OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

Company number: 09796120 Charity Number: 1164463

The Haddad Foundation

Report and financial statements For the period ended 31 December 2021

The Haddad Foundation

Contents

For the period ended 31 December 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 2 Independent auditor’s report ......................................................................................................... 9 Statement of financial activities (incorporating an income and expenditure account) ................... 13 Balance sheet ............................................................................................................................... 14 Statement of cash flows ................................................................................................................ 15 Notes to the financial statements ................................................................................................. 16

The Haddad Foundation

Reference and administrative information

For the period ended 31 December 2021

Company number 09796120 Charity number 1164463 Registered office Haddad Foundation and operational 20 Old Bailey address LONDON EC4M 7AN Country of England & Wales registration Country of United Kingdom incorporation Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Claudio Luiz da Silva Haddad Chair Rosalie Rahal Haddad Daniela Barone Soares Dulce Maria de Barros Marchi Packard Tania Haddad Arthur Mizne Bankers J P Morgan 25 Bank Street Canary Wharf London E14 5JP Solicitors Withers LLP 20 Old Bailey London EC4M 7AN Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

1

The Haddad Foundation

Trustees’ annual report

For the period ended 31 December 2021

The trustees present their report and the audited financial statements for the year ended 31 December 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

The Foundation is a charitable company limited by guarantee governed by its articles of association. It was incorporated on 25 September 2015 and registered with the Charity Commission on 18 November 2015.

The Foundation's objects are set out at article 3.1 of its governing articles as:

The Foundation acts exclusively as a grant maker in order to fulfil its charitable objects.

The Foundation was established by Claudio and Rosalie Haddad in furtherance of their family's philanthropic activities. Claudio and Rosalie Haddad are joined on the board by their daughter, Tania Haddad, and Dulce Packard and Daniela Barone Soares, both of whom have experience in the English charity sector, as well as Arthur Mizne, an experienced advisor and investor.

The Foundation supports a range of charitable causes in accordance with its adopted grantmaking policy, particularly those relating to education. Grants are made to reputable organisations, often well-established and with a long-standing track record of public benefit, with a focus on higher educational institutions.

Without limitation, and as set out in the Foundation's charitable objects, the trustees have a particular interest in projects which benefit young persons and children in Brazil. Tania Haddad is resident in Brazil and, whilst the Foundation's business is conducted in English, the trustees speak fluent Portuguese. The beneficiaries of the Foundation's grants also include Brazilian students studying abroad in institutes of excellence such as the University of Chicago.

The Foundation’s trustees currently hold an annual meeting once a year in the autumn, at which they review the Foundation's accounts and investments and its policies and procedures. They also formally review the progress of and decide on new grant proposals. Throughout the year they are in contact in relation to potential grants and other matters as and when they arise.

2

The Haddad Foundation

Trustees’ annual report

For the period ended 31 December 2021

In the course of such dialogue, the trustees have reviewed the aims, objectives and activities of the Foundation. They have considered what the Foundation has achieved and the outcomes of its work in the reporting period, including the success of each key activity and the benefits brought to its beneficiaries. They ensure the Foundation remains focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Foundation's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

Achievements and performance

As noted above, the Foundation furthers its charitable purposes for the public benefit particularly by making grants which focus on the advancement of education and which benefit young people or children from Brazil. Predominantly such grants are to large, reputable and long-standing educational institutions. Its ultimate beneficiaries in those instances are the students and pupils of the grantees. The trustees hope that there will be wider benefits to their educational grants, namely to society more generally.

The Foundation paid the following grants during the reporting period:

Grantee Grant amount($)
Ensina Brasil 300,000
Universityof Chicago 650,000
Insper Instituto de Ensino 931,000
Nova de Lisboa 776,868
TrinityCollege Dublin 285,040
Harvard University 300,000
Sou Da Paz 27,000
Vetor Brasil 45,000
MASP 437,000
London School of Economics 6,930
Instituto Rodrigo Mendes 200,000
Total 3,958,838

In addition, the Foundation also committed to make the following grants (payable during 2022 or later):

later):
Grantee Grant amount ($)
Insper Instituto de Ensino 6,367,103
Nova de Lisboa 255,971
Trinity College Dublin 39,818
Sou Da Paz 26,026

3

The Haddad Foundation

Trustees’ annual report

For the period ended 31 December 2021

For theperiod ended 31 December 2021
MASP 538,461
London School of Economics 13,536
Total 7,240,915

Grantees are required to report back to the Foundation on the use of their grants so that the trustees can satisfy themselves on the success of the projects which have been funded, and that public benefit has been achieved. Throughout the year the trustees have received updates on projects the Foundation has funded.

The trustees are satisfied from the terms of its grants and the reporting received that the charitable activities supported by the Foundation have effectively achieved its purposes and objectives in the period.

In future years the Foundation plans to continue to make grants in accordance with its aims, objectives and commitments described above. The trustees shall continue to review the results of grants already made and consider whether to support existing beneficiaries, as well as consider any new opportunities.

Investment aims and financial review

The Foundation depends on its investment return, plus any supplementary donations which may be received, to fund its grant making. The Foundation is intended to exist in perpetuity, and the Foundation has an investment policy and a risk policy which guide its approach. It has delegated the management of its investments to investment managers.

The Foundation seeks to achieve the best financial return to support its grant making activities within an acceptable level of risk. Its assets are invested widely with a view to diversification. Its investment objective is long-term capital growth above inflation, with moderate vitality. The Foundation adopts a total return to investment; whilst the Foundation can draw down therefore on capital to meet expenditure needs, this is done with the needs of future beneficiaries in mind. If in any one year the total return is insufficient to meet the grant making expenditure, the aim is that the real value of the Foundation will be maintained overall.

During this financial period, the Foundation received $551,324 (2020: $444,861) in income on investments and made gains on investments of $5.5m (2020: $4.5m).

4

The Haddad Foundation

Trustees’ annual report

For the period ended 31 December 2021

Principal risks and uncertainties

The trustees have identified the following principal risks in the running of the Foundation as a grant maker: poor investment return, including currency exchange losses; mis-use of funds by grantees; conflicts of interest; and regulatory non-compliance. They shall review and continue to mitigate those risks and, with such mitigating measures in place, they do not currently consider that any risks identified are likely to occur with any serious impact. Risk controls include a diversified investment portfolio with the Foundation's managers; robust grant making practices and template grant terms; and seeking professional advice and support.

Reserves policy

The Foundation seeks to maintain sufficient reserves so that future expected funding requirements for a number of years, along with the associated governance and support costs, can be met. The Foundation does not hold any restricted funds and does not currently employ staff or pay rent.

As at the year end the Foundation's reserves were $43,930,760 (2020: $33,452,588).

Structure, governance and management

As referred to above, the Foundation is a charitable company limited by guarantee governed by its articles of association. It was incorporated on 25 September 2015 and registered with the Charity Commission on 18 November 2015.

The Foundation operates as a pure grant maker with grant making decisions being made collectively by the trustees. The Foundation does not employ any staff; however, it has engaged Withers LLP for company secretarial services as well as legal advice.

All trustees give their time voluntarily and receive no benefits from the Foundation. No expenses were paid during the year.

Appointment of trustees

New trustees can be appointed either by the Foundation's members (Claudio and Rosalie Haddad) or, subject to the written consent of the members, by the trustees currently in office. The board is required to consist of at least three and not more than eight persons.

Trustee induction and training

New trustees are required to review, complete and sign a consent to act; the Charity Commission declaration of eligibility and responsibility; HMRC's model fit and proper person declaration; and a declaration of interests. They are introduced to the Foundation's articles of association, conflicts

5

The Haddad Foundation

Trustees’ annual report

For the period ended 31 December 2021

of interest, grant making and investment policies, and directed to the Charity Commission website and guidance.

Fundraising disclosures

The Foundation does not solicit donations or seek to raise funds from the public. It has not engaged professional fundraisers or commercial participators to fundraise on its behalf. Since the Foundation was established for the philanthropy of the Haddad family it has received donations only from members of the family (or organisations related to them).

As such, the Foundation has not (with reference to section 162A of the Charities Act 2011): subscribed to any scheme or standard relating to fundraising; monitored any activities carried out on its behalf for the purpose of fundraising; received any complaints in relation to fundraising; nor needed to take steps to protect vulnerable people and other members of the public from the behaviour connected to fundraising and referred to in section 162(a)(2) of the Charities Act 2011.

Related parties and relationships with other organisations

Claudio Haddad has unpaid roles within some of the Foundation's grantees. He is Founder and President of the Board of Insper; Chairman of the advisory council of the Brazil office of the David Rockefeller Center for Latin American Studies of Harvard University; a member of the Global Council of Harvard University and a member of the advisory council of the Becker-Friedman Institute of the University of Chicago. These roles have been declared to his fellow trustees, who consider that they provide useful insight into the governance and operation of the grantees concerned. They were also explained to the Charity Commission on applying to register the Foundation. None of the roles is remunerated.

Rosalie Haddad is a director of the Associação Brasileira de Estudos Irlandeses, or the Brazilian Association of Irish Studies (ABEI), and a member of the Board of the Trinity Centre for Literary and Cultural Translation at Trinity College Dublin. Students supported by the Foundation's grant to Trinity College Dublin are selected together by ABEI and Trinity College Dublin. Rosalie Haddad does not receive any remuneration for her role.

Tania Haddad is a Board Member of Insper, a Member of the Social Sciences Council at the University of Chicago and a Member of the Advisory Board at MASP (Museum of Art of São Paulo). None of the roles is remunerated.

Claudio and Rosalie Haddad are married to each other, and Tania Haddad is their daughter.

Statement of responsibilities of the trustees

The trustees (who are also directors of The Haddad Foundation for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in

6

The Haddad Foundation

Trustees’ annual report

For the period ended 31 December 2021

accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the Foundation guarantee to contribute an amount not exceeding £1 to the assets of the Foundation in the event of winding up. The total number of such guarantees at 31 December 2021 was 2 (2020: 2). The trustees have no beneficial interest in the Foundation.

7

The Haddad Foundation

Trustees’ annual report

For the period ended 31 December 2021

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The trustees’ annual report has been approved by the trustees on 26 September 2022 and signed on their behalf by

Claudio Luiz da Silva Haddad Trustee

8

Independent auditor’s report

To the members of

The Haddad Foundation

Opinion

We have audited the financial statements of The Haddad Foundation (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet, 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 applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of 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 the financial statements section of our report. We are independent of the charitable company 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 Haddad Foundation'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.

9

Independent auditor’s report

To the members of

The Haddad Foundation

Other Information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

10

Independent auditor’s report

To the members of

The Haddad Foundation

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

11

Independent auditor’s report

To the members of

The Haddad Foundation

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Noelia Serrano (Senior statutory auditor) 27 September 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

12

The Haddad Foundation

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2021

For theyear ended 31 December 2021
Note
Income from:
2
3
4
4
6
Reconciliation of funds:
Total funds carried forward
Gains on foreign exchange
Net movement in funds
Total funds brought forward
Net gains on investments
Net income / (expenditure) for the period
Net income / (expenditure) before net gains on
investments
Raising funds
Total expenditure
Public education
Charitable activities
Investments
Total income
Expenditure on:
Donations and legacies		 2021
Total
$ 12,000,000
551,324		 2020
Total
$ -
444,861
12,551,324 444,861
397,579
7,547,812		 374,837
7,431,661
7,945,391 7,806,498
4,605,933
5,534,479		 (7,361,637)
4,465,517
10,140,412
337,760		 (2,896,120)
534,471
10,478,172
33,452,588		 (2,361,649)
35,814,237
43,930,760 33,452,588

All of the above results are derived from continuing unrestricted activities. There were no other recognised gains or losses other than those stated above.

13

The Haddad Foundation

Company no. 09796120

Balance sheet

For the year ended 31 December 2021

For the year ended 31 December 2021
Note
Fixed assets:
10
Current assets:
Liabilities:
11a
11b
Creditors: amounts falling due within one year
Net current liabilities
Total assets less current liabilities
Investments
Debtors
Unrestricted general funds
The funds of the charity:
Total net assets
Creditors: amounts falling due after one year		 $ 15,000 2021
$ 57,494,600		 $ - 2020
$ 43,808,733
(4,868,522) (3,741,488)
15,000
(4,883,522)		 -
(3,741,488)
52,626,078 40,067,245
(8,695,318)
43,930,760		 (6,614,657)
33,452,588
43,930,760 33,452,588

Approved by the trustees on 26 September 2022 and signed on their behalf by:

Claudio Luiz da Silva Haddad Trustee

14

The Haddad Foundation

Statement of cash flows

For the year ended 31 December 2021

Reconciliation of net income to net cash flow from operating activities

Reconciliation of net income to net cash flow from operating activities Reconciliation of net income to net cash flow from operating activities Reconciliation of net income to net cash flow from operating activities
Gains on investments
Dividends, interest and rent from investments
Increase in debtors
Increase in creditors
Net cash provided by / (used in) operating activities
Note
$ $ 13
7,600,064
551,324
22,197,534
(6,865,132)
(23,483,790)
(7,600,064)
-
-
-
Cash flows from operating activities
Net cash (used in) / provided by investing activities
Net cash provided by / (used in) operating
activities
Cash flows from investing activities:
Dividends and interests from investments
Proceeds from sale of investments
Purchase of investments
(Increase) / decrease in cash held by investment
manager
Net income / (expenditure) for the period
(as per the statement of financial activities)
2021
Cash and cash equivalents at the beginning of the
period
Cash and cash equivalents at the end of the period
Change in cash and cash equivalents in the period		 2021
$ 10,478,172
(5,534,479)
(551,324)
(15,000)
3,222,695		 2020
$ (2,361,649)
(4,465,517)
(444,861)
-
3,930,283
7,600,064 (3,341,744)
-
-		 -
-
- -

15

The Haddad Foundation

Notes to the financial statements

For the year ended 31 December 2021

a) Statutory information

The Haddad Foundation is a charitable company limited by guarantee and is incorporated the United Kingdom.

The registered office address is 20 Old Bailey, London, EC4M 7AN.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006/Charities Act 2011.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Presentational currency and foreign exchange

The presentational and functional currency of the charitable foundation is United States Dollars (USD). At the year end the exchange rates adopted were GBP 1: USD 1.33 (2020: 1.37), EUR 1: USD 1.15 (2020: 1.22) and BRL 1: USD 0.18 (2020: 0.19).

Assets and liabilities in foreign currencies are translated into USD at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated in USD at the rate of exchange at the time of the transaction. Exchange differences are shown on the statement of financial activities.

f) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

16

The Haddad Foundation

Notes to the financial statements

For the year ended 31 December 2021

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

j) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Resources expended are allocated to the particular activity where the cost relates directly to that activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

l) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

The Foundation holds no cash at bank as all short term highly liquid cash amounts are held as part of the listed investment portfolio. All income and expenditure transactions are made via the investment portfolios.

n) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

17

The Haddad Foundation

Notes to the financial statements

For the year ended 31 December 2021

o) Financial instruments

Income from donations and legacies
Donations
Investment income
Income from investments		 2021
Total
$ 12,000,000		 2020
Total
$ -
12,000,000 -
2021
Total
$ 551,324		 2020
Total
$ 444,861
551,324 444,861

18

The Haddad Foundation

Notes to the financial statements

For the year ended 31 December 2021

4a Analysis of expenditure (current year)

Grants paid (note 5)
Audit and accountancy fees
Legal fees
Tax on investments
Other investment costs
Commission fees
Governance costs
Total expenditure 2021		 Raising
funds
$ -
-
-
27,117
44,027
326,435		 Charitable
activities
Public
education
$ 7,501,530
-
-
-
-
-
7,501,530
46,282
7,547,812		 Governance
costs
$ -
16,436
29,846
-
-
-		 2021
Total
$ 7,501,530
16,436
29,846
27,117
44,027
326,435
397,579
-		 46,282
(46,282)		 7,945,391
-
397,579 - 7,945,391

4b Analysis of expenditure (prior year)

Grants paid (note 5)
Audit and accountancy fees
Legal fees
Tax on investments
Other investment costs
Commission fees
Governance costs
Total expenditure 2020		 Raising
funds
$ -
-
-
21,631
40,591
308,721		 Charitable
activities
Public
education
$ 7,389,646
-
-
-
-
-
7,389,646
42,015
7,431,661		 Governance
costs
$ -
16,548
29,361
-
-
-		 2020
Total
$ 7,389,646
16,548
29,361
21,631
40,591
308,721
370,943
3,894		 45,909
(45,909)		 7,806,498
-
374,837 - 7,806,498

19

The Haddad Foundation

Notes to the financial statements

For the year ended 31 December 2021

5a Grant making (current year)

Grant making (current year)
MASP
Vetor Brasil
Sou Da Paz
Ensina Brasil
University of Chicago
Insper Instituto de Ensino
Nova de Lisboa
Trinity College Dublin
Harvard University
London School of Economics
Instituto Rodrigo Mendes		 Amounts
paid out
during the
year
$ 300,000
650,000
931,000
776,868
285,040
300,000
27,000
45,000
437,000
6,930
200,000		 Approved &
accounted
for 2020
$ (300,000)
(650,000)
(931,000)
(776,868)
(209,425)
(315,000)
(27,000)
(45,000)
(437,000)
(6,930)
-		 Approved &
accounted for
2021, paid
2022 or later
$ -
-
6,367,103
255,971
39,818
-
26,026
-
538,461
13,536
-		 2021
$ -
-
6,367,103
255,971
115,433
(15,000)
26,026
-
538,461
13,536
200,000		 2020
$ 300,000
-
826,411
3,668,434
930,627
15,000
-
287,834
1,347,827
13,513
-
3,958,838 (3,698,223) 7,240,915 7,501,530 7,389,646

The above grants were all paid to institutions in furtherance of public education. A grant of $15,000 was written back in the year as noted above.

5b Grant making (prior year)

Grant making (prior year)
Ensina Brasil
Sou Da Paz
Vetor Brasil
MASP
London School of Economics
University of Chicago
Insper Instituto de Ensino
Nova de Lisboa
Trinity College Dublin
Harvard University
Think Forward		 Amounts
paid out
during the
year
$ 300,000
650,000
1,400,000
43,308
36,691
315,000
46,030
58,235
103,000
-
13,068		 Approved &
accounted
for 2019
$ (300,000)
(650,000)
(1,400,000)
(43,308)
-
(315,000)
(46,030)
(58,235)
(56,000)
-
(13,188)		 Approved &
accounted for
2020, paid
2021 or later
$ 300,000
-
826,411
3,668,434
893,936
15,000
-
-
240,834
1,347,827
13,633		 2020
$ 300,000
-
826,411
3,668,434
930,627
15,000
-
-
287,834
1,347,827
13,513		 2019
$ 319,964
-
2,009,755
(2,402)
74,731
1,515,000
21,039
-
62,061
-
26,343
2,965,332 (2,881,761) 7,306,075 7,389,646 4,026,491

6 Net income / (expenditure) for the period

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2021 2020
$ $
Auditor's remuneration (excluding VAT):
Audit 6,538 5,612
Other services 6,423 5,502
Foreign exchange (gains) (337,760) (534,471)

20

The Haddad Foundation

Notes to the financial statements

For the year ended 31 December 2021

7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

The charity trustees were neither paid nor received any other benefits from employment with the charity in the period or prior period. No charity trustee received payment for professional or other services supplied to the charity (2020: none). No trustee expenses were incurred in the period or prior period.

8 Related party transactions

The charity received unrestricted donations of $6,000,000 from Claudio Haddad (2020: $nil), $6,000,000 from Rosalie Haddad (2020: $nil), both members of the Board.

The charity made grant payments to Ensina Brasil, an organisation of which one of the Trustees, Claudio Haddad, is a Board member, of $300,000 (2020: $300,000). The year end creditor balance was $600,000 (2020: $900,000).

The charity made grant payments to Insper Instituto de Ensino of $931,000 (2020: $1,400,000). Claudio Haddad and Tania Haddad are both Trustees of the charity and also on the Board of Insper Instututo de Ensino. The year end creditor was $6,510,693 (2020: $1,057,467).

The charity made grant payments to Harvard University, including grants to support the Brazil programs of the David Rockefeller Center for Latin American Studies and Harvard regional activity in Brazil of $300,000 (2020: $315,000). Claudio Haddad is chair of of the advisory council of the Brazil office of the David Rockefeller Center for Latin American Studies of Harvard University. He is also a member of the Global Council of Harvard University. The creditor at year-end was $900,000 (2020: $1,215,000).

The charity made grant payments of $650,000 (2020: $650,000) to the University of Chicago. Claudio Haddad is a member of the advisory council of the Becker-Friedman Institute of the University of Chicago. The creditor at year end was $250,000 (2020: $900,000).

Rosalie Haddad, a trustee, is also a director of the Associação Brasileira de Estudos Irlandeses, or the Brazilian Association of Irish Studies (ABEI). Students supported by the Foundation's grant to Trinity College Dublin are selected together by ABEI and Trinity College Dublin. Rosalie Haddad is also a board member of the Trinity Centre for Literary Translation at Trinity College Dublin. Grant payments of $285,040 (2020: $36,691) were made to Trinity College Dublin in the year. There was no balance outstanding at year-end (2020: nil). The creditor at year end was $676,902 (2020: $nil). 9 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

21

The Haddad Foundation

Notes to the financial statements

For the year ended 31 December 2021

10 Listed investments

Listed investments
Accruals
Grants payable
Cash
Fixed income
Cash held by investment broker pending reinvestment
Disposal proceeds
Equities
Alternative assets
Additions at cost
Net gain on change in fair value
Creditors: amounts falling due after one year
Grants payable within 1-5 years
Creditors: amounts falling due within one year
Investments comprise:
Fair value at the end of the year
Fair value at the start of the period		 2021
$ 43,612,871
23,483,790
(22,197,534)
5,534,479		 2020
$ 39,417,758
19,357,859
(19,628,263)
4,465,517
50,433,606
7,060,994		 43,612,871
195,862
57,494,600 43,808,733
2021
$ 9,380,589
26,103,367
14,949,651
7,060,994		 2020
$ 8,904,168
23,337,745
11,370,958
195,862
57,494,600 43,808,733
2021
$ 45,305
4,838,217		 2020
$ 42,812
3,698,676
4,883,522 3,741,488
2021
$ 8,695,318		 2020
$ 6,614,657

11a Creditors: amounts falling due within one year

11b Creditors: amounts falling due after one year

12 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1 ($1.33).

13 Events after the balance sheet date

The value of the charity's investments has declined by $6.3m since the year end to early September 2022 due to adverse market conditions. This decline is offset by revenues of $1m generated by the portfolio.

22