THE CYRIL TAYLOR CHARITABLE FOUNDATION (A company limited by guarantee) 

ANNUAL REPORT AND FINANCIAL STATEMENTS 

For the year ended 31 December 2020 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **CONTENTS** 

||**Page**|
|---|---|
|Reference and Administrative Details|3|
|Report of the Trustees (including Strategic Report)|4 – 8|
|Statement of Trustees' Responsibilities|9|
|Independent Auditor's Report|10 - 12|
|Statement of Financial Activities|13|
|Balance Sheet|14|
|Statement of Cash Flows|15|
|Accounting Policies|16 - 19|
|Notes to the Financial Statements|20 – 26|



Page | 2 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **REFERENCE AND ADMINISTRATIVE DETAILS** 

Trustees J M Berry A J Brookes J A Burg P Egan W L Gertz E Hawksworth J Husband C D Joseph T O Kiechle R W Maas M S Rasch C Tucker D G Wilson P Woodthorpe Company Secretary D G Wilson Principal Office & 37 Queen's Gate Registered Office London SW7 5HR Foundation Number 1152058 (England and Wales) Company Number 08524472 (England and Wales) Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Investment Managers Vermeer Partners Quilter Cheviot 130 Jermyn Street One Kingsway London London SW1Y 4UR WC2B 6AN Fransad Gestion SA Fidelity Investments Place de l'Université 7 Operations Company Inc. Case Postale 5054 82 Devonshire Street 1211 Genève 11 Boston MA 02109 Legal Advisors Loeb, Block & Partners LLP Penningtons Manches Cooper LLP 505 Park Avenue 125 Wood Street New York London NY10022 EC2V 7AW 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **REPORT OF THE TRUSTEES** 

The Trustees present their annual report together with the financial statements and auditor's report of the charitable company for the year 1 January 2020 to 31 December 2020. The report serves the purposes of both a Trustees' report, and a Directors' report under company law. 

## **Structure, Governance and Management Governing document** 

The Cyril Taylor Charitable Foundation (hereinafter referred to as the Foundation) registered in England and Wales under charity registration number 1152058, is controlled by its governing document, the memorandum and articles of association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The charitable company was incorporated on 10 May 2013 under registration number 08524472. 

## **Organisational structure** 

The Foundation Trustees, who are also directors for the purposes of company law, are responsible for the general control and management of the Foundation. The Trustees give their time freely and receive no remuneration or other financial benefits. The Chairman of the Trustees is Stephen Rasch, who was appointed for an initial three year term extended for a further year which expires in July 2021. The Foundation is administered on a daily basis by Debbie Wilson who is also a trustee and employed by American Institute For Foreign Study (UK) Limited (AIFS (UK) Limited). AIFS (UK) Limited is an indirect subsidiary of AIFS Inc., a company that specialises in educational and cultural exchange. William Gertz, a trustee of the Foundation, is also the chairman of AIFS Inc. Debbie Wilson's time and that of a member of finance staff from AIFS (UK) Limited have been donated to the Foundation. Trustees currently meet once a year, but other meetings are convened when required. 

## **Appointment, induction and training of Trustees** 

The chairman can appoint a new trustee if a vacancy arises. There must be a minimum of 6 and a maximum of 16 Trustees. There are currently 14 Trustees. The level of competence required of a trustee is explained in its memorandum and articles of association. New Trustees are inducted by an existing trustee, briefing from the chairman and trained through regular attendance at meetings as well. All Trustees undertook training at the annual trustees meetings held in July 2018 and July 2019 and annually receive the Essential Trustee published by the Charity Commission. 

## **Third party indemnity provision for Trustees** 

Qualifying third party indemnity provision is in place for the benefit of all Trustees (who are also directors) of the Foundation at the reporting date and was in place throughout the twelve month period. 

## **Related parties and co-operation with other organisations** 

The Cyril Taylor Charitable Foundation has been a major donor to Richmond, The American International University in London ('Richmond University'). Richmond University occupies a site on Richmond Hill (Richmond upon Thames) owned by AIFS Inc. as well as two sites in Kensington also owned by AIFS Inc.  Richmond vacated the Kensington sites in April 2021 and now only occupies the Hill site as a lease holder. 

As a result of Sir Cyril Taylor’s death, the Foundation became entitled to receive the bulk of his estate. This included 99.9% of AIFS Inc A Shares, however due to the nature of the relationship the shares represent an investment in the Foundation. The Foundation receives dividends from AIFS Inc. 

## **Risk management** 

The Trustees have a duty to identify and review the risks to which the Foundation is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. A number of internal controls have been implemented to provide assurance against fraud and error. The Trustees also consider variability of investment returns, to constitute towards the financial risk of the Foundation. This is mitigated by retaining expert investment managers and having a diversified investment portfolio. 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **REPORT OF THE TRUSTEES (CONTINUED)** 

Due to the nature of activities that AIFS Inc. has in the student educational and cultural exchange sector, the Covid-19 pandemic has reduced the company’s ability to pay dividends to the Foundation for 2021 and 2022.  As a result of the impact Covid-19 will have on the Foundation’s fixed asset investment in AIFS Inc., the Trustees engaged Duff & Phelps to provide a valuation of AIFS Inc. during the pandemic. This valuation report was carried out in July 2020 and based on financial projections at 31 July 2020 and a 99.9% shareholding. Duff & Phelps have valued AIFS Inc. in the range of £156,372,454 to £163,759,553. The average value of £160,066,003 has been used to value AIFS Inc. at 31 December 2020 and is shown as part of the fixed asset investments on the balance sheet.  The fall in valuation of the shareholding in AIFS Inc. is considered a significant risk for the Foundation. 

## **Objectives and activities Objectives and aims** 

The objectives of this Foundation, as set out in the Foundation’s memorandum and articles of association, are as follows: 

“To further such charitable purposes and to make donations to such charitable institution, or institutions, at such time, or times, and in such manner as the directors may, in their absolute discretion, think fit. 

Without prejudice to the generality of the foregoing, to advance education of the students of Richmond, The American International University in London by the provision of facilities and equipment, faculty and academic programmes, scholarships, endowments and special educational programmes. 

For the public, by enabling citizens of the UK and other countries to participate in educational exchanges between those countries and support charities which promote international educational exchange and to make donations to such institutions at such time or times and in such manner as the directors may in their absolution discretion think fit.” 

On his death in 2018, Sir Cyril Taylor bequeathed the bulk of his Estate to the Foundation to invest to generate income for the Foundation.  The administration of Sir Cyril’s Estate has not yet been completed so the full and final amount of the bequest cannot yet be quantified. The estimated net fair value after fees of the remaining legacy as at 31 December 2020 totals £3,145,937. The major asset of the Estate was the holding of A shares in AIFS Inc which constitutes a 99.9% shareholding in that company. However, the rights of the B shareholders restrict the ability of the Foundation to dispose of its shares in the company, which is why the A shares in AIFS Inc. has been held for investment purposes only and therefore shown on the balance sheet as a fixed asset investment. The shares bequeathed to the Foundation were valued at £195,451,315 as at 29 January 2018 (see note 10). Although beneficial ownership rests with the Foundation, the title to the shares is held by The Cyril J. H. Taylor Capital Trust, New York. 

## **Strategic report** 

## **Achievement and performance** 

During the year ended 31 December 2020, the Trustees made charitable grants of £1,984,331 (2019: £4,315,024), of which £1,600,000 (2019: £3,900,000) was made to Richmond University. The donations made reflect the objective to donate to institutions as Trustees think fit (and which support education, local work with vulnerable people, supporting research into how to improve educational opportunities etc).  The trustees understand that Richmond University now considers itself financially secure, independent, more resilient and better equipped to deliver its vision and mission than it has been for decades. 

## **Public benefit** 

The Trustees, as required charity law, have paid due regard to the Charity Commission’s guidance on providing public benefit while reviewing the Foundation’s aims and objectives, and while deciding what activities the Foundation should undertake and how the donations made will help the Foundation meet its objectives. 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **REPORT OF THE TRUSTEES (CONTINUED)** 

## **Financial review** 

The net income before gains on investments for the year ended 31 December 2020 is £7,927,468 (2019:  £5,037,635). Income from donations and legacies totalled £10,024,353 (2019: £7,462,980), this was mainly due to recognising a further portion of the remaining legacy with a value of £9,979,964. Income from investments, which includes dividends received totalled £186,617 (2019: £2,493,033). No dividends were received from AIFS Inc. during the year (2019: £2,328,832). Total expenditure for the year was £2,283,502 (2019: £4,918,378), this includes grants made to institutions totalling £1,984,331 (2019: £4,315,024), the largest of which being made to Richmond University of £1,600,000 (2019: £3,900,000). Total expenditure also includes £100,706 (2019: £476,051) of legal and professional fees in respect of the work involved in dealing with the probate and legacies receivable from Sir Cyril Taylor’s estate. The total loss on investments was £69,012,795 (2019: £19,683,110 gain) including a net loss on the investment of AIFS Inc., amounting to £69,285,958 (2019: £19,874,478 gain) and a net gain on listed fixed asset investments of £273,163 (2019: £191,368 loss). 

The Covid 19 epidemic will significantly reduce the Foundation’s income for 2021 and 2022. The business of AIFS Inc is largely the arrangement of international cultural and educational exchanges for students and young adults, so ongoing travel restrictions, border closures and visa suspensions have severely damaged its operations. Whilst it is a strong business, the lifting of travel restrictions to the degree needed to enable groups of students to travel internationally and the restoration of public confidence in such travel is likely to take some time. Accordingly, AIFS Inc. is unlikely to be in a position to pay dividends to the Foundation in 2021 or 2022. Similarly, the income from the Foundation’s investment portfolio of listed investments in the current year is likely to be substantially lower than in the previous year as companies recover gradually from the effects of the virus. 

The Trustees are nevertheless of the view that the financial position of the Foundation remains strong. 

## **Reserves policy** 

The trustees have been advised that the shares in AIFS Inc bequeathed from Sir Cyril Taylor constitute permanent endowment.  The trustees have resolved to regard the remainder of the bequest from Sir Cyril as expendable endowment not available for distribution.  The trustees do not see a need at the present time to build up further reserves. 

As at 31 December 2020, the Foundation has total reserves of £179,796,871 (2019: £240,882,198) of which £160,066,003 (2019: £229,351,961) was represented by the permanent endowment fund. 

Following the death of Sir Cyril Taylor, his donations to the Foundation have ceased leaving the Foundation reliant on its investments to continue to pay substantial dividends to enable the Foundation to pursue its objectives. 

During the year to 31 December 2020, the investment income of the Foundation was insufficient to fund its grants and donations and it has decided to exercise caution as to the extent of donations until the medium term effect of the Covid 19 epidemic becomes clearer. 

This will include the remaining legacies that are yet to be transferred to the Foundation, dividends from AIFS Inc. and fixed asset investment growth. As mentioned earlier, it is unlikely AIFS Inc. will be able to pay dividends in 2021 or 2022 and fixed asset investment growth will take time to recover from the effects of the pandemic. Current general unrestricted reserves are £19,730,868 (2019: £11,530,237). The increase was mainly due to recognising part of the remaining legacy at a transfer value of £9,979,964. 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **REPORT OF THE TRUSTEES (CONTINUED)** 

## **Investment policy and objectives** 

The objective of the Foundation's investment policy is to achieve a rising income for use in accordance with the Foundation's principal objective. The value of unquoted fixed asset investments decreased by £58,926,614, this was due mainly to the fall in value of AIFS Inc., as the valuation undertaken in July 2020 considered the effect of Covid 19. Unrealised gains on the quoted fixed asset investments totalled £302,342 during the year and this is considered a good result compared to current interest rates. The revaluation of AIFS Inc., amounted to an unrealised loss of £62,205,226 (2019: £27,794,873 gain) and a foreign exchange loss of £7,080,732 (2019: £7,920,395) for the year ended 31 December 2020. 

The investment committee will continue reviewing annually with investment managers. Through a diversified portfolio Trustees hope to contain any losses and be poised for growth. Investment performance is measured against certain benchmark indices. The Foundation only trades in ethical securities. 

## **Grant making policy and fundraising** 

The Trustees apply the funds of the Foundation at their discretion and in accordance with the charitable purpose and objectives of the Foundation. The grants committee is particularly interested in grant requests from charities which offer scholarships and special educational programmes for young people and students; as well as from those whose activities enhance the life chances of young people and students who may be socially or financially disadvantaged. The grants committee, which is made up of 10 Trustees, and meets once a year typically in May, receives proposals for grants both from charities and from the other Trustees. The proposals are then evaluated against its criteria above, and recommendations made to the main Board for approval at its annual meeting. The Foundation does not undertake any fundraising activities and it uses no third parties to do so either. Refer to note 5 for details of causes supported during the year to 31 December 2020. 

## **Pay policy for senior staff** 

The directors consider the board of directors, who are the Foundation’s Trustees, the key management personnel of the Foundation in charge of directing and controlling, running and operating the Foundation on a day to day basis. All directors give up their time freely and no director received remuneration in the year. There is no senior management team. 

## **Principal risks and uncertainties** 

The main form of financial risk faced by the Foundation is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors, and adverse foreign exchange movements. This is mitigated by investing in a diversified investment portfolio. 

There is also a short term risk both to income and investment values created by the Covid 19 epidemic. The Foundation is not able to significantly mitigate this risk but believes that it has sufficient resources to alleviate it. 

## **Plans for future periods** 

As mentioned above, following the death of Sir Cyril Taylor, the Foundation is reliant on the generation of income from its investment portfolio, particularly from AIFS Inc, to enable the Foundation to pursue its objectives. It expects income in 2021 and 2022 to be significantly impacted but to recover thereafter. 

## **Going concern** 

The Trustees assess whether the application of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Foundation to continue as a going concern. The Trustees make this assessment in respect of a period of at least 12 months from the date of authorisation for issue of these financial statements and have concluded that as the Foundation has adequate resources to continue in operational existence and for the foreseeable future there are no material uncertainties about the Foundation’s ability to continue as a going concern. Thus, they continue to adopt the going concern basis. 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **REPORT OF THE TRUSTEES (CONTINUED)** 

In making the assessment the Trustees have considered that although AIFS Inc. is unlikely to be able to pay dividends to the Foundation in 2021 or 2022 and the income from other investments is likely to be substantially lower than in previous years, as companies recover gradually from the effects of the virus the Foundation will be able to withstand the impact of this by reducing its expenditure. Any grants payable from the Foundation are on a discretionary basis and their quantum is reviewed annually. The Foundation has unrestricted general reserves, that are held in highly liquid assets, totalling £19,730,868 as at 31 December 2020 and the trustees consider that this level of reserves is adequate for the needs of the Foundation. 

## **Post balance sheet events** 

The Covid-19 epidemic is likely to significantly reduce the Foundation’s income for 2021 and 2022. The business of AIFS Inc. is largely the arrangement of international cultural and educational exchanges for students and young adults, so ongoing travel restrictions, border closures and visa suspensions have severely damaged its operations. 

## **Auditor** 

In March 2021 RSM UK Audit LLP resigned as auditors and Buzzacott LLP were appointed. The trustees resolved that Buzzacott LLP be appointed auditor with effect from 20 April 2021, in accordance with the provisions of the Companies Act. Buzzacott LLP have expressed their willingness to continue in office. 

In so far as the Trustees are aware at the time of approving our Trustees’ annual report: 

- there is no relevant audit information of which the charitable company's auditor is unaware; and 

- • 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 charitable company’s auditor is aware of that information. 

The Report of the Trustees, which includes the directors report as required by company law and the strategic report, is approved by the Trustees in their capacity as the directors. 

## **ON BEHALF OF THE BOARD** 

…………………………. …………………………. M S Rasch Date Trustee 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

For the year ended 31 December 2019 

The Trustees (who are also directors of The Cyril Taylor Charitable Foundation for the purposes of company law) 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). 

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 these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material 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 charitable company will continue in business. 

The Trustees are responsible for keeping proper accounting records that 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. 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. 

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Foundation/company's website.  Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

## **BY ORDER OF THE BOARD OF TRUSTEES** 

…………………………. …………………………. M S Rasch Date Trustee 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CYRIL TAYLOR CHARITABLE FOUNDATION** 

## **Opinion** 

We have audited the accounts of The Cyril Taylor Charitable Foundation (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and notes to the accounts. 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 accounts: 

- ♦ give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its income and expenditure for the year then ended; 

- ♦ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- ♦ 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 accounts 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 accounts 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 accounts, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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 other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon.  The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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

We have nothing to report in this regard. 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CYRIL TAYLOR CHARITABLE FOUNDATION (CONTINUED)** 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- ♦ the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- ♦ the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements 

## **Matters on which we are required to report by exception** 

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

- ♦ adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- ♦ the financial statements are not in agreement with the accounting records and returns; or 

- ♦ certain disclosures of trustees’ remuneration specified by law are not made; or 

- ♦ we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

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

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company and determined that the most significant are the Companies Act 2006, the Charities SORP FRS 102 and the Charities Act 2011. 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CYRIL TAYLOR CHARITABLE FOUNDATION (CONTINUED)** 

- We understood how the charitable company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal, compliance and governance procedures. We corroborated our inquiries through our review of trustee meetings and papers provided to the trustees. 

- We assessed the susceptibility of the charitable company’s financial statements to material misstatements, including how fraud might occur. Audit procedures performed by the engagement team included: 

   - Identifying and assessing the design and implementation of controls in place to prevent and detect fraud; 

   - Challenging assumptions and judgments made by management and the trustees in its significant accounting estimates; 

   - Identifying and testing journal entries, in particular adjustments made at the year-end for financial statement preparation; and 

   - Assessing the extent of compliance with relevant laws and regulations by reviewing correspondence with regulators and legal advisors. 

A further description of our responsibilities for the audit of the accounts 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 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. 

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

………………………………… Date 

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## THE CYRIL TAYLOR CHARITABLE FOUNDATION 

STATEMENT OF FINANCIAL ACTIVITIES (including income and expenditure account) For the year ended 31 December 2020 

|_Notes_<br>INCOME FROM:<br>1<br>Investments<br>2<br>TOTAL INCOME<br>EXPENDITURE ON:<br>Raising funds<br>3<br>Charitable activities<br>4<br>TOTAL EXPENDITURE<br>NET INCOME/(EXPENDITURE) AND NET<br>MOVEMENT IN FUNDS BEFORE GAINS AND<br>LOSSES ON INVESTMENTS<br>Net loss on sale of investment<br>properties<br>9<br>Net gains/(loss) on other  investments<br>10<br>NET INCOME/(EXPENDITURE)<br>Reconciliation of funds:<br>Total funds brought forward<br>TOTAL FUNDS CARRIED FORWARD<br>11<br>Donations and legacies|Unrestricted<br>Funds<br>2020<br>£<br>10,024,353<br>186,617<br>10,210,970<br>84,311<br>2,199,191<br>2,283,502<br>7,927,468<br>-<br>273,163<br>8,200,631<br>11,530,237<br>19,730,868|Endowment<br>Funds<br>2020<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(69,285,958)<br>(69,285,958)<br>229,351,961<br>160,066,003|Total<br>Total<br>Year ended<br>31 December<br>2020<br>2019<br>£<br>£<br>10,024,353<br>7,462,980<br>186,617<br>2,493,033<br>10,210,970<br>9,956,013<br>84,311<br>29,445<br>2,199,191<br>4,888,933<br>2,283,502<br>4,918,378<br>7,927,468<br>5,037,635<br>-<br>(127,000)<br>(69,012,795)<br>19,683,110<br>(61,085,327)<br>24,593,745<br>240,882,198<br>216,288,453<br>179,796,871<br>240,882,198|
|---|---|---|---|



The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities. 

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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

BALANCE SHEET At 31 December 2020 

Company number: 08524472 Registered charity number: 1152058 

|_Notes_<br>FIXED ASSETS<br>Investment properties<br>9<br>Investments<br>10<br>CURRENT ASSETS<br>Sundry debtors<br>Cash at bank and in hand<br>CURRENT LIABILITIES<br>CREDITORS: Amounts falling due<br>within one year<br>Trade creditors<br>Accruals<br>NET CURRENT ASSETS<br>NET ASSETS<br>THE FUNDS OF THE FOUNDATION:<br>ENDOWMENT FUNDS<br>11<br>UNRESTRICTED FUNDS<br>General Funds<br>11<br>TOTAL FUNDS<br>11|2020<br>£<br>-<br>178,654,041<br>10,828<br>1,218,347<br>1,229,175<br>14,965<br>71,380<br>86,345|2020<br>2019<br>2019<br>£<br>£<br>£<br>-<br>237,580,655<br>178,654,041<br>237,580,655<br>5,331<br>3,427,647<br>3,432,978<br>465<br>130,970<br>131,435<br>1,142,830<br>3,301,543<br>179,796,871<br>240,882,198<br>160,066,003<br>229,351,961<br>19,730,868<br>11,530,237<br>179,796,871<br>240,882,198|
|---|---|---|



The financial statements on pages 13 to 26 were approved by the Trustees and authorised for issue on …………………......………... and are signed on their behalf by: 

…………………………. 

M S Rasch Trustee 

The trustees have been advised that the shares in AIFS Inc bequeathed from Sir Cyril Taylor constitute permanent endowment. The trustees have resolved to regard the remainder of the bequest from Sir Cyril as expendable endowment not available for distribution. 

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## THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## STATEMENT OF CASH FLOWS 

For the year ended 31 December 2020 

|_Notes_<br>**CASH FLOWS FROM OPERATING ACTIVITIES**<br>Net (expenditure)/ income for the financial year<br>Adjustments for:<br>Interest receivable<br>2<br>Dividend income<br>2<br>Loss on sale of properties<br>9<br>Net loss/(gains) on investments<br>(Increase)/decrease in debtors<br>(Decrease)/increase in creditors<br>Donation of investments from Sir Cyril Taylor's Estate<br>1<br>**NET CASH USED IN OPERATING ACTIVITIES**<br>**CASH FLOWS FROM INVESTING ACTIVITIES**<br>Purchase of investments<br>Proceeds from sale of properties<br>Proceeds from sale of investments<br>Movement in investment cash account<br>10<br>Interest<br>2<br>Dividends received<br>2<br>**NET CASH GENERATED FROM INVESTING ACTIVITES**<br>**NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS**<br>CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR<br>TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR<br>**ANALYSIS OF CHANGE IN NET FUNDS**<br>**1 January**<br>**2020**<br>**£**<br>Cash<br>3,427,647|Year ended<br>Year ended<br>2020<br>2019<br>£<br>£<br>(61,085,327)<br>24,593,745<br>(81,387)<br>(136,986)<br>(105,230)<br>(2,356,047)<br>-<br>127,000<br>69,012,795<br>(19,683,110)<br>(5,497)<br>2,212<br>(45,090)<br>93,853<br>(9,979,964)<br>(7,424,115)<br>(2,289,700)<br>(4,783,448)<br>(10,456,362)<br>-<br>-<br>5,673,000<br>8,195,686<br>-<br>2,154,459<br>10,121<br>81,387<br>136,986<br>105,230<br>2,356,047<br>80,400<br>8,176,154<br>(2,209,300)<br>3,392,706<br>3,427,647<br>34,941<br>1,218,347<br>3,427,647<br>**Cash Flows**<br>**31 December**<br>**2020**<br>**£**<br>**£**<br>(2,209,300)<br>1,218,347|
|---|---|



Page | 15 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **ACCOUNTING POLICIES** 

## **For the year ended 31 December 2020** 

The financial statements have been prepared in accordance with applicable UK accounting standards and the Companies Act 2006.  The principal accounting policies adopted, judgements and key sources of estimation in the preparation of the financial statements are as follows: 

## **BASIS OF PREPARATION** 

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Companies Act 2006. 

The Foundation meets the definition of a public benefit entity under FRS 102. 

The financial statements have been rounded up or down to the nearest whole pound and the reporting and functional currency is British pounds. 

## **GOING CONCERN** 

The Trustees assess whether the application of going concern is appropriate, i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Foundation to continue as a going concern. The Trustees make this assessment in respect of a period of at least 12 months from the date of authorisation for issue of these financial statements and have concluded that as the Foundation has adequate resources to continue in operational existence and for the foreseeable future there are no material uncertainties about the Foundation’s ability to continue as a going concern. Thus, they continue to adopt the going concern basis. 

In making the assessment the Trustees have considered that although AIFS Inc. is unlikely to be able to pay dividends to the Foundation in 2021 or 2022 and the income from other investments is likely to be substantially lower than in previous years, as companies recover gradually from the effects of the virus the Foundation will be able to withstand the impact of this by reducing its expenditure. Any grants payable from the Foundation are on a discretionary basis and their quantum is reviewed annually. The Foundation has unrestricted general reserves, that are held in highly liquid assets, totalling £19,730,868 as at 31 December 2020 and the trustees consider that this level of reserves is adequate for the needs of the Foundation. 

## **UNRESTRICTED FUNDS - GENERAL** 

Unrestricted general funds comprise of funds which the Trustees are free to use for any purpose in the furtherance of the charitable objectives and which have not been designated for other purposes. 

## **ENDOWMENT FUNDS** 

The endowment funds are considered to be permanent endowment funds. Due to a constructive trust, the Foundation currently has no power to convert the capital element of the original gift into income. The permanent endowment funds are required to be held by the Foundation as the related investments cannot be sold unless the Foundation receives specific investment advice to do so. At this point, the related investments would become unrestricted and the proceeds could then lawfully be expended. Income generated by the permanent endowment assets is available for use for the general purposes of the Foundation and as such is treated as unrestricted. 

## **INCOMING RESOURCES** 

All income is recognised once the Foundation has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. All incoming resources are included on the Statement of Financial Activities. 

Page | 16 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **ACCOUNTING POLICIES (CONTINUED) For the year ended 31 December 2020** 

## **LEGACY INCOME** 

For legacy income, entitlement is taken as the earlier of the date on which either the Foundation is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the Foundation that a distribution will be made, or when a distribution is received from the estate. 

Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the Foundation has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the Foundation or the Foundation is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material – see note 16. 

## **INTEREST RECEIVABLE** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Foundation; this is normally upon notification of the interest paid or payable by the bank. 

## **DONATED SERVICES AND FACILITIES** 

Donated services or facilities are recognised as income when any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the Foundation of the item is probable and that economic benefit can be measured reliably. 

On receipt, donated services and facilities are recognised on the basis of the value of the gift to the Foundation which is the amount the Foundation would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

## **EXPENDITURE RECOGNITION** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Foundation to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. 

## **GRANTS PAYABLE** 

Grants payable are included in the Statement of Financial Activities when they have been approved for payment or the recipient has been informed of this decision. 

## **IRRECOVERABLE VAT** 

Irrecoverable VAT is charged against the expenditure heading for which it was incurred. 

## **ALLOCATION OF SUPPORT AND GOVERNANCE COSTS** 

Support costs comprise governance costs and other support costs and have been allocated to charitable activities. Governance costs comprise all costs involving the public accountability of the Foundation and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. 

The allocation of support and governance costs is analysed in note 7. 

## **COSTS OF RAISING FUNDS** 

The costs of generating funds consist of investment management and certain legal fees. 

## **CHARITABLE ACTIVITIES** 

Costs of charitable activities includes charitable donations (grants), governance and other support costs as shown in note 5. 

## **TAXATION** 

The Foundation is exempt from tax on income and gains falling under section 466 to 493 of the Corporation Tax Act 2010, to the extent that these are applied to its charitable objects. 

Page | 17 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **ACCOUNTING POLICIES (CONTINUED) For the year ended 31 December 2020** 

## **INVESTMENT PROPERTIES** 

Investment properties are held for capital appreciation, they were initially recognised in the financial statements at fair value on the date the assets were transferred to the Foundation, and subsequently measured at fair value. Changes in fair value are recognised in the statement of financial activities. On disposal of an investment property, it shall be derecognised. The difference between the net disposal proceeds and the carrying value is recognised in the income statement in the period of the disposal. 

## **FIXED ASSET INVESTMENTS** 

Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction value, unless they are a gift that is initially recognised at its fair value at the date of the gift. Fixed asset investments are all subsequently measured at their fair value as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. The fixed asset investments are also revalued using the closing spot rate at the balance sheet date and any foreign exchange gain or loss is included in the Statement of Financial Activities. 

The Foundation only trades in ethical investment portfolios and does not acquire put options, derivatives or other complex financial instruments. 

The main form of financial risk faced by the Foundation is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. 

## **INVESTMENT GAINS AND LOSSES** 

All 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 their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. 

Unrealised gains and losses on investments are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are amalgamated in the Statement of Financial Activities. 

## **FINANCIAL INSTRUMENTS** 

The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. The policy for investments is as described above, other basic financial instruments, which include other debtors, are initially recognised at transaction value and subsequently measured at their settlement value. 

## **CASH AT BANK AND IN HAND** 

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 

## **FOREIGN EXCHANGE** 

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction. 

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined. 

All translation differences are taken to the Statement of Financial Activities, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income. 

Page | 18 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

**ACCOUNTING POLICIES (CONTINUED) For the year ended 31 December 2020** 

## **CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT** 

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. 

As a result of Sir Cyril Taylor’s death, the Foundation became entitled to receive the bulk of his estate, including 99.9% of the unlisted shares of AIFS Inc., which is incorporated in the United States under registration number EIN06-0890698-DEL. The Trustees have assessed whether this entity should be consolidated into the financial statements of the Foundation as a subsidiary undertaking. The Trustees have concluded that the subsidiary should be excluded from any consolidated financial statements on the basis that the interest in the subsidiary is held as part of the investment portfolio, and the subsidiary has not previously been consolidated in the financial statements of the Foundation. The Foundation holds the investment for capital appreciation purposes as part of an investment portfolio rather than as a medium through which to conduct business. The Foundation has no power or influence over the day to day operational or strategic decisions of the AIFS Inc. and in accordance with 9.9C (a) and 9.9 (b) of FRS 102 the subsidiary is excluded from consolidation and is held as a fixed asset investment measured at its fair value with any changes in fair value recognised in income and expenditure. 

The Trustees have exercised judgement over the valuation of unlisted shares included within fixed asset investments (note 10) The investment in AIFS was valued by Duff & Phelps Limited, an independent valuer, at 29 January 2018, 31 December 2018, 31 December 2019 and 31 July 2020 using an approach that provides an estimation of the fair value of an investment based on the expectations about the cashflows that an investment generates over time. The valuation undertaken in July 2020 was to show the fall in valuation due to Covid 19, this valuation has been used to value AIFS Inc. at 31 December 2020. The method Duff & Phelps Limited used to value AIFS Inc. is based on the income approach for 31 December 2020, which relied on management financial projections as at 31 July 2020 (for 31 December 2019 financial projections for the years ended 31 December 2020 and 2021). Duff & Phelps Limited made several assumptions when valuing AIFS Inc., the most significant one being extending management forecast projections to 2026 (2019: 2024). The Trustees consider the valuation method applied to be appropriate on the basis of available information. 

As at 31 December 2020, the Trustees are aware of further assets, with an estimated net fair value after fees of £3,145,937, that are likely to be bequeathed to the Foundation from Sir Cyril Taylor's Estate. However, at the year end the estate accounts have not yet been finalised. As such, the Trustees feel that there is sufficient uncertainty as to the amounts that are likely to be ultimately realised by the Foundation from the remaining legacy due to potential liabilities to the IRS and HMRC. As the value cannot yet be reliably measured these additional assets have not been recognised in these financial statements. 

Page | 19 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **NOTES TO THE FINACIAL STATEMENTS** 

**For the year ended 31 December 2020** 

## 1 DONATIONS AND LEGACIES 

|Legacies<br>Donated services in kind|2020<br>2019<br>£<br>£<br>9,979,964<br>7,424,115<br>44,389<br>38,865<br>10,024,353<br>7,462,980|
|---|---|



The income from legacies and donated services in kind of £10,024,353 (2019: £7,462,980) was unrestricted and £nil (2019: £nil) was endowment. 

- 2 INVESTMENT INCOME 

|Bank and other interest receivable<br>Income from listed investments<br>Income from unlisted investments|2020<br>2019<br>£<br>£<br>81,387<br>136,986<br>105,230<br>27,215<br>-<br>2,328,832<br>186,617<br>2,493,033|
|---|---|



The investment income of £186,613 (2019: £2,493,033) was unrestricted. 

|3<br>COSTS OF RAISING FUNDS<br>Investment portfolio management fees<br>The costs of raising funds of £48,311 (2019: £29,445) was unrestricted.|2020<br>2019<br>£<br>£<br>84,311<br>29,445|
|---|---|



- 4 CHARITABLE ACTIVITES - EXPENDITURE 

|Grants<br>Other support costs<br>Governance costs|2020<br>2019<br>£<br>£<br>1,984,331<br>4,315,024<br>44,390<br>41,147<br>170,470<br>532,762<br>2,199,191<br>4,888,933|
|---|---|



The costs of charitable activities of £2,194,696 (2019: £4,888,933) was unrestricted. 

Page | 20 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

**NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020** 

|5<br>ANALYSIS OF GRANTS<br>10,000 Degrees<br>Scholarship fund for graduating high school seniors from challenging backgrounds<br>AFS Intercultural Programmes: Sir Cyril Taylor Young Leaders Awards<br>Expand access to intercultural education with scholarships and outreach<br>AIFS Foundation<br>Scholarships for international students to come to US on AYA programme<br>Article 1/Waging Peace<br>Helping Sudanese genocide survivors rebuild their lives in UK<br>Burien Montessori School<br>Financial need for needy immigrant children<br>BUTTLE UK<br>Supporting boarding school places for young people<br>Friends of Atwood<br>Sensory & Learning Garden for children at Atwood Primary Academy<br>Friends of Beit Issie Shapiro (UK)<br>Relief of mentally handicapped/developmentally disabled children in Israel<br>Fulbright CT Memorial Award<br>Granting highly qualified scholars financial support to study abroad<br>Fulbright Foundation UK<br>Granting highly qualified scholars financial support to study abroad<br>Fund Education Abroad<br>Scholarships to under-represented American college students to study in the UK<br>Institute International Education<br>Emergency scholarships for international students in the US<br>Lee Abbey International Students' Club<br>Running a students' hostel for students of all nationalities.<br>National Society for the Gifted & Talented<br>SIG scholarships to attend gifted and talented summer schools<br>National Society for the Gifted & Talented<br>Teacher training financial assistance<br>Norden Farm<br>Sum-Art Time creative workshops for children<br>Richmond University<br>Scholarship support & enhancing student facilities<br>The Agahozo Shalom Youth Village<br>Helping young Rwandans rebuild lives<br>6<br>GOVERNANCE AND SUPPORT COSTS - EXPENDITURE<br>Support costs:<br>Staff costs - donated<br>Rent & Rates<br>Utilities|2020<br>2019<br>£<br>£<br>-<br>4,132<br>38,462<br>-<br>72,769<br>33,884<br>15,000<br>10,000<br>-<br>3,876<br>22,500<br>9,000<br>-<br>10,000<br>-<br>4,000<br>-<br>34,615<br>69,231<br>74,380<br>38,462<br>41,322<br>76,922<br>82,645<br>43,485<br>-<br>-<br>82,645<br>-<br>12,893<br>7,500<br>7,500<br>1,600,000<br>3,900,000<br>-<br>4,132<br>1,984,331<br>4,315,024<br>2020<br>2019<br>£<br>£<br>39,794<br>35,186<br>4,492<br>4,095<br>104<br>1,866<br>44,390<br>41,147|
|---|---|



Page | 21 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020** 

|Governance costs:<br>Auditors remuneration:<br>Audit fees - Buzzacott<br>2019 Audit, Accounting & Legal fees - RSM<br>Legal & Professional fees<br>Administrative expenses<br>Govenamce and support costs of £170,470 (2019: £532,762) was unrestricted.<br>7<br>TOTAL EXPENDITURE<br>Net income/(expenditure) for the period is stated after charging:<br>Auditors remuneration:<br>- Audit fees - Buzzacott<br>- 2019 Audit, Accounting & Legal fees - RSM<br>Legal & Professional fees<br>Loss on sale of investment properties|2020<br>2019<br>£<br>£<br>12,000<br>-<br>35,147<br>43,334<br>100,706<br>476,051<br>22,617<br>13,377<br>170,470<br>532,762<br>2020<br>2019<br>£<br>£<br>12,000<br>-<br>35,147<br>43,334<br>100,706<br>476,051<br>-<br>127,000|
|---|---|



There were no persons employed by the Foundation during the year ended 31 December 2020 (2019: Nil). 

## 8 TRUSTEES' EXPENSES AND REMUNERATION 

Trustees' travel expenses reimbursed for the year ended 31 December 2020 amounted to £Nil (2019: £Nil), this represents 0 trustee out of 14 trustees (2019: 0 out of 14). 

All trustees are considered key management personnel. No trustees were paid remuneration or received other benefits from an employment with the Foundation or from a related entity (2019: Nil). 

|9<br>INVESTMENT PROPERTIES<br>At 1 January 2020<br>Additions during the year<br>Disposals during the year<br>At 31 December 2020|Land<br>£<br>-<br>-<br>-<br>-|Buildings<br>Total<br>£<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|---|



Investment properties were initially recognised using the probate value from Sir Cyril Taylor's estate on the date of transfer to the Foundation. The investment properties were sold in the year ended 31 December 2019, realising a loss of £127,000. 

|10<br>Unlisted investments<br>Quoted investments<br>FIXED ASSET INVESTMENTS|2020<br>2019<br>£<br>£<br>160,066,003<br>229,351,961<br>18,588,038<br>8,228,694<br>178,654,041<br>237,580,655|
|---|---|



Page | 22 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020** 

|UNLISTED - AIFS Inc.<br>FAIR VALUE<br>At 1 January<br>Unrealised (losses)/gains on investments<br>Foreign exchange losses on investments<br>At 31 December<br>QUOTED<br>FAIR VALUE<br>At 1 January<br>Transfer in<br>Transfer from Sir Cyril Taylor's estate<br>Additions at cost<br>Disposals at carrying value<br>Unrealised gains on investments<br>Foreign exchange losses on investments<br>Movement in cash accounts<br>Fair value at 31 December<br>Quoted investments are analysed by class as follows:<br>Fixed interest- UK<br>Fixed interest- Overseas<br>Equities<br>Cash<br>All investments are carried at fair value|2020<br>2019<br>£<br>£<br>229,351,961<br>209,477,483<br>(62,205,226)<br>27,794,873<br>(7,080,732)<br>(7,920,395)<br>160,066,003<br>229,351,961<br>2020<br>2019<br>£<br>£<br>8,228,694<br>-<br>-<br>1,006,066<br>9,979,964<br>7,424,115<br>10,456,362<br>534,276<br>28,665,020<br>8,964,457<br>(7,345,440)<br>(328,225)<br>302,342<br>224,894<br>(879,425)<br>(586,778)<br>20,742,497<br>8,274,348<br>(2,154,459)<br>(45,654)<br>18,588,038<br>8,228,694<br>2020<br>2019<br>£<br>£<br>-<br>101,297<br>7,165,479<br>3,720,944<br>8,398,436<br>3,698,941<br>3,024,123<br>707,512<br>18,588,038<br>8,228,694|
|---|---|



## **Unlisted investments** 

As a result of Sir Cyril Taylor’s death, the Foundation became entitled to receive the bulk of his estate, this includes 99.9% of the unlisted shares of AIFS Inc, which was incorporated in the United States under registration number EIN06-0890698-DEL. The investment was transferred at a cost of £nil and was initially recognised at the fair value of the shares as at 29 January 2018 and the corresponding bequeathed amount was recognised as income from legacies in the Statement of Financial Activities. This valuation was updated at 31 December 2018, 31 December 2019 and 31 July 2020 any subsequent foreign exchange and fair value gains and losses have been recognised as unrealised losses and gains within net gains on investments in the Statement of Financial Activities. 

All fixed asset investments are carried at their fair value. The investment in AIFS was valued by Duff & Phelps Limited, an independent valuer, at 29 January 2018, 31 December 2018, 31 December 2019 and 31 July 2020 using an approach that provides an estimation of the fair value of an investment based on the expectations about the cashflows that an investment generates over time. The valuation undertaken in July 2020 was to show the fall in valuation due to Covid 19, this valuation has been used to value AIFS Inc. at 31 December 2020. The method Duff & Phelps Limited used to value AIFS Inc. is based on the income approach for 31 December 2020, which relied on management financial projections as at 31 July 2020 (for 31 December 2019 financial projections for the years ended 31 December 2020 and 2021). Duff & Phelps Limited made several assumptions when valuing AIFS Inc., the most significant one being extending management forecast projections to 2026 (2019: 2024). 

Page | 23 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020** 

## **Quoted investments** 

Quoted investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets. Holdings in common investment funds, unit trusts and open ended investments companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value). 

## 11 ANAYLSIS OF CHARITABLE FUNDS 

|1 January<br>2020<br>£<br>Endowment Funds<br>229,351,961<br>Unrestricted Funds<br>General Funds<br>11,530,237<br>240,882,198<br>1 January<br>2019<br>£<br>Endowment Funds<br>209,477,483<br>Unrestricted Funds<br>General Funds<br>6,810,970<br>216,288,453<br>ANAYLSIS OF NET ASSETS BETWEEN FUNDS<br>Fixed asset investments<br>Cash at bank and in hand<br>Current assets<br>Current liabilities<br>Total|Incoming<br>resources<br>£<br>-<br>10,210,970<br>10,210,970<br>Incoming<br>resources<br>£<br>-<br>9,956,013<br>9,956,013|Resources<br>expended<br>£<br>-<br>(2,283,502)<br>(2,283,502)<br>Resources<br>expended<br>£<br>-<br>(4,918,378)<br>(4,918,378)<br>Endowment<br>Fund<br>£<br>160,066,003<br>-<br>-<br>-<br>160,066,003|Net gains<br>31 December<br>(losses)<br>2020<br>£<br>£<br>(69,285,958)<br>160,066,003<br>-<br>273,163<br>19,730,868<br>(69,012,795)<br>179,796,871<br>Net<br>31 December<br>gains<br>2019<br>£<br>£<br>19,874,478<br>229,351,961<br>(318,368)<br>11,530,237<br>19,556,110<br>240,882,198<br>General<br>Total<br>Fund<br>31 Dec 2020<br>£<br>£<br>18,588,038<br>178,654,041<br>1,218,347<br>1,218,347<br>10,828<br>10,828<br>(86,345)<br>(86,345)<br>19,730,868<br>179,796,871|
|---|---|---|---|



## 12 ANAYLSIS OF NET ASSETS BETWEEN FUNDS 

Page | 24 



THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020** 

|Fixed asset investments<br>Cash at bank and in hand<br>Current assets<br>Current liabilities<br>Total|Endowment<br>Fund<br>£<br>229,351,961<br>-<br>-<br>-<br>229,351,961|General<br>Total<br>Fund<br>31 Dec 2019<br>£<br>£<br>8,228,694<br>237,580,655<br>3,427,647<br>3,427,647<br>5,331<br>5,331<br>(131,435)<br>(131,435)<br>11,530,237<br>240,882,198|
|---|---|---|



## 13 RELATED PARTY TRANSACTIONS 

As a result of Sir Cyril Taylor’s death, the Foundation became entitled to receive the bulk of his estate. This includes 99.9% of AIFS Inc A Shares, valued at £195,451,315 as at 29 January 2018 (see note 10). No dividends were received from AIFS Inc. during the year (2019: £2,328,832 ). 

Trustees declare any conflicts of interest in writing through their annual declarations of interest, and in addition at the beginning of any meeting Trustees declare any interest, and do not take part in any discussion, where they may be conflicted. 

During the year £1,600,000 (2019: £3,600,000) has been granted to Richmond University in which Clifford Joseph was also a trustee during the year. Michael Berry, Ailsa Brookes and Stephen Rasch resigned as trustees of Richmond University in 2019. Clifford Joseph resigned as a trustee of Richmond University in March 2020. 

During the year, the Foundation received donated services in respect of staff time, rent, rates and utilities from The American Institute of Foreign Study (UK) Ltd., an organisation under common Trusteeship to the value of £44,389 (2019: £38,856). At the balance sheet date, £Nil was owed to the AIFS (UK) Ltd. (2019: £Nil). 

During the year the Foundation received legal advice from Loeb, Block & Partners LLP at a cost of £72,782 (2019: £103,201) in which one of the partners, Stephen Rasch, is also the Chairman of the Foundation. During the year the Foundation received legal advice from Clifford Joseph at a cost of £5,600 (2019: £1,200) and made a donation of £7,500 (2019: £7,500) to Norden Farm. Clifford Joseph, is also a trustee of the Foundation and Norden Farm. 

During the year the Foundation donated £Nil (2019: £95,538) to the National Society for the Gifted & Talented, in which William Gertz and Jack Burg are also trustees. During the year the Foundation donated £72,769 (2019: £33,884) to the AIFS Foundation, in which William Gertz, Jack Burg and Thomas Kiechle are also trustees. 

## 14 LEGAL STATUS OF THE FOUNDATION 

The Foundation is a private charitable company limited by guarantee and has no share capital, its registered address can be found on page 3. In the event of the Foundation being wound up, the liability in respect of the guarantee is limited to £1 per member while he/she remains a member or within one year after he/she ceases to be a member. 

## 15 FINANCIAL INSTRUMENTS 

|The carrying amount of the Foundation's financial instruments were:<br>Financial assets measured at fair value:<br>Fixed asset investments|2020<br>2019<br>£<br>£<br>178,654,041<br>237,580,655<br>178,654,041<br>237,580,655|
|---|---|



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THE CYRIL TAYLOR CHARITABLE FOUNDATION 

## **NOTES TO THE FINACIAL STATEMENTS (CONTINUED) For the year ended 31 December 2020** 

- 16 CONTINGENT ASSETS 

As at 31 December 2020, the Trustees are aware of further assets, with an estimated net fair value after fees at 31 December 2020 of £3,145,937 that are likely to be bequeathed to the Foundation from Sir Cyril Taylor's Estate. However, at the year end the estate accounts have not yet been finalised. As such, the Trustees feel that there is sufficient uncertainty as to the amounts that are likely to be ultimately realised by the Foundation from the remaining legacy due to potential liabilities to the IRS and HMRC. As the value cannot yet be reliably measured these additional assets have not been recognised in these financial statements. 

## 17 POST BALANCE SHEET EVENTS 

The Covid-19 epidemic is likely to significantly reduce the Foundation’s income for 2021 and 2022. The business of AIFS Inc. is largely the arrangement of international cultural and educational exchanges for students and young adults, so ongoing travel restrictions, border closures and visa suspensions have severely damaged its operations. 

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