Annual Report & Accounts 30 June 2023 

Your Partner in Giving. Helping you achieve your philanthropic goals 




## TABLE OF CONTENTS 

## **Reports** 

Contacts, officials and advisors .....................................................................................................3 Welcome from the Chair ..................................................................................................................4 What we do .........................................................................................................................................6 Trustees’ report ..................................................................................................................................8 Strategic report .................................................................................................................................14 Statement of trustees’ responsibilities .......................................................................................19 Independent auditor’s report ........................................................................................................21 

## **Financial Statements** 

Statement of financial activities .................................................................................................. 26 Balance sheet...................................................................................................................................27 Statement of cash flows ................................................................................................................28 Accounting policies .........................................................................................................................31 Notes to the financial statements ...............................................................................................36 

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## CONTACTS, OFFICIALS & ADVISORS 

## **Chair** 

Eileen R. Heisman 

**Trustees** _(who served during the year)_ Eileen R. Heisman Mary Boakye Ceris Gardner Charles Lubar David Rowe Iain Younger 

## **Principal Investment Managers** 

UBS 5 Broadgate London EC2M 2QS 

## **Solicitors** 

Withers LLP 20 Old Bailey London EC4M 7AN 

## **Chief Executive Officer** 

John Canady 

**Company Number** _(England & Wales)_ 08612103 

## **Registered Address** 

20 Old Bailey London EC4M 7AN 

## **Principal Address** 

## **Charity Registration Number** 

_(England & Wales)_ 1153376 

125 Old Broad Street Suite 610 London EC2N 1AR 

## **Independent Auditor** 

RSM UK Audit LLP 25 Farringdon Street London EC4A 4AB 

## **Bankers** 

Bank of America NA 2 King Edward Street London EC1A 1HQ 

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## WELCOME FROM THE CHAIR 

I am delighted to share with you our _Trustees’ Report and Accounts_ for fiscal year 2022/23. 

This past year has been marked by global economic uncertainty and political turmoil. In the UK, the rising cost of living has pushed many families further into financial distress. Thousands of people continue to be affected by ongoing conflict globally. Around the world, natural disasters have devastated entire communities. Against the backdrop of a difficult year, our donors have responded with unprecedented compassion and generosity. I am pleased to report that NPT Transatlantic has made grants to more charitable organisations than ever before, helping 500 charities. 

NPT Transatlantic provides donor-advised funds (DAFs) and other giving vehicles to help donors support the charities and causes most important to them. As a UK and US dual-qualified charity, contributions to NPT Transatlantic are recognised for taxadvantaged treatment in both countries. 

Our goal is to make charitable giving simple and efficient, and we reached new milestones in fiscal year 2022/23: 

We can only meet our mission of increasing philanthropy in society through collaboration with others. I am grateful to NPT Transatlantic’s trustees, staff, partners and, most importantly, our generous donors. 

Warm regards, 

Eileen R. Heisman 

**Eileen R. Heisman Chair, Board of Trustees NPT Transatlantic** 


- Donor-recommended grants were £68.3 million this fiscal year, bringing the cumulative grants since inception to £212.2 million. 

- Contributions to donor-advised funds and donor-designated increased by 33%. 

- Charitable assets in donor-advised funds and donor-designated fund accounts reached £126.0 million, an increase of 18% from the prior year, all of which will support qualified charities in the UK, US and around the world. 

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## IN FISCAL YEAR 2022/23: 

## **NPT Transatlantic made** 

**736 donor-recommended grants, ranging from £200 to £10.5 million** 

**NPT Transatlantic granted** 

**£68.3 MILLION in total** 

**500 UNIQUE CHARITIES received donor-recommended grants, with donors supporting a wide range of organisations large and small, in the UK and around the world** 

**NPT Transatlantic made grants to 18 COUNTRIES** 




## WHAT WE DO 

## **What is a donor-advised fund?** 

A **DONOR-ADVISED FUND (DAF)** is a philanthropic fund administered by a charity, like NPT Transatlantic. _**A DAF is a flexible alternative to a charitable trust or foundation.**_ 

Donors establish a DAF account and make charitable contributions by donating **cash** or **appreciated assets** . Donors _**recommend investments**_ to grow the assets in the DAF, and _**recommend grants**_ to charities anywhere in the world at any time. Donors receive UK and US tax relief for each contribution to their DAF account. 




## **How a donor-advised fund works** 


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DONOR-<br>ADVISED<br>FUND<br>DONATE INVEST GRANT<br>**----- End of picture text -----**<br>


## **What is a single gift to a Designated Fund?** 

Donors who wish to make a **DUAL-QUALIFIED SINGLE GIFT** may contribute to a NPT Transatlantic Designated Fund to support _**the charity of their choice**_ . 

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TRUSTEES, REPORT


The Trustees (who are also the directors for purposes of Company Law) present their statutory report with the financial statements of NPT Transatlantic Limited (“NPT Transatlantic”) for the year ended 30 June 2023. The financial statements have been prepared in accordance with the accounting policies and comply with the charitable company’s governing document, the Companies Act 2006 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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). 

NPT Transatlantic’s mission is to inspire, support and increase charitable giving in society, primarily through charitable donor-advised funds (DAFs), which benefit charities and voluntary organisations in the UK and internationally. 

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## **Mission & Historical Background** 

NPT Transatlantic’s mission is to inspire, support and increase charitable giving in society, primarily through charitable donoradvised funds (DAFs), which benefit charities and voluntary organisations in the UK and internationally. 

In addition to offering DAFs, we provide a number of other philanthropic services to further our mission, such as restricted donordesignated funds (DDFs) intended for specific charities. This giving vehicle is established by NPT Transatlantic to allow donors to use NPT Transatlantic as a tax efficient intermediary when making donations to particular charities. ‘American Friends of’ organisations and colleges and universities are examples of organisations whose donors can benefit from this service. 

NPT Transatlantic was established as a registered charity in England and Wales in 2013 by National Philanthropic Trust, a charitable 501(c)(3) organisation in the United States (US), in response to growing international interest in DAFs. DAFs are a significant and popular form of giving in the US and are growing in popularity in the UK and other countries around the world. 

As a dual-qualified entity, NPT Transatlantic can ensure that charitable contributions from dual US-UK taxpayers are recognised for taxadvantaged treatment in both countries. 

NPT Transatlantic aims to achieve its mission in a number of areas: 

- research and promote DAFs as a costeffective vehicle for giving; 

- support a broad range of donors— corporate, individual and charitable— through the establishment of philanthropic giving vehicles; 

- provide grantmaking advice, expertise and support to donors; 

- maximise donations through gift aid recovery and use of government incentives in the US and UK for charitable contributions; and 

- optimise funds for grant making through the prudent investment and stewardship of charitable contributions. 

The Trustees have paid due regard to public benefit guidance issued by the Charity Commission in deciding what activities the charitable company should undertake. 

## **Governing Document** 

The charity is controlled by its governing document, the Memorandum and Articles of Association, and constituted as a company limited by shares as defined by the Companies Act 2006. 

The charity’s sole shareholder is National Philanthropic Trust, a US charitable 501(c)(3) organisation. 

## **Measuring Impact & Public Benefit** 

As a grantmaking charity, providing public benefit is at the heart of the charity’s activity. NPT Transatlantic seeks to advance philanthropy in society, primarily through the provision of charitable DAFs. 

Donors to NPT Transatlantic can recommend grants from their DAFs to support organisations of their choice, provided that such organisations pursue charitable purposes as the term is defined under UK and US law. NPT Transatlantic reviews and must approve all grant recommendations before issuing the grant. 

The Trustees seek to certify that each grant recommended from a DAF is in furtherance of a charitable purpose and offers an identifiable benefit to the public or a significant section of the public and that any private benefit that may arise to any person or company as a result is not more than incidental. 

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## **Charitable Objectives** 

The charitable objectives are to increase the amounts available for charitable purposes by: 

- encouraging giving; 

- facilitating efficient collection, investment and distribution of funds to minimise overheads; 

- maximising eligibility for tax relief to increase the benefit to charitable purposes in proportion to the cost; and 

- applying those funds raised in support of such exclusively charitable purposes as the Trustees shall from time to time determine. 

## **Fundraising Statement** 

NPT Transatlantic does not actively solicit donations and therefore is not registered with the Fundraising Regulator or subscribed to any fundraising codes of practice. When donations from individuals are received, the charity aims to protect personal data and never sells data or swaps data with other organisations. During fiscal year 2022/23, the charity received no complaints about fundraising activities. 

## **Energy & Carbon Reporting** 

NPT Transatlantic is committed to looking after the environment and is striving to become more energy conscious with a focus on reducing carbon emissions and the promotion of energy efficient actions. NPT Transatlantic is exempt from disclosing energy consumption as less than 40,000kWh of energy was consumed during fiscal year 2022/23. 

## **Plans for Future Periods** 

We will continue to promote philanthropy in society by working with donors to help them effectively manage their charitable giving. In addition to raising awareness of DAFs with donors, we will also partner with their advisors--wealth managers, tax advisors, solicitors and estate planners--to ensure advisors are aware of the benefits of incorporating philanthropy and DAFs into their client discussions. Our efforts to be a partner in giving are all focused on increasing charitable giving in the UK and beyond. 

## **Grantmaking Priorities & Exclusions** 

The Trustees regularly review NPT Transatlantic’s policies, objectives and guidelines to ensure that grants made are in support of exclusively charitable purposes and for public benefit. As such, grants cannot be paid to 

- support activities which are not exclusively charitable; 

- individuals; 

- private non-operating foundations (as defined by US law); 

- provide any private benefit (e.g. payment of tuition, dues, membership fees, benefit tickets or goods bought at charitable auction); and 

- satisfy any political contributions or support campaign activities. 

Charities are notified electronically of grants awarded and grant payments are made electronically. Grant recipients may or may not submit to NPT Transatlantic regular or one-off progress reports, depending on the nature of the project, the purpose and terms of the grant and the size of the grant awarded. 

When formal monitoring is required, the process aims to be unobtrusive since some charities can struggle under the burden of monitoring requirements. Grant recipients submit information on a NPT Transatlantic form that is provided, or similar report that has been prepared for another funder, as many of the grants are contributions to projects also supported by one or several other donors. 

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## **Trustees** 

## _**Recruitment and appointment of new Trustees**_ 

At any one time the charity has between four and seven Trustees who meet in person and by teleconference a minimum of three times every year and additionally as required. The identification of potential new Trustees is carried out by the Board, the aim being to appoint those with the appropriate expertise and experience for NPT Transatlantic’s work. On agreeing to become a Trustee of the charity, new Trustees are thoroughly briefed by their co-Trustees and key management on the history of the charity, day-to-day management, responsibilities of the Trustees, current objectives and future plans. The Trustees are also encouraged to attend training and update courses. 

## _**Register of Trustees’ interests**_ 

In accordance with Company Law and the Charity Commission guidance that charity Trustees and key management who may have a personal interest in any matter before the Trustees should declare that interest and refrain from taking part in any discussion relating to it, a ‘Register of Trustees’ Interests’ is maintained and updated annually. 

Trustees are required to disclose all relevant interests and register them with the Chief Executive Officer, and, in accordance with the charity’s policy, withdraw from decisions where a conflict of interest arises. 

## **Governance** 

## _**Organisational structure**_ 

The Trustees are ultimately responsible for the policies, activities and assets of the charity. They meet a minimum of three times annually to review developments with regard to the charity and its grantmaking and investment activities, and to make any important decisions. When necessary, the Trustees seek advice and support from the charity’s professional advisers 

## _**Key management personnel**_ 

The key management personnel are considered to be the Trustees and the CEO. The Trustees set the pay of the CEO. The Trustees are not remunerated for their roles. 

## _**Administration**_ 

NPT Transatlantic seeks to build efficient and effective administrative systems, whilst recognising the effectiveness of working in partnership with other organisations. To this end, administration, management information systems, payroll and technology functions of the charity are provided to NPT Transatlantic by two organisations: Buzzacott LLP of the UK and National Philanthropic Trust of the US Both arrangements are governed by service agreements which also make provisions for data protection and confidentiality/privacy requirements. 

Trustees are required to disclose all relevant interests and register them with the Chief Executive Officer, and, in accordance with the charity’s policy, withdraw from decisions where a conflict of interest arises. 

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STRATEGIC REPORT


## **Trustees’ Duties** 

The Trustees of NPT Transatlantic must act in accordance with a set of general duties. These duties are detailed in section 172 of the Companies Act 2006, which is summarised as follows: 

“A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: 

- a.  the likely consequences of any decision in the long term; 

- b.  the interests of the company’s employees; 

- c.  the need to foster the company’s business relationships with suppliers, customers and others; 

- d.  the impact of the company’s operations on the community and environment; 

- e.  the desirability of the company maintaining a reputation for high standards of business conduct; and 

- f.   the need to act fairly as between members of the company.” 

The Trustees are briefed on their duties when accepting of the role and annually. Trustees fulfil their duties through a governance framework that delegates day-to-day decision making to key management and personnel (see page 12 for additional details). 

The following sections of the Strategic Report highlight how the Trustees of NPT Transatlantic have successfully fulfilled their duties. 

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## **Achievements & Strategic Goals** 

## _**Contributions**_ 

Our donors contributed £84,420,658 in fiscal year 2022/23 (2021/22 - £63,354,204) to NPT Transatlantic’s DAF accounts and other philanthropic giving vehicles. Wire transfers are the most common method of making contributions. We have also accepted restricted shares, appreciated securities and limited partnership interests as contributions. These contributions are turned into philanthropic capital for the causes and charities closest to our donors’ hearts. 

## _**Investments**_ 

NPT Transatlantic’s assets under management have grown as donors make contributions to their DAF accounts. NPT Transatlantic donors can indicate an investment preference, with reference to preapproved investments and separately managed accounts, including unlisted investments, in an effort to increase the amounts available for grants. Investment performance was positive for fiscal year 2022/23, primarily attributable to investments in the US markets, reporting income and net gains of £10,653,400 (2021/22 – net losses of £8,902,082). NPT Transatlantic’s Trustees carefully review any new investments and also monitor the investment performance on an on-going basis. 

## _**Grantmaking**_ 

NPT Transatlantic’s donors recommended 736 grants totalling £68,251,336 in fiscal year 2022/23 (2021/22 – 672 grants totalling £30,870,705). NPT Transatlantic’s staff assisted our donors with varying steps in the grantmaking process, from answering basic questions about philanthropy to creating complex grant agreements. Our team has substantial knowledge about philanthropy, DAFs and industry best practices that support our donors. We work to help our donors achieve their philanthropic goals. 

(2021/22 - £65,250,980). The increase in contributions is a result of growing awareness amongst donors and their advisors in donor-advised funds as a taxefficient charitable giving vehicle. 

Expenditure for the year was £74,557,185 (2021/22 - £25,336,205). This increase was primarily driven by higher grant making. Despite global investment market conditions, fiscal year contributions exceeded charitable distributions for the year ended 30 June 2023, creating a surplus – including investment gains of £8,342,903 (2021/22 investment losses of £9,414,601) - of £21,333,297 (2021/22 - £30,500,174). Funds at the end of the year comprised £128,309,546 (2021/22 - £106,976,249) of unrestricted and restricted funds. 

## **Reserves Policy & Funds** 

NPT Transatlantic’s free reserves policy is to maintain, ideally, a level equivalent to between three and six months’ general operating expenditure. Unrestricted operating funds are those funds which are not restricted and not represented by DAFs. At 30 June 2023, these funds were £672,011 (2021/22 - £393,635), representing 4.7 months of operating expenditure, and in line with the stated policy. 

The Trustees consider that reserves at this level will ensure that, in the event of a drop in funding, they will be able to continue the charity’s current activities for a period of time that allows for sufficient consideration to be given to ways in which additional funds may be raised. 

Unrestricted donor-advised funds, which have been designated by the Trustees, are those funds held by NPT Transatlantic pending recommendation for onward distribution to third party charities. At 30 June 2023, these funds were £127,478,121 (2021/22 - £103,419,845). 

## **Financial Review** 

NPT Transatlantic is committed to increasing philanthropy in society and the 2022/23 fiscal year demonstrated the continued success of the charity in its mission. Income for the 2022/23 fiscal year was £87,547,579 

Restricted donor-designated funds are those funds held by NPT Transatlantic for specific charitable purposes pending distribution to third party charities specified at the point of donation by the donor. At 30 June 2023, these funds were £159,414 (2021/22 - £3,162,769). 

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## **Investment Management** 

The Trustees of NPT Transatlantic are responsible for the management of all funds maintained by NPT Transatlantic, and funds shall be managed in accordance with the principles and standards of prudence applicable under English law. Under its Memorandum and Articles of Association, NPT Transatlantic has the power to invest funds that are not immediately required for charitable purposes. NPT Transatlantic’s investment policy is to hold a diversified global portfolio of investments across a range of asset classes. The portfolio is managed by qualified investment managers approved by the Trustees. NPT Transatlantic seeks to balance risk, return and spend so as to observe proper balance between the need to meet present demands on the charity and the need to allow for future charitable objectives. NPT Transatlantic also considers Environmental, Social and Governance factors into accounts when making investments. 

## **Principal Risks & Uncertainties** 

In line with the requirement for Trustees to undertake a risk assessment exercise and report on the same in their Annual Report, the Trustees initiated a process to assess organisational risk. The Trustees have identified five main areas where risk may occur: 

- governance; 

- operational; 

- financial; 

- environment or external; and 

Financial risks include those arising as a result of poor budgetary control, inappropriate spending, inaccurate accounting and inappropriate investment policies. 

Environment or external risks include the possible damage to the charity’s reputation, through association with unsuitable charities, or with inappropriate investment activity. 

Compliance risks include the effects of government policies, potential adverse changes in these policies and the consequences of non-compliance with applicable laws and regulations. 

The major forms of financial risk NPT Transatlantic faces are volatility in equity and other investment markets due to economic conditions, the attitude of donors relative to their recommendations on investment risk and changes in sentiment concerning equities and within particular sectors or sub-sectors and where significant reserves are held as cash, the charity faces the risk that such funds lose value in real terms, due to low interest rates and currency exchange rates. 

Having assessed the major risks to which the charity is exposed, in particular to its finances, the Trustees believe that by monitoring reserve levels, by ensuring that controls exist over the key financial systems and by examining the operational and business risks faced by the charity, effective systems are in place to mitigate those risks. The charity maintains an up-to-date risk register in order to identify and establish effective systems to mitigate those risks. 

- compliance (law and regulation). 

Governance risks include those the charity might suffer from lack of direction, skills and training of the Trustees and good use of its funds. 

The 2022/23 fiscal year demonstrated the continued success of the charity in its mission. 

Operational risks include those inherent in the charity’s activities including supporting unsuitable appeals from charities, continuity of staff, disaster recovery, etc. 

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In addition to the identified major forms of financial risk, the charity’s risk register is a dynamic document and process that will change over time as different risks are identified and other risks are downgraded or removed. The risks at any one time are graded depending on their perceived likelihood and impact. Assessments are also made as to whether the risks are increasing, decreasing or remaining stable and the action plans, responsibilities and timeframes for their implementation are also reviewed regularly by Trustees during the year. There are generic risks of running any charitable or business undertaking. The most significant risk identified for NPT Transatlantic relates to: 

- disaster recovery and planning, including cyber breaches. 

Disaster recovery and planning refers to the significant impact that a major unpredictable disaster could have, such as failures in IT systems or physical damage to property and equipment by way of fire, flood or other natural forces. These risks cannot be predicted, but can be prepared for, and NPT Transatlantic does so through the creation and review of IT and disaster recovery plans; implementing digital and physical security measures; and obtaining appropriate insurance coverage. 

## **Auditor** 

RSM UK Audit LLP have indicated their willingness to be reappointed for another term. 

## **Disclosures of Information to Auditor** 

Each of the Trustees confirm that: 

- in so far as the Trustee is aware; all relevant audit information has been disclosed to the charitable company’s auditor; and 

- the Trustee has taken all steps that he/she ought to have taken to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information. 

The Trustees’ Report prepared under the Charities Act 2011, which also contains all information required in a Directors’ Report by the Companies Act 2006, and the incorporated Strategic Report prepared under the Companies Act 2006, were approved by the Board of Trustees and signed on behalf of the Trustees by: Eileen R. Heisman 

## **Eileen R. Heisman Chair** 

Date: 8 November 2023 

For more information on DAFs and dual-qualified charities see our website at www.nptuk.org. 

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## STATEMENT OF TRUSTEES’ RESPONSIBILITIES 

The Trustees (who are also the directors of NPT Transatlantic Limited for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgments and estimates that are reasonable and prudent; 

- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The Trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time, the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

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## INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NPT TRANSATLANTIC LIMITED 

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## **Opinion** 

We have audited the financial statements of NPT Transatlantic Limited (the ‘charitable company’) for the year ended 30 June 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company’s affairs as at 30 June 2023 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 United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

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## **Basis for Opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

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

We have nothing to report in this regard. 

## **Conclusions Relating to Going Concern** 

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

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

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

- the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Directors’ Report and the Strategic Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements. 

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. 

## **Other Information** 

The other information comprises the information included in the Trustees’ Report other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report. 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 

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

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

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

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

## **Responsibilities of Trustees** 

As explained more fully in the Statement of Trustees’ responsibilities set out on page 21, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

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

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

## **The extent to which the audit was considered capable of detecting irregularities, including fraud** 

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. 

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. 

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However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: 

- obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the charitable company operates in and how the charitable company is complying with the legal and regulatory frameworks 

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; 

- discussed matters about non-compliance with laws and regulations and how fraud might occur, including assessment of how and where the financial statements may be susceptible to fraud. 

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011 and the charitable company’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents. 

The audit engagement team identified the risks of management override of controls and income recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Use of Our Report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 


## **Nicholas Sladden (Senior Statutory Auditor)** 

For and on behalf of RSM UK Audit LLP, Statutory Auditor Chartered Accountants 25 Farringdon Street London EC4A 4AB 

> Date: 07/12/23 

Annual Report & Accounts  |  24 



4

## STATEMENT OF FINANCIAL ACTIVITIES _Year to 30 June 2023_ 

|||2023|2023|2023|||
|---|---|---|---|---|---|---|
|||Unrestricted|Unrestricted|Restricted|**2023**|2022|
|||Operating|DAF2|DDF3|**Total**|Total|
|Notes||Funds1(£)|Funds (£)|Funds (£)|**Funds (£)**|Funds (£)|
|**Income from:**|||||||
|Donations|||||||
|Voluntary donations|1|267,000|–|–|**267,000**|698,600|
|Donations to|||||||
|giving funds|2|–|45,558,849|38,594,809|**84,153,658**|63,354,204|
|Investments|3|938,515|1,371,982|–|**2,310,497**|512,519|
|Other income||808,419|8,005|–|**816,424**|685,657|
|**TOTAL INCOME**||2,013,934|46,938,836|38,594,809|**87,547,579**|65,250,980|
|**Expenditure on:**|||||||
|Raising funds|4|837,174|148,065|35|**985,274**|896,580|
|Charitable activities|4|735,462|27,640,576|41,425,642|**69,801,680**|32,160,528|
|Realised and|||||||
|unrealised exchange|||||||
|losses/(gains)||162,922|3,435,219|172,090|**3,770,231**|(7,720,903)|
|**TOTAL EXPENDITURE**||1,735,558|31,223,860|41,597,767|**74,557,185**|25,336,205|
|Realised and|||||||
|unrealised (losses)/gains|||||||
|oninvestment asset|12|–|8,343,300|(397)|**8,342,903**|(9,414,601)|
|**NET INCOME AND NET**|||||||
|**MOVEMENT IN FUNDS**|5|278,376|24,058,276|(3,003,355)|**21,333,297**|30,500,174|
|**Reconciliation of funds:**|||||||
|Total funds|||||||
|brought forward||393,635|103,419,845|3,162,769|**106,976,249**|76,476,075|
|Total funds|||||||
|carried forward||672,011|127,478,121|159,414|**128,309,546**|106,976,249|



_1 Including £1 share capital_ 

- _2 Donor-advised funds_ 

_3 Restricted donor-designated funds_ 

Annual Report & Accounts  |  26 



## BALANCE SHEET 

## _30 June 2023_ 

## **Company Number: 08612103** 

|||2023|2023|2023|||
|---|---|---|---|---|---|---|
|||Unrestricted|Unrestricted|Restricted|**2023**|2022|
|||Operating|DAF|DDF|**Total**|Total|
||Notes|Funds1(£)|Funds2(£)|Funds3(£)|**Funds (£)**|Funds (£)|
|**Fixed assets**|||||||
|Tangible assets|11|10,466|–|–|**10,466**|17,363|
|Investments|12|–|101,810,810|–|**101,810,810**|83,340,210|
|||10,466|101,810,810|–|**101,821,276**|83,357,573|
|**Current assets**|||||||
|Debtors|13|40,646|1,561,874|–|**1,602,520**|415,534|
|Cash at bank and|||||||
|in hand||708,296|24,154,617|159,414|**25,022,327**|23,343,952|
|||748,942|25,716,491|159,414|**26,624,847**|23,759,486|
|**Current liabilities**|||||||
|Creditors: amounts|||||||
|falling due within|||||||
|oneyear|14|(87,397)|(49,180)|–|**(136,577)**|(140,810)|
|**NET CURRENT ASSETS**||661,545|25,667,311|159,414|**26,488,270**|23,618,676|
|**TOTAL NET ASSETS**||672,011|127,478,121|159,414|**128,309,546**|106,976,249|
|**Represented by the**|||||||
|**funds of the charity:**|||||||
|Share capital||1|–|–|**1**|1|
|Unrestricted|||||||
|operating funds||672,010|–|–|**672,010**|393,634|
|Unrestricted|||||||
|DAF funds||–|127,478,121|–|**127,478,121**|103,419,845|
|Restricted DAF funds||–|–|159,414|**159,414**|3,162,769|
|**TOTAL FUNDS**||672,011|127,478,121|159,414|**128,309,546**|106,976,249|



These accounts were authorised and approved by the Trustees and signed on their behalf by: Eileen R. Heisman 

## **Eileen R. Heisman Trustee** 

## Approved on: 8 November 2023 

27  |  Annual Report & Accounts 



## STATEMENT OF CASH FLOWS 

## _30 June 2023_ 

|||**2023**|2022|
|---|---|---|---|
||Notes|**(£)**|(£)|
|**Cash fows from operating activities:**||||
|Net cash provided by operating activites|A|**9,498,164**|39,795,041|
|**Cash fows from investing activities:**||||
|Purchase of tangible fxed assets||**(2,589)**|(16,405)|
|Dividends and interest from investments||**2,310,497**|512,519|
|Proceeds from sale of investments||**125,787,876**|70,809,408|
|Purchase of investments||**(139,522,882)**|(97,733,677)|
|**NET CASH USED BY INVESTING ACTIVITIES**||**(11,427,098)**|(26,428,155)|
|**Change in cash and cash equivalents**||||
|**in the period**||**(1,928,934)**|13,366,886|
|Cash and cash equivalents at the beginning of the||||
|reporting period||**23,343,952**|17,748,147|
|Change in cash and cash equivalents due to||||
|exchange rate movements||**3,607,309**|(7,771,081)|
|**Cash and cash equivalents at the end of**||||
|**the reporting period**|B|**25,022,327**|23,343,952|



Annual Report & Accounts  |  28 



## **A. Reconciliation of net income to net cash used in operating activities** 

||**2023**|2022|
|---|---|---|
||**(£)**|(£)|
|**Net income per the statement of fnancial activities**|**21,333,297**|30,500,174|
|**Adjustments for:**|||
|Realised and unrealised (gains)/losses on investments|**(8,342,903)**|9,414,601|
|Depreciation charges|**9,486**|9,508|
|Dividends and interest from investments|**(2,310,497)**|(512,519)|
|Decrease/(increase) in debtors|**(1,186,986)**|358,105|
|Increase/(decrease)in creditors|**(4,233)**|25,172|
|**NET CASH PROVIDED BY OPERATING ACTIVITIES**|**9,498,164**|39,795,041|



## **B. Analysis of cash and cash equivalents** 

|Cash at bank and in hand|**25,022,327**|23,343,952|
|---|---|---|
|**TOTAL CASH AND CASH EQUIVALENTS**|**25,022,327**|23,343,952|



29  |  Annual Report & Accounts 



## ACCOUNTING POLICIES 

Annual Report & Accounts  |  32 




The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are described below. 

## **Basis of Preparation** 

The accounts have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes. 

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011. 

The charity constitutes a public benefit entity as defined by FRS 102. 

The accounts are presented in sterling and are rounded to the nearest pound. 

31  |  Annual Report & Accounts 



## **Status** 

The charity is a private company limited by shares and incorporated in England and Wales. The registered office and principal activity is disclosed in the Trustees’ Report and Strategic Report. 

## **Critical accounting estimates and areas of judgement** 

The most significant areas of judgement and key assumptions that affect items in the accounts are in respect to the allocation of support costs between activities and the value of unlisted investments as explained more fully in the policies set out on pages 35-36. Unlisted investments are recorded at estimated fair value in the absence of readily determined fair values. Management’s estimates are established on the basis of valuations provided by the associated entities and are believed to be a reliable best estimate of fair value. With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the charity are the level of fundraising achievable, the investment return and the performance of the investment market generally. 

## **Going Concern** 

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. 

The Trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. This is because the National Philanthropic Trust, the charity’s sole shareholder, has donated to NPT 

Transatlantic in support of operating costs and has committed to provide financial support to the extent necessary to enable the charity to continue to pay its liabilities as they become due for a period of at least 12 months from the date of approval of these financial statements. Additionally, the strategy document plans for growth and this is to be closely monitored. 

## **Income** 

Income in the form of contributions is recognised in the period in which the charity is entitled to receipt and the amount can be measured reliably and it is probable that the funds will be received. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or when the donor or funder has specified that the income is to be expended in a future accounting period. 

Dividends earned on fixed asset investments are recognised once the dividend has been declared and notification has been received of the dividend due. Interest on cash deposits is recognised as it is earned. 

## **Expenditure Recognition** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. 

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered. All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses are allocated or apportioned to the applicable expenditure headings. 

The Trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. 

Annual Report & Accounts  |  32 



Resources expended comprise the following: 

- Expenditure on raising funds comprise the costs associated with generating donations, fundraising costs and the fees paid to investment managers in connection with the management of the charity’s investments. It includes costs that can be allocated directly to such activities and those indirect costs necessary to support them. 

- Expenditure on charitable activities comprise grants and costs of raising awareness of the charity’s work and its methods. Grants are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions. Grants approved but not paid at the end of the fiscal year are expensed and disclosed as payable. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued for but are noted as financial commitments in the notes to the accounts. 

It includes both costs that can be allocated directly to such activities and those indirect costs necessary to support them. 

- Support costs are those costs which enable fund generating and charitable activities to be carried out. These costs include personnel, finance, provision of office services and equipment and a suitable working environment. Support costs are allocated on the basis of time spent on these activities. 

## **Fixed Assets** 

Fixed assets costing over £1,000 are capitalised and recorded at cost, or in cases where fixed assets have been donated to the charity, at the valuation at the time of acquisition. 

## **Depreciation** 

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: 

Computer Equipment: 33.33% p.a. on a straight line basis 

Furniture and Fixtures: 20.00% p.a. on a straight-line basis 

## **Cash at bank and in hand** 

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months form the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment. 

## **Financial Instruments** 

The charitable company applies the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues” of FRS102 to all of its financial instruments. Financial assets and financial liabilities are recognised when the charitable company becomes a party to the contractual provisions of the instrument and are offset only when the charitable company currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously 

## _**Investments**_ 

Listed investments (with the exception of FX products and derivatives, which form an immaterial part of investments held and are therefore treated the same) are initially recognised at transaction value and subsequently measured at fair value as at the balance sheet date using the closing quoted market price. 

Money market time deposits are fixed term cash deposits designed to provide a higher rate of return, but cannot be freely accessed before maturity. They are valued based on the amount of cash invested. 

33  |  Annual Report & Accounts 



Realised gains (or losses) in investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial period. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise. 

## _**Financial Liabilities**_ 

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 

## **Fund Accounting** 

Unlisted investments are valued at the best estimate of fair value as follows: 

Private equity investments are held through funds managed by private equity groups. As there is no identifiable market price for private equity funds, these funds are included at the most recent valuations from the private equity groups where: 

- i.  the private equity group provides a fair value that complies with the International Private Equity and Venture Capital Valuation Guidelines (IPEV), December 2015 – 2022 edition; or 

- ii.  the private equity group provides valuations that comply with FRS 102 or UK GAAP. 

## _**Financial Assets**_ 

Basic financial assets, including trade debtors and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. 

Where the arrangement with a debtor constitutes a financing transaction, the debtor is initially measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument and subsequently measured at amortised cost. 

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. 

Judgement has been applied in whether certain funds held by NPT Transatlantic should be classified as restricted funds or unrestricted funds. 

Trustees consider that funds held by NPT Transatlantic in donor-advised funds pending recommendation for onward distribution to third party charities are classified as designated within unrestricted funds. However, the Trustees note the following: 

- there is an expectation from the donor that these funds will be used in line with their recommendations. 

- in the ordinary course of business, there is no expectation that these funds will be used for any purposes other than onward distribution and associated administrative costs. 

In relation to restricted funds, the Trustees cannot use such funds at their discretion, but must use them for the specific purposes which were the subject of restrictions imposed by the donors at the time of contribution. 

Annual Report & Accounts  |  34 



## **Foreign Exchange** 

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the average rates of exchange during the year. Exchange differences are taken into account in arriving at the operating results. 

## **Taxation** 

NPT Transatlantic is a registered charity and as such its income and gains falling within Sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives. Accordingly, no provision for current or deferred taxation is considered necessary. 

## **Value Added Tax** 

Value Added Tax is not recoverable by the charity and as such is included in the relevant costs in the statement of financial activities. 

## **Pension Costs** 

Contributions by the charity in respect of its employees’ personal pension plans and workplace pension schemes are charged to the statement of financial activities in the year in which they are earned by those employees. 

37  |  Annual Report & Accounts 



## NOTES TO THE FINANCIAL STATEMENTS _30 June 2023_ 

## **1. Voluntary donations** 

||**2023**|2022|
|---|---|---|
||**(£)**|(£)|
|Donations from NPT(US)|**267,000**|698,600|



Voluntary income was wholly unrestricted in both years. 

## **2. Donations to giving funds** 

|Monies received for disbursement to charities|||
|---|---|---|
|nominated by the donors (Restricted funds)|**38,594,809**|16,678,143|
|Monies received as contributions to Donor Advised|||
|Funds(DAFs) (Unrestricted funds)|**45,558,849**|46,676,061|
||**84,153,658**|63,354,204|
|**3. Investment income**|||
|Listed and unlisted investments|**1,308,362**|472,499|
|Interest on cash held as part of investment portfolio|**1,002,135**|40,020|
||**2,310,497**|512,519|



Investment income was wholly unrestricted in both years. 

Annual Report & Accounts  |  36 



## **4. Total expenditure** 

||||**2023**|2022|
|---|---|---|---|---|
||Raising|Charitable|**Total**|Total|
||Funds (£)|Activities (£)|**Funds (£)**|Funds (£)|
|**Direct costs**|||||
|Grants (a)|–|68,251,336|**68,251,336**|30,870,705|
|**Allocated support costs (b)**|||||
|Personnel and consultants|562,143|562,143|**1,124,286**|911,598|
|Other|378,129|981,458|**1,359,587**|1,199,446|
|Depreciation|4,743|4,743|**9,486**|9,508|
|Governance costs(d)|40,259|2,000|**42,259**|65,851|
|**TOTAL**|985,274|69,801,680|**70,786,954**|33,057,108|
|**(a) Grants**|||||
|Grants payable at 1 July|–|–|**–**|(1,014)|
|Grants paid duringthe period|–|68,251,336|**68,251,336**|30,871,719|
||–|68,251,336|**68,251,336**|30,870,705|



Grants for the year have been made in support of the following charitable activities: 

||**2023**|2022|
|---|---|---|
||**(£)**|(£)|
|Social welfare|**28,208,343**|4,509,939|
|General charitable organisations|**12,678,967**|6,663,845|
|Education|**11,595,854**|12,225,895|
|Nature and the environment|**6,461,058**|2,789,368|
|Medicine and health|**6,098,683**|2,598,293|
|The arts|**1,625,786**|728,151|
|Religion|**1,559,946**|577,443|
|International|**22,699**|777,771|
||**68,251,336**|30,870,705|



The following institutions received total grants which are considered to be material in the context of NPT Transatlantic’s expenditure for the year ended 30 June 2023. Grants are not made to individuals. 

37  |  Annual Report & Accounts 



||**2023**|
|---|---|
||**(£)**|
|The Roald Dahl Museum and Story Centre|**10,500,000**|
|Roald Dahl's Marvellous Children's Charity|**10,500,000**|
|Institut Europeen de Cooperation et de Developpement|**6,463,694**|
|Economics Education and Research Consortium, Inc.|**5,250,000**|
|NamibRand Conservation Trust|**3,369,471**|
|World Economic Forum|**3,083,452**|
|Brown University|**2,920,518**|
|Arastradero Research Institute|**1,763,878**|
|Noora Health|**1,608,042**|
|Impetus - The Private Equity Foundation|**1,520,451**|
|UniversityCollege London|**1,506,157**|
||**48,485,663**|



The following institutions received total grants which are considered to be material in the context of NPT Transatlantic’s expenditure for the year ended 30 June 2022. Grants are not made to individuals. 

||**2022**|
|---|---|
||**(£)**|
|UBS Optimus Foundation UK|**3,649,752**|
|President and Fellows of Harvard College|**3,567,407**|
|University of California San Francisco Foundation|**1,643,487**|
|Institut Européen de Coopération et de Développement|**1,281,270**|
|NamibRand Conservation Trust|**1,031,124**|
||**11,173,040**|



## **(b) Allocated support costs** 

Support costs are allocated based on time spent on activities. 

Annual Report & Accounts  |  38 



## **(c) Comparative information** 

Comparative information for total expenditure, analysed by fund, is as follows: 

||Unrestricted|Unrestricted|Restricted|2022|
|---|---|---|---|---|
||Operating|DAF|DDF|Total|
||Funds (£)|Funds (£)|Funds (£)|Funds (£)|
|Raising funds|735,135|157,975|3,470|896,580|
|Charitable activities|601,398|17,482,271|14,076,859|32,160,528|
||1,336,533|17,640,246|14,080,329|33,057,108|



## **(d) Governance costs** 

Governance costs comprised: 

||**2023**|2022|
|---|---|---|
||**(£)**|(£)|
|Trustees’ grants and expenses|**3,252**|2,962|
|Legal expenses|**5,155**|35,829|
|Accountancyand audit fees|**33,852**|27,060|
||**42,259**|65,851|



## **5. Net movement in funds** 

This is stated after charging: 

||**2023**|2022|
|---|---|---|
||**(£)**|(£)|
|Auditor’s remuneration (inclusive of VAT)|**24,480**|21,600|
|Accountancy fees|**9,372**|5,460|
|Depreciation|**9,486**|9,508|



## **6. Staff costs** 

||Unrestricted|Unrestricted|Restricted|**2023**|2022|
|---|---|---|---|---|---|
||Operating|DAF|DDF|**Total**|Total|
||Funds (£)|Funds (£)|Funds (£)|**Funds (£)**|Funds (£)|
|Wages and salaries|904,889|–|–|**904,889**|707,355|
|Social security costs|119,320|–|–|**119,320**|87,602|
|Pension costs|29,125|–|–|**29,125**|32,994|
|Medical insurance|26,095|–|–|**26,095**|24,152|
||1,079,429|–|–|**1,079,429**|852,103|



39  |  Annual Report & Accounts 



The average number of employees during the year was 7 (2021/22: 6). 

The number of higher paid employees was: 

||**2023**|2022|
|---|---|---|
||**No.**|No.|
|£70,001 - £80,000|**2**|1|
|£100,001 - £110,000|**–**|2|
|£110,001- £120,000|**1**|–|
|£130,001- £140,000|**1**|–|
|£360,001-£370,000|**–**|1|
|£400,001-£410,000|**1**|–|
||**5**|4|



## **7. Key management personnel** 

The key management personnel during the year were the Trustees and the Chief Executive Officer. The total cost of employment of the key management personnel (including employer’s national insurance and pension contributions) totalled £464,287 (2021/22 - £406,202). 

## **8. Pension scheme** 

NPT Transatlantic operates a defined contribution pension scheme for employees. The amounts charged to the statement of financial activities as an expense for the year in respect of contributions to this scheme totalled £29,125 (2021/22: £32,994). At the balance sheet date contributions of £2,613 (2021/22: £4,345) were payable. 

## **9. Trustees’ remuneration and expenses** 

No Trustee received any remuneration from the charity for their services (2021/22: £nil). Additionally, no Trustees were reimbursed for travel expenses during the year (2021/22: £nil). 

## **10. Taxation** 

NPT Transatlantic is a registered charity and therefore is not liable to corporation tax on income derived from its charitable activities, or on income and gains arising from investment, as it falls within the various exemptions available to registered charities. 

Annual Report & Accounts  |  40 



**2023 (£)** 

## **11. Tangible fixed assets - equipment** 

|**Cost**<br>At 1 July 2022<br>Additions<br>Carried forward at 30 June 2023<br>**Depreciation**<br>At 1 July 2022<br>Charge for the year<br>Carried forward at 30 June 2023<br>**NET BOOK VALUE AT 30 JUNE 2023**<br>Net book value at 30 June 2022|**42,436**<br>**2,589**|
|---|---|
||**45,025**|
||**25,073**<br>**9,486**|
||**34,559**|
||**10,466**|
||**17,363**|



## **12. Investments** 

||**2023**|2022|
|---|---|---|
||**(£)**|(£)|
|**Market value at 1 July**|**83,340,210**|58,059,461|
|Additions at cost|**139,841,432**|97,733,677|
|Disposals at market value|**(125,787,876)**|(70,809,408)|
|Unrealised exchange (losses)/gains|**(3,926,256)**|7,771,081|
|Net realised and unrealised|||
|gains/(losses)|**8,343,300**|(9,414,601)|
|**MARKET VALUE AT 30 JUNE**|**101,810,810**|83,340,210|



Investments at market value comprised: 

|Accounts and investments on call<br>Money market time deposits<br>FX products and derivatives<br>Bonds<br>Listed investments<br>Multi asset funds<br>Unlisted investments|UK<br>(£)<br>Overseas<br>(£)<br>**2023**<br>**Total (£)**<br>2022<br>Total (£)<br>863,134<br>436,480<br>**1,299,614**<br>9,861,251<br>21,511,802<br>182,362<br>**21,694,164**<br>10,863,151<br>814<br>–<br>**814**<br>12,018<br>12,532,749<br>1,820,111<br>**14,352,860**<br>12,020,621<br>56,296,497<br>6,678,163<br>**62,974,660**<br>49,530,805<br>–<br>380,001<br>**380,001**<br>477,426<br>1,108,697<br>–<br>**1,108,697**<br>574,938|
|---|---|
||**101,810,810**<br>83,340,210|
|**HISTORICAL COST OF INVESTMENTS**|**101,368,826**<br>91,023,078|



41  |  Annual Report & Accounts 



## **13. Debtors** 

||Unrestricted|Unrestricted|Restricted|**2023**|2022|
|---|---|---|---|---|---|
||Operating|DAF|DDF|**Total**|Total|
||Funds (£)|Funds (£)|Funds (£)|**Funds (£)**|Funds (£)|
|Debtors and prepaid||||||
|expenses|40,646|1,561,724|–|**1,602,370**|95,094|
|Other debtors|–|150|–|**150**|320,440|
||40,646|1,561,874|–|**1,602,520**|415,534|
|**TOTAL 2022**|43,696|51,555|320,283|**415,534**||



## **14. Creditors: amounts falling due within one year** 

||Unrestricted|Unrestricted|Restricted|**2023**|2022|
|---|---|---|---|---|---|
||Operating|DAF|DDF|**Total**|Total|
||Funds (£)|Funds (£)|Funds (£)|**Funds (£)**|Funds (£)|
|Grants payable|–|–|–|**–**|–|
|Purchase ledger||||||
|balances|14,211|–|–|**14,211**|16,127|
|Audit fee and||||||
|accrued expenses|67,682|–|–|**67,682**|65,573|
|Deferred income|–|49,180|–|**49,180**|51,398|
|Due to NPT-US|5,504|–|–|**5,504**|7,712|
||87,397|49,180|–|**136,577**|140,810|
|**TOTAL 2022**|89,412|51,398|–|**140,810**||



## **Movements in deferred income:** 

||**2023**|2022|
|---|---|---|
||**Total**|Total|
||**Funds (£)**|Funds (£)|
|Deferred income at 1 July|**51,398**|45,270|
|Income recognized in the year|**(51,398)**|(45,270)|
|Income deferred in the year|**49,180**|51,398|
|Deferred income at 30 June|**49,180**|51,398|



Deferred income relates to monthly administrative fees paid in advance. 

Annual Report & Accounts  |  42 



## **15. Financial instruments** 

||**2023**|2022|
|---|---|---|
||**(£)**|(£)|
|**Carrying amount of fnancial assets**|||
|Instruments measured at fair value through|||
|surplus/defcit|**101,810,810**|83,340,210|



## **16. Movement in funds** 

|||||Realised &||
|---|---|---|---|---|---|
||Balance|||Unrealised|**Balance as**|
||as at 1 July|Income|Expenditure|gains/(losses)|**at 30 June**|
||2022 (£)|(£)|(£)|(£)|**2023 (£)**|
|Unrestricted||||||
|operating funds|**393,635**|2,013,934|(1,735,558)|–|**672,011**|
|Unrestricted||||||
|DAF funds|**103,419,845**|46,938,836|(31,223,860)|8,343,300|**127,478,121**|
|Restricted DDF funds|**3,162,769**|38,594,809|(41,597,767)|(397)|**159,414**|
||**106,976,249**|87,547,579|(74,557,185)|8,342,903|**128,309,546**|



|||||Realised &||
|---|---|---|---|---|---|
||Balance|||Unrealised|**Balance as**|
||as at 1 July|Income|Expenditure|gains/(losses)|**at 30 June**|
||2021 (£)|(£)|(£)|(£)|**2022 (£)**|
|Unrestricted||||||
|operating funds|**396,089**|1,384,257|(1,386,711)|–|**393,635**|
|Unrestricted||||||
|DAF funds|**75,545,379**|47,188,580|(9,987,350)|(9,326,764)|**103,419,845**|
|Restricted DDF funds|**534,607**|16,678,143|(13,962,144)|(87,837)|**3,162,769**|
||**76,476,075**|65,250,980|(25,336,205)|(9,414,601)|**106,976,249**|



Unrestricted operating funds can be applied towards fulfilling NPT Transatlantic’s charitable purposes. 

Unrestricted DAF funds represent funds available for the support of charitable activities. 

Restricted DDF funds represent donations made for disbursements to charities indicated at point of gift. 

43  |  Annual Report & Accounts 



## **17. Analysis of net assets between funds** 

||Unrestricted|Unrestricted|Restricted|**2023**|
|---|---|---|---|---|
||Operating|DAF Funds|DDF Funds|**Total**|
||Funds (£)|(£)|(£)|**Funds (£)**|
|Fixed assets|10,466|101,810,810|–|**101,821,276**|
|Current assets|748,942|25,716,491|159,414|**26,624,847**|
|Current liabilities|(87,397)|(49,180)|–|**(136,577)**|
||672,011|127,478,121|159,414|**128,309,546**|



||Unrestricted|Unrestricted|Restricted|**2022**|
|---|---|---|---|---|
||Operating|DAF Funds|DDF Funds|**Total**|
||Funds (£)|(£)|(£)|**Funds (£)**|
|Fixed assets|17,363|83,200,408|139,802|**83,357,573**|
|Current assets|465,684|20,270,835|3,022,967|**23,759,486**|
|Current liabilities|(89,412)|(51,398)|–|**(140,810)**|
||393,635|103,419,845|3,162,769|**106,976,249**|



## **18. Ultimate parent undertaking** 

The immediate and ultimate parent undertaking is National Philanthropic Trust, a charitable 501(c) (3) organisation incorporated in the US This organisation holds the only share in issue in NPT Transatlantic. Its place of business is 165 Township Line Road, Suite 1200, Jenkintown, PA 19046. Its principal activity is to provide philanthropic expertise to donors, foundations and financial institutions enabling them to realise their philanthropic aspirations. 

## **19. Related party transactions** 

During the year ended 30 June 2023, National Philanthropic Trust donated £1,630,666 (2021/22 - £1,128,150) to NPT Transatlantic of which £267,000 (2021/22 - £698,600) was made as a voluntary donation. Purchases of £88,735 (2021/22 - £57,218) were made from National Philanthropic Trust in respect of operating expenses. At 30 June 2023 £5,503 (2021/22 - £7,712) was owed to National Philanthropic Trust. 

During the year, one Trustee (2021/22 - one) donated £3,959 (2021/22 - £3,759) to NPT Transatlantic for purposes of disbursement to certain charities indicated at point of gift. 

Annual Report & Accounts  |  44 




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