Charity Number 1166697 A Charitable Incorporated Organisation (CIO) Report and Unaudited Accounts Year ended 30 September 2021 ## **The Ethos Foundation Report and accounts Year ended 30 September 2021** |**Contents**|**Page**| |---|---| |Company information|1| |Trustees' report|2 to 8| |Independent Examiner's report|9| |Statement of Financial Activities|| |(Including Income and Expenditure Account)|10| |Cash flow statement|11| |Balance Sheet|12| |Notes to the accounts|13 to 16| ## **The Ethos Foundation Charity Information** ## **Trustees** G E Gordon Chair B Gordon L Blythe L Gakic (appointed 28 June 2021) ## **Independent Examiner** Monika Hazelton FCCA Winston Hazelton & Co Ltd 34 Arlington Road London NW1 7HU ## **Principal address** 18 Buckingham Palace Road London SW1W 0QP ## **Registered office** 18 Buckingham Palace Road London SW1W 0QP ## **Charity number** 1166697 ## **Bankers** Barclays 1 Churchill Place London E14 5HP ## **Solicitors** Bates Wells 10 Queen Street Place London EC4R 1BE 1 ## **The Ethos Foundation Registered Charity number: 1166697 Trustees report** The trustees present their report and accounts for The Ethos Foundation (the ‘Foundation’) for the year ended 30 September 2021. This report incorporates the strategic report of the Foundation, including its achievements and plans for the future. The trustees have adopted the provisions of the Statement of Recommended Practice (FRS 102 Charities SORP) on "Accounting and Reporting by Charities", effective 1 January 2019, in preparing the annual report and financial statements of the Foundation. ## **Structure, Governance and Management** ## **Structure and organisation** The Ethos Foundation was incorporated on 22 April 2016 as a Charitable Incorporated Organisation (CIO) with the Charity Commission in England. The charity registration number is 1166697 and the CIO number is CE006474. The Foundation is governed by its Constitution dated 22 April 2016. The registered and the principal office are situated at 18 Buckingham Palace Road, London, SW1W 0QP. The trustees who are also the members of the Charity have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities. The number of trustees shall not be less than three. There is no maximum number. The Foundation is under the overall control of the trustees who conduct the affairs of the charity. The trustees meet regularly to set the policy and overall direction of the Charity, to review its plans and to discuss the management of the charity's affairs. The first trustees are the Founder Members, and they are G Gordon and B Gordon. The Founder Members must appoint at least one Independent Trustee, who must not be a member of the Founder Members' family or a connected person. Lucy Blythe was appointed as Independent Trustee in 2016. Luka Gakic, the Founding Members son-in-law, was appointed trustee during the year. A former refugee and scholarship beneficiary, Luka is committed to upholding and advancing social mobility and compassion in British society. The Foundation has implemented policies and procedures for the induction and training of both new and existing members. ## **Governance and operating principles** The Foundation has implemented policies and procedures for the induction and training of both new and existing members. Trustees have continued to reflect broadly on the goals of the Foundation and how best to focus our efforts to fulfil our mission to promote the security and well-being of society. 2 ## **The Ethos Foundation Registered Charity number: 1166697 Trustees report** ## **Key management personnel** The trustees consider that they are the key management personnel of the Foundation in charge of directing, controlling, running and operating the charity on a day-to-day basis. All trustees give their time freely and no trustee received remuneration in the year. Details of trustees' expenses are disclosed in Note 4 to the accounts. ## **Objectives and Aims** ## **Principal Objectives and Aims** The Ethos Foundation's vision is a society in which individuals and communities thrive. The Foundation's mission is to promote the security and well-being of society. Our work is underpinned by our values: - Fairness - striving for greater equity and justice - Good citizenship – putting our responsibility to society first - Reflectiveness - building our knowledge and challenging ourselves Our overarching goal is to support the United Nations Sustainable Development Goals (SDGs) and in particular: - SDG No. 1 No Poverty – leave no one behind - SDG No. 10. Reduce inequality within and among countries The Foundation is currently focused exclusively on projects addressing societal issues in the UK. The trustees confirm that they have referred to the information contained in the Charity Commission's general guidance on public benefit when reviewing the Foundation’s aims and objectives and in planning future activities and setting the grant-making policy for the year. The trustees are satisfied that the objectives of the Foundation are met through supporting identified best-practice organisations invited to apply for grants. The Ethos Foundation does not accept unsolicited grant applications or proposals for funding. ## **Principal Activity, Review of Business and Achievements and Performance** The Ethos Foundation is a grant-making charity. The Foundation funds charitable causes and programmes selected by the trustees on the basis of alignment with the Foundation’s mission, and regularly monitors our grantee’s impact. ## **Achievements and performance** During the Foundation's financial year grants were made to 22 charities totalling £1,363,045 (2020: 31 grants totalling £1,028,563) representing a 34% increase in funding on the previous year. 3 ## **The Ethos Foundation Registered Charity number: 1166697 Trustees report** ## **Portfolio of principal charity partners** **The Childhood Trust** received £625,000 (2020: £640,000) in unrestricted funding. The Childhood Trust (the Charity) is London's child poverty charity, dedicated to alleviating the impact of poverty on children and young people living in the UK’s capital. The funding covered a proportion of the Charity's core costs as well as supporting the Charity's match funding campaigns. Trustees recorded their satisfaction with the performance of the Charity against a backdrop of continuing challenging circumstances for children and young people due to lockdowns and school closures. Faced with the ongoing national emergency arising from the COVID-19 pandemic, the organisation delivered vital support for its partner charities fighting against the impact of child poverty in London. During their last financial year, the Charity raised £6.6 million for charitable projects primarily via the Christmas Challenge 2020 and Champions for Children 2021 summer campaign, consolidating the growth in funding that followed the outbreak of the COVID pandemic. Over 290,000, or approximately 1 in 3 of the 800,000 children living in poverty in the capital, were supported through the Charity’s work to alleviate the worst economic, social and emotional effects of the pandemic. The Charity's advocacy work also intensified, further raising awareness of the devastating impact of the coronavirus epidemic on the capital’s most disadvantaged children giving them a voice. **The Cabrach Trust** ('the Trust') received £230,000 in unrestricted grants (2020: £185,000). The Trust’s vision and long- term ambition is to foster sustainable regeneration within this small rural community in NE Scotland. In support of this aim the Trust’s mission is to provide economic and social development opportunities in the Cabrach, creating employment and attracting new visitors to the area to celebrate and protect the cultural heritage, wild landscape and history. During the year sufficient match funding was secured by the Trust for the Ethos Foundation’s £2,000,000 capital pledge to be activated, although draw down had not yet commenced at year-end. The funding enabled final design and planning for the Cabrach Distillery & Heritage Centre to be carried out with construction expected to commence in 2022. **Thrive at Five** is a new collective impact initiative to achieve sustainable improvements in terms of school readiness as measured in reception year. The overarching vision for Thrive at Five is a society that cherishes children’s development in the early years and where every child can thrive and achieve their full potential. To develop the framework the organisation plans to run a number of place-based community pathfinders across the UK, the first of which is in Stoke on Trent in partnership with the Local Authority, focusing on two wards Bentilee and Abbey-Hulton. Thrive at Five, entered into a funding agreement with the Foundation and was granted £333,334 as first instalment of a £1 million threeyear unrestricted grant agreement with the new organisation. 4 ## **The Ethos Foundation Registered Charity number: 1166697 Trustees report** ## **Achievements and performance, cont.** The Foundation continued its long-term support for the **Beacon Collaborative** with the aim of building a stronger civil society by encouraging people to use a greater level of their private assets for public good. Beacon is an advocate for philanthropy as a force helping shape our society. An additional £20,000 was donated in 2021 (2020: £20,000). The Foundation’s **miscellaneous smaller grants** totalled £154,711 in 2021 (2020: £127,313), supporting a variety of good causes. The increase in the Foundation’s smaller grant-making activity was largely in response to the COVID-19 epidemic and emergency appeals received from a range of charities to which we were able to respond in some cases, with grants which were mainly unrestricted. ## **List of charities funded in the year** |**of charities funded in the year**|| |---|---| ||**£**| |The Childhood Trust|625,000| |The Cabrach Trust|230,000| |Thrive at Five|333,334| |Beacon Fellowship|20,000| |**Grants below £20,000**|| |ACMS|| |Ashoka UK|| |Bail for Immigration Detainees|| |Big Issue|| |Braemar Community Limited|| |City of London Sinfonia|| |Distillers' Charity|| |Durham University|| |Focus on Labour Exploitation|| |Grange Park Opera|| |Opera Holland Park|| |Quintessentially Foundation|| |Royal Academy of Dance|| |Royal Marsden Cancer Charity|| |Royal Philharmonic Orchestra|| |St John Ambulance|| |Together TV|| **Subtotal** 154,711 **Total Granted** 1,363,045 5 ## **The Ethos Foundation Registered Charity number: 1166697 Trustees report** ## **Grant Making** The Foundation will normally apply most of its annual income to charitable causes selected by its trustees. Grant-making decisions will aim to honour and build upon the Foundation's historic philanthropic efforts, and to build positive impact going forward. The Foundation's giving is informed by a multi-generational family commitment to philanthropy. From time to time, the Foundation may identify new focus areas and will conduct research and due diligence to identify the charities best placed to make a difference within the particular area of need. Those identified will be invited to apply for support. Upon invitation, potential grantees are formally invited to work with the Foundation in preparing grant materials for proposal development and review by the trustees. Trustees assess all large grants made, with a particular focus on ensuring that charities supported by the Foundation are well governed and have sufficient reserves to provide for their financial sustainability following a set of guidelines as a framework for grant-making decisions. ## **Risk management** The trustees have a risk management strategy that comprises: - Regular review of the risks the Foundation may face and updates to the Risk Register - The establishment of systems and procedures to mitigate those risks identified - The implementation of procedures designed to minimise any potential impact on the Charity should those risks materialise. - Monitoring the impact of grants awarded ## **Conflict of interest** Conflict of interest is mitigated by keeping the conflict of interest register up to date and following procedures stated in the Constitution for trustees to abstain from certain decisions if this is deemed necessary. Founder Members or a member of the Founders' family shall not be considered to be in a position of conflict of interest merely by virtue of being a trustee of, or being otherwise connected with, a charity connected to a Founder Member or a member of the Founders' family including but not limited to: The Childhood Trust (Registered Charity No 1154032), Distillers' Charity (Registered Charity No 1038763), The Cabrach Trust (Scottish Charity no SC043771) and Thrive at Five (Registered Charity No: 1195059). ## **Financial Review** **Review of Statement of Financial Activities (Including Income and Expenditure Account)** Total income for the year was £999,999 (2020: £999,999) and total expenditure was £1,394,887 (2020: £1,037,739). The overall deficit was £394,888 (2020: Deficit of £37,740). Reserves at the year-end were £168,487 (2020: £563,375) all of unrestricted funds. ## **Principal funding sources review** The Foundation’s principal source of funds was donations from the Founder Members' family trust. The family's trustees have been notified of the conditional capital grant pledged towards The Cabrach Trust. We are confident that the Foundation will continue to have sufficient funds to meet its grant obligations. 6 ## **The Ethos Foundation Registered Charity number: 1166697 Trustees report** ## **Reserves policy** The trustees seek to retain a prudent level of reserves. The reserves policy of the Foundation accords with the Charity Commission's guidelines and comprises the following two elements: - To underpin the running of the Foundation with six month's running costs - Within the six months running costs identify those costs that will enable the Foundation to meet its obligations to staff and other stakeholders whilst removing unnecessary expenditure. As of 30 September 2021, six months' running costs of the Charity as described above are approximately £10,000. Unrestricted reserve levels are reviewed annually in line with an annual planning and budgeting process and monitored throughout the year. ## **Investment policy** The trustees take a very conservative view regarding the investment of surplus funds. Under the Constitution, the Foundation has power to make any investment which the trustees see fit after obtaining advice from a financial expert as the trustees consider necessary and permitted to do by the Trustee Act 2000. The trustees have considered the most appropriate policy for investing funds and have decided funds invested in bank accounts currently meet their requirements. ## **Looking forward and plans for future** Following the financial year end the Foundation received donations from its Chair totalling approximately £48 million. The newly received capital constitutes the Foundation’s pool of charitable resources for future grant-making. The funds will provide increased opportunity for the Foundation to drive forward its mission to promote the security and well-being of society in the UK. In line with the wishes of the Founder Members, it is planned that these funds will be fully granted, in support of the Foundation’s mission, by 31st December 2035. The Foundation aims to spend down its endowment. ## **Fixed Assets** The Foundation has no fixed assets. ## **Trustees** The trustees of the Charity had no beneficial interest in the funds of the Charity and they were as follows: G E Gordon Chair B Gordon L Blythe L Gakic (appointed 28 June 2021) 7 The Ethos Foundatlon Reglstered Charity number.. 1166697 Trustses report TTuJt•e• r¢spon8lbililies The IrLisleeb iiie Te$￿n81b1e for preparing the rèport and a¢¢run15 in accord￿¢9 wlh appllcablo arhd fèoi11a￿ons. The lavi appliGablq tD chatilies iii &igland and Wales requiies tho trustees to prepare ￿Count$ I ch I￿ancIal per￿. Under that law the trusteas hAve e1￿le￿ to prgpwe thè ac￿)￿￿￿ In aceordance with United ￿'n9(toM Generally A￿epted Accounting practi￿ junited King&sm A¢¢ouiilin9 Standar¢s and apph"cablv lawl. Under the applr¥ble law lrnsle88 musl not aFprove the account$ unkss t￿Y are satisfied that thAy giv¥ a tr.iè ap.d laif view ol the 51ale ol Affairs of the comp8iiy ul the incorne or expendrture of the company f¢y that period In preparin9 Iliese accounts. bye Irusleos are required to.. select suitable a¢¢Dunling pnlr,ies and the11 apply Ihem Gonsislenlly • observe the me'thods and pnnciples ol Clidiilies SORP • make judg¢m•nt8 and eÈtiM?les Ihot are reasonable and prudenl prepere the ac1￿￿nts on the g(ing ccfftcern baÈl8 unless rt Is Inapproprote lo p￿sume that the charity Vi111 conlinug in operation s￿le whether apolica0￿ AcLxiunlSw Sta￿ards and Slal6ments ol Recommended PTrclice Iiave been lolhwAd SLIbje￿ to any mAl•rial departures disclosed and explatr*d In the f￿aPG￿l statements The trustees arp. resFonsible lor keeplrYJ adgquate a¢counling reco￿8 that are sulficienl lo show and g.XPl8111 t1￿ ¢h8rrty Iransacaions and disdose with reA8onable accuracy al 8iiy lime itr.e financijl posilion of the c￿rrtY and enable them to ensure that Ihe 8(Kounls comp'y ivilh tho Ch8ribes Act 2011, the Consliiuli¢Jn and willi t1￿ requlrgments ol the Slalomenl of Recomrnendpd PlaC￿e (sofip ?tXJS1 AcLounling and Re￿rtIng ty Chants"es. 8$ th*il as that that they arp prepared In accordafflcé wrth tho Financ￿ Rep)rtiw Standard appl'cable to Ihg Unrtfjd KingdDm and Republic of Irelané {I.-Insib* lor safoguording th8 a￿et5 of Ihp FoundotKbD and for laking reasonable Slcps lor the wevenlh)n and dp*eLlion ol fiaud an(1 o¢her Irregulanles. The trustees grè r#*￿nSIble for iho maint8nanc8 and integrity ol the c￿￿orate ￿¥1 fifjanoal Inlormalion Includ￿ on the Charity's website. ThiB was oved by the board on on its tsehalf. G Gardon Founder Mernber Indopendont oyamlnor'• r#ptsrt to tho trustees 01 Tl)e Ethos Foundatioii Year ended 30 S•ptombBr 2021 I report On the accounts of the Fwndati¢)n Ioi'mo year 8n¢ed J) Septembe. 2021, wlii=Ii i))fflFMise the sts[￿nI ol Financ￿1 Auvil•S. thè Cash FI￿ Salement ai¢ Ihtr Balante S￿¥￿1 Mii[I Ilith rf*'aied rtr)tes These accounts h￿￿ teen Fxepated w at£oidMI)rE Nilli IIV. cYfA)iii%ing Wiues Sei Ihersn d the reou¥ernents of Ac£oiiTiliiThJt dri(1 RepniliN hy fhapli&s Slalefflert ol ftectynMe￿ed P1dLthc￿ aviAi￿[l1& to clianlies wepanng ¥&-J￿1¢￿tr In ￿tt￿r￿n¢￿. Yv)Ih the Fin8ncig1 Reporting n0101 Chwb•8 8L-nd21 rd •ppk"fy?trAp ￿ Ih? IIK ard Regubh¢ epf Ir•land Irr4S102 j l•fle¢tsoE l January_ SORP FRS 102, the FirkeNal Reportin9 siafid8￿ appli¢4ble In the UK Hcpublbc Df Irebnd IFR61021 and',no Ghariiies 2011 Thi4 rewt r8 maye yolEly to Ihp Clidrity's TrusIL￿. É¥$ a body P•ty has bè* undertaken go t￿1 l slalè lo lTr.è trust*￿ IhoEE maltei¥ l ¢l."ii I￿111 Iv.(I li) IhÉ_11n in Indeptncenk Examinerfj r¥'.Iiil riiiil Ii)I riij lAh￿r rNJri-.ose i ) tne fulksi ex￿nI p¢imiiwa by law. i (Jo n(rt ￿￿ept or respofisiblity lo arryone other Ihai the fharity aid t* Ch9nfy'$',ius*es &8 a bcty, lor Tr.¥ wryK for INS rérth u lorthe lom￿. Re¥pÈctl¥¥ re¥p¢>titsSbNIIIw6 tsf Iru$i&89 and gxamin¢r The Irus*es ale responsible Icr the PFepw8tion ol the ￿￿15, Th¢ lius￿e8 Corffjltt¥￿*I * audll nol ￿Quire1j for Ih19 pe11￿j uTh(kf soelion 144Q) of Ihe Charl￿$ 2DI1 jlha Act) that iDL*pen¢Jent examinabwi IB fieejod Yne thaill*S sr¢$s In¢thng É250,C(K) and I prn qualili* to bfideriake the exafflivtion t•ln9 a qU￿rf￿￿ membercf A¥scc Bliw ot UibiiL'fExI Corlif*d A(LOiin'AlI'.s IhC.P.AI Hwini 88b¥fied rysplf th•1 the ehortrf is Trot subjtyx lo mder is di¥bè $3r indeperdent exam'nalion. * Is my re9P0*1t¢bty10 . QXE¥miTrc IhQ ac:ounis under secwthi 1115 of the ACI. . lo follow thè y¢cedure6 ai(J 0014n ITI Iho ggnèial o￿t￿n$ gfven ty the Ch￿lty Cummissivn uii(*¢ sec11L￿ 145lsllbl cf tr.e Aci. and * ￿ Stale ￿[h￿ panicular nxtters ha￿ CDm¥ iv rriy dile1￿￿)￿ Boslts tsl Indèpèndant •xamln•r'• r•pvrt My examinalhn eèired out in a￿0￿&￿ee ￿1￿ the thr¢aicfis tyven by tho Chan"ty CO￿￿1$510n An ex8min$lion InciudLs ts roi'iew ol tre aGrountir9 rettrtos kepi ￿ the L*aiity ¢omparison of Ihe ￿¢0￿￿ts pr¢senled wiln thoBe rewds It a*0 Inclu¢Je$ conside-a'.ion of any un&uai rterns or cl$Josura5 n the 3ec0uni¥, arsy segking 8xpl3t￿n5 11[Itri yiiij IiustÈe$ eonc*mirKJ ani SLKth matters. Tne ￿(rea￿eS Lndertakeri uu pivvKlv al Il* &virten-e that w)u bo r•wJi'eO in an aLHlrt and corbSe4uEiiIIy ITU QVII)W 15 given os kn W￿￿.1her Ih* x.count$ creaeDt 'Iwo lair wj Iliv I¢￿TIl￿ I#iTited to thi>se rnalters Gel Oknt m thè sIaler￿an% tr9￿. ￿￿ependent exomlller￿ 8tal8ni•nt In rr.nnfic.Iion wilh my exaw.Inaiion. ro matter na$ Com? 10 gtien-.iw. 111 *,hich gNes me reasonable sause lo believe lh* in gry malergl rcsthy*tt* rwuireThaow, . to keep accounting ieccfds In a¢¢ordoncc wilh roethon 1JU ol tha Lha.4￿5 Aa." and 10 prepa,'e Bc¢owls in a and content set In tho Chail'.ies (A¢WUnlS ¥¢J ReFfjrtsl Ileguiaiiwg 20W c￿er than 9ny row¥cmb?nt Ihal Ihe acco￿15 g'vo a.vw Iwirf, vi¥w wliili is no.. have not boery mol,. C*r 121 IQ Wjhlch. In my oplAotb, sttèrrtnn Shou￿ tE dr*Mn Iti to enabk a t*Dper UTMlor￿an￿hty of *e ccijnts to be leached. lknik• Hozelkn FCCA Indep¢n.*n', c>amiN¢ W noion HaE￿￿Tr & LC Ltd Chart8ltsd Cortif od Ac¢ountants 34 Road NWI THU 24 June 2022 ## **The Ethos Foundation Statement of Financial Activities (Including Income and Expenditure Account) for the year ended 30 September 2021** |**Notes**
**Income**
**Income from:**
Donations
**Total Income**
**Expenditure**
**Expenditure on:**
Charitable activities
2
Other expenditure
2
**Total Expenditure**
**Net movement in funds**
**Reconciliation of funds:**
**Total funds brought forward**
**Total funds carried forward**|**Unrestricted**
**Funds**
**2021**
**£**
999,999|**Restricted**
**Funds**
**2021**
**£**
-|**Total**
**Funds**
**2021**
**£**
999,999
999,999
(1,383,322)
(11,565)
(1,394,887)
(394,888)
563,375
168,487|**Total**
**Funds**
**2020**
**£**
999,999| |---|---|---|---|---| ||999,999|-||999,999| ||(1,383,322)
(11,565)|-
-||(1,034,785)
(2,954)| ||(1,394,887)|-||(1,037,739)| ||(394,888)
563,375|-
-||(37,740)
601,115| ||168,487|-||563,375| ## **Continuing operations** All of the above results in the current and comparative years are derived from continuing activities. ## **Other recognised gains and losses** There were no other recognised gains or losses other than those stated above. ## **Movements in funds** Movements in funds are disclosed in Note 8 to the Accounts. ## **Comparative figures** See note 15. 10 ## **The Ethos Foundation Cash Flow Statement** ## **for the year ended 30 September 2021** |**Cash generated from operations**
Net movement in funds
Adjustments for
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Net increase/(decrease) in cash**
Cash at bank and in hand less overdrafts at start of the period
**Cash at bank and in hand less overdrafts at end of the year**
**Consisting of:**
Cash at bank and in hand at end of the period|**2021**
**£**
(394,888)
494,933
792
100,837
100,837
60,001
160,838
160,838|**2020**
**£**
(37,740)
(5,775)
(5,116)| |---|---|---| |||(48,631)| |||(48,631)
371,387| |||60,001| |||60,001| 11 The Ethos Foundation Balance Shoot as at 30 September 2021 Ch￿ty Number 1166691 CIO No CECQ6474 Not•$ 2021 2020 Curr•nl 488ets Deblors Cash al bÈhk ond in hand 505,774 .001 565,775 160.838 171,679 Creditor¥: amounts lalllng due wilhln on¥ yq¥r 13.1921 12,400) Net curronl asset# 168,487 3,375 Nét 48••t• 168.487 3,376 Fund8 Unr¥slrided Funds Restricted Funds 168,487 3,375 Total funds 168487 583 375 ApprO￿￿Y the S*3ned on ils behalf by.. G Gordon Foun1J￿ Membrr 12 ## **The Ethos Foundation Notes to the Accounts** ## **for the year ended 30 September 2021** ## **1 Accounting policies** ## _**Basis of preparation**_ The financial statements have been prepared under the historical cost convention (unless otherwise stated in the relevant policy or note) and 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) (effective 1 January 2019) - Charities SORP FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011. ## _**Public benefit entity**_ The Charity meets the definition of a public entity under FRS 102. ## _**Going concern**_ The trustees consider that there are no material uncertainties related to event or conditions that cast significant doubt upon the Foundation's ability 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 considered the Charity's budget projection. The trustees made enquires and have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements. Following the guidance from the Charities SORP Committee on the implications of the COVID-19 epidemic on control measures and charity financial reporting, the Trustees considered the charity's sustainability in the light of COVID-19 and concluded that it had adequate reserves at present and that the principal sources of core cost funding were not under threat. ## _**Fund accounting**_ Unrestricted funds comprise income receivable or generated for the furtherance of the objects of the Charity without a specified purpose and are available as general funds. Expenditure which meet these criteria are charged to the funds, together with a fair allocation of support costs. Accumulated surpluses are available for use at the discretion of the trustees. Restricted funds are used for the specific purposes laid down by the donor (if any). Expenditure which meet these criteria are charged to the funds. ## _**Income**_ Total income is included in the Statement of Financial Activities. Income comprises principally donations to further the charities objectives. Donations are brought into income 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. ## _**Expenditure**_ Expenditure is recognised once there is a legal or constructive obligation to make a payment to third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure includes attributable VAT which cannot be recovered. Expenditure which is directly attributable to specific activities will be included in the relevant activity. ## _**Support costs**_ These are management and administrative costs and comprise expenditure not directly attributable to the generated funds, charitable or fund raising activities of the Charity, but relate to furtherance of the Charity's objectives. They are therefore allocated to the relevant category of resources expended based on estimates of the time devoted to each activity. 13 ## **The Ethos Foundation Notes to the Accounts for the year ended 30 September 2021** ## **Accounting policies, cont.** ## _**Cash at bank and in hand**_ Cash at bank and in hand includes bank balance held in a current account. ## _**Creditors**_ 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. ## _**Taxation**_ The Charity is not liable to corporation tax as it is a Registered Charity. The Charity is not VAT registered and can therefore not recover input tax on goods and services purchased. ## **2 Analysis of expenditure** |**Analysis of expenditure**|||||| |---|---|---|---|---|---| |Charitable donations
Support to Thrive at Five
Charity platforms administrative charges
Accounting-Independent Examiner
Legal fees
Travel and subsistence
Bank charges
Consultancy costs
Social media strategy costs
General expenses
Subscriptions
**Charitable activities**
Grants
Support costs
**Other expenditure**
Support costs
**Total expenditure**|**Raising**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-|**Charitable**
**activities**
**£**
1,363,045
11,354
35
-
-
-
-
-
-
-
-|**Support**
**costs**
**£**
-
-
-
2,880
7,698
-
136
2,667
3,997
405
2,670|**2021**
**2020**
**Total**
**Total**
**costs**
**costs**
**£**
**£**
1,363,045
1,028,563
11,354
-
35
1,239
2,880
2,400
7,698
-
-
(495)
136
181
2,667
3,209
3,997
151
405
-
2,670
2,491|| ||-
**Restricted**
**funds:**
-
-|1,374,434
**Unrestricted**
**funds:**
1,374,434
8,888|20,453
(8,888)
(11,565)|1,394,887|1,037,739
1,029,802
4,983| ||-|1,383,322|||1,034,785| |||11,565|||2,954| ||-|11,565|(20,453)||2,954| ||-|1,394,887|-||1,037,739| Support costs include all expenditure not directly related to the charitable activity. These are allocated to the relevant activity based on estimates of time devoted to each activity. All grants given were to institutions. Details and reconciliations of material grants given are presented and reconciled in the Trustees' Annual Report. ## **3 Net movement in funds** **Net movement in funds 2021 2020 £ £** This is stated after charging: Independent examination 2,880 2,400 14 ## **The Ethos Foundation Notes to the Accounts** ## **for the year ended 30 September 2021** - **4 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel** |**Travel cost**|**2021**
**£**
-|**2020**
**£**
(495)| |---|---|---| The trustees did not receive any remuneration for services to the Charity during the year. The Charity had no employees during the period, and therefore staff costs were nil. |**5**
**Debtors**
Funds to which entitlement conditions have been met
Other debtors
Prepayments
**6**
**Creditors: amounts falling due within one year**
Deferred income
Other creditors
**7**
**Unrestricted Funds**
At the beginning of year
Donations incoming
Resources outgoing
At the end of the year
**8**
**Analysis of net assets between funds**
**2021**
**Unrestricted**
**Funds**
Current assets
171,679
Creditors: amounts falling due within one
year
(3,192)
168,487|**5**
**Debtors**
Funds to which entitlement conditions have been met
Other debtors
Prepayments
**6**
**Creditors: amounts falling due within one year**
Deferred income
Other creditors
**7**
**Unrestricted Funds**
At the beginning of year
Donations incoming
Resources outgoing
At the end of the year
**8**
**Analysis of net assets between funds**
**2021**
**Unrestricted**
**Funds**
Current assets
171,679
Creditors: amounts falling due within one
year
(3,192)
168,487|**2021**
**Restricted**
**Funds**
-
-|**2021**
**£**
-
10,194
647|**2020**
**£**
499,999
-
5,775| |---|---|---|---|---| ||||10,841|505,774| ||||**2021**
**£**
312
2,880|**2020**
**£**
-
2,400| ||||3,192|2,400| ||||**2021**
**£**
563,375
999,999
(1,394,887)|**2020**
**£**
601,115
999,999
(1,037,739)| ||||168,487|563,375| ||||**2021**
**Total**
**Funds**
171,679
(3,192)|**2020**
**£**
**Funds**
565,775
(2,400)| ||168,487|-|168,487|563,375| ## **9 Charity information** The Ethos Foundation is a Charitable Incorporated Organisation (the CIO) which has a principal office in England. Principal address and registered office is 18 Buckingham Palace Road, London, SW1W 0QP. 15 ## **The Ethos Foundation Notes to the Accounts for the year ended 30 September 2021** ## **10 Presentation currency** The financial statements are presented in Sterling. ## **11 Transactions with trustees** There was a donation received of £312, inclusive of gift aid, from the Chair of the Foundation, G. Gordon in strict support of The Distillers’ Charity 350th anniversary. The appeal for the funds took place in December 2021 and therefore the £312 donation was included in the deferred income. Also some legal costs of a charitable nature were met by the Foundation. On examination of these costs, it was established that they should have been paid by the Founders trustees instead. The amount of £10,194 is therefore included in other debtors and it was repaid back to the Foundation after the year end. ## **12 Liability of members** The members of the Charity (being the Charitable Incorporated Organisation, the CIO) have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities on wounding up. ## **13 Connected charities** Some of the Trustees of the Charity are also Trustees of the following (but not limited to) organisations: The Childhood Trust (Registered Charity 1154032), The Cabrach Trust (Scottish Charity SC043771) and Thrive at Five (Registered Charity 1195059) that received material donations as noted in the Trustees' Annual Report. ## **14 Accounting period** 30 September continued to be a preferred date to report the achievements of the Charity. - **15 Statement of Financial Activities (Including Income and Expenditure Account) for the year ended 30 September 2020 (comparative figures)** |**Notes Unrestricted**
**Funds**
**2020**
**£**
**Income**
**Income from:**
Donations
999,999
**Total Income**
999,999
**Expenditure**
**Expenditure on:**
Charitable activities 2
(1,034,785)
Other expenditure 2
(2,954)
**Total Expenditure**
(1,037,739)
**Net movement in funds**
(£37,740)
**Reconciliation of funds:**
**Total funds brought forward**
601,115
**Total funds carried forward**
563,375|**Notes Unrestricted**
**Funds**
**2020**
**£**
**Income**
**Income from:**
Donations
999,999
**Total Income**
999,999
**Expenditure**
**Expenditure on:**
Charitable activities 2
(1,034,785)
Other expenditure 2
(2,954)
**Total Expenditure**
(1,037,739)
**Net movement in funds**
(£37,740)
**Reconciliation of funds:**
**Total funds brought forward**
601,115
**Total funds carried forward**
563,375|**Restricted**
**Funds**
**2020**
**£**
-|**Total**
**Funds**
**2020**
**£**
999,999| |---|---|---|---| ||999,999|-|999,999| ||(1,034,785)
(2,954)|-
-|(1,034,785)
(2,954)| ||(1,037,739)|-|(1,037,739)| ||(£37,740)
601,115|-
-|(£37,740)
-| ||563,375|-|(37,740)| 16