Company registration number: 08437335 Charity registration number: 1153865 

## The Guardian Foundation 

Annual Report and Financial Statements 

for the year ended 31 March 2021 




## **The Guardian Foundation** 

## **Contents** 

|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 11|
|Statement of Trustees' Responsibilities|12|
|Independent Auditor's Report|13 to 17|
|Statement of Financial Activities|18|
|Balance Sheet|19|
|Statement of Cash Flows|20|
|Notes to the Financial Statements|21 to 34|





## **The Guardian Foundation** 

**Reference and Administrative Details Trustees** Elizabeth Forgan DBE (Chair) Geraldine Proudler Jonathan Scott Melody Patry Gary Younge Nina Blackwell **Senior Management Team** Kelly Walls, Executive Director **Principal Office** PO Box 68164 Kings Place 90 York Way London N1P 2AP **Company Registration Number** 08437335 **Charity Registration Number** 1153865 **Solicitors** Bates Wells & Braithwaite London LLP 10 Queen Street Place London EC4R 1BE **Bankers** The Royal Bank of Scotland plc 280 Bishopsgate London EC2M 4RB **Independent auditor** BDO LLP Statutory Auditors 55 Baker Street London W1U 7EU 

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## **The Guardian Foundation** 

## **Trustees' Report** 

The trustees, who are directors for the purposes of company law, present the annual report together with the audited financial statements and auditors' report of the charitable company for the year ended 31 March 2021. 

This report has been prepared in accordance with the special provisions of section 415A of the Companies Act 2006 relating to small companies. The trustees have taken the exemption under this regime not to disclose the strategic report. 

The Guardian Foundation is registered with the Charity Commission under the chanrity number 1153865 and with Companies House under the company number 08437335. 

The principal office is PO Box 68164, Kings Place, 90 York Way, London N1 2AP. 

## **Trustees** 

Elizabeth Forgan DBE (Chair) Geraldine Proudler Jonathan Scott Melody Patry Gary Younge Nina Blackwell (appointed 25 May 2020) 

## **Objectives, strategies and activities** 

## _**Objects and aims**_ 

The objects of the charity, as set out in its articles of association, are for public benefit, the advancement of charitable purpose in accordance with the laws of England and Wales. 

Currently, the charity carries out the following strands of activity in pursuit of its charitable objects, focusing on the charitable advancement of education, human rights and the right to information. All activities of the charity in furtherance of its objects are carried out for the public benefit. 

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## **The Guardian Foundation** 

## **Trustees' Report** 

## _**Objectives, strategies and activities**_ 

## _News literacy education for children and young people_ 

The charity runs two programmes providing news and media literacy education for children aged 7+. 

NewsWise is a programme funded by a range of external sources and run by the charity in partnership with the National Literacy Trust and the PSHE Association. It is a free outreach programme aimed at 7-11 year old children in the UK from the most disadvantaged areas. NewsWise teaches children news literacy skills: how to navigate the news & spot fake news, bias, opinion, speculation etc. It helps children to create their own news reports, in their own words and thereby enabling children to find and use their voice. NewsWise reaches children in a vital window when they are about to have their own devices for the time and can develop critical digital thinking before habits become ingrained. The programme creates free lesson plans and resources for schools which complement the existing curriculum, runs teacher training sessions in schools and organises family festivals in towns across the UK, enabling parents to also participate. The latest evaluation report for academic year 19/20 showed that the programme reached 3,715 pupils in 75 primary schools. In addition, 894 teachers received face-to-face training, and a further 240 accessed webinars, helping schools to support and embed news literacy across the curriculum. NewsWise family events reached 113 children and 85 adults. 31,059 free resources were downloaded, including curriculum based lesson plans, classroom materials and family activity packs. 

The Education Centre offers a range of educational programmes for students and adults. The interactive centre can accommodate up to 30 students every day. State of the art technology, including computers and specially designed software, as well as digital cameras and interactive whiteboards, help students to engage with and learn from the news and archive resources of Guardian News & Media Ltd as well as the wider industry. This operation benefits around 6,000 children in a typical year, principally catering amongst school groups. For example, the centre offers a variety of free whole-day workshops where students create their own newspaper front page using the latest technology, as well as workshops in podcasting and coding for secondary schools. 

The centre also conducts a range of activities for teachers, further and higher education groups and families that support professional development and provide work related learning, for example, organising a range of conferences for teachers with speakers including journalists, educational advisers and teachers, and providing continuing professional development training to practising teachers. This takes the total number of people benefiting from the Education Centre in a typical year to over 8,000. 

In 2020, both programmes were impacted by the coronavirus pandemic. With school closures across the UK, in-person workshops were postponed and the Education Centre was temporarily closed. However both programmes adapted and innovated around digital delivery and were able to continue to engage smaller numbers of children and teachers via virtual workshops, training and webinars, as well as online resources that could be used by parents and teachers when home schooling. 

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## **The Guardian Foundation** 

## **Trustees' Report** 

## _Archive_ 

The archive preserves the histories and values of the Guardian and Observer newspapers and the role of journalism in society, by collecting, cataloguing and making accessible to the public material that provides an accurate and comprehensive history of the newspapers. 

The archive is a valuable resource for researchers and is open to the public by appointment. It holds official records of the Guardian and the Observer and also seeks to acquire material from people who have been associated with the papers. As well as corporate records the archive therefore holds correspondence, diaries, notebooks, original cartoons, photographs and oral histories created by people who have worked for either paper. 

In addition to its core work, the Archive team engage in various special innovative projects, some with external funding to allow the public to engage with the history of the Guardian and to advance diversity in the Archive sector. This year it has included projects supported by The National Archives and the National Lottery Heritage Fund. 

## _The Scott Trust Bursary scheme_ 

The charity runs the Scott Trust bursary scheme. The primary aim of these bursary awards is to assist students who face financial difficulty in attaining the qualifications needed to pursue a career in journalism, and who come from backgrounds that are underrepresented in the media. In particular those from a lower socio-economic background, BAME, LGBTQ+ and those with a disability. 

The charity currently offers three bursaries each year to assist aspiring journalists to study for a postgraduate qualification in newspaper, interactive or digital journalism. In FY 2020/21 bursaries were offered at City University, London (MA Interactive Journalism), Goldsmiths College, University of London (MA Journalism) and University of Sheffield (MA Journalism). 

The benefits and effectiveness of the bursary programme includes a mentoring scheme, workshops and work experience at Guardian News & Media. There is also an opportunity for bursary alumni to continue on to a contract with the Guardian, and although this is beyond the scope of the charity it is encouraging to see how many of the alumni of the scheme continue on to brilliant careers at The Guardian and in the wider industry. It is a testament to the talented individuals and the structure of the scheme which, when combined, has a clear positive impact on diversity in newsrooms. 

## _Hugo Young Award_ 

The Hugo Young Award is an annual competition championing the best political opinion writing among journalism students across the UK. Students are set the challenge to write on a topic they feel is not receiving enough attention, using new ideas, subjects and perspectives. In 2020 we also piloted a ‘Young Hugo’ award for 16-18 year old sixth form students to reach even younger aspiring journalists. 

The competition is an opportunity to celebrate the legacy of Hugo Young, who died in 2003 and was a political columnist for the Guardian for 18 years, by encouraging fresh voices, new perspectives and good writing which, now more than ever, are essential to the future of quality, independent political journalism. 

## _International capacity building_ 

The charity’s overseas programmes are focused on activity supporting independent media and on building the capacity of journalists, particularly focused in Turkey. The previous training, mentoring and capacity building project (the ‘New Media Academy’) in partnership with NewsLabTurkey and funded by the Swedish Consulate in Istanbul has grown and developed into a new 3-year programme. Funded by the Swedish International Development Agency (Sida), it builds on the Foundation’s previous work with NewsLab Turkey, now officially an NGO, Digital Media Research Association (DMRA). 

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## **The Guardian Foundation** 

## **Trustees' Report** 

This new programme is the Incubator for Independent Media and is designed to build capacity of and support high quality independent Turkish journalism and the nurturing of this space to contribute to an enabling environment for freedom of expression and equality. Our objective is to equip our partner organisations and programme participants with the skills and resources to produce sustainable, ethical, professional and diverse public-interest journalism for multimedia platforms. A functioning independent media landscape contributes to better informed citizens who are able to participate meaningfully in democratic processes. 

## _European Press Prize_ 

The charity supports the European Press Prize, which salutes and encourages the highest achievements in European journalism. Each year, awards are made to journalists in four different categories. Each award is 10,000 euros, to be spent wherever possible on a personal project that may, in turn, enrich the practice of journalism. 

## _**Fundraising**_ 

Sections 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The fundraising activities of The Guardian Foundation are carried out only by The Guardian Foundation staff, and are focused on seeking funds from corporations, governmental bodies and organisations. The charity does receive a small number of donations from the general public who wish to support the work and this is done via the Charities Aid Foundation website or occasionally via cheques received directly. In order to secure funds, The Guardian Foundation will approach organisations directly when they believe there is alignment of strategic aims. The Guardian Foundation can also be approached directly by funders seeking to make grants for purposes within the charity's area of expertise. 

The Guardian Foundation has received no complaints regarding its fundraising activities. Given that directly approaching individuals and members of the public does not currently form part of the charity's fundraising operations, there is deemed to be a very low risk to any vulnerable persons. 

## _**Public benefit**_ 

The activities of The Guardian Foundation focus on the object of advancing education, the right to information and human rights. The mission of the charity is to support media under threat, promote diversity in the media and empower children and young people to engage with the news. All activities of the Charity in furtherance of this object will be carried out for the public benefit. 

## In particular: 

• The Guardian News literacy projects provide educational services to a wide variety of school children, teachers and educational professionals in order to support education in critical literacy, journalism and teaching practises. 

• The archive and exhibitions programme preserves records for the public benefit and makes accessible to the public material of historic, artistic and educational value. 

• Bursaries for postgraduate qualifications in print and digital journalism will be provided to the applicants who best satisfy the established criteria, taking account of the desire to encourage graduates from diverse social and/or ethnic backgrounds. 

• The international programmes offer training and capacity building to overseas journalists and provides educational support to applicants and organisations who best satisfy the established criteria. 

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. 

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## **The Guardian Foundation** 

## **Trustees' Report** 

## **Financial review** 

The reserves of the charity constitute both free (unrestricted) and restricted funds. 

Unrestricted reserves are maintained at a level sufficient to ensure financial stability, taking account of the support committed by Guardian Media Group plc. At 31 March 2021, the level of reserves was £171,369 (2020: £151,144). The in-year increase in the unrestricted reserves balance of £20,225 was the result of generating £601,194 income with total expenditure of £580,969. (2020: unrestricted reserves increase of £31,170 from £644,100 income and £612,930 expenditure). 

Restricted funds relate to amounts received from third parties for specified purposes, as detailed in note 16. The level of restricted reserves at 31 March 2021 was £206,076 (2020: £245,186). This is a reduction of £39,109 in the year and is the result of receiving income of £375,530 with total expenditure of £414,639. (2020: restricted reserves increase £196,086 from £860,206 income and £664,120 expenditure). 

## Covid-19 

Since 11th March 2020, the Covid-19 pandemic has had considerable direct impact on the charity both operationally and financially. Specifically, the direct effects have been: 

## Team and organisation: 

• All staff began to work from home from 16 March 2020 and continue to do so until further notice. 

• Fundraising efforts were impacted with many funds on hold or redirected to Covid emergency. This resulted in a reduction in certain programme resources and teams and changes to the ways of working. 

• Considerable cost savings in the charity finances had to be found in order to offset the reduction in income and a revised budget was created in April 2020. 

• Several members of staff were furloughed under the government’s job retention scheme. 

## In person activities paused or cancelled: 

• From 12 March 2020, the Education Centre has been closed to visitors and planned conferences were cancelled, all external visitors to the Archive were cancelled and all NewsWise in-person activity stopped, including no school visits and the cancellation of a family festival event. 

• The annual Hugo Young event was cancelled and instead announced online. 

- The Scott Trust bursary work experience was briefly paused. 

• The final weekend of the 12-week New Media Academy programme due to take place in Turkey was postponed. 

## Adaptations: 

• The news literacy and education teams have very successfully adapted and are delivering online resources, webinars, teacher training and virtual workshops for children and young people. 

• The Archive team continue their work remotely including digital archiving. 

• The 2021 Hugo Young event has been postponed until the latter half of the year. 

- The Scott Trust bursary work experience now takes place online. 

• The New Media Academy final weekend took place at a later date online and our new Incubator for Independent Media programme in Turkey has commenced virtually. 

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## **The Guardian Foundation** 

## **Trustees' Report** 

## _**Policy on reserves**_ 

The optimal amount that the charity aims to maintain in its free (unrestricted) reserves is £145k. This level ensures that the charity has the ability to deliver its core activity for 3 months, to cover the cost of an unexpected drop in income, unforeseen and essential staff cover, or unexpected closure, supported by the principal unrestricted funding received from Guardian Media Group plc. The balance of free (unrestricted) reserves at 31 March 2021 was £171,369 (2020: £151,144). 

Levels of unrestricted reserves are monitored through the following process: A reserves target is budgeted at the beginning of each financial year, then forecast every quarter throughout the year and assessed at the end of the year. 

Anything held in excess of the target figure may be utilised for re-investment into the strategic operations of the charity in line with its mission. 

The reserves can be released and used for the purposes stated below, and any spend must be officially signed off by the board of trustees. 

A. Unforeseen emergency or other unexpected and unavoidable need for funds, eg essential legal costs incurred but not foreseen. 

B. Unforeseen day-to-day operational costs, eg employing temporary staff to cover a long-term sick absence or paternity leave. 

C. A source of income, eg a grant, not being renewed or dramatically reducing in value. Funds might be needed to give the trustees time to take action if income falls below expectations. 

D. The need to fund short-term deficits in a cash budget, eg money may need to be spent before a funding grant is received. 

Reserves related to restricted funds are only used for their specified purpose and managed to ensure the timely delivery of the associated project. 

The reserves policy will be reviewed annually by the board of Trustees and adjusted if deemed necessary. 

## _**Principal funding sources**_ 

The principal source of unrestricted funding is a donation from Guardian Media Group plc. Guardian Media Group plc has undertaken to donate sufficient monies during the 2021/2022 financial year in order to fund, in part, the objectives and activities of the charity for 2021/2022. GMG will consider and review further funding beyond 2021/22 during the annual budget process. Funding from GMG beyond 2021/2022 is unlikely to change significantly. 

Sources of restricted funding are principal to the programmes and projects for which they are intended. For 2020/21 the largest sources of restricted funding were the carried forward Google funds, which were held in reserves, and from Sida. Beyond 2020/21 funding is already secured from Sida. 

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## **The Guardian Foundation** 

## **Trustees' Report** 

## **Plans for future periods** 

## _**Aims and key objectives for future periods**_ 

In furtherance of its charitable objects, the charity will continue to focus on the charitable advancement of education, human rights and the right to information with a mission to support media under threat, promote diversity in the media and empower children and young people to engage with the news. 

The charity's longer term strategic aims continue to be developed and we build on the successful progress of last year’s objectives so that this year we can: continue to grow the capacity building model so it can be used to support more international media under threat; widen participation in our programmes for underrepresented groups to access the news media, including our educational activities, building more relationships, partnerships and collaboration to reach more disadvantaged groups; strengthen our governance and funding model that ensures the charity’s long term resilience and sustainability; continue engaging in innovative Archive projects to widen access both for the public and for people pursuing careers in archiving. 

The Covid-19 pandemic continues to create challenges around achieving those objectives, however our response as a charity over the last year has proved that we are able to adapt and continue to make meaningful impact with the people we work with. The importance of our work at this time has grown and we are well placed to deliver. 

## _**Activities planned to achieve aims**_ 

The charity will continue to pursue the activities outlined above. It is proposed to expand the scope of these activities to include: 

News literacy education programmes – although our virtual and remote workshops have been a success, of course we are keen to get back in classrooms and engage with children and young people face to face. Our NewsWise programme will continue to work with Primary aged children and our Education Centre will focus on Secondary and Higher Education, both increasing the focus on outreach and engaging new groups and communities. Improvements continue to be made to our digital offering to ensure even wider reach and impact. 

Archive – A project funded by the Heritage Lottery Fund was delayed in 2020 due to Covid restrictions, however will now take place virtually in 2021. We will carry out interactive workshops for 11-14 year olds, in collaboration with the Education Centre, to bring the archives and the history of journalism to life for young people who wouldn't have ordinarily had access to it. 

The Scott Trust bursary scheme and Hugo Young Award – Significant efforts have been made on outreach and communications for these programmes to ensure they attract applicants from the hardest to reach areas and underrepresented communities. The charity will continue to seek further opportunities to advance inclusion for under-represented voices in the news industry. 

International Programme – We aim for successful delivery of the first year of our Incubator for Independent Media programme to nurture, support and develop new ideas that will enhance the media landscape in Turkey. This includes an expansion to reach journalists outside of the main metropolis of Istanbul or Ankara. 

The 4 key components of the programme are 1) a research hub 2) digital project delivery 3) an incubator for journalists to support their ideas 4) regional academies. 

European Press Prize - The charity will continue its active facilitation and participation in this prize. 

The charity will seek further funding from philanthropic organisations to support its proposed activities. Where funding is subject to restrictions we will only accept them once all considerations have been reviewed. 

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## **The Guardian Foundation** 

## **Trustees' Report** 

## **Structure, governance and management** 

Any decisions made by the Board of Trustees relating to structure, governance and management are made with consideration of Charity Government Code. 

## _**Nature of governing document**_ 

The Guardian Foundation is a company limited by guarantee and its sole member is The Scott Trust Limited (STL). 

## _**Recruitment and appointment of trustees**_ 

Directors of the charity (trustees) may be appointed and removed by STL. STL is the ultimate owner of Guardian Media Group plc (GMG). On appointment to the charity, trustees receive appropriate briefings on the charity and its activities and receive ongoing training througout their appointment. 

## _**Arrangments for setting remuneration**_ 

The trustees received no remuneration for their services during the year and were not reimbursed for any expenses incurred. 

Remuneration for key management can be found in note 10 staff costs. 

## _**Safeguarding**_ 

The Guardian Foundation believes that safeguarding is everyone’s responsibility, and that the safety and welfare of those with whom we work with is paramount in all circumstances. Our Safeguarding policy sets out The Guardian Foundation’s procedures and commitments to safeguarding children, adults at risk and everyone with whom we come into contact with through our work. Our Safeguarding Policy can be found here: https://theguardianfoundation.org/assets/files/policies-and-procedures/guardian-foundation-safeguarding-policy.pdf 

## **Relationships with related parties** 

## **STL** 

STL is the member of the charity and is also the ultimate holding company of GMG and thus Guardian News & Media Limited (GNM). 

## **GMG** 

GMG is the parent company of Guardian News & Media Limited (GNM), publisher of theguardian.com, one of the world's leading news websites, and the Guardian and Observer newspapers. 

## **GNM** 

GNM is the publisher of theguardian.com, one of the world's leading news websites, and the Guardian and Observer newspapers. 

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## **The Guardian Foundation** 

## **Trustees' Report** 

## **Going concern** 

These financial statements are prepared on the going concern basis, under the historical cost convention, and in accordance with applicable accounting standards in the United Kingdom. In addition the financial statements have been prepared in accordance with the Statement of Recommended Practice on Accounting and Reporting by Charities SORP (FRS102) and comply with the Companies Act 2006 and the Charities Act 2011. The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements. 

The board considers the Guardian Foundation to be a going concern under the weight of precedent and sound expectation of the continued support from Guardian Media Group plc., the principal funder. 

## **Disclosure of information to auditors** 

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditors are unaware. 

## **Trustee's liabilities** 

As permitted by the Articles of Association, the trustee have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The Charity also purchased and maintained throughout the financial year directors' and officers' liability insurance in respect of itself and its trustrees. 

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## **The Guardian Foundation** 

## **Trustees' Report** 

The Statement of Trustees' Responsibilties is considered part of this Trustees' Report. 

The annual report was approved by the trustees of the charity on 2 August 2021 and signed on its behalf by: 


......................................... Elizabeth Forgan DBE (Chair) Trustee 

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## **The Guardian Foundation** 

## **Statement of Trustees' Responsibilities** 

The trustees (who are also the directors of The Guardian Foundation for the purposes of company law) are responsible for preparing the trustees' report and the Annual report and the financial statements in accordance with applicable law and regulations. 

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, for that period. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and apply them consistently; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards, comprising FRS 102, 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 adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

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## **The Guardian Foundation** 

## **Independent Auditor's Report to the Members of The Guardian Foundation** 

## **Opinion on the financial statements** 

- In our opinion, the financial statements: 

- give a true and fair view of the state of the Charitable Company's affairs as at 31 March 2021 and of its incoming resources and application of resources, 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. 

We have audited the financial statements of The Guardian Foundation (“the Charitable Company”) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

## **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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Independence** 

We remain independent of the Charitable Company in accordance with the ethical requirements 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. 

## **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. 

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

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## **The Guardian Foundation** 

## **Independent Auditor's Report to the Members of The Guardian Foundation** 

## **Other information** 

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: 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. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. 

## **Companies Act 2006 reporting** 

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 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, which are included in the Trustees’ Report, have been prepared in accordance with applicable legal requirements 

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 Strategic report or the Trustee’s report. 

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

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

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

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

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

- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. 

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## **The Guardian Foundation** 

## **Independent Auditor's Report to the Members of The Guardian Foundation** 

## **Responsibilities of Trustees** 

As explained more fully in the Statement of Trustees’ Responsibilities, 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 determines 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** 

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder. 

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. 

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## **The Guardian Foundation** 

## **Independent Auditor's Report to the Members of The Guardian Foundation** 

## **Extent to which the audit was capable of detecting irregularities, including fraud** 

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

- We made enquiries of management, and the Board, including: 

   - how they have identified, evaluated and complied with laws and regulations and whether they were aware 

   - of any instances of non-compliance; 

   - their process for detecting and responding to the risks of fraud and whether they have knowledge of any 

   - actual, suspected or alleged fraud; and 

   - which internal controls have been established to mitigate risks related to fraud or non-compliance with laws and regulations. 

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company. These include, but are not limited to, compliance with the Companies Act 2006, UK GAAP, FRS 102 Charities SORP, and tax legislation. 

- In addition, the charitable company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: employment law, health and safety legislation, and data protection. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of Those Charged with Governance and other management and inspection of regulatory and legal correspondence if any. 

- We considered management’s incentives and opportunities for fraudulent manipulation of the financial statements (including revenue recognition and the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates. 

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## **The Guardian Foundation** 

## **Independent Auditor's Report to the Members of The Guardian Foundation** 

## **Audit response to risks identified** 

- The Senior Statutory Auditor has assessed and concluded that the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations; 

- We reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above; 

- We made enquiries of the Board and management; 

- We read minutes of meetings of those charged with governance; 

- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; considered completeness of related party transactions; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business; and 

- We challenged assumptions made by management in their significant accounting estimates in particular in relation to gifts in kind, and classification of restricted funds. 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. 

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: 

https://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. 


...................................... Jill Halford (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditors London, UK 

03 August 2021 Date:............................. 

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). 

Page 17 



## **The Guardian Foundation** 

## **Statement of Financial Activities for the Year Ended 31 March 2021** 

|**Note**<br>**Income from:**<br>Donations<br>3<br>Charitable activities<br>4<br>Other trading activities<br>5<br>Total Income<br>**Expenditure on:**<br>Charitable activities<br>6<br>Total Expenditure<br>Net movement in funds<br>**Reconciliation of funds**<br>Total funds brought forward<br>Total funds carried forward<br>17|**Unrestricted**<br>**funds**<br>**£**<br>538,847<br>62,347<br>-<br>601,194<br>(580,969)<br>(580,969)<br>20,225<br>151,144<br>171,369|**Restricted**<br>**funds**<br>**£**<br>-<br>375,530<br>-<br>375,530<br>(414,639)<br>(414,639)<br>(39,109)<br>245,185<br>206,076|**Total**<br>**2021**<br>**£**<br>538,847<br>437,877<br>-<br>976,724<br>(995,608)<br>(995,608)<br>(18,884)<br>396,329<br>377,445|**Restated**<br>**Total**<br>**2020**<br>**£**<br>540,302<br>947,819<br>16,185|
|---|---|---|---|---|
|||||1,504,306|
|||||(1,277,050)|
|||||(1,277,050)|
|||||227,256<br>169,073|
|||||396,329|



All of the charity's activities derive from continuing operations during the above two periods. 

The prior period incoming resources have been recategorised as reflected in the accompanying notes, there is no impact to total incoming resources. 

There are no recognised gains or losses other than those passing through the Statement of Financial Activities. 

There is no difference between the net movement in funds and the retained results for the year stated above and their historical cost equivalents. 

The funds breakdown for 2020 is shown in note 17. 

The notes on pages 21 to 34 form an integral part of these financial statements. Page 18 



## **The Guardian Foundation** 

## **(Company Registration number: 08437335) (Charity registration number: 1153865) Balance Sheet as at 31 March 2021** 

|**Note**<br>**Current assets**<br>Debtors<br>14<br>Cash at bank and in hand<br>15<br>**Creditors: Amounts falling due within one year**<br>16<br>**Net assets**<br>**Funds of the charity:**<br>**Restricted income funds**<br>Restricted funds<br>**Unrestricted income funds**<br>Unrestricted funds<br>**Total funds**<br>17|**2021**<br>**£**<br>16,267<br>438,720<br>454,987<br>(77,542)<br>377,445<br>206,076<br>171,369<br>377,445|**2020**<br>**£**<br>22,419<br>465,301|
|---|---|---|
|||487,720<br>(91,391)|
|||396,329|
|||245,185<br>151,144|
|||396,329|



Prepared in accordance with the special provisions of section 415A of the Companies Act 2006 relating to small companies. 

The financial statements on pages 18 to 34 were approved by the trustees, and authorised for issue on 2 August 2021 and signed on their behalf by: 


......................................... Elizabeth Forgan DBE (Chair) Trustee 

The notes on pages 21 to 34 form an integral part of these financial statements. Page 19 



## **The Guardian Foundation** 

## **Statement of Cash Flows for the year ended 31 March 2021** 

|**Note**<br>**Cash flows from operating activities**<br>Net cash (expenditure)/income<br>**Working capital adjustments**<br>Decrease in debtors<br>14<br>Decrease in creditors<br>16<br>Net cash flows from operating activities<br>Net (decrease)/increase in cash and cash equivalents<br>Cash and cash equivalents at 1 April<br>Cash and cash equivalents at 31 March<br>**Reconciliation of net cash flow to movement in net funds**<br>(Decrease)/increase in cash<br>Net funds at 1 April 2020<br>Net funds at 31 March 2021|**2021**<br>**£**<br>(18,884)<br>6,152<br>(13,849)<br>(26,581)<br>(26,581)<br>465,301<br>438,720<br>(26,581)<br>465,301<br>438,720|**2020**<br>**£**<br>227,256<br>28,877<br>(8,493)|
|---|---|---|
|||247,640|
|||247,640<br>217,661|
|||465,301|
|||247,640<br>217,661|
|||465,301|



All of the cash flows are derived from continuing operations during the above two years. 

The notes on pages 21 to 34 form an integral part of these financial statements. Page 20 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **1 Charity status** 

The charity is a company limited by guarantee and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. 

The address of its registered office is: PO Box 68164 Kings Place 90 York Way London N1P 2AP 

These financial statements were authorised for issue by the trustees on 2 August 2021. 

## **2 Accounting policies** 

## **Summary of significant accounting policies and key accounting estimates** 

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. 

## **Basis of preparation** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (NB: 2nd edition issued October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

The Guardian Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. 

Page 21 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **Going concern** 

The financial statements have been prepared on a going concern basis. 

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements. 

The board considers the Guardian Foundation to be a going concern under the weight of precedent and sound expectation of the continued support from Guardian Media Group plc., the principal funder. 

The trustees have considered the impact of Covid-19 in this assessment of both the future operational performance along with the value of its resources. 

The Charity has adapted the Companies Act formats to reflect the Charities SORP and the special nature of the Charity's activities. 

The principal accounting policies, which have been applied consistently throughout the year, are set out below. 

## **Income** 

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. 

## _**Donations**_ 

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. 

## _**Gifts in kind**_ 

Gifts in kind represents services performed by related parties on behalf of the charity. Gifts in kind are recognised at the open market rate and within both income and expenditure. 

## **Expenditure** 

All expenditure is recognised once there is a legal or constructive obligation for that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs. 

All resources expended are inclusive of irrecoverable VAT. 

## _**Charitable activities**_ 

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. 

Page 22 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **Support costs** 

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. 

## **Governance costs** 

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses. 

## **Taxation** 

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

## **Trade debtors** 

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. 

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. 

## **Cash and cash equivalents** 

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. 

## **Trade creditors** 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. 

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. 

## **Foreign exchange** 

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. 

Page 23 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **Fund structure** 

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity. 

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. 

## **Pensions and other post retirement obligations** 

Guardian Media Group plc operates a defined contribution pension scheme, of which the Charity's staff are members. Contributions are made in accordance with the scheme rules, and charged to operating profit as incurred. 

## **3 Income from donations and legacies** 

|Donations and legacies;<br>Donations from Guardian Media Group plc<br>Donations from individuals<br>Gifts in kind<br>Donations and legacies;<br>Donations from Guardian Media Group plc<br>Donations from individuals<br>Gifts in kind|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>435,000<br>12,133<br>91,714<br>538,847<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>450,000<br>3,000<br>87,302<br>540,302|**Total**<br>**2021**<br>**£**<br>435,000<br>12,133<br>91,714|
|---|---|---|
|||538,847|
|||**Total**<br>**2020**<br>**£**<br>450,000<br>3,000<br>87,302|
|||540,302|



Page 24 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **4 Income from charitable activities** 

|Programmes and projects<br>Programmes and projects<br>**5**<br>**Income from other trading activities**<br>Trading income;<br>Other trading income|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>62,347<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>87,613|**Restricted**<br>**funds**<br>**£**<br>375,530<br>**Restricted**<br>**funds**<br>**£**<br>860,206<br>**Total**<br>**2021**<br>**£**<br>-<br>-|**Total**<br>**2021**<br>**£**<br>437,877|
|---|---|---|---|
||||**Total**<br>**2020**<br>**£**<br>947,819|
||||**Total**<br>**2020**<br>**£**<br>16,185|
||||16,185|



Page 25 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **6 Expenditure on charitable activities** 

|News Literacy and Education<br>Archive<br>The Scott Trust Bursary scheme<br>International programmes<br>News Literacy and Education<br>Archive<br>The Scott Trust Bursary scheme<br>International programmes<br>News Literacy and Education<br>Archive<br>The Scott Trust Bursary scheme<br>International programmes<br>News Literacy and Education<br>Archive<br>The Scott Trust Bursary scheme<br>International programmes|**Activity**<br>**undertaken**<br>**directly**<br>**£**<br>372,448<br>74,397<br>50,757<br>148,846<br>646,448<br>**Activity**<br>**undertaken**<br>**directly**<br>**£**<br>656,148<br>94,437<br>52,295<br>175,029<br>977,909<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>318,827<br>103,574<br>78,173<br>80,395<br>580,969<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>367,772<br>123,325<br>68,292<br>53,541<br>612,930|**Activity**<br>**support costs**<br>**£**<br>201,170<br>40,182<br>27,416<br>80,392<br>349,160<br>**Activity**<br>**support costs**<br>**£**<br>200,715<br>28,888<br>15,997<br>53,541<br>299,141<br>**Restricted**<br>**funds**<br>**£**<br>254,791<br>11,005<br>-<br>148,843<br>414,639<br>**Restricted**<br>**funds**<br>**£**<br>489,091<br>-<br>-<br>175,029<br>664,120|**Total**<br>**2021**<br>**£**<br>573,618<br>114,579<br>78,173<br>229,238|
|---|---|---|---|
||||995,608|
||||**Total**<br>**2020**<br>**£**<br>856,863<br>123,325<br>68,292<br>228,570|
||||1,277,050|
||||**Total**<br>**2021**<br>**£**<br>573,618<br>114,579<br>78,173<br>229,238|
||||995,608|
||||**Total**<br>**2020**<br>**£**<br>856,863<br>123,325<br>68,292<br>228,570|
||||1,277,050|



In addition to the expenditure analysed above, there are also governance costs of £7,724 (2020 - £5,013) which relate directly to charitable activities. See note 7 for further details. 

Page 26 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **7 Analysis of governance and support costs** 

## **Support costs allocated to charitable activities** 

|**Basis**<br>**of**<br>**allocation**<br>**Governance**<br>**costs**<br>**£**<br>News Literacy and Education A<br>4,450<br>Archive<br>A<br>889<br>The Scott Trust Bursary<br>scheme<br>A<br>606<br>International programmes<br>A<br>1,779<br>7,724<br>**Basis**<br>**of**<br>**allocation**<br>**Governance**<br>**costs**<br>**£**<br>News Literacy and Education A<br>3,364<br>Archive<br>A<br>484<br>The Scott Trust Bursary<br>scheme<br>A<br>268<br>International programmes<br>A<br>897<br>5,013|**Finance**<br>**costs**<br>**£**<br>6,054<br>1,208<br>826<br>2,419<br>10,507<br>**Finance**<br>**costs**<br>**£**<br>7,954<br>1,144<br>634<br>2,122<br>11,854|**Staff**<br>**costs**<br>**£**<br>**Premises**<br>**costs**<br>**including**<br>**depreciation**<br>**£**<br>136,573<br>46,789<br>27,281<br>9,346<br>18,612<br>6,376<br>54,580<br>18,695<br>237,046<br>81,206<br>**Staff**<br>**costs**<br>**£**<br>**Premises**<br>**costs**<br>**including**<br>**depreciation**<br>**£**<br>122,973<br>50,624<br>17,699<br>7,286<br>9,801<br>4,035<br>32,804<br>13,503<br>183,277<br>75,448|**Other**<br>**support**<br>**costs**<br>**£**<br>7,304<br>1,458<br>996<br>2,919<br>12,677<br>**Other**<br>**support**<br>**costs**<br>**£**<br>15,800<br>2,275<br>1,259<br>4,215<br>23,549|**Total**<br>**2021**<br>**£**<br>201,170<br>40,182<br>27,416<br>80,392|
|---|---|---|---|---|
|||||349,160|
|||||**Total**<br>**2020**<br>**£**<br>200,715<br>28,888<br>15,997<br>53,541|
|||||299,141|



## **Basis of allocation** 

**Reference Method of allocation** A Pro-rata on costs in line with our accounting policy 

## **Governance costs** 

|Audit fees<br>Audit of the financial statements<br>Other governance costs|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>5,000<br>2,724<br>7,724|**Total**<br>**2021**<br>**£**<br>5,000<br>2,724<br>7,724|**Total**<br>**2020**<br>**£**<br>3,894<br>1,119|
|---|---|---|---|
||||5,013|



Page 27 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **8 Grant-making** 

## **Analysis of grants** 

|**Analysis of grants**||||
|---|---|---|---|
|**Analysis**<br>Education - postgraduate<br>scholarships<br>Funding - Turkish journalism<br>initiative<br>Partnership - journalist recognition<br>awards<br>Education - News literacy project<br>Funding - Underrepresented voices<br>initiative|**Grants to institutions**<br>**2021**<br>**£**<br>**2020**<br>**£**<br>30,930<br>29,965<br>107,873<br>81,231<br>13,718<br>13,493<br>19,959<br>253,987<br>10,393<br>-<br>182,873<br>378,676|**Grants to individuals**<br>**2021**<br>**£**<br>**2020**<br>**£**<br>19,400<br>19,200<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>19,400<br>19,200||
||||19,200|



The support costs associated with grant-making are £105,425 (31 March 2020 - £68,373). 

Below are details of individual material grants made to institutions by the charity 

|**Name of institution**<br>**Activity**<br>Goldsmiths College<br>The Scott Trust Bursary scheme<br>City University of London<br>The Scott Trust Bursary scheme<br>University of Sheffield<br>The Scott Trust Bursary scheme<br>DMRA (previously MintLab)<br>International programmes<br>Swedish Consulate<br>International programmes<br>International Media Support<br>International programmes<br>National Literacy Trust<br>News Literacy and Education<br>European Press Prize<br>News Literacy and Education<br>Great Northern Film and Media<br>News Literacy and Education<br>Unlimited Potential<br>News Literacy and Education<br>PSHE Association<br>News Literacy and Education|**2021**<br>**£**<br>10,321<br>10,317<br>10,292<br>101,898<br>5,197<br>778<br>16,539<br>13,718<br>6,380<br>4,013<br>3,420<br>182,873|**2020**<br>**£**<br>10,015<br>10,117<br>9,833<br>80,503<br>728<br>-<br>231,487<br>13,493<br>-<br>-<br>22,500|
|---|---|---|
|||378,676|



**9 Net income/expenditure** 

Net expenditure for the year includes: 

|Audit fees|**2021**<br>**£**<br>(5,000)|**2020**<br>**£**<br>(3,894)|
|---|---|---|



Page 28 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **10 Trustees remuneration and expenses** 

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year (2020: £nil). 

No trustees have received any reimbursed expenses or any other benefits from the charity during the year (2020: £nil). 

## **11 Staff costs** 

The aggregate payroll costs were as follows: 

|The aggregate payroll costs were as follows:|||
|---|---|---|
|**Staff costs during the year were:**<br>Wages and salaries<br>Social security costs<br>Pension costs|**2021**<br>**£**<br>450,596<br>48,141<br>50,181<br>548,918|**2020**<br>**£**<br>454,582<br>44,778<br>41,245|
|||540,605|



The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows: 

|the year expressed as full time equivalents was as follows:|||
|---|---|---|
|Management<br>Charitable activities|**2021**<br>**No**<br>3<br>9<br>12|**2020**<br>**No**<br>3<br>7|
|||10|



12 (2020 - 10) of the above employees participated in the Defined Contribution Pension Schemes. 

During the year 1 (2020: nil) member of staff was made redundant, all redundancy costs were borne by Guardian Media Group plc. 

The number of employees whose emoluments fell within the following bands was: 

|£60,001 - £70,000<br>£70,001 - £80,000<br>£100,001 - £110,000|**2021**<br>**No**<br>-<br>1<br>1|**2020**<br>**No**<br>1<br>2<br>-|
|---|---|---|



The total employee benefits of the key management personnel of the charity were £153,607 (2020 - £145,834). 

Page 29 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **12 Auditors' remuneration** 

|**12 Auditors' remuneration**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Audit of the financial statements|5,000|3,894|



## **13 Taxation** 

The charity is a registered charity and is therefore exempt from taxation. 

## **14 Debtors** 

|Prepayments<br>Accrued income<br>Other debtors<br>**15 Cash and cash equivalents**<br>Cash at bank<br>**16 Creditors: amounts falling due within one year**<br>Trade creditors<br>Due to related parties<br>Other taxation and social security<br>Accruals|**2021**<br>**£**<br>16,267<br>-<br>-<br>16,267<br>**2021**<br>**£**<br>438,720<br>**2021**<br>**£**<br>1,701<br>70,114<br>502<br>5,225<br>77,542|**2020**<br>**£**<br>15,958<br>6,311<br>150|
|---|---|---|
|||22,419|
|||**2020**<br>**£**<br>465,301|
|||**2020**<br>**£**<br>18,015<br>67,074<br>102<br>6,200|
|||91,391|



Page 30 



## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

|**17 Funds**<br>**Unrestricted**<br>**_General_**<br>General fund<br>**Restricted**<br>International Media Support<br>donation (Syria in Depth<br>programme)<br>Swedish Consulate donation<br>(New Media Academy<br>programme)<br>Google.org via Tides Foundation,<br>Google LLC, Nesta, Garfield<br>Weston and Stiftung Auxilium<br>donations (NewsWise<br>programme)<br>London College of<br>Communication donation<br>(Refugee Journalism project)<br>Swedish Institute donation<br>(Podcast training project)<br>Paul Hamlyn Foundation<br>donation (Made in Britain)<br>The National Archives donation<br>(Archive transcription project)<br>Heritage Lottery Fund donation<br>(Archives and the history of<br>journalism interactive workshops)<br>SIDA donation (Turkey incubator<br>programme)<br>**Total restricted**<br>**Total funds**|**Balance at 1**<br>**April 2020**<br>**£**<br>151,144<br>7,871<br>13,687<br>221,788<br>-<br>1,839<br>-<br>-<br>-<br>-<br>245,185<br>396,329|**Income**<br>**£**<br>601,194<br>-<br>12<br>120,917<br>2,067<br>10,858<br>50,000<br>5,000<br>11,900<br>178,815<br>379,569<br>980,763|**Expenditure**<br>**£**<br>(580,969)<br>(7,871)<br>(13,699)<br>(235,809)<br>(2,067)<br>(12,697)<br>(16,915)<br>(3,232)<br>(7,773)<br>(118,615)<br>(418,678)<br>(999,647)|**Balance at 31**<br>**March 2021**<br>**£**<br>171,369<br>-<br>-<br>106,896<br>-<br>-<br>33,085<br>1,768<br>4,127<br>60,200|
|---|---|---|---|---|
|||||206,076|
|||||377,445|



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## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

|**Unrestricted**<br>**_General_**<br>General fund<br>**Restricted**<br>International Media Support<br>donation (Syria in Depth<br>programme)<br>Swedish Consulate donation<br>(New Media Academy<br>programme)<br>Google.org via Tides Foundation,<br>Google LLC, Nesta, Garfield<br>Weston and Stiftung Auxilium<br>donations (NewsWise<br>programme)<br>London College of<br>Communication donation<br>(Refugee Journalism project)<br>Swedish Institute donation<br>(Podcast training project)<br>**Total restricted**<br>**Total funds**|**Balance at 1**<br>**April 2019**<br>**£**<br>119,974<br>46<br>2,680<br>46,373<br>-<br>-<br>49,099<br>169,073|**Income**<br>**£**<br>644,099<br>43,495<br>140,322<br>659,506<br>5,000<br>11,883<br>860,206<br>1,504,305|**Expenditure**<br>**£**<br>(612,929)<br>(35,670)<br>(129,315)<br>(484,091)<br>(5,000)<br>(10,044)<br>(664,120)<br>(1,277,049)|**Balance at 31**<br>**March 2020**<br>**£**<br>151,144<br>7,871<br>13,687<br>221,788<br>-<br>1,839|
|---|---|---|---|---|
|||||245,185|
|||||396,329|



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## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

The specific purposes for which the restricted funds are to be applied are as follows: 

## International Media Support donation (Syria in Depth programme) 

Funding provided was to deliver training and mentoring for Syrian journalists and organisations who are in exile, focusing on in-depth stories and investigations, in order to help build capacity of their organisations. 

## Swedish Consulate donation (New Media Academy programme) 

Funding provided was to facilitate an education programme including capacity building for journalists and small, independent media organisations based in Turkey. The purpose was to help enhance journalism plurality in Turkey through the supporting of new journalism project ideas and to promote to create a culture for skills sharing. 

Google.org via Tides Foundation, Google LLC, Nesta, Garfield Weston and Stiftung Auxilium donations (NewsWise programme) 

Funding provided was for a free, cross-curricular news literacy project for 9 to 11-year-olds across the UK in partnership with National Literacy Trust and PSHE Association. The aim of the project is to empower children & young people across the UK to access, understand, critically analyse and participate in the news. 

## London College of Communication donation (Refugee Journalism project) 

Funding provided was for a series of workshops and journalism masterclasses for refugee and exiled journalists seeking to re-start their careers in the UK. 

## Swedish Institute donation (Podcast training project) 

Funding provided was to facilitate training in podcasting to Turkish journalists, including technical skills, interviewing and pitching. The aim was to support and improve independent journalism within Turkey, build skills in modern technologies to tell stories in new ways and reduce barriers to entry for journalists. 

## Paul Hamlyn Foundation donation (Made in Britain) 

Funding provided was to collaborate on a Guardian multimedia project with an aim to elevate those who would not usually have a voice in the media. Carefully chosen talented local storytellers go through tailored training and join a specialist video unit from The Guardian, empowering them to tell their own story. The result is top class video journalism, examining the social challenges people are facing, working together with local people to cover the issues that affect them. 

## The National Archives donation (Archive transcription project) 

Funding provided was to run a pilot project to digitise and transcribe a sample of notebooks belonging to the Guardian’s first Africa correspondent, Clyde Sanger. Using open source transcription software the project investigated the potential for using remote volunteers with experience in Pitman shorthand to translate a selection of the notebooks. The aim was to improve access to this important collection and similar records in our own repository and elsewhere. 

Heritage Lottery Fund donation (Archives and the history of journalism interactive workshops) Funding provided was to enable the GNM Archive and The Guardian Foundation Education Centre to collaborate on providing a unique virtual experience for 11-14 year olds looking at the challenges journalists faced in discovering and sharing news before the information age. 

## SIDA donation (Turkey incubator programme) 

Funding provided was for the Incubator for Independent Media project in Turkey. Working with local partners to provide opportunities for Turkish media professionals to develop their own projects, as well as building the capacity of media trainers, producing valuable learning resources and research into the media sector. 

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## **The Guardian Foundation** 

## **Notes to the Financial Statements for the year ended 31 March 2021** 

## **18 Analysis of net assets between funds** 

|Current assets<br>Current liabilities<br>Total net assets<br>Current assets<br>Current liabilities<br>Total net assets|**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>223,674<br>(52,305)<br>171,369<br>**Unrestricted**<br>**funds**<br>**General**<br>**£**<br>219,267<br>(68,123)<br>151,144|**Restricted**<br>**funds**<br>**£**<br>231,312<br>(25,236)<br>206,076<br>**Restricted**<br>**funds**<br>**£**<br>268,453<br>(23,268)<br>245,185|**Total funds at**<br>**31 March**<br>**2021**<br>**£**<br>454,986<br>(77,541)|
|---|---|---|---|
||||377,445|
||||**Total funds at**<br>**31 March**<br>**2020**<br>**£**<br>487,720<br>(91,391)|
||||396,329|



## **19 Related party transactions** 

During the year the charity made the following related party transactions: 

## **Guardian Media Group plc** 

Charitable donations at arms length of £435,000 (2020:£450,000) have been received from Guardian Media Group plc, a related party of the Charity. 

At the balance sheet date the amount due to Guardian Media Group plc was £5,000 (2020 - £3,894). 

## **Guardian News & Media Limited** 

Gifts in kind at arms length of £91,714 (2020:£87,302) have been received from Guardian News & Media Limited, a related party of the Charity. 

At the balance sheet date the amount due to Guardian News & Media Limited was £65,114 (2020 - £63,180). 

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