SWIRE CHINESE LANGUAGE FOUNDATION (a Company Llmlted by Guarantee) REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023 Company number. 10177824 Charlty number. 1171995 SWIRE CHINESE LANGUAGE FOUNDATION I N DEX Year ¢ntled J l July 2013 Page General information Report of the Trustees Auditor's report Sutemert of financial attryityes (including an inu>me and expenditure account) 10 Balance sheet Statement ol cash Ilows 12 Notes to th¢ ffinanc1￿ statwn¢nts SWIRE CHINESE LANGUAGE FOUNDATION GENERAL INFORMA TION Year endtd 31 luly 2023 Incorporatsd 12May2016 Charlty numb•r 1171995 Company number ioin814 Dlrectors and Truste Profe5%Jr Kristine Bla£k-Hawkin$ Ilndependentl Professor lane Duckett Ilndependent} john B PAe-Smith Samuel C Swire Ichairrnanl Dr Christian Toenne5en IlndependEntl Eoknrd Watson (Executive Director) Objects The advancerner*t of education for the benefit tsf rhe publk. partictslarly (but without limitation) by the provision of Zrants for the advancement of the eduotion of school. college and university students in thE ChinEse lanKuagE. Audltor DixoTh Wi150n Audit Services LLP 22 ChaTrcery Lane Lon¢tsn wc￿ ILS Re8iStered address and principal olfite Swire House 59 Bucknngham Gate London SWIE6AI email.. info swirecw.ory vr%*wtswirecW.org Bank•rs HSBC ￿nk PIC 8 Car¢ada Square London E14 SHQ Sollclto Farrer & Co 66 Lincoln's Inn Fields London WC2A 3LH SWIRE CHINESE LANGUAGE FOUNDATION REPO R T OF THE TRUSTEES Year ended 31 July 2023 The Trustees present their report and financi￿ sutements ol the charity for the year ended 31 July 2023. which include5 the directors, report as required by company law. The finantial statements have been prepared in accordance with the accountyn8 policie5 set out in note l ol the financial statements and with the Companie5 Ac¢ 2CQ6. the Acctsunting and Rtporting by CharitiES'. Statement of Recornmended Practice applicable tt+ tharities preparing their accounts ITr accordance with the Financial Reporting Stsndard applicable in the UK and RepublK of Ir¢tand IFRS102} and th¢ Charities Act 2011. The report should be read irs conjunction with th¢ yne information provSded on page l. Swire Chinese LanzuaKe Foundation "rhe Foun&tion- 1% a private Eornpany limited by KuaraThree. exempted frr¥n the requlrement to use the word'limFted' In Its Incorporated on 12 May 2016 and rey5tÈred Is * charity. The company is governed by its memorandum and articles of associatic￿. IrÈ the event of the company being wound UP* M￿berS are required to contyibute an amoun¢ not exceeding £1. Almi The Ftsundat￿n airn5 to broadEn thE rearh and spread of t￿hIng Mandarin Chinese in ihe United Kingdttm. In 5UPPOrt of ihi& the Foundation aim5 to encourage and enable the initial and ongoing training ol teacher5. and the ton¢inuing improvement in the quality of their teaching. Secondarity. as a consequence of pupi15 learnkng Chlnese and being given the opportunw to partieipate in school trips to Chin& the Fotsndarion aims to improve their social mobility. ￿rriCuladY for those from deprr¥ed background5. Strurtyre, GgYernanc¢ and Man¥pment The Foundauon i¥ overseen by a 8o¥d of Trus¢ee5. who are Director5 lor the purp05e of the Cornpanies Art 2006 and Trustee5 for the purpose of the Char￿tIeS Att 2011. The Trustees are also Members of the Foundation and. a5 such, vote in general rneeting5. The Board, which is ultimately accountable for ￿1 the activities of the FtsuThdation, is responsible for setting policy ind direcrion. and overseeinz its execution. The Executitle Director Is responsible lor execution of that poly, running the business of rhe Foundation with the support of an issistsnt ¥nana8er and a part-tyrne a5SiStant èdministrator. Truste￿ are appointed by john s￿re & Son5 Lirnited. the sole lunder of the Foundavon. lor a renewab￿ terni of fThte yea￿. with due regard being tsken of the specifie contribution they can make to the Board and to the Foundation. and of the recomrnendations ol existing Trustees. There are currently six Trustee5, three of which are independent of john Smre & Son5 New Trustees are indurted by the Executive Director and Kiven full access to Board papers and reports. They are required t¢ be t¥nver5ant wSth th¢ r¢leY3nt guldelines for trustees aTrd company director& published by the Governmeni together with the Foundation's articles of asstsciation and its latest governance guidelines. The B￿rd me¢¢5 at Ivart thr¢e timÈ$ anny￿ly wl¢h at leas¢ th￿ Trustx two tsf whl¢h must ￿ Ind*pÈfidenL being present. The Chairman of the Board liaises Closety with the Foundation's sole benefactor, john s￿re & Son5 ￿mited to ensure that the latter is kepi fvlly appraised of the Foundation's financial health afid actVit￿5. The Trustees, having regard to the Public Benefit Guidance published by the Charlty Commisslon in accordance th section 17 of the Charites Act 2011. consider that the purpose and activities ol the charity satisfy the requirements of the public benefrt test Set out section 4 01 the same Act Rlsk manazement The Foundation maiThtsins a risk revster, which is updated and rt*ewed by the Board at Itast annualty- This rewster identrfies the main r¢sks to which the Foundation is exposed, derNing primarily from its own actiwties. from the activitye5 of the recipient5 of its grants and the environment in which they operate. Amon85t other5. thex ri5k5 r¢￿te to governance. finance. adrninistration, repuratyon. cornpliance. the pol￿£?1 enwronmenL social awrude5. demand for the subjeci the supply of good teachers. the Foundation's procE$5e5 in $elÈ£tirtg retipients of its grants force majeure, cyber security and the ultimate sUStaina&lity of the Swire Chinese Language Programme f'Pro8rarnmel. SWIRE CHINESE LANGUAGE FOUNDATION REPO R T O F THE TRUSTEES {¢ontin ued) Year ended 3 I july 2023 The Foundation upd*tÈs its governante Kuidelines on a regular ba5i5- ir ha5 5tTiCt contro15 in place rezarding its finances. ensuring not only that it is funded to the ext￿¢ of its commitments but also that grants are albcatsd thith pr¢-agreed bud8et5 and their use rnonitored ternily.. r( seek5 to maintsin high 5tandard5 of administration both internalty and with regard to Its rtlatia#ships wfth bentficlariè$.' ¥r monitors exposure tts reputstIon￿ risk deriving from st5 own activitie5 and those of the organisations in receipt ol its funds., ts legal, financi￿ and r¢gulatory cornpliance 1$ 5UPPQrt¢d by ts professional adwsers and John Swire & Sons timited., it monitors the politKal environment *)d socll attitudes. paru¢ularly as they relai¢ ro education.. Ir 15 currentty supporring effort5 to make the English exam regime for Chinese more inclusfve- it encourages and supports the training ol teachers, the quallty ol whorn are essential co the 5ucce55ful fu￿lIMent of its airn5- and ic has a thorough proce55 lor the selection of the reclpients of Its grants. A5 a rule. the Foundatyon itself seeks out Suitable such recipients, which are primarily schools. They are selected lor the ctsmrnitrnEnt and enthusiasm of the head and support from the governors.. the capability of their management,. suitsble physical resourte5- the experience the schoo15 have in outreach, working with local schools., Ihe ability to reach secondary and primary pupils., the wabiliry to make Mandarin Chinese a core-curriculum subjec4 their provisitsn af in-house and exrernl trwning scheme5 for teachers.. and their willingrye55 to offer placements for trainee teachers of Manthrin. Exceptionajly it eonsiders approaches initiated by schools that have not been approached. Institutlons in reeelpt of rdnts from the Foundatlon agrtt ro a set of gtn¢ral terms ind ¢ondldons that have been drawn ￿ with the 5UPPOrt of the Foundatlon's solicitor5. Grant-maklng pollry Grants are given to sth0015 and unNersitie5 for the purpose of ¢eachtThg Mandarin Chinest. training teachers for th1$ 3nd providing support for the sarne. This is done throu8h the n has no recogni5ed zains or105ses other than those included above. The notes and accountlng pollcles on pages 13 tttr 17 fom) part of these account 10 SWIRE CHINESE LANGUAGE FOUNDATION Company numb¢r: l 11171824 ALANCE SHEET At 31 July 2023 Note 2023 2022 Flxed Investments Intanwble fixed assets Current assets 123.IWJ Debtors Cash at bank arbd in hand 67M31 6,199.291 20.002 6.917269 6267,122 6.937.271 Llabllltl•s: Creditor5.' amounrs falling due thln one year N•t curr•nt assèts 13.361,5851 2.905.537 (3.170.190) 3,767,081 Nrt assets 3.028,717 3.767.081 Funds ol the charlty Unrestritted income funds Ipage 10> Tot￿ charlty funds 3.02&717 3.767.081 3.028,717 3.761.081 Fw the year ended 31 July 2023 the Foundation VAS entitled to exemption from audit under Sett￿n 477 of the CoFnpanie5 ACL 2006 relating to 5mll companie5. The members haye not rtgulred the tompany to obrain an audit of it¥ accounts for the year in question IN accordance with seuion 476. The Trustees acknowledge their responsibilities for Com￿Y1n& wtth the re¢wlrements of the Art wlth respett to accounting records And the preparadon of atcounts. The financial 51atements have been audiod under the requirements of settion 144 of the Charitie5 Att 2011. The accounts have been prepared in accordance wr£h the pro¥i$ions appllcable to companle5 wblÈct to the small companle5 reslme in part 15 of the Companies Art 20¢)6. The accourts on page5 10 to 17 were approved by the Trustees 14th DÈcembÈr 2023 and were slgned on the b¢haW by'.- S C SWIRE Chairrnan SWIRE CHINESE LANGUAGE FOUNDATION ST A TEMENT OF CASH FLOWS Yw ended 31 July 2023 2023 2022 Net rnovement In lund5 173&364) (24.3971 Deduct interest from investments Increase in debtors Increase I Idecreasel in creditor5 Net cash used in actiyrities (207.9871 {47,6291 191,395 (31.677) (18.407) {107.157) (181.638) (8017851 Interest from investments Purchase of FntaTr&ble fixed as5Èts Net cash prowded by investing activitKS 207.987 {123.1￿) 31.677 84,807 31.677 Change in cash and tash equNalents {717.978} (149.961) Cash and cash eguivaleTrts brou8ht forward 6.917.269 7.067.230 Qsh and Cash Cquiv￿￿nts tarried forward 6.199.291 6.917.269 12 SWIRE CHINESE LANGUAGE FOUNDATION NOTES TO THE FINANCIAL ST A TEMENTS Year •nded 31 July 2023 Accountln8 pollcles The princpal accounting polic￿% adopted, and area5 of judgrnt and key sources of estlmaoon uncertaknw kn the preparation of the financ$￿ statemet)ts, are as foLkMk' (a) Basis of preparatbon and usessmert of 8oln8 eonctrn Th¢ financial statements have been prepared in accordance wth Accounting and Rep￿1￿& by Charl￿$.. Statement of Rec¢)mmèndtd Pra¢ti¢e applKable to charit*s preparing th*r accounts in aceordants with the Financval Reportin8 Standard applicable in the UK and Kepubllc ol Ireland {FRS 1021 {effecuve I january 20191- (Charitses SORP IFRS 10211. the Fin￿(1a1 Reporring Standard applicab￿ in the UK *)d R¢pthll¢ of 5rdaThd IFRS 1021. the Companies Art 2LJ)6 and the Charitles Act 2011. Swire Chinese Languy Foundation meets the definition of a publir benefrt entity under FRS 102. Assets and liabillties are knitlally recognlsed at historic￿ cpst or transaction value unkss ¢xherwlse stated In thE fEknrt counting p)licy note. Th¢ Trustees considEr that there are no MI￿rIal ur*certatnties about the Found%￿On'S abifiy Lo con￿￿1* as a going concern for the next 12 months and the foreseeable future based on the commitment from john Swre & Sor LiMi￿d to continue to fund the Foundation for the next four years. (b) Fund accountlng polky Unrestritted funds are genwl fijnds that are a￿l￿ble for use at the Tru5ree5' di5cretvJn in furtherance rA the obiecthes ol the ¢hariry. (c) Incomln8 r•sources All Income Is reeognkned in thE 5¢Htement actwitV*5 vthen the Swre Chinese Language Foundation ha& entidement to the Income.. r< is probable that the tncome ￿11 be receNed' and the arn￿J￿r of the incom4 can ￿ measured rellably. Donations are recognlsed vknen the Foundation ha5 been notified ￿ writing of the ￿0￿nt ol income that ¥AII be {d) Expendlture reco8nition Liabilit￿$ art reco8ni%d ￿ 501)n as there 15 a *al or constructive obligation committSng the Foundadon to the expenditur< it is pr¢baWe that setdemtnt wll be required and the amount ol the obligation can be measured rellabty. Grants payable are payments made to third parde5 ITr the furrhernnce of the charitable objecLS ol the Foundauon. Thi5 is accrned onte the re¢iplent has bttn N￿lfIed of the yant award and pro￿ded the termination clause has not been exercised. (•) IrrKoverable VAT Irre¢wr*le VAT15 charyed aKaiTrst the expendinre headingfor wh￿h it was In¢urr¢d. (fj Cost of ra151Tr8 lunds The costs of raisingfund5 con515t of investment management lees. Intanglble fixed assets Intangible fixed assets Include the developrnent CQ5ts 01 licences for $oltrnre and are inltlalty recognlsed at hi5toriol c05t. Amortisation is ch¥ged on a stratght Ilne b3SiS to the sta￿ment of Financial Activitie5 over the expected period ol the uselul lrfe vthich is presumed to be no more than ten year5. Amorrisation 15 char8ed once the asset 15 operarx•nal. SWIRE CHINESE LANGUAGE FOUNDATION NOTES TO THE FINANCIAL ST ATEMENTS Yw tndèd 31 July 2023 Accountln8 pollcles (continued) (h) Credltors Creditors are reco￿lSed where the charity has a pre5en¢ obligatyon resultin8 from a past event thai ￿11 probably result in ihe transfer ol fund5 to a third party and rhe arnount due ca settle the oblytion can be measured or estimated ￿lIablY. Credsttirs are normally recognised at their settlement amount after allowng for arsy trade discounts the. (l) Flnanclal Instrum¢nts The Foundatyon onty has financial assets and financi￿ liabilr(ies of a ktnd that qualify a5 basi¢ fit)ar)cial inwum¢n Ba5ir financial instrurnents are iniually recognised at tran3awon value and subsequen￿Y measured at their Setdement value. Le8al status and staff numbers The Foundation is a company limited by ￿arantee. incorporated in Enzland and Wale5, and has no share wital. The Foun&tion's rey$tÈred address is Swire House, 59 Butkingham Gats. London. SW I E 6AI- The average nurnber of persons ernployed by the c¢)mpany duringthe year wa5 012022 - 01. Income from donatlonj 2023 2022 Donatlons •nd legacles Donadons from john Swlre & Sons Llmlted Donations and lezacies in both years relace to unrestricted income. 1202,325 2J44J06 Analysis of charitable expenditUTe The charity doES noc undertake any activity diredy but meets charitable purp*JSeS by making donations and grants. 2023 2Q22 The Belvedere kademy. as IEad 5thool of the Swire Chinese Language Centr< Liverpool George Watson's College. as lead school of the Swire Chinese Language Cen¢re. Edinburgh The Gorse Academles Trus¢ as lead sch<)ol of the Swire Chinese Lang1￿ Centr4 Leeds Gosforth Academy, as lead school of the Swire Chinese Language Centre. Gosforth Harris Federa￿0￿. as lead school of the Swlre Chinese Lanyage Centre, Lon¢k*n Jordanhill School. as lead school of the Swire Chinese Language Centre. Glasgow 29.572 120587 323.996 323520 501.107 332.115 241,754 270,625 490.8n 398.094 157,941 123.306 Carrled forward 1,745242 1 J68.247 {condnuedl 14 SWIRE CHINESE LANGUAGE FOUNDATION NOTES TO THE FINANCIAL ST A TEMENTS Year ended 31 july 2023 Analysls of charbtable expendlture (contlnued) 2023 2022 Brought for￿rd 1,745,242 1568247 King EoknTard Vl Aston School. as lead school of the Swire Chtne%e Lanwage Centre. Birmingharn The Manchester Grarnrnar School. as lead school of the Swlre Chlnese Language Centr< Manth¢s￿r New(asde High khool for Glrls. as lead school of the Swire Chinese Language Cenir< Newca5d* Norwch khool. as lead School of the Swire Chinese L3nKuaxe Centre, Nomch The Queen's College, Oxford 220.235 267.360 274.879 240.065 234,766 198.777 171.733 75.299 2.000 Oxford UnNersity Department of Ethcation (Lecturer) St Peter'5 College Radley. as lead school of the s￿re Chint5e language Centre. Oxlord Tapton School, as lead sehod of the Swlre Chinese LanguaKe Centre. SheffRld 28.2KI 347.049 183J22 95.479 50.857 Tatsl donations 3.119.665 2585.927 GotrErnonce costs 011(K0￿￿ to thorttobje o£tivities." Acc*)untancy fees- a¢¢ounts Accountancy fees- audit Other prolessionl fee5 WÈbskÈ rtssty Travel costs Bank charyes Sundry exp¢n5e¥ Enrerolnihg Total governance costs 565 6.347 565 5.663 793 180 2.701 20 3,162 4.497 4,063 332 1&823 10,254 Total regourc•g upend•d 3,138,488 2.596.181 15 SWIRE CHINESE LANGUAGE FOUNDATION NOTES TO THE FINANCIAL ST A TEMENTS Year ended 31 July 21723 Intanglble fixed a55ets Ucences Cost At l AugLSrt 2022 Additions 123,180 123.180 At 31 july 2023 123,180 123.180 Am0rt15atlon At l August 2021 Char8e for the year At 31 July 2023 Net book value Charge for the year At 31 July 2023 123.180 123.180 Debto 2023 20Z2 rued income 67M31 20.OQ2 Credltori 2023 Amounts falling du• within one y•ar Grant5 payable Other creditors 3.265.557 3.160.918 96.028 9,272 3,361585 3.170.190 Relat•d party tr4nsartions During the year John Swire & Sons Limited, a cc#npany in which three of the Trustees have a participating interesL d expenses on the Foundation'5 behlf w¢alling £3.21012022 - 12.677). During the year the Foundation repaid expenses of £1677 (2022 - £792). At the year*rtd £7.523 was owed to P022 - £2,677) john Swlrt & Stsns Limited. The Foundation receNed donations during the year d £2,202,325 12022 - £1544,306) from ￿hn Swire & Sons Llmited without conditions attached. Durlng the year the Found*tion Incurred t¢)sts relating to the d¢¥ÈlopmÈnt of software under a Ilcence agreement with Swire Shipping Pte knmited. a c¢)mpany In which tt¥o of the Trustees have a parEiCiPAting Interest for a cost of £115,080. At the year-end £80,556 (2022- £nil) was owed to Swire Shipwng Pte. Limited. DurlTrg the year. the Trustees receNed no rernunerarion k*r their 5eryices as Trustees. Travel costs of É3582 12022 . £1,701) wtre met for three of the Trustee512022- one). no accornmadauon ctssts were p*d on behaw of any trustee 12022 - £ntl) and subsistence costs of £nil (2022 . £332) were met for none of the Trnstee$12022 - 51X 16 SWIRE CHINESE LANGUAGE FOUNDATION NOTES TO THE FINANCIAL ST A TEMENTS Year ended 31 July 2023 ContlnDnt Ilablllty At the Balance Sheet date, the Foundation had recwised nlTre months of grants pardbl• $ub*rt to ¥ termlnation lause. The addtuonl yants payabk. contingent on the temination clause not belng exerclsed in the next three academic years. total ￿4￿90.597{2012- £5.741.953)- 10. Finantbal *ssets and financial Ilabllltl The following are fifiancial assets and liabilitie5 that qualify ￿ basic financial instrurnents and are initially reco8nised at transaction value and subsequendy measured at their arnorti%d CQ5L Flnanclal a55ets 2023 2022 6,199,291 6.917.269 6.199.291 6.917,269 Flnanclal Ilabllltlo5 Gr4nts payable Other credtors 326S.557 96.028 3,160.918 9.272 3.361.585 3.170.190 17