2021-07-31-accounts

CHARITY REGISTRATION NUMBER: 1169379

The Horizon Foundation Trustees’ Report and Financial statements

31 July 2021

The Horizon Foundation

Financial statements

Year ended 31 July 2021

	Page
Trustees' annual report	1
Independent auditor's report to the trustees	21
Statement of financial activities	25
Statement of financial position	26
Statement of cash flows	27
Notes to the financial statements	28

The Horizon Foundation

Trustees' annual report

Year ended 31 July 2021

The trustees present their report and the financial statements of the charity for the year ended 31 July 2021.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts 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 UK and Republic of Ireland published in October 2019.

Reference and administrative details

Registered charity name The Horizon Foundation Charity registration number 1169379 Principal office 10 Westgate Close Norwich NR2 3NQ

The trustees

The trustees who served during the year and at the date of approval were as follows:

Mr Patrick Smulders (Chairman) Ms Kirkland Newman Smulders Ms Catherine Roe Mr Maury Shenk Chief Executive Officer Ms Samia El Tabari Auditor Lovewell Blake LLP Chartered accountants & statutory auditor Bankside 300 Peachman Way Broadland Business Park Norwich NR7 0LB Bankers Barclays Level 15 1 Churchill Place London E14 5HP Website https://horizonfoundation.info/

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Objectives and activities

a. Policies and objectives

The Horizon Foundation believes that education is the best tool to create change agents, enabling young people to support their communities in the future.

The Foundation's objects, as set out in its Constitution, are:

• The advancement of the education of women, children and young people, in particular those from refugee communities in the Middle East and Asia;

• The relief of women, children and young people in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage, in particular those from refugee communities in the Middle East and Asia;

• Any other charitable purposes according to the law of England and Wales in any part of the world and in such manner as the trustees may in their absolute discretion think fit.

In line with the Foundation's charitable objects, the trustees have agreed that:

Horizon’s vision is of inspired young people in the Middle East and Asia realising their full potential, promoting positive change and supporting their communities, despite the disadvantages of conflict.

Its mission is to build a community of well-educated, internationally-aware and inclusive change-makers who will foster positive change in their communities, in the Middle East and Asia. The Horizon Foundation affirms its commitment to this mission in reflection of its core values of respect, compassion, social responsibility and community engagement. The Foundation is a non-political and non-sectarian organisation.

Its Objectives are:

1) To support the development of conflict affected and refugee communities in the Middle East and Asia through the education of young people for whom such opportunities would not otherwise be available.

2) To develop an internationally-aware and inclusive generation with positive cross-cultural attitudes.

3) To support the development of conflict affected and refugee communities in the Middle East and Asia through community projects set up and led by Horizon scholars.

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Objectives and activities (continued)

b. Activities for achieving objectives

The Horizon Foundation pursues its objectives through three main related activities:

1) Scholarships and Grants: The Foundation offers educational scholarships to disadvantaged young people from the Middle East and Asia to complete their final two years of secondary education at leading boarding schools, an opportunity that would not otherwise be available to them. The Foundation also supports some of its scholars as they prepare for or complete their university undergraduate studies by bridging funding gaps unmet by other scholarship sources. Additionally, the Foundation offers one partial scholarship for undergraduate studies at a university in the UK or Europe. The Foundation may also administer undergraduate or graduate university scholarships for Horizon scholars if there is a donor ready to fully fund their university education. The Foundation’s university support is available only to scholars who received a Horizon scholarship to complete their high school studies. Providing scholarships and grants is the Foundation's primary activity.

2) Community Engagement: The Foundation partners with several multicultural schools around the world that promote community engagement and exchange amongst their student bodies and with the local community. Furthermore, the Foundation’s Community Engagement Initiative (CEI) encourages Horizon scholars to promote cross-cultural understanding at their educational institutions, in their host communities and back home. The Foundation supports scholar-led CEI initiatives which may include events showcasing dance or songs, storytelling, film screenings, awareness-raising, and short-term community projects. The purpose of the CEI is to strengthen the scholars’ role as cultural ambassadors, educating others about their cultures and realities as well as engaging in understanding cultures other than their own.

3) Seed Community Projects: The Foundation supports its scholars with a grant (seed funding) should they endeavour to set up projects serving their communities back home. Horizon scholars have the opportunity to apply for seed funding through a competitive process after they graduate from university, have gained some work experience and have been back home/in the region for two years or longer. A competitive selection process screens for projects that are youth-led and responsive to key community needs, particularly in the fields of education and mental health.

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Foundation’s vision, mission and objectives and in setting its grant making policy, criteria and selection processes as well as planning its future activities. The Horizon Foundation’s purpose is of public benefit because it enables talented young people to access an education beyond the financial means of their families. This significantly improves their life chances as well as those of their families. In the longer-term, the Foundation believes that its scholars will go on to help build their own communities which are mainly refugee communities suffering all the disadvantages to which refugees are subject. Horizon scholars also help to educate British and other young people, with whom they are at school, about people from different ethnic, economic and social circumstances to themselves, helping to change the way they view the world and to promote social cohesion.

The Foundation focuses on young people from refugee communities and areas of conflict, particularly Palestinians, Syrians, Tibetans and Afghans. In recognition that Britain is the host country of the Foundation and of its founders, the Foundation also supports refugees from its target communities who are settled in the UK, and where possible, British children from disadvantaged backgrounds.

The Horizon Foundation regularly reviews its objectives and activities to ensure the most effective use of its funds and the relevance of its work to the needs of its target communities. The Foundation has established partnerships with a number of schools which are all recognised internationally as educational institutions of excellence.

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Objectives and activities (continued)

c. Grant making policy

The Foundation’s criteria for funding school scholarships are discussed and aligned with its partner schools/committees which lead on the student selection process through their robust application procedures. Details of how to apply for scholarships are available on the partners’ websites (as indicated on the Foundation’s website). The Foundation participates in student selection and interviews all candidates nominated for its annual scholarships. Successful candidates sign a statement of commitment setting out the terms of the scholarship award including a commitment to support their communities when they are in a position to do so. Furthermore, the Foundation’s partners/schools sign an agreement or a memorandum of understanding (MoU) with the Foundation setting out the partnership terms, reporting and other requirements including safeguarding and data protection.

The Foundation also has documents on its criteria and application procedure for its Scholar Development Fund (pertaining to its University support and Community/Project funding). These documents are made available to its existing scholars. The Foundation also administers undergraduate or graduate university scholarships for Horizon scholars if there is a donor ready to fully fund their university education. The Foundation’s university support is available only to scholars who received a Horizon scholarship to complete their high school studies.

The Foundation’s officers assess applications received from scholars. The CEO may approve small grants (up to £6,500 for university funding, and currently £2,500 for CEI projects). The trustees approve any funding exceeding these amounts. All Seed Community Projects currently require trustee approval irrespective of the amount of requested funding. Scholars sign MoUs with the Foundation setting out the terms and requirements of their university and/or project funding.

d. Fundraising disclosure

Committed to their belief in the power of education, the Smulders family has made substantial donations to the Foundation over the years. The support of the Chairman and his family enables the Foundation to meet all of its commitments as they fall due.

The Foundation seeks to continue its charitable work through the careful stewardship of its existing resources and social network. Any fundraising activity is carried out by Horizon’s trustees, primarily the Chairman, and core staff. Horizon does not employ professional telephone or street fundraisers or commercial participators for fundraising activity. No complaints were received by the charity in respect of its fundraising.

The Horizon Foundation complies with all relevant statutory regulations, including the Charities Act 2011 and the Data Protection Act 2018 and the UK General Data Protection Regulation. The Foundation follows transparent practices and provides supporters with updates, reports and any information they request.

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance

In 2020/2021, the Horizon Foundation made grant payments of £424,415 (£483,121 in 2019/20). There were further grant commitments at the year end of £124,668 (£147,318 in 2019/20). A summary of this grant expenditure is shown below.

Activity
1) Education & Maintenance Grants	School	University Total
Commitments at 1 August 2020	(143,194)	(4,124) (147,318)
Reserve held by UWCI 1 August 2020	174,404	~~-~~ 174,404
Expenditure in the year ended 31 July 2021	504,337	17,923 522,260
Reserve held by UWCI at 31 July 2021	(130,765)	~~-~~ (130,765)
Total	404,782	13,799 418,581
Commitments at 31 July 2021	122,021	2,647 124,668
Total Education & Maintenance Grants per Accounts	526,803	16,446 543,249
2) Seed Community Projects			5,834
Total per Accounts			549,083

The Foundation expanded its reach in 2020/2021, resuming its partnership with Eton College and welcoming Latymer Upper School as a new UK partner school. Our partner schools continued to adapt to the coronavirus pandemic as necessary, safeguarding the students’ academic experience and attainment as well as their well-being. The Foundation also followed up closely on its scholars’ wellbeing, particularly during extended online learning periods.

Overall, the Horizon Foundation supported 36 scholars through its scholarships and grants in 2020/2021 (down from 42 in 2019/20). The reasons for this drop include the deferral of two scholarships for students who could not get their visa in time, suspending the scholarship of one school student and funding fewer university students during that year. The Foundation was also able to support a Horizon scholar in implementing a community project, benefiting 50 young participants in Bethlehem despite the pandemic restrictions.

Five school students were further supported with small top up grants to help them prepare for their university studies. Additionally, the Foundation facilitated mentoring opportunities for six Horizon scholars and the provision of expert guidance on studying and living in the US to another 16. The Foundation also supported the training of four Horizon scholars in effective communication and leadership skills and hosted three online networking events throughout the year in which a total of 29 current and former Horizon scholars participated.

As shown in the summary above, the majority of the Foundation's funding remained committed to its education activity (scholarships and grants at 87% of direct charitable expenses, down from 88% in 2019/20). The following sections provide an overview of the aims and impact of the Foundation's activities.

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance (continued)

Scholarships and Grants

The Foundation supports the development of conflict affected communities in the Middle East and Asia through the education of young people for whom such opportunities would not otherwise be available. The Foundation’s principal activity is to select and fund talented young people from refugee and other disadvantaged backgrounds to attend leading schools as a means of transforming their life chances, and in the longer term, benefitting their communities.

Horizon’s partner schools are internationally recognised educational institutions. In 2020/2021 these included seven of the United World College (UWC) network of international schools: UWC Adriatic (Italy), UWC Atlantic (Wales), UWC Maastricht (The Netherlands), UWC Mostar (Bosnia-Herzegovina), UWC Pearson College (Canada), UWC Red Cross Nordic (Norway) and UWC Thailand (Phuket). The Foundation’s partners in 2020/2021 also included Eton College (UK) and our new partner Latymer Upper School (UK) as well as Amala, a UK registered charity, delivering high school education in Jordan in response to the lack of secondary education provision for refugees in the country.

In 2020/2021, the Horizon Foundation supported a total of 36 scholars, of whom 21 were at school, five on the Amala High School Diploma Programme and 10 at university. The university students were previously supported by Horizon to complete their secondary education.

Horizon scholars are exceptional young people from the Middle East and Asia (particularly Palestinians, Syrians, Afghans and Tibetans). Scholars are selected according to rigorous criteria with the help of trusted local partners and the host schools. They are academically able and community driven, with a desire to become change agents. Scholars are typically 16 to 19 years old when they begin their penultimate year of secondary schooling. Horizon scholarships cover tuition and boarding fees, flights and incidental expenses as agreed with the Foundation’s partner schools.

The Horizon-Amala scholars tend to be slightly older (but under 25) as their education has been significantly disrupted by conflict, displacement and lack of educational opportunity in host countries. The Foundation supports Amala’s delivery of its blended learning programme to refugees in Jordan. The Amala High School Diploma Programme offers students a 15-month accelerated learning programme at pre-university level, comparable to other programmes such as the International Baccalaureate.

Pastoral care to Horizon scholars is provided by the schools and local partners with assistance, where necessary, of guardians appointed by the schools and the Foundation. Additionally, the Foundation follows up with its scholars to check on their general wellbeing to enhance support to its scholars as possible.

The Foundation supported the secondary education of 26 scholars at its partner schools/institutions in 2020/2021 (29 in 2019/20). As noted earlier, two scholarships were deferred for students who were unable to get their visas in 2020/21. Of the 26 scholars, 19 were placed at UWC schools, five on the Amala High School Diploma Programme, one at Eton College and one at Latymer Upper School (Table 1). UWC remains the Foundation’s main partner institution.

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance (continued)

Table 1: Scholar placement per school/institution - 2020/2021

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Partner School/Institution No. of Scholars
UWC Adriatic 2
UWC Atlantic 4
UWC Maastricht 4
UWC Mostar 2
UWC Pearson College 2
UWC Red Cross Nordic 1
UWC Thailand 4
Eton College 1
Latymer Upper School 1
Amala High School Diploma Programme 5
Total scholars at partner schools/institutions 26
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The majority of Horizon’s 26 secondary education students were Syrian (10) followed by Tibetan (8), Palestinian (6) and Afghan (1) and Iranian (1). The Foundation endeavours to achieve a balanced gender split and in 2020/2021 it was at 42% female and 58% male (52% female and 48% in 2019/20). The increase in male representation was partly because the majority of the Amala students tend to be male.

The total amount allocated to these secondary education scholarships was £404,782 in 2020/2021 (£436,679 in 2019/20 and £627,291 in 2018/19). This covered tuition and boarding fees, pocket money, travel and other essential expenses.

The Foundation’s Scholar Development Fund (SDF) provides additional support to enhance Horizon scholars’ study experience and community engagement at school, university and post-university. The SDF’s University Support addresses diverse needs that Horizon scholars may encounter while they prepare for university or complete their undergraduate studies. This support bridges funding gaps that cannot be filled by other sources.

Additionally, one partial university scholarship may be contested each year for undergraduate studies at a university in the UK or Europe (this scheme is currently suspended). The Foundation also administers undergraduate or graduate university scholarships for Horizon scholars if there is a donor ready to fully fund their university education. Only individuals who received support from Horizon in their final two years of schooling are eligible for this funding.

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance (continued)

In 2020/2021, the Foundation supported 10 scholars meeting various needs at university such as tuition and accommodation fees, maintenance, travel, books, educational resources and other incidental expenses (13 university students were supported in 2019/20). Furthermore five scholars, while being supported by Horizon at school, were assisted with university preparation costs including university application fees, visa fees as well as flights and living expenses after their graduation in instances where they were unable to travel home before joining university. The 15 scholars benefitting from University Support grants included Palestinians (9), Syrians (4), one Tibetan and one Afghan student. Horizon’s University Support adheres to a set application process and criteria as well as reporting requirements.

The 10 university scholars studied at reputable institutions in the Netherlands and the US:

• University College Maastricht

• University of Rochester (2 students)

• University of Richmond

• University of Florida

• Macalester College

• Methodist University

• Salve Regina University

• Case Western University

• Worcester Polytechnic Institute

The total amount allocated to University Support in 2020/2021 was £13,799 (£46,442 in 2019/20 and £54,900 in 2018/19). The drop in amount allocated in 2020/2021 is because two partial university scholarship recipients graduated the previous year.

Impact (scholarships & grants)

An independent evaluation of the Foundation’s work in 2016 confirmed the value of its scholarships and prompted it to focus the Foundation’s geographical outreach and formalise its funding procedures and agreements. The Foundation has further enhanced its impact assessment by developing a student database as well as strengthening its follow up procedures on, and support to, its scholars. It also links scholars to mentors and other specialised guidance as practicable as well as organises networking events for the scholars.

Monitoring Achievement

The Horizon Foundation keeps in touch with its scholars and assesses the impact of its support by monitoring the progress of its scholars at school, university and post-university. The Foundation regularly communicates with its scholars and visits them at their educational institutions. School visits are key to Horizon’s pastoral care and its school partnerships. School visits were put on hold following the Covid-19 pandemic; however, the Foundation sustained its pastoral care of and communication with scholars through regular virtual meetings.

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance (continued)

Over the years, gatherings for current and past scholars have been a regular aspect of the Foundation’s activities and networking amongst scholars has been encouraged. The Foundation has not been able to hold in-person gatherings since the pandemic. However, in 2020/2021, the Foundation hosted three online gatherings with Horizon scholars allowing 29 scholars to connect/reconnect with each other and with the Horizon team.

The first meeting consisted of a workshop attended by six Eton College graduates; the second event engaged 12 Horizon scholars based in the US and Canada (9 at university and 3 working); and the third meeting targeted 11 school students who were in the first year of their Horizon sponsored studies. Horizon’s Chairman and staff attended all these meetings.

Most Horizon scholars leave school with excellent results and are placed, with the help of their schools and the Foundation, in universities mainly in the US, the UK where possible, and increasingly Canada and Europe. The majority of Horizon’s UWC scholars benefit from the generous Shelby Davis Scholarship which is granted to UWC graduates to study at universities in the United States. The Shelby Davis Scholarship therefore strengthens the impact of Horizon’s UWC scholarships as scholars are presented with further opportunities. UWC also continues to expand its outreach to include scholarship opportunities at universities outside of the US. Similarly, the Amala education programme also leads to a recognised high school diploma. Amala is establishing progression pathways for its students which will enable them to pursue university studies on completion of the Amala high school diploma.

Nine of the ten UWC scholars expected to graduate in 2020/2021 did so successfully (the unsuccessful candidate resumed her secondary education elsewhere but without additional Horizon funding). Of the nine scholars who graduated, eight have secured university places with full scholarships and one embarked upon a gap year. The school graduates are now enrolled at reputable educational institutions in the UK and the US (Table 2). Their subject choices include International Relations, Biology, Biochemistry, Neuroscience, Economics, and Environmental Studies.

Table 2: Educational institutions joined by Horizon school graduates 2020/2021

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The UK University of Bristol (1)
The US Colorado College (1)
Lake Forest College (1)
Luther College (1)
Oberlin College (1)
Wellesley College (1)
Whitman College (2)
----- End of picture text -----

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance (continued)

The Foundation’s previous annual report mentioned that five 2019/20 school graduates took gap years. One is now studying at Concordia University in Canada, another at the Hebrew University of Jerusalem and one at the University of Amsterdam in the Netherlands. The remaining two are applying for university entry in 2022 in India and the US.

Below is a selection of testimonials from Horizon’s 2020/2021 school students, attesting to the impact the Horizon scholarships have had on their lives and future aspirations.

“Going to UWC with the help of a Horizon scholarship was the turning point in my life. It has made me aware of the socio-political issues of various countries. It has instilled in me genuine appreciation and respect for diversity in culture and thoughts. I became more confident to pursue my aspirations, and make my parents proud. I even felt well prepared to be part of a diverse community at college. I am currently a freshman at Wellesley College planning to major either in Psychology or Neuroscience.” Tibetan scholar, female

“My Horizon scholarship and UWC experience had a great impact on my life. It changed my behaviour and my outlook. I have learnt how to accept people for who they are, not for what I want them to be. As a refugee myself, when Horizon gave me this opportunity, I became more motivated to help other refugees. I decided to work hard because I hope to become a doctor and dedicate myself to help refugee children because they are the most vulnerable in society.”

Syrian scholar, male

“My UWC experience helped me to grow as a person and opened up my horizon to a far greater world. I got to develop my leadership skills, it has made me more confident, more upfront and transparent with others and most importantly more empathetic towards people's hardships.” Tibetan scholar, male

“Studying at UWC Atlantic is one of my life’s highlights. It was a ticket to travel the whole world and get to know people from 92 countries, accepting and respecting other cultures' differences and uniqueness. This was a door to a new life. Being a refugee, I did not think that today I would be thinking about going to university and planning for my future. My aim is to become an eye doctor or an optometrist.” Palestinian scholar, female

“Sometimes I think about where I would be if I didn't receive this opportunity and this makes me realise how fortunate I am. Even though UWC was a two-year program, the impact Horizon Scholarship and UWC had on me will last forever in my heart. It made me realise the importance of helping to create equal access and opportunity for all despite their background and identity. It also taught me deeply the concept of gratitude, where it developed my future aspirations to grow into a good person and to help others as well as contribute back to my community.”

Tibetan scholar, female

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance (continued)

Tutors’ reflections reaffirm the impact the scholarships had on the scholars. A UWC tutor described a Horizon scholar as follows: “She has had a growth trajectory unlike any student I have known. From the shy and somewhat unsure, quiet individual who struggled to grapple with challenges owing to her different cultural, social and language background to the strong, determined and confident woman she has grown into, it's been an honour to witness such growth. And all credit goes to her.”

The first two Horizon-Amala scholars successfully graduated in 2020/2021. Through one of his Amala diploma modules, one of the scholars was able to develop his start-up project. He and his partners were also recently awarded seed funding from an international organisation to further build their start-up. He is currently applying for universities in the US and Canada. The other Amala graduate is also applying for educational opportunities in the US. One of the scholars commented:

“My mind has expanded due to my Amala studies. I learnt how to reflect, appreciate diversity and became more willing and able to work in teams. Before Amala, I didn’t know what to do next.” Syrian Amala scholar, male

The ten Horizon scholars who were supported at university by the Foundation continued to show good academic progress. Four of the 10 university students graduated in 2020/2021. One has found employment as a software engineer in the Netherlands; another as a systems engineer in the US; one is currently employed as a programme associate for the International Research and Exchange Board in Washington DC, and the fourth is pursuing an MS in Management.

Reflecting on the impact of their Horizon scholarship, the university graduates said:

“Horizon has given me lots of support during my high school and university studies and was a great support during a very hard time at college. It gave me a great opportunity which changed my life and bought me closer to achieving my dreams.”

Palestinian scholar, female

“Without Horizon’s support I would not have graduated from university. Now I am working full time as a software engineer. I have achieved financial independence and can help my family in Syria and Egypt. My aspirations and future plans were dramatically transformed by Horizon’s support.” Syrian scholar, male

“Horizon was always there for me during my high school and college studies. Living abroad by myself would not have been as manageable or doable without their support. Horizon made it possible for me to dream big and achieve my goals.” Palestinian scholar, male

Mentoring and guidance: The Foundation facilitates mentoring and expert guidance for its scholars to enhance the impact of its student support. In 2020/21 the Foundation facilitated the mentoring of six Horizon scholars by Freshstream members (5) and a friend of the Foundation (1). Two of the mentees were fresh university graduates, two were still at university and two were employed. The Horizon mentees continue to call on their mentors for career and other advice.

Leonard Education Organisation (LEO) is a charitable educational foundation in the US. The Horizon Foundation provides additional support to its scholars’ welfare and personal development through LEO’s guidance and academic mentoring. Sixteen Horizon scholars who were studying or about to study in the US benefited from LEO’s support in 2020/2021. LEO organised a webinar for Horizon scholars on preparing for university and travel/visa processes, and buying text books cheaply. LEO also provided Horizon scholars with a range of services including academic guidance, pastoral care for students experiencing difficulties, logistical support with travel arrangements and advice on internships, postgraduate studies and job opportunities.

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance (continued)

The Horizon Foundation also supported the training of four scholars. Three scholars attended a two-day workshop which focused on cultivating knowledge and communication skills enabling them to educate others about the realities of their region from an international law and human rights perspective. The two-day capacity building workshop was organised by Makan, a UK registered charity. With a Horizon grant, another Horizon scholar participated in the Global Citizens Initiative (GCI) Lead Challenge from 26 to 31 July 2021. GCI is a non-profit social enterprise registered in the USA that promotes ethical leadership. The training focused on Leadership, Ethics, Advocacy and Design Thinking enabling participants to build leadership skills to help them advocate for themselves and their communities. Reflecting on his GCI training, the Horizon scholar shared:

“It is a great tool that I have added to my skillset which will assist me in tackling bigger issues. Overall, the GCI LEAD challenge was a truly valuable experience. Learning different approaches to problem solving and developing problem-solving skills are just two of the many positive takeaways that I had. I was inspired by the passion and ideas of other participants to do something about the challenges which we face in our communities.”

Community Engagement

The Foundation partners with several multicultural schools around the world that promote exchange amongst their student bodies and with the local community, helping to change the way they view the world and to promote social cohesion. In 2020/2021, the Foundation expanded its partnerships to include Latymer Upper School (UK) and maintained its partnerships with Eton College (UK), its seven UWC partner schools in Bosnia-Herzegovina, Canada, Italy, the Netherlands, Norway, Thailand and the UK and with Amala (supporting the education of refugees in Jordan).

Furthermore, the Foundation’s Community Engagement Initiative (CEI) encourages Horizon scholars to lead initiatives that promote cross-cultural understanding at their educational institutions, in their host communities and back home. Like last year, the Covid-19 pandemic meant that it was not possible to implement CEIs in 2020/21 but Horizon hopes that these initiatives will be feasible again at some level in 2021/22. The CEI aims to challenge misinterpretations and misunderstandings that often occur from a lack of cultural and contextual awareness.

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance (continued)

Impact (Community Engagement)

The Foundation's partner schools promote an inclusive culture that supports the values of engagement and empowerment.

For example in 2020/21:

• a Horizon-UWC Adriatic scholar taught Arabic to children of refugees in Trieste (Italy) and, similarly, a Horizon-UWC Atlantic scholar was involved in initiatives that support refugees in Wales (UK);

• a Horizon-UWC Maastricht scholar volunteered on a local farm and helped to feed the animals and worked with young visitors to the farm; and

• a Horizon-UWC Thailand scholar helped collect and pack food and clothes with a local organisation that supports disadvantaged families.

Similarly, the Amala High School Diploma Programme engages the Horizon scholars in two 10-week courses on Ethical Leadership and Social Entrepreneurship. The former course allows learners to explore ethical leadership as a way to improve the wellbeing of communities and make positive change while the second course culminates in participants designing a project that does social good in their communities. For example, one Horizon-Amala graduate, throughout his study period, focused on sustainable innovation and problem solving. His Amala project addressed the lack of resources in Arabic related to entrepreneurial, technical and soft skills. He therefore worked on developing an online platform which provides courses and relevant resources to Arabic-speaking entrepreneurs.

The partner schools also celebrate the rich cultures of their multinational scholars through diverse events and promote debates on contemporary and important topics such as peace, refugees and the environment. As such, a Palestinian scholar at UWC Adriatic co-organised and presented a traditional Dabke dance at a student show. A scholar at UWC Mostar introduced fellow students to Tibet by doing presentations about his culture and people as part of his extracurricular activities. Horizon’s scholar at Latymer Upper School informed her peers about Iranian and Arab forms of music and instruments and showed them some Middle Eastern music videos which they enjoyed together.

Horizon scholars often speak of a shift in their thinking and behaviour, of learning about new cultures and respecting differences:

“I was able to encounter many different cultures and learn life-long lessons. It has impacted my personality and the way I view everything around me.” Palestinian scholar, female

“I learnt to be non-judgemental towards others. This was mostly because of my realisation, at UWC, about the uniqueness of different cultures and identities.” Tibetan scholar, male

“I knew that coming from a very conservative society to a quite liberal and open one would be a big challenge for me, but after a while I started seeing things from a broader perspective…I became a free thinker, not allowing metanarratives and personal biases to blur my judgement… I learnt that I have a voice more influential than I thought, and that nothing is really stopping me to cause social change.” Syrian scholar, female

“I have become more aware of cultural differences and I have learnt from living with students from different countries, religions, and with different values.” Syrian scholar, male

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The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Achievements and performance (continued)

Seed Community Projects

The Foundation’s Seed Funding for Seed Community Projects launched in 2018/19 and is part of the Foundation’s Scholar Development Fund. It encourages Horizon scholars who have graduated from university and returned to work in their own countries/communities to set up and lead initiatives that improve the lives of disadvantaged communities. Projects are largely youth-led and responsive to key community needs, mainly in the fields of education and mental health. Seed Funding grants adhere to a set application process and criteria as well as reporting requirements.

Following the success of her first Horizon seed community project in 2018/19, a Horizon-UWC Atlantic graduate from Palestine put forward a seed fund application for another educational project in Dheisheh Refugee Camp in Bethlehem. With the Horizon grant, she was able to implement a project which prepared 50 pre-school children academically and socially for a safe transition into grade-school following disruption to their education caused by Covid-19. The project took the form of an intensified summer camp comprising classes which focused on language, maths and social skills. The project also provided psychosocial and recreational activities enabling children to express their feelings. Educational resources were purchased for the host centre and, at the end of the project, all participating children were gifted school bags and stationery to help prepare them for school. The total amount allocated to this project was £5,834 (USD 8,034) in 2020/2021.

Impact (Seed Community Projects)

The Horizon scholar’s two month-long educational summer camp was held in Dheisheh refugee camp, Bethlehem, where there are limited educational and recreational spaces and at a time where all activities had been disrupted because of the pandemic. The Horizon grant provided the host centre with English and Arabic educational resources for teaching mathematics and languages in addition to stationary and a sound system for use in both educational and recreational activities. The resources and sound system will continue to be used by the host centre in future activities with children and young people.

Fifty children, aged between 3-5, participated in the project (27 girls and 23 boys). The children benefited from daily sessions which focused on learning the Arabic and English alphabet, word-formation and linking words to pictures (in both Arabic and English) as well as basic mathematical operations. The project also engaged the children in a number of psychosocial and recreational activities which included singing, playing, breathing exercises, drawing and dancing. School bags and stationery were given to all participating children at the end of the project. The teachers and social workers conducted pre and post project assessments on all the children and reported positive results for both their educational and social progress. Families of the participants attended the final party of the summer camp to celebrate their children’s achievements. Below is a selection of testimonials attesting to the project’s impact on its participants.

A parent said, “I was so worried that my child will not be accepted in school next year as she didn’t go to kindergarten. Since she joined this summer camp, she would come home every day happy, singing the numbers she learnt. I was grateful she joined that summer camp as it was the only opportunity for our children in the camp to make up for the education they’ve missed during Covid-19.”

A young participant said, “I made new friends, I learnt many things and I now can count!”

The project’s Childhood Psychosocial Support Worker said, “I felt that the children’s anger clearly decreased by the end of the summer camp, as the children had the space to express themselves away from their parents and people who they have been living with 24/7 during Covid-19. It’s important for children to meet new people at this stage of their life, away from their parents, to formulate their personality, build up confidence and develop social skills.”

- 14 -

The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Financial review

In the period, the charity received donations of £605,520 (£1,612,602 in 2019/20) and interest income of £185 (£990 in 2019/20). Expenditure for the period totalled £708,965 (£788,763 in 2019/20), with the majority of expenditure being education and maintenance grants of £543,249 (£630,439 in 2019/20).

The net deficit for the year totalled £103,260 (surplus of £824,829 in 2019/20).

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.

In June 2020, the Foundation received a very generous gift (bequest) from Mr Maurice Smulders who was a dedicated supporter of the Foundation for many years.

In 2019, Mrs Floor Moerland-Kwik, representing Herenweg Holding BV became a supporter of the Horizon Foundation. She has since generously committed to supporting four Horizon scholars throughout the duration of their studies. In 2021, she further pledged full support to two more Horizon scholars for academic years 2021/22 and 2022/23.

Reserves policy

The Trustees are confident that they can rely on the agreements they have in place with the Foundation's Chairman and other donors to meet all the commitments the Foundation has entered into with grantees. No commitments are taken on which are not supported by such agreements. In terms of the staff and other operating costs of the Foundation, it is the Trustees’ policy to hold six months of costs in reserve. Furthermore, it is the Trustees’ policy to submit a funding request to the main donor in April/May each year to cover all budgeted expenditure for the next twelve months. As such, the Foundation may hold reserves at its year end (31 July) covering approximately nine months of its cost to the next tranche of funding (until the next funding request is raised).

At the end of the 2020/2021 year, the Foundation held free reserves of £624,539 which represent in excess of eight months of budgeted costs for 2021/22.

- 15 -

The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Plans for future periods

The Foundation is looking to enhance its funding and supporter base in the immediate and medium terms in order to sustain and increase the size of and support to its student body, strengthen and expand its partnerships, and engage more in community development so as to maximise the effectiveness of the Foundation’s investment in its target regions. The Foundation will therefore continue to invest in developing resources to raise its profile and serve its strategic funding drive as well as plan carefully around Brexit uncertainties.

As such, the Foundation plans to support around 22-24 UWC scholars in academic years 2021/2022 and 2022/2023. The Foundation will continue supporting Amala scholars in Jordan and its current scholars at Latymer Upper School and Eton College in the UK. The Foundation will be also looking to expand its partnership and support a scholar at Bassett House School (UK).

a) Student support

Horizon’s close contact and follow up with its scholars will remain mainly online because of Covid restrictions but the plan is for school visits to gradually resume in 2021/2022. As usual, the Foundation will conduct calls (and meetings where possible) with scholars and school staff, including scholars’ tutors, management teams, university guidance counsellors and mental health practitioners.

The Foundation will continue to collaborate with its mentors and the Leonard Education Organisation to ensure more holistic support to its scholars. The Foundation will also continue to identify and provide capacity building opportunities to its scholars.

The Foundation has no plans for large Horizon gatherings in 2021/2022, however it will keep on facilitating online ‘meet ups’ with different scholar cohorts to promote bonding and networking. Horizon will keep on encouraging its scholars to register to the Foundation’s website Scholar Private Page “Our Horizons” where they can seek education and career advice from each other as well as access resources and information uploaded by the Foundation (109 scholars have already registered).

b) Partnerships

The Foundation will expand its partnerships to include Bassett House School (UK) and maintain its partnerships with UWC schools, Amala, Eton College and Latymer Upper School. As such, Horizon aims to support at least 25 school students in academic year 2021/2022.

c) Funding

Horizon’s Chairman will continue to donate to the Foundation either directly or through the Horizon Trust (HT), of which the Foundation is a registered beneficiary. HT is an investment vehicle and is managed by the Royal Bank of Canada.

The Foundation seeks to continue its charitable work through the careful stewardship of its existing resources and social network. Any fundraising activity is carried out by Horizon’s trustees, primarily the Chairman, and core staff. Horizon does not employ professional telephone or street fundraisers or commercial participators for fundraising activity.

The Foundation will be welcoming a new supporter in 2021/2022. The new donor has pledged to support one Horizon scholar to complete her secondary education in 2021/22 and 2022/23.

The Foundation will be adding one more film to its recently produced short films. These films help showcase Horizon’s work, promote its profile and attract supporters. Work on the new film will resume in 2021/2022 (depending on pandemic related restrictions).

- 16 -

The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Going forward the Foundation will also be exploring ways to garner support from its alumni and invite them to contribute towards funding their successors (new Horizon scholars) when they are in the position to do so.

d) Community Development

The Foundation will continue to encourage its scholars to set up and lead CEI and Seed Community projects. As done this year, projects will take Covid restrictions into consideration.

Structure, governance and management

a. Constitution

The Horizon Foundation was originally set up in 2006 by Patrick and Kirkland Smulders. It was formally established and registered as an English charity in 2007 and became a Charitable Incorporated Organisation (CIO) in 2016. The Horizon Foundation is constituted by its governing document (Constitution, June 2016) and is registered with the Charity Commission (number 1169379, registered on 27 September 2016).

b. Method of appointment or election of Trustees

The Foundation’s Constitution provides for a minimum of one to a maximum of four appointed trustees, and not less than one nor more than eight nominated trustees. There must be at least three trustees. New trustees are appointed by the existing trustees and serve for three years after which they may put themselves forward for re-appointment.

In selecting individuals for appointment as appointed trustees, the trustees must have regard to the skills, knowledge and experience needed for the effective administration of the CIO. The Foundation will make available to each new trustee on or before his or her first appointment a copy of the Constitution and a copy of the latest Trustees’ Annual Report and statement of accounts. Once appointed, trustees are thoroughly briefed on the Foundation’s history, future direction, policies and management as well as on their responsibilities. Trustees are DBS-checked and sign the statement of commitment pertaining to the Foundation’s Child Protection Policy, Procedures and Code of Conduct. Existing trustees are provided with training as and when required.

c. Organisational structure and decision making

The trustees manage the affairs of the CIO. They meet twice a year to agree the broad strategy and areas of activity for the Foundation, including consideration of its partnerships and grant making, budget, risk management policies and performance. The Chairman and Chief Executive are also in regular communication. Executive and management action (day to day matters) is delegated to the Chief Executive and staff. The scope of delegated authority is outlined in the Foundation’s scheme of delegation document which is reviewed periodically or as necessary for an accountable and effective management of the Foundation.

All trustees give their time freely and no trustee remuneration was paid in the year. Trustees are required to disclose all relevant interests and register them with the Chief Executive at the Board meetings. It has been recorded that the Chairman of the Horizon Foundation is a governor of Rugby School, a partner (beneficiary) of the Horizon Foundation (last supported in 2018/2019) and that the son of trustees Kirkland and Patrick Smulders has been attending Laytmer Upper School since 2017. The School became a Horizon partner in 2020/2021.

- 17 -

The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

Structure, governance and management (continued)

d. Key management personnel (KMP) remuneration

The key management personnel (KMP) of the charity are represented by the trustees who are not remunerated and the Chief Executive. The salary of the CEO and the annual salary reviews of all staff are approved by the Chairman and trustees. The salaries are set in line with positions of similar responsibilities of comparable organisations.

e. Risk management

The trustees have considered the risks to which the charity is exposed and have established measures to manage those risks. A risk register is held at the Foundation’s office and is reviewed and updated periodically or as necessary by the CEO to ensure that the risks are actively managed. The trustees review and agree the risk register and the accompanying systems and controls on a biannual or annual basis.

The Foundation manages its risks by:

• Retaining trustees and staff of sufficient skills and expertise;

• Partnering with reputable and capable institutions;

• Defining and reviewing its grant making policy; and

• Developing its planning, monitoring and evaluation processes particularly on student selection and follow up.

The trustees have identified the following as the principal risks facing the Foundation and have controls in place for their active management:

Principal Risks	Present Controls
Safeguarding of programme objectives: Programme impact is affected by scholars’ low performance or project mismanagement or misuse of funds	-Due diligence procedures are in place to ensure clear oversight as well as monitoring and evaluation of and payments to partners and scholars/projects. -Partner schools and Horizon have clear criteria and processes for scholar selection. -Active engagement of Horizon officers in monitoring scholar performance. -Partner schools provide academic and psychosocial support. Horizon offers additional pastoral care. -Signed agreements set the terms and conditions of all awards. Funding is by staged instalments and conditional upon satisfactory reporting.
Safeguarding of charity assets: The risk of the charity’s assets (cash) being mismanaged, inaccessible, lost or subject to fraud	-Robust financial controls are in place. -A letter of Intent from the Chairman - to meet all of the Foundation’s commitments to its scholars, partners, staff and other creditors as they fall due – is in place. -Plans for expansion of the Foundation’s donor base to be developed.
Duty of care risks pertaining to scholars	-As per Horizon’s agreements with its partner schools: the schools are responsible for scholars’ pastoral care and safeguarding according to local safeguarding/child protection policies. Partner schools are also required to show Horizon their safeguarding polices and processes. -Horizon’s Child Protection Policy, Procedures and Code of Conduct (in place and reviewed). -DBS checks of Horizon trustees, staff are conducted.

- 18 -

The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

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 year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity 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 2019 (FRS102);

• make judgements and 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;

• 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 adequate 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

True and fair override

The accounts (financial statements) have been prepared to give a "true and fair" view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a "true and fair" view. The departure has involved Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

• so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and

• they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

- 19 -

The Horizon Foundation

Trustees' annual report (continued)

Year ended 31 July 2021

The trustees' annual report was approved on 6 May 2022 and signed on behalf of the board of trustees by:

Mr Patrick Smulders Chairman

- 20 -

The Horizon Foundation

Independent auditor's report to the trustees of The Horizon Foundation

Year ended 31 July 2021

Opinion

We have audited the financial statements of The Horizon Foundation (the 'charity') for the year ended 31 July 2021 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and 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 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• 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 financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

- 21 -

The Horizon Foundation

Independent auditor's report to the trustees of The Horizon Foundation (continued)

Year ended 31 July 2021

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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

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 (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the trustees' report; or

• the charity has not kept adequate accounting records; 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.

- 22 -

The Horizon Foundation

Independent auditor's report to the trustees of The Horizon Foundation (continued)

Year ended 31 July 2021

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 is detailed below:

• Enquiry of management and those charged with governance;

• Enquiry of entity staff compliance functions to identify any instances of non-compliance with laws and regulations;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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.

- 23 -

The Horizon Foundation

Independent auditor's report to the trustees of The Horizon Foundation (continued)

Year ended 31 July 2021

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 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.

Lovewell Blake LLP Chartered accountants & statutory auditor Bankside 300 Peachman Way Broadland Business Park Norwich NR7 0LB

12 May 2022

- 24 -

The Horizon Foundation

Statement of financial activities

Year ended 31 July 2021

			2021		2020
		Unrestricted	Restricted
		funds	funds	Total funds	Total funds
	Note	£	£	£	£
Income and endowments
Donations and legacies	4	494,077	111,443	605,520	1,612,602
Investment income	5	185	–	185	990
		─────────	─────────	─────────	───────────
Total income		494,262	111,443	605,705	1,613,592
		═════════	═════════	═════════	═══════════
Expenditure
Charitable activities	6	597,522	111,443	708,965	788,763
		─────────	─────────	─────────	───────────
Total expenditure		597,522	111,443	708,965	788,763
		═════════	═════════	═════════	═══════════
		─────────	─────────	─────────	───────────
Net (expenditure)/income and net
movement in funds		(103,260)	–	(103,260)	824,829
		═════════	═════════	═════════	═══════════
Reconciliation of funds
Total funds brought forward		727,799	–	727,799	(97,030)
		─────────	─────────	─────────	───────────
Total funds carried forward		624,539	–	624,539	727,799
		═════════	═════════	═════════	═══════════

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 28 to 35 form part of these financial statements.

- 25 -

The Horizon Foundation

Statement of financial position

31 July 2021

		2021		2020
	Note	£	£	£	£
Fixed assets
Intangible assets	10		–		7,666
Current assets
Debtors	11	135,621		229,266
Cash at bank and in hand		622,314		645,518
		─────────		─────────
		757,935		874,784
Creditors: Amounts falling due within
one year	12	(133,396)		(154,651)
		─────────		─────────
Net current assets			624,539		720,133
			─────────		─────────
Total assets less current liabilities			624,539		727,799
			─────────		─────────
Net assets			624,539		727,799
			═════════		═════════
Funds of the charity
Unrestricted funds			624,539		727,799
			─────────		─────────
Total charity funds	14		624,539 ═════════		727,799 ═════════

These financial statements were approved by the board of trustees and authorised for issue on 6 May 2022 and are signed on behalf of the board by:

Mr Patrick Smulders Chairman

The notes on pages 28 to 35 form part of these financial statements.

- 26 -

The Horizon Foundation

Statement of cash flows

Year ended 31 July 2021

	2021	2020
	£	£
Cash flows from operating activities
Net (expenditure)/income	(103,260)	824,829
Adjustments for:
Amortisation of intangible assets	7,666	11,667
Other interest receivable and similar income	(185)	(990)
Changes in:
Trade and other debtors	93,645	(151,728)
Trade and other creditors	(21,255)	(148,349)
	─────────	─────────
Cash generated from operations	(23,389)	535,429
Interest received	185	990
	───────	─────────
Net cash (used in)/from operating activities	(23,204)	536,419
	═══════	═════════
Net (decrease)/increase in cash and cash equivalents	(23,204)	536,419
Cash and cash equivalents at beginning of year	645,518	109,099
	─────────	─────────
Cash and cash equivalents at end of year	622,314 ═════════	645,518 ═════════

The notes on pages 28 to 35 form part of these financial statements.

- 27 -

The Horizon Foundation

Notes to the financial statements

Year ended 31 July 2021

1. General information

The charity is a registered CIO in England and Wales. The address of the principal office is 10 Westgate Close, Norwich, NR2 3NQ.

2. Statement of compliance

The charity constitutes a public benefit entity as defined by FRS 102. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.

True and fair override

The accounts (financial statements) have been prepared to give a "true and fair" view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a "true and fair" view. The departure has involved Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. The Trustees have considered the impact of COVID-19 in making this assessment.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Restricted funds to the charity usually pertain to supporting specific scholars and/or specific schools.

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The Horizon Foundation

Notes to the financial statements (continued)

Year ended 31 July 2021

3. Accounting policies (continued)

Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained, then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Support costs are allocated to expenditure on charitable activities on a basis this is the sole activity of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Charitable activities and governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

Grant expenditure

Grants are paid to approved educational institutions in order to fund student scholarships. Offers of grant funding are made to those meeting the charity's detailed eligibility criteria. Funding is made for students final two years of secondary education and, for some students, for their subsequent university education (normally directly to their universities or to them if it is a maintenance grant). Project grants follow a detailed eligibility criteria and are made to the scholar or to their educational or other vetted institution.

All funding offers are initially contingent upon individual students obtaining the necessary visa requirements. As a result grant funding is only considered to be unconditional and provided for in the financial statements once a new student actually starts term at the relevant academic institution.

Whilst it is hoped that all students will complete their full study programme, in line with generally accepted practice, study commitments may be brought to an end by the charity by giving a full term's notice in writing. For all students already placed at schools and universities, where no notice to terminate study has been delivered by 31 July, the grant expenditure recognised includes provision for the subsequent Autumn term fees, because at the charity's year end of 31 July there is an unconditional obligation to meet this liability.

No provision is made for Autumn term fee obligations for new students because until such time as a student takes up a place, the funding remains conditional.

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The Horizon Foundation

Notes to the financial statements (continued)

Year ended 31 July 2021

3. Accounting policies (continued)

Intangible assets

Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment. Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset, less their estimated residual value, over their expected useful lives on the following bases:

Website - 3 years straight line Database - 3 years straight line

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Website	-	33% straight line
Database	-	33% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Defined contribution plans

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Taxation

The charity is exempt from tax on its charitable activities.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Statement of Financial Activities.

The Foundation operates separate pound sterling and US dollar budgets. US dollar income is held in that currency and used to meet US dollar expenditure. The exchange gains and losses therefore arise purely from the need to report in sterling and do not impact on the ability of the charity to fulfil commitments.

Debtors

Debtors are recognised at the settlement amount after any discount offered. Prepayments are valued at the amount prepaid after any discounts due.

- 30 -

The Horizon Foundation

Notes to the financial statements (continued)

Year ended 31 July 2021

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Liabilities and provisions

Liabilities 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. Liabilities are recognised at the amount that the charity anticipates that it will pay to settle the debt or the amount or amounts it has received as advanced payments for the services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

4. Donations and legacies

		Unrestricted	Restricted	Total Funds
		Funds	Funds	2021
		£	£	£
Donations
Donations		494,077	111,443	605,520
Gift aid		–	–	–
Legacies
Legacies		–	–	–
		─────────	─────────	─────────
		494,077	111,443	605,520
		═════════	═════════	═════════
		Unrestricted	Restricted	Total Funds
		Funds	Funds	2020
		£	£	£
Donations
Donations		1,391,179	82,707	1,473,886
Gift aid		50,000	–	50,000
Legacies
Legacies		88,716	–	88,716
		───────────	───────	───────────
		1,529,895	82,707	1,612,602
		═══════════	═══════	═══════════
Investment income
	Unrestricted	Total Funds	Unrestricted	Total Funds
	Funds	2021	Funds	2020
	£	£	£	£
Deposit account interest	185 ════	185 ════	990 ════	990 ════

5. Investment income

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The Horizon Foundation

Notes to the financial statements (continued)

Year ended 31 July 2021

6. Expenditure on charitable activities

	Activities
	undertaken		Total funds	Total funds
	directly	Support costs	2021	2020
	£	£	£	£
Staff costs	64,582	31,927	96,509	93,632
Pastoral Care, monitoring and evaluation	10,368	–	10,368	13,969
Education and maintenance grants	543,249	–	543,249	630,439
Seed community projects	5,834	–	5,834	–
Amortisation (Database and website)	7,666	–	7,666	11,667
Other costs	–	45,339	45,339	39,056
	─────────	───────	─────────	─────────
	631,699	77,266	708,965	788,763
	═════════	═══════	═════════	═════════

Support costs, included in the above, are as follows:

	**Staff costs **	Other costs	2021	2020
	£	£	£	£
Salary - Management	28,462	–	28,462	27,720
Employers’ NI – Management	1,543	–	1,543	1,457
Pensions – Management	1,922	–	1,922	1,855
Auditors' remuneration - prior year	–	1,310	1,310	6,550
Auditors' remuneration - current year	–	8,136	8,136	–
Accountancy fees	–	4,860	4,860	5,106
Management (including Audiovisuals)	–	4,387	4,387	11,547
Foreign exchange losses	–	26,646	26,646	15,853
	───────	───────	───────	───────
	31,927	45,339	77,266	70,088
	═══════	═══════	═══════	═══════

7. Net (expenditure)/income

Net (expenditure)/income is stated after charging/(crediting):

Amortisation of intangible assets

2021	2020
£	£
7,666	11,667
══════	═══════

8. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

	2021	2020
	£	£
Wages and salaries	84,806	82,422
Social security costs	5,274	4,979
Employer contributions to pension plans	6,429	6,231
	───────	───────
	96,509	93,632
	═══════	═══════

The average head count of employees during the year was 2 (2020: 2).

No employee received employee benefits of more than £60,000 during the year ended 31 July 2021 nor the year ended 31 July 2020.

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The Horizon Foundation

Notes to the financial statements (continued)

Year ended 31 July 2021

8. Staff costs (continued)

Key Management Personnel

Key management personnel includes all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. Total employment benefits paid to the charity’s key management personnel during the year, which include gross pay and employer’s national insurance contributions, amounted to £62,904 (2020: £61,054).

9. Trustee remuneration and expenses

No trustees' remuneration or other benefits were paid for the year ended 31 July 2021 nor for the year ended 31 July 2020.

Trustees' expenses

No trustees' expenses were paid for the year ended 31 July 2021 nor for the year ended 31 July 2020.

10. Intangible assets

		Website	Database	Total
		£	£	£
	Cost
	At 1 August 2020 and 31 July 2021	19,516	15,485	35,001
		═══════	═══════	═══════
	Amortisation
	At 1 August 2020	15,721	11,614	27,335
	Charge for the year	3,795	3,871	7,666
		───────	───────	───────
	At 31 July 2021	19,516	15,485	35,001
		═══════	═══════	═══════
	Carrying amount
	At 31 July 2021	–	–	–
		═══════	═══════	═══════
	At 31 July 2020	3,795	3,871	7,666
		═══════	═══════	═══════
11.	Debtors
			2021	2020
			£	£
	Prepayments and accrued income		131,813	175,452
	Other debtors		3,808	53,814
			─────────	─────────
			135,621	229,266
			═════════	═════════
	The debtors above include the following amounts falling due after more than one year:
			2021	2020
			£	£
	Other debtors		–	3,808
			════	══════
12.	Creditors: Amounts falling due within one year
			2021	2020
			£	£
	Accruals and deferred income		8,136	6,550
	Social security and other taxes		592	783
	Other creditors		124,668	147,318
			─────────	─────────
			133,396	154,651
			═════════	═════════

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The Horizon Foundation

Notes to the financial statements (continued)

Year ended 31 July 2021

12. Creditors: Amounts falling due within one year (continued)

Grant creditors are included in other creditors and relate to one term’s fees payable for existing scholars.

Whilst it is hoped that all students will complete their full study programme, in line with generally accepted practice, study commitments may be brought to an end by the charity by giving a full term's notice in writing. For all students already placed at schools and universities, where no notice to terminate study has been delivered by 31 July, the grant expenditure recognised includes provision for the subsequent Autumn term fees, because at the charity's year end of 31 July there is an unconditional obligation to meet this liability.

13. Pensions and other post retirement benefits

Defined contribution plans

The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £6,429 (2020: £6,231).

£592 (2020: £783) is included within creditors.

14. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
	At			At
	1 August 2020	Income	Expenditure	31 July 2021
	£	£	£	£
General funds	727,799	494,262	(597,522)	624,539
	═════════	═════════	═════════	═════════
	At			At
	1 August 2019	Income	Expenditure	31 July 2020
	£	£	£	£
General funds	(97,030)	1,530,885	(706,056)	727,799
	═══════	═══════════	═════════	═════════
Restricted funds
	At			At
	1 August 2020	Income	Expenditure	31 July 2021
	£	£	£	£
Restricted fund	–	111,443	(111,443)	–
	════	═════════	═════════	════
	At			At
	1 August 2019	Income	Expenditure	31 July 2020
	£	£	£	£
Restricted fund	– ════	82,707 ═══════	(82,707) ═══════	– ════

Restricted funds relate to funding received from Herenweg Holding BV to cover the costs of scholarships for four scholars at UWC Maastricht.

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The Horizon Foundation

Notes to the financial statements (continued)

Year ended 31 July 2021

15. Analysis of net assets between funds

	Unrestricted	Total Funds
	Funds	2021
	£	£
Tangible fixed assets	–	–
Current assets	624,539	624,539
	─────────	─────────
Net assets	624,539	624,539
	═════════	═════════
	Unrestricted	Total Funds
	Funds	2020
	£	£
Tangible fixed assets	7,666	7,666
Current assets	720,133	720,133
	─────────	─────────
Net assets	727,799	727,799
	═════════	═════════

16.	Analysis of changes in net debt
		At		At
		1 August 2020	Cash flows	31 July 2021
		£	£	£
	Cash at bank and in hand	645,518 ═════════	(23,204) ═══════	622,314 ═════════

17. Related parties

Aggregate Donations received from trustees, without conditions, totalled £494,077 (2020: £1,344,818). Scholarships of £43,967 (2020: £Nil) were paid to Eton College (a partner of Horizon Foundation which P Smulders also supports personally).

Scholarships of £20,141 (2020: £Nil) were paid to Latymer Upper School (P Smulders' son attends the school).

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