Charity number: 1170583
THE FYRISH FOUNDATION CIO
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
THE FYRISH FOUNDATION CIO
FOR THE YEAR ENDED 31 DECEMBER 2020 CONTENTS
| Page | |
|---|---|
| Reference and administration information | 1 |
| Trustees' report | 2 - 11 |
| Independent auditor's report | 12 - 15 |
| Statement of financial activities | 16 |
| Statement of financial position | 17 |
| Statement of cash flows | 18 |
| Notes to the financial statements | 19 - 25 |
THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 REFERENCE AND ADMINISTRATIVE INFORMATION
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Charity registration number: 1170583
Correspondence address: Dickson Minto
Broadgate Tower
20 Primrose Street
London
EC2A 2EW
Trustees: Murdoch Murchison - Chairperson
Duncan Maclean
Gareth Magee
Foundation Secretary: Calum Mitchell
Bankers: Handelsbanken
18 Charlotte Square
Edinburgh
EH2 4DF
Independent Auditors: BDO LLP
Citypoint
65 Haymarket Terrace
Edinburgh
EH12 5HD
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT
Introduction
The Trustees present their report and financial statements for the year ended 31 December 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s constitution, the Charities Act 2011 and the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and the Republic of Ireland (FRS 102).
The Trustees confirm that they have taken due regard of the Charity Commission's general guidance on public benefit.
Administrative Details
The Fyrish Foundation (henceforth "the Foundation”) is a Charitable Incorporated Organisation (CIO) which was registered with the Charity Commission for England and Wales on 6 December 2016.
The Foundation’s registered charity number is 1170583.
Structure, governance and management
The governing document of the Foundation is its constitution dated 15 November 2016.
The Board of Trustees comprises three trustees and has been served during the reporting period by the Foundation secretary.
The Trustees meet regularly to discuss the operations of the Foundation and to ensure that the management of the Foundation is appropriate. No decisions can be taken unless a quorum of Trustees is present. In the case that there is an equal vote, the chair of the meeting has the casting vote. Management accounts are produced quarterly and are reviewed by the Trustees along with regular investment updates.
The Trustees are responsible for everything the Foundation does. However, to ensure that the Foundation is managed effectively, the Trustees have delegated some day-to-day decisions to the Secretary.
The Trustees are not remunerated for their services.
Recruitment and appointment of new Trustees
The requirement for additional Trustees is kept under regular review at Trustee meetings. During the year ended 31 December 2020 the Trustees were satisfied that the current team brings together the necessary skills and experience.
Risk management
The Trustees have a risk management strategy in place, which is designed to identify and record any significant risks, allocate responsibility for mitigating these and monitor the processes put in place to mitigate these risks.
The principal risks and uncertainties facing the Foundation are related to investment market risk. The Trustees keep these risks under regular review and take appropriate action to mitigate these risks. Investment market risk is mitigated by the Foundation investing in four different equity funds.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT (continued)
Going concern
The Foundation has a healthy net assets position and at the balance sheet date held an investment portfolio and cash balances valued at £30,542,524 (2019 - £25,390,040) and £13,101,619 (2019 - £13,158,335) respectively. The most significant expenditure of the Foundation is grants payable which for the year totalled £666,402 (2019 - £339,418).
In addition, the Trustees have prepared budgets and cash flow projections for the year ended 31 December 2022, giving due consideration to the on-going impact of COVID-19. These budgets and projections show that the Foundation will continue to have adequate resources to meet its obligations for the foreseeable future.
The Trustees consider that even with a severe recession, caused by COVID-19 having a materially adverse impact on investments, the Foundation would still have significant net assets and would be able to meet all commitments as they fall due for at least 12 months from the date of approval of these statements.
Based upon the above the Trustees consider the Foundation to have sufficient resources to continue as a going concern and hence the financial statements have been prepared on a going concern basis.
Objectives and activities
The Foundation’s object is “to advance such charitable purposes (according to the law of England and Wales) as the Trustees see fit from time to time, where such purposes are pursued in accordance with Christian teaching.” The Foundation’s main priorities, for the public benefit, are;
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The prevention or relief of poverty
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The advancement of health or saving lives
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Community development, particularly in marginalised sections of society, and
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Faith based projects
The Trustees receive applications requesting support from various organisations and these applications are considered at Trustee meetings. Decisions are made in line with the Foundation’s constitution.
The Foundation is fulfilling, and will continue to fulfil, its charitable purposes by awarding grants on a regular and continuing basis.
The Trustees have put in place a process to regularly monitor supported projects. This monitoring is to ensure that outcomes are in line with the application as submitted and approved. In addition, it forms part of the process of assessing continuing support for multi-year grants.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT (continued)
Grant making policy
The Foundation receives applications to support both revenue and capital costs. Grants are made either by means of a single payment, or in instalments, or as multi-year grants and may be conditional on progress against project milestones. The size of grants awarded is at the discretion of the Trustees.
The Trustees consider it prudent, for the time being, to operate a ‘venture philanthropy’ type model and an open-application system. This allows the Foundation space both to consider applications and to research specific areas of need that are in-line with its charitable objects to assess where the Foundation can have maximum impact.
Achievements and performance
2020 has been a particularly challenging year for many people. With the arrival of COVID-19 the Foundation took steps to contact existing grant recipients and discuss ways in which the Foundation could offer support during this difficult time. As a result, the Foundation either made or de-restricted grants totalling £143,320 in support of its grant recipients.
Amongst the Foundation’s other live grants these funds assisted charitable organisations providing; emergency hospital admission packs, food bank supplies, food parcel provisions, activity packs for school children and specialist staffing for a project rehousing the homeless community during the first lockdown.
The Foundation’s investment portfolio did not escape the market turbulence during February and March; however, it made a strong recovery in the latter half of the year. The Foundation’s cash reserves ensured that grant-making commitments were fully covered at all times. These cash reserves were also used to make additional investments while discounted buying opportunities existed which will further underpin the Foundation’s long-term grant-making goals.
In the reporting period to 31 December 2020, the Foundation issued 20 grants totalling £666,402 (2019: £339,418).
These grants have been made across a number of areas including; youth work, prevention or relief of poverty, community development and COVID-19 emergency support. Organisations and projects supported in the year ended 31 December 2020 include;
Ferrywell Youth Project (www.ferrywell.org.uk)
The Foundation issued the second instalment of a three-year grant to support a staff post in North Edinburgh. Ferrywell Youth Project delivers a wide-ranging program of youth work in the areas of Pilton, Muirhouse and Drylaw in Edinburgh.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT (continued)
Holy Trinity Wester Hailes (www.holytrinitywesterhailes.org.uk)(www.capuk.org)
The Foundation issued the first instalment of a three-year grant to assist Holy Trinity Wester Hailes, which is a Church of Scotland congregation in Edinburgh, appoint a part time CAP Debt Centre manager at their church in Wester Hailes. CAP (Christians Against Poverty) is a national charity helping people out the personal crisis associated with unmanageable debt.
H2O (www.hope2oban.org.uk)
The Foundation issued the first instalment of a three-year grant to support a staff post for H2O’s youth work programme in Oban. H2O aims to serve young people by helping to meet their physical, emotional, social and spiritual needs through innovative and dynamic Christian youth work.
Home for Good (www.homeforgood.org.uk)
The Foundation issued the first instalment of a three-year grant to support Home for Good’s promotion of fostering, adoption and associated advocacy work in Scotland delivered by their national lead.
Abernethy Trust (www.abernethy.org.uk)
The Foundation issued a single year grant for the completion of works to the sports barn at Abernethy Trust’s Barcaple centre. Prior to works commencing, and at the request of management, the grant was de-restricted in response to the financial challenges of the COVID-19 pandemic.
Ferrywell Youth Project (www.ferrywell.org.uk)
The Foundation issued a single year small grant to Ferrywell Youth Project for the provision of activity packs to primary school children within their sphere of operation. These were delivered during the first national lockdown during spring 2020.
The Salvation Army (www.salvationarmy.org.uk)
The Foundation issued a single year grant to The Salvation Army in East Scotland to support their emergency food provision. Over 2,200 takeaway meals were provided across 11 centres, mostly to homeless single adults.
Bethany Christian Trust (www.bethanychristiantrust.com)
The Foundation issued a single year grant that helped Bethany Christian Trust partner with the City of Edinburgh Council in rehousing the homeless community in the Old Waverly Hotel during the first national lockdown. Specifically, this grant allowed Bethany Christian Trust to provide specialist staffing from 16 April to 16 July.
Bethany Christian Trust (www.bethanychristiantrust.com)
The Foundation also issued a single year grant which helped Bethany Christian Trust deliver a variety of emergency help including 396 ‘Emergency Packs’ and 100 ‘Hospital Packs’ to those in need and to people who were admitted to hospital with COVID-19.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT (continued)
Alpha International (www.alpha.org)
The Foundation issued the first instalment of a two-year grant to double the staffing provision allocated to running the Alpha course in prisons in Scotland. Alpha is an 11-week course that creates a space, online or in person, where people are excited to bring their friends for a conversation about faith, life and God.
Alpha International (www.alpha.org)
The Foundation also issued a single year grant toward the costs of content creation for Alpha International’s new digital platform. The platform is being developed as a response to restrictions on in person meetings that were necessary in 2020. This will allow the Alpha course to be run virtually as well as in person.
Grace Church Leith (www.gracechurchleith.org)
The Foundation issued a single year grant to Grace Church Leith to aid the purchase of a new building on Leith Walk, Edinburgh.
Mission Initiative Newcastle East (www.minebyker.co.uk)
The Foundation issued a single year grant to support a trainee scheme run by Mission Initiative Newcastle East. Mission Initiative Newcastle East represents 5 Anglican churches in Newcastle East who work together to engage with and offer services to the community. The trainee scheme is for any young person aged 16-23 who want to grow in their faith, learn new things, and be a positive role model for the children and young people connected to Mission Initiative Newcastle East.
St Columba’s Free Church of Scotland (www.sparkle.stcsfc.org)
The Foundation issued a single year grant toward core costs of the Sparkle Sisters programme. Sparkle Sisters aim is to enhance the lives of vulnerable women in Edinburgh through a series of events, befriending and mentoring programmes.
Operacion San Andres (www.operacionsanandres.org)
The Foundation issued a single year grant to support Operacion San Andres’s emergency response to COVID-19 in Collique, Peru. Operacion San Andres is a non-profit charitable organisation registered in Peru and the USA. The emergency relief provided differing forms of monetary and food aid and supported around 2500 people for a period of seven months.
International Justice Mission (www.ijm.org)
The Foundation issued a single year grant to International Justice Mission as part of their ‘Big Give’ Christmas appeal to help find and free sex trafficked children. The Foundations initial grant opened up match funding as part of the ‘Big Give’ funding process.
Malawi Fruits (www.malawifruits.org.uk)
The Foundation issued a single year grant to facilitate the purchase of polytunnels for community farming projects run by a local church in Malawi. In total the grant funding secured 10 new polytunnels. Each one generates the means for three women to earn a year round income.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT (continued)
Bethany Christian Trust (www.bethanychristiantrust.com)
The Foundation also issued a single year grant toward the core operating costs of Bethany Christian Trust’s Rapid Re-accommodation Welcome Centre, a service that replaces the former Winter Care Shelter. The Rapid Reaccommodation Welcome Centre provides a warm bed, hot meal and access to support for the homeless community with an emphasis on providing a route out of rough sleeping.
Freedom Network International (www.dfn.org.uk)
The Foundation issued a single year grant towards the set-up and year one operating costs of a virtual health care clinic forming part of Freedom Network International's wider health care programme in India.
Grassmarket Community Project (www.grassmarket.org)
The Foundation issued the first instalment of a two-year grant to support the staffing costs of the Member Services Manager role. The Grassmarket Community Project takes an innovative approach to community, providing sanctuary and support to many of Edinburgh and the Lothians’ most vulnerable citizens.
The Trustees continue to regularly review the Foundation’s objectives and activities and are satisfied the objectives are being achieved.
The Trustees receive regular investment updates and are satisfied that returns on the sums invested are in line with expectations.
Financial Review
At 31 December 2020 the Foundation had £44,057,668 (2019 - £39,196,985) of unrestricted funds which will be used to meet the Foundation's objectives.
At 31 December 2020 the Foundation held investments of £30,542,524 (2019 - £25,390,040) and cash in the bank of £13,101,619 (2019 - £13,158,335).
Investment policy and performance
The Foundation has invested in four different equity funds with an emphasis on long term capital appreciation. This spreads the portfolio of investments and ensures that the investments are not overly focussed on one area of the market. The Trustees monitor the performance of the investments and ensure that the returns and growth are optimised.
During the year ended December 2020, additional investments totalling £6,500,000 were made across three of the current equity funds in line with the Foundation’s investment objectives.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT (continued)
Reserves policy
The Trustees ensure that the Foundation has sufficient reserves to meet all operating costs and to award grants in the furtherance of its objectives. The reserves requirement is reviewed in each grant award window.
Plans for the future
The Foundation continues to develop its grant-making infrastructure and, in collaboration with Hyphen8, is working toward the delivery of an online application platform. It is also actively engaged in researching areas, in line with its charitable objectives, into which it will make grants in years to come.
The Foundation has already issued grants totalling £470,996 in 2021 (2020 - £438,096) and further grants are under consideration. These have all been in line with the Foundation's objectives and have been awarded to a range of organisations. The Foundation continues to receive applications and the Trustees will review these with a view to supporting further organisations and projects in line with the Foundation's objectives.
Post year end events and COVID-19
The Foundation continues to hold ongoing discussions with grant recipients, exploring ways to mitigate the impact of COVID-19 on their work. Many of the challenges will only become known over time as government support schemes tail off and the extent of disruption to charitable income becomes evident. The Foundation hopes to find flexible and timely ways of supporting its grant recipients.
In 2021 the Foundation has awarded 21 new grants which, with existing grant commitments, totals £1,200,827. These grants have been made across a variety of projects and organisations.
Further grant applications are under consideration and the Foundation anticipates grant expenditure in 2021 being significantly higher than the previous financial year. All grant commitments this year and in following years are fully covered by the Foundation’s resources.
Related parties
The Foundation is invested in the Kiltearn Global Equity (Ireland) Fund which is a fund managed by Kiltearn Partners LLP. During the year ended 31 December 2020 one of the Foundation’s Trustees, Murdoch Murchison, was a partner in Kiltearn Partners LLP. The Foundation incurs investment management fees relating to this investment which are deducted from the funds and paid to Kiltearn Partners LLP. These fees are based on Kiltearn Partners LLP’s standard fee scale and have been reviewed and approved by the Trustees.
Azets provides financial and accounting services to the Foundation. During the year ended 31 December 2020 one of the Foundation’s Trustees, Gareth Magee, was employed by Azets.
Brodies LLP provides legal advice to the Foundation. During the year ended 31 December 2020 one of the Foundation’s Trustees, Duncan MacLean, was a partner in Brodies LLP.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT (continued)
Auditor
All of the current Trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the Foundation's auditor for the purposes of their audit and to establish that the auditor is aware of that information. The Trustees are not aware of an relevant audit information of which the auditor is not aware.
Trustees' responsibilities
The Trustees are aware that they are responsible for preparing the Trustees’ Annual Report and Accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.
In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures
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• disclosed and accounting estimates in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity
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• will continue in business.
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. 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.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT (continued)
Summary of grants issued in 2020
| Pecan Southmead Project Wellspring Kick England England England England UK International Justice Mission Europe/UK MACS Gateway Church Healthy Living Project Bethany Christian Trust Edinburgh Home for Good Scotland Summary of grants issued in 2021 to date Organisation Holy Trinity Wester Hailes India Edinburgh Location Edinburgh England England Peru UK UK Birmingham Malawi Edinburgh Edinburgh Edinburgh Scotland Edinburgh Newcastle Edinburgh Operacion San Andres Bethany Christian Trust Freedom Network International Grassmarket CP Alpha International International Justice Mission Just Caring_(1)_ Malawi Fruits Organisation Ferrywell Youth Project Holy Trinity Wester Hailes H2O Home for Good Abernethy Trust Ferrywell Youth Project The Salvation Army Bethany Christian Trust Bethany Christian Trust Alpha International Grace Church Leith Scotland Kirkcudbright Edinburgh Scotland Location Edinburgh Edinburgh Oban Niddrie Community Church Scotland Mission Initiative Newcastle East St Columba’s FCoS |
Total grants issued in 2020 £438,096 Total grants issued in 2021 to date £470,996 Core costs [operating costs] Core costs [operating costs] Core costs [operating costs – phase 1 expansion] Core costs [activities programme] Core costs [operating costs] Core costs [Welcome Centre] Grant Type Core costs [staff – 3-year commitment] Core costs [social inclusion project] Core costs [operating costs] Core costs [building the platform – Europe] Core costs [Welcome Centre] Core costs [virtual health care clinic] Core costs [staff post] Capital costs [poly tunnel project] Core costs [trainee programme] Core costs [sparkle sisters programme] Covid-19 [support costs] Core costs [digital platform] Core costs [activity packs – school children] Covid-19 [foodbank funding] Covid-19 [winter care shelter staffing provision] Covid-19 [hospital care packages] Core costs [staff post] Capital costs [contribution to asset purchase] Grant Type Core costs [staff – 3-year commitment] Core costs [staff – 3-year commitment] Core costs [staff – 5-year commitment] Core costs [staff – 3-year commitment] Capital costs [building refurb – 1 year] Core costs [‘Big Give’ funding partnership] Capital costs [site servicing costs] Core costs [staff – 3-year commitment] Core costs [20schemesRetrain legal advice] |
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- grant made, or de-restricted, as a result of Covid-19
(1) grant awarded but not yet issued, not included in total for 2020
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES’ REPORT (continued)
Future grant commitments
| Year | Number | of | Grants | Grants awarded and yet to be issued |
Grants awarded and yet to be issued |
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| 2021 | 8 | £285,306 | ||||||
| 2022 | 9 | £359,785 | ||||||
| 2023 | 6 | £290,392 | ||||||
| 2024 | 2 | £121,672 | ||||||
| Future grant commitments £1,057,115 mmary of grants issued since the inception of the Foundation |
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| Year | Number of Grants | Grants | Issued | Percentage increase on previous year |
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| 2017 | - | - | - | |||||
| 2018 | 6 | £75,000 | - | |||||
| 2019 | 3 | £339,418 | 353% | |||||
| 2020 | 20 | £438,096 | 29% | |||||
| 2021(3) | 21 | £1,200,827 | 174% | |||||
| Total grants awarded £2,380,665 Total grants issued £1,323,510 |
(4) (5) |
Summary of grants issued since the inception of the Foundation
(3) figure includes grants issued and those approved pending release in 2021
(4) total grants issued to date
(5) total grants awarded to date
Approved by the Trustees on 2 November 2021 and are signed on their behalf by:
………………………………………………………. Murdoch Murchison (Chairperson of Trustees)
Date : 2 November 2021
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES
Opinion on the financial statements
In our opinion, the financial statements:
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give a true and fair view of the state of the Foundation’s affairs as at 31 December 2020 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
We have audited the financial statements of The Fyrish Foundation CIO (“the Foundation”) for the year ended 31 December 2020 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and notes to the financial statements, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remain independent of the Foundation in accordance with the ethical requirements 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.
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 Foundation’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.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES (continued)
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities Act 201 requires us to report to you if, in our opinion;
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the information contained in the financial statements is inconsistent in any material respect with the Trustees’ annual report; or
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adequate accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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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 determines 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 Foundation’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 Foundation or to cease operations, or have no realistic alternative but to do so.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES (continued)
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 the Act and relevant regulations made or having effect thereunder.
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.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
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performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud and tested accordingly;
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reading minutes of management meetings and of those charged with governance and reviewing correspondence with regulatory bodies, such as HMRC;
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assessing whether the accounting policies, treatments and presentation adopted in the financial statements is in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) and the Charities Act 2011 and whether there are instances of potential bias in areas with significant degrees of judgement;
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in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business;
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vouching balances and reconciling items in management’s key control account reconciliations to supporting documentation as at 31 December 2020; and
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carrying out detailed testing, on a sample basis, of material transactions, financial statement categories and balances to appropriate documentary evidence to verify the completeness, occurrence and accuracy of the reported financial statements.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES (continued)
Auditor’s responsibilities for the audit of the financial statements (continued)
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://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 Foundation’s Trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the Foundation’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 Foundation and the Foundation's Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
BDO LLP
BDO LLP, statutory auditor Edinburgh, UK 04 November 2021 Date ……………………………………
BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 STATEMENT OF FINANCIAL ACTIVITIES
| Notes Income Donations Gift Aid Income Investment income 3 Total Income Expenditure Charitable expenditure 4,5 Total expenditure Net (losses)/gains on investment assets 7 Total net income Reconciliation of funds: Total funds brought forward Net movements in funds Total funds carried forward 12 Net income before gains on investment assets |
7,000,000 12,000,000 - 7,506,250 654,237 689,646 7,654,237 20,195,896 (787,026) (427,964) (787,026) (427,964) 6,867,211 19,767,932 (2,006,528) 2,021,337 4,860,683 21,789,269 39,196,985 17,407,716 4,860,683 21,789,269 44,057,668 39,196,985 Unrestricted Funds Year ended 2019 £ Unrestricted Funds Year ended 2020 £ |
|---|---|
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 19 to 25 form part of these financial statements.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 STATEMENT OF FINANCIAL POSITION
| Notes Fixed Assets Investments 7 Tangible Assets 8 Current Assets Debtors 9 Cash at bank Creditors: amounts falling due within one year Creditors 10 Net current assets Total assets less current liabilities Creditors: amounts falling due within one year Creditors 11 Net assets Unrestricted funds 12 |
£ £ 30,542,524 13 30,542,537 654,238 13,101,619 13,755,857 (194,326) 13,561,531 44,104,068 (46,400) 44,057,668 44,057,668 2020 |
£ £ 25,390,040 398 25,390,438 659,012 13,158,335 13,817,347 (10,800) 13,806,547 39,196,985 - 39,196,985 39,196,985 2019 |
|---|---|---|
The financial statements were approved by the trustees on 2 November 2021 and are signed on their behalf by:
………………………………………………………. Murdoch Murchison (Chairperson of trustees)
The notes on pages 19 to 25 form part of these financial statements.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 STATEMENT OF CASHFLOWS
| Notes Cash flows from operating activities: Net cash provided by operating activities A Cash flows from investing activities: Purchase of investments Purchase of fixed assets |
£ £ 7,102,296 (7,159,012) - 2020 |
£ £ 7,102,296 (7,159,012) - 2020 |
£ £ 19,550,087 (7,455,158) - 2019 |
£ £ 19,550,087 (7,455,158) - 2019 |
|---|---|---|---|---|
| Net cash used in investing activities | (7,159,012) | (7,455,158) | ||
| Change in cash and cash equivalents in the reporting Cash and cash equivalents at beginning of period |
period | (56,716) 13,158,335 |
12,094,929 1,063,406 |
|
| Cash and cash equivalents at end of period | 13,101,619 | 13,158,335 | ||
| A Reconciliation of net income to net cash from Net income for the reporting period (as per the statement of financial activities) Adjustments for: Unrealised losses/(gains) on investments Depreciation Decrease/(increase) in debtors Increase/(decrease) in creditors |
operating | activities 4,860,683 2,006,528 385 4,774 229,926 |
21,789,269 (2,021,337) 385 (203,074) (15,156) |
|
| Net cash provided by operating activities | 7,102,296 | 19,550,087 |
The notes on pages 19 to 25 form part of these financial statements.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS
1 Accounting policies
Charity information
The Fyrish Foundation CIO is a Charitable Incorporated Organisation (CIO) incorporated in England and Wales and governed by a constitution dated 15 November 2016. It is registered with the Charity Commission under charity number 1170583. The registered office is care of Dickson Minto, Broadgate Tower, 20 Primrose Street, London, EC2A 2EW.
(a) Basis of preparation
The financial statements are prepared in accordance with the Statement of Recommended Practice - Accounting and Reporting by Charities in the UK and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standards applicable in the UK and Republic and Ireland (FRS 102 Section 1A), and the Charities Act 2011. The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in pound sterling and rounded to the nearest pound sterling.
The principal accounting policies adopted are set out below:
(b) Going concern basis
The financial statements have been prepared on the going concern basis. The anticipated income from donations, together with existing reserves, will be sufficient to meet the charity's ongoing commitments for the foreseeable future.
The Foundation has a healthy net assets position and the trustees have prepared budgets and cash flow projections for the year ended 31 December 2022, giving due consideration to the ongoing impact of COVID-19. These budgets and projections show that the Foundation will continue to have adequate resources to meet its obligations for the foreseeable future.
The Foundation has a material investment portfolio and cash balance valued at £30,542,524 (2019 - £25,390,040) and £13,101,619 (2019 - £13,158,335) respectively at the balance sheet date. The most significant expenditure of The Foundation was that of the grants payable which for the year total £666,402 (2019 -£339,418). The Trustees consider that even with a severe recession, caused by COVID-19, having a material adverse impact on investments, The Foundation will still have significant net assets to be able to meet all commitments as they fall due for at least 12 months from the date of approval of these financial statements.
Based upon the above the Trustees consider The Foundation to have sufficient resources to continue as a going concern and hence the financial statements have been prepared on a going concern basis.
(c ) Funds structure
Unrestricted funds comprise those funds which the Trustees are free to use for any purpose in the furtherance of the charitable objectives.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS (continued)
(d) Income recognition
All income is recognised once the Foundation has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability. Cash donations are recognised on receipt. Other donations are recognised once the Foundation has been notified of the donation, unless performance conditions require deferral of the amount.
Investment income comprises dividends generated by the Foundation's share portfolios. This is recognised in the Statement of Financial Activities when receivable.
(e) Tangible assets
Tangible assets are initially recorded at cost on the day of purchase, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Only assets in excess of £1,000 are capitalised. Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Office Equipment
33% straight line
(f) Fixed asset investments
Fixed asset investments are initially measured at transaction price including transaction costs, and are subsequently measured at fair value on an open market basis at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year.
(g) Financial instruments
Financial instruments are recognised in the Statement of Financial Position when the Foundation becomes party to the contractual provisions of the instrument. The Foundation only enters in to basic financial instruments which are initially measured at transaction price.
Financial assets are derecognised when the contractual rights to the cashflows from the asset expire. Financial liabilities are derecognised only once the liability has been extinguished through discharge, cancellation or expiry.
(h) Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS (continued)
2 Accounting estimates and judgements
In the application of the Foundation's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
There are no significant areas of judgement or assumptions that affect items in the financial statements with respect to the next reporting period.
| 3 Investment income Dividends - UK Equities Dividends - Overseas Equities Interest receivable 4 Charitable expenditure 2020 - Analysis of grants Abernethy Trust Alpha Scotland Bethany Christian Trust Ferrywell Youth Project Freedom Network International Grace Church Grassmarket Community Project H2O Holy Trinity Wester Hailes Home for Good International Justice Mission St Columba's Free Church of Scotland The Salvation Army Operation San Andres Malawi Fruits Mission Initiative Newcastle East |
Grants awarded £ 27,000 100,000 170,720 30,092 17,800 20,000 40,000 90,000 49,200 50,590 18,000 5,000 10,000 15,000 16,000 7,000 666,402 |
2020 £ 136,329 517,908 - 654,237 Support costs £ 4,887 18,101 30,902 5,447 3,222 3,620 7,240 16,291 8,906 9,157 3,258 905 1,810 2,715 2,896 1,267 120,624 |
2019 £ 157,723 501,289 30,634 689,646 Total £ 31,887 118,101 201,622 35,539 21,022 23,620 47,240 106,291 58,106 59,747 21,258 5,905 11,810 17,715 18,896 8,267 787,026 |
|---|---|---|---|
Support costs are allocated based upon the proportion of the grant awarded versus total grants.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS (continued)
4 Charitable expenditure (continued)
| 2019 - Analysis of grants Bethany Christian Trust H2O Ferrywell Youth Project 5 Support costs Audit fees Bookkeeping Legal, professional and consulting fees Bank charges Office equipment depreciation IT Software subscriptions Other subscriptions Other costs |
Grants awarded £ 285,000 21,000 33,418 339,418 |
Support costs £ 74,350 5,478 8,718 88,546 2020 £ 12,420 32,162 47,872 550 385 23,661 454 3,120 120,624 |
Total £ 359,350 26,478 42,136 427,964 2019 £ 10,050 26,976 49,011 540 385 1,557 27 - 88,546 |
|---|---|---|---|
During the year there were no costs incurred in relation to governance costs (2019 - £Nil) except for audit fees as disclosed above.
6 Trustees' expenses and remuneration and transactions with trustees
During the year, the key management personnel in charge of directing and controlling, running and operating the Foundation on a day-to-day basis was the Foundation secretary, Calum Mitchell. The Foundation secretary receives no remuneration (2019 - £Nil). None of the Trustees (or any persons connected with them) received any remuneration or reimbursement of expenses during the year in respect of their services.
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS (continued)
| 7 Investments Brought forwards Additions at cost Net unrealised (loss)/gain Market value |
2020 £ 25,390,040 7,159,012 (2,006,528) 30,542,524 |
2019 £ 15,913,545 7,455,158 2,021,337 25,390,040 |
|---|---|---|
The historical cost of listed investments at 31 December 2020 is £32,636,548 (2019 - £25,477,536).
The net loss on investments of £2,006,528 in the Statement of Financial Activities includes an unrealised loss of £2,006,528 (2019 - gain of £2,021,337) and a realised gain of £Nil (2019 - £Nil).
At 31 December 2020 listed investments comprised the following:
| UK Equities Overseas Equities 8 Tangible fixed assets Cost At 1 January 2020 Additions At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
2020 £ 6,946,017 23,596,507 30,542,524 Computer Equipment £ 1,168 - 1,168 (770) (385) (1,155) 13 398 |
2019 £ 5,140,025 20,250,015 25,390,040 Total £ 1,168 - 1,168 (385) (385) (770) 13 783 |
|---|---|---|
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS (continued)
----- Start of picture text -----
9 Debtors 2020 2019
£ £
Other debtors 654,238 659,012
654,238 659,012
Other debtors represent dividends receivable on investments. These are dividends that are declared but
not yet received as at the year end.
10 Creditors: amounts falling due within one year 2020 2019
£ £
Accruals 12,420 10,800
-
Grants payable 181,906
194,326 10,800
11 Creditors: amounts falling due after one year
2020 2019
£ £
-
Grants payable after 1 year 46,400
-
46,400
12 Reserves
2020 2019
£ £
At 1 January 2020 39,196,985 17,407,716
Income 7,654,237 20,195,896
Expenditure (787,026) (427,964)
Net (losses)/gains on investment assets (2,006,528) 2,021,337
At 31 December 2020 44,057,668 39,196,985
----- End of picture text -----
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THE FYRISH FOUNDATION CIO FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE FINANCIAL STATEMENTS (continued)
13 Contingent liabilities
During the year, the Foundation awarded a guarantee to International Justice Mission for any shortfall on their funding campaign towards a specific project. The guarantee is limited to £100,000, was authorised on 20 May 2020, and has a one year duration.
The Foundation has reclaimed gift aid in relation to donations received from a Trustee in the previous financial year. At the year end there was an ongoing enquiry by HMRC into gift aid claimed to date of £7.506m. Whilst no final decision has been made by HMRC, the Trustees are of the view that the gift aid has been validly claimed. A contingent liability has however been disclosed in the event that any possible repayment to HMRC is required.
14 Related parties
The related party transactions in the year have taken place at arm's length.
During the year Murdoch Murchison, a Trustee of the Foundation donated £7,000,000 (2019 - £12,000,000).
Included within fixed asset investments is a £15,032,448 (2019 - £15,876,510) investment in the Kiltearn Global Equity (Ireland) Fund, the fund advisor of which is Kiltearn Partners LLP. During the year-ended 31 December 2020, Murdoch Murchison was a partner in Kiltearn Partners LLP and at the year-end he owned a minority interest in Kiltearn Limited, the corporate member of Kiltearn Partners LLP. Murdoch Murchison does not hold a controlling interest in either Kiltearn Limited or in Kiltearn Partners LLP. Included within other debtors are dividends declared but not yet received of £308,245 (2019 - £373,016) from Kiltearn Global Equity (Ireland) Fund.
During the year the Foundation received £30,600 (2019 - £33,720) of services from Azets. During the year ended 31 December 2020, Gareth Magee, one of the Foundation’s Trustees was an employee of Azets. At the balance sheet date there was a balance of £Nil (2019 - £Nil) owed to or from Azets.
During the year the Foundation received £5,100 (2019 - £Nil) of services from Brodies LLP. During the year ended 31 December 2020 one of the Foundation's Trustees, Duncan MacLean, was a partner in Brodies LLP. At the balance sheet date there was a balance of £Nil (2019 - £Nil) owed to or from Brodies LLP.
15 Analysis of net debt
| Cash | 1 Jan 2020 Cash flows 31 Dec 2020 £ £ £ 13,158,335 (56,716) 13,101,619 13,158,335 (56,716) 13,101,619 |
|---|---|
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