**THE LOVINGTON FOUNDATION REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
**Registered Charity No. 1151072**
**AZETS AUDIT SERVICES River House 1 Maidstone Road Sidcup Kent DA14 5RH**
## **THE LOVINGTON FOUNDATION**
## **CONTENTS**
||**Page**|
|---|---|
|Reference and administrative information|2|
|Report of the Trustees|3 - 4|
|Report of the Independent Examiner|5|
|Statement of Financial Activities|6 - 7|
|Balance Sheet|8|
|Notes to the Financial Statements|9 - 13|
**THE LOVINGTON FOUNDATION**
**LEGAL AND ADMINISTRATIVE INFORMATION**
|
**Trustees**|Annabelle M O Lupton|(Chair)|
|---|---|---|
||Lord J R C Lupton||
||Lady B M F Lupton||
||Camilla C Lupton||
||Victoria F Lupton||
||Sam A C Lupton||
|**Charity Number**|1151072||
|**Principal Office**|The Lovington Foundation||
||Lovington House||
||Ovington||
||Alresford||
||Hampshire||
||SO24 0RD||
|**Key Management**|The Trustees||
|**Independent Examiner**|M A Wilkes (FCA)||
||Azets Audit Services||
||River House||
||1 Maidstone Road||
||Sidcup||
||Kent||
||DA146 5RH||
|**Bankers**|National Westminster Bank plc||
||Bishopsgate||
||15 Bishopsgate||
||London||
||WC2A 3LH||
|**Solicitors**|Farrer & Co LLP||
||66 Lincoln’s Inn Fields||
||London||
||WC2A 3LH||
|**Investment Managers**|Tribe Impact Capital||
||52 Jermyn Street||
||London||
||SW1 6LX||
||Brown Shipley||
||2 Moorgate||
||London||
||EC2R 6AG||
2
## **THE LOVINGTON FOUNDATION**
## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024**
The Trustees present their report along with the financial statements of the charity for the year ended 31 March 2024. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ (FRS 102) in preparing the annual report and financial statements of the charity.
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 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.
## **Objectives and Activities**
The objectives of the Trust are such charitable purposes for the benefit of the public as the Trustees may decide.
The main causes for support of the Trust are:
- Social welfare in the UK, with a particular emphasis on young people and on education.
- The arts in the UK, also with a particular emphasis on how the Trust’s support could be used to improve peoples’ lives (especially the young) through education.
## **Public benefit**
The Trustees have taken account of the Charity Commission’s guidance on public benefit. The main activity undertaken to further the Trust’s purposes for the public benefit is the issuance of grants.
## **Achievements and Performance**
The Trustees are able to utilize the funds to make grants. Grants made during the year were £165,000 (2023 : £436,500).
## **Plans for the future**
As in the earlier years, the intention is to build up the assets of The Lovington Foundation. The financial statements are not published on a website.
## **Financial Review**
Income during the year was £292,786 (2023 : £235,752). Expenditure for the year totalled £180,531 (2023 : £452,388) which included grant payments of £165,000 (2023 : £436,500). At the year end, the Trust had net assets and funds of £2,443,696 (2023 : £2,315,521).
## **Investment Policy**
The Trust can invest monies not immediately required for its immediate purposes in or upon such investments, securities or property as may be thought it subject to conditions or consents as may for the time being be imposed or required by law. The Trustees believe the investments of the Trust have been acceptable.
## **Reserves policy**
The Trustees are aware that the only non-grant costs for the Trust are the Independent Examination and Investment Management fees, with grants being made based on investment performance and additional contributions. As such, the level of required reserves is low. The trustees therefore keep at least £40,000 in cash in a separate bank account to the Investment Portfolio, which is enough to cover more than a year’s costs.
At 31 March 2024, the unrestricted funds totalled £2,443,696 (2023: £2,315,521).
3
**THE LOVINGTON FOUNDATION**
**REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024**
## **Risk Management**
The Trustees have reviewed areas where potential and major risks may arise to the Trust in accordance with the statement of recommended practice and have established systems and procedures to manage those risks. The Trustees consider there to be no significant areas of concern.
## **Going Concern**
The Trust’s Investment Portfolio has coped well with the ongoing challenges presented by economic instability and the war in Ukraine. The trust maintains significant cash balances, with virtually no expenses, as well as receiving significant donations from Lord Lupton CBE. As a result, and following their discussions, the Trustees are satisfied that it is appropriate to prepare the financial statements on a going concern basis.
## **Governance and Management**
The Lovington Foundation is an incorporated charitable trust established by Declaration of Trust dated 28 February 2013. The Foundation was approved by the Charity Commission on 5 March 2013 under number 1151072.
The Trust was established by an initial gift from James Lupton CBE.
The Trustees are responsible for the strategic direction and policy of the Trust. New Trustees are appointed by the existing Trustees. There are a minimum number of Trustees set out in the Trust Deed as two, with a maximum of eight. The Trustees must hold at least two meetings each year.
## **Trustees’ responsibilities in relation to the financial statements**
The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity 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 Trust and the incoming resources and application of resources, including the income and expenditure, of the Trust for that period.
In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards and statements of recommended practice have been followed subject to any departures disclosed and explained in the financial statements; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust’s transactions and disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees on 9 September 2024 and signed on their behalf by:
**Sam A C Lupton Trustee**
4
**THE LOVINGTON FOUNDATION**
## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES**
I report to the Trustees on my examination of the accounts of the Trust for the year ended 31 March 2024, which are set out on pages 6 to 13.
The report is made solely to the charity’s Trustees, as a body, in accordance with Regulation 31 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity’s Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity’s Trustees as a body, for my work, for this report, or for the statement I have made.
## **Responsibilities and basis of report**
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **M A Wilkes (FCA) For and on behalf of Azets Audit Services**
Azets River House 1 Maidstone Road Sidcup Kent DA14 5RH
Date: 23 September 2024
5
## **THE LOVINGTON FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024**
|**Total**
**Notes**
**2024**
**£**
**Income from:**
Donations
210,000
Tax recoverable on gift aid
54,442
Investment income
28,344
Other income
-
__________
**Total**
292,786
__________
**Expenditure on:**
Raising funds
10,551
Charitable activities
169,980
__________
**Total**
2
180,531
__________
Net income / (expenditure) before
gains/(losses on investments
112,255
Net gains/(losses) on investments
6
15,920
__________
**Net movement in funds**
128,175
Total funds at 1 April 2023
2,315,521
____________
**Total funds at 31 March 2024**
2,443,696
___________|**Total**
**2023**
**£**
-
210,000
25,352
400
__________
235,752
__________
12,447
439,941
__________
452,388
__________
(216,636)
(130,462)
__________
(347,098)
2,662,619
____________
2,315,521
|
|---|---|
All funds are unrestricted and relate to continuing activities.
All activities in 2024 relate to unrestricted funds.
6
## **THE LOVINGTON FOUNDATION**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024**
## **Comparative Statement of financial Activities for the year ended 31 March 2023**
|**Unrestricted**
**Restricted**
**Notes**
**2023**
**2023**
**£**
**£**
**Income from:**
Donations
-
-
Tax recoverable on gift aid
210,000
-
Investment income
25,352
-
Other income
400
-
__________
__________
**Total**
235,752
-
__________
__________
**Expenditure on:**
Raising funds
12,447
-
Charitable activities
99,941
340,000
__________
__________
**Total**
2
112,388
340,000
__________
__________
Net income / (expenditure) before
gains/(losses on investments
123,364
(340,000)
Net gains/(losses) on investments
6
(130,462)
-
__________
__________
**Net movement in funds**
(7,098)
(340,000)
Total funds at 1 April 2022
2,322,619
340,000
____________
___________
**Total funds at 31 March 2023**
2,315,521
-
___________|**Total**
**2023**
**£**
-
210,000
25,352
400
__________
235,752
__________
12,447
439,941
__________
452,388
__________
(216,636)
(130,462)
__________
(347,098)
2,662,619
____________
2,315,521
|
|---|---|
All funds are unrestricted and relate to continuing activities.
7
## **THE LOVINGTON FOUNDATION**
## **BALANCE SHEET AS AT 31 MARCH 2024**
|**Note**
**2024**
**£**
**FIXED ASSETS**
Investments
6
**CURRENT ASSETS**
Debtors – Other debtors
52,500
Cash at bank and in hand
56,725
__________
109,225
**CREDITORS**: amounts
falling due within one year -
Accruals
7
(8,120)
__________
**NET CURRENT**
**(LIABILITIES) / ASSETS**
**TOTAL NET ASSETS**
**FUNDS**
Restricted Funds
8
Unrestricted Funds|**2023**
**£**
**£**
2,342,591
_____________
-
50,144
__________
50,144
(138,112)
__________
101,105
_____________
2,443,696
_____________
-
2,443,696
_____________
2,443,696
_____________|**£**
2,403,489
_____________
(87,968)
_____________
2,315,521
|
|---|---|---|
|||_____________
-
2,315,521
_____________
2,315,521
_____________|
Approved by the Board of Trustees on 9 September 2024 and signed on its behalf by
**Annabelle M O Lupton Trustee**
**Sam A C Lupton Trustee**
8
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **THE LOVINGTON FOUNDATION**
## 1. **ACCOUNTING POLICIES**
## a) **Basis of preparation**
The Lovington Foundation is an unincorporated Charitable Trust established by Declaration of Trust dated 28 February 2013. The Foundation was approved by the Charity Commission on 5 March 2013 under number 1151072. The address of the principle office is on the reference and administrative information page and the nature of the charities operations and its activities are set out in the Trustees’ report.
The charity constitutes a public benefit entity as defined by FRS 102. 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 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 financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## b) **Going Concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
## c) **Income**
Donations, legacies and similar income are shown in the accounts when receivable and the value of the incoming resources can be measured with sufficient reliability.
Investment income is accounted for in the period in which the charity is entitled to receipt.
## d) **Expenditure**
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. The irrecoverable element of VAT is included with the item of expense to which it relates. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Costs of raising funds are those costs incurred in attracting voluntary income.
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them.
9
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **THE LOVINGTON FOUNDATION**
## 1. **ACCOUNTING POLICIES (Continued)**
## e) **Support costs allocation**
- Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out the Head Office. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of rising funds and expenditure on charitable activities on a basis consistent with use of the resources.
- Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.
- The analysis of these costs is included in note 4.
## f) **Fixed asset investments**
Investments are stated at closing market value at the balance sheet date. Any gains or losses on revaluation and disposal are shown in the Statement of Financial Activities.
Gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and purchase cost. Unrealised gains and losses are calculated as the difference between the market value at year end and opening market value (or purchase date if later).
## **g) 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 in expenditure.
## **h) Cash at bank and in hand**
Cash at bank and in hand are short-term, highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of changes in value.
## i) **Taxation**
T The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and it is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. The Charity is unable to recover Valued Added Tax (VAT) incurred on. The amount of VAT that cannot be recovered is included within the underlying cost to which it relates.
## j) **Funds**
Unrestricted general funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.
Restricted funds are funds to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.
10
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **THE LOVINGTON FOUNDATION**
## 1. **ACCOUNTING POLICIES (CONTINUED)**
## k) **Judgements**
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
## **2. ANALYSIS OF EXPENDITURE**
|**Direct**
**Costs**
**£**
**Grant**
**funding of**
**activities**
**£**
Raising funds
10,551
-
Charitable activities:
Arts and Culture
Education
Other charitable activities
-
-
-
80,000
30,000
55,000
__________
__________
10,551
165,000
__________
__________|**Support**
**costs**
**£**
-
1,660
1,660
1,660
__________
4,980
__________|**Total**
**2024**
**£**
10,551
81,660
31,660
56,660
__________
180,531
__________|**Total**
**2023**
**£**
12,447
351,147
47,647
41,147
__________
452,388
__________|
|---|---|---|---|
## **3. GRANTS PAYABLE**
|**Registered**
**Charity No**
Art History Link-Up
1172792
Artis Foundation
1174635
Contemporary Art Society
Creative Opps
Dulwich Picture Gallery
Escape2Make
1183572
Free to be Kids
1165678
Imperial War Museum
Jacari
1177211
Just Finance Foundation
1172050
The Linacre Institute
1156821
Lincoln College – VacProj
Lighthouse
Museum of Modern Art Ltd
Sister System
1177669
Triangle Adventure Playground
303145
Wipers Youth
Yehudi Menuhin School
312010|**Total**
**2024**
**£**
20,000
10,000
-
-
50,000
-
15,000
-
10,000
10,000
10,000
10,000
10,000
-
10,000
10,000
-
-
__________
165,000
**__________**|**Total**
**2023**
**£**
10,000
6,500
170,000
5,000
-
15,000
15,000
10,000
10,000
-
10,000
-
-
170,000
-
-
5,000
10,000
__________
436,500
**__________**|
|---|---|---|
11
## **THE LOVINGTON FOUNDATION**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## **4. SUPPORT COSTS**
|Independent Examiner Fees
-
Prior year under provision|**2024**
**£**
4,980
-
**___________**
4,980
|**2023**
**£**
3,420
21
**___________**
3,441
|
|---|---|---|
## **5. TRUSTEES’ AND OTHER EMPLOYEES**
No staff were employed by the charity during the year. No Trustees received any remuneration or other benefits in the year (2023 - £Nil). There were no expenses reimbursed to Trustees.
## **6. INVESTMENTS**
|**2024**
**£**
Market value at 1 April 2023
2,271,654
Additions at cost
1,166,606
Disposals at market value
(1,377,929)
Net unrealised gain / (loss) in year
15,920
____________
Market value at 31 March 2024
2,076,251
____________
Cash held within the investment portfolio
266,340
**____________**
Total value of portfolio at 31 March 2024
2,342,591
_____________
Investments at market value comprised:
Equity
931,443
Bonds / Fixed Interest
547,691
Alternatives
597,117
Cash
266,340
____________
2,342,591
____________
Historical cost at 31 March 2023
2,176,500
_____________
The following each represent more than 5% of the total market value of investments
**2024**
**£**
Janus Henderson Sustainable Equity
-
_____________|**2023**
**£**
2,510,160
837,369
(945,413)
(130,462)
____________
2,271,654
____________
131,835
**____________**
2,403,489
_____________
898,567
935,754
437,333
131,835
____________
2,403,489
____________
2,331,920
_____________
**2023**
**£**
125,086
_____________|
|---|---|
12
## **THE LOVINGTON FOUNDATION**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024**
## 7. **CREDITORS**
|Other creditor
Grants payable
Accruals|**2024**
**£**
-
-
8,120
**___________**
8,120
|**2023**
**£**
126,942
5,000
6,170
**___________**
138,112
|
|---|---|---|
8. **RESTRICTED FUNDS**
|**Current year**
None
**Prior year**
**Balance at**
**1.4.22**
**Expenditure**
**£**
**£**
Arts Grant Fund
340,000
(340,000)
|**Balance at**
**31.3.23**
**£**
-
|
|---|---|
The Arts Grant Fund related to a donation from Lord Lupton. The funds were used for grants to art charities in the year to 31 March 2023.
## **9. RELATED PARTIES**
Lady Lupton, a trustee of the charity is also a trustee of the following organisations that received grants:
- Contemporary Art Society - Grant paid £nil (2023 - £170,000);
- Museum of Modern Art Ltd - Grant paid £nil (2023 - £170,000).
Total donations of £210,000 without conditions were received from related parties during the year.
13