Ignota Foundation
(A company limited by guarantee)
Annual report and financial statements
For the year ended 31 December 2020
Charity Registration Number 1165304
Company Registration Number 09832028
Ignota Foundation
Contents
| Page | |
|---|---|
| Reference and administrative information | 1 |
| Trustees’ report | 2 - 4 |
| Independent examiner’s report | 5 |
| Statement of financial activities | 6 |
| Statement of financial position | 7 |
| Notes to the financial statements | 8 - 12 |
Ignota Foundation
Reference and administrative information
For the year ended 31 December 2020
Trustees
G Bennett (Chairman) H Blain B Youard
Company registered number
09832028
Charity registration number
1165304
Registered office
10 Queen Street Place London United Kingdom EC4R 1BE
Independent examiner
Buzzacott LLP 130 Wood Street London EC2V 6DL
1
Ignota Foundation
Trustees’ report
For the year ended 31 December 2020
The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of Ignota Foundation (’the charity’) for the year ended 31 December 2020.
Trustees
The trustees who served during the year were:
G Bennett H Blain B Youard
Small companies exemption
In preparing this report, the trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Constitution
The charity is constituted under a Memorandum of Association dated 19 October 2015. It is registered as a charity and the registered charity number is 1165304.
The charity is limited by guarantee and does not have share capital. All trustees are members of the charity and guarantee to contribute £1 in the event of winding up.
Organisational structure and decision making
In accordance with the Articles of Association, the charity shall always have at least 3 trustees, trustees are appointed or reappointed by ordinary resolution. Any decisions of the trustees are made either by majority or unanimous vote at trustees’ meetings.
OBJECTIVES AND ACTIVITIES
Policies and objectives
The principal objective of the charity is the advancement of education for the public benefit, in particular but not without limitation, by the provision of financial resources towards payment of university fees for children and young people who have insufficient means.
In order to further these objectives the charity may:
-
provide and assist in the provision of money, materials or other help;
-
borrow or raise and secure the payment of money for any purpose including for the purposes of investment or of raising funds;
-
set aside funds for special purposes or as reserves against future expenditure;
-
raise funds by way of subscription, donation, or otherwise; undertake and execute charitable trusts;
-
pay out of the funds of the charity the costs of forming and registering the charity;
-
establish and support or aid in the establishment and support of any other organisations and subscribe, lend, or guarantee money or property for charitable purposes
2
Ignota Foundation
Trustees’ report (continued)
For the year ended 31 December 2020
Public benefit
In setting the charitable objective and planning future activities, the trustees have considered the Charity Commission’s guidance on public benefit.
Going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
Impact of COVID-19
Due to the restrictions on travel brought on by the COVID-19 pandemic, the trustees have not been able to visit any schools in person to select new scholars. For this reason, there will be no new scholars for 2021-22. A number of new scholars will be selected for the school year 2022-23.
The trustees are implementing contingency plans to mitigate any negative effects and therefore do not believe that the effect of the coronavirus will be significant. The financial statements have therefore been prepared on the going concern basis.
ACHIEVEMENTS AND PERFORMANCE
-
92% of Ignota’s funds raised through donations and direct sponsorship from the founders has gone towards student scholarships with just 8% applied towards administrative and legal fees.
-
Since 2014, Ignota has funded scholarships for 17 students to attend university across England. Nearly two-thirds of our scholars are women.
-
To date, two graduates have achieved a First Class degree with Honours.
-
Four students graduated last year and are on target to have another three graduate this year. Two new scholarships have been taken on for 2020-21.
-
All students are achieving high grades and are on target to complete.
-
Our goal for the next decade is to send an additional 50 students to university, and we presently have full funding to ensure that 15 of these scholarships are guaranteed.
FINANCIAL REVIEW
Results for the year
A summary of the period’s results can be found on page 6 of this report and accounts. The net incoming resources for the period was £29,875 (outgoing resources 2019: £583). At year-end unrestricted funds stood at £254,282 (2019: £224,407).
Reserves policy
It is the policy of the charity to maintain unrestricted funds, which are the free reserves, at a level that is sufficient to cover management and administration and support costs and allows the charity to be managed efficiently. The charity is operated as a grant giving charity, and the trustees’ policy is to seek to distribute the income arising in each financial year. The trustees also have power to utilise capital insofar as they shall think fit. The remaining surplus is used in pursuance of the educational objectives of the charity.
The balance held as unrestricted funds at 31 December 2020 was £254,282 (2019: £224,407). The current level of reserves is considered by the trustees to be sufficient to cover the future objectives of the charity.
3
Ignota Foundation
Trustees’ report (continued)
For the year ended 31 December 2020
Trustees' responsibilities statement
The trustees (who are also directors of Ignota Foundation for the purposes of company law) are responsible for preparing the Trustees' Report (incorporating the strategic report and directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted 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 trust and of the income and expenditure, of the trust for that period. In preparing these financial statements, the trustees are required to:
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report was approved by the trustees and signed on their behalf by:
………………………… Mr G Bennett Chairman
Date:
4
Ignota Foundation
Independent examiner’s report to the trustees of Ignota Foundation
For the year ended 31 December 2020
I report to the trustees on my examination of the financial statements of the charity for the year ended 31 December 2020.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the financial statements of the trust are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your trust’s financial statements as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no matters have come to my attention in connection with my examination giving me cause to believe:
accounting records were not kept in respect of the trust as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the for “Accounting and Reporting by Charities: 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 (FRS 102) (effective 1 January 2015).”
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
………………………………
Simon Wax, ACA
for and on behalf of Buzzacott LLP
Statutory Auditor 130 Wood Street London EC2V 6DL
Date: 20 September 2021
5
Ignota Foundation
Statement of financial activities
For the year ended 31 December 2020
| Notes Income from: Donations 4 Total income Expenditure on: Charitable activities 5 Total expenditure Net income/(expenditure) Net movement in funds for the year Total funds brought forward Total funds carried forward |
2020 Unrestricted Funds £ 70,000 70,000 40,125 40,125 29,875 - 224,407 254,282 |
2020 Total Funds £ 70,000 70,000 40,125 40,125 29,875 - 224,407 254,282 |
2019 Unrestricted Funds £ 60,000 |
|---|---|---|---|
| 60,000 | |||
| 60,583 | |||
| 60,583 | |||
| (583) | |||
| - 224,990 224,407 |
All recognised gains and losses are included in the above statement of financial activities.
All of the charity’s activities derived from continuing operations during the above financial period.
The notes on pages 8 to 12 form part of these financial statements.
6
Ignota Foundation
Statement of financial position
For the year ended 31 December 2020
| Notes Current assets Cash at bank and in hand 10 Creditors: amounts falling due within one year 11 Net current assets Total net assets Charity Funds Unrestricted funds 13 Total Funds |
2020 £ |
2020 £ 254,282 254,282 |
2019 £ 234,457 234,457 (10,050) |
2019 £ |
|---|---|---|---|---|
| 264,332 | 224,407 | |||
| 264,332 (10,050) |
||||
| 224,407 | ||||
| 254,282 254,282 |
224,407 224,407 |
The trustees consider that the charity is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 (“the Act”) and members have not required the charity to obtain an audit for the year in question in accordance with section 476 of the Act.
The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and for preparing financial statements which give a true and fair view of the state of affairs of the charity as at 31 December 2020 and of its net resources expended for the year in accordance with the requirements of sections 394 and 395 of the Act and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charity.
The financial statements have been prepared in accordance with the special provisions applicable to small companies within Part 15 of the Companies Act 2006 and in accordance with FRS102.
The financial statements were approved by the trustees and signed on their behalf by:
~~…………………………..~~
Mr G Bennett Chairman
Date:
The notes on page 8 to 12 form part of these financial statements.
7
Ignota Foundation
Notes to the financial statements
For the year ended 31 December 2020
1. General information
The charity is a private company limited by guarantee and incorporated in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. Its registered office and principal place of business is 10 Queen Street Place, London, EC4R 1BE. The company registration number is 09832028 and the charity number is 1165304.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) (Charities SORP FRS102), ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (‘FRS102’) Section 1A, the Charities Act 2011 and the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS 102.
The accounts are presented in sterling and are rounded to the nearest pound.
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.
2.2 Fund Accounting
The general fund is an unrestricted fund which is available for the charity at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
2.3 Assessment of going concern
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
However, the COVID-19 pandemic provides an inherent uncertainty regarding the charity’s ability to continue as a going concern because it is not possible to predict the outcome of this unprecedented event. The trustees are implementing contingency plans to mitigate any negative effects and therefore do not believe that the effect of the coronavirus will be significant. The financial statements have therefore been prepared on the going concern basis.
9
Ignota Foundation
Notes to the financial statements (continued)
For the year ended 31 December 2020
2.4 Income
Income is recognised in the period in which the charity is entitled to receipt, the receipt is probable and the amount can be measured with reasonable certainty.
2.5 Expenditure
Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.
Support costs are those incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.
2.6 Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
2.7 Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
2.8 Liabilities and provisions
Liabilities and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
2.9 Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into Great British Pounds at rates of exchange ruling at the balance sheet date.
Transactions in foreign currencies are translated into sterling at the ruling on the date of the transaction.
Exchange gains and losses are recognised in the Statement of Financial Activities incorporating income and expenditure account.
9
Ignota Foundation
Notes to the financial statements (continued)
For the year ended 31 December 2020
2.10 Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charity for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
3. Employees
The average monthly number of employees, including directors, during the year was 3 (2019: 3).
4. Donations
| Donations received 5. Charitable activities Grants (note 6) Support costs (note 7) Governance costs (note 8) |
Unrestricted Funds 2020 £ 70,000 70,000 2020 £ 27,750 8,655 3,720 |
Unrestricted Funds 2019 £ 60,000 60,000 2019 £ 46,250 10,613 3,720 60,583 |
|---|---|---|
| 40,125 |
6. Grants
The charity makes grants to individuals in accordance with its grant making policy set out in the trustees’ report.
The grants payable during the year were for the following purposes:
| University tuition fees paid | 2020 Number 3 3 |
2020 Value £ |
2019 Number |
2019 Value £ |
|---|---|---|---|---|
| 27,750 | 5 5 |
46,250 46,250 |
||
| 27,750 |
10
Ignota Foundation
Notes to the financial statements (continued)
For the year ended 31 December 2020
7. Support costs
| Accounting fees Professional fees Foreign exchange and bank charges 8. Governance costs Independent examination fees |
2020 £ 4,080 4,575 - |
2019 £ 4,080 4,555 1,978 10,613 |
|---|---|---|
| 8,655 2020 £ 3,720 |
||
| 2019 £ 3,720 3,720 |
||
| 3,720 |
9. Trustees’ remuneration
No trustees received any remuneration in respect of their services as a trustee during the period ended 31 December 2020 (2019: £nil).
10. Analysis of cash and cash equivalents
| Cash at bank and in hand Total cash and cash equivalents 11. Creditors: amounts falling due within one year Accruals |
2020 £ 264,332 |
2019 £ 234,457 |
|---|---|---|
| 264,332 | 234,457 | |
| 1 2020 £ 10,050 10,050 |
2019 £ 10,050 10,050 |
All creditors related to unrestricted funds
11
Ignota Foundation
Notes to the financial statements (continued)
For the year ended 31 December 2020
12. Contingent liability
During the year, the charity agreed to pay the future tuition fees for 4 students during the year estimated to be £37,000 (2019: £37,000). This is dependent on the students making satisfactory progress on their respective courses. Should this condition not be met, the fees will not be payable by the charity.
13. Statement of funds
| Unrestricted funds General funds |
Brought Forward £ 224,407 |
Income £ 70,000 |
Expenditure £ (40,125) |
Carried Forward £ 254,282 |
|---|---|---|---|---|
14. Related party transactions
During the year ended 31 December 2020, a donation was received from Friends of Ignota Foundation totalling £70,000 (2019: £60,000). Guy Bennett, a trustee and Chairman of Ignota Foundation, is also a trustee of Friends of Ignota Foundation.
12