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2023-06-30-accounts

THE SEQUOIA TRUST Registered Charity No: 1163457

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th June 2023

The Sequoia Trust Trustees Report for the year ended 30th June 2023

The trustees present their report along with the financial statements of The Sequoia Trust (the "Trust") for the period to 30 June 2023. The Trust is a CIO (Charitable Incorporated Organisation) and is registered with the Charity Commission for England and Wales with registered charity number 1163457.

Trustees Sir Paul Marshall Lady Sabina Marshall Deborah Afdhal Claire Musgrave Winston Marshall - Appointed 18 July 2023 Louise Walker- Appointed 20 April 2023

The trustees, as shown above, were appointed by the Trust Deed or by trustee resolution. 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 9 Appold Street London EC2A 2AP Solicitors Bates Wells 10 Queen Street Place London EC4A 1BE

Objects and Activities

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

During the period the Trust received £12,500,000 donations (2022: £58,093,000) from trustees including gift aid of £2,500,000 (2022: £nil). The Trust was gifted investments of £nil (2022: £58,093,000) from trustees. The Trust donated £19,645,000 (2022: £80,233,000) to various other charities around the world as detailed in note 3 to the accounts. All awards and donations have been made in keeping with the Trust guidelines and objectives of the CIO Constitution.

Grants Policy

The Trustees discuss each potential grant before a decision is taken to support a charitable organisation. The grants are given at arms length, for use in on-going charitable activities of an organisation, and are generally requested to remain confidential.

Page: 1

The Sequoia Trust Trustees Report for the year ended 30th June 2023 (Continued)

Investment Policy

The Investment policy of the Trust is to achieve low volatility, absolute returns, whilst seeking to maintain the capital value. The investments donated do not pay a dividend and therefore the only source of income from these investments 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 £456,764,000 and the current bank balance stands at £12,640,835. Unrestricted funds currently show a surplus of £414,935,000. 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 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 Trustees

New trustees may be appointed by the existing trustees, to fill a vacancy or act 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.

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:

Page 2

The Sequoia Trust Trustees Report for the year ended 30th June 2023 (Continued)

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:-

The Sequoia Trust

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

Date: 29 April 2024

Page: 3

Independent Auditors Report to the Trustees of The Sequoia Trust

Opinion

We have audited the financial statements of The Sequoia Trust for the year ended 30 June 2023 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 Sequoia 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 pages 2 and 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 Sequoia Trust Auditorfs responsibilitigs for the audit of the Ilnanclal statements (continued) We communrate wth those charged wth govemance regarding. among olher matters. the planned scope and liming of the audit and significant audit findings. including any significant deficiencies in internal control that we identify during our audit. Explanation as to what extsnt th• audlt was consldwed capable of detecting irrggularltlos. Including fraud Irregularities. inclijding fraud, are instsnces of non-compliance wth laws and regulations. We design prO￿dureS in line with our restx)nsibilities. oudined above, to delecl material misstatements in respect of irregularities, including fraud. The extent to 4thich our prOcedu￿S ￿ Capable of detecting irregularities, including troud is detsiled below. The objectives of Dur audit in respect of fraud, are.. to identsfy and assess the risks of material misstalemenl of the financial statefflents due to fraud,- to obtain suffi(#enl appropriate audit eviden regarding the assessed risks of material misststement due to fraud, through desTrgning and implementing appropriate responses to those assessed risks.. and to respond appropfjatdy lo instances of fraud or suspected fraud identsfied during the audit. However. the primary respon￿bIlIty for the prevention and detection of fraud rests wth both management and those charged governance of the charity. Our approach was as follows.. We obtained an understanding of the ￿gaI and regulatw requirements applicable to the charity and considered that the most signfficanl are the Charities Act 2011. the Charity SORP. arKI UK financial reporting standards as issued by the Financial Reporting CLNJncil. We obtained an understanding of how the charity complie5 with these requirements by discussions with management and those charged govemance. We assessed the risk of material misstatemenl of the ffinarKial Statements. induding the risk of material misstalemenl due to fraud and how it might occur, by holding discussions with management and those charged wth govemance. . We inquired of management and those charged govemance as to any knovm instsnces of non- compliance or suspwled non-compli8nce wth I￿ and regulations. Based on this understanding, designed speafic appropriate audit proL*dU￿S to identify instances of non-compliance with laws and regulalions. This included making enquiries of management and those charged with govemance and obtainiThJ addition81 ¢omLK)rdtive eviden￿ as required. There 8re inherent lim(tations in the audit KYocedures described above. We are less likety lo b￿rne aware ol instances ol non-complian¢e vthh laws 8nd regulab.ons that are not ckjsely related lo events and trans8¢tions reflected in the financial statements. Aso. the risk of not detecting a material misstatemenl due to fraud is higher than the risk of not detecting one resultiro from error, as fraud may involve deliberate concealment by. for example. forgery or intentional misrepresentations, or through collus￿n. Use of our report This report is made solely to the Charit￿$ trustees. as a body. in ￿ordance wth Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken 50 that we mTghl stale to the charws Iruslees those matters we 8re required to stale lo them in an auditorfs report an¢J for no other purpose. To the fullest exlenl pemiitted by law, do not accept or assume responsibility to any party other than the charity and charills trustegs as a ￿Jy. for our avdit w)rk. for this reporL or for the opinion we have formed. 30 April 2024 Date..................... Moore lfjngston Smith LLP Chartered Accountants and Statutory Auditors 9 Appold Street London Moore lfjngslon Smith LLP is elwJible to act as auditor in tems of Section 1212 of the Companies Act 201>3. Page.. 6

The Sequoia Trust Statement of Financial Activities For the year ended 30th June 2023

Note
Income from:
Donations:
Donations received
2
Investment income
Total income
Expenditure on:
Charitable Activities:
Grants and Donations payable
in furtherance of objects
3
Cost of raising funds:
Cost of investing activities
Total expenditure
Net gain on investments
8
Gains/ (Losses) on foreign exchange
Net movement in funds
Total funds brought forward 30 June 2023
Total funds carried forward at 30 June 2022
£'000
12,500
1,282
13,782
(19,684)
(59)
(19,743)
8,730
(5,293)
(2,524)
417,459
414,935
Year ended 30
June 2023
£'000
58,093
675
Year ended 30
June 2022
58,768
(80,241)
-
(80,241)
53,081
13,180
44,788
372,671
417,459

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

All income and expenditure was unrestricted in the period.

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

Page: 7

The Sequoia Trust Balance Sheet at 30th June 2023

Note
Non Current assets
Investments
8
Concessionary loan
Current Assets
Debtors
9
Cash at bank
Creditors: Amounts falling due
within one year
Creditors
10
Net Current (Liabilities) / Assets
Total Assets less current liabilities
Creditors: Amounts falling due after
more than one year
Grants payable
Total Net Assets
Funds
Unrestricted Funds
2023
£'000
456,764
1,200
457,964
2,601
12,640
15,241
(26,699)
(11,458)
446,506
(31,571)
414,935
414,935
2022
£'000
415,476
-
415,476
2,504
60,853
63,357
(19,894)
43,463
458,939
(41,480)
417,459
417,459

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

The accounts were approved by the Trustees and authorised for issue on: ……………………..29 April 2024 and signed on its behalf by:

The Sequoia Trust

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

Page: 8

The Sequoia Trust Statement of Cash Flows Statement and Notes

Note
2023
£'000
Net cash provided/(used in) by operating
activities
(i)
(11,437)
Investment income
1,282
Cost of purchasing fixed asset investments
(89,227)
Proceeds from sale of fixed asset investments
51,169
(38,058)
Change in cash and cash equivalents in the reporting period
(48,213)
60,853
12,640
Note (i)
Reconciliation of net income to net cash flow from operating activities
2023
£'000
Net (loss)/ income as per the statement of
(2,524)
financial activities
Investment income
(1,282)
Investment gains
(8,730)
Foreign exchange (gains)/losses (non cash movement)
5,500
Gifted investments (non cash movement)
-
(Increase)/decrease in debtors
(1,297)
Increase/(decrease) in creditors
(3,104)
Net cash used in by operating activities
(11,437)
Analysis of cash and cash equivalents
2023
£'000
Cash in hand
12,640
Total cash and cash equivalents
12,640
Analysis of changes in net debt
At
Cash
01/07/2022
Flows
Cash
60,853
(48,213)
Cash generated from operating activities:
Cash flows from investing activites:
Cash flows from financing activities:
Cash and cash equivalents at 30 June 2022
Cash and cash equivalents at 30 June 2023
2022
£'000
(13,931)
675
(70,216)
125,368
55,152
41,896
18,957
60,853
2022
£'000
44,788
(675)
(53,081)
(11,863)
(58,093)
9,171
55,821

Net (loss)/ income as per the statement of
financial activities
Investment income
Investment gains
Foreign exchange (gains)/losses (non cash movement)
Gifted investments (non cash movement)
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash 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
At
01/07/2022
Cash
60,853
(13,932)
2022
£'000
60,853
60,853
At
30/06/2023
12,640

Page: 9

The Sequoia Trust Notes to the Accounts For the year ended 30th June 2023

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 1. 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 Trust. 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. 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. Grant creditors have not been discounted over the period of payment due to the discounted amount not being material to the accounts.

Page: 10

The Sequoia Trust Notes to the Accounts For the year ended 30th June 2023

1 Accounting policies (continued)

Concessionary loan

Concessionary loans are loans are initially measured at the amount paid and are adjusted annually for any accrued interest receivable less impairment loss.

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.

2
Donations received
Individual donations
Donated investments
Gift aid
2023
£'000
10,000
-
2,500
12,500
2022
£'000
-
58,093
-
58,093

Page: 11

The Sequoia Trust Notes to the Accounts For the year ended 30th June 2023

3
Grants and donations payable in furtherance of objects
Grant Commitments
ARC Research
Church Revitalisation Trust
London School of Economics
The End Fund
Ralston College
ARK
Other grants
Donations
Church Revitalisation Trust
Holy Trinity Brompton
Policy Exchange
Other unrestricted donations
Governance costs (see note 7)
2023
£'000
1,000
-
-
7,925
-
8,270
775
17,970
-
1,000
500
175
1,675
39
19,684
2022
£'000
-
5,000
50,000
-
18,424
-
336
73,760
5,054
1,000
-
419
6,473
9
80,242

4 Transactions with Trustees

No trustee received any remuneration for services as a trustee (2022: £nil), nor any reimbursement of expenditure (2022: £nil).

Total aggregated donations received from Trustees during the accounting period amounted to £12,500,000 (2022: £58,093,000). This amount disclosed is gross of Gift Aid received on donations of £2,500,000 (2022: £nil). Trustees gifted £nil (2022: £58,093,000) of investments during the year as shown in note 8 to the accounts.

See note 9 for related party transactions in the period under review.

5 Employees

The Trust has no employees.

6 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.

Page: 12

The Sequoia Trust Notes to the Accounts For the year ended 30th June 2023

7
Governance costs
Audit fees
Legal and professional fees
Bank and custody charges
8
Investments
Opening balance as at 1 July 2022
Additions in the period
Gifted investments at £Nil consideration
Redemption proceeds in the period
Realised gains/(losses) on redemption of investments
Unrealised gains on investment
Foreign exchange gains/(losses)
Market Value at 30 June 2023
Historical Cost
Significant Investment holdings based on market value at 30 June 2023
Investments
MW Eureka Fund Class C1 USD
MWFF SPC Alpha Plus Fund
MW Eureka Plus Fund Class C1 GBP
MW Eureka Fund Class C1 GBP
Treasury gilts
Kingsway Frontier Consumer Opportunities Growth Fund USD
9
Debtors
Accrued income
10
Non Current Debtors
Concessionary Loans
2023
£'000
16
22
1
39
2023
£'000
415,476
89,227
-
(51,169)
1,433
7,297
(5,500)
456,764
330,983
were:
Original cost
at 30 June
2023
£'000
69,931
51,000
76,949
86,752
14,959
20,656
320,247
2023
£'000
2,601
2,601
2023
£'000
1,200
1,200
2022
£'000
7
-
2
9
2022
£'000
347,592
70,216
58,093
(125,368)
5,228
47,853
11,863
415,476
241,389
Market value at
30 June 2023
£'000
86,156
49,579
155,137
111,355
14,648
27,608
444,483
2022
£'000
2,504
2,504
2022
£'000
-
-

Page: 13

The Sequoia Trust Notes to the Accounts For the year ended 30th June 2023

11
Creditors: Amounts falling due within one year
Grants payable
Accruals & other creditors
2023
£'000
26,681
18
26,699
2022
£'000
19,889
6
19,895

12 Related Parties

The trust received donations of £12,500,000 (2022: £nil) from Sir Paul Marshall. Donations consiting of gifts of shares with a market value of £nil (2022: £58,093,000) were made during the period.

During the period the Trust made donations of £8,270,000 (2022: £2,750,000) to ARK, a charity of which Sir Paul Marshall is a trustee. At the period end there were unpaid grant commitments to ARK of £7,967,000 (2022: £30,000). Claire Musgrave was the Chair of the Finance and Risk Committee of ARK during the period. Claire Musgrave resigned from this committee on 14 November 2023.

During the period the Trust made grants and donations of £nil (2022: £10,054,000) to The Church Revitalisation Trust, a charity of which Sir Paul Marshall is a Trustee. The Trust also made donations of £1,000,000 (2022: £1,000,000) to Holy Trinity Brompton a charity which is related to the Church Revitalisation Trust. At the end of the period there were unpaid grant commitments to The Church Revitalisation Trust of £3,892,000 (2022: £8,418,000).

During the period the Trust made a grant of £1,000,000 (2022: £nil) to ARC Research, a company limited by guarantee and part of The Alliance for Responsible Citizenship (ARC), an organisation of which Sir Paul Marshall is a Director.

The Trust made donations during the period of £nil (2022: £336,000) to the Education Policy Institute, a Charity which Sir Paul Marshall was a Trustee. At the end of the period there were unpaid grant commitments to the Education Policy Institute of £200,000 (2022: £336,000). Sir Paul Marshall resigned as a trustee of the Education Policy Institute on 31 December 2023.

13 Financial and Capital commitments

At the 30 June 2023, there was an uncalled investment commitment to the SDG Outcome fund of £3,125,000 (2022: £4,117,000).

Page: 14