2022-07-31-accounts - Stephen Taylor Foundation

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Stephen Taylor Foundation

Report and financial statements

For the year ended 31 July 2022

Charity Registration Number 1168032

Stephen Taylor Foundation

Contents
	Page
Reference and administrative details	1
Trustees’ report	2
Independent auditor’s report	5
Statement of financial activities	9
Balance sheet	10
Statement of cash flows	11
Principal accounting policies	12
Notes to the accounts	14

Stephen Taylor Foundation

Stephen Taylor Foundation

Reference and administrative information

For the year ended 31 July 2022

Trustees Mr M E Taylor (Chair) Mrs L J Taylor Mr R J Walker Charity registered number 1168032 Registered office 65-66 Lincoln’s Inn Fields London WC2A 3LH Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers UBS AG 5 Broadgate London EC2M 2QS Solicitor Farrer and Co 65-66 Lincoln’s Inn Fields London WC2A 3LH

Stephen Taylor Foundation

The trustees present their statutory report along with the financial statements of the Stephen Taylor Foundation for the year ended 31 July 2022.

The financial statements have been prepared in accordance with the accounting policies set out on pages 12 and 13 and comply with the charity’s governing document, the Charities Act 2011 and “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 United Kingdom and Republic of Ireland (FRS 102).

Structure

Stephen Taylor Foundation (“the charity”) is a charitable incorporated organisation (CIO), not having a share capital and was incorporated on 5 July 2016. It operates in accordance with a governing document adopted on 5 July 2016. If the charity is wound up, the members have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

Governance and Management

The trustees (who are the key management personnel of the charity) make the key decisions about the conduct of the charity. The trustees do not receive any remuneration for their services to the charity.

Recruitment and Appointment of Trustees

Trustees are appointed in accordance with the charity’s governing document which states that there must be a minimum of three charity trustees.

The trustees of the charity during the year ended 31 July 2022 and up to the date of approval of the financial statements were:

Trustees

Mr M E Taylor (Chair) Mrs L J Taylor Mr R J Walker

Trustee Induction and Training

The charity trustees control the charity and its funds. Each trustee is made aware of their duties as a trustee upon appointment and accept their responsibility to keep up to date with changes in statutory requirements that affect the role and responsibilities of trustees.

Risk Management

Business decisions and the associated risk factors are considered at least annually. As part of this process the internal controls that are in place are reviewed. Internal control risks are minimised by a clear system of delegated authority and control, and procedures for the authorisation of all financial transactions. The trustees are satisfied that these are currently adequate to manage and reduce the risks identified.

Objectives and Activities of the Charity

The objective of the charity is to promote, for the public benefit, the exclusively charitable purposes through the awarding of grants to, and social investment in, charitable organisations.

Stephen Taylor Foundation

Achievements and Performance

During the year ended 31 July 2022, the Stephen Taylor Foundation awarded grants to eleven organisations that are either charities or clearly provide a public benefit in accordance with Charity Commission guidance.

These were predominately focused on the four overlapping themes that are close to the heart of the charity, namely; education, improving life chances in the inner city, reducing inequality and improving the environment.

The only exception was a grant of £50,000 to the UBS Optimus Foundation Ukraine appeal, which UBS match funded with £50,000 of its own. We think attaining match funding for such a good cause is an excellent use of the Foundation’s resources.

With regard to ‘core’ grants, grants were given to the Bear Cubs pre-school nursery and the youth club organiser, Youth First, in Deptford, Thomas Tallis School in Kidbrooke, Montessori Education for Autism in Greenwich and Toynbee Hall (social welfare) in Tower Hamlets. The Youth First grant of £200,000 was awarded to unlock considerably larger funding from local government and other grant givers, to facilitate the renovation of the Riverside Youth Club on the Pepys Estate in Deptford.

Educational giving was also augmented by a further payment of £12.84mn to King’s College, Cambridge as part of the project to build the second of two new student halls of residence, the first of which opened in 2019. These are/will be let to students at substantially below market rates to provide secure and attractive accommodation close to the College. This project will also provide long term funding (via c£450,000 per annum in surplus rental income from the new student residences) to the College, so it can provide thirty additional undergraduate places for students from disadvantaged backgrounds and provide bursaries and other assistance to students from lower income families. These new places are now being provided by the College, with the first ten additional undergraduates matriculating in October 2019. The second student’s residence was completed in October 2022 and is now fully let.

With regards to environmental matters the Friends of the Earth were given a general grant to assist their much admired environmental campaigning and a specific grant to help fund their important work against the relaxation of carbon limits during the COP 26 summit in Glasgow. The Foundation also made environmental grants to Prickles Hedgehog Rescue and the Celia Hammond Animal Trust.

Public Benefit Statement

The trustees of the charity have given due regard to the Charity Commission’s guidance on public benefit and have taken reasonable steps to ensure that this guidance has been considered in the activities undertaken by the charity to deliver its charitable purposes.

Financial Review

The results for the year are shown in the statement of the financial activities on page 9. During the year ended 31 July 2022, the charity received donations of £36,500,000 (2021: £12,562,500) and investment income of £254,036 (2021: £91,168).

The Foundation made grants to charitable organisations totalling £13,333,000 (2021: £8,716,850). Support costs for the year totalled £18,459 (2021: £29,465).

The balance of the charity’s reserves as at 31 July 2022 was £49,576,165 (2021: £26,173,588). The level of funds held by the charity will be utilised for further grant giving and also for the generation of further income.

Stephen Taylor Foundation

Reserves Policy and Financial Position

The level of reserves is monitored and reviewed by the trustees at least annually. The trustees believe that the charity should target to hold unrestricted reserves at a level which will enable further grant giving and social investment from both the capital of the charity and the income generated thereon.

Plans for Future Years

The charity plans to continue to expand its grant giving activities. This will involve supporting some existing beneficiaries, where their work continues to conform with the goals of the Foundation and the aims of the trustees, and by identifying new beneficiaries.

Trustees' Responsibilities Statement

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales 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 charity and of the income and expenditure of the charity for the year. 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 “Accounting and Reporting by Charities; Statement of recommended practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102;
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 charity will continue in operation.

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulation 2008 and the provisions of the governing document. They are also responsible for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

This report was approved by the trustees on and signed on their behalf by:

Mr M E Taylor

Chair of the Board of Trustees

Date: 14 April 2023

Independent auditor’s report to the Trustees of Stephen Taylor Foundation For the year ended 31 July 2022

Opinion

We have audited the financial statements of the Stephen Taylor Foundation (the ‘charity’) for the year ended 31 July 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and notes to the financial statements. The financial reporting framework that has been applied in their preparation is 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).

In our opinion, the financial statements:

♦ give a true and fair view of the state of the charity’s affairs as at 31 July 2022 and of its income and expenditure for the year then ended;
♦ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
♦ have been prepared in accordance with the requirements of the Charities Act 2011.

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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

Independent auditor’s report to the Trustees of Stephen Taylor Foundation For the year ended 31 July 2022

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

♦ the information given in the trustees’ annual report is inconsistent in any material respect with the financial statements; or
♦ sufficient accounting records have not been kept; or
♦ the financial statements are not in agreement with the accounting records and returns; or
♦ we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Independent auditor’s report to the Trustees of Stephen Taylor Foundation For the year ended 31 July 2022

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.

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

♦ The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
♦ We identified the laws and regulations applicable to the charity through discussions with management and from our knowledge and experience of the charity sector;
♦ We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited to the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102); and
♦ We assessed the extent of compliance with the laws and regulations identified above through making enquiries with management and those charged with governance and review of minutes of trustees’ meetings.

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

♦ Making enquiries of management and those charged with governance as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
♦ Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
♦ Performed analytical procedures to identify any unusual or unexpected relationships;
♦ Carried out substantive testing of expenditure;
♦ Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
♦ Investigated the rationale behind significant or unusual transactions.

Independent auditor’s report to the Trustees of Stephen Taylor Foundation For the year ended 31 July 2022

Auditor’s responsibilities for the audit of the accounts (continued)

How the audit was considered capable of detecting irregularities including fraud (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Agreeing accounts disclosures to underlying supporting documentation;
Reading the minutes of meetings of trustees; and

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

We did not identify any irregularities, including fraud.

A further description of our responsibilities for the audit of the financial statements is located 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 charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Katharine Patel

03 May 2023

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Stephen Taylor Foundation

Statement of financial activities

For the year ended 31 July 2022

Note Income from: Donations Investments – interest received Total income Expenditure on: Charitable activities Total expenditure 2 Net income (expenditure) and net movement in funds 4 Reconciliation of funds: Total funds brought forward at 1 August 2021 Total funds carried forward at 31 July 2022	Unrestricted funds £ 36,500,000 254,036 36,754,036 13,351,459 13,351,459 23,402,577 26,173,588 49,576,165	Year ended 31 July 2022 £ 36,500,000 254,036 36,754,036 13,351,459 13,351,459 23,402,577 26,173,588 49,576,165	Unrestricted funds £ 12,562,500 91,168 12,653,668 8,746,315 8,746,315 3,907,353 22,266,235 26,173,588	Year ended 31 July 2021 £ 12,562,500 91,168
				12,653,668
				8,746,315
				8,746,315
				3,907,353 22,266,235
				26,173,588

All activities relate to continuing operations. The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 12 to 15 form part of these financial statements.

Stephen Taylor Foundation

Balance Sheet 31 July 2022

Note Current assets Debtors 6 Cash at bank and in hand Creditors: amounts falling due within one year 7 Net current assets Net assets Charity Funds Represented by: Unrestricted funds Total funds	2022 £ 9,997,257 39,591,408 49,588,665 (12,500)	2022 £ 49,576,165 49,576,165 49,576,165 49,576,165	2021 £ 9,812,500 16,366,988 26,179,488 (5,900)	2021 £ 26,173,588
				26,173,588
				26,173,588
				26,173,588

The financial statements were approved by the trustees and signed on their behalf, by:

Mr M E Taylor

14 April 2023

Chair of the Board of Trustees

The notes on pages 12 to 15 form part of these financial statements.

Stephen Taylor Foundation

Statement of cash flows

Year to 31 July 2022

Cash flows from operating activities Net income for the year Interest received (Increase) in debtors Increase in creditors Net cash from (used in) operating activities Cash flows from investing activities Interest received Increase (decrease) in cash in the year Cash and cash equivalents at 1 August 2021 Cash and cash equivalents at 31 July 2022	Year ended 31 July 2022 £ 23,402,577 (254,036) (184,757) 6,600 22,970,384 254,036 23,224,420 16,366,988 39,591,408	Year ended 31 July 2021 £ 3,907,353 (91,168) (9,812,500) 200
		(5,996,115) 91,168
		(5,904,947) 22,271,935
		16,366,988

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents

Stephen Taylor Foundation

Notes to the financial statements

For the year ended 31 July 2022

1. Principal accounting policies

1.1 Basis of preparation

These accounts have been prepared for the year to 31 July 2022. The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or in the notes to these accounts.

The accounts have been prepared in accordance with “Accounting and Reporting by Charites: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the financial reporting standard applicable in the United Kingdom 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 Charities Act 2011.

The charity constitutes as public benefit entity as defined by FRS 102. The accounts are presented in sterling and are rounded to the nearest pound.

1.2 Critical accounting estimates and areas of judgement

There are currently no significant judgements and estimates made by the trustees in the preparation of the accounts.

1.3 Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a year of one year from the date of approval of these accounts.

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

1.4 Income recognition

Income is recognised in the year in which the charity is entitled to receipt, the amount can be measured reliably and it is probable that income will be received. Where income relates to future years, this income will be deferred. Donations received for the general purposes of the charitable company are included as unrestricted funds; grants and donations for activities restricted by the wishes of the donor are taken to restricted funds.

Stephen Taylor Foundation

Notes to the financial statements

For the year ended 31 July 2022

Principal accounting policies (continued)

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that ta transfer of economic benefit will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is included in the accounts on an accruals basis and includes attributable VAT which cannot be recovered.

Expenditure comprises the following:

a. The costs of charitable activities comprise expenditure related to the charity‘s primary charitable purposes, primarily the cost of grants awarded.

b. Support costs are the costs associated with the governance arrangements of the charity and the general running of the charity.

1.6 Debtors

Debtors are recognised at their settlement amount, less any provisions for non-recoverability. Prepayment are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

1.7 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 acquisitions.

1.8 Creditors and provisions

Creditors 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.

1.9 Taxation

Stephen Taylor Foundation is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

1.10 Fund accounting

General unrestricted funds are available for use at the discretion of the trustees in the furtherance of the general objectives of the charity.

Stephen Taylor Foundation

Notes to the financial statements

For the year ended 31 July 2022

2. Expenditure

Grants awarded (note 3) Support costs: Bank charges Audit and accountancy fees	Unrestricted 2022 £ 13,333,000 9,699 8,760 13,351,459	Total funds 2022 £ 13,333,000 9,699 8,760 13,351,459	Unrestricted 2021 £ 8,716,850 21,465 8,000 8,746,315	Total funds 2021 £ 8,716,850 21,465 8,000
				8,746,315

3. Grants awarded

Recipient organisations: . Bear Cubs Pre-school, Deptford . Celia Hammond Animal Trust . Friends of the Earth . King's College, Cambridge . Montessori Education for Autism . Prickles Hedgehog Rescue . Thomas Tallis School, Kidbrooke, London . Toynbee Hall . UBS Optimus Foundation . University of Oxford . Youth First Ltd	Total Funds 2022 £ 33,000 50,000 100,000 12,840,000 10,000 10,000 20,000 20,000 50,000 — 200,000 13,333,000	Total funds 2021 £ 33,000 — 50,000 8,500,000 10,000 — 20,000 40,000 — 50,000 13,850
		8,716,850

4. Net movement in funds

The net movement in funds for the financial year is stated after charging:

Current year: Audit fees Non audit fees	Total Total funds funds 2022 2021 £ £ 4,290 3,760 4,470 4,240

5. Trustees’ remuneration

No trustees received any emoluments for their services as trustees during the year (2021 - none). No trustees were reimbursed any expenses during the year (2021 - none).

Stephen Taylor Foundation

Notes to the financial statements For the year ended 31 July 2022

6. Debtors

HMRC gift aid repayment Accrued interest	2022 £ 9,812,500 184,757 9,997,257	2021 £ 9,812,500 —
		9,812,500

7. Creditors: amounts falling due within one year

Accruals	2022 £ 12,500 12,500	2021 £ 5,900
		5,900

8. Related party transactions

During the year, two trustees made donations to the Foundation totalling £36,500,000 (2021: two trustees made donations totalling £12,562,500).

There were no other related party transactions during the year requiring disclosure (2021: none).