THE BERKELEY CHARITABLE FOUNDATION Report and Financial Statements For the period ended 30 April 2021 Company Number". 8548400 Registered charity in England and Wales: 1152596 Contents Page Reference and Adminislralive Information Trustees, Report Statement of Trustees, Responsibilities Independent Auditorfs Report Statement of Financial Activities 13 14 17 Balance Sheet 18 Cash Flow Statement 19 Notes forming part of the Financial Statements 20 Reference and AdministratSve Information Directors and Trustees The Directors of the charitable company Ilhe Charilyl are ils Trustees for the purposes of charity law and throughout this report are collectively referred to as the Trustees. The Trustees serving during the year and since the year end were as follows.. Anthony W Pidgley. CBE (until 26 June 20201 Robert C G Perrins Wendy J Prilchard Elaine A Driver Alison J Dowsell (Appointed 26 June 20201 Senlor Management Sally R Dickinson (Head of Foundation) Registered offlce Berkeley House 19 Portsmouth Road Cobham KT11 1JG Bankor Barclays Bank PIC 1 Churchill Pla London E14 5HP Solicltor Harbottle & Lewis LLP Hanover House 14 Hanover Square London W1S 1HP Audltor KPMG LLP 15 Canada Squa London E14 SGL Charlty reglstration number: 1152596 Company reglstrotion number: 8548400 Trustees, Report The Trustees present their report and accounts for the year ended 30 April 20211"the yearf'l. The accounts have been prepared in ac¢ordance with the policies sel out in note 1 to the financial statements and comply with applicable law 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 IFRS 1021 leffeclive 1 January 20151. Structur&, Governance and Management Governance The Berkeley Charitable Foundation I'lhe Foundation.), a eompany limited by guarantee. wa5 originally incorporated under the Companies Act 2006 on 29 May 2013 as The Berkeley Foundation 2013 and subsequently renamed The Berkeley Charitable Foundation on 22 July 2013. The Charity's governing document is its Memorandum and Articles of A$socialion and this sets out the Foundation's charitable objectives. Organlsation and Appolntmfrnt of Trustees The slatulory power of appointing a new Trustee is vested in the Trltstees of the charity. The number of Trustees shall not be permitted lo fall below three. The Trustees who have served during the year are sel out on page 2. As previously reported, Tony Pidgley CBE, one of our founding Trustees and Berkeley Group Founder and Chairman, sadly died in June 2020. Alison Dowsett, Managing Director of Sl William Homes LLP. was appointed as a new Tiuslee in June 2020. Trustee Induction and Tralning On appointment all Trustees go through an induction process, explaining how the Foundation operates. what its purpose is and where the focus for charitable giving lies. Trustees have appropriate knowledge and training for their role, and the Foundation has experienced personnel in investment matters. Regular reporting allows the Trustees to maintain close control of the Foundation's aclNlties. Organisational Structure and D¢¢islon Maklng The Trustees meet quarterly and sel the strategic goals of the Foundation. This includes the choice of charities supported. specific projects funded, the level of financial support and any external promotion. Trustees seek clear outputs from beneficiary charities. The Trustees retain responsibility for all policy and decision making. The Finance, Audit and Risk Committee also meets quarterly, between Trustee meeb'ngs, and is responsible for reviewing the system of internal control and risk management of the Foundation, reviewing applications to the Foundation for funding, reviewing the Foundation's communication plans and overseeing the annual audit. Officers, who are employees of The Berkeley Group, undertake the administration of the Foundalton. Performan¢e of fundraising and beneficiary projects is reported lo each Trustee and Finance, Audit and Risk Committee meeting. Rglated Partles The Berkeley Group provided goods and services to the value of £339,438 wilhoul charge 12020.. £468,758). which is shown in the financial stslements as both income and expenditure. During the year ended 30 April 2021, Anthony Pidgley CBE was a Trustee of The Sir Simon Milton Foundation lunlil 26 June 2020}, Rob Perrins was a Trustee of Crisis and Wendy Prilchard was a Trustee of Richard House, charities that are supported by the Foundation through grants. Whilst these charities are not degmed related parties, sjisclosure is provided lof transparency. The relevant Trustee does not lake part in the decisions Con￿rning the approval of funding commitments to the respecb've charity. Rlsk Management A risk register for the Foundation. incorporating the key risks facing the organisation. is regularly reviewed by the Finance, Audit and Risk Committee and updated where Tre￿ssary. This is presented al the quarterly Trustees, meeting and approved annually by the Trustees. The principal risks of the Foundation include public per¢eplion, adverse publicity and fraud. The Foundation has policies, systems and procedures in place lo miligale these risks where practical. with support from Berkeley Group functions where necessary, including finance and communications. In respect of the principal risks identified, this includes ensuring good quality and regular external reporting of the charity's activities and financial position, and appropriate segregation of duties and authority limits. In addition, a report is provided annually to the Trustees on the internal financial controls within the charity. The report presented lo the Trustees in both August 2020 and 2021 concluded that the internal financial controls were fil for purpose and proportionate lo the scale and complexity of the Foundation's business. Mission Statement, Vislon and Values In 2018, we launched a new Ihree-year strategy for the Berkeley Foundation. As part of this, the mission, vision and values of the Foundation were reviewed and refreshed. Our mission is lo work in partnership to help young people overcome barriers, improve their lives. and build a fairer society. Our vision is for a society in which every young person can thrive. All partnerships deliver against at least one of the Foundation's four themes. A Safe Place lo Call Home,, 'Access to Employment,, 'The Skills lo Succeed. and 'Heallh & Wellbeing,. The principal values that the Foundation will ¢onduct ils work through are.. HAVE INTEGRITY- Build trust by being open, clear and ¢redible BE EFFECTIVE - Manage our resources responsibly to generate long-lerm impa BE BOLD- Take a creative and innovative approach to all our activities EMPOWER PEOPLE- Work collaboratively, engage others in our work and empower people lo create change PROGRESS THROUGH LEARNING- Take every opportunity to develop our kno￿edge and understanding The strategy sets out three priority areas for the Foundation's work. each containing a number of specific and measurable Ihree-year commilmenls. Our priority areas are.. FUNDING- We believe in the power of long-term funding. Wherever possible we work with organisalions for three years or more. This helps build Irusl, and provides our partners with stability and consistency. ADDING VALUE- As well as funding frontline services, we also use our skills, expertise, resources and networks to create development opportunities for our partners and their beneficiaries. Our partnership with the Berkeley Group provides us with aC￿sS to a wide range of assets and opportunities. LEARNING AND SHARING- We use what we've learned to inform and improve our own strategy and funding decisions, share insights and influence wider policy and practice. We do this by publishing evaluations and reports, convening events and communicating about what didn't work as well as what did. We aim to be transparent about our grant-making in order lo drive improvements for ourselves. other funders and the wider sector. 2020121 was the final year of delivery against thi$ strategy. Activities, achievements and Impact A¢tivities The Foundation supports people in London, Birmingham and the South of England through four themes: 'A Safe Place to Call Home,, 'AC￿SS lo Employment,, 'The Skills to Succeed, and 'Heallh & Wellbeing,. We do this through three types of charitable partnership.. Strategic Partnerships.. Long term, in-depth partnerships, operating on a number of levels. There are currently six Strategic Partnerships. Deslgnated Charities.. Three-year partnerships be￿een Beikeley Group businesses and local charities. There are currently 20 Designated Charities. Community Investment Fund.. Targeted funding programmes addressing Specif￿ issues facing young people in each of our four focus areas. Over the last 12 months, oui partnerships have reached 5,487 people across London, the South of England and Birmingham. We have donated £2.8 million lo the voluntary sector through Foun(Jalion grants1£2.5 million) and staff fundraising I£0.3 million), and seen 53'h of Berkeley staff gel involved through fundraising, volunteering and Give As You Earn. This year, our grant making has included making significant further emergency Covid-19 response funding available to our charity partners, bringing our lolal gfant making in response to the pandemic lo £656.000. We remain ¢ommilled to building strong, enduring and Irusl-based relationships, and believe that investing for the long term is the best way lo maximise the impact of our funding. It enables us lo build Iwly impactful partnerships which can harness skills. expertise, brand and reach, as well as funding. str8tegiG Partnerships Our Strategic Partnerships are central to our charitable giving. They provide a core of strong, well- resourced, long-term partnerships, addressing the needs of the most disadvantaged people in society by combining the expertise and high quality delivery of our charity partners with the skills, resources and nebNorks of the Berkeley Foundation. Our six Strategic Partnerships stretch across our four themes. A brief summary of each of these partnerships is provided below.. Crisis.. Our partnership with Crisis continues to support the charity's employment services work across London. It also includes a new place-based partnership with Crisis Skylight Brent, aimed al creating local system5 change. This work has progressed well during the year. Thg Change Foundation.. We have expanded our support for Street Elite, a programme which uses sport engage young people impacted by crime, violence and inequality. We renewed our support for the programme in Birmingham and expanded into a fourth London borough.. Ealing. Tho Lord's Taverners.. Our partnership with the Lord's Taverners continues lo support the SL6per 1 s disability Cricket programme. While face-to-face delivery was paused for much of the year due to the pandemic, young people continued lo engage online and good progress was made towards rolling the programme out nationally. The Mayoi's Fund for London: We renewed and increased our support for the Kitchen Social programme during the year, providing food and activities for young people vulnerable to food poverty, during the school holidays and in national lockdowns. yBnk: Our continued support for MyBnk's The Money House programme, which supports care experienced young people moving into independent accommodation, enabled it lo expand into a fourth location.. Haringey. The programme was successfully delivered online during the pandemic. Imperial College London: We renewed our partnelship with Imperial College London for a further three years. commilling an additional £600.000 lo support the Makerspace Programmes, aimed al engaging young people in the While City area in design and making. Due to the ongoing pandemic Berkeley staff were unfortunately not able lo engage in these partnerships through fundraising and volunteering as fully as in previous years However, during the year 234 Berkeley colleagues took part in Crisis, Race lo End Homelessness, raising £54,000. Staff and contractors from Berkeley Homes East Thames refurbished The Money House flat in Greenwich, Berkeley St Edward provided free of charge use of its storage facilities lo the Kitchen Social programme, and Berkeley Divisions hosted a number of work experience placements for young people graduating from the Street Elile programme. Designat8d Charities We have 20 local partnerships with organisalions nominated and selectsd by our staff. These range from grassroots homelessness projects to children's hospices. They are long-term relationships lasting al least three years and, in some cases, much longer. This gives the two organisations the chance to really get lo know and understand each other. A partnership plan is developed which focuses not only on support through fundraising but also on staff volunteering and capacity building. Designated Charities are the main focus of staff fundraising across the Berkeley business. This year, fundraising has been significantly reslricled by the Covid-19 pandemic. Nevertheless, stsff raised £255,000 for their local partners during the year 12020.. £646,000), through fundraising events ranging from quiz nights to bike rides. and through Give as You Eam. This money can make a huge difference lo the small- to-medium svzed organisalions we support. Community Investment Fund Our Community Investment Fund is the third stream of funding available from the Berkeley Foundation. It allows us to fvnd flexibly, making smaller grants lo innovative organisalions within our four themes. This year, we launched our second Improving Youth M8ntal Health programme, building on our previous work lo improve young people's health and wellbeing. We are working with three charities.. Khulisa, MAC- UK and the Anna Freud N81ional Centre for Children and Familie5. During the year, we also continued lo work with the charities funded under the first Improving Youth Mental Health. Comballing Youth Homolessn8ss, Empowering Young Women into Work, and Skills for Positive Futur8s programmes. Covid-19 The year was dominated by th8 ongoing Covid-19 pandemic. Like so many organisations, the Foundation had lo adapt quickly and we adjusted to home working. remote decision-making, and holding board meetings via Zoom. We were an early signatory of 'We Sland With The Sector,, a joint funder pledge lo the voluntary sector and a public statement of our ¢ommitmenl to supporting our charity partners during this difficult period. Our response to the pandemic this year is summarised below.. Providing addltlonal flexiblllty on current grants.. Where requested. we have enabled charity partners to use funding from the Foundation flexibly lo respond to community need. or unrestricted funding altogether. Providlng addltional funding to charity partners: During the year we committed a further £428,000 in emergency Covid-19 response grants to our charity partners. This included unreslricled donations lo support core running costs, support ft)r specific pandemic response projects and over £64,000 of match funding lo our Designated Chartlies for fundraising by our staff. This look our total grant-making in response lo the crisis lo £6￿,000. Achievements Our 2018-2021 strategy sets out three elear strategic priorities for our work, underpinned by a set of measurable objectives. Our progress against each priority area is set out below.. FUNDING By 2021 we will... Progress against obJeGtiVOS Find projects that would enable us to give al least £3.5 million a year by 2021 through grants, staff fundraising and GAYE. Over three years we gave £9 million to communities through grants. staff fundraising and Give As You Earn, including £2.8 million last year. We gave more in direct grants from the Foundation in 2020121 than in any previous year, including £656,000 in Covid-19 response grants. Woik in partnership with other funders. businesses and loeal authorities lo develop a more collaborative approach to funding. which leverages our giving and increases its impact We have worked collaboratively with a wider range of funders, businesses and local authorities over the last three years than ever before, with partners ranging from the GLA to JP Morgan Chase Foundation. We regularly shared infomation with other funders throughout the Covid-19 pandemic. and have also started publishing our grants data on 360 Giving. Launch a core ¢osl commitment, which will ensure that every grant we make lakes a full cost recovery approach We published our core cost commitment on oui website in 2019. This makes public our commitment to funding a proportion of our partners, core costs and overhead as part of every grant we make. Since then, 950/0 of new grants Irepresenling 990A of our lolal giving) have been either unreslricled or included core costs ancs we are working tOW8rds making thi¥ 100%. ADDING VALUE By 2021 we wlll... Progress against objectlves Develop a broader range of skilled volunteering opportunities for Berkeley staff, increasing the number of volunteer hours given across the Berkeley Group and measuring the impact of this for both chaiilies and Staff, Through our charity partners we have been able to offer a range of volunteering opportunities, from mentoring young people lo serving Christmas meals to those experiencing homelessness, clean up community gardens and even renovate a home for a family. Through the pandemic we worked with partners lo deliver virtual sessions on subjects like interior design and CV workshops. Create more opportunities for our partners to meet, network and collaborate with each other and our wider networks. We created new opportunities for our charity partners to Come together, Share and collaborate, from hosting networking dinners lo workshops and roundtable events. Partners have fed back through our len year evaluation that they would like lo see the Foundation do even more of this in future. Develop stronger pathways for young people taking part in Berkeley Foundation programmes to access work experience and employment opportunities with the Berkeley Group and its supply chain. New partnerships with Crisis in Brent. Key4Life in Hammersmilh & Fulham, 2nd Vvomen into Construction in Birmingham have strengthened our ability lo support people into work. Over three years Berkeley Group hosted 21 work experience placements for people referred by our charity partners, and 12 of these moved into jobs and apprenticeships. LEARNING AND SHARING By 2021 we wlll... Progress against objectlves Undertake a long-term evaluation of the Foundation's impact, lo be published in 2021. As part of this, we will develop opportunities for partner charities and their beneficiaries to give feedback on our work. We commissioned IVAR to carry out a 10 year evaluation of our work, looking al our impact on people, organisats'ons and wider society, and making recommendations for the future. As part of this process, we collected anonymous feedback from our charity partners for the first lime something we will look to continue. We published IVAR'S report in 2021. and you can read their findings on our webs11e. Create a learning programme which pmvides space for our partners to share, reflect and develop their woth. We piloted a series of leaming events in 2019120. delivering three events with partners and young people which helped us lo develop new funding programmes. We built on this in 2020121, bringing partners together for four workshop sessions and sharing learning from our Combatting Youth Homelessness programme al London Funders. Festival of Learning. Raise the Foundation's profile and ability lo influence key stakeholders by developing and implementing a new communications strategy. Our new communications strategy was launched in 2019 and this has helped us lo increase our profile across a number of channels. Impact Over the last year, we have worked with 58 voluntary sector organisalions. We have given £2.8 million through grants and staff fundraising to our partner charities. and this funding has supported over 5,400 at- risk individuals. This work has been supported by the efforts of 1,418 Berkeley Group staff153Yfjl. We want to make sure that we are using these resources effectively, and supporting work that is making real and lasting difference. We work with our partners lo evaluate the programmes we are funding.. lo understand what is working well, and where there is room for improvement. What we learn from this process can be used and shared, to showcase good practice, and lo make sure things work beller next year and the year after that. As part of this process of learning and reflection, this year we also commissioned a len yearevaluation ofthe Foundation's work. which was delivered by the Inslilule forvolunlary Action Research (IVAR). We think about our impact in three ways.. Individual impact- Young people h8V8 a safe place lo call home. improved health and wellbeing, access lo emploympnt and the skills to succeed. Funding high quality services that improve people's lives is at the core of what we do. Our partners might help somebody secure a tenancy or avoid homelessness, move into work, develop new skills or access new opporbjnilie$. This yearwe have supported more than 5,400 people through our charity partnerships. This includes 898 people experiencing or at risk of homelessness, 911 people who have taken parl in employability initiatives or moved into work, 262 young people who have gained new skills, and 3.416 young people who have taken part in health and wellbeing programmes. We work with our partners lo understand the impact of the programmes we fund. This year, we have analysed impact data for over 2,350 of the people our charity partners worked with against London Benchmarking Group's impact framework, which measures depth of impact, and asks whether we had contributed towards a connection, an improvement, or a Iransformalion in the lives of the people supported by our wotk. 64% of people supported had made a connection- this includes people who received housing advice, gained new skills, or reported a change in attitude towards work or edueation. 540/0 of people had made an improvement - this includes people who experienced longer-lerm change, such as an improvement in their housing situation, or a change in attitude or behaviour that lasted beyond the end of the inteTvenlion. 25¥0 of people experienced a transformation rehoused or who moved inlo work. this includes people who were pemianently IVAR'S ten year evaluation of our work found evidence that the Foundation had contributed towards a wide range of outcomes for young people and communities, and that in some cases we have been the only funder that has been willing lo support certain services. OTganlsatlonal impact - o￿anIsatIOnS supporting young people are stronger, more resilient and beller able lo ovgrcom8 challenges and oper81e effectively. Our work also has an impact on the organisalions we partner with. We work with organisalions for the long term.. most of our partnerships last for three years and some for much longer. This provides stability, and enables our partners to plan ahead. IVAR'S len year evaluation highlighted four elements of our approach that contribute towards ¢harily partner resilience and effectiveness.. Provision of longer-term funding Funding based on an understanding of the Complexity of the issues- enabling organisalion lo lake a holistic approach and respond and adapt lo new and emerging needs Creating opportunities for partners lo collaborate and share learning and insight with peers Access to resources and support beyond funding Systemlc impact - Insight and learning about 'what works, in improving the lives of margin81isad young people is shared across the voluntary, privat& andpublic sectors. As well as directly supporting people and organisations. we use our networks to Share what we have learned through our partnerships. We believe that by being transparent about what has worked well and what hasn't, we can begin lo influence other funders, businesses and decision-makers. As well as investing in an external evaluation of the Foundation's work, which will be shared externally, this year we participated in a number of funder events and forums aimed al sharing intelligence around community need during the pandemic, ensuring that we. and other funders, were able lo respond in a co-ordinated manner. Investment Funding for the Foundation comes from a variety of sources. The Berkeley Group staff raise money through sponsorship, Give As You Earn and by donating their time and talents. The Berkeley Group matches any monies raised, as well as providing the Foundation's 'core' funding, paying ils overheads and covering the cost of specific events. We also received a number of direct donations from individuals and companies who support our work. A significant percentage of The Berkeley Group staff support the work of the Foundation through direct giving. fundraising and volunteering. 1,418 current Berkeley staff contributed lo the Foundation in 2020121 153%), and 320/0 of all Berkeley staff were signed up lo Give As You Eam at April 2021. resulting in Berkeley receiving the Diamond Payroll Giving Quality Mark Awaid in 2021 for the fourth consecutive year (for over 30°/0 of staff contfibutingl. Financial review Income for the year was £2,592,80012020'. £4,752,390). This includes funding received from The Berkeley Group in respect of commitments and grants to charities approved by the Trustees, donated services from The Berkeley Group. amounts raised directly for the Foundation through fL+ndraising and Give As You Earn contributions, and direct donations from individuals and companies. Some of these commitments span a number of years and the commilled funding is received up front from The Berkeley Group. The decrease in income this year primarily reflects the lower level of funding from The Berkeley Group. with a lower level of new mulli-year commitments compared lo the prior year, reflecting the liming of renewal of our longer temi partnerships. The Berkeley Group has again advance funded commitments forecast for the next financial year. Expenditure in the year totalled £2,477,811 12020.. £3.412,6931. This related lo commitments and grants to Strategic Partnerships, Designated Ch8rilies and grants and donations lo other charities within the Foundation's core focus aieas and support costs paid for by The Berkeley Group, with the reduction reflecting the lower level of new multi-year commitments as discussed above. Grants and donations tolalling £2,476,863 were physically paid by the Foundation during the year12020'. £2,270,840). In addition, a further £326,262 was raised by Berkeley Group staff via fundraising and Give As You Earn and donated directly lo the Foundation's partner charities in the year {2020'. £695,604). This amount is not reflected in these financial slalements. The value of the lime and tslenl donated by Berkeley Group staff is also not included in these financial stalemenls. The charity is in a not asset position al the year-end of £1,819,97012020'. £1,705,000), with the position continuing to reflect the advance funding received from The Berkeley Group for commitsmenls forecast for the coming year, as noted above. All funds were unreslricled. The Trustees have continued lo consider the impact of Covid-19 on the Foundation and have concluded it to be low risk to its continuing operations. given the support of The Berkeley Group, resulting in the Foundation being forward funded al each balance sheet date with all ¢ommilmenls approved by the Trustees. and all costs of the Foundation being borne by The Berkeley Group. 10 In addition, advance funding has again been received before the year end frorn The Berkeley Group for other commitments forecast for the coming year not yel approved. These matters has b&en assessed when considering the Basis of Preparation for the financial stalemenls, as set out on page 20. ReseNes policy The Trustees. policy is lo maintain sufficient reserves to meet existing and forecast commitments lo charities. The reserves held al 30 April 2021, as sel out in note 9 to the financial statements. complied with this policy as, given there are no running Costs incurred by the Foundation, all reserves are available for dislribulion. The running costs of the Foundation are paid by The Berkeley Group. as set out in notes 3 and 4 to the financi81 slatemenls. Future actlons Considerable work was undertaken in the year to support the development of a new 2030 Strategy for the Berkeley Foundation. This strategy has since been finalised and launched, and will guide our work over the remainder of this decade. The slratsgy builds on the recommendations from IVAR'S ten year evaluation of the Foundation's work, particularly feedback gathered from charity partners through four focus groups and an anonymous survey. We have worked closely with our board of trustees. charity partners and key stakeholders across the Berkeley Group to shape the way forward. The result is a long-lerm strategy which sees us evolve our previous goals, making them more relevant lo a changing external environment and biinging more young people into each stage of the granl-making process. Our 2030 vision is that young people and thelr communltle$ will have the tools and resources they need to thrive and be a force for change Sn th¢ world. Our vision is supported by five impact goals, which defi'ne the difference we want to make through our work.. A safe place to call home Evgryong has somewher8 to live that is safe. secure and sust8inable Journey lo employment Every young person is prepar8d for work and h8S the opportunty to build 8 sustainabl8 career Health and wellbeing Everyone has the support they n88d to live happier, he81thierlives. Youth leadership Youngpeople empowared topositively impact theirown lives and the communilies in which Ih8y live A re5ilienl voluntary sector Ourcommunities indude a voluntary sector that is effective, inclusive and w811 resourced Our five impact goals are supported by five commitments about the way we'll work.. We'll work in partnership with expert charities, investing in their work to help young people thrive We'll add value to our partnerships through our expertise, networks and relationship with Berkeley Group We'll learn from our work and share our leaming across the public, private and voluntary seclois We'll ensure that diversity, equity and inclusion is al the heart of everything we do We'll enable young people lo play an active role in the Foundatson's work The new strategy also includes an update lo our funding streams. This 1$ lo reflect the changing environment of grant-making., making our funding process more transparent, and allowng us lo continue to grow ou¥ funding. Public Bènefit The Trustees confirm that they have complied with their duty to have regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties, including when reviewng the Foundation's aims and objectives and in planning future activities and Selling grant making policy for the period. The public benefit of the Charity's activities is outlined under Mission Statement, Vision and Values., Activities and Achievements.. and Future AGlions above. Statoment of Trustees. rnspon8lbllltles in respect of the Trustees, Report and the financlal Statèments The Trustees afe responsible for preparing the Trustees, ReFlJrt and the fin8n¢kql statements in ac¢oTdance with applicable law and regulations. Company law requires the Trustees lo prepare financial statements for each finan¢ial year. Under that law they have are required to prepare the financial slatemenls in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice). including FRS 102 The Financial R8porbng Standard appI￿able in th8 UK and R8public oflr818nd. Under company law the Trustees musl not approve the financial statements unless they are satisfi'ed that they give a true and fair view of the slate of affairs of the charitable company and of the profi'l or Ios5 of the charitable company. In preparing these financial statements, the Trustees are required to.. select suitable accounting p(￿1cleS and then apply them con$i$lenlly', make judgements and estimates that are reasonable and prudent.. slate whether applicable UK A¢counling Standards have been followed, subject to any material departures disdosed and explained in the financial slatemenls: assess the charitable company s ability to Continue as a going concern, dKlosing. as applicable. matters related to going concem,. and use the going concem basis of accounting un18SS they ef(her intend lo liquidate the charitable company or to cease operations, or have no realisti¢ alternative but lo do so. The Truste8s are responsible for keeping adequate accounting records that are $uffi'cient lo show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the rinancial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary lo enable the preparation of financial slalemenls that are free from material misslalemenl, whether due to fraud or errof, and have general responsibility for laking such steps as a￿ reasonably open lo them to safeguard the assets of the charitable Company and to prevent and detect fraud and other irregularities. By ordèr of the ty)ard R C G Porrln6 Trustee 21 January 2022 13 ## **Independent auditor's report to the members of The Berkeley Charitable Foundation** ## **Opinion** We have audited the financial statements ofThe Berkeley Charitable Foundation ("the charitable company") for the year ended 30 April 2021 which comprise the Statement of Financial Activities, Balance Sheet, Cash flow statement and related notes, including the accounting policies in note 1. In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 30 April 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with UK accounting standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland;_ 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 are described below. We have fulfilled our ethical responsibilities under, and are independent of the charitable company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. ## **Going concern** The Trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the charitable company or to cease its operations, and as they have concluded that the charitable company's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements ("the going concern period"). In our evaluation of the Trustees' conclusions, we considered the inherent risks to the charitable company's business model and analysed how these risks might affect the charitable company's financial resources or ability to continue operations over the going concern period. Our conclusions based on this work: - we consider that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate; - we have not identified, and concur with the Trustees' assessment that there is not, a material uncertainty related 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 the going concern period. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the charitable company will continue in operation. ## **Fraud and breaches of laws and regulations - ability to detect** _Identifying and responding to risks of material misstatement due to fraud_ To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included - enquiring of management as to the charitable company's high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud; - reading the Trustees' board meeting minutes; - using analytical procedures to identify any unusual or unexpected relationships. We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. 14 As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that the charitable company's management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because the revenue is made up of a small number of transactions all that can be vouched to cash with very limited opportunity or incentive to fraudulently report revenue. We did not identify any additional fraud risks. _Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations_ We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with management (as required by auditing standards), and discussed the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably. The charitable company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities and companies legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Whilst the charitable company is subject to many other laws and regulations, we did not identify any others where the consequences of non-compliance alone could have a material effect on amounts or disclosures in the financial statements. _Context of the ability of the audit to detect fraud or breaches of law or regulation_ Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non­ compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non­ compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. ## **Other information** The Trustees are responsible for the other information, which comprises the Trustees' Report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work: - we have not identified material misstatements in the other information; - in our opinion the information given in the Trustees' Report is consistent with the financial statements; and - in our opinion that report has been prepared in accordance with the Companies Act 2006. ## **Matters on which we are required to report by exception** Under the Companies Act 2006 we are required to report to you if, in our opinion: - the charitable company has not kept adequate accounting records 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. We have nothing to report in these respects. 15 ## **Trustees' responsibilities** As explained more fully in their statement set out on page 13, 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; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; 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 they either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities** 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 our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC's website at www.frc.org. uk/auditorsresponsibilities. ## **The purpose of our audit work and to whom we owe our responsibilities** 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 its members as a body, for our audit work, for this report, or for the opinions we have formed. ## **Joanne Lees (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor** ## _**Chartered Accountants**_ ## **15 Canada Square, London, E14 SGL** ## **28 January 2022** 16 THE BERKELEY CIIARITABLE bOUNDA'I'ION Trusiee&' Report and Financial Siutemenls 30 April 2021 Statement of Financial Activities (incorporating the Income & Expenditure account) forthe ye8rended 30 Apnl 2021 2021 Unrnstricted funds 2020 Unrèstrlcted funds Note Income from.. Donations and18gaiye8 Investrnents 2,560,990 11,810 4.732,891 19,499 Total 2,592.800 4,752,390 Expenditure on.. Charitable activilFes Olher {2,477,8111 1191 13.412,3881 13051 Totsl 2,477.830 3,412 693 Net 5ncome 114,970 1,339,697 Re¢oncillatlon of funds= Tolal futKls brought forward 1,705.C 365,303 Total funds carrl•d forward 7 819,970 1705.000 The notes on pages 20 to 24 form part of these financial slalements. The income and resulting nel expenditure in the financial year arise from ¢onlinuing operations. There are no recognised gains and losses other than those disclosed above. 17 Tiif IlERKI.-I.I.'Y LIIARI'I'Atii.r. rouNDA-I'ION 'Iiu51ccs' Ilcp(xt and l.-illancial Siaiciiicnls 30 Apiil 2021 Balance Sheet at 30Apnl 2021 Note 2021 2020 Curr•nt •8$8ts Deblois Inveslm8nls Cash at bank 5,210 5,256 2,000.000 2,704.853 4.481,379 4,486.$89 4,710,109 Creditors.. amounts falling dua within one year 11,447,291) 11,358.934} Net current assets 3.039,298 3,351,175 Creditors: arnounts (alling due after one year {1,219,3281 {1.646,1751 N&t o$$0t¥ 1819,970 1,705.000 Funds Unrestricted.. General Designated 1,819.970 1,705,000 1.819,970 1,705,000 The notes on pages 20 to 24 fonn part of these financial statements. These fi'nancial stslements were approved by the Board of Trusteès on UJanuary 2022 and were signed on ils behalf by.. R C G Perrlns Trustee THE BERKELEY CIIARITABLE FOUNDATION I'ru51ees li¢pon and fittanciol Sialements 30 April 2021 Cash flow statement Note 2021 2020 Cash flows from operating activities 1223,4741 2.018,174 Cash lows Irom investing adivities 2.W,OCXI 1250.(X)O) Change in cash and cash equivalents in the reporting p6riod 1,776.526 1.768.174 Cash and cash equivalents al the beginning of the reporting p6riod 2,704,853 936,679 Cash and cash equivalents at the gnd of the reporting period 4,481379 2.704.853 NOTES TO THE CASH FLOW STATEMENT a. Reconc151atlon of n•t ¢xpendlturo to net cash flow from op•rating activities 2021 2020 Nel income for the reporting period Decreasel{increase) in debtors (Decreaseylncrease in creditors 114,970 46 {338,4901 1,339,697 5.887 872.790 Net cash lu$¥d inllfrom operatlng actlvitias 223,474 2,018,174 b. Analysis of cash and cash &qulv•l•nts 2021 2020 Cash al bank 4,481.379 2,704,853 19 THE BERKI.'LfY Li.IAKI'I'A141.1-- foiJNJ)ATION InJsiecs' Ilep(xt and l inancial Siaictncn15 30 April 2021 Notes (forming part of the financial statements) Accountlng pollcles Basis of preparation and Golng Concèrn The financial slalemenls have been prepared under the historical cost convention and in accoiLlance with Accounting and Reporting by Chari118s.' Statement of Recommended Practice applicable lo charitie$ preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20151- (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Found81ion meets the definition of a public benefit enlily under FRS 102. The financial slalemenls have been prepared on a going concern basis which the Trustees consider to be appropriate for the following reasons. The Trustees have continued to consider the impact of Covid-19 on the charitable company. 11 is forward funded by The Berkeley Group al each balance sheet dale with all commitments approved by the Trustees and charged lo the Slalement of Financial Aclivilies. In addition advance funding was again received before the year end from The Berkeley Group for other commitments forecast for the coming year not yel approved. The Berkeley Group has indicated their eommilmenl to ¢ontinuing the activities of the eharilable company for a period of 8t least the next 12 months from the dale of signing of these financial slalemenls. Consequently. the Trustees are confident that the charitable company will have sufficient funds to continije lo meet ils liabilities as they fall due for al least 12 months from the date ol approval of the financial statements and therefore have prepared the financial slalemenls on a going concern basis. The Trustees are also of the view that there are no material uncertainlles about the enllty'8 ability lo continue as a going concern. The principal accounting policies adopted, judgèments and key Sources of eslimalion uncertainty in the preparation of the financial stalomenls are as follows.. Incomg Income is recognised when.. the Foundation has unconditional enlillemenl to the iesource8'. the receipt of the income is considered probablo., and the value can be reliably measured. Expendlture and Ilabllltles Liabilities are recognised as soon as there is a legal or constructive obligation committing the chafily to pay out resources. Grants payable are only recognised in the accounts when a commitment has been made and there are no conditions lo be m$1 relating lo the grant which remain in the control of the charity. The eslimaled value of the lime of staff employed by The Berkeley Group is accounted for as donated services, as are the costs paid foT by The Berkeley Group on behalf of the Folsndalion. An equal amount 1$ accounted for as a eosl within support or govemance costs as appropriate. Governance costs represent the costs of meeting legal. conslilulional and slatulory requirements of the Foundation. 20 THF BERKLI.LY CIIAKI'I'Al41.r. rouNDA'fioN Trusiett. iicport and financial Sialcmettts 30 April 2021 Notes (fom7ing part of the financ￿1 statements) Fund accountlng The Found8llon has various types of funds for which il is responsible and which require separate disdosure.. Restricled Ffjnds Donations that are subject lo specific conditions specified by the donor are recorded as reslrictgd funds. From these funds, the donations and any income derived there from may only be ulilised in accordance with the specific conditions. There were no Roslricted Funds al the period end. Unreslncled funds The F¢)undalion has two categories of unrestricted funds.. General Funds These funds are expendable al the discretion of the Trustees in furtherance of the objectives of the Foundation. These resources arise from the accumulated surpluses and deficits on the provision of general CharIta￿e aclivilies. Desi naled Funds These fund5 have a designated purpose as determined by the Trustees. Designated funds remain al the discretion of the Trustees and may be transferred to general funds if deemed necessary. Taxatlon The Berkeley Charitable Foundation is conSide￿d lo pass the lesls sel out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income lax purpDSgS. Accordingly, the charity is exempl from laxalion in respect of income or capital gains receivect within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively lo charitable purposes. No tax charge has arisen in the period. Current asset Investments Current asset investments represent cash on dep08it or cash equivalents with a maturity of less than one year held for investment purposes. Income from investments represents interest earned on cash deposits up lo the balance sheet dale. Legal status of the charlty The charity is a company limited by guarantee, incorporated in the UK, and has no share capital. In the as8 of an insolvent winding up the members will be required lo contribute the amount of £1 each to the assets of the charity. Income 2021 2020 Funding from The Berkdey Group Fundr8ising and Gift Aid GAYE linc1L￿ing malch funding) Other donations Donated services 2,119.037 699 121,546 270 339.438 4,079.721 18.955 1e4,907 550 468,758 2,580,990 4,732.891 Funding from The Berkeley Group is primarily in respect of the fO￿ard funding of commitments and grants approved by the Trustees and charged to the Statement of Financial Activities in the year. as set out in the Foundation's Reserves Policy on page 11. THE BERKEI.EY CHARI-I'AEILE foiiNDA'I'ION 'I'￿SIee5, Rcport and binan¢ial Stslunettts 30 April 2021 Notes (contlnued} (forming part of the financial slatem8ntsJ Donated setvices reflect the approximate eosl of services prowded free of charge lo the charity by The Berkeley Group, and the costs paid for by The Berkeley Group on behalf of the Foundation. These costs, lotalling £330,161 {2020.' £460,313), are irtcluded in charitable activrti88, as sel out in note 4 below. In addition, KPMG LLP audit fees and Trustee indèmnity insurance are paid for by The Berkeley Group. These costs, tolalling £9.27712020.' £8.4451, are also set out in note 4 below. Charltablè actlvltles 2021 2020 Commitments charged in the year {Nol& 51 Support e081s allocated Govemance costs 2,138,373 330,161 9,277 2,943,630 460.313 8,445 2,477,811 3,412,388 Supptyt costs &lloca(ed The average number of staff working for the Foundation during the year (full lime equivalentl was four 12020.. five). They are employed. and have their costs paid for, by The Berkeley Group. Additional support Is 81s0 provided to the Foundation by other employees of The Berkeley Group. Emoluments and reimbursed expenses were not paid lo any Trustees during the period, who are all employeès of The Berkeley Group. The aggregate payroll costs of the staff working for the Foundation, and of employee services provided by The Berkeley GfOUP are.. 2021 2020 Wages and salaries Employerfs National Insuran Pengion costs 241,205 26,477 10,737 303,704 35.077 13,034 278,419 351,81 S In addition, other eosts of £51,742 were paid by The Berkeley Group on behalf of the Foundalion12020.' £108,498). Govemance cosls Governance costs comprise KPMG LLP audit fees and Trustee indemnity insurance. as set out below.. 2021 2020 Trustee indèmnity insuranc6 Fees payable lo auditor- external audit 4,277 5,000 3,445 5,000 9.277 22 THE BERKELEY CHAIII I'AEILE I.'OIJNDA'I'ION T￿Slee5. R¢port and Financial Sthicm¢n 30 Api'il 2021 Notes (continued) ffom7ing part of the financial slat8m8ntsJ Grants and Commitn*nts During the year £2.138,373 of grants and commitments made were charged lo the Statement of Financial Activf(ie8. 2021 2020 8eneficlary Strategic Partnerships The Change Foundation Crisis Imperial College Mayorfs Fund for London The Lord's Taverners MyBnk Richard Houso Multiple Sclerosis Trials Collaboration New Horizon Youth Centr8 Khuli8a MAC-UK Ann8 Freud National Centre for Child￿n and F8milies Chance UK No.5 Young People Oarsome Chane6 Skyway Charity Olhtrr charities I£SO.000 or less) Relea3e of commitments previously made 230,128 875,(KK) 1,258,520 60D.QOO 107,760 15,000 15,OCKJ 180,000 150,000 150.000 120,000 102,33S 149.129 20,000 15,000 50,000 10.1100 7,500 14,842 88,614 85,217 78,000 59,902 388,506 17,471) 10,000 15,0(YJ 294.021 2.138,373 2.943,630 The cornmilmenls to the Foundation's strateg￿ Partnerships are mulli-year agreements with paymgnts due on s￿lf1¢ dales. Payments made during the year are set out below.. 2021 2020 Grants payable brought forward (note 8} Amounts charged to the Stslement of Financial ActiVi￿S 3,005.109 2,138,373 5,143,482 2,332.319 2.943 630 5.275,949 Payments In the year. Grants and donation6 12,476,863) 12.270,840) Grants payable carried forward Inolg 81 2,666,619 3 005,109 23 THF. BIRKI'.I.I:.Y C14AIII'IAAI.r. rouNDA'I"ION Tiusices, Kcpoit and l-.inan¥ial Siblciiienls 30 Apilll 2021 Notes (continued) (forn7ing part of the financial slatem8ntsJ Debtors 2021 2020 Fundrai&ng and Give A8 You Earn Interest 5,115 95 4,581 675 5,210 5.256 Investments 2021 2020 Cash on deposit 2.000,000 Current asset investments represent amounts on deposit with a malurily of less than one year held for investment purposes. Crèditors 2021 2020 Amounts falling due wilhin one year- grants payable 1,447 291 1,358.934 Amounts falling due after one year- grants payable 1,219.328 1,846,175 Movement of funds Unrestricted Deslgnatèd General Total Opening balan Income Transfers Expenditure 1.705,000 2.592,800 1,705,000 2,592,800 12,477.8301 P,477.830} Funds at 30 Aprll 2021 1.819,970 1,819,970 Designated funds have a designated purpose as determined by the Trustees. 10 Related Party Transactions The Berkeley Group has provided funding lo the Foundation 8nd has also provided don81ed seNce8, as sel out in notes 3 and 4 above. 24