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2021-06-30-accounts

THE EUREKA CHARITABLE TRUST

Registered Charity No: 1163448

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30th June 2021

The Eureka Charitable Trust Trustees Report for the year ended 30th June 2021

The trustees present their report along with the financial statements of the Trust for the year to 30 June 2021. The Trust is a CIO (Charitable Incorporated Organisation) and is registered with the charity commission for England and Wales with registered charity number 1163448.

Trustees P.R.C. Marshall I.G.P. Wace C. Musgrave D. Ford

The trustees, as shown above, were appointed by the Trust Deed, and subsequent trustees can be appointed by them. All the trustees receive regular updates on the charity sector.

Principal Office George House 131 Sloane Street London, SW1X 9AT

Bankers Natwest Bank Plc City of London Office 1 Princes Street London EC3P 3AR

Auditors Moore Kingston Smith LLP Chartered Accountants Devonshire House 60 Goswell Road London EC1M 7AD

Solicitors Macfarlanes 20 Cursitor Street London EC4A 1LT

Objects, Activities and Public Benefit

The objects of the Trust are for such exclusively charitable purposes for the benefit of the public in any part of the World as the Trustees may in their absolute discretion think fit.

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.

Achievements, Performance and Financial Review

The Trust donated £1,153,544 (2020: £3,750,374) to various other charities around the World as detailed in note 3 to the accounts. The charity also supported the NHS via the internal initiative known as 'Mealforce'. This was in support of a registered charity, Helpforce which has the mandate to centralise elements of the public outreach for volunteering into the NHS, and also centralising and coordinating corporate donations of kind into the NHS at the time of national emergency as a result of the global pandemic caused by Covid-19. The Helpforce charity was set up by Sir Thomas Hughes-Hallet, the chairman of Chelsea & Westminster Hospital. In addition to this, the Trust intends to give support mainly to charities which benefit children and children's causes, and during the period the Trust supported various organisations with this aim in mind.

All awards and donations have been made in keeping with the Trust guidelines and objectives of the CIO Constitution.

Page: 1

The Eureka Charitable Trust Trustees Report for the year ended 30th June 2021 (Continued)

Grant Policy

The Trustees give careful consideration to each potential grant before a decision is taken to support a charitable organisation. The trustees receive recommendations to support an organisation from the main donor Marshall Wace’s Charity Committee, which reviews the risk profile of the organisation and the potential impact and change that might result from a donation. The Committee actively seeks regular reports and updates on progress from the charities which are approved for grants and donations by the Trust. The grants are given at arms length, for use in on-going charitable activities of an organisation, and are generally requested to remain confidential.

Investments Policy

The investment policy of the Trust is to achieve low volatility, absolute returns, whilst attempting to maintain the capital value. The investments held do not pay a dividend and therefore the only source of income would be on disposal.

Reserves Policy

The Trustees ensure the Trust holds sufficient working capital for the ongoing grant commitments. Reserves have been built up to fund future grant activities.The current capital value of the investments currently stands at £8,723,134. Unrestricted funds (those expendable at the discretion of the Trustees) currently show a surplus of £10,808,025. There were no restricted funds carried forward at the year end (2020: none). The Trustees review this policy on an annual basis.

Risk Management

The major risks to which the Trust is exposed, as identified by the trustees, have been reviewed and the Trustees are satisfied that the processes are in place to mitigate those risks.

▪There is a risk we will not attract sufficient philanthropic capital to continue to meet the Trust's commitments. Mitigation: The Trust continually assesses it's level of reserves before committing to grants payable to ensure the Trust always has sufficient reserves to continue operations.

▪There is a risk that the investments will not yield sufficient returns to fund the Trust's commitments. Mitigation: The Trustees review the investments made by the Trust from time to time and would take appropriate steps in the event there were insufficient returns on the Trust's investment portfolio.

Key management and remuneration policy

The Trustees are not remunerated and the Trust has no employees.

Appointment of new trustees

New Trustees may be appointed by the trustees, to fill a vacancy or as an additional trustee. The Trust shall select appropriate Trustees and provide them with an induction to acquaint them with the governance and policies of the Trust as well as what is expected of them in their new role. Additional training and/or information will be provided to the trustees on an ongoing basis.

Future Plans

The Trustees plan to pursue a policy of continuity over the coming twelve months, with no major operational changes forecast for the coming year.

Page: 2

The Eureka Charitable Trust Trustees Report for the year ended 30th June 2021 (Continued)

Statement of Trustees' Responsibilities

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the Trust and of the income and expenditure of the Trust for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Audit Information

So far as each of the trustees at the time the trustee's report is approved is aware:

Auditors

Moore Kingston Smith LLP continued to be the auditors during the period.

On behalf of the Trustees:-

.................................................. Trustee

Date: 28 April 2022

Page: 3

Independent Auditors Report to the Trustees of The Eureka Charitable Trust

Opinion

We have audited the financial statements of The Eureka Charitable Trust for the year ended 30 June 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page: 4

Independent Auditors Report to the Trustees of The Eureka Charitable Trust

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 3, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page: 5

Independent Auditors Report to the Trustees of The Eureka Charitable Trust

Auditor’s responsibilities for the audit of the financial statements (continued)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

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.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Date 29/04/2022

Devonshire House Moore Kingston Smith LLP 60 Goswell Road Chartered Accountants and London Statutory Auditors EC1M 7AD

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

Page: 6

The Eureka Charitable Trust Statement of Financial Activities For the year ended 30th June 2021

Note
Income from:
Donations:
Donations received
2
Investment income
Total
Expenditure on:
Charitable Activities:
Grants and donations payable
in furtherance of objects
3
Total
Gains/ (losses) on investments
7
Gains/ (losses) on foreign exchange
Net income/ (expenditure)
Transfers between funds
Net movement in funds
10
Total funds brought forward
Total funds carried forward
Restricted
Unrestricted
funds
funds
£
£
£
65,000
7,156,079
7,221,079
-
5,899
5,899
65,000
7,161,978
7,226,978
(472,144)
(692,170)
(1,164,314)
(472,144)
(692,170)
(1,164,314)
-
1,387,913
1,387,913
-
(47,292)
(47,292)
(407,144)
7,810,429
7,403,285
407,144
(407,144)
-
-
7,403,285
7,403,285
-
4,429,461
3,404,740
-
11,832,746
10,808,025
Year ended
30 June
2021
£
2,387,402
1,539
Year ended
30 June
2020
2,388,941
(3,762,699)
(3,762,699)
273,386
75,651
(1,024,721)
-
(1,024,721)
4,429,461
3,404,740

All gains and losses arising in the period are included in the Statement of Financial Activities and arise from continuing operations.

The notes on pages 10 to 14 form part of the financial statements.

Page: 7

The Eureka Charitable Trust Balance Sheet at 30th June 2021

Note
Fixed Assets
Investments
7
Current Assets
Debtors
8
Cash at bank
Creditors: Amounts falling due
within one year
Creditors
9
Net Current Assets
Total Assets less Current Liabilities
Creditors: Amounts falling due after
more than one year
Grants payable
Total Net Assets
Funds
Unrestricted Funds
10
2021
£
8,723,134
1,263,250
1,379,543
2,642,793
(215,966)
2,426,827
11,149,961
(341,936)
10,808,025
10,808,025
2020
£
2,835,221
-
2,457,296
2,457,296
(1,439,894)
1,017,402
3,852,623
(447,882)
3,404,741
3,404,741

The notes on pages 10 to 14 form part of the financial statements.

28 April 2022

The accounts were approved by the board and authorised for issue on ……………………. and signed on its behalf by

......................................................................... Trustee

Page: 8

The Eureka Charitable Trust Statement of Cash Flows for the year ended 30th June 2021

Note
2021
2020
£
£
Net cash used in operating activities
(i)
3,416,348
(2,743,592)
Investment income
5,899
1,539
Cost of purchasing fixed asset investments
(4,500,000)
-
Proceeds from sale of fixed asset investments
-
3,659,248
(4,500,000)
3,659,248
Change in cash and cash equivalents in the reporting period
(1,077,753)
917,195
2,457,296
1,540,101
1,379,543
2,457,296
Note (i)
Reconciliation of net expenditure to net cash flow from operating activities
2021
2020
£
£
Net expenditure (as per the statement of financial activities)
7,403,285
(1,024,721)
Investment income
(5,899)
(1,539)
Investment gains
(1,387,913)
(346,417)
Increase in debtors
(1,263,250)
-
Decrease in creditors
(1,329,875)
(1,370,915)
Net cash provided/(used in) by operating activities
3,416,348
(2,743,592)
Analysis of cash and cash equivalents
2021
2020
£
£
Cash in hand
1,379,543
2,457,296
Total cash and cash equivalents
1,379,543
2,457,296
Analysis of changes in net debt
At
Cash
At
01/07/2020
Flows
30/06/2021
Cash
2,457,296
(1,077,753)
1,379,543
Net cash used in operating activites
Cash flows from investing activites:
Cash flows from financing activities:
Cash and cash equivalents at 30 June 2020
Cash and cash equvalents at 30 June 2021
2020
£
(2,743,592)
1,539
-
3,659,248
3,659,248
917,195
1,540,101
2,457,296
2020
£
(1,024,721)
(1,539)
(346,417)
-
(1,370,915)

Net expenditure (as per the statement of financial activities)
Investment income
Investment gains
Increase in debtors
Decrease in creditors
Net cash provided/(used in) by operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
Analysis of changes in net debt
Cash
(2,743,592)
2020
£
2,457,296
2,457,296

Page: 9

The Eureka Charitable Trust Notes to the Accounts Statutory Information for the year ended 30th June 2021

1 Accounting policies Basis of accounting

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), including Update Bulletin 2. The Trust is a public benefit entity for the purposes of FRS 102 and therefore the Trust also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP) and the Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The principle accounting policies adopted in the preparation of the financial statements are set out below.

Going Concern Basis

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Trust to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the Trust's forecasts and projections and have taken account of pressures on donation and investment income as a result of Covid-19. After making enquiries the trustees have concluded that there is a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. The Trust therefore continues to adopt the going concern basis in preparing its financial statements and there are no material uncertainities at the date of signing.

Income

Income is credited to the Statement of Financial Activities on an accruals basis when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Expenditure

Expenditure is charged on an accruals basis. Grants payable are included in the Statement of Financial Activities when approved by trustees and offered to the grantee.

Foreign currencies

Transactions denominated in foreign currencies are translated into Sterling at the exchange rate ruling at the date of the transactions. Assets and liabilities in foreign currencies are translated into Sterling at the rates of exchange ruling at the end of the financial period. All exchange differences are dealt with in the Statement of Financial Activities.

Investments

Investments are included in the accounts at market value. Realised and unrealised gains and losses on investments are included within the funds.

Cash and Cash Equivalents

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.

Grants payable

Contractual arrangements are recognised as goods and services are supplied. Other grant payments are recognised when a constructive obligation arises.

Page: 10

The Eureka Charitable Trust Notes to the Accounts For the year ended 30th June 2021

1 Accounting policies (continued)

Fund accounting

The unrestricted fund consists of those funds which the Trust may use in furtherance of its charitable objectives at the discretion of the trustees.

The restricted funds can only be used for a particular restricted purpose within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Financial Instruments

The Trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102.

Critical accounting estimates and areas of judgement

In the view of the trustees in applying the accounting policies adopted, no critical accounting estimates and judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

Page: 11

The Eureka Charitable Trust Notes to the Accounts For the year ended 30th June 2021

2 Donations receivable

2
Donations receivable
NHS donations
Other donations
Gift aid receivable
Included within donations are restricted donations totalling £65,000 (2020:
3
Grants and donations payable in furtherance of objects
Donations - restricted
NHS Mealforce
Donations - unrestricted
Action for Kids
All Stars
Angkor Hospital
Cecily Respect Project
Charlie Waller Memorial Trust
City Harvest
Daughters of Charity Trust
Elmhurst Hospital mayors
Greenhouse Schools Project
Literacy Partners
Minds Matter
Mother Choice
NHS Mealforce
Pencils of Promise
Raise your Hands
St Judes Children
Surfers Against Sewage
Teach for America
Tushinde Foundation
Welcome to Chinatown
Whedco
Governance costs (see note 4)
2021
£
65,000
5,892,829
1,263,250
7,221,079
£2,229,365)
2021
£
472,144
472,144
30,000
36,717
70,370
-
-
28,979
182,850
-
(18,000)
-
105,914
-
-
37,294
60,000
35,576
2,500
36,417
21,440
14,360
36,983
681,400
10,770
1,164,314
2020
£
2,229,365
158,037
-
2,387,402
2020
£
2,229,365
2,229,365
-
56,571
-
47,171
2,500
-
-
39,689
23,000
98,145
207,353
82,537
870,952
15,304
60,000
-
-
-
18,147
-
-
1,521,369
11,965
3,762,699

Page: 12

The Eureka Charitable Trust Notes to the Accounts For the year ended 30th June 2021

4
Governance costs
Audit fees
Market data costs
Legal and professional fees
Bank charges and other interest
2021
£
8,070
78
2,550
72
10,770
2020
£
6,910
78
4,740
237
11,965

5 Transactions with Trustees

No trustee received any remuneration for services as a trustee (2020: £Nil) nor any reimbursement of expenditure (2020: £Nil).

See note 11. for related party transactions in the period under review.

6 Employees

The Trust has no employees.

7
Investments
Hedge Funds
Brought forward as at 1st July 2020
Additions
Disposal proceeds
Realised gains/(losses) on disposal
Realised gains/(losses) on foreign exchange
Unrealised gains
Unrealised gains/(losses) on foreign exchange
Market Value at 30th June 2021
Historical Cost
2021
£
2,835,221
4,500,000
-
-
-
1,387,913
-
8,723,134
6,742,000
2020
£
6,148,052
-
(3,659,248)
102,731
73,031
170,655
-
2,835,221
2,242,000

Significant Investment holdings based on market value at 30 June 2021 were:

Investment funds
MW Eureka Plus Class C1 GBP
MW Eureka Class C1 GBP
8
Debtors
Gift aid recoverable
Original
cost at 30
June 2021
£
2,242,000
4,500,000
6,742,000
2021
£
1,263,250
1,263,250
Market Value
at 30 June
2021
£
4,163,115
4,560,019
8,723,134
2020
£
-
-

Page: 13

The Eureka Charitable Trust Notes to the Accounts For the year ended 30th June 2021

9 Creditors: Amounts falling due within one year

Grant creditors
Accruals
2021
£
208,796
7,170
215,966
2020
£
1,433,594
6,300
1,439,894

10 Funds

Year ended 30 June 2021

Unrestricted funds
Restricted funds
Balance at
Gains /
Balance at
01-Jul-20
Income
Expenditure
(losses)
Transfers
30-Jun-21
£
£
£
£
£
£
4,429,461
7,161,978
(692,170)
1,340,621
(407,144)
11,832,746
-
65,000
(472,144)
-
407,144
-
4,429,461
7,226,978
(1,164,314)
1,340,621
-
11,832,746

Purpose of restricted funds

Mealforce

This fund is used to support the NHS via the internal initiative by providing meals for NHS at the time of national emergency as a result of the global pandemic caused by Covid-19.

11 Related Parties

During the period the Trust made no grant commitments and donations (2020: £nil) to ARK, a charity of which I.G.P. Wace and P.R.C. Marshall are also trustees and C. Musgrave is the Chair of the Finance and Risk Committee. At the year end there were unpaid grant commitments to ARK of £360,000 (2020: £1,390,000).

During the period the Trust made no grant commitments and donations (2020: £nil) to Place2Be, a charity of which C. Musgrave is a member of the development board. At the period end there were unpaid grant commitments to Place2Be of £nil (2020: £68,000).

During the period the Trust received a donation of $200,000 (2020: $200,000) converted to £176,502 (2020: £158,000) from Marshall Wace North America LP. I.G.P. Wace, P.R.C. Marshall, C. Musgrave and D. Ford are all partners of MW Group LP, the entity's ultimate parent company.

The charity also received £5,052,996 (2020: £nil) from Marshall Wace LLP, of which £1,263,249 (2020: £nil) of gift aid was claimed. I.G.P. Wace, P.R.C. Marshall, C. Musgrave and D. Ford are all partners of MW Group LP, the entity's ultimate parent company.

12 Financial and Capital commitments

The Trust has no outstanding financial or capital commitments.

Page: 14