The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 For the 52 weeks ended 30 October 2022
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 30 October 2022
| 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 30 October 2022
Reference and administrative information
Charity name
The Morrisons Foundation
Trustees
Martyn Jones Independent Chair of Trustees Jonathan Burke David Scott Sarah Wilkinson Guy Mason Independent Trustee Kate Bratt-Farrar Independent Trustee Charles Dacres Independent Trustee Rebecca Singleton (resigned 7 September 2022)
Senior staff members
Joseph Clark-Bland 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 30 October 2022
Trustees’ Report for the period ended 30 October 2022
The Trustees present their Trustees’ Annual Report and audited financial statements of The Morrisons Foundation (“the Charity”) for the 52 week period ended 30 October 2022.
Accounting reference date
These financial statements represent the 52 week period to 30 October 2022. In the comparative period the Charity changed its accounting reference date from 31 January to 31 October. Consequently, the comparative period covered the 39 week period to 31 October 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.
Small company provisions
The Charity has taken the exemption from preparing a strategic report in accordance with section 414B of the Companies Act 2006.
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’ view 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:
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By match funding the money raised by Wm Morrison Supermarkets Limited (‘Morrisons’) colleagues for charities (‘Match funding programme’); and
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By awarding grants to charities which help to make a positive difference in local communities (‘Grant programme’).
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
The Morrisons Foundation’s grant programme is designed to support charity projects that 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.
The Morrisons Foundation’s grant making policy 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 Charity Commission’s general guidance on public benefit when reviewing The Morrisons Foundation’s grant making 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.
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 30 October 2022
Trustees’ Report for the period ended 30 October 2022 (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 30 October 2022, The Morrisons Foundation had net assets of £2,490,592 (31 October 2021: £2,971,754) with £2,060,066 (31 October 2021: £2,395,866) of this amount relating to unrestricted funds.
Principal achievements during the period
The period covered by this report and attached financial statements is 1 November 2021 to 30 October 2022. During this period, the activity of The Morrisons Foundation comprised the receipt of income from Morrisons of £2,923,961 (31 October 2021: £2,521,222), the making of grants of £2,809,492 (31 October 2021: £1,655,680), and match funding donations of £557,440 (31 October 2021: £370,081).
Principal funding sources
Income is received from Morrisons and falls into the following categories:
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All income net of VAT arising from the sale of single-use carrier bags from Morrisons online business;
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A proportion of income from the sale of returnable carrier bags from Morrisons online business;
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A proportion of income from clothing banks located in Morrisons car parks;
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A proportion of income from Morrisons charity scratch-cards;
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A proportion of income from car parking fines levied in Morrisons car parks; and
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A proportion of other income from Morrisons in the form of donations.
No car parking income has been generated in the prior period due to the shorter accounting period and change in year end, meaning the required threshold was not met.
Fundraising
The Morrisons Foundation is funded by donations from Wm Morrison Supermarkets Limited, 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 The Morrisons Foundation’s 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 30 October 2022
Trustees’ Report for the period ended 30 October 2022 (continued)
Reserves
The Morrisons Foundation’s Reserves Policy reflects the Trustees’ consideration of a level of reserves which ensures 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 £2,490,592 (31 October 2021: £2,971,754) 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 are at least £500,000 in line with this policy.
Structure, governance and management
The Morrisons Foundation was incorporated as a private 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 The Morrisons Foundation’s direction and affairs lies with the Trustees. The articles of association of 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 The Morrisons Foundation’s policies. New Trustees meet with the Chairman of the board of Trustees. Training needs are assessed and met as necessary.
At the quarterly Trustees’ meetings, the 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’s activities are delegated to The Morrisons Foundation specialist.
The Trustees engage the services of an external legal advisor to ensure that decisions regarding The Morrisons Foundation’s strategy and activities comply with charity law requirements. The legal advisors also conduct ad-hoc reviews of The Morrisons Foundation’s management, policies and procedures.
All Trustees give their time freely and no Trustee remuneration or expenses were paid in the period.
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Thè Morrlsons FOd810Th kniual report and fffianual stslements Regislered tharity nwnbers 1160224 & sco434 CompaThy nUmr 09104284 30 October2022 Trustees, Report for the period ended 30 October 2022 (contlnued) Rlsk managoment The Trustees have wnsidertrj major risks to wl¥ch The Morrlsons Foundation is exposed and have establlshed systems and proc&Jures lo manage tse rK%ks. The Trustees believe thal all major risks are beirJ mitigated. The Trustees have considered The l4kniss Foundalion's o14ectsves. mission atml strategy, the scale of its operations and any intemal or exlemal factors whth may pret a risk to its financial secwtty. rewtstion. beneficial$ or g¢ernance. The Morrisons Foundation's risk management sets out the proc8ss by which potential rkS we identified. assessed. managed arKI revie¥d. and the risk registw provides a top-1 view of I)se risks. Poll¢ies and controls have been implemented to mr¥mise the risk of or Other misapF41c2ti¢ ol Th8 Morrisons Foundation's funds. These are Tegularly reviewed and upjated as rewired. The approach to risk managemenl is revp44eO by the Tntstees annualjy. This indudes a full review of Ihe risk management policy and risk register. Relatgd partlès The Morrisons Foundation tses income from. txrt is WKnt of morris(S. The Trustees take air deasions in the best inlgrests of The Morrisons Foundation and its benefleS and in furtherance of ils charitable oblectives. stst•m•nt of publlc bOnlt The Trustees confimi thal The Morrisons Foundation ¢omplEd wilh the Charitses Act 2011 in the period and that all grants have been made, taking into account Charity Commission's guidance on public benefit. only to registered charities. Detsils of 5ignrflI activiiies undertaken in are wtJr6hed in The Morrisons FoUndatn Annual Review, which is available at www.morrlsiSlourKjal.Com. Dlsclosure of Inlomiatlon to tho audltorn The Trustees who held offi¢e at the dale of apwoval of this Truslees, reFXYt confwm thaL $0 far as they are aware. there Is no relevant audit information of whith The Morrtsons FOu[a'S audrtors are unaware aThJ the Trustees have taken al the steps they ought lo have taken as Trustees to make Ihemsefves aw of relgvant aTrt information. rtyn Jones, Trte9, on beh8W ofthe TrleeS 2 7July 2023
The Mwfi¥ons Foundats"c Annual rewt and finartial 5tslemenls Registered chaiity numbers 1160224 & SC045634 CO[anY number 09104284 30 October 2022 Statement of Trustees, responslbllltles The Trustees (Wt are also theCt of The mrI$M$ Foundati for the wrp)ses of company law) are responsible for preparing the Truste8s'Annual R8F¥Xt and the financ4d statements in a¢dawlth applicatle law and regulation. CoMpY law requires the trustees lo prepare financ#al statements for finan(ial year. Under ihat law the trustees have prepared the finanaal ststemenls w) accordance wrth Unrted Kirydom Accounting Standards. comprising FRS 102 °The Financial Rewrting SlarKlard atplicable in the UK Republi¢ of Irelan. and applicable law (United Kingdom Generally Accepled AUnty'ng Practi). Under company law the iruees must rnt approve the fiarla1 statements unless they are satisfied that they give a true and far view of the stste of th8 affairs of the Charitab wnpany and of the incoming resources and application of resources. including income and expeThJiiure. of the charitable company for that period. In preparing these financial statements, the trustees are required to: select suitable a¢¢ounling policies aTrJ then apply them consistently.. observe the methLKls in the stat1 of Recommended Acco1 and RertIng by Charities12019)' make jLKlgments and estimates that ¥e reasonatde and State whether applicable UK Ac(J)untYig StarKlwds, comprising FRS 102, have been followed. sleCt to any material thpartures disclosed and eXplned in the financial statements" and prepare the fin¢TraI ststements on the goirwJ c¢)ncem basis unless tl is inapwopriate to presume that the tharitable company will corrtinue bus. The trustees are responsible for kpIng adèquale a¢counlirvJ re¢d$ that are sufficient to show and explaln Ihe charitsble company's transactions and thsch)se with reasonable accJJracy al any time the financial position of the charitsbfe company and enable them to enswe that the financial ststemenls comply with the Companies Act 2CK)6. the Charities and Trustee Invethent IScotland} Act 2C()5 and the Charities A¢¢ounts Iscoliandl Regulations 2006 (as amended). They are aso respOnbIe for safeguarding the assets of the charitable Company hence for ting reasonable steps for the wevention and detection of fraud and (4her irregularities. art Jon8s. Trustee. tehalf of Trustees 27July 2023
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 30 October 2022
Independent auditors’ report to the Members and Trustees of The Morrisons Foundation
Report on the audit of the financial statements
Opinion
In our opinion, The Morrisons Foundation’s financial statements (the “financial statements”):
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give a true and fair view of the state of the charitable company’s affairs as at 30 October 2022 and of its incoming resources and application of resources, including its income and expenditure, and cash flows, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and
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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 financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 30 October 2022; the statement of financial activities and the cash flow statement for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ 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 remained independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our 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 significant doubt on the charitable company’s ability to continue as a going 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 that the trustees’ use of the going concern basis of accounting 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 company’s ability to continue as a going concern.
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 auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements 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 30 October 2022
Independent auditors’ report to the 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.
Trustees’ Report
In our opinion, based on the work undertaken in the course of the audit the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Trustees’ Report has been prepared in accordance with applicable legal requirements.
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 identified any material misstatements in the Trustees’ Report. 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 Statement of Trustees’ Responsibilities, 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 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.
Auditors’ responsibilities for the audit of the financial statements
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 misstatement, whether due to fraud or error, and to issue an auditors’ 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.
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 30 October 2022
Independent auditors’ report to the Members and Trustees of The Morrisons 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 8 of The Charities Accounts (Scotland) Regulations 2006 (as amended). We evaluated management’s 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:
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Discussion with management and those charged with governance including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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Auditing the risk of management override of controls, including through identifying and testing manual adjustments and other balances for appropriateness; and
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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 statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the charitable company’s members 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:
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We have not obtained all the information and explanations we require for our audit; or
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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
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Certain disclosures of trustees’ remuneration specified by law are not made; or
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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 30 October 2022
Independent auditors’ report to the Members and Trustees of The Morrisons 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.
Matthew Kaye (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Leeds
27 July 2023
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 30 October 2022
Statement of financial activities
for the 52 week period from 1 November 2021 to 30 October 2022
| Unrestricted | Restricted | 52 week | 39 week | ||
|---|---|---|---|---|---|
| funds | funds | period ended | period ended | ||
| Note | 30 October | 31 October | |||
| 2022 | 2021 | ||||
| £ | £ | £ | £ | ||
| Incoming resources | |||||
| Incoming resources from Donations | |||||
| Income from sales of carrier bags – England | 2 | 1,476,992 | - | 1,476,992 | 983,962 |
| Income from sales of carrier bags – Scotland | 3 | 3,221 | 104,162 | 107,383 | 123,260 |
| Income from sales of carrier bags – Wales | 4 | 3,222 | 104,173 | 107,395 | 123,336 |
| Income from Clothing Banks | 5 | 380,722 | - | 380,722 | 263,492 |
| Income from Charity Scratchcards | 6 | 38,905 | - | 38,905 | 20,292 |
| Income from Car Parking fines | 7 | 808,094 | - | 808,094 | - |
| Other income | 8 | 4,470 | - | 4,470 | 1,006,880 |
| Total incoming resources | 2,715,626 | 208,335 | 2,923,961 | 2,521,222 | |
| Resources expended | |||||
| Charitable activities | 9 | (3,013,235) | (353,697) | (3,366,932) | (2,023,861) |
| Administrative costs | 10 | (38,191) | - | (38,191) | (46,264) |
| Governance costs | 13 | - | - | - | (1,000) |
| Total resources expended | (3,051,426) | (353,697) | (3,405,123) | (2,071,125) | |
| Net movement in funds | (335,800) | (145,362) | (481,162) | 450,097 | |
| Balance brought forward at start of period | 2,395,867 | 575,887 | 2,971,754 | 2,521,657 | |
| Balance carried forward at end of period | 2,060,067 | 430,525 | 2,490,592 | 2,971,754 |
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
Th• Mtirrisons Fowd8 Amual rwt arbJ fin•nclal stslements RegBlwed charty rwmD&rs 11fj0224 & SC045834 Company numt)er09104264 30 O¢Ic4r 2022 Balance sheftt As 8130 Odob8r2072 3(1 O¢tob•r 2022 31 Crtobor 2021 Curr•ftt a•èts Ca8h at ond in h¥nd Ttade debbrs T?tal curr•nt B••lY 2237,115 811798 3.047,913 3.267207 202,e61 3.469,868 14 Crndltorn: llfAllll• f•lWn• wlthln ymr 15 1557,3211 2A90.692 1498.1141 2.971,754 Th• frJnd• of tho Chailty: Reslnctsd ruth- Wales ftesknc FuThJs- ScoUaThl Unrestricted fvnds Total Crtty luTrd• 16 339,851 378,322 197 s86 2.395 866 2.971.754 17 2.060,068 149Q892 The financi818tatements on pages 11 to 19 wwe appr¢r*d by the 8o¥d of TTUSte8s on 27July 2023 and svJned on ils btrh8W by. artyn J¢)nes. Trustee. on b8hall Tnthes 27JY 2023 12
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 30 October 2022
Cash flow statement
for the 52 week period from 1 November 2021 to 30 October 2022
| 52 week period | 39 week period | |
|---|---|---|
| ended | ended | |
| 30 October 2022 | 31 October 2021 | |
| £ | £ | |
| Net incoming resources | (481,162) | 450,097 |
| Movement in: | ||
| Trade debtors | (608,137) | 1,563,943 |
| Creditors | 59,207 | 118,118 |
| Net cash (outflow)/inflow from operating activities | (1,030,092) | 2,132,158 |
| (Decrease)/increase in cash in the period | (1,030,092) | 2,132,158 |
| Openingcash at bank and in hand | 3,267,207 | 1,135,049 |
| Closing cash at bank and in hand | 2,237,115 | 3,267,207 |
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 30 October 2022
Notes to the financial statements
(forming part of the financial statements)
for the 52 week period from 1 November 2021 to 30 October 2022
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 Trustees have concluded that The Morrisons Foundation has adequate resources to continue as a going concern for the next 12 months, and accordingly 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 The Morrisons Foundation’s 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 six 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 30 October 2022
Notes to the financial statements (continued)
(forming part of the financial statements)
for the 52 week period from 1 November 2021 to 30 October 2022
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
| 2 Income from sale of carrier bags – England | |||
|---|---|---|---|
| Total | Total | ||
| 30 | October 2022 | 31 October 2021 | |
| £ | £ | ||
| Income from sale of carrier bags – England | 1,476,992 | 983,963 |
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 | 30 October 2022 | 31 October 2021 | |
| £ | £ | £ | £ | |
| Income from sale of carrier bags – Scotland |
3,221 | 104,162 | 107,383 | 123,260 |
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 an 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 | 30 October 2022 | 31 October 2021 | |
| £ | £ | £ | £ | |
| Income from sale of carrier bags – Wales |
3,222 | 104,173 | 107,395 | 123,336 |
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 an 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 30 October 2022
Notes to the financial statements (continued)
(forming part of the financial statements)
for the 52 week period from 1 November 2021 to 30 October 2022
5 Income from Clothing Banks
| 5 Income from Clothing Banks | |||
|---|---|---|---|
| Total | Total | ||
| 30 | October 2022 | 31 October 2021 | |
| £ | £ | ||
| Income from Clothing Banks | 380,722 | 263,492 |
Income from Clothing Banks represents income from 543 (31 October 2021: 340) clothing banks located in Morrisons car parks.
6 Income from Charity Scratchcards
| 6 Income from Charity Scratchcards | |||
|---|---|---|---|
| Total | Total | ||
| 30 | October 2022 | 31 October 2021 | |
| £ | £ | ||
| Income from Charity Scratchcards | 38,905 | 20,292 |
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 | ||
| 30 | October 2022 | 31 October 2021 | |
| £ | £ | ||
| Income from Car Parking Fines | 808,094 | - |
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. In the prior year this deduction threshold was not met and therefore no income was received.
8 Other income
| 8 Other income | ||
|---|---|---|
| Total | Total | |
| 30 October 2022 | 30 October 2021 | |
| £ | £ | |
| Other income | 4,470 | 6,880 |
| Income from Wm Morrison Supermarkets Limited | - | 1,000,000 |
| 4,470 | 1,006,880 |
This income represents all other income into The Morrisons Foundation.
16
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 30 October 2022
Notes to the financial statements (continued)
(forming part of the financial statements)
for the 52 week period from 1 November 2021 to 30 October 2022
9 Charitable activities
All charitable activities were charitable donations. During the period, The Morrisons Foundation made 717 (2022: 426) donations to charitable causes.
The Morrisons Foundation made grants of £2,809,492 (31 October 2021: £1,655,680) and match funding donations of £557,440 (31 October 2021: £370,081) in the period. All monies were awarded to institutions.
An overview of grant funding for the periods ending 30 October 2022 and 31 October 2021 are detailed below:
| 30 October 2022 | 31 October 2021 | |
|---|---|---|
| % | % | |
| Health (Hospice Care, specialist equipment, support groups) | 47 | 47 |
| Social Investment (Community transport, foodbanks, building refurbishments) |
0 | 28 |
| Education (Reading support, Employment programmes, special needs schools) |
13 | 10 |
| Other (Search and rescue, mentoring support, support for carers) | 40 | 9 |
| Arts and Culture (Community choirs, creative arts, music in hospitals) | 0 | 6 |
| 100 | 100 |
10 Administrative costs
| 10 Administrative costs | |||
|---|---|---|---|
| Total | Total | ||
| 30 | October 2022 | 31 October 2021 | |
| £ | £ | ||
| Administrative costs | 38,191 | 46,264 |
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 | ||||||
| 30 | October | 2022 | 31 | October | 2021 | ||
| Headcount | - | - |
17
The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 30 October 2022
Notes to the financial statements (continued)
(forming part of the financial statements)
for the 52 week period from 1 November 2021 to 30 October 2022
12 Employee costs
There are no employees of The Morrisons Foundation (31 October 2021: nil). All staff costs are charged through administrative costs in note 10.
13 Governance costs
| 13 Governance costs | |||
|---|---|---|---|
| Total | Total | ||
| 30 | October 2022 | 31 October 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. The audit fee is paid on behalf of the charity by Wm Morrison Supermarkets Limited (31 October 2021: recharged to the Foundation).
14 Trade debtors
| 14 Trade debtors | |||
|---|---|---|---|
| Total | Total | ||
| 30 | October 2022 | 31 October 2021 | |
| £ | £ | ||
| Trade debtors | 810,798 | 202,661 |
15 Creditors: amounts falling due within one year
| 15 Creditors: amounts falling due within one year | |||
|---|---|---|---|
| Total | Total | ||
| 30 | October 2022 | 31 October 2021 | |
| £ | £ | ||
| Accruals and deferred income | 557,321 | 498,114 |
Accruals include grant and match funding committed by The Morrisons Foundation but not paid at the period end.
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The Morrisons Foundation Annual report and financial statements Registered charity numbers 1160224 & SC045634 Company number 09104264 30 October 2022
Notes to the financial statements (continued)
(forming part of the financial statements)
for the 52 week period from 1 November 2021 to 30 October 2022
16 Restricted funds
| Balance at 1 | Income | Expenditure | Balance at | |
|---|---|---|---|---|
| November 2021 | 30 October 2022 | |||
| £ | £ | £ | £ | |
| Wales | 378,322 | 104,173 | (142,837) | 339,658 |
| Scotland | 197,566 | 104,162 | (210,860) | 90,868 |
| 575,888 | 208,355 | (353,697) | 430,526 |
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 | 30 October 2022 | 31 October 2021 | ||
| £ | £ | £ | £ | |
| At the beginning of the period | 2,395,866 | 575,888 | 2,971,754 | 2,521,657 |
| Net movement in funds in the period | (335,800) | (145,362) | (481,162) | 450,097 |
| At the end of the period | 2,060,066 | 430,526 | 2,490,592 | 2,971,754 |
18 Related party transactions
There were no related party transactions during the period.
19