THE BERKELEY CHARITABLE FOUNDATION Report and Financial Statements For the period ended 30 April 2022 Company Number: 8548400 Registered charity in England and Wales: 1152596 Contents Page Reference and Administrative Information Trustees, Report Slalemenl of Trustees, Responsibilities Independent Auditor's Report lo the members of The Berkeley Charitable Foundation Slalement of Financial Activities 10 11 14 Balance Sheet 15 Cash Flow Slalemenl 16 Notes forming parl of the Financial Statements 17 Reference and Adminlstrative Infomiation Directors and Trustee5 The Directors of the charitable company (the Charity) are its 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.. Robert C G Perrin5 Wendy J Pritchard Elaine A Driver Iresigned 18 November 2022> Alison J Dowsell Piers M Clanford (appointed 19 January 2023) Senior Management Sally R Dickinson (Head of Foundation) Registered office Berkeley House 19 Portsmouth Road Cobham Kf11 1JG Banker Barclays Bank Pl¢ 1 Churchill Place London E14 5HP Solicitor Harbotlle & Lewis LLP Hanover House 14 Hanover Square London W1S 1HP Auditor KPMG LLP 15 Canada Square London E14 SGL Charlty registration numbor: 1152596 Company registration number.. 8548400 Trustees, Report The Trustees present their report and accounts for the year ended 30 April 20221"the yearf'l. The accounts have been prepared in accordance with the policies sel out in note 1 to the fi'nancial slalements and comply with applicable law and Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo 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. Structure, Governance and Management Governance The Berkeley Charitable Foundation {"Ihe Foundation I, a company limited by guarantee, was 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 Association and this sets out the Foundation's charitable objectives. Organisation and Appointment of Trustees The slalutory power of appointing a new Trustee is vested in the Trustees of the charity. The number of Trustees shall not be permitted lo fall below three. The Trustees who have served during the year are set out on page 2. Trustee Induction and Training On appointment all Trustees go through an induction process, explaining how the Foundation operates, what ils 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 mallers. Regular reporting allows the Trustees lo maintain close control of the Foundation's aclivilies. Organlsational Structure and Declslon Making The Trustees meet qLJarterly and set 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 oulpuls from beneficiary charities. The Trustees relain responsibility for all policy and decision making. The Finance, Audit and Risk Committee also meets quarterly, bebNeen Trustee meetings, and is responsible for reviewing the system of internal control and risk management of the Foundation, reviewing applications lo 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 adminislralion of the Foundation. Performance of fundraising and beneficiary projects is reported to each Trustee and Finance, Audit and Risk Committee meeting. Related Parties The Berkeley Group provided goods and services to the value of £435,914 without charge 12021.. £339.4381, which is shown in the financial statements as both income and expenditure. During the year ended 30 April 2022, Rob Perrins was a Trustee of Crisis and Wendy Prilchard was Trustee of Richard House, charities th81 are supported by the Foundation through grants. Whilst these charities are not deemed related parties, disclosure is provided for transparency. The relevant Trustee does not lake parl in the decisions con￿MIng the approval of funding commitments to the respective charity. Risk 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 necessary. This is presented at the quarterly Trustees, meeting and approved annually by the Trustees. The principal risks of the Foundation include public perception, adverse publicity and fraud. The Foundation has policies. systems and procedures in place to 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 lo the Trustees on the internal financial controls within the eharily. The report presented lo the Trustees in both August 2021 and 2022 concluded that the internal financial controls were fil for purpose and proportionate to the scale and complexity of the Foundation's business. Strategy and Vision This year we launched our new 2030 strategy, developed with our board of trustees, charity partners and key stakeholders from across Berkeley Group. The strategy builds on the recommendations from the Institute of Voluntary Action Research's ten-year evaluation of the Foundation's work, particularly feedback gathered from charity partneTS through four focus groups and an anonymous survey. The result is a long-lerm strategy. which sees us evolve our previous goals, making them more relevant to a changing external environment and bringing more young people into each stage of the granl-making process. Our 2030 vision is that young people and their communities will have the tools and resources they need to thrivo and be a force for change in the world. Our vision is supported by five impact goals, which define the difference we want lo make through our work.. A safe place to call home Ev8ryone has somewhere lo live that IS $8fe, secure and sustain8ble Journey to employment Every young person is prepar8d for work and has the opportunity lo build 8 sustainable career Health and wellbeing Everyong has the support they need to live happier, healthier lives. Youth leadership Young people are empowered to positively impact their own lives and the communitNes in which they live A resilient voluntary se¢tor Our communities includ8 a voluntary sector that is effective, inclusivg and well resourced The first three of these see us continuing our work lo tackle homelessness, ensure young people can access decent, sustainable employment, and support good physical and mental health. Our new fourth goal of "Youth leadership will fund more work lo develop the next generation of young leaders, and ensure that young people are able lo influence positive change in their own lives and in their communities. Finally, our developing work under"A resilient voluntary sector. will support small to medium charities and CICS lo build their organisalional resilience their ability lo plan for, cope with, and respond lo change whether through improved governance and people power, better financial planning or stronger systems and slralegies. In this way, we hope lo ensure that they will be around lo support young people and their communities for many years lo come. 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 Vve'll add value to our partnerships through our expertise, networks and relationship with Berkeley Group We'll learn from our work and share our learning across the public, private and voluntary sectors We'll ensure that diversity, equity and inclusion is at the heart of everything we do We'll enable young people to play an active role in the Foundation's work The new strategy also includes an update to our funding streams. This is to reflect the changing environment of grant-making., making OUT funding process more transparent, and allowing us to continue to grow our funding. Activities and achievements ActiViTties The Foundation supports people in London, Birmingham and the South of England through five deeply inlerconnecled impact goals.. 'A safe place lo call home,, 'Journey lo employment,, 'Heallh and wellbeing,. 'Youlh leadership, and 'A resilient voluntary sector,. The Foundation primarily operates through three levels of charitable partnership.. Strategic Partnerships.. We have a small number of long-lerm Strategic Partnerships with org8nisalions that share our goals and values. We aim lo create transformational change through these relationships. including by drawing on the full range of support from our colleagues across Berkeley. We supported six Strategic Partnerships during the year. Community Partnerships.. Each Berkeley Group operating business selects a local charity lo partner with. These are usually small-to-medium sized organisalions working in the local areas, and provide a focus of staff fundraising and volunteering. Resilience Fund.. Our newest funding programme offers grants and support lo small-to-medium sized charities lo invest in their organisalional development, building resilien￿ for the future. Over the last 12 months, our partnerships have reached 12,320 people across London, the South of England and Birmingham. We have donated £3.3 million lo the voluntary sector through Foundation grants 1£2.5 million) and staff fundraising I£0.8 Million), and seen 550/0 of Berkeley staff get involved through fundraising, volunteering and Give As You Earn. We introduced a match funding scheme during the year lo match staff fundraising, volunteering and Give As You Earn for our charity partners. We remain commilled to building strong. enduring and Irust-based relationships, and believe that investing for the long term is the best way lo maximise the impact of our funding.11 enables us lo build truly impacttul partnerships which can harness skills, expertise, brand and reach, as well as funding. strategic P8rtn8rships Our Strategic Partnerships are central to our charitable giving and stretch across our five impact goals. They provide a core of strong, well-re50urced, long-lerm 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 networks of the Berkeley Foundation. A brief summary of each of the six partnerships we supported during the year is provided below.. Crisis." Our partnership with Crisis continues lo support the charity's employment services across London, as well as the place-based partnership with Crisis Skylight Brent, aimed al creating local systems change. The Change Foundation.. Our support for Street Elite, a programme which uses sport to engage young people impacted by crime, violence and inequality, continues in a number of London boroughs and we extended our support lo the programme in Birmingham for a further three years. The Lord's Taverners.. Our partnership with the Lord's Taverners continues lo support the Super 1 s disability cricket programme. both across London, the South East and the Wesl Midlands. The Mayor's Fund for London: Our partnership continues lo support the Kitchen Social programme, which is tackling food insecurity through a network of community food and activity hubs. MyBnk: Our partnership supports MyBnk's The Money House programme, which supports care experienced young people moving into independent accommodation. We renewed our partnership during the year, commilling a further £1 million over three years to the continued delivery and expansion of The Money House in London, as well as launching outside of London for the first lime, Working with young people in Birmingham. Imperial College London: Our partnership with Imperial College London continues lo suppoil the Makerspace Programmes. aimed at engaging young people in the White City area in design and making. Community Partnerships We have 19 local partnerships with organisalions nominated and selected by our staff. These range from grassroots homelessness projects to children's hospices. They are long-lerm relationships lasting at least three years and, in some cases, much longer. This gives the IMO organisations the chanee lo really gel to know and understand each other. A partnership plan is developed which focuses not only on support through fundraising bul also on staff volunteering and capacity building, Community Partnerships are the main focus of staff fundraising across the Berkeley business. This year, fundraising has been significantly increased following the easing of Covid-19 reslriclions, raising over £800,000 for their local partners during the year12021.. £255.0001, through a wide variety of fundraising events and through Give as You Earn. This money can make a huge differen￿ to the small-lo-medium sized organisalions we support. Resilience Fund This year we launched the Resilience Fund, a brand new fundin9 programme which aims to help small-lo- medium sized charities and CICS build their organisalional resilience and sustainability for the future. This was in response lo the ongoing impact of the pandemic and the rising cost of living on people in our communities, and the increased pressure this places on charities as they strive to meet rising demand in an increasingly challenging funding environment. Following the launch in the year. we have now made our first ten grants to a diverse range of community organisalions working in the youth employment space. We are looking forward to beginning our learning journey with these organisations. and bringing on board a further len partners in 2022123. Aehievgments Since launching our new 2030 strategy we have already made strides towards reaching each of our five impact goals. Our achievements in the year are summarised below.. 2030 Goal A safe place to call home Everyone has somewhere lo live that is safe. secure and sustainable Achievements in 2021122 Our partnerships with homelessness charities supported 1,891 people experiencing or al risk of homelessness We renewed our youth homelessness prevention partnership with MyBnk for a further three years, expanding the programme into Birmingham We supported New Horizon Youth Centre lo pilot Hotel 1824 - London's first emergency accommodation for oun rou h slee ers Our partnerships with employment and skills charities supported 2,031 young people We renewed our partnership with The Change Foundation lo deliver Street Elite in Birmingham for a further three years We hosted 'Creating Opporlunilies, Nurturing Talent, in November, bringing together voluntary sector partners to discuss what is needed in tackling youth unemployment over the comin months and ears Our partnerships with health and wellbeing charitie5 reached 8,398 people in our local communities We supported the Kitchen Social programme lo provide food and activities for children at risk of food insecurity during the school holida We developed a new Strategic Partnership with Groundwork London, which will support young people lo build their leadership skills and improve local green spaces. This new arlnershi will launch in 2022123 We launched our new Resilience Fund, commilling £298,000 in grants to support len small-lo medium sized organisalions lo develop their organisational resilience Journey to employment Every young person Is prepared for work and has the opportunity lo build a sustainable career Health and wellbeing Everyone has the support they need to live happier, healthier lives Youth leadership Young people are empowered lo positively impact their own lives and the communities in which they A resilient voluntary sector Our communities are supported by a voluntary sector that is effective, inclusive and well- resourced To help us reach our impact goals, we've sel commitments lo ensure we are working in a way that reflects our vision and aligns with our strategy. They cement our belief in partnership working and including young people in decision-m8king processes. 2030 Commitment Partnerships We'll build partnerships with expert charities, investing in their work to help communities thrive Achievements in 2021122 We extended our partnerships with six of our current charity partners, and made commitments lo 12 new charity partners The average length of our current partnerships is 2.6 years 44QA of our lolal funding was unreslricled or allocated lo core costs We signed up to IVAR'S eight principles for en and Trustin Granlmakin 2030 Commltment Addlng value We'll add value lo our partnerships through our expertise, networks and Achlevements in 2021122 55,10 of Berkeley staff got involved in supporting our partnerships, through fundraising, volunteering or payroll giving Staff raised £869.000 for the Foundation and our charity partners- a return lo pre-pandemic levels We published an external evaluation of the Foundation's work over our first ten years, carried out by IVAR We delivered two learning events in the year, bringing our charity partners together to network and share ex ertise Work to develop our new diversity, equity and inclusion plan gol underway We introduced an external grants panel into our decision making process lor the Resilience Fund, involving charity partner representstives for the first time 300/0 of grants made in Year 1 of our Resilience Fund went lo diverse-led or anisalions We undertook exploratory work around involving young people in our grants panel for the Resilience Fund- and we'll build on this in 2022123 Learning and sharing We'll learn from our work and share our learning across the public, private and voluntary sectors Diverslty, equity and Inclusion We'll ensure that diversity, equity and inclusion is at the heart of everything we do Youth participation We'll enable young people to play an active role in the Foundation's work 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 lime 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 ourwork. A significant percentage of The Berkeley Group staff support the work of the Foundation through direct giving, fundraising and volunteering. 1,632 current Berkeley stsff contributed lo the Foundation in 2021122 {550AI. and 29010 of all Berkeley staff were si9ned up lo Give As You Earn at April 2022. Financial review Income for the year was £2,627.797 (2021.. £2,592,800). 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 fundraising and Give As You Earn ¢onlribulions, 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 Berkeley Group has again advance funded commitments forecast for the next financial year. Expenditure in the year totalled £2,595,592 {2021.' £2,477,830). This related to commitments and grants to Strategic Partnerships, Designated Charities and grants and donations to other charities within the Foundation's core focus areas, as well as support costs paid for by The Berkeley Group. Grants and donations tolalling £2,478,601 were physically paid by the Foundation during the year12021'. £2,476,863). The Foundation made no political donations during the year12021'. nil}. In addition. a further £815,986 was raised by Berkeley Group staff via fundraising and Give As You Earn and donated directly to the Foundation's partner charities in the year12021'. £326,262). This amount is not reflected in these financial statements. The value of the time and talent donated by Berkeley Group staff IS also not included in these financial statements. The charity is in a nel asset position at the year-end of £1.852,17512021.. £1,819,970), with all funds being unrestricted. The Foundation is forward funded by Berkeley Group al each balance sheet dale ￿rith all commitments approved by the Trustees, and all costs of the Foundation being borne by The Berkeley Group. In addition. advance funding has again been received before the year end from The Berkeley Group for other commitments forecast for the coming year not yel approved. These matters has been assessed when considering the Basis of Preparation forlhe financial slalemenls, as sel out on page 17. Reserves policy The Trustees, policy 15 to maintain sufficient reserves to meet existing and forecast commitments to charities. The reserves held al 30 April 2022, 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 financial slatemenls. Future actions As part of our new 2030 strategy launched in 2021122, we sel a series of Ihree-year objectives against each of our five impact goals and our five commitments about the way we will work over the coming years. We have sel a series of objectives for the coming year against each of these, lo build on our work and achievements in 2021122 and lo further grow and develop our work. Public Benefit The Tru51ees confirm that they have complied with their duly lo have regard to the guidance On public benefit published by the Charity Commission in exercising their powers and duties. including when reviewing the Foundation's aims and objectives and in planning future aclivilie5 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 Actions above. Statement of Trusteos. responsibilities in iespect of the Trustees, Report and the financial statements The Trustees are responsible for preparing the Trustees, Report and the financial statements in accoidance with applicable law and regulations. Company law requires the Trustees lo prepare financial slalements for each financial year. Under that law they have are required lo prepare the financial statements in aceordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Praclicel, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the Trustees musl not approve the financial slalements unless they are satisfied that they give a true and fair view of the slate of affairs of the charitable company and of the income and expenditure for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consislenlly., make judgements and estimates that are reasonable and prudent.. stale whether applicable UK Accounting Stsndards and the Statement of Recommended Practice have been followed, subject lo any material departures disclosed and explained in the financial slalements", assess the charitable company's ability to continue as a going concern. disclosing, as applicable. mallers related lo going concern,. and use 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. The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain the charitable company's transactions and disclose with reasonable accuracy al any lime the financial position of the charitable company and enable them lo ensure that the financial slalemenls comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary lo enable the preparation of financial slalements that are free ffom material misslatemenl. whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open lo them to safeguard the assets of the charitable company and lo prevent and detect fraud and other irregularities. The Trustees are responsible for the rna1ntenan￿ and integrity of the corporate and financial information included on the charitable company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. By order of I oard W J Prltchard Trustee 25 January 2023 Independent audltor's roport to the membgrs of The Berkelgy Charltable Foundation Oplnion We have audited the financial stal8menls of The Berkeley Charitable Foundation I the charitable company.) for the yearended 30 April 2022 which comprise the Slalement of Financial Aclivilies. Balance Sheet, Cash ow statement and related notes. including the accounting policies in note 1. In our opinion the financial stalemenls.. give a true and fair view of the slate of the charitable company's affairs as al 30 April 2022 and of tts Incoming reSoUr￿S and application of resour¢es, including ils income and expenditure. for the year then ended. have been property prepared in accordance with UK accounting Standards, including FRS 102 Th8 Financial Reporting Standard appI￿able in the UK and Republic ol Irel8nd.' and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI I'ISAS IUKI") and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsitrjililies under. and are independent of the chantable company in accordance with. UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained 1$ a sufficient and appropriate basis for our opinion. Golng concern The Trustees have prepared the fi'nancial statements on the going concern basis as they do not intend lo liquidate the charitable company or lo cease ils 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 ¢ould have cast significant doijbl over its ability to continue as a going concern for al least a year from the date of approval of the financial slalemenls I'lhe going concern peri¢xl'l. In our evaluation of the Trustees, Conclusions, we considered the inherent risks lo 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 thi$ work.. we consider that the Trustees, use of the going Concern basis of accounting in the preparation of the financial slalemenls is appropriate., we have not identified, and concur with the Trustees, assessment that there is not, a material uncertainly related lo events or conditions that, individually or collectively, may cast significant doubl on the charitable company's ability to continue as a going concern for the going concern period. However. as we cannot predi¢l all future events or condib.ons and as subsequent events may result in outcomes that are inconsislenl with iudgemenls that were reasonable al the time they were made. the above conclusions a￿ not a guarantee that the charitable company will continue in operation. Fraud and breaches of laws and regulations - ablllty to detect Identifying and responding to risks ofmalerial miss18t8ment due to fraud To identify risks of material mi5Stalemenl due lo fraud I'fraud risks"} we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity lo commit fraud. Our risk assessment procedures included.. enquiring of management as lo the chaiilable company's high-level policies and procedures to prevent and delect fraud, as well as whether they have knowledge of any a¢tual, suspected or alleged fraud,. ading the Trustees, board meeting minutes., using analytical procedures lo 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. As ￿qUIred by auditing standards, we perform procedures lo address the risk of management override of controls, in particular the risk that the Charitable company's management may be in a position lo make inappiopriate accounting entries. On this audit we do not believe there is a fraud risk related lo revenue recognition because the revenue is made up of a small number of transactions all Ihat Can be vouched lo cash with very limited opportunity or incentive to fraudulently report revenue. We did not identify any additsonal fraud risks. Idenlilying and responding to nsks of matenal misst8t8ment 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 the Trustees las required by auditing standards). and discussed wslh the trustees the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulallons 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 lo laws and regulations that directly affect the financial statements including financial reporting legislation (including related Charities legislalionl and we assessed the exlenl of compliance with these laws and regulations as part of our procedures on the related financial statement items. The charitable company is not subjecl to other laws and regulations where the consequen¢e$ of non- compliance could have a material effect on amounts or disclosures in the financial stslemenls. Context of the ability of the audit to d8lect fraud or breaches of law Orregulat￿n Owing lo the inherent limitations of an audit. there is an unavoidable risk that we may not have detected some material misstatements in the financial stalemenls, 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 fi"rTran¢ial slatemenls. the less likely the inherently limited proceéures required by auditing standards would identify In addition, as with any audit, there remained a higher risk of non-deleclion of fraud. as these may involve collusion, forgery, intentional omissions. misrepresenlalions, or the override of internal controls. Our audit pro¢edLbres are designed to detect material misslatemenl. We are not responsible for preventing non- compliance or fraud and cannot te expected to delecl non-compliance with all laws and r8gulalions. Other informatlon 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 slated below. any form of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether, based on our financial $tstemenls audit work. the information therein is materially misslaled or inconsislenl with the financial statements or our audit knowledge. Based solely on that work-. we have not identified material misslalements in the other infomation.. in ouropinion the information given in the Trustees. Report is consislenl with the financial statements., and in our opinion that report has been prepared in accordance w￿h the Companies Act 2006. Matters on which we •r8 requlred to report by exceptlon Under the Companies Act 2006 we are required lo report to you if, in our opinion.. the charitable company has not kept adequate accounting records or relums adequate for our audit have not been received from branches not visited by us-, or the financial 51atemenls are not in agreement with the accounting records and returns., or certain disclosures of Truslee5' 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, ## **Trustees' responsibilities** As explained more fully in their statement set out on page 10, 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.orq.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** **27 January 2023** 13 -rHF. BF.RKLLEY CFIARI'I'ABI.r. roiJNI)A'I ION 'liustee$' Ilepori and binanLial Sialeinenis 30 Api'il 2022 Statement of Financial Activities (incorporating the Income & Expenditure account) for the yearended 30 Apnl 2022 2022 Unrestricted funds 2021 Unrestricted funds Note Income from: Donations and legacies Invéstments 2,623,164 4,633 2,580,990 11.810 Total 2 627,797 2.592,800 Expènditurg on: Chaiilable acliviliès Other 12,595,378) 12141 12,477.8111 1191 Totsl 2 595,592 2,477,830 Not incom* 32.205 114,970 R•conciliatlon of funds.. Total funds brought forward 1.819.970 1,705,000 Total funds carried forward 1,852,175 1,819.970 The notes on pages 17 to 21 form part of these financial statements. The income and resulting nel expenditure in the financial year arise from continuing operations. There are no recognised gains and losses other than those disclosed above. THE BERKELEY CHARITABLE FOUNDATION I'ru51ees R¢port and financial Siatements 30 Api'il 2022 Balance Sheet at 30 Apnl 2022 Note 2022 2021 Current a$¥ets Debtor5 Investments Cash at bank 5,992 5,210 4,193,665 4,481,379 4,199.657 4,486,589 Creditors: amounts falling due within onè year 11,496,561) 11.447,2911 Net eurrent assets 2,703.096 3,039,298 Creditor8.' amounts falling due after one year {850,9211 11,219,328) Net a5¥ets 1,852,175 1,819,970 Funds Unieslricted.. General Designated 1,852.175 1,819,970 1,852,175 1,819,970 The notes on pages 17 to 21 form part of these financial slalements. These financial s on ils behalf by.. ments were approved by the Board of Trustees on 25 January 2023 and were signed W J Pritchard Trustee TIIE t5ERKF.I.I'.Y CIIAIII'fARI.F. foiiNI)A'I'ION -liwtccs' Ilepurl an(1 l.iiianciol 8lalcniLnis 30 April 2022 Cash flow statement Note 2022 2021 Cash flows Irom operating activities 1287,7141 1223,4741 Cash flows from investing activities 2,000.000 Ch8nge in cash and cash equivalents in the iepotlino period 1287,7141 1.776,526 Cash and cash equivalents at Ihe beginning of the reporiing period 4,481,379 2,704,853 Cash and cash equivalents at the end of the reporiing p6ri0d 4,193,665 4,481,379 NOTES TO THE CASH FLOW STATEMENT a. Reconciliatlon of nèt expenditur• to net cash flow from opèratlng activitles 2022 2021 Net income for the reporting period IlncreasellDecrease in debtors IDecreaselllncrease in creditors 32,205 17821 {319,13n 114,970 46 1338,4901 Net Cash lused inllfrom opgratlng activities 287,714 223,474 b. Analysls of cash and cash equivalants 2022 2021 Cash at bank 4.193,665 4,481.379 THE BERKELEY CHARII'ABLE FQUNJ)ATION TnJsle¢s' Repuit and Financial Slalemcni$ 30 April 2022 Notes (forming p8rt of the financi81 statements) Accounting pollcles Basls of preparatlon and Golng Concem The financial statements have been prepared under the historical cost convention and in accordance with Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 2015}- (Charities SORP IFRS 10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} and the Companies Act 2006. The Foundation meets the definition of a public benefit entity under FRS 102. The fi'nancial slalemenls have been prepared on a going concern basis which the Trustees consider lo be appropriate for the following reasons. The charitable company is forward funded by The Berk818y Group al each balance sheet dale with all commitments approved by the Trustees and charged lo the Slalemenl Df 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 commilrnenl lo continuing the activities of the charitable company for a period of al 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 lo continue lo meet ils liabilities as they fall due for al least 12 months from the dale of approval of the financial slalemenls and therefore have prepared the financial slalemenls on a going concern basis. The Trustees are also of the view that there are no material uncertainties about the entity's ability lo Continue as a going Concern. The principal accounting policies adopted, judgements and key SoUr￿S of eslimalion uncertainly in the preparation ol the financial slalemenls are as follows.. Income Income is recognised when.. the Foundation has unconditional enlillemenl to the resources., the receipt of the income is considered probable., and the value can be reliably measured. Expendlture and liabllltles Liabilities are recognised as soon as there is a legal or constructive obligation commilling the charity lo pay out resources. Grants payable are only recognised in the accounts when a commitment has been made and there are no conditions lo be mel relating ID the grant which rernain in the control of the ¢harily. The eslimaled value of the lime of staff employed by The Berkeley Group is accounted for as donated services, as are the costs paid for by The Berkeley Group on behalf ol the Foundation. An equal amount is a¢¢ounled for as a cost within support or governance costs as appropriate. Governance costs represent the costs of meeting legal, conslilulional and stalulory requirements of the Foundation. 'I'IIE LlbRKF.i.rY Ll.IAIIITAtJi.r i-.01SNI)A'I'ION Ti'usl¢e%' Repoil and financial Sialeinenis 30 Api-il 2022 Notes (forming part of the financial slalements) Fund accounting The Foundation has vaTlOUS types of funds for whi¢h it is responsible and which require separate disclosure.. Restricl8d Funds Donations that are subject to specific conditions specified by the donor are recorded as reslricled 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 Restricted Funds al the period end. Unreslricled funds The Foundation has two categories of unrestricted funds.. General Funds These funds are expendable at 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 charitable aclivilies. Desi naled Funds These funds have a designated purpose as determined by the Trustees. Designated funds remain at the discretion of the Trustees and may be transferred lo general funds if deemed necessary. Taxatlon The Berkeley Charitable Foundation is considered ID pass the tests sel out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore il meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is exempl from laxalion in respect of income or capital gains received 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 lax charge has arisen in the period. Current asset investments Current asset investments represent cash on deposit or cash equivalents with a maturity of less than one year held for investment purposes. Income from inveslmenls fepresenls interest earned on cash deposits up to the balance sheet dale. Legal ststus of the charlty The charity is a company limited by guarantee, incorporated in the UK, and has no share eapilal. In the case of an insolvent winding up the members will be required to contribute the amount of £1 each to the assets of the charity. Income 2022 2021 Funding from Thè Berkeley Group Fundraising and Gift Aid GAYE (including match funding) Other donations Donated services 2,100,OLX) 16,085 69.965 1.200 435,914 2,119,037 699 121,546 270 339,436 2.823,164 2,580,990 Funding from The Berkeley Group is primarily in respect of the fotward 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 9. THE BERKLLEY CHARITABI.F. fouNDATION 'I'TU51ees' Rewil and Financial Siai¢mtn 30 April 2022 Notes (continued) (forming part of the financial statements) Donated services reflect the approximate cost of services provided 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, lolalling £425,790 12021.. £330,161). are included in charitable aclivilies, as sel out in note 4 below. In addition, KPhllG LLP audit fees and Trustee indemnity Insurance are paid for by The Berkeley Group, These costs. lolalling £10.12412021'. £9,277), are also sel out in note 4 below. Charltsble activities 2022 2021 Commitments charged in the year (Note 5) Support costs allocated Governanc8 costs 2,159,464 425,790 10.124 2,138.373 330,161 9,277 2.595,378 2.477,811 Support costs allocated The average number of staff working for the Foundation during the year (full lime equivalenll was five 12021. four). They are employed. and have their costs paid for, by The Berkeley Group. Additional support is also provided lo the Foundation by other employees of The Berkeley Group. Emoluments and reimbursed expenses were not paid lo any Trustees duiing the period, who are all employees of The Berkeley Group. The aggregate payroll costs ol the staff working for the Foundation. and of employee services provided by The Berkeley Group are.. 2022 2021 Wages and salaries Employer's National Insuranc6 Pension costs 274,179 31,728 12,184 241,205 26,477 10,737 318.091 278,419 In addition, olhercosls of£107,699 were paid by The Berkeley Group on behalf of the Foundalion12021'. £51,742). Govemanoe costs Governance costs comprise KPMG LLP audit fees and Trustee indemnity insurance, as sel out below.. 2022 2021 Trustee indemnity insuran Fees payable to 8udilor- external audit 5.124 5,000 4,277 5,000 10,124 9.277 19 T14E BERKf.i.EY 11.IARITABI.F. r()IlNI)A'I'ION Ti'u%le¢s' Rcpoil dttd finaiicial Siateiiienl Notes (continued) (forming part of the financial $181ements) Grants and Commltments During the year £2,159,464 of grants and commitments made were charged lo the Slalemenl of Financial Activities. 2022 2021 Benefieiary Strategic Partnerships The Change Foundation Irvperial College Mayor's Fund for London The Lord's Taverners MyBnk Richard House Multiple Sclerosis Trials Collaboration Association of Bri115h Neurologists New Horizon Youth Centre Khulisa MAC-UK Anna Freud National Cenlie ft)r Children and Families Other ch8rilies1£50.000 or less) Release of commitments previously rnadè 135,139 230,128 600,ODO 107,780 15.000 15,000 180,000 150,000 1,040,469 210,000 150,000 120,000 102,335 149,129 319,021 773,856 2,159,464 2,138.373 The commitments lo the Foundation's Strategic Partnerships are mulu-year agreements with payments due on specific dales. Payments made during the year are sel out below.. 2022 2021 Grants payable brought forward (note 8) Amounts charged lo the Statement of Financial Activities 2.666,619 2.159,4e4 4,826,083 3,005,109 2,138,373 5,143,482 Payments in the year.. Grants and donations 12,478,601) {2,476,8631 Grants payable carried forward (note 81 2,347,482 2,666,619 20 THE BERKELEY CHAKI'I'ABLE FOUNDATION Trusiees, Report a[￿ FinDncial Slalements 30 April 2022 Notes (continued) (forming part of the financial statements) Debtors 2022 2021 Fundraising 8nd Give As You Eam Inteie51 3,906 2.086 5,115 95 5,992 5,210 Investments 2022 2021 Cash on depowl Current asset investments represent amounts on deposit with a malurily of less than one year held for investment purposes. Credltors 2022 2021 Amounts falling due within one year- grants payable 1496,561 1,447,291 Amounts falling due after one year- grants payable 850.921 1,219,328 Movement of funds Unrestrlcted Designated Genèral Total Opening balance Income Transfers Expenditure 1,819,970 2,627,797 1,819,970 2,627,797 12.595,5921 12,595,592) Funds at 30 April 2022 1.852,175 1.852,175 Designated funds have a designated purpose as determined by the TTuslees. 10 Related Party Transactlons The Berkeley Group has provided funding lo the Foundation and has also provided donated services, as sel out in notes 3 and 4 above.