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← Sumerian Foundation

2023-12-31-accounts

Sumerian Foundation

(a company limited by guarantee)

Report of the trustees and financial statements for the year ended 31 December 2023

Company Registered Number: 10234246 Charity Registered Number: 1169532

SUMERIAN FOUNDATION

Contents

Trustees, directors, officers and advisors 3
Report of the trustees 4
Independent examiner’s report 8
Statement of financial activities (incorporating Income and Expenditure Account) 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12

SUMERIAN FOUNDATION

www.sumerianpartners.com/sumerian-foundation/

Trustees, directors, officers and advisors

Trustees (who are also directors)

The trustees of the Foundation who were in office during the year and up to the date of signing the financial statements were:

Ms Isabelle Irani Dr Chris West Mrs Amy Gutcher Mr Nicholas Colloff Mr Rupesh Chatwani Ms Clare Woodcraft Mr Rahul Moodgal

Appointed December 2023 Resigned December 2023 Chair Resigned December 2023

Registered Office

Two Temple Place London WC2R 3BD

Independent Examiner

Shruti Soni Ltd 117A St. Johns Hill Sevenoaks TN13 3PE

Bankers

HSBC plc 25 Islington High Street London N1 9LJ

Solicitors

Skadden, Arps, Slate, Meagher & Flom (UK) LLP 40 Bank Street Canary Wharf London E14 5DS

3

Report of the trustees for the year ended 31 December 2023

The trustees, who are also directors of the Foundation for the purpose of the Companies Act, present their annual report and financial statements for the year ended 31 December 2023. This is also a Directors’ Report as required by Companies Act 2006.

The information with respect to trustees and advisors set out on page 3 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association, applicable Accounting Standards in the United Kingdom, the Statement of Recommended Practice ‘Charities SORP (FRS 102)’ effective 1[st] January 2019, the Companies Act 2006 and the Charities Act 2011.

Structure, Governance and Management

Status and Administration

Sumerian Foundation (‘the Foundation’ or ‘SF’) is a charitable company limited by guarantee, incorporated on 15 June 2016 (company registration number 10234246) and registered with the Charity Commission as a charity on 7 October 2016 (charity registration number 1169532). Its governing document is its Memorandum and Articles of Association.

Governance and Internal Controls

The trustees are appointed by the sole member of the Foundation (Sumerian Partners Limited) and by the Board of Trustees, in consultation with the existing trustees. The constitution requires the Foundation to have a minimum of five trustees, majority of whom should be independent to Sumerian Partners Ltd. Each trustee has one vote.

New trustees are provided with information on trustee guidelines as prepared by the Charity Commission, and information on the Foundation as appropriate. Briefing discussions are held with the current trustees. Trustees are requested annually to confirm any related party transactions.

The trustees meet formally twice each year, where they review and approve:

A major risk assessment has been performed, and systems and procedures – including a risk matrix and bi-annual review by the Trustees – have been established. The key risks relate to the Foundation’s ability to grow its internal capacity, and ability to secure funding for future growth.

Relationship with Sumerian Partners Limited

The Foundation was formally incorporated on 15 June 2016 and registered as a charity on 7 October 2016. Between incorporation and 31 December 2023, unrestricted donations of £52,000 have been received from Sumerian Partners Limited.

To ensure clarity in the relationship of the Foundation to Sumerian Partners Limited, the Board of Trustees includes independent members who have no direct relationship with Sumerian Partners Limited, known as the ‘Nominated Trustees’, who are appointed by the Board. They are selected for their experience of, and eminence in, the Foundation's field of activities and its objectives. Currently there are three independent trustees on the Board of the Foundation.

4

Report of the trustees for the year ended 31 December 2023 (cont.)

Objectives and Activities for the Public Benefit

The primary objectives of the Foundation are stated in its governing document, these are: ‘for the public benefit to further any purpose which is exclusively charitable under the law of England and Wales (provided that the Charity may not further any purposes which are not charitable in accordance with the laws of Scotland and Northern Ireland).’

These objectives have been met through SF’s activities during the year, as shown below:

Focus Area Objectives and Activities in 2023 Expenditure
Reducing UK Social inequality We aimed to obtain further funds for work on this area,
and make additional ‘impact first’ investments in social
enterprises in the UK.		 £ 276,663
Africa Healthcare We aimed to provide a continuation in post investment
support to our one ‘impact first’ investment social
enterprise in Africa.		 £ 98
Advocacy on venture philanthropy We continued to work with other organisations to share
our lessons learned.		 -

The trustees confirm they have complied with the guidance contained in the Charity Commission’s general guidance on public benefit in section 4 of the Charities Act 2011 when reviewing SF’s aims and objectives and will do when considering grants or ‘impact first’ investments (social investments where the primary motive is positive social impact) to be awarded. SF’s Articles permit it to make grants or ‘impact first’ investments to further these objectives anywhere in the world. KPIs for each of these grants or ‘impact first’ investments are co-designed with the partner we are investing in, and monitored on a quarterly basis. Our policy is to use ‘impact first’ – or programme related – investment where this is the most appropriate way to maximise public benefit.

Achievements and Performance

During 2023 Sumerian Foundation has focused on the objectives and activities outlined above. To this end, the main achievements of the year have been:

As part of these achievements, SF now has a portfolio of 17 ‘impact first’ investees as at 31[st] December 2023, being a mixture of equity investments and concessionary loans. These are held on the Balance Sheet at cost less any provision for impairment. During the year, longer term partnerships have been developed with other UK Foundations, which will significantly help SF achieve its future goals.

The future plans of Sumerian Foundation include:

5

Report of the trustees for the year ended 31 December 2023 (cont.)

Financial Review

Financial Activities

The Statement of Financial Activities is included with the financial statements on page 9. During the year SF received income of £360k (2022: £329k), of which £331k is restricted for use on ‘impact first’ investments in social enterprises in the UK, and supporting those social enterprises as they grow. £277k (2022: £257k) was spent on charitable activities, supporting SF’s portfolio of social enterprises and advocating for an ‘impact first’ and inclusive investment approach in the sector. £375k was used as ‘impact first’ investments, this was in the form of concessionary loans. At the year end, total funds were £1.06m (2022: £981k), of which £1.01m is restricted (2022: £956k).

Principal Funding Sources

During 2023, the Foundation’s funding sources were donations and non-recourse loans from other charities, alongside some donations from companies. Further funding sources are being sought for 2024 and beyond.

Principle Risks and Uncertainties

SF relies on funding from philanthropic sources – individuals and other Foundations – to fund its work. Most funding received is long term (three years) in nature, mitigating the risk of large fluctuations year on year. SF continues to work on identifying additional funding to grow its social impact, and holds reserves to cover its core operating costs (see below), given the uncertainties over securing unrestricted funds. Other risks include exposure to foreign exchange rate fluctuations, as SF holds one ‘impact first’ investment in Africa. Almost all expenditure, however, is incurred in GBP, so this exposure is limited. Future financial performance and position are likely to be affected by SF’s ability to raise further funds to achieve its objectives, and the performance of the social enterprises SF supports, who were impacted during the year by the inflationary environment in the UK.

Reserves

The Foundation kept its reserves policy the same as the prior year, which is to hold at least one year’s expenditure in free reserves (being unrestricted liquid reserves) on core operating and governance costs, in addition to an amount to cover the provision of post investment skills support after the restricted funding ceases. One year’s core operating and governance expenditure is currently forecast around £5k, as the majority of operating costs are covered by restricted funding; and one year of skills support costs is currently forecast around £75k. At the year end the Foundation held total funds of £1.06m, of which £53k was in free reserves, which is sufficient to cover core operating costs and the skills support costs for at least one year, as restricted reserves are also currently held for skills support costs for at least one year.

Trustees’ responsibilities statement

The trustees (who are also directors of Sumerian Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

6

Report of the trustees for the year ended 31 December 2023 (cont.)

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

In so far as the trustees are aware:

The company has taken advantage of the small companies’ exemption in preparing the report above.

The Trustees’ Report (including directors’ report) was approved by the trustees and signed on their behalf by order of the Board:

Mr Nicholas Colloff Trustee

Date:

7

Independent Examiner’s Report to the Trustees of Sumerian Foundation

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 December 2023 which are set out on pages 9 to 17.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

Since your charity’s gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of the Association of Chartered Certified Accountants which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed:

Shruti Soni ACCA Date:

Shruti Soni Ltd ● Chartered Certified Accountants 117A St Johns Hill, Sevenoaks TN13 3PE

8

Statement of financial activities (incorporating an Income and Expenditure Account) for the year ended 31 December 2023

Company Registered Number: 10234246

Unrestricted
Restricted
Funds
Funds
2023
2023
Note
£
£		 Total
Total
Funds
Funds
2023
2022
£
£
Income & endowments from
- Donations & legacies
2
12,000
312,352
- Charitable activities
2
-
-
- Investment Income
2
17,733
18,375		 324,352
323,205
-
-
36,108
5,651
Total Income
29,733
330,727		 360,460
328,856
Expenditure on
- Charitable activities
(1,586)
(275,175)		 (276,761)
(256,904)
Total Charitable Activities
3
(1,586)
(275,175)		 (276,761)
(256,904)
Total Expenditure
(1,586)
(275,175)		 (276,761)
(256,904)
Net income/(expenditure)
28,147
55,552
Other gains/(losses)
-
(5,143)		 83,699
71,952
(5,143)
12,077
Net Movement in Funds
28,147
50,409
Fund balances brought
forward at 1 January
25,144
955,771		 78,556
84,029
980,915
896,886
Fund balances carried
forward at 31 December
53,291
1,006,180		 1,059,471
980,915

The Statement of Financial Activities includes all gains and losses in the period. All incoming resources and resources expended derive from continuing activities.

The accompanying notes form part of these financial statements.

9

Balance sheet

as at 31 December 2023

Unrestricted
Funds
2023
Restricted
Funds
2023
Note
£
£		 Total
Funds
2023
Total
Funds
2022
£
£
Fixed Assets
Social investments
6
-
637,000
Total Fixed Assets
-
637,000
Current Assets
Debtors
7
-
1,433,667
Cash at bank and in hand
8
54,691
919,579
Total Current Assets
54,691
2,353,246
Creditors - accruals: amounts falling due
within one year
9
(1,400)
(694,066)		 637,000
537,000
637,000
537,000
1,433,667
994,181
974,270
390,994
2,407,937
1,385,175
(695,466)
(1,260)
Net Current Assets
53,291
1,659,180		 1,712,471
1,383,915
Total Assets less Current Liabilities
53,291
2,296,180
Creditors – long term loan: amounts
fallingdue after more than oneyear
9
-
(1,290,000)		 2,349,471
1,920,915

(1,290,000)
(940,000)
Net Assets
53,291
1,006,180		 1,059,471
980,915
The funds of the Foundation:
Unrestricted funds
10
53,291
-
Restricted funds
10
-
1,006,180		 53,291
25,144
1,006,180
955,771
Total Funds
53,291
1,006,180		 1,059,471
980,915

The accompanying notes form part of these financial statements.

The company was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies. The member has not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts. These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.

The financial statements on pages 9 to 18 were approved by the trustees and signed on their behalf by:

Mr Nicholas Colloff Trustee

Date:

Sumerian Foundation: a company limited by guarantee, Company Registration No.10234246 (England & Wales)

10

Statement of Cash Flows for the year ended 31 December 2023

Statement of Cash Flows
for the year ended 31 December 2023
2023 2022
£ £
Cash flows from operating activities
Net cash (used in)/provided by operating activities 338,419 (522,707)
Cash flows from investing activities
Purchase of programme related investments (100,000) (80,000)
Net cash provided by (used in) investing activities (100,000) (80,000)
Cash flows from financing activities
Cash inflows from new borrowing 350,000 575,000
Net cashprovided by (used in) financing activities 350,000 575,000
Change in cash and cash equivalents in the reporting period 588,419 (27,707)
Cash and cash equivalents at the beginning of the reporting period 390,994 406,623
Change in cash and cash equivalents due to exchange rate movement (5,144) 12,077
Cash and cash equivalents at the end of the reporting period 974,270 390,994
Reconciliation of net income to net cash flow from operating activities
Net income for the reporting period (as per the statement of financial activities) 83,699 71,952
Adjustments for:
(Increase)/decrease in debtors (439,486) (501,060)
Increase/(decrease)in creditors 694,206 (93,599)
Net cashprovided by (used in) operating activities 338,419 (522,707)

11

Notes to the financial statements for the year ended 31 December 2023

1 Summary of Significant Accounting Policies

Basis of Preparation

These financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP FRS 102), the Financial Reporting Standard in UK and Republic of Ireland – (FRS 102 1A), the Charities Act 2011 and the Companies Act 2006.

Going concern

The financial statements have been prepared on a going concern basis, as the charity has free reserves of £53,291 and sufficient funds to undertake its activities in 2024. The trustees consider that there are no material uncertainties about the Foundation’s ability to continue as a going concern.

Fund accounting

Funds held by the Foundation are either:

Income

Donations are included in the Statement of Financial Activities when the Foundation becomes entitled to the income, receipt is probable and its amount can be measured reliably. Donated services, if applicable, are included in income at a valuation, which is an estimation of the value to the Foundation if it can be reliably measured. Interest income from cash held in bank accounts is recognised when received, and interest income from investments is recognised when receipt is probable and its amount can be measured reliably.

Expenditure

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the Foundation to pay out resources and the amount of the obligation can be measured with reasonable certainty. Support costs are allocated across charitable activities in proportion to the direct costs attributed to those activities.

Foreign currency transactions

Items of income and expenditure in non-GBP currencies are converted at the transaction date exchange rate where known, or otherwise at the average rate for the year. Monetary assets and liabilities denominated in currencies other than GBP are converted to GBP at the rate ruling at the balance sheet date. All realised gains and losses on exchange rates are reflected in the Statement of Financial Activities.

Investments

Impact first investments (social investments, which are also programme related investments, where the primary aim is a positive social impact) are carried at cost less any provision for impairment. Such investments are not able to be carried at fair value as they cannot be measured reliably as there is no open market for such investments. All impact first investments are subject to review, and any impairment is charged to the Statement of Financial Activities.

Debtors

Where the charity makes concessionary loans, these are initially recognised at the amount paid, with the carrying amount adjusted in subsequent years to reflect repayments and any accrued interest, less any provision for impairment. Any impairment on loans given from funds donated to the charity is charged to the Statement of

12

Financial Activities. Any impairment on concessionary loans given directly from non-recourse loans received by the charity are charged against this loan.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Non-recourse long term loans are recognised at cost less any impairments that directly arise from impairments of onward loans. Gains and losses arising on utilisation of nonrecourse loans are not charged to the Statement of Financial Activities.

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.

Public benefit entity

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

Key Judgement and Estimates

There are no key judgements that the charity has made which have a significant effect on the accounts. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Statutory information

Sumerian Foundation is a Charitable Company in England registration number 10234246. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 3 of these financial statements.

2 Income and Endowments

2023 2022
£ £
Unrestricted
Donations & gifts 12,000 10,000
Charitable activities - -
Investments 17,733 -
Restricted
Donations & gifts 312,352 313,205
Investments 18,375 5,651
Donated services
Donations &gifts - -
360,460 328,856

Included within restricted donations & gifts are grants from Comic Relief totalling £112,352 (2022: £127,205), Access Foundation totalling £87,500 (2022: £175,000) for providing investment readiness skills support to social enterprises; and Cardec Trust totalling £62,500 (2022: £nil) to make impact first investments and provide investment readiness skills support to social enterprises. Donated services were not received in either year.

13

3
Charitable Activities Expenditure
Unrestricted
Funds
2023
Restricted
Funds
2023
£
£		 Total
Funds
2023
Total
Funds
2022
£
£
UK Social Inequality facility
(1,586)
(275,077)
Africa Healthcare facility
-
(98)		 (276,663)
(242,798)
(98)
(14,106)
(1,586)
(275,175)		 (276,761)
(256,904)
Analysis of expenditure on charity activities:
Direct
costs
Support
costs
£
£		 Total
2023
Total
2022
£
£
UK Social Inequality facility
(266,477)
(10,186)
Africa Healthcare facility
-
(98)		 (276,663)
(242,798)
(98)
(14,106)
(266,477)
(10,088)		 (276,761)
(256,904)
Prior period comparatives:
Charitable Activities Expenditure
Unrestricted
Funds
2022
£		 Restricted
Funds
2022
Total
Funds
2022
£
£
UK Social Inequality facility
(7,066)
Africa Healthcare facility
(179)		 (235,732)
(242,798)
(13,927)
(14,106)
(7,245) (249,659)
(256,904)
Analysis of expenditure on charity activities:
Direct
costs
£		 Support
costs
Total
2022
£
£
UK Social Inequality facility
(235,732)
Africa Healthcare facility
(13,927)		 (7,066)
(242,798)
(179)
(14,106)
(249,659) (7,245)
(256,904)

Support costs consist of governance costs and administration costs such as bank charges and support meetings for organisations within the UK Social Inequality Facility, and are allocated across activities in proportion to the direct costs of those activities. A fee of £1,400 has been recognised for independent examination of the accounts (2022: £1,490). No fees were incurred during the year on assurance or tax services. The Foundation does not have any employees.

14

4 Trustee Information

No trustee received any remuneration from the Foundation during the year. No indemnity insurance for trustees’ liability has been purchased by the Foundation. However, because all trustees are appointed by Sumerian Partners (the sole member) they are automatically covered by Sumerian Partners’ Directors and Officers liability insurance policy. Insurance cover is permitted under clause 21 of the Foundation’s Articles of Association.

5 Taxation

The Foundation is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried out in furtherance of the Foundation's primary objectives, if these profits and surpluses are applied solely for charitable purposes. The Foundation is registered for VAT with HMRC as part of a VAT Group with Sumerian Partners Ltd (VAT number 319 1548 01).

6 Social investment assets

Programme related
investments
2023
£		 Programme related
investments
2022
£
Cost less impairment brought forward at 1 January
537,000
Purchases
100,000
Sales
-
Impairment
-		 457,000
100,000
(20,000)
-
Total social investments
637,000		 537,000

The Foundation holds six impact first investments (programme-related investments where the primary aim is positive social impact); an investment in transferable shares in East End Fair Finance, a Community Benefit Society registered in the UK, transferable shares in East Lancs Moneyline (IPS) Ltd, preference shares in Innovating Minds CIC Ltd, ordinary shares in Thrive Therapeutic Software Ltd, preference shares in 2-3 Degrees Ltd, and preference shares in New Leaf Initiative CIC. Both East End Fair Finance and East Lancs Moneyline are Community Benefit Societies providing affordable credit to people who would be otherwise financially excluded in the UK. Innovating Minds provides early intervention mental health support and training to help people access education and employment. Thrive Therapeutic Software provides individuals with evidence based mental health solutions via an NHS approved app. 2-3 Degrees provides employability and self esteem workshops for young people from disadvantaged areas. New Leaf Initiative provides ex-offenders with a programme of support and training as they leave prison.

7 Debtors

7
Debtors
2023
2022
£
£
Other debtors <1yr
Other debtors >1yr		 269,992
-
1,163,675
994,182
Total debtors 1,433,667
994,182

Debtors due in less than one year include the following concessionary loans:

15

Debtors due in more than one year consist of the following concessionary loans:

Debtors due in more than one year are after impairment provision on concessionary loans of £85k at the year end due to remote possibility of recoverability. This impairment on concessionary loans made directly from non-recourse loans received by the Foundation, are charged against non-recourse loans.

8
Cash at bank and on hand		 2023
2022
£
£
Cash at Bank 974,270
390,994
Total cash at bank and on hand 974,270
390,994

16

9
Creditors		 2023
2022
£
£
Creditors due <1yr
Creditors due after more than fiveyears		 695,466
1,260
1,290,000
940,000
Total creditors 1,985,466
941,260

Included within Creditors due in one year is deferred grant income received during the year totalling £637,500 (2022: £nil) to make impact first investments and provide investment readiness skills support to social enterprises.

Creditors due after more than five years consist of a non-recourse loan of £260k to be repaid in 2029, and a nonrecourse loan of £1,030k to be repaid in 2031. These non-recourse loans are used to make concessionary loans as disclosed in note 7. The non-recourse loan is after an impairment provision of £85k due to remote possibility of recoverability of concessionary loans made by the Foundation. This impairment on concessionary loans made directly from non-recourse loans received by the Foundation, are charged against non-recourse loans.

10
Funds		 10
Funds		 Balance
Incoming
1 Jan 2023
Resources
£
£		 Balance
Incoming
1 Jan 2023
Resources
£
£
Unrestricted Funds
Restricted Funds		 25,144
29,733
955,771
330,727
980,915
360,460
The prior year funds and movements were:
Balance
Incoming
1 Jan 2022
Resources
£
£
Unrestricted Funds
22,389
10,000
Restricted Funds
874,497
318,856
896,886
328,856
Unrestricted Funds
22,389
10,000
Restricted Funds
874,497
318,856		 (7,245)
25,144
(237,582)
955,771
896,886
328,856		 (244,827)
980,915

Restricted funds in the current and prior year relate to the Foundation’s UK Social Inequality charitable activities and Africa Healthcare charitable activities. The restricted fund balance at the 2023 year end, represents net investments and concessionary loans after deducting the Foundation's non-recourse loan liability, in 17 social purpose organisations as explained in notes 6 and 7.

17

11 Prior year Balance Sheet

11
Prior year Balance Sheet
Unrestricted
Funds
2022
£		 Restricted
Funds
2022
Total
Funds
2022
£
£
Fixed Assets
Social investments
-
Total Fixed Assets
-
Current Assets
Debtors
-
Cash at bank and in hand
26,404
Total Current Assets
26,404
Creditors - accruals: amounts falling due within one year
(1,260)		 537,000
537,000
537,000
537,000
994,181
994,181
364,590
390,994
1,358,771
1,385,175
-
(1,260)
Net Current Assets
25,144		 1,358,771
1,383,915
Total Assets less Current Liabilities
25,144
Creditors – long term loan: amounts falling due after
more than oneyear
-		 1,895,771
1,920,915
(940,000)
(940,000)
Net Assets
25,144		 955,771
980,915
The funds of the Foundation:
Unrestricted funds
25,144
Restricted funds
-		 -
25,144
955,771
955,771
Total Funds
25,144		 955,771
980,915

12 Capital

The Foundation is a company limited by guarantee. The sole member has undertaken to contribute £1 to the assets of the Foundation to meet its liabilities if called on to do so.

13 Related party transactions

The sole member of the Foundation is Sumerian Partners Limited, a company registered in England and Wales. Dr Chris West is a trustee of the Foundation and also a director of Sumerian Partners Ltd. Ms Isabelle Irani is a trustee of the Foundation and also a director of Sumerian Partners Ltd. Mrs Amy Gutcher was a trustee of the Foundation during the year and also an employee of Sumerian Partners Limited. Sumerian Partners Limited gave an unrestricted donation of £25,000 in 2016, £5,000 in 2021, £10,000 in 2022 and £12,000 in 2023 to Sumerian Foundation, for the furtherance of its charitable objects.

In 2017 Sumerian Foundation engaged Sumerian Partners Limited to provide business skills support and mentoring to the Foundation’s social investments. A Service Level Agreement has been put in place by the independent Trustees of the Foundation for this work. During the year £242,066 was incurred under this agreement with Sumerian Partners Limited (2022: £246,951) which is included in direct costs in note 3. The agreement also allows for pro bono services to be provided by Sumerian Partners Limited to the Foundation, including office space and administration. The Trustees believe that the value of pro bono services cannot be measured reliably, hence these have not been included in the financial statements. The agreement is reviewed annually by the Independent Trustees.

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