Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 Registered Charity Number: 1161568 THE MERCHANT TAYLORS, FOUNDATION TRUSTEES, REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023
.1 i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 INDEX Trustees, Report Objectives and Activities Achievement5 and Perforniance Financial ReeW 12 Future Plans 14 Structure, Covemance and Management 15 RefenCe and Administrative Details 16 Statement of the Trustees, Responsibilities 17 Jndependent Auditors. Report 18 Statement of Financial Activities 22 Balance Sheet 23 Statement of Cashflows 24 Accounting Policies 25 Notes to the Financial Statements 27
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 The Trustees submit their report and financial statements for the year ended 31 luly 2023. The financial statement5 comply with Accountiiig and Reporting by Charitie5'. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland Icharities SORP IFRS10211 and with the Charities Act 2Ql l. OBJECTIVES AND AIVITIEs Charitable ob ects The objects of the Charity are.. 11 to advance the education of the public generally and in particular, but not limited to, founding educational e5tablishment5' and a55i5tin%schools, univer5ittes and other educational bodies in uch ways as the Charity TrLJStee8 think fi.t, including.. the provision of bursarieg, gcholarships, fellowships, lectureships and prizes,. b. the improvement of amenities,. c. the reduction of fees,. and d. the provision of free education. 21 such other objects and Plirposes in any part of the ivorld as are exclusively charitable in accordance with the laws of England andWale5. Aim iv The Charity's srant-makins focus is improvins lives.. across the counlry, priTnarily tliroush education, and in London. These aims are explained in greater detail beloiv. During the reporting period, the Charity decided to adopt the public-facing branding of 'Improving Liveb Acrobb the Country, and 'Jmprons Lives in London, to replace 'education' and 'tackling di8advantase' respectively. The statutor}, report and accounts continue to refer to 'disadYantage' when referring to the Relief of Disadvantage Restricted Fund. sincethe legal restriction on thatFund includes the word'disadvantage,. The Charity is the main fundraising Eocu5 for members and apprentices of The Merchant Taylors. Company, a City of London livery company. Example impact and volunteering stories and statistics can be found in the Merchant Taylors, FLiundation Review 2022-2023 {'the fvrtF Rew,}, available on the website of the Merchant Taylors, Company. Im rovin lives across the coun The Charity aim5 to.. facilitate the iEst possible leamins opportunities, egpetially fDr disadvantaged young pÉY)ple pr(Imote 'whole-person education,
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 engage members of the Merchant Taylors, Company in educ¢ltion, through volunteering and other gi& for the benefit of students at the educational institutions with which the Company is a_8f nciated. Its strategy in this area is to make gr¢ints, and promote extra-curricular opportunities through volunteering by Company members. Gr¢2ntS ¢ire primarily for the benefit of young people ¢lt the schools, educational institutions and education-related or offender rehabilitation charitses with which the Company has links= City & Guilds Foyle College ILondonderryl Guildhall School of Music and Drama (London) London Niusic Fund Mansion House Scholarship Scheme Merchant Taylors, School {Crosbyl erchant Taylors, Oxfordshire Academy Trust Nlercl)ant Taylots, Prep (Northwoodl Nlerchant Taylots, School INorthwoodl No Going Back Norland College (Bath) Pembroke College (Cambridge} St Catharine's College {Cambrid8el St Helen'£ School (Northwood} St john's College (Oxford) St lohn's School (Northwoodl St Paul's Cathedral School (Westmingterl St Savitjur's & St Olave's Schix)l {&)uthwarkl Slade School of Fine Art (London) The King's School (Macclesfieldl The Smallpeice Trust IArkWrit Scholarships) Wolverhampton Gramtnar School The significant activities undertaken to further the strategy in the reportin8 period were as follows. The Charity reviewed its grant giving in this area, resulting in the following funding streams:
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 l. Early Years, recognizing that a child's development in its fi.rst weeks and months are crucial for wellbeing and learning throughout life, and that early development depends to a great extent on the wellbeing and confidence of the adults around the child. 2. Enrichmen¢ recognizing that a longer term result of the Covid-19 pandemic is many losse_8 in the broad area of school pupils, enrichment- opportunities to learn, and to loiE leaniin& beyond tlie curriculum. These losses arose partly from students, decreasing confidence in being open to opportunities and partly from schcK)Is' lack of funds to PrOde such opportunities. Based on feedback from schools. the Charity split this strand of its WOTk into sub-streams.. Health and Wellbeing Prizes STEAM (science, technology, engineerin& arts and maths) Next Steps Textiles & Tailorin8 Unallocated 3. Buysaries & Scholarships 4. Reducing Reoffendin& recognizing that education and employment can have a very positive impact on redLJcing rcof£ending rates. 5. Covid Education Impact, this stream continued from previous years, recognizing the need to support recovery from the effect of the Covid-19 pandemic on the Company's associated $Ch()IS and educational institutions. The Charity continued the "Engage with Education" scheme, through which Company members volunteer to offer internships, university-choice help, expert-led extra-curricular activities, etc., schools and their pupils and opportunities to offenders. The Trnstees, polity on 8rant.makin8 to improve lives acr055 the county 15 that.. Applications for its major funding streams are solicited from the schools, institutions and charities with which the Company has links, and are assessed in a competitive process. A Small amouiitof fundins is Set aside to support occasioiial u11501icited applications from other institutions. Application5 for tsan5formatioiial bursarie5 and scholarship5 are 501icited froTn the independent schools with which the Company has links. Application5 for 'hardbhip' fundiijg are solicited from stat&maintained gchi)olb with which the Company has links. The Charity measures success in improving lives across the country by whether the grant achieves what the applicant said it would at the point of application. The application process requires the applicant to state the expected impact if a grant is aiyarded, unless the impact is self-explanatory. The Charity measures succe55 in the Engage with Education volunteering Scheme by whether the volunteeIing activitieb provide valuable opportunities to students and ofknders which they would be unlikely to have if the scheme did not exist.
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 in inL The Charity aims to improve liv in the London boroughs of Hackney, Lewisham, Southwark and Tom'er Hamlets. This furthers its charitable object of ".such other objects and purposes in any part of the world a.s are exclusively charitable in accordance with the laws of England and Wales." During the reporting period, its strategy in this area was to make grants to charities exclusivel}, or very heavily focu55ed on those borou5. The aim is to change lives through fiinding other charities which are already well placed to deliver relevant serlryces or projects in those areas. The Trnstees, policy on ant-MakIng in this area is.. To have a handfulof long-tem collaborations under a Proactive Crants Scheme, for the benefit of Lewisham and/or Southm'ark. It is not possible to apply for fundin8 under this Scheme since grants are at the Trustees, initiative, not in response to applications. To operate a reactive Small Grants Scheme for charities operating exclusively in the London boroughs of Hackney, Lewisham, Southwark or Tower Hamlets. Applications nTrust be made via an online form, and charities should not apply without reading the detailed guidance on the web51te of the Merchant Taylors, Company. The significant activities undertaken to Eurther the strategy in the reporting period were.. Entering into and continuing collaboration agreements which include significant grant- ndin& under the Proactive Scheme.. Depaul UK- work to prevent youth homelessness in SouthMTark and Lewisham Construction Youth Trust - a Lewisham Hub to expose young people aged 14-19 to opportunitie5 in the construction industry. Resources for Autism - to support young adults on the autism spectrum in Lewisham and Southwark Lewisham Music- tsi support music tuitim, and skills training and pathways to work in the creative industrie5, for }Toung people in Lewi5ham Continuing to participate in the One Solithwark coalition, supporting an innovative programme to proiryde )Toung people in Southwark with contacts, ktiow-how and Elding to prosress to meanin8ful careers. Grants to charities under the Small CTants Scheme and run-off multi-year grants under grant relationships taken oi'er Erom a sister charity which donated assets to the Charity in 2021. A summary can be found in Note 3 to the Financial Statements under'small Grants Scheme, and 'Other'. A Eull list of Small Grants recipients can be found in the MtF Review. The Charity Visits volunteering scheme involves Cotnpany members visiting charities M,hich apply for funds and reportin8 their findings back to the Charity, as part of the due diligence leadin8 UP to a decision whether to make a Small Grant. See 'Achievemen& and Performance, for further detail. The Charity measures success in its Small Grants Scheme by whether the grant achieves what the grantee said it would at the point of application. The grant-making process requires the grantee to state the expected impact if a grant is awarded.
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 The Charity measures success under its Proactive Scheme through key performance indicators and impact measures set out in the relevant collaboration asreement. The Charity measures sutces5 in the Charity Visits volunteering scheme by whether the due diligence report5 provided b}r the sItOrS significantly asslst thecharity in makins a dlSiOn on whether to grant funds, typically by obtaining answers to quebtions whicl) the Charity was left witli after considering the online application or by clarifying things which the applicant wrote in the application form. ial im tinT r Haml vi Fun The Charity aims to tackle the broad social repercussions of the pandemic through grant-making. The Charitys strategy. and Silf1¢artt actity undertaken pursuant to the strategy, was to continue its grant to The Feast Youth Project under the Designated Covid Fund. The Charity's partnership with The Feast arose wlien the impact of the pandemic on young people's mental health and wellbeing became apparent. The Feast assists young people with a vital issue for wellbeing and community cohesion in Tower Hamlets.. how to feel confident in one's own faith (or non-faithl identity while relating honestl}T but respectEully with people of other faiths. The Charity measures succes5 in its srant-makins from the Designated CoTrid Fund by whether the grant athieves what the grantee said it would during the assessment process, subject to any reasonable adjustments due to tlie COVtD-19 pandemic. The Charity's policy on grant-makins for the remainder of the Desi8nated cOa Fund is to spend down thc Fund under the existing grant relationship with The Feast Youth Project (subject to compliance with the ternTrs and conditions of 8rantl. hard hi The CharitlT aimed tn help those harde_st hit in Leivi8ham and SnuthwarL a% the cost OE living increased dramatically. The Charity's strategy, and significanl activity undertaken pursuant to the strategy was to make grants to Thell-placed charities w(Jrkin8 to address the issue in either bornug]. The Charity's policy was to make grants to charities either knoMTn to the Charit}, or to other well-informed funders with a focus on Southm'ark. an The Charity aims to make a limited nuinber of relatively small grants outside the grant PTogrammes explained aix)ve. Its stratesy is tn make these excliisively tn a number nf churches and other charities with historic links to the Merchant Taylors, Conipany. The $i1f1(ant activity during the financial period was to make 8rants to the grantees grouped as'various Grants under £IO,OOO' under the headRng'Otherf in Note 3 to the Financial Statements. tn most cases these grants are unrestricted and therefore can be used by the grant& foT any a¢tiTrity within its charitable objects. Accordingly, the Charity does not normally use a measure of success for this strand of grant-making. Jn the rare cases where the grant 19 foT a specific project, the ChaTity measures success by whether the 8rant achieves what the grantee said it would at the point when the grant was made.
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 The TrLiStees' policy on grant-making under this strand is that grants are only made to churches and other charities which have been identified as having historic links to the Nlerchant Taylors, Company, or in ver)T rare ca.8es t(J one-off causeg which the Charity of its own motinn has identified as having particular value. The Charity does not accept any applications or respond to any enquiries about the possibility of futiding from this Strand. Public benefit The Trustees confinn thatthey have complied with theduty in section 4 of the Charities Act 2011 to have dueregard to thecharity Commission's general guidance m publicbenefit,'Charities and Public Benefiy. ACHIEVEMENTS AND PERFORMANCE vin Liv un Early Years- £25,aoo. The key achievement was commis.8ioning a refjearch and feasibility-study to assumptions, identify saps in prO510n and show where future funding would have most impact. Enrichment- £192,430 Heéllth ujellbeing - Grants were awarded to the Company's associated schools for. Development of a cross-schools digital welliEing tharter A pilot'breakout, programme for vulnerable teenagers A peer mentoring scheme Sensory spaceslgardens Expert Speakers for a PHSE prosramme Iper50nal, social, health and economic) Talkins therapist provision Resources for special educational needs learner5. Prizes- grants MTere awarded to fund various school prize STE&W- 8rant5 were awarded to Speaker5 Trust. Smallpeice Trust and Authors Aloud to deliver activities benefitting pupils at the Companls associated schools Next Steps - grants were awarded for.. Piloting a Professional Recognition Award for Apprenticeships Intensive car*TS Support A slimmer school for PLJpils moving from primary to secondary A careers outreach programme building on an independentlstate schix)I parthership Textiles & Tailoriffg - grants were awarded.. To Makins for Change {reducing re-offendinsl to match mainly Muslim EITomen Erom To.er Hamlets with London College OE Fashion students and Nlaking for Change 'graduates' to design and make gaTments For rei'iew of an Apprenticeship Diploma in Bespoke Tailoring To the UK Fashion and Textile Association's Careets Campaism.
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 Other- grants were awarded for.. The inaugural Gresham Competition, organized by Gresham College to build oracy skills amongst Year 12-13 students across the UK Sponsoring the Merchant Taylors, Girls, SchLx)I Choir to attend the Europcan Choir Games A virtual EnnLring Course for Year 11-9 pupils in the Companls associated sthools An'Everest at 70, event for young people across the country, hosted by the Himalayan Trust UK Bursaries & Scholarships - £91,150. Alongside the bursaries and scholarships which the Charity has been funding for some years in school associated with the Merchant Taylors, Company and across various City of London institution5, several new tertiary-level awards were besun. Together, this resulted in around 25 students acr055 the county being supported in their education. Thi5 included= Thr Transformational Bursaries lone each at King's School Macclesfield. Merchant Taylors, Girls, School in Crosby and Wolverhampton Grammar School) A Merchant Taylors, Chorister at St Paul'5 Cathedral School 5 young scholars OE the London Miisic Fund Several young Londoners supported through the new Lord Mayorfs Green Bursary Award A group of intemational postgraduate students through the Mansion House Scholarship Scheme A Coldsmith's Equity Award for a Student at Coldsmith's College A University of the Arts London 'Insights Bursary, for a London College of Fashion student. Reducing Reoffending - £35.000. Financial support was proTrided.. Again for No Going BacL the Livery Companies initiative to assist offender5 into trades like construction upon release from prison To Fine Cell Work fi)r itg iiew'employment hub, at HMP Fostun Hall where embroidery training and production will be ofEered to women prisoners. Covxd Education Impact- £15,995. This year saw the final round of grants under this strand. Financial support was proded for.. A World BLX)k Day event for around 1,000 children from state-maintained primary schools, Eeaturing children's author Cressida Cowell and hosted by Wolverhampton Grammar School Intensive catch-up provision in English, Maths and Science at Aylesbury Unii'ersity Technical College (part of Merchant Taylors, Oxfordshire Academy Trust). Voluntccrs in the Engage with Education schcme provided the following opportunities to students frtjm state-maintained schoolg with link5 to the Merchant Taylors, Conipany.. Mentoring students to participate in the Livery Academy Awards and the Sheriffs, Challenge, competitions that require teams of secondary sch(K)1_8tudents to present, re_8pectively, bu_8ine& ideas and an oral argument to a panel of expert judges. Providing work-experience and internship opportunities for students in settings includinglesal chambers, a govemment relations consultancy and a green investment business.
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 An Aspiring Medics programme for students in Years 12 and 13 at St Saviour's and St Olave, School who aTe interested in a career in medictrie. Volunteers also assisted prisoners with CV writing and other skills, under the No Coing Back programme. Lives in London Under its Proactive Scheme, tlie Charity made major grants as follows. in the context of 5 year colla1rationS with the grantees.. A Year I grant to Lewisham Nlusic of £8i,008. The grant fundg.. l-to-l instrumental tuition to childrenlyouns people with a musical spark Provisim of skills training and pathways to work in the creative industries, with highly transferable skills for many other lines OE work A Community Programme Producer role. A Year I grant to Resources for Autism of £136,126, to support young adults on the outism 5pectruTn in Lewi5ham and Southwark A Year 2 8rant to Depaul UK of £105,188, to prevent young people becoming homeless in Lewisham and Southwark. The work comprises 'ReconnecY mediation in families, and education in schools and community, youth settings. The Charity completed the first half of Project Year One of its 5 year collaboration with Construction Youth Trust {cYtI. The Charity is the comerstone funder of Cyfs Lewisham Hub which introduces 14-19 year olds in Lewisham to the construction industry, leading to jobs and apprenticeships. The Charity continued to participate in the One Southwark coalition, supporting young people in Southwark. Under the Small Grants Scheme, the Charity wab able to support a wide range of people kn inner London, including groups such as women aEfected by domestic abuse, isolated elderly people, and people living with disabilities. The Charity, made small grants totalling £155,950 to 40 charities for the benefit of people in Hackney, iEWiSham, Southwark and Tower Hamlets. A Eull list of the grantees is set out in the MTF Revitw. The Charity made grants totalling £28,000 to two charitics in the context of existing funding relationship_8 betMTeen the granteeq and the Charity's sister charitv Merchant Taylors, Consolidated Charities for the Poor, which donated a 5igniFicant part of its assets to the Charity in 2021. Again, these were primarily for the benefit OE people liKng in Hackney, Lewisham, Southwark and Tower Hamlets. Covid impact- social impact in Tower Hamlets The Charity made a grant of £35,000 to The Feast Youth Project, Supporting The NrfF Feast Hub in Tower Hamlet5 to help young people feel confident in their own faith lor non-faith} identity while relating honestly but re5pectEully with people OE other faiths. io
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 Cost of Living hardship The Charity gave £62,500 to grassroots organisations well-placed to help people in acute need: Lewisham Local, Pecan and the Coplestt)n Centre in Southwark. The Charity made grants totalling just over £29,000 ftom unrestricted funds and £4,000 from restricted fuds to ten grantees including the Lord Nlayorfs Appeal. Fundraisin actitieS and fundraisin 5tandard5 The Trustee5 take 5eriou51y their pOnsIbl11t1es under the Charitie5 (Protection and Social tnvestmentl Act 2016 and have considered the implications Eor Eundraising activitses. The Charity is a charitable trust supported by The Merchant Taylors, Company. The Charity is registered with the Fundraising Regulator and has adopted its Code of Fundraising Practice. The Trustees are not aware of any failure to comply wxth the Code during the reporting period. The aiarity's approach to fundraising is as follows. The Cliarity conducts activity to raise funds from members of The Merchant Taylors, Company but a5 not carry out any fundraising aCtity in order to raise fund5 from the general public. The backsround is the Company's 510n. well publicized to memEErs, of philanthTOPy as an important aspect of Company membership. The Charity does not work with commercial participators or engage professional ndraiSerS. Fundraising commiinications are in the forni of.. An annual Merchant Taylors, Foundation impact report magazine detailing the work of the Charity and the contribution of Company members, and encoiiraging meTnbers to donate and leave legacies. Incidental reminders to Company members of the benefit to the Charity of regular donations and legacies, ti'pically in the context of articles about the Charity's activity within the Company's resular magazine about all aspects of life connected with the Company. Where Company members have asked ft>r the Charity's particulars in order to draft a legacy in a will. the Charity has prded them. The TLMStees are not aware of any complaints made in respect of fundraising during the year. Thc aiarity has taken the following steps to protect vulnerable people and others from unreasonable intrusion on their privacy, unreasonably persistent approaches or undue pressure to give, in the course of or in conneLtion with fundraising: Following the Code OE Fundraising Practice at all timeq, including its provisions on these niatters, not least the principles in Part I 'BehaOur When Fundraisin¥. In particular, during the reporting period the TrLiStees are not aware oEany occasions when the Charity had gLX)d reason to believe that a donor lacked capacity to make a decision to donate, or was vulnerable so as to be unable to make an informed decision. li
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 The Charity is also mindEul of the Chartered tnstitute of Fundraising s guidance 'Treating Donors Fairly'i and its four key principles of Respect, Faimess, being Responsive and Accountable. FINANCIAL REVIEW Inv The investment portfolio identified below continues to be managed on a discretionary basis, and has a balanced mandate meanin8 It is managed for a combination of income and capital growth. The Trustees have adopted the investment managerfs Responsible Investment Policy as their EnNryroninental, Social and Governance polic}, for the portfolio. The Trustees have adopted a "total retum" regime, whereby every year the Charity draws down a percentage of the value of its investment portfolio as averaged over a retrospective period. The Charity therefore draws on an element of capital growth, as opposed to recei]ng only the natural income from the portfolio. The purpose is to reduce the impact of market fluctuations on the Charitys grant-making. The Charities ITotsl Retuml Regulations 2013 and associated Charitv Commission guidance comprise a framework to ensure that the Trustees set the percentage drawdown rate at a level compatible with their duty to make prudent use of the Charity's assets. This includes revieMTing that rate with the Charitys investment manager at least annually. The Merchant Ta lors, Foundation Fund This fund is managed on the charity's behalf by Rathbones and is for iniTestors with a relatively h1- risk tolerance, with a 10 vear plus time horizon and the capacity to suffer a temporary or pernianent capital loss. The fund's prinTrary objective is to achieve CPI +4 /. per annum OiTer the investment cycle. This fund 15 a150 benchmarked against a composite index of growth-OTiented funds. Total retum tn the preoU5 financial period, the Trustee5 011'ed to adopt a total retum policy for the MFF funds held in the managed portfolio with elEect from l Allgust 2022. TrustLYS established the value of £5,836,232 for the Disadvantage endowment and £39,012 for the Original endowment by review of the historic accoiints. Prior to the resolution the capital returns on the Trust's endowed assets were credited to the Trusvs endowment funds and all income returns to the related restricted and unrestricted funds. The Trustees have decided to transfer 3 10 of the asset value to the restricted funds for application based on the expected long-term retum within the investment managerf5 mandate. This withdrawal rate will be reviewed regularly. The investment income in the year for the Charity was £500.170 (2022.. £380,972). The total retum on the Merchant Taylors, Foundatton Fund was 2.48'k, whithwas EElow the total retLm L thesecondary benchmath la composite indexloE4.3 /0 and below theprimary benchmarkofCPI +4°k peryear over theinvestmentcycle.Thiswasdue to the volati]ityinthemathets intheyeararisingfrom widerecon(xnic and political event5. 12
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 k mana The Trusteeq regularly review theirRiskRegister, which detsils thepresentstatu.s ofthose operational risks which might diminish the ChaLIty'5 etivenesS and the measure5 in place to mitigate them. The potential for grant fraud is a significant rLSk. The Charity mitigate5 against the risk by proportion¢ite due diligence on grant applications to verify the applicanvs identity and to check that any funds awarded will iE used for the stated purpose. tn most cases this includes a Nrysit in person or by online video service, and telephone contact in addition to paperlonline based checks against document5 in the publit domain. The ChaLIty also take5 proportionate step5, for exaTnple srant reports, to check that grants have been used for the purpose for which they were awarded A majorrisk to which thecharityis exposed is thevalue of, and incorne from, its investments. Investmaits are monitored closelv, with regular scrutiny ofthe investinentmanager'sperfonnancetakingplace, assis by the Nlerchant Taylors, Company s Jnvestment Committee. The Trustees are awaTe that safesuarding is a higi priority for the charity sector as a whole. The Chartty makcs grants to schools and educational institutions which have their own rigorous safeguarding procedures. tn relation to its. Small Grants. Scheme, the Charity rEquires applicant orxanizations tLI cun5ider the following ftatement8'. "Your child protection andlor vulnerable adult safeguarding policies are current and that relevant staff and Voluntee are adequately trained about them" 'All staff and volunteers working with children or vulnerable adults haiye had a Disclosure and Barring Serrice IDBS) check" The responses allowed by the application forni are 'No', 'Yes' or 'The charity does not work with children or vulnerable adults, An application is not allowed to proceed if the applicantanswers'No'. tn relation to the Charity's Proactive Scheme imPron8 lives in London, Safeguarding is discussed thoroughly with the prospective parther organization during the due diligence stage of negotiating the collaboration agreenient. The Charity's approach to this exercise is informed by the SAfeguardifr7,Y Frttmcuurk for Foundahojis published by the Funder SaEeguarding Collaborative and the Association of Charitable Foundation. The prospective partner explains its approach to keeping people gafe, including the specific safeguarding ris associated with its mission, core activities and any new activities which would arise from collaboration with the Charity. The prospective partner is also required to disclose any Serious tncident Notifications to the Charity Cominission which it has made within the previous five years. The TrLlStees believe that the above measures represent a proportionate approach for a grant-making foundation uf the Size of the Charity, given that the Charity doe5 not have statutory power5 of investigation. Compliance with fundraising standards is dealt with under 'Achievements and Performance,. At the end of the repoTting period, the Charity's total funds amounted to £16,910,85412022..£16,936,2361 13
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 The individual Eund balances were as follows.. The Unrestricted Fund £2,827,41412022.. £2,727,289) comprising.. General Funds £494,02112022.. £352,919) Desigpated Covid Fund £33,74812022.. £96,780) Designated Education Capital Fund £2,299,24512022.. £2,277,590) The Endowment Funds £13,040,14412022.. £13,175,5321.This comprises an endowment of £62,91312022.. £64,503) for the obi'ett5 of the Charity (s explanation of the objects earlier in this report), and a 'Disadvantage fund, permanent endowment of £12,977,23112022.. £13,111,029). Restricted Funds not available for general purposes of the Charity £1,043,29612022.. £1,033,415). The restrictions attaching to these funds are set out in full in Note I I to the Financial Statements. min The purposes of the Designated Funds are explained in Note 12 to the Financial Statements. The Designated Covid Fund is likel}T to be spent down in Full by Jiily 202.5, serving on ongoing funding relationship with The Feast Youth Project to support The MIF Feast Hub in Tower Hamlets. The Trustees are likely to hold the Designated Education Capital Fund for at least ten years. The amount of reserves at the end of the reporting period was £494,02112022.. £352,919}, after making allowance fur anyrestricted funds, designated fundb, commitments to be met from unrestricted reserves (not provided for as a liability in the accounts). Of this sum, £4,20612022.. £352.9191 was in the form of net current assets, with the remainder held in the investment portfolio. After the end of the reporting period, the Trustees revised their reserves policy as follows. The Trustees consideT it is not necessary for the Chaiity to hold any free and liquid reserve in unrestricted or undesignated funds. They consider this appropriate dLie to a number of factors includitl8'. A desire not to hold large amounts of cash which will lose'real, value over time. The relative predictability and dependability of several of the undesignatedlunrestricted income streams. The relatively low level of multi year committnents compared to unrestricted/undesi8nated income. The ability to increase or decrease actity on an annual ba515 to take account of fund5 available. The Charity nLI longer has a PLiliry of holding a cash reserve in undesignated and unrestricted funds. FufuRE PLANS The Charity plans tu launeh a le%acy fundraibing campaiw aimed at mernbEr5 of the Merchant Taylors, Company. tn January 2024, the CharitlT launched a joint grant-making programme with Leathersellers, Foundation, for the benefit of Early Years education in Lewisham. 14
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 STRucfuRE, GOVERNAN AND MANAGEMENT Governin document The Charity is governed by a Trnst Deed dated 17 February 2015, as amended with effect from April 2020, June 2021 and October 2023. ointment of Tru51ees The Trustees are appointed and removed by the Court of The Merchant Taylors, Company. This recognizes that the Court has a better longer-term overview than the Trustees alone could manage, of t ski115 and experien to be found acr055 the Company's whole membership whith is the pool from which Trustees are drawn. All current Trustees are members of theMerchantTaylors' Company. inin The Trustees are currently reviewing the PresS for induction ofnew Trustees. Trusts*s have access to the Merchant Taylors, Charity Governance Handb(yok; goveming documents,. prewou5 minute5, policies, and otherkeydocumentation,. and toChaTityCommis5ion8uidanTr. TheYa a150 supportedby a qualified and experienced staff based at MerchantTaylors' Hall.TheCharitybelongs to the Natiunal Cuunc]l ofvuluntaryorsanisatiuttsand theAssociatl ofcharitable Foundatiuns, throush whith Trusteefj have access to training opportunitie8. Mana The Charitydoes notemploymanagementpersonnel butuses the services of BradeStreteSerCes Limital a subsidiary of the Merchant Taylors, Company, to provide all administrative functions. The TrLLStee5 are supported in their deci5ion-making in the following areas by Committees of the Merchant Taylors, Company, M,hose members are drawn from members of the Merchant Taylors, Company and selected for their particular interest in, andlor experience of, the relevant areas.. Grant-making to advance education (the Company's Education Committ} Grant-making to tackle disadvantage (the Company's Charities Committee) Investments (the Company's Investment Committee). The Charitys auditors report to the Trustees through the Audit & Financial Risk Committee of the Merchant Taylors, Company. Related artie The Trubtee5 are all memberb uf the Nlerchant Taylorb CLimpanyfr which administers this Charity throush its wholly oThned subsidiary Bradestrete Serviceg Limited. Some of the Trnstees may be connected to one or more of the organisations that received grants during the year. However, as all xrants. are appruved un a majurity basis by the Trubtee5 or, if bu dele%ated, by member_8 of the separate Education committ or Charitie.8 Committee a.s appropriate, the Trustee.s do not believe that such connections impact on the grant-making pTr)cess. 15
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 REFERENCE AND ADMINISTRATIVE DETAILS CHARtrY NAME.. The Merchant Taylor5, Foundation REGETERED CHARrrY NUMBER.. 1161568 (registered with the Charity Commission for Enxland and Wales) ADDRESS.. 30 Threadneedle Street London EC2R 8JB TRUSTEES.. Mr R H C Nourse Ichairl Mrs S Morgan Revd Canon R Godsall Mr D Jackson Mr R Bull Mrs J Hall CHIEF EXECUTIVE OFFICER.. Rear Admiral l R Hclink CBE BANKERS.. Rojal Bank of Scotland plc 60-62 Threadneedle Street London EC2R SLA INVESTMENT NL4NAGERS: Rathbone Investment Management Ltd 8 Finsbury Circus London EC2M 7AZ ENDEPENDENT AUDtroRS.. Saffery LLP 71 Queen Victoria Street London EC4V 46E SOLICTtORS.. Charles Russell Speechlys LLP 5 Fleet ljlace London EC4M 7RD 16
i.:( I I xx r TAYLORS, FOUNDATION Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 FOR THE YEAR ENDED 31 JULY 2023 STATEMENT OF THE TRUSTEES, RESPONSIBILITIES The TrLlStees are responsible for preparing the Trustees, Report and the financial ststements in accordance witli applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practscel- The law applicable to charities in Ensland and Wales requires the Trustees to prepare financial stateMlts for each financial year wliich give a true and fair vieiy of the state of affairs of the Charitv and of the incoming 0uIceS and application of resources, of the Charity for that period. In preparing these financial statements, the Trustees are required to: select SULtable accounting policies and then apply them consistently,. observe the methods and principles in the Charities SORP,. makejudgements and estimates that are reasonable and prndent,. State whether applicable accounting standard5 have been followed, subject to any material departures disclosed and explained in the financialstatements,. prepare the fi"nancial.gtatements on the going concern basis unless It is inappropriate to presume that the Charity will continue inbusiness. Thc Trustees are rcsponsiblc for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position OE the Charity aiid enable them to ensure that the h'nancial statements comply with the Charities Act 2011, the ¢ipplicable Charities (Accounts and Reports) Regulatitjns and the provisitjns of the Trust Deed. They are also responsible for gafe¥uarding the assets of the Charity and for taking reasonable steps for the prevention and detection of fraL)d and other iTrgularities. The Report of the Trnstees was approved by the Trustees on 03/05/2024 and skgned on thekr behalf.. Signature: 89BCFBCIOB26I63.. Trustee.. R H C Nolirse 17
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHAf%fr TAYLORS, FOUNDATTON INDEPENDENT AUDITORS, REPORT TO THE TRUSFEES FOR THE YEAR ENDED 31 JULY 2023 Opinion We have audited the financial statements of The Merchant Taylors, Foundation for the year ended 31 Julv 2023 which comprise the Statement of Financial Actilrytieg, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including Significant accounting policies. The financial reporting framework that has been applied in their preparation is applicablelow and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted AccoLJnting Practice}. In our opinion the financial statements.. ve a true and Fair view of the state of the Charity's ¢iEfairs as at 31 July 2023 and of its incoming resources and application of resources for the period then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with Jntemational Standards on Auditing (UK} (EAS (UKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial 5taternent5 section of our report. We are independent of the Charity iii accordance with the ethical requirements that are relevant to our audit of tlie financial statements in tl)e UK including the FRC'b Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatins to soins concern In auditing the financial statements, we have concluded that the Trustees, use of the goins concern basis of actounting in the preparation of the financial statements is appropriate. Based on the work we have perfornied, we have not identified any material uncertainties relating to event5 or condition5 thaL individually or collectively, may cast significant doubt on the Charity's ability to coiitinue as a going concern for a perkod of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to soins concern are described in the relevant sections of this report. Other information The Trustees a responsible for the other Anfomation. The other inft)rniation comprAses the infonnation included in thc annual report, other than the fi.nancial statemenLs and our auditof s report thereon. Our opinion on the linoncial ststements dS not cover the other infonnation and, except to the extent otherwise explicitly stated in our reporL we do not express any forni of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information 15 mateTially inconbibtent WLth the financial statements or our knowledge obtained in the course of the audit or 18
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHAf%fr TAYLORS, FOUNDATTON INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023 otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material migstatenients, we are re(pired to determine whether tliis give5 rige to a material misstatement in the financial statement5 theniselves. IE, based on the work we have performed, we conclude that there i5 a mateTial misstatement of this other infomiation,. we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the folloMTing matters in relation ts) which the Charities {Accounts and Reports) Resulations 2008 require us to report to you if, in our opinion.. the information given in the Trustees, Annual Report is incnnsistent in any material respect with the financial statements,. or the Charity hos not kept sufficient accounting records,. or the financial statements are not in agreement with the accounting records and retums,. or we have nut received all the infomation and explanations 'e require for our audit. Responsibilities of Trustees As explained more Eully in the Statement of Trustees, Responsibilities set out on page 17, the Trustees are responsible for the preparation of the financial 5taternents and for EEing satisfied that they give a true and fair view, and for such internal control as the Trustees deterniine is necessary to enable the preparation of financial staternent5 tliat are free frL)Tn material mi55tatement, whether due to fraud ur error. Ln preparing the financial statements, the Trustees are responsible for assessing the Charity's ability to continue as a going concem, disclosin& as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Auditor5, re5pon5ibilities for the audit of the *inancial Statements We have been appointed as auditors under the Charities Act 2011 and report in accordance with resulation5 made under that Act. Our objectives are to obtain reasonable assurance about whetheI the financial statement5 a5 a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorb, report that includes our opinion. Reasonable absurance 15 a high level of asburance, but 15 110t a guarantee that an audit conducted in accordance with ISAS ) will always detect a material misststement when it exists. Misstatements can arise from fraud or error and are considered material Af, indii'idually or in the aggregate, they could reasonably be expected t() influence the economic decisions of users taken on the ba81.8 of these fi.nancial statements. Irregularities, includin8 fraud. are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material niisstatementg in respect of irregularitie5, includin8 fraud. The specific procedures for this en8asement and the extent to M,hich these are capable of detecting irregularitieb, including fvaud are detailed below. 19
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHAf%fr TAYLORS, FOUNDATTON INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2023 Identifyryng and assessing risks related to irregularities.. We assessed tlie susceptibility of tlie Charity's financial statements to material misstatement and how fraud might occur, including through discussions with representatives of the Trusteeg, discussions Wlthin our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified lam's and resulations that are of significance in the context of the Charity by discussions with representatives of the Trustees and updating our understanding of the sector in which the Charity operate5. Law5 and regulations of dirett significance in the context of the Charity include the Charities Act 2011, the Charities (Accounts and Reportgl Regulations 2008 and guidance issued by the Charity Commission for England and Wales. Audit response to risks identified- We considered the extent of compliance with these laws and regulations as part OE our audit pr(Kedures on the related financial statement item5 including a review of financial statement disclosures. We reeWed the Charitys records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements ari5inx. We dibcu5sed tlie Charity's policies and procedures for compliance with laws and regulation5 lyltli members of management responsible for compliance. During the planning meeting with the audit team, the engagement partner drew attention tu the key area5 which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were awa of any instances of non-compliance with laws and regulations or knowledge of any acttjal, suspected or alleged fraud. We addressed the risk OE fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were LillusLial or outside the normal course of biisiness. We assessed whether judgements made in makins accountin8 estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partnerfs reeW included ensuring that the team had approached their work with appropriate prufes5iunal scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. TheIe are inheIent limitations in the audit procedures described above and the further removed non- compliance with laws and regulation5 is ftom the events and transactions reflected in the financial btatements, the less likely we would become aware of it. Also, the risk of not detecting a material mib5tatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve delxberate cmcealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities is available on the Financial Reporting Council's MTebsite atr dit This description forms part of our auditols report. 20
DocuSign Envelope ID: 80226D4A-EBA1-43B0-920E-BDB1A1A87E97DocuSign Envelope ID: 930CE943-55A2-4A32-A5C7-576F940079E2
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Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHAf%rr TAYLORS, FOUNDATION 5fATENIENT OF FINANCIAL ACTTVITtES FOR THE YEAR ENDED 31 JULY 2023 Unrestricted fund Restricted fund Endos%rynent fund Total 2023 Total 2022 Note Income and tndowments from.. Donations and legaaes Oth*r income Investments Total return allocated to income 614,787 60 357,759 972,546 1,315,965 775 68,774 1,935 4,678 393,331 426,718 1395,2661 500.170 380,972 Total income 685,556 755,768 31A52 IA72,776 1fi97,n2 Expenditure o Raiging funds Investment management costs 606 57,117 66.059 70J91 Charitable a¢tivitie$ Gratits Grant related 5upwrt Costs Educational Activities 364,950 86,143 9S,553 610,402 144,080 975.352 230,213 98,553 981,459 209,888 41,536 549,646 754,482 1,304,128 1,232J83 Total expendxture 557.982 755.088 57,117 IJ70.187 1.303274 Net Ilossesllgains on investments Foreign exchange movements 115,2461 11,Tr41 11,1661 1621 1103,8221 15,9011 11202341 17.7371 11,2m,2791 Total investmeni losses 17.0201 11.2281 1109,7231 1127.9711 11.2(M),2791 Net incomellexpenditurel 110554 5481 1135,3881 25?821 8051141 TrcinsfeTS between funds IIOA291 IOA29 Nel movement itt funds 100,125 9,681 1135,3881 25J821 805I411 Fund balances at l Au%ugt 2022 2,727,289 1,033,415 13,175,532 16,936,236 17,742,077 Ftstkd balances at 31 Jllly 2028 2027,414 1.043,296 13.040,144 16,910,854 16,936236 The acc(iuntin8 p)liaes and n()te.E ()n piges 25 t() 39 form part af these finanaal statements.
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHAf%fr TAYLORS, FOUNDATTON BALANCE SHEEr AS AT 31 JULY 2023 Note 31 July 2023 31 July 2022 Fixed assets Tnvestmenls 16,906,648 15,292,979 Current assets tk.bti)rs 16,775 426 Cash at bank 248,490 1,898,304 265,265 IA198,730 Creditors 261,059 255,473 Nel current assets 4,206 1,608,487 Total assets 16,910,854 16.936,236 Fwids EndowTnent 13,040,1¥14 13,175,?32 Restrirted li 1,043,296 1,033,415 Unrestricted 12 2,827,414 2,727,289 14 16,910,854 16,936,236 These financial Statements were approved by the Trustees on 03/05/2024 Signature.. Trustee.. R H cr F8c10B¥8j ourse
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 'I'I NIlICE I 1,11 LOIIS, FOUNDATION srATEMENT OP CASH PLOIIS FOR THE YEAR ENDED 31 JULY 2023 31 July 2023 31 July 2022 Cash flows from oFErating actii'ities.. Net cash provided by operatin8 activities 84,179 647,992 Ca%h fli)w% from investin% aetivities.. Pri)CL'L'ds frc)ni balL' ()f invL'btmLnt 1,695,031 {3,671,827) 2,213,307 12,3918171 Purth3se of investmetits Net cash lused inl inve51in8 artivities.. {1,976,7961 1179,5101 Change in cash and cash equivalents in the reporting Feriod 11,892,617) 468,482 Cash and cash Lquivalents at thl beginning of the year 2,420,374 1,9?1,892 Cash and cash equivalents at the end of the year Inole 161 527,757 2,420J74 Cash flows fvom operatins actiyities Net expenditure for tlie reportins period 125,3821 1805,8411 Adjustments for.. Lo55es on investments 120,324 1,245,8BI 4,863 30,562 Foreisn exchcinge rei'aluation De(rease in debtors 116,3491 ItntreasL'I in stotk Increase in tteditors 12,4311 174,958 5,586 Net cash proyided by oFEratins activities 84.179 647,992 24
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS Accounting Policies Charity information The Merchant Taylors, Foundation is registered with the Charity Comniission for England and Wales (registered number 11615681. The registered address is 30 Threadneedle Street, London, EC2R 8JB. Basis of preparation These financial statements have bn prepared in accordance with Accounting and Reporting by Charitie5.' Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicablein the UK and Republic of treland IFRS 1021 Isecond edition) (Charitie5 SORP IFRS 10211 and the Charities Act 2011. The Charity constitutes a public benefit entity as defined by FRSIO2. The financial statements have been prepared to give a true and fair view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair ew. This departure ha5 involved Eollowing the SORP rather than Accounting and Reporting by Charitie5.' Statement of Recommended I'ractice (revised 2005) which has been withdrawn. The linancial statements have bLcn preparL.d on an accruals basis under the historic cost convention, with the exceptioii of investments which are stated at market value. The key accuuntin% estimates and jUdMlts which have the most siwificant impact on the financial statements are set out in the accounting policies below.. Goins Concern At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continuc to adopt the going concem basis of accounting in preparing the financial statements Income Ln¢ome is recognised when the Charity has entitlement to the funds, an! perfonnance conditions attached to the item(51 of income have been met, it is probable that the income will EE received and the arnount can be measured reliably. Allincoming rcsources are included in the Statement of Financial Activxtscs when the Charity is entitled to the income and the amount can be quantified with reasonable accuracy. Income from investnients is recopjiised when Ieceived. Expendire Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Expenditure on raising funds comprises those costs directly attributable to managing the investment portfolio (including inve5ttnent property) and raising investtnent income. Support costs are allocated in line with die level of support time required for each fund.
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS Crants Grants are payments mode to third parties in the furtherance of the choritsble objects of the Charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the 8rant awaid. The notih"cation gives the recipient a reasonable expectatinn that they will reieiiTe the one-year or multi-year grant. Graiit aMTards that are subject to the recipient fulfilling perforniance conditions aTe oiily accrued when the recipient has been notified of the grant and any remaining iin£ulfilled condition attaching to that grant is outside of the control of the Charity. Inveslments Investments are stated at market value at the balance sheet date. Net gains and losses arising on revaluation and dispogals throughout the year are taken to the Statement of Financial A¢htieS. Cash and (ash equivalents Cash and cash CqUiV¢ilents include cash in hand, deposits held at call with banks, other short-term liquid investments with oris]nal maturities of three month5 or less, and bank overdrafts. Bank overdraft5 are shown within borrowings in current liabilities. FinancAal Instruments The Charity only has Einancial assets and financial liabilitie5 of a kind that qualify asbasic financial instruments. Basic financial instruments are initially recogniscd at transaction value and subscqLJently measured at their settlement value. Critical Accounting Judgements and Estimates The preparation of the Charity's financial statements require5 the use of certain judgements. e5timate5 and assumptions that affect the reported anTrounts OE asgetg, liabilities, income and expenses. Estimates and judsements are continually evaluated and are based historical experience and i)ther fact(Jrs, including expectations of Euture events that are believed to be reasonable under the circumstances. Changes in accounting estimates may be necessar)T if there are chaIises in the circumstances on which the estimate was based or as a result of neM¥ information or more experience. Funds Where there is a legal restriction on the purpose to which a fund may be puL the fund is classified cithcr as a restricted fund or an endowment fund. Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. Endowment funds arise when the donor has expressly provided that the is to be invested and only the income of the fund may be spent. Total retum The Trustees resolved to adopt a total return policy for the endowed funds held in the managed portfolio with effect from l August 2022. Prior to the resolution the capital returns on the Trust's endowed assets MTere credited to the endowment funds and all income retLims to the related restricted funds. The Trustees have decided to transfer 3 /0 of the asset value to the income funds for application based on the expected long-term return within the investment managef s mandate. This withdrawal rate will be reviewed regularly. 26
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS Income Donations and legacy income: 2023 2022 Unrestricled Merchant Tavlor5' Company SirThomas White's Charity Merchaiit Taylor5, Company Charities Fund The Marler Trnst Other Donations 350,000 37,426 137,525 802,920 34,399 37,455 4,000 107,191 985,965 89,836 614,787 Restricted Merchant Taylors, Educational Trust Merchant Taylors, Consolidated Charities for the Poor Other donations 30,000 324,148 30,000 300,000 357.759 330AIOO Totsl 972,546 1,315,965 27
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 3. Grants paid 2023 2022 Grants paid from restricted funds Improving live5 in London Proactive Stream Construction Yoiith Trust loo,000 Depaul UK United St Saviourfs Charity (One Southwarkl Resources for Autism 105,188 97,053 38,720 136,126 Lewisham Music 85,008 326,322 235,773 Small Grants Scheme Variolis grants less than £10,000 155.950 145,747 Cost of livins Lewisham Local 37,500 Pecan 22,000 Various grants less than £ln,nOO 62500 Other Disabters Emergency CommitEee (Ukrainel Hotline Meals Service 110,607 19,000 The Blue Ribbon Foundation 12,300 The Maypole Project Various grants less than £10,000 10,000 12,530 36,607 31530 169514 28
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 3. Grants paid Icontinuedl Improving lives across the country 2023 2022 The Kings SchLwI Macclesfield Slade School of Fine Art 16,050 15,000 2,000 2,000 Wolverhampton Gramrnar School 16,050 15,000 34,100 32,000 Total grants fmm restricted funds 610A02 583W34 Grants paid from unrestrieted funds Improving lives in London (Covid impact) The Feast Youth Project 35,000 35,000 3500 3500 Improving lives across the country Smallpeice Trust (Arkwright Scholarships) 20,000 14,895 Merchant Taylors, School (Crosby) Merchant Taylors, Oxfordshire Academy Trust Pembroke College Speakers Trust 16,050 16,600 46,795 85,987 10,000 15,000 St john's School 10,000 10,000 St Paul's Cathedral School 12,000 12,000 St Saviour's & St Olave's School 10,000 133,383 The Nlercers, Company (No Going Backl olverhampton Grammar School UK Fashion & Textiles 25,000 25,000 14,100 12,500 Fine Cell 10,000 University nf the Arts Various 8rant5 less than £10,000 10,000 99,030 33,560 300875 341825 29
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 3. Grants paid Icontinuedl Miscellaneous (from unrestricted nds) Lord Mayor's Appeal Various grants less than £10,000 10,050 19,425 22,000 29A75 2200 Total grants frnm unrestricted funds 364,950 398h25 Total grants paid in year 975B52 981,459 4. Grant related 5UPPOrt costs 2023 2022 Administration costs 204,741 175,077 Event costs 5,163 Insurance 466 520 Bank charses Govemance costs. .. 1,906 1,392 Audit Eee 14,520 12,000 Audit fee - under provision Legal & professional fees Total 11,880 8,590 3,856 230223 209*88 Trustees received no remuneration12022.. £nill and were not reimbursed for any of their expense5 in the year 12022.. £nill. The Charity Iiad no employ&b during the current or prior year.
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 5. Educational Activitie5 2023 2022 Livery Academy Awards Early Years ReeW Other activities less than £10,000 Total 40262 25,QnO 33,291 98553 30,643 10,893 41536 Investments July 2023 July 2022 Valuation at start of year Additions 15,292,979 16,133,590 3,671,827 2,392,817 Disposals Market value Oossesllgains Movement in investment cash 11,695,031) 12,213,307) 1120,2341 1242,8931 11,245,881) 225,760 Valiiation at end of year 16,906,648 15292,979 Invesbnent by type: July 2023 July 2022 EquitiL 15,198,203 13,912,615 Bonds 1,429,268 858,294 Cash 279,177 522,070 16.906,648 15292,979 31
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 7. Debtors July 2023 July 2022 Prepawient5 and accrued income Total 16,775 426 16,775 426 Included within accrued income is £11,38612022.. £Nill due from The Merchant Taylors, Company Charities Fund. 8. Creditors July 2023 Jtily 2022 Other creditors 16,878 31,570 Grants payable 225,134 197,053 Accruals 19,047 26,850 Total 261A>59 255.473 Balance5 With connected partie5: Bradebtrete Services Limited 16,185 31,525 At ycar-end the Charity had grant commitments totallxng £1,629,14512022.. £858,340) that have notbeen recognised as liabilitie5 a5 they were subject to perforniance conditions which had not EEen satisfied at year- end. 32
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS Pernianent Endowment fund Balance l August 2022 Investment 105S Balance 31 July 2023 Jncome Expenditure Original nd Disadvantage fund 64,503 891 11,4901 {9911 62,913 13,111,029 30,561 155,6271 1108,7321 12,977,231 13,175532 31,452 57,117 1109,7231 13,040,144 Prior year eomparative Balance l August 2021 Jnvestment loss Balance 31 July 2022 Income Expenditure Original fund Disadvantage Eund 111,565 11,4801 {45,5821 (984,4671 It13049) 64,503 14,156,387 (60,8911 13,111.029 14267,952 62J711 13,175532 The original endowment fund was acquired on registration in 2015. Income derived from this is applied in line with the charity's object5.
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 10. Statement of investment total refvrn Disadvantage fund Original nd Total Original endowment value 51136,232 39,012 52175,244 Unapplied total tllrn 7,274,797 25,491 7JOO,288 Total value at l August 2022 13,111,029 64503 13,175.532 tnvestment income 423,892 2,826 426,718 Market value movement {103,1731 1649) 1103,8221 Foreign exchange movement 15,5591 13421 15,9011 Investment management f&s 155,6271 11,4901 157,1171 Total return applied to unapplied return 259,533 345 259,878 Transfer to income 1393,3311 11,935) 13952661 Orisinal endowment value 5,836,232 39,012 5,875,244 Unapplied total retLtm 7,140,999 23,901 7.164,900 Total value at 31 July 2023 12,977231 62,913 13,040,144 Total return The Trustees adopted total retum from l August 2022. The ori&nal ft value was agreed to be £.5,836,232 for the Disadvantage eiidowment and £39,012 for the Original endownient. Trust agreed to withdIaw of the assevs value as this best balanced the present and filture needs of beneficiaries and was in line with the long-term anticipated return by the iniTesttnent rnanaser.
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 11. Restricted funds tnvestment gainb and tran.sfers Balance l Augu.st 2022 Balance 31 July 2023 tncome Expenditure Pocock fund 122,013 4.678 {3,0781 132,1001 (1,228) 122J85 Education - Ixirsaries 30,000 2,100 Relief of disadvantage Master's Charity Restricted funds 911,402 717,478 1715,546) 14,364) 7550881 7,577 920,911 3,612 1,033,415 752 755,768 9201 1,043,296 Prior year eomparative Jnvestment gains and transfers Balance l August 2021 Balance 31 July 2022 Income Expenditure PoCk Eund 143,210 2,421 12,681) (20,9371 122,013 Education - burgaLies 30,000 130,000} 155J,469) Relief of disadvantage Restricted funds 822,415 640,456 91J,402 965,625 672A77 1584,1501 120,9371 1,033A15 Pocock fund is for the purp(Trse of fLJnding scholarships at the Slade School of Fine Art or to make grants to encourage the study of art abroad by pupils of Merchant Taylor5, School. Education - bur5aTies fund related to donations received from Merchant Taylors, Educational Trust for the puTpose of providing bursaries to students at associated schwls. The Relief of Disadvantage fund relates to donations given from Merchant Tavlors, Consolidated Charities for the Poor for the benefit of those who are in need by reason of age, ill health, disability, financial hardship or other disadvantage. During the 7-month period ending July 2021 the Merchant Taylors, Consolidated Charities for the Poor donated the majority of it5 a55ets to the Nqerchant Taylor5, Foundation. The Masterfs Charity relates to donations received for Veterans Aid in the year.
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 12. Unrestricted funds Investment sain5 and transfers Balance l August 2022 Balance 31 July 2023 Income Expenditure Desiated funds Covid fund 96,780 163,032) 33,748 Education capital fund 2,277,590 503,346 1457,8751 {23,6161 2,299,245 General funds 352,919 182,210 137,0751 13,6331 494,421 Unrestricted funds 2,727289 68556 1557,9821 127,4491 227,414 Prior year comparative Jnvestment gains and transfe Balance l August 2021 Balance 31 July 2022 Income Expenditure Desisnated funds COa fund 286,260 1189,4801 1228,4811 96.780 Education committee fund 150,999 77,482 Education capital fund 1,830,868 680,836 17,3391 1226,7751 2,277590 General funds 391,372 193,000 1231,4531 1656,7531 352,919 Unrestricted funds 2508,500 ISI24035 {1492931 2,727,289 Covid nd is fijnds earmarked Eor u%e to alleviate problems created by the Covid-19 pandemic in the community. Stjme donors to the CLironavirus Appeal expressed a wish tliat their funds be used for the benefit nf specific classes of beneficiaries and these wishes have been monitored and honoured in full by the Trustees. Education capital fund is funds delegated to the Merchant Taylors, Companfs Education Committee for distribution for the advancement of educatton. 36
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 13. Transfers between funds Unrestricted fund5 Restricted funds Total 2023 Education capital fund Education - bursaries 19,677) 19,6771 9,677 9,677 General 17521 17521 Master's Charity 752 752 10,429) IOA29 Transfers between funds were to prevent restricted funds from going below a £nil balance. 14. Analysis of net assets between funds Unrestricted Restricted funds funds Endowment funds Total funds 2023 tnvestments 2,823,208 1,043,296 13,040,144 16,906,648 Current assets 4.206 4.206 2A27314 I43296 I340,144 16,910,854 Prior year comparalive Unrestricted Restricted funds fund5 Endowment fund5 Total funds 2022 Investments 1,993.434 124,013 13,175,532 15,292,979 Current asbets 733.855 909,402 1,643257 2.727,289 IA133,415 13,175,532 16,936236 37
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 15. Related party transactions Bradestrete SeThoce5 Limited, a connected party, incurred administration, establishment and management expenses during the year on behalf of this Trust amounting to £179,87412022.. £165,4861- Some of the Trustees maybe connected tt) one or more of the organisations that received grants during the year. However, as all grants are approved on a majority basis the TStee$ do not believe that gucli connections impact on the grant making process. The Charity received donations Erom slster charities and the Merchant Taylors, Company as detailed in note 2. The Trustees are all membeTS of the Merchant Taylors, Company. which administeTS this Trust through its subsidiary Bradestrete Services Limited. The balances due to and from the other entities associated with the Merchant Taylors, Company at 31 Iuly 2023 are disclosed in notes 7 and 8 to the financial statements. Trustees made unrestricted donations totalling £2,270 in the year12022.. £12,140}. 16. Analysis of cash and cash equivalents and changes in net funds At l August 2022 Cashflows At 31 July 2023 Cash in bank and at hand 1,898,304 11,649,814) 248,490 Cash held by investtnent managers 522.070 1242,8931 279,177 2A20J74 (1092h181 527,757 38
Docusign En¥ÈlopÈ ID". 930CE943-55A24A32-A5C7-576F940079E2 THE MERCHANT TAYLORS, FOUNDATION NOTES TO THE FINANCIAL SFATEMENTS 17. Comparative information Unrestricted fund Restricted Endowment fund fund 2022 Income and endowments from: Donations and legaaes Other income Investments 985,965 775 330,iKM) 1,315,965 775 38.095 342,877 380,972 Total income 1.024,835 672,877 1.697,712 Expenditure o Raising funds Investment niana%ernent costs 7,339 61371 70.391 Charitable activities Grants Grant rL'latL'd SUPFK)Tt tosts Educational Activities 398,425 209,453 41,536 583.034 981,459 209,888 41,536 649,414 583,469 1,232,883 Total expenditure 656,753 584,150 62Jn I03,274 NÈt Ilossesllxains investrnents 1149,2931 120,9371 11,030,0491 11,200,279) Net incomellexpenditurel 218.789 67,Rg0 11.092.420) I805.1) Nel movernent in fund5 218,789 67,790 11,0914201 1805,8411 Fund balances at l August 2021 2,508,5(M) %5,625 14,267,952 17,742,077 Fund balances at 31 July 2022 2,727,289 IJ)33A15 13,175,532 16,936,236 39