The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 For the 39 weeks ended 31 October 2021
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
| Contents | Page |
|---|---|
| Reference and administrative information | 1 |
| Trustees' report | 2 |
| Statement of Trustees' responsibilities | 6 |
| Independent auditors' report to the Members and Trustees of The Morrisons Foundation | 7 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Cash flow statement | 13 |
| Notes to the financial statements |
14 |
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Reference and administrative information
Charity name
The Morrisons Foundation
Trustees
Martyn Jones Independent Chair of Trustees Jonathan Burke David Scott Sarah Wilkinson Rebecca Singleton Guy Mason Independent Trustee Kate Bratt-Farrar Independent Trustee Charles Dacres Independent Trustee
Senior staff members
Erin Fulller Morrisons Foundation Specialist Adrian Horsley Morrisons Foundation Advisor
Company registration number
09104264
Charity registration numbers
1160224 (Charity Commission) & SC045634 (Office of the Scottish Charity Regulator)
Principal office
Hilmore House, Gain Lane, Bradford, West Yorkshire, BD3 7DL
Independent auditors
PricewaterhouseCoopers LLP, Central Square, 29 Wellington St, Leeds, LS1 4DL
Bankers
HSBC Bank PLC, Regional Service Centre Europe, PO Box 125, 2nd Floor, 62-76 Park Street, London, SE1 9DZ
Legal advisors
Wrigleys Solicitors LLP, 19 Cookridge Street, Leeds, LS2 3AG
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Trustees Report for the period ended 31 October 2021
The Trustees present their Trustees Report and audited financial statements of the Charity for the 39 week period ended 31 October 2021.
Accounting reference date
The Charity has changed its accounting reference date from 31 January to 31 October. Consequently, these financial statements represent the 39 week period to 31 October 2021. The comparative period covers the 52 weeks to 31 January 2021. The accounting period of the Charity ends on a Sunday not more than seven days before or after the accounting reference date of 31 October.
Objectives and activities
The Morrisons Foundation has general charitable purposes and aims to support charities which make a positive difference in local communities across England, Scotland and Wales.
The Trustees w is that the requirement that The Morrisons Foundation conducts its affairs exclusively for the public benefit is met by ensuring that all donations are made to charities registered in England, Scotland or Wales. Donations are made in two ways: By match funding the money raised by Wm Morrison Supermarkets Limited Morrisons colleagues for charities ; and
- By awarding grants to charities which help to make a positive difference in local communities .
Match funding programme
Match funding is available for Morrisons colleagues who raise money for charities that are registered with the Charity Commission or the Office of the Scottish Charity Regulator and that deliver charitable activities in England, Scotland or Wales.
For a match funding application to be successful, Morrisons colleagues must demonstrate that they have applied an investment of time or effort in the fundraising activity, and be able to provide evidence of the money they have raised for their chosen charity.
Morrisons colleagues can make applications online for a maximum discretionary amount of £5,000 per request, up to twice each financial year. The Trustees have delegated the authority to approve match funding applications to The Morrisons Foundation specialist responsible for managing activities on a day to day basis.
Grant programme
make a positive difference in
local communities across England, Scotland and Wales. Grant funding is available for charities that are registered with the Charity Commission or the Office of the Scottish Charity Regulator.
licy exists to ensure that The Morrisons Foundation benefits the public and applies its funding fairly and consistently. The Trustees confirm that they have referred to the guidance contained in the public benefit when reviewing T policy.
The Trustees are briefed by The Morrisons Foundation specialist on all applications for grants which meet the criteria set out in the grant policy. All decisions relating to such grants are made by the Trustees. The Trustees vote on the outcome of the application, with a majority in favour required for the application to be approved.
2
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Trustees
(continued)
Financial review
The statement of the financial activities for the period is set out on page 11. Financial statements are reviewed before issue by all Trustees and the annual financial statements are subject to audit by the registered independent auditors.
As at 31 October 2021, The Morrisons Foundation had net assets of £2,971,754 (31 January 2021: £2,521,657) with £2,423,937 (31 January 2021: £1,962,656) of this amount relating to unrestricted funds.
Principal achievements during the period
The period covered by this report and attached financial statements is 1 February 2021 to 31 October 2021. During this period, the activity of The Morrisons Foundation comprised the receipt of income from Morrisons of £2,521,222 (31 January 2021: £3,685,662), the making of grants of £1,655,680 (31 January 2021: £3,042,129), and match funding donations of £370,081 (31 January 2021: £324,423).
Principal funding sources
Income is received from Morrisons and falls into the following categories:
-
All income net of VAT arising from the sale of single-use carrier bags from Morrisons online business;
-
A proportion of income from the sale of returnable carrier bags from Morrisons online business;
-
A proportion of income from clothing banks located in Morrisons car parks;
-
A proportion of income from Morrisons charity scratch-cards;
-
A proportion of income from car parking fines levied in Morrisons car parks; and
-
A proportion of other income from Morrisons in the form of donations.
No car parking income has been seen in the current period due to the shorter accounting period and change in year end. Other income was not recognised in the prior period due to no donation being received from Morrisons.
Fundraising
The Morrisons Foundation is funded by donations from Wm Morrison Supermarkets Limited (formerly WM Morrison Supermarkets PLC), rather than seeking to raise money from the public through fundraising appeals. If funds are received into the Morrisons Foundation in relation to a fundraising campaign of Wm Morrison Supermarkets Limited, The Morrisons Foundation will ensure that the campaign has been approved by the trustees in advance and that funds are spent for the purposes for which they have been raised.
The Morrisons Foundation is not aware of any complaints relating to such fundraising, but it works closely with Wm Morrison Supermarkets Limited to ensure the compliance with charity law and to ensure any fundraising conforms to recognised standards. Should any such complaints ever arise, the Chairman would raise them with the Trustees. The Morrisons Foundation and Wm Morrison Supermarkets Limited are aware of the importance of protecting the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches or undue pressure to donate and the nature of the way in which funds are raised means that the risks of abuse are inherently low.
Plans for future periods
The Trustees are committed to ensuring that The Morrisons Foundation continues the activities outlined above in the forthcoming period subject to satisfactory funding arrangements.
Investment
The Trustees have wide powers of investment. However, it is the intention that all funds received by The Morrisons Foundation will be applied either in the making of donations in accordance with the match funding programme or grant programme, or the payment of administration expenses which will not exceed 3% of income in any financial year. Pending such application, funds are held in an account with T bankers. In the scenario where this amount exceeds the necessary balance to ensure all usual streams can be funded, the excess is transferred to money market investments which allows the foundation to receive additional interest income. This balance is nil in both the current and prior periods disclosed within these financial statements.
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
ended 31 October 2021 (continued)
Reserves
Trustees financial stability and assists forward planning. The policy sets out the process by which Trustees have considered the nature of charitable funds held, the functional assets required by The Morrisons Foundation to fulfil its objectives, the potential financial impact of risk, the stability of income, and the impact of future plans and commitments.
Given the intention to restrict administration expenses to a low level, not exceeding 3% of annual income, the Trustees consider that the level of free reserves of The Morrisons Foundation will be sufficient in order to enable it to carry out its objectives. At the end of the financial period, the charity held £2,971,755 (31 January 2021: £2,521,657) of reserves.
The Trustees confirm that they are ultimately accountable for setting and monitoring the level of reserves kept by The Morrisons Foundation and will keep the reserves policy under review to ensure that it remains appropriate. The policy was reviewed during the previous year and the Trustees have agreed a plan which ensures the carried forward reserves for the accounting period 39 weeks ending 31 October 2021 are at least c.£500,000 in line with this policy.
Structure, governance and management
The Morrisons Foundation was incorporated as a charitable company limited by guarantee on 26 June 2014 and was registered with the Charity Commission on 29 January 2015 in England and Wales. The Morrisons Foundation was also registered with The Office of the Scottish Charity Regulator on 22 May 2015.
The Directors are Trustees for the purposes of charity law and in this report are collectively referred to as the Trustees. Responsibility for T The Morrisons Foundation regulate how the Trustees meet and make decisions for The Morrisons Foundation. The articles of association provide that there must be no fewer than three nor more than ten Trustees, and that at least two of the Trustees must neither be directors nor employees of Morrisons nor a relative of any such director or employee.
The power of appointment or removal of Trustees lies with the Trustees. Trustees are elected to serve for maximum period of three years; independent Trustees are restricted to a two year period. Trustees may be re-elected after this time by the Trustees of The Morrisons Foundation.
On appointment each Trustee is required to confirm that they have read the Charity Commission guidance in relation to Trustees duties and policies. New Trustees meet with the Chairman of the board of Trustees. Training needs are assessed and met as necessary.
At the quarterly Trustees Trustees agree the broad strategy for The Morrisons Foundation, including consideration of grant making, reserves, risk management, policies and performance, when requested to do so.
The day to day management of The Morrisons Foundation delegated to The Morrisons Foundation specialist.
The Trustees engage the services of an external legal advisor to ensure that decisions regarding The Morrisons e legal advisors also conduct ad-hoc reviews of The Morrisons Found
All Trustees give their time freely and no Trustee remuneration or expenses were paid in the period.
4
Tho IAorrison$ F(ndatKJn Annual roport and finanaal statements Registered Charty numbers 1160224 & SC045634 Cornpany numbèr 09104464 31 011 2021 Trustees, Report for the period ended 31 October 2021 (continuad) Risk management The Trustees have considered the major risks to which The Morrisons Foundation is exposed and have established systems procAJures to managp. tht)sp Thg. Triislg@.s hAliAvp thsjt all majnr riqk% bn0 mitigated. The Twstees have considered The Morrison$ Foundation's objectives, mission and strategy, the scale of its operations and any inlemal or external factors which may present a Tisk lo its financial security, reputation. beneficiaries or governance. The Morrisons Foundation's risk management policy set5 out the pro¢ess by which potential risks are identified. assessed. managed and reviewed. and the risk register provides a lop-level view of those risks. Policies and controls have been implemented lo minimise the risk of fraud or other mi8applic8lion of The Morri8ons Foundation's funds. These are regularly reviewed and updated as required. The approacn 10 risk management Is revlewe(J by the Trusiees annually. Thi5 includes a full ieview of the risk management policy and Ti5k register. Related partles The Morrisons Foundation r1VeS income from, but is independent of Morrisons. The Trustees lake all decision8 in the best interests of The Morrisons Foundation and its benefici8rfes and in furtherance of ils charitable objective5. Statewnent of publir bencfit The Trustees confim that The Morrisons Foundation complied with the Charf(ies Act 2011 in the period and that all grants have been made, taking into account the Charity Commission's guidance on public benefit, only to registered charitie5 Details of signifieant gctivities itndprtakAn in Ihft ppriotl piJhli$hpd in Thè Morrisons Foundation Annual Review, whiGh 13 available al w¥vw.morrisonsfoundalion.com Dl$closurg of Infoation to the auditors The Trustees who held office at the dale of approval of this Trustees, report confirm that, so far as they are aware, there is no relevant audr( infomiation of which The Morrison5 Foundation's aud((ors are unaware and the Trustees have taken all the $lep¥ they ought lo have taken as Trustees lo make themselves aware of any relevant audit infomation. Signe yn Jones, Tru81ee, on behalf of the Tru¥l¢e¥ Zfl July 2022
The Morrisons Foundatr'on Anr>ual rèport and financial statements Registered charity nurnber5 1180224 & SC045634 Company number 09104264 31 OctODer 2021 ststement of Trustees. responsibilities The Tnjslees (who are also directors of The Morrisons Found81ion for the purposes of ¢cmipany lawl are responsible for preparing the Trustees, Annual Report and the financial stslemenls in accordance with appluble law and regulation. Ctsmpany law requires tha Truste96 to prepare financial statgm•rts tor Saeh finanelal yaar. Undor that law tho Trust905 have prepared the flnancial slalements in accordanGe with United Kingdotn AcGQUllting SlciridÉaIdb, wiiipii¥iiiy FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,, and applicablè law IUn((ed Kingdom Generally Accepted Accounting Praeliee}. Under company law the Trustees must not approve the financial statements unless they afe satisfied that they give a true and fair view of th8 state of the affairs of The Morrisons Foundation and of the incoming resourc@s and application of m$OLireg$. ineludino thp. inrnmp. And p.Yr)g.nrlttiir. rtf Thè. Mnrrinn Foundation for that period. In preparing these financial statements, the Tru8t8es 8re required to.. select suitabke accounting poli¢ie$ and then apply them consistently,. observe the meih¢)tts ana principles in thè siat8m8ni of Recommen¢Jed PractlGe'. Accounllng and Reporting by Charities120191, make judgments and estimates that are reasonable and prudent.. slate whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any iiiaterial d¥partures disGlosed and ¢xplained in the financial statements,. and prepare the financial statements on the going conrn basis unless il is inappropriate lo presume that The Morrisons Foundation will ¢onlinue in business. The Tnjsteès are responsihl8 for kg9_ping xdAqiJxt xrprtijntina rÉ¥.ords Ih818re sufficient lo show 2nd explain The Morrison¥ foundation's transactKJns and diac103e with reaaongble arA¢Y at any time thc financial position of The Morrisons Foundation and enable them to ensure that the financial slalements comply wf(h the Companies Act 2006. They are also responsible for safeguarding the assets of The Morrisons Foundalion and hen for taking reasonable steps foi the pVention and detection of fraud and olher irregularities. The Trustees are responsible for thg main19nan¢è and integrity of The Morrisons Foun(J81ion's w8bsrte. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may drffer from legislation in olherjurisdKlions. yn Jone8, Tru8tee, on behalf of the TnJstee$ July 2022
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Indep Foundation
Members and Trustees of The Morrisons
Report on the audit of the financial statements
Opinion
-
give a true and fair view of the state of affairs as at 31 October 2021 and of its incoming resources and application of resources, including its income and expenditure, and cash flows, for the 39 week period then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice nd
-
have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 6 of The Charities Accounts (Scotland) Regulations 2006 (as amended).
We have audited the financia e sheet as at 31 October 2021; the Statement of financial activities, cash flow statement for the period then ended; and the notes to the financial statements, which include a description of the significant accounting policies.
Basis for opinion
Our responsibilities under 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 remained independent of the charitable company in accordance with the ethical requirements that are relevant to other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
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 concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.
In auditing the financial statements, we have concluded th in the preparation of the financial statements is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charitable com
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Members and Trustees of The Morrisons
Foundation (continued)
Report on the audit of the financial statements (continued)
Reporting on other information (continued)
In connection with our audit of the financial statements, 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 an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of 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 based on these responsibilities.
With respect to the Trustees' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 and The Charities Accounts (Scotland) Regulations 2006 (as amended) require us also to report certain opinions and matters as described below.
ort
the financial period for which the financial statements are prepared is consistent with the financial statements; and the Trustees
In addition, in light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we are required to report if we have i We have nothing to report in this respect.
Responsibilities for the financial statements and the audit
Responsibilities of the Trustees for the financial statements
As explained more fully in the Statemen , the trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for 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.
We have been appointed as auditors under section 44(1) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts 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 misst 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.
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.
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Foundation (continued)
Report on the audit of the financial statements (continued)
Responsibilities for the financial statements and the audit (continued)
Based on our understanding of the charitable company/industry, we identified that the principal risks of non-compliance with laws and regulations related to charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 6 incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to forgery or intentional misrepresentations, or through collusion. Audit procedures performed included:
-
Discussion with management and those charged with governance including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
-
Auditing the risk of management override of controls, including through identifying and testing manual adjustments and other balances for appropriateness; and
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial st
Use of this report
embers and trustees
as a body in accordance with section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and the Companies Act 2006 and regulations made under those Acts (regulation 10 of The Charities Accounts (Scotland) Regulations 2006 (as amended) and Chapter 3 of Part 16 of the Companies Act 2006) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Matters on which we are required to report by exception
Under the Companies Act 2006 and The Charities Accounts (Scotland) Regulations 2006 (as amended) we are required to report to you if, in our opinion:
-
We have not obtained all the information and explanations we require for our audit; or
-
Adequate and proper accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
-
C
-
The financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Foundation (continued)
Other required reporting (continued)
Entitlement to exemptions
Under the Companies Act 2006 we are required to report to you if, in our opinion, the trustees were not entitled to: take advantage of the small companies exemption from preparing a Strategic Report. We have no exceptions to report arising from this responsibility.
Andrew McIntosh (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Leeds
29 July 2022
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Statement of financial activities
for the 39 week period from 1 February 2021 to 31 October 2021
| Unrestricted funds |
Restricted funds |
39 week period ended |
52 week period ended |
|||
|---|---|---|---|---|---|---|
| Note | 31 October 2021 |
31 January 2021 |
||||
| restated | ||||||
| £ | £ | £ | £ | |||
| Incoming resources | ||||||
| Incoming resources from Donations | ||||||
| Income from sales of carrier bags | England | 2 | 983,962 | - | 983,962 | 2,116,511 |
| Income from sales of carrier bags | Scotland | 3 | 3,698 | 119,562 | 123,260 | 327,206 |
| Income from sales of carrier bags | Wales | 4 | 3,700 | 119,636 | 123,336 | 254,310 |
| Income from Clothing Banks | 5 | 263,492 | - | 263,492 | 256,493 | |
| Income from Charity Scratchcards | 6 | 20,292 | - | 20,292 | 41,810 | |
| Income from Car Parking fines | 7 | - | - | - | 689,332 | |
| Other income | 8 | 1,006,880 | - | 1,006,880 | - | |
| Total incoming resources | 2,282,024 | 239,198 | 2,521,222 | 3,685,662 | ||
| Resources expended | ||||||
| Charitable activities | 9 | (1,801,550) | (222,311) | (2,023,861) | (3,366,552) | |
| Administrative costs | 10 | (46,264) | - | (46,264) | (82,697) | |
| Governance costs | 13 | (1,000) | - | (1,000) | (1,000) | |
| Total resources expended | (1,848,814) | (222,311) | (2,071,125) | (3,450,249) | ||
| Net movement in funds | 433,210 | 16,886 | 450,097 | 235,413 | ||
| Balance brought forward at start of period | 1,962,656 | 559,001 | 2,521,657 | 2,286,244 | ||
| Balance carried forward at end of period | 2,395,866 | 575,887 | 2,971,754 | 2,521,657 |
The Morrisons Foundation has no recognised gains or losses other than the net movement in funds for the period. All results derive from continuing activities.
The notes on pages 14 to 19 form part of these financial statements.
11
The Morrisons Foundatio Annual report and financial statemgnts Règistared cttarity numbers 1160224 & SC045634 Company numbcr 09104284 31 OLLvbei 2021 Balance sheet As ai 31 October 202Y Nots 31 O¢tobor 2021 31 January 2021 Curr•nt assats Cash at bank and in h8nd 3,267,207 202,861 3,469.868 1.135.049 .788.804 Trade Debto Total eurr•nt a88•ts 2,901,653 Creditor¥: #mount• f•llirtg dué wlthln on• y•Ar N9t assets 15 1498.1141 2.971,754 127Q Q(*l 2,521,657 Thè funds of the Charity: RésirirteA funds-W8lps 16 378,322 197.566 2,395.866 2.971,76a 326.836 232,165 1,962,656 2.5?1 A57 Restricted lun¢Js- Scofand Unrestricted fijnds Total charity fund# 16 17 The finanGial 51alErnerili4 Q)11 Pdyes 11 10 19 were approvfyj by Ihe Board of Trustees on ils behaW by.. July 2022 ond signed on ed Martyn Jon6s. Trustee. on behalf of the TTUStees 29 July 2022 12
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Cash flow statement
for the 39 week period from 1 February 2021 to 31 October 2021
| 39 week period | 52 week period | |
|---|---|---|
| ended | ended | |
| 31 October 2021 | 31 January 2021 | |
| restated | ||
| £ | £ | |
| Net incoming resources | 450,097 | 235,413 |
| Movement in: | ||
| Trade debtors | 1,563,943 | (549,289) |
| Creditors | 118,118 | (816,822) |
| Net cash inflow/(outflow) from operating activities | 2,132,158 | (1,130,698) |
| Increase/(Decrease) in cash in the period | 2,132,158 | (1,130,698) |
| Openingcash at bank and in hand | 1,135,049 | 2,265,747 |
| Closing cash at bank and in hand | 3,267,207 | 1,135,049 |
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Notes to the financial statements
(forming part of the financial statements) for the 39 week period from 1 February 2021 to 31 October 2021
1 Accounting policies
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.
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 financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities and Trustee Investment (Scotland) Act 2005, regulation 6 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006. The Morrisons 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.
The financial statements have been prepared on a going concern basis and on a historical cost basis under the accruals concept other than as stated below.
Incoming resources
Income is recognised in the period in which entitlement occurs and can be measured with reasonable certainty. Income is deferred only when The Morrisons Foundation has to fulfil conditions before becoming entitled to it.
Resources expended
Expenditure on charitable activities is included on an accruals basis on notification to the relevant beneficiary. Governance costs relate to those costs incurred in connection with compliance with constitutional and statutory requirements and are recognised on an accruals basis.
Unrestricted funds
Unrestricted funds represent funds which are expendable at the discretion of the Trustees in furtherance of the objectives of The Morrisons Foundation. The use of the funds has not been restricted to a particular purpose by the donor or their representatives.
Restricted funds
Restricted funds consist of donations, legacies and grants received, for which the donor or grant giver has specified the purposes for which the resources can be utilised. Outgoing resources on restricted funds reflect the appropriate expenditure that has been charged to those funds. Restricted funds are disclosed by programme in the notes to the financial statements.
Taxation
The Morrisons Foundation is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of primary objectives, if these profits and surpluses are applied solely for charitable purposes.
Cash at bank and in hand
Cash at bank and in hand for cash flow purposes include cash-in-hand, cash-at-bank and cash invested in money markets.
Creditors
Trade and other creditors 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. After 6 months, the Charity reserves the right to withdraw the payment if payments details have not been provided in this period.
14
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Notes to the financial statements (continued)
(forming part of the financial statements)
for the 39 week period from 1 February 2021 to 31 October 2021
1 Accounting policies (continued)
Debtors
Accrued income is included at the best estimate of the amounts receivable at the balance sheet date.
2 Income from sale of carrier bags England
| Total | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 31 | October 2021 | 31 January 2021 | |||||||
| £ | £ | ||||||||
| Income | from | sale | of | carrier | bags | England | 983,963 | 2,116,511 |
Income from the sale of carrier bags England represents proceeds of the sale of single use carrier bags in Morrisons online business in England.
3 Income from sale of carrier bags Scotland
| Unrestricted | Restricted | Total | Total | ||
|---|---|---|---|---|---|
| Funds | Funds | 31 October 2021 | 31 January 2021 | ||
| £ | £ | £ | £ | ||
| Income bags |
from sale of carrier Scotland |
3,698 | 119,562 | 123,260 | 327,206 |
Income from the sale of carrier bags Scotland represents proceeds of the sale of single use carrier bags in Morrisons online business in Scotland.
Restricted funds the Scottish Parliament stipulates that income from the sale of carrier bags should be used to benefit causes within Scotland. The financial statements take a prudent assumption that all Scottish carrier bag income will be used to benefit Scottish causes.
4 Income from sale of carrier bags Wales
| Unrestricted | Restricted | Total | Total | ||
|---|---|---|---|---|---|
| Funds | Funds | 31 October 2021 | 31 January 2021 | ||
| £ | £ | £ | £ | ||
| Income from sale of carrier bags Wales |
3,700 | 119,636 | 123,336 | 254,310 |
Income from the sale of carrier bags Wales represents proceeds of the sale of single use carrier bags in Morrisons online business in Wales.
Restricted funds the Welsh Assembly stipulates that income from the sale of carrier bags should be used to benefit causes within in Wales. The financial statements take a prudent assumption that all Welsh carrier bag income will be used to benefit Welsh causes.
15
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Notes to the financial statements (continued)
(forming part of the financial statements)
for the 39 week period from 1 February 2021 to 31 October 2021
5 Income from Clothing Banks
| 5 Income from Clothing Banks | |||
|---|---|---|---|
| Total | Total | ||
| 31 | October 2021 | 31 January 2021 | |
| £ | £ | ||
| Income from ClothingBanks | 263,492 | 256,493 |
Income from Clothing Banks represents income from 340 (31 January 2021: 292) clothing banks located in Morrisons car parks.
6 Income from Charity Scratchcards
| 6 Income from Charity Scratchcards | |||
|---|---|---|---|
| Total | Total | ||
| 31 | October 2021 | 31 January 2021 | |
| £ | £ | ||
| Income from CharityScratchcards | 20,292 | 41,810 |
This income represents a 50% split of the commission (net of prizes) from the sale of Morrisons charity scratchcards.
7 Income from Car Parking Fines
| 7 Income from Car Parking Fines | |||||
|---|---|---|---|---|---|
| Total | Total | ||||
| 31 | October | 2021 | 31 | January 2021 | |
| £ | £ | ||||
| Income from Car ParkingFines | - | 689,332 |
This income represents all car parking fines levied in relation to Morrisons car parks by third parties net of the maintenance and electricity costs of the car parks. There is an underlying agreement between Morrisons and the Trustees, whereby a one-off deduction of £300,000 occurs each year, to account for the electricity and staff costs of running the car parks.
8 Other income
| 8 Other income | ||
|---|---|---|
| Total | Total | |
| 31 October 2021 | 31 January 2021 | |
| £ | £ | |
| Other income | 6,880 | - |
| Income from Wm Morrison Supermarkets Limited | 1,000,000 | - |
| 1,006,880 | - |
This income represents all other income into The Morrisons Foundation.
In the prior year, as a result of the increased plastic bag income during the COVID-19 pandemic, Wm Morrison Supermarkets Limited remitted an increased £2.6m during the period in place of the annual £1m donation. This year, the agreed donations of £1m resumed.
16
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Notes to the financial statements (continued)
(forming part of the financial statements) for the 39 week period from 1 February 2021 to 31 October 2021
9 Charitable activities
All charitable activities were charitable donations. During the period, The Morrisons Foundation made 426 (2021: 579) donations to charitable causes.
The Morrisons Foundation made grants of £1,655,680 (31 January 2021: £3,042,129) and match funding donations of £370,081 (31 January 2021: £357,007) in the period. All monies were awarded to institutions.
An overview of grant funding for the periods ending 31 October 2021 and 31 January 2021 are detailed below:
| 31 October 2021 | 31 January 2021 | |
|---|---|---|
| % | % | |
| Health (Hospice Care, specialist equipment, support groups) | 47 | 24 |
| Social Investment (Community transport, foodbanks, building refurbishments) |
28 | 50 |
| Education (Reading support, Employment programmes, special needs schools) |
10 | 10 |
| Other (Search and rescue, mentoring support, support for carers) | 9 | 14 |
| Arts and Culture (Community choirs, creative arts, music in hospitals) | 6 | 2 |
| 100 | 100 |
10 Administrative costs
| 10 Administrative costs | |||
|---|---|---|---|
| Total | Total | ||
| 31 | October 2021 | 31 January 2021 | |
| £ | £ | ||
| Administrative costs | 46,264 | 82,697 |
Administrative costs for the period included staff costs, professional legal advice, design agency work and other sundry administration fees.
11 Headcount
| 11 Headcount | |||||||
|---|---|---|---|---|---|---|---|
| Total | Total | ||||||
| 31 | October | 2021 | 31 | January | 2021 | ||
| Headcount | 0 | 0 |
17
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Notes to the financial statements (continued)
(forming part of the financial statements)
for the 39 week period from 1 February 2021 to 31 October 2021
12 Employee costs
There are no employees of The Morrisons Foundation (31 January 2021: nil). All staff costs are charged through administrative costs in note 10.
13 Governance costs
| 13 Governance costs | |||
|---|---|---|---|
| Total | Total | ||
| 31 | October 2021 | 31 January 2021 | |
| £ | £ | ||
| Audit fee | 1,000 | 1,000 |
None of the Trustees received any remuneration or reimbursement of expenses during the period in respect of their services to The Morrisons Foundation.
14 Trade debtors
| Total | Total | ||
|---|---|---|---|
| 31 | October 2021 | 31 January 2021 | |
| £ | £ | ||
| Trade debtors | 202,661 | 1,766,604 |
15 Creditors: amounts falling due within one year
| 15 Creditors: amounts falling due within one year | |||
|---|---|---|---|
| Total | Total | ||
| 31 | October 2021 | 31 January 2021 | |
| £ | restated | ||
| £ | |||
| Accruals and deferred income | 498,114 | 379,996 |
Accruals include grant and match funding committed by The Morrisons Foundation but not paid at the period end.
18
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 31 October 2021
Notes to the financial statements (continued)
(forming part of the financial statements)
for the 39 week period from 1 February 2021 to 31 October 2021
16 Restricted funds
| Balance at 1 | Income | Expenditure | Balance at | |
|---|---|---|---|---|
| February 2021 | 31 October 2021 | |||
| £ | £ | £ | £ | |
| Wales | 326,836 | 119,636 | (68,150) | 378,322 |
| Scotland | 232,165 | 119,562 | (154,161) | 197,566 |
| 559,001 | 239,198 | (222,311) | 575,888 |
For details on the purpose and trust law restrictions see notes 3 and 4.
17 Reconciliation of movements in funds
| Unrestricted funds | Restricted | Total | Total | |
|---|---|---|---|---|
| Funds | 31 October 2021 | 31 January 2021 | ||
| £ | £ | £ | £ | |
| At the beginning of the period | 1,962,656 | 559,001 | 2,521,657 | 2,286,244 |
| Net movement in funds in the period | 433,210 | 16,887 | 450,097 | 235,413 |
| At the end of the period | 2,395,866 | 575,888 | 2,971,754 | 2,521,657 |
18 Related party transactions
There were no related party transactions during the period.
19 Prior year adjustment
The Charity's charitable grant making policy states that the Charity has the right not to reissue a cheque if it is not cashed within six months of the date of the cheque, and for electronic payments, has the right to withdraw support if sufficient information to enable an electronic payment is not provided within six months of the approval of a grant. It has been identified that certain cash and payable balances should be written off as a credit to the statement of financial activities as these are aged beyond the six month period set out in the Charity's policy. Previously these aged balances were included as a reconciling item in cash and cash equivalents (issued but unpresented cheques) and in payables.
The impact on the balance sheet and statement of financial activities for the period ended 31 January 2021 is as follows:
| As previously | Adjustments | As restated | |
|---|---|---|---|
| reported | |||
| £ | £ | £ | |
| Cash and cash equivalents | 993,124 | 141,925 | 1,135,049 |
| Trade Payables | (493,405) | 113,409 | (379,996) |
| Total funds | 2,266,323 | 255,334 | 2,521,657 |
This adjustment would have impacted the period ending 2 February 2020 and the brought forward net assets would have increased by £255,334 to £2,286,244.
19