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2022-07-31-accounts

Company number: 8720416 Charity Number: 1155360

The VTCT Foundation

Report and financial statements For the year ended 31 July 2022

The VTCT Foundation

Contents

For the year ended 31 July 2022

Reference and administrative information ....................................................................................... 1 Trustees’ annual report ................................................................................................................... 2 Independent examiner’s report ...................................................................................................... 9 Statement of financial activities (incorporating an income and expenditure account) ................... 10 Balance sheet ............................................................................................................................... 11 Statement of cash flows ................................................................................................................ 12 Notes to the financial statements ................................................................................................. 13

The VTCT Foundation

Reference and administrative information

For the year ended 31 July 2022

Company number 8720416
Country of incorporation United Kingdom
Charity number 1155360
Country of registration England & Wales
Registered office Aspire House
and operational Annealing Close
address Eastleigh
SO50 9PX
Trustees Trustees, who are also directors under company law, who served
during the year and up to the date of this report were as follows:
Rosanna Preston
Tony Lau Walker
Prof Nichola Rumsey
Prof Naiem Moiemen
Dr Wendy Edwards
Angela Cross-Durrant (appointed 30 June 2022)
Bankers CAF Bank Ltd
25 Kings Hill Avenue
West Malling
Kent
ME19 4JQ
Investment managers abrdn (for CAF)
and custodians Bow Bells House
1 Bread Street
LONDON
EC4M 9HH
Independent Fleur Holden FCA
Examiner Sayer Vincent LLP
Chartered Accountants
Invicta House
108-114 Golden Lane
LONDON
EC1Y 0TL

1

The VTCT Foundation

Trustees’ annual report

For the year ended 31 July 2022

The trustees present their report and the financial statements for the year ended 31 July 2022. Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102. This trustees’ annual report includes a directors’ report as required by company law.

Objectives and activities

Purposes and aims

The activities of the charity are grant making in the fields of vocational education, especially hair and beauty sectors, and research into the relief of disfigurement.

The charity’s vision is: Supporting a better future for people with disfigurement.

The purposes of the charity are:

The strategies employed to achieve the charity’s aims and objectives are to:

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remain focused on its stated purposes.

2

The VTCT Foundation

Trustees’ annual report

For the year ended 31 July 2022

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

Achievements and performance

The charity's main activities and beneficiaries are described below. All its charitable activities focus on grant making and are undertaken to further The VTCT Foundation’s charitable purposes for the public benefit.

The charity has identified that it is important that it is familiar with the needs and activities of organisations working in the field of visible difference. Therefore, the charity is funding the Appearance Collective. The Appearance Collective - an informal network - brings together researchers, clinicians and representatives of charities working with visible difference to attend conferences and workshops on topics such as fundraising, research and interventions. The aim of the Collective’s strategy is to reduce duplication, encourage collaboration, and to enable all those working in the visible difference arena to stay up to date with research and projects. A secondary objective is to help charities, many of which are small, to achieve long-term sustainability and to encourage a unified voice on issues connected with visible difference.

The trustees raise awareness of the charity and its work through the charity’s website www.vtctfoundation.org.uk, membership of the Appearance Collective, and attendance and organisation of workshops and conferences.

Grant Making Portfolio

The trustees have agreed a portfolio of grants covering a spectrum from medical and psychological research to patient support. Applications were received via the Foundation website or through direct contact with patient organisations, clinicians, and researchers. Each application is assessed against the Foundation’s grant making criteria and applicants are supported to make the best possible application by a part-time Grant Applications Manager. During the year main new grants included the following organisations:

Plans were put in place during the year to deliver on one of the Foundation's new strategic objectives including to invest in attracting and developing talent in the visible difference field. This was achieved through the launch of VTCTF's own Career Development Programme which launched in early 2022. The awards below were made in early July. Plans are now in place to run a further grant call for two PhD awards in autumn 2022 with a view to making awards following a rigorous process by the end of May 2023. Consideration is being given to running a further call to fund one VTCT Foundation clinical fellowship later next year.

3

The VTCT Foundation

Trustees’ annual report

For the year ended 31 July 2022

Two awards were made under the Career Development Programme funding stream during 2021/22:

Small Grants Programme

In 2018 the trustees launched a Small Grants Programme to give easier access to small charities to grants of up to £25,000. The funds are to support charities working in the visible difference field, to enable them to achieve a step change and build their capacity and impact. The first grants were awarded in September 2018, and in total just over £310,000 was awarded to 13 organisations.

The trustees decided to continue with this funding stream which continues to be open to applications.

New Ways of Working

Finally in response to the challenges experienced by charities as a result of the Covid pandemic the trustees decided to supplement the small grants with an additional funding stream ‘New Ways of Working’. This launched on 1 June 2020, intending to run until 31 December 2020. As the pandemic and aftermath continued into 2021, this funding stream was extended.

Grants were awarded as either:

During the year to 31 July 2022, grants totalling £56,855 were made to 3 organisations (2021: £368,578 to 10 organisations) under the small grant and New Ways of Working programmes.

Maximising Impact, Lasting Legacy

As the Foundation enters its final planned five years of operation the trustees have ramped up their commitment to two funding priorities with a view to significantly enhancing the Foundation’s impact in the sector in the next five years and transforming its legacy in the future. The areas of investment beyond the grant programmes above are:

  1. Continuing to invest in the informal network of charities, clinicians and researchers called the Appearance Collective. This has taken the form of:

  2. Launching a forum for chairs and chief executives of ten of the larger charities in order to better identify and support their development priorities, drive sustainability and encourage better working together. This initiative will be taken further over the next two years.

4

The VTCT Foundation

Trustees’ annual report

For the year ended 31 July 2022

Financial review

The only income received by the charity is bank interest and investment income. The charity does not actively raise funds from other sources.

Total expenditure during the year was £1,378,206 of which £1,340,489 (97.3%) related to grants. (2021: Total £796,448 of which grants were £773,290 (97.1%) after accounting for a £60,000 repayment of an unused grant awarded in a previous accounting period.) Where grants cross a number of years, they have been discounted within the financial statements in accordance with FRS 102.

Reserves policy and going concern

The charity was formed through a grant from the Vocational Training Charitable Trust of £8.58 million in 2015. The trustees envisage utilising these funds over 10 years to pursue the charity’s objects and as such, expect the reserves available to reduce as the charity continues grant making. At 31 July 2022 the charity had unrestricted reserves of just under £4.13 million (2021 £5.58m). Of this £423,540 is held in the designated fund the trustees have earmarked for the Career Development programme.

The charity has minimal fixed operating costs and the trustees believe there are sufficient reserves available for the charity’s foreseeable future operational activity. Plans are beginning to

5

The VTCT Foundation

Trustees’ annual report

For the year ended 31 July 2022

be shaped to define the later stages of the charity’s lifespan and potential legacy which take account of the financial projects of the next four years.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 7 October 2013, and registered as a charity on 16 January 2014.

The company was established under a memorandum of association and is governed under its articles of association which state the objects and powers of the charitable company. All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 5 to the accounts.

Appointment of trustees

Trustees are appointed by application and interview. The charity has identified the skills mix needed for the Board and invited a range of applicants with relevant skills to apply. Applicants are interviewed by current board members and given an induction on the work of the charity and the role of a trustee.

Related parties and relationships with other organisations

The charity has no subsidiary entities.

As previously stated, the Centre for Appearance Research works closely with the Appearance Collective as part of the project funded by the VTCT Foundation. Prior to joining the Board of the Foundation Prof. Nichola Rumsey retired as Professor at the Centre for Appearance Research (‘CAR’) at the University of the West of England. She remains Professor Emerita.

Following a rigorous application review process a new grant of £1million payable over 4 years was awarded to CAR. Professor Rumsey did not take part in the decision to fund CAR and the award was unanimously agreed by the other trustees.

Additionally in 2021 a Fellowship of £90,000 to cover three years from 1 October 2020 was awarded to fund a PhD at UWE, hosted by CAR, and payments were made to for this during the year ended 31 July 2022.

Dr Wendy Edwards is the chair of the Headlines Craniofacial Support (‘Headlines’) Research Committee. She was a trustee and chair of Headlines until June 2021, and her husband remains a trustee of Headlines.

An award of £88,445 was made to Headlines in 2021 to cover a 21-month project starting in August 2021 to create and evaluate bespoke adult online resources. This award was made after

6

The VTCT Foundation

Trustees’ annual report

For the year ended 31 July 2022

thorough discussion by the trustees, and by unanimous agreement by all the trustees excluding Dr Edwards. This work is being carried out in collaboration with CAR.

Statement of responsibilities of the trustees

The trustees (who are also directors of The VTCT Foundation for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

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

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 July 2022 was 8 (2021:7). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

7

The VTCT Foundation

Trustees’ annual report

For the year ended 31 July 2022

The trustees’ annual report has been approved by the trustees on 16 December 2022 and signed on their behalf by

Tony Lau Walker Chair of trustees

8

Independent examiner’s report

To the trustees of

The VTCT Foundation

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 July 2022.

This report is made solely to the trustees as a body, in accordance with the Charities Act 2011. My examination has been undertaken so that I might state to the trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for my examination, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the trustees of the charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s accounts carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Fleur Holden FCA

Sayer Vincent LLP, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL 6 January 2023

9

The VTCT Foundation

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 July 2022

Note
Income from:
2
3
8
5
Reconciliation of funds:
Total funds carried forward
Net expenditure for the year and net movement in funds
Total expenditure
Charitable activities
Grant Making
Total funds brought forward
Net (losses)/gains on investments
Net (expenditure) before net (losses)/gains on
investments
Investments
Total income
Expenditure on:		 2022
2021
£
£
52,905
90,213
52,905
90,213
1,378,206
796,448
1,378,206
796,448
(1,325,301)
(706,235)
(125,642)
683,863
(1,450,943)
(22,372)
5,578,405
5,600,777
4,127,462
5,578,405

All of the above results are derived from continuing activities and relate to unrestricted funds. There were no other recognised gains or losses other than those stated above.

10

The VTCT Foundation

Company no. 8720416

Balance sheet

As at 31 July 2022

Note
£
Fixed assets:
8
Current assets:
9
-
373,758
373,758
Liabilities:
10
(731,137)
11
13a
606,809
423,540
3,097,113
Total unrestricted funds
Net current (liabilities)
Creditors: amounts falling due after one year
Total assets less current liabilities
Unrestricted income funds:
Fair value reserve
The funds of the charity:
Total net assets
Creditors: amounts falling due within one year
Investments
Cash at bank and in hand
Debtors
Designated funds
General funds
Total charity funds		 Note
£
Fixed assets:
8
Current assets:
9
-
373,758
373,758
Liabilities:
10
(731,137)
11
13a
606,809
423,540
3,097,113
Total unrestricted funds
Net current (liabilities)
Creditors: amounts falling due after one year
Total assets less current liabilities
Unrestricted income funds:
Fair value reserve
The funds of the charity:
Total net assets
Creditors: amounts falling due within one year
Investments
Cash at bank and in hand
Debtors
Designated funds
General funds
Total charity funds		 2022
£
5,500,756		 £
60,000
451,639		 2021
£
6,375,651
5,500,756
(357,379)		 6,375,651
(396,792)
373,758
(731,137)		 511,639
(908,431)
606,809
423,540
3,097,113		 862,297
604,132
4,111,976
5,143,377
(1,015,915)		 5,978,859
(400,454)
4,127,462 5,578,405
4,127,462 5,578,405
4,127,462 5,578,405

The opinion of the trustees is that for the year ended 31 July 2022 the company was entitled to the exemptions conferred by Section 477 of the Companies Act 2006 relating to small companies.

The trustees acknowledge the following responsibilities:

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 16 December 2022 and signed on their behalf by

Tony Lau Walker Chair of Trustees

11

The VTCT Foundation

Statement of cash flows

For the year ended 31 July 2022

Note
£
£
a)
(880,039)
52,905
(821,825)
1,571,078
802,158
(77,881)
451,639
373,758
2022
Losses/(gains) on investments
Dividends and interest from investments
Decrease/(Increase) in debtors
Net cash (used in) operating activities
Net (expenditure) for the reporting period
(as per the statement of financial activities)
Increase in creditors
Reconciliation of net (expenditure) to net cash flow from operating activities
Proceeds from sale of investments
Cash flows from operating activities
Net cash provided by investing activities
Net cash (used in) operating activities
Cash flows from investing activities:
Interest and dividends from investments
Purchase of investments
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year		 £
£
(843,967)
90,213
(1,746,776)
2,359,513
702,950
(141,017)
592,656
451,639
2022
2021
£
£
(1,450,943)
(22,372)
125,642
(683,863)
(52,905)
(90,213)
60,000
(60,000)
438,167
12,481
(880,039)
(843,967)
2021		 £
£
(843,967)
90,213
(1,746,776)
2,359,513
702,950
(141,017)
592,656
451,639
2022
2021
£
£
(1,450,943)
(22,372)
125,642
(683,863)
(52,905)
(90,213)
60,000
(60,000)
438,167
12,481
(880,039)
(843,967)
2021
2022
£
(1,450,943)
125,642
(52,905)
60,000
438,167
(141,017)
592,656
451,639
2021
£
(22,372)
(683,863)
(90,213)
(60,000)
12,481
(880,039) (843,967)

12

The VTCT Foundation

Notes to the financial statements

For the year ended 31 July 2022

1 Accounting policies

The VTCT Foundation is a charitable company limited by guarantee and is incorporated in England.

The registered office address is Aspire House, Annealing Close, Eastleigh, SO50 9PX.

b) 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 accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

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

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. Investments are drawn down when they are needed to pay grant and other commitments as they fall due.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Investment income is included in the statement of financial activities when receivable.

g) Fund accounting

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure on charitable activities includes the costs of grant making undertaken to further the purposes of the charity and their associated support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

13

The VTCT Foundation

Notes to the financial statements

For the year ended 31 July 2022

1 Accounting policies (continued)

i) Grants payable and refunded

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Where grant commitments are made for periods due in more than one year, these are discounted to their present value, based on a rate in line with the expected rate of return on investments.

Grants repaid by recipients who have been unable to use the funds as given are accounted for on the earlier of receipt of the repayment or when the charity has confirmed that repayment will be made. The repayment is shown as a reduction in the overall expenditure on grants in the year in note 4. Any repayments due but not received by the year end are also shown as debtors.

j) Allocation of support and costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

As the sole activity of the charity is grant making, support and governance costs are both allocated in full to the grant making activity.

k) Listed investments

Investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

l) Cash at bank and in hand

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

m) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

n) Financial instruments

The charity has both basic and non-basic financial assets and financial liabilities. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value using the effective interest method. Non-basic financial instruments are measured at fair value with any gain or loss going to the statement of financial activities. Full details are given in the financial instruments note.

14

The VTCT Foundation

Notes to the financial statements

For the year ended 31 July 2022

Income from investments
Bank deposits
Investment income		 2022
Total
£
1,752
51,153		 2021
Total
£
2,492
87,721
52,905 90,213

All income from investments is unrestricted

3
Support costs
Governance costs
Support costs
Governance costs
Other professional fees
Trustee expenses
Other costs
Total expenditure
Grants payable (note 4)
Discounts unwound
Board meeting costs
Insurance
a. Current year
b. prior year
Independent examination fees
Independent examination fees
Trustee expenses
Total expenditure
Analysis of expenditure
Grants payable (note 4)
Other costs
Other professional fees
Discounts unwound
Insurance
Workshops and showcase		 Grant making
£
1,329,763
10,726
10,634
-
-
15,203
-
-
-		 Governance
costs
£
-
-
-
-
2,760
1,750
662
632
-		 Support
costs
£
-
-
-
778
-
3,875
-
-
1,423		 2022
£
1,329,763
10,726
10,634
778
2,760
20,828
662
632
1,423		 2021
£
760,460
12,830
-
778
2,760
19,361
-
-
259
1,366,326
6,076
5,804		 5,804
-
(5,804)		 6,076
(6,076)
-		 1,378,206
-
-		 796,448
-
-
1,378,206 - - 1,378,206 796,448
Grant making
760,460
12,830
-
-
15,658
-
-		 Governance
costs
-
-
-
2,760
1,500
-
-		 Support costs
-
-
778
-
2,203
-
259		 2021
760,460
12,830
778
2,760
19,361
-
259
788,948 4,260 3,240 796,448
3,240
4,260		 -
(4,260)		 (3,240)
-		 -
-
796,448 - - 796,448

15

The VTCT Foundation

Notes to the financial statements

For the year ended 31 July 2022

Grants payable Grants payable
Main grant
£
94,592
University of Oxford -
86,000
-
-
-
Other grants
1,000,000
123,081
33,750
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,750
3,000
-
1,346,173
Action Medical Research for Children
The Appearance Collective
Alopecia UK
Changing Faces
UWE/Centre for Appearance Research
Child Accident Prevention Trust
UWE Partnership PhD
North Bristol NHS Cleft Research
Queen Mary University of London/Hannah
Saunders
Career Develpoment Programme
Eczema Outreach Support
Caring Matters Now
CLEFT - Bridging the Gap
Birmingham Women's and Children's
Oxford University Hospitals NHS
Foundation Trust - Facial Palsy UK/CAR
British Burn's Assocation
Cleft Collective
MACS
Scar Free Foundation *
Nf2 Biosolutions
Apperance Matters 9 sponorship, and travel
bursaries
Katie Piper
Headlines
Children's Burns Trust
Facial Palsy UK		 Small grant/
New Ways of
Working
£
-
-
-
-
-
-
-
-
25,000
19,355
12,500
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Total
commitment
£
94,592
86,000
-
-
-
1,000,000
123,081
33,750
25,000
19,355
12,500
-
-
-
-
-
-
-
-
-
-
-
5,750
3,000
-		 Effect of
discounting
£
-
(4,077)
-
-
-
(69,188)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 2022
£
94,592
81,923
-
-
-
930,812
123,081
33,750
25,000
19,355
12,500
-
-
-
-
-
-
-
-
-
-
-
5,750
3,000
-		 2021
£
-
-
88,571
50,000
54,439
-
123,000
-
-
14,219
68,687
100,000
88,446
47,826
20,000
26,487
17,168
24,971
24,980
22,000
22,066
25,000
-
2,600
(60,000)
1,346,173 56,855 1,403,028 (73,265) 1,329,763 760,460

Where grants payments are due in more than one year, these are discounted back to present value in line with the charity's accounting policies.

This is stated after charging:

Independent examiner's fees (excluding VAT)

2022 2021
£ £
2,300 2,200

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £632 (2021: £Nil) incurred by 3 trustees (2021: 0) relating to attendance at meetings of the trustees and other meetings related to the work of the Foundation.

16

The VTCT Foundation

Notes to the financial statements

For the year ended 31 July 2022

6 Related party transactions

Professor NIchola Rumsey provides consultancy to the Centre for Appearance Research (CAR) at the University of the West of England (UWE). A £1m grant was awarded to UWE/CAR in 2018 and the first two annual £200,000 tranches paid under the grant agreement before Professor Rumsey became a trustee of VTCT Foundation. Later tranches have only been paid by agreement of the trustees following satisfactory annual reports. The last tranche of this grant was paid during 2021/22.

Following a rigourous application process and unanimous agreement by all trustees (excluding Professor Rumsey) a new £1m grant for 4 years funding was awarded in June 2022.

During 2021 a Fellowship of £90,000 to cover three years from 1 October 2020 was awarded to fund a PhD at UWE, hosted by CAR. Additionally, a grant of £47,826 was awarded to the Oxford University Hospitals NHS Trust Facial Palsy Unit for a project that will be carried out with input from Facial Palsy UK and CAR. Payments to CAR require approval by all the other trustees rather than a simple majority.

Dr Wendy Edwards was the chair of Headlines Craniofacial Support until June 2021, and currently sists on the Headlines Research Committee. Her husband continues to be a trustee of Headlines. Headlines received an award of £88,486 in 2021 to cover 2 years funding of a research post. Dr Edwards did not take part in the grant decision and the awards were unanimously agreed by the remaining trustees after thorough review. This work is being carried out in collaboration with CAR.

There are no other related party transactions to disclose for 2022 (2021: none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

7 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

8 Investments

Investments
Cash held as part of portfolio
Additions at cost
Net gain on change in fair value
Debtors
Unused grant refund
UK Common investment funds
Investments comprise:
Disposal proceeds
Fair value at the start of the year		 2022
£
6,375,651
821,825
(1,571,078)
(125,642)		 2021
£
6,304,525
1,746,776
(2,359,513)
683,863
5,500,756 6,375,651
2022
£
5,471,621
29,135		 2021
£
5,440,285
935,366
5,500,756 6,375,651
2022
£
-		 2021
£
60,000

Unused grant refund

17

The VTCT Foundation

Notes to the financial statements

For the year ended 31 July 2022

10 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Grants payable
Accruals		 2022
£
11,971
715,393
3,773		 2021
£
10,820
894,971
2,640
731,137 908,431

11 Creditors: amounts falling due after one year

Creditors: amounts falling due after one year
Grants payable 2022
£		 2021
£
1,015,915 400,454

12 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

13a Movements in funds (current year)

Movements in funds (current year)
Fair value reserve
General funds
Total unrestricted funds
Designated fund - Career Development Programme		 At 1 August
2021
£
862,297
604,132
4,111,976		 Income &
gains
£
-
-
(72,737)		 £
(255,488)
(180,592)
(942,126)
Expenditure
& losses		 Transfers
£
-
-
-		 At 31 July
2022
£
606,809
423,540
3,097,113
5,578,405 (72,737) (1,378,206) - 4,127,462

The fair value reserve represents the difference between the current fair value of the investments and their historic cost.

Purpose of designated fund

The trustees established a Fellowship programme in 2021 to support suitable Fellowships and PhD scholars. Following a review of the programme the Foundations launched its 'Career Development Programme' in 2022 and the fund has been renamed to match this.

An initial £1m was set aside to support this to be reviewed on an annual basis subject to levels of interest and suitability of applicants. The first award was made during 2021, with a total commitment of up to £200,000. Three awards were made in 2021,and a further two awards in 2022.

The amount charged to the fund as expenditure represents the total grant commitment made in the financial year the award is made before discounting, so that the remaining fund balance represents funds available for future awards. The discount will be unwound in future accounting periods against general funds.

13b Movements in funds (prior year)

Total unrestricted funds
Designated fund - Fellowships
Fair value reserve
General funds		 At 1 August
2020
£
380,646
800,000
4,420,131		 Income &
gains
£
481,651
-
292,425		 £
-
(194,439)
(602,009)
Expenditure
& losses		 Transfers
£
-
(1,429)
1,429		 At 31 July
2021
£
862,297
604,132
4,111,976
5,600,777 774,076 (796,448) - 5,578,405

18