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Total current assets 1,044,009 1,918,299
Liabilities
Creditors - amounts falling due within one year (note 9) 18 (661,467) (1,034,527)
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Net current assets 382,542 883,772
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Total assets less current liabilities 21,145,639 16,122,372
Creditors - amounts falling due after more than one year(note 10)
18		 (1,124,018) (1,444,231)
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Total net Assets £ 20,021,621 £ 14,678,141
ÍÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍÍ
Represented by:
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Unrestricted funds 10 £ 20,021,621 £ 14,678,141
ÍÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍÍ
Approved by the Trustees on
And signed on their behalf by:
Edward Fitzmaurice 19 January 2022
……………………………………
E Fitzmaurice

The notes on pages 13 to 19 form part of the notes of the financial statements

Page 12

THE EIGHTY EIGHT FOUNDATION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Page 2021 2020
£ £
Net Cash Flow from Operating Activities
Net incoming resources 10 5,343,480 2,194,278
Less: Investment income (302,665) (351,358)
Net (gain)/loss on investment assets 17 (3,400,928) 864,160
Increase in debtors 1,971 152,497
Decrease in creditors (693,273) (1,400,721)
Loss/(gain) on foreign currency 10,442 (9,077)
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Net cash generated from operating activities 959,027 1,449,779
Cash flows from investing activities
Investment income 15 302,665 351,358
Purchase of investments 17 (8,283,341) (7,883,430)
Proceeds from sale of investments 17 6,643,463 6,740,275
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Net cash (used in) investing activities (1,337,213) (791,797)
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Net (decrease)/increase in cash for the year £ (378,186) £ 657,982
ÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍ
Reconciliation of net cash flow to movement in net funds
Net cash resources at 1 April 2020 2,067,280 1,400,221
(Decrease)/Increase in cash (378,186) 657,982
Foreign exchange movements (10,442) 9,077
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
Net cash resources at 31 March 2021 £ 1,678,652 £ 2,067,280
ÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍ
Analysis of net funds:
Cash held in investment portfolio 17 644,958 161,267
Cash at Bank 18 1,033,694 1,906,013
ÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄ
£ 1,678,652 £ 2,067,280
ÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍ

The notes on pages 13 to 19 form part of the notes of the financial statements

Page 13

THE EIGHTY EIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR TO 31 MARCH 2021

1. ACCOUNTING POLICIES

The Eighty Eight Foundation (“the trust” or “the charity”), registered charity number 1149797, is based and administered in the United Kingdom. The registered address is Eighth Floor, 6 New Street Square, New Fetter Lane, London EC4A 3AQ. The nature of the charity’s operations and principal activities are set out in the Trustees’ Annual Report.

The financial statements 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 UK and Republic of Ireland (FRS 102) (“Charities SORP FRS 102”) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice. The trust constitutes a public benefit entity as defined by Charities SORP FRS 102.

The financial statements are presented in sterling which is the functional currency of the charity.

Status of Funds

The entire resources of the funds are unrestricted and the Trustees have complete discretion for their use in pursuance of the charity’s objectives.

Fixed asset investments

Investments are included at closing mid-market value at the balance sheet date. Realised gains and losses on investments are recognised on disposal of investments and any gain or loss on revaluation is taken to the Statement of Financial Activities (SOFA). The determination of any gains and losses is calculated by reference to the value of such assets at the beginning of the accounting period.

Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy.

Voluntary donations include donations under Gift Aid with the associated tax credits included when receivable. Interest from deposit accounts is included when receivable.

Resources expended

Expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure.

Direct charitable expenditure comprises grants and donations made during the year together with the recognition of certain commitments made by the Trustees. Governance costs are included within charitable expenditure . These costs relate to the general running of the trust as opposed to the management functions inherent to generating funds. Such costs can include external audit, legal advice and costs associated with constitutional and statutory requirements.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value, except where settlement is delayed, in which case the transaction is recognised at the present value of the settlement amount.

Page 14

THE EIGHTY EIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR TO 31 MARCH 2021

1. ACCOUNTING POLICIES (continued)

Foreign currency

Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the Balance Sheet date. Transactions denominated in foreign currencies are converted at the rate of exchange ruling at the date of the transaction. All translation differences are taken to the statement of financial activities as they arise.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised as expenditure.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. Cash held by investment managers for investing is treated as part of the investment portfolio.

Provisions

Provisions are recognised when the charity has an obligation at the Balance Sheet date as a result of a past event, it is probable that an outflow of economic benefit will be required in settlement and the amount can be reliably estimated.

Grants payable (note 11) are recognised at present value, where settlement is due over more than one year at the Balance Sheet date, there are no unfulfilled conditions under the control of the trust performance that would permit the trust to avoid making the future payment(s), settlement is probable and the effect of discounting is material. The discount rate used is a rate of 3% and is regarded by the Trustees as providing the most current available estimate of the cost of money reflecting the time value of money to the trust.

Taxation

The charity is not subject to any taxes on its charitable activities. Irrecoverable VAT is charged to the Statement of Financial Activities (“SOFA”) when the expenditure to which it relates is incurred and allocated.

Going Concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Covid-19 pandemic has created significant operational and financial pressures on the global economy and businesses in general. Having considered the contingency plans in place, the support to businesses announced by the UK Government and having reviewed the level of funds held and the level of income and expenditure, together with the level of reserves for the charity, the Trustees consider the adoption of the going concern basis in preparing these financial statements is appropriate.

Judgements and key sources of estimated uncertainty

In preparing these financial statements, the Trustees have to make judgements on how to apply the charity’s accounting policies and make estimates about the future. The critical judgement that has been made at arriving at the amounts recognised in the financial statements and the key area of estimation uncertainty that has a significant risk of causing a material adjustment to the carrying value of assets and liabilities in the next financial year is discussed below:

Page 15

THE EIGHTY EIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR TO 31 MARCH 2021

1. ACCOUNTING POLICIES (continued)

2. INCOME FROM DONATIONS Page 2021 2020
£ £
Donations 2,754,000 2,867,000
Gift Aid Relief 688,500 716,750
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
10 £ 3,442,500 £ 3,583,750
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
3. INCOME FROM INVESTMENTS
Quoted securities
UK and overseas quoted securities income 300,489 349,266
Deposit interest 2,489 3,221
Accrued interest (allowances) (313) (1,129)
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
10 £ 302,665 £ 351,358
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
4. EXPENDITURE ON CHARITABLE ACTIVITIES
The following grants were awarded to charitable institutions during the period to 31 March 2021:
UBS Optimus Foundation UK – Luminos ($350,000) 262,597 -
(Reg Charity No 1153537)
UBS Optimus Foundation UK - Shine_(Reg Charity No 1153537)_ 220,000 -
The Cares Family Limited_(Reg Charity No 1180638_) 200,000 150,000
The Silver Line_(Reg Charity No 1147330_) 185,000 100,000
Alone - €166,666 (Reg Charity No CHY 8259) 150,001 -
University of Cape Town Trust – R3,000,000_(Reg Charity No_ 803042) 145,200
The Integrated Education Fund_(Reg Charity No NIC104886_) 100,000 100,000
University of Cape Town Trust – R2,000,000_(Reg Charity No_ 803042) 96,800 -
Save The Children - Feltham_(Reg Charity No 213890_) 75,000 -
UBS Optimus Foundation UK – ARK Foundation 70,000 -
(Reg Charity No 1153537)

Page 16

THE EIGHTY EIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR TO 31 MARCH 2021

4. EXPENDITURE ON CHARITABLE ACTIVITIES (continued) 2021 2020
£ £
World Vision_(Reg Charity No 285908_) 52,500 52,500
Maggies (Reg Charity No SC024414) 33,000 -
UCD Foundation – €25,000_(Reg Charity No CHY12448)_ 22,717 -
The Photographers’ Gallery_(Reg Charity No 262548_) 21,250 -
Wendell Park (Reg Charity No 1109928) 16,000 -
Motor Neurone Disease Association_(Reg Charity No 294354)_ 10,000
Other UK donations 6,749 6,614
The Sutton Trust_(Reg Charity No 1146244)_ - 220,000
Reach Academy (Reg Charity No 1129683) - 44,000
Butler Gallery - €10,000_(Reg Charity No CHY12922_) - 8,463
Finance expense/(income) arising on discount of long term grant 31,618 55,880
commitments
(Gain)/Loss on revaluations of foreign currency commitments (40,582) 36,770
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Total grants committed at present value 1,657,850 774,227
New Philanthropy Capital 9,690 -
Trustees meeting expenses (550) 1,516
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
1,666,990 775,743
Governance Costs
Accountancy fees 9,773 10,100
Audit fees 6,700 7,100
Bank charges 156 169
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Total Charitable Activities 10 £ 1,683,619 £ 793,112
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ

Included in Other UK donations made above are charitable grants totalling £6,749 (2020 - £5,500) made to registered charities and £Nil (2020 - £1,114) made to unregistered charitable projects in the UK.

There are no employees other than the Trustees.

Page 17

THE EIGHTY EIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR TO 31 MARCH 2021

Page 2021 2020
£ £
5. EXPENDITURE ON RAISING FUNDS
Investment management fees 10 £ 108,552 £ 92,635
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
6. FIXED ASSET INVESTMENTS (AT MARKET VALUE)
Quoted investments within the United Kingdom 3,579,255 4,387,287
Quoted investments outside the United Kingdom 16,538,884 10,690,046
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
20,118,139 15,077,333
Cash held as part of portfolio 644,958 161,267
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Total investments and cash under management 11 £ 20,763,097 £ 15,238,600
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
Net realised gain on investments 797,805 51,690
Net unrealised gain/(loss) on investments 2,603,123 (915,850)
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Net gain/(loss) on investments 10 £3,400,928 £ (864,160)
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
Investments and cash under management
Market value at 1 April 2020 15,077,333 14,798,338
Additions at cost 8,283,341 7,883,430
Disposals (6,643,463) (6,740,275)
Net realised investment gain 797,805 51,690
Net unrealised investment gain/(loss) 2,603,123 (915,850)
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
Market Value at 31 March 2021 £ 20,118,139 £ 15,077,333
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
Historical Cost at 31 March 2021 £17,067,472 £15,406,411
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
7. DEBTORS
Accrued income 10,315 12,286
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
11 £ 10,315 £ 12,286
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ

Page 18

THE EIGHTY EIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR TO 31 MARCH 2021

Page 2021 2020
8. CASH AT BANK £ £
Barclays Wealth Reserve Account 143,638 296,962
Barclays Wealth Account 890,056 1,609,051
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
11 £ 1,033,694 £ 1,906,013
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
9. CREDITORS - Amount falling due within one year
Donations commitments (note 11) 618,929 988,669
Investment management fees 29,338 22,937
Investment purchases - 9,921
Accountancy fees 6,600 6,500
Audit fees 6,600 6,500
ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ
11 £ 661,467 £ 1,034,527
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
10. CREDITORS - Amount falling due after more than one year
Donations commitments (note 11) 11 £ 1,124,018 £ 1,444,231
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ

Included above is an amount of £414,080 (2020 - £430,613) due after more than 5 years by instalments.

11. CHARITABLE ACTIVITIES – GRANTS PAYABLE

During the year to 31 March 2019, commitments were granted to the Oxford University (£731,676) and UCD Foundation (£634,316) both payable over 4 years, of which £616,831 and £305,023 remain outstanding respectively.

12. RELATED PARTY TRANSACTIONS

During the year ended 31 March 2021 one Trustee donated funds totalling £2,754,000 to the charity (2020: £2,867,000) on which Gift Aid relief of £688,500 has been claimed (2020 – £716,750).

No Trustees received any remuneration during the year to 31 March 2021.

13. ULTIMATE CONTROLLING PARTY

The ultimate controlling party are the Trustees.

Page 19

THE EIGHTY EIGHT FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR TO 31 MARCH 2021

Page 2021 2020
14. FINANCIAL INSTRUMENTS £ £
The carry amounts of the charity’s financial instruments are as
follows:
Financial assets
Measured at fair value through SOFA:
- Fixed asset quoted investments 17 20,118,139 15,077,333
- Cash under management 17 644,958 161,267
- Cash at bank and in hand 18 1,033,694 1,906,013
Measured at amortised cost:
- Debtors 17 10,315 12,286
Financial liabilities
Measured at amortised cost
- Creditors & accruals due within one year 18 42,538 45,858
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ
The income, expenses, net gains and net losses
attributable to the charity’s financial instruments are
summarised as follows:
Income and expense
Measured at fair value through SOFA:
Net gains/(losses) (including changes in fair value) 10 3,390,486 (855,083)
ÍÍÍÍÍÍÍÍÍÍÍÍÍ ÍÍÍÍÍÍÍÍÍÍÍÍÍ