The Quilter Foundation
(A Charitable Incorporated Organisation)
Report and Financial Statements for the year ended 31 December 2020
The Charity Commission of England and Wales Registered Number: 1175555
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Contents
| Contents | |
|---|---|
| Pages | |
| Reference and administrative information | 1 |
| Trustees' report | 2 - 7 |
| Independent auditors' report | 8 - 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 - 22 |
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Reference and administrative information
| Trustees | Trustees who served during the period and up to the date of this report | Trustees who served during the period and up to the date of this report |
|---|---|---|
| were as follows: | ||
| Paul William Feeney | (Chair) | |
| Matthew Charles Burton | (Treasurer) | |
| Philippa Lucy Foster Back, CBE | ||
| Richard Breen | ||
| Timothy Edmund Michael Childe | ||
| Jane Sarah Goodland | (Departed 16 July 2021) | |
| Andrew Bernard Thompson | (Departed 30 June 2020) | |
| Gemma Harle | (Appointed 5 August 2021) | |
| Registered office | Quilter Plc | |
| Senator House | ||
| 85 Queen Victoria Street | ||
| London | ||
| EC4V 4AB | ||
| Member | Quilter Holdings Limited | |
| Senator House | ||
| 85 Queen Victoria Street | ||
| London | ||
| EC4V 4AB | ||
| Registered in England and Wales, | Company Number: 01606702 | |
| Banker | National Westminster Bank Plc | |
| 135 Bishopsgate | ||
| London | ||
| EC2M 3UR | ||
| Solicitor | Womble Bond Dickinson | |
| 4 More London Riverside | ||
| London | ||
| SE1 2AU | ||
| Auditor | PricewaterhouseCoopers LLP | |
| Chartered Accountants | ||
| Savannah House | ||
| 3 Ocean Way | ||
| Southampton | ||
| SO14 3TJ | ||
| Investment manager and custodian | LGT Vestra | |
| 14 Cornhill | ||
| London | ||
| EC3V 3NR |
Page 1 #CONFIDENTIAL
Charity Registered Number: 1175555
The Quilter Foundation
Trustees' report for the year ended 31 December 2020
The Trustees present their report and audited financial statements for The Quilter Foundation (‘the Foundation’) for the year ended 31 December 2020.
The Trustees have adopted the provisions of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland ('FRS 102') (effective 1 January 2019) - ('Charities SORP (FRS 102)') and the Charities Act 2011 in preparing the report and financial statements of the Foundation.
These financial statements have been prepared on a going concern basis and in accordance with the historical cost convention as modified by the revaluation of investments to fair value.
Objectives and Activities
The Foundation's mission is to empower young people to fulfil their potential, thrive and prosper.
The Foundation seeks to achieve it's mission primarily through grant making to carefully selected charity partners and is guided by three themes:
-
Education – enhancing financial education and capability;
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Employment – building skills, experience and confidence to help young people work and earn; and
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Health & Wellbeing – enhancing health and wellbeing to help young people flourish and thrive.
The Foundation aims to fund high impact programmes which significantly improve outcomes for young people, and applies a responsible and rigorous process to its choice of charity partners to ensure that long-term sustainable partnerships are created.
The Foundation aims to grow its impact by working with partners who reflect its strategy of providing support to empower young people to fulfil their potential, thrive and prosper.
The Foundation does not provide funding to: 1) organisations directly affiliated to a political party, associated political bodies or with a strong wider political association; 2) single-faith religious organisations; and 3) profit-making organisations.
The Trustees confirm that they have referred to the guidance contained in the Charity Commissions general guidance on public benefit when reviewing the Foundation's aims and objectives and in planning future activities and seeking grant making policy for the year.
Achievements and Performance
Charitable Partnerships
Through grant-making and the generous support of colleagues, advisers and customers, The Quilter Foundation has donated £2.2 million to charity partners since launching in 2018, enabling them to provide financial literacy, employment and wellbeing support to 23,000 young people in our local communities.
We continued our long-term partnership with leading financial education charity, MyBnk, to fund the provision of expert led money management lessons to young people aged 11–25 in local communities. COVID-19 restrictions seriously inhibited face-to-face delivery in 2020 and despite this, the programmes still reached 7,811 young people in the year.
Page 2
CONFIDENTIAL
Charity Registered Number: 1175555
The Quilter Foundation
Trustees' report for the year ended 31 December 2020 (continued)
Achievements and Performance (continued)
Charitable Partnerships (continued)
During 2020 Quilter continued to co-chair KickStart Money which is helping to transform the long-term savings habits of the next generation. Twenty of the UK’s leading saving and investment firms are working together to champion financial education for children aged seven and upwards. Through the programme’s delivery partner, MyBnk, expert-led financial education sessions reached 19,000 pupils since its launch in 2017. KickStart Money also campaigns for effective financial education for every young person from primary school onwards. During 2020, 27 UK Members of Parliament lent their support to the campaign, bringing the total number of parliamentary supporters of the campaign to 57.
Government data shows the persistency of UK youth unemployment over recent years, which has been exacerbated by the COVID-19 pandemic. In 2020, we delivered the first year of our three-year partnerships with skills and employability partners School of Safe New Futures, School of Hard Knocks and Street League. The programmes have so far supported 143 young people aged between 16 and 25.
One in five secondary school children may be caring for a loved one with a serious illness, disability or mental health issues. Very often, this is at the expense of their own mental health and future prospects. The Quilter Foundation and Quilter colleagues have continued to work with our charity partners – Carers Trust, The Mix and Crossroads Care – supporting 2,000 young carers in local communities in 2020. Since launching the partnerships in 2018, we have directly supported 5,600 young carers across the UK and Isle of Man.
The Quilter Foundation donated to trusted partners – National Emergencies Trust and Disasters Emergency Committee – to provide urgent COVID-19 relief and support to vulnerable communities across the UK and internationally.
Financial Review
During the period the Foundation received funds of £546,703 (2019: £743,106). This included corporate donations of £546,550 (2019: £741,972) and bank interest of £153 (2019: £1,134).
Expenditure during the period amounted to £634,466 (2019 restated: £1,039,845), see page 14, which included accruals for grants payable during the years 2021 and 2022 in relation to agreements which the Foundation has in place with its charitable partners.
The expenditure mainly consisted of grants for the following organisations: Carers Trust £183,058 (2019: £225,126); Crossroads Care £20,000 (2019: £37,293); KickStart Money £40,000 (2019: £20,000); and Disasters Emergency Committee £244,492 (2019: £11,927).
During the period payments were made to the charitable partners as follows: Disasters Emergency Committee £244,492 (2019: £11,927); Carers Trust £417,847 (2019: £349,088); My Bnk £156,700 (2019: £156,700); Safe New Futures £75,220 (2019: £0); School of Hard Knocks £74,172 (2019: £0); Street League £73,155 (2019: £0); The Mix £50,700 (2019: £50,550); Crossroads Care £27,354 (2019: £17,895); and KickStart Money £20,000 (2019: £20,000).
Total funds for the Foundation at the end of the period are £8,945,398 (2019: £8,399,191).
Investments
The Foundation appoints LGT Vestra as the Foundation's investment manager.
As per the Trustees investment mandate, LGT Vestra's objective is capital appreciation over the long-term and stable income for grant making. As such, the Foundation's investments are primarily balanced across fixed income and equities. The Trustees have taken account of relevant environmental, social and governance considerations and as such have instructed LGT Vestra not to directly invest in companies where principle business activities are: tobacco, armaments, pornography or animal testing.
Page 3 #CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Trustees' report for the year ended 31 December 2020 (continued)
Financial Review (continued)
The value of investments managed by LGT Vestra as at 31 December 2020 was £9,443,503 (31 December 2019: £9,408,948). The Trustees are satisfied that overall investment performance for the reporting period is in line with the Foundation's investment policy and stated long-term investment objectives.
Risks
The level and frequency of income from investments and the Foundation's primary donor, Quilter plc, is uncertain. The Trustees identify this as the Foundation's principal risk, which could prevent it from delivering public benefit and achieving its stated objectives over the long-term. The Trustees have set out to mitigate this risk by establishing an expendable endowment managed by LGT Vestra and invested across a diversified portfolio of sufficiently liquid assets. The Trustees retain discretion to expend some or all of the endowment fund should they choose in order to meet the Foundation's charitable objectives, now or in the future. Furthermore, the Trustees have actively sought to increase and further diversify its income through fundraising activity.
Like many charitable foundations, the emergence of the COVID-19 pandemic has had significant implications on the operations of the Foundation and its partners. Alongside the operational impact, the pandemic has also evidently had a major impact on the communities the Foundation seeks to serve.
The Foundation team has maintained close dialogue with its funding partners to ensure it understands the risks presented to delivery arising from the crisis. Where necessary, the team continue to work with their partners to explore alternative mechanisms of delivery and where this is not feasible, they are in active dialogue to deliver an appropriate flexible diversion of funds. Trustees hold the position that all efforts should be made to be an active and supportive partner throughout the ongoing impact that the pandemic presents.
Trustees continue to monitor and react as the restrictions and impact of the pandemic emerge.
Reserves policy
The Trustees wish to establish a sustainable financial platform to enable the Foundation to continue to deliver public benefit and achieve its stated objectives over the long-term.
As the level and frequency of financial support from the Foundation’s primary donor, Quilter plc, is uncertain, the Trustees have sought to establish an expendable endowment fund to provide sufficient future income should there be an unforeseen change in donations.
The expendable endowment consists of donations from Quilter plc and other funders, alongside gains and losses arising from the investment assets. The Trustees retain discretion to expend some or all of the endowment should they choose in order to achieve agreed charitable aims now or in the future.
Page 4
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Trustees' report for the year ended 31 December 2020 (continued)
Reserves policy (continued)
The Trustees have agreed to seek to spend down annual investment returns and any donations from Quilter plc, its employees or other sources, recognising however that the Foundation’s commitments are likely to extend over multiple years.
The expendable endowment investments are held in sufficiently liquid assets to enable the Trustees to meet commitments made and to subsequently remove material uncertainty that the Foundation can continue to operate as a going concern. This ensures that despite the Foundation being in a net current liability position, liquid assets can be withdrawn from the investments so that the Foundation is not restricted it meeting its obligations.
The Reserves Policy is monitored regularly by the Trustees.
Structure, Governance and Management
Constitution
The Quilter Foundation (‘the Foundation’) is a registered charity (Charity number 1175555) with the Charity Commission of England and Wales, incorporated 3 November 2017. The charity is managed by a board of trustees.
The Foundation is a Charitable Incorporated Organisation, governed by its association model constitution which set out its objects, powers and matters relating to its governance. The sole Member of the Foundation is Quilter Holdings Limited. If the Foundation is wound up, the Member shall have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities, and, as it is a charity, the Member has no entitlement to a share of the Foundation's assets.
Trustees
The names of the Trustees of the Foundation are listed in the Reference and Administrative Information on page 1. The Trustees all held office throughout the period unless otherwise shown. The Foundation has indemnified all Trustees in respect of any liabilities properly incurred in running the Foundation.
The Foundation's sole Member, Quilter Holdings Limited, may appoint Trustees. When recruiting new Trustees, the Trustees or Member (as appropriate) give regard to the knowledge, skills and experience which are required for the robust and effective management of the Foundation. Training is arranged for all Trustees and all Trustees must sign a Trustee declaration which states that they understand their duties as a Trustee and have read the relevant conflict of interest policies. The Trustees are responsible for the oversight and governance which includes approval of all grants made by the Foundation.
Organisational structure
The Trustees are responsible for the management of the Foundation’s business, for which purpose they may exercise all powers of the Foundation.
At the quarterly Trustees meetings, the Trustees agree the strategy and areas of activity for the Foundation, including consideration of grant making, investment, reserves and risk management policies and performance.
Page 5
CONFIDENTIAL
Charity Registered Number: 1175555
The Quilter Foundation
Trustees' report for the year ended 31 December 2020 (continued)
Structure, Governance and Management (continued)
No staff or management personnel were employed by the Foundation during the period. The Trustees received no remuneration in respect of their services to the Foundation during the period.
No Trustee received any reimbursement of expenses from the Foundation during the financial period.
Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements
The trustees 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).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources 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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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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assess the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 6
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Trustees' report for the year ended 31 December 2020 (continued)
Structure, Governance and Management (continued)
Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements (continued)
The Trustees are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
Public benefit
The Trustees are mindful of their duty under the Charities Act 2011 to ensure that the Foundation's activities exist for the public benefit. The Trustees are satisfied that the performance and achievements of the Foundation during the year have benefitted the public.
Plans for future period
Income generation
In 2021 and beyond, the Trustees seek to increase and diversify the Foundation’s income through engagement with Quilter plc and its employees.
Grant making and partnership building
The Foundation's strategy is to achieve its mission through grant making partnerships with charitable organisations that align with its stated objectives and grant making themes. The Foundation has made multi-year commitments to charity partners, with grants payable during 2021 through to 2022 of £503,461.
Evaluation
The Foundation appoints Bean Research to manage and maintain an evaluation framework and theory of change for the Foundation, allowing the Trustees to effectively monitor and evaluate the impact of the Foundation’s funding in achieving its stated aims and objectives.
Disclosure of Information to the Auditors
So far as each of the Trustees is aware at the time the report is approved:
-
there is no relevant audit information of which the Foundation’s auditors are unaware; and
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the Trustees have taken all steps that they have ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Signed on behalf of the Board of Trustees
Paul William Feeney Chair of the Board of Trustees
Approved by the Board on 29 October 2021
Page 7
CONFIDENTIAL
Independent auditors’ report to the trustees of The Quilter Foundation
Report on the audit of the financial statements
Opinion
In our opinion, The Quilter Foundation’s financial statements (the “financial statements”):
-
give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources, and cash flows, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and
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have been prepared in accordance with the requirements of the Charities Act 2011 and Regulation 8 of The Charities (Accounts and Reports) Regulations 2008.
We have audited the financial statements, included within the Report and Financial Statements (the “Annual Report”), which comprise: the balance sheet as at 31 December 2020; the statement of financial activities for the year then ended, statement of cash flows for the year then ended ; and the notes to the financial statements, which include a description of the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ 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 remained independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue.
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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the charity’s ability to continue as a going concern.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of 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 based on these responsibilities.
Based on our work undertaken in the course of the audit, the Charities Act 2011 requires us also to report certain opinions and matters as described below.
Trustees’ Report
Under the Charities Act 2011 we are required to report to you if, in our opinion the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements. We have no exceptions to report arising from this responsibility.
Responsibilities for the financial statements and the audit
Responsibilities of the Trustees for the financial statements
As explained more fully in the Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements, the trustees are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the financial statements
We are eligible to act and have been appointed as auditors 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 auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the charity/industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK Charities regulatory principles, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Charities Act 2011 and relevant regulations made or having an effect thereunder, including The Charities (Accounts and Reports) Regulations 2008. We evaluated the incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) by the trustees and those responsible for, or involved in, the preparation of the financial statements, and determined that the principal risks were related to posting inappropriate journal entries to misappropriate cash and bias in areas of estimation such as the fair value of the investment portfolio. Audit procedures performed included:
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Holding discussions with management (Trustees, Responsible business manager and Finance), including consideration of their process for identifying and responding to the risk of fraud, and any known or suspected instances of fraud or non compliance with laws and regulations;
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Reviewing relevant meeting minutes of the Trustee board;
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Identifying and testing all material journal entries that credit cash;
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Obtaining an independent confirmation of the investment portfolio held by the charity;
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Performing independent testing of the valuation of the investment portfolio;
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Designing audit procedures to incorporate unpredictability around the nature, timing, or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the charity’s trustees as a body in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act (Part 4 of The Charities (Accounts
and Reports) Regulations 2008) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Charities Act 2011 exception reporting
Under the Charities Act 2011 we are required to report to you if, in our opinion:
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we have not received all the information and explanations we require for our audit; or
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sufficient accounting records have not been kept by the charity; or
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the financial statements are not in agreement with the accounting records.
We have no exceptions to report arising from this responsibility.
PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London
29 October 2021
The Quilter Foundation
Charity Registered Number: 1175555
Statement of financial activities
for the year ended 31 December 2020
| Statement of financial activities for the year ended 31 December 2020 |
|
|---|---|
| Notes Income from: Donations 2 Other trading activities 3 Investments 4 Total Income Expenditure on: Raising funds 5 Investment management fees 6 Charitable activities 7 Total expenditure Net gains on investments 11 Net income Surplus for the year Fund balances brought forward Fund balances carried forward at 31 December 15 |
Restated1 Restated1 Restricted Unrestricted 2020 Restricted Unrestricted 2019 funds funds Total funds funds Total £ £ £ £ £ £ 170,708 344,558 515,266 131,708 665,343 797,051 125,842 - 125,842 110,264 - 110,264 - 160,610 160,610 - 195,822 195,822 |
| 296,550 505,168 801,718 241,972 861,165 1,103,137 |
|
| - 7,501 7,501 - 400 400 44,857 44,857 - 37,318 37,318 296,550 285,558 582,108 241,972 760,155 1,002,127 |
|
| 296,550 337,916 634,466 241,972 797,873 1,039,845 |
|
| - 378,955 378,955 - 1,073,134 1,073,134 |
|
| - 546,207 546,207 - 1,136,426 1,136,426 |
|
| - 546,207 546,207 - 1,136,426 1,136,426 |
|
| - 8,399,191 8,399,191 - 7,262,765 7,262,765 |
|
| - 8,945,398 8,945,398 - 8,399,191 8,399,191 |
1 The comparative figures have been restated to show investment income and investment management fees on a gross basis. Investment income
was previously presented net of the LGT Vesta investment management fees, which were not separately disclosed. Details can be found on page 14.
All of the charity's activities derive from continuing activities during the above period.
The notes on pages 14 to 22 form an integral part of these financial statements.
Page 11
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Balance sheet
as at 31 December 2020
| Notes Fixed assets Investments 11 Current assets Debtors due within one year 10 Cash and cash equivalents Total current assets Creditors: amounts falling due within one year 13 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after one year 13 Total net assets Funds of the charity: Restricted income funds Unrestricted funds 15 Total charity funds |
2020 2019 £ £ 9,443,503 9,408,948 20,220 31,066 29,046 158,638 |
|---|---|
| 49,266 189,704 |
|
| 471,925 716,000 |
|
| 422,659 526,296 |
|
| 9,020,843 8,882,652 |
|
| 75,446 483,461 |
|
| 8,945,397 8,399,191 |
|
| - - 8,945,398 8,399,191 |
|
| 8,945,398 8,399,191 |
The notes on pages 14 to 22 form an integral part of these financial statements.
The financial statements on pages 11 to 22 were approved and authorised for issue by the Board of Trustees on 29 October 2021 and were signed on its behalf by:
Matthew Charles Burton Treasurer
Page 12
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Statement of cash flows
for the year ended 31 December 2020
| Statement of cash flows for the year ended 31 December 2020 |
|
|---|---|
| Notes Net cash flows (used in)/generated from operating activities 14 Investing activities: Bank interest 4 Proceeds from disposal of investments 11 Net cash flows generated from investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2020 2019 £ £ (589,745) 111,174 |
| 153 1,134 460,000 23,000 |
|
| 460,153 24,134 (129,592) 135,308 158,638 23,330 |
|
| 29,046 158,638 |
The notes on pages 14 to 22 form an integral part of these financial statements.
Page 13
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Notes to the Financial Statements
for the year ended 31 December 2020
Charity Information
The Quilter Foundation Trust is a Charitable Incorporated Organisation (CIO) registered with the Charities Commission of England and Wales. Its charity registration number is 1175555.
1 Accounting policies
The principal accounting policies adopted in the preparation of the financial statements and which have been consistently applied (except where indicated) are set out as follows:
(a) Basis of accounting
The financial statements have been prepared on a going concern basis under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these financial statements. They are presented in pounds sterling.
The financial statements have been prepared on the accrual basis 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), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011.
The Quilter Foundation is a public benefit entity as defined by FRS102.
(b) Prior year restatement
The Foundation receives investment income from the expendable endowment managed by LGT Vestra. The Investment income as reported in 2019 was presented net of the LGT Vestra investment management fees. In 2020 the investment Income and investment management fees are reported at their gross values in the Statement of financial activites as required by FRS102, and the prior year comparatives have been restated accordingly.
In 2019, investment income was reported at £158,504. This has been restated to £195,822, and investment mangement fees of £37,318 has been reported on the Statement of financial activities. There is no impact on either the Balance sheet as at 31 December 2019 or the Statement of cash flows for the year then ended, and therefore no such balances have been restated.
(c) Judgements in applying accounting policies and key sources of estimation uncertainty
The Trustees evaluate judgements and estimates as required, based on historical experience with other factors including expectations of future events. The details, if material, are reflected in the accounting policies.
There are no material judgements requiring disclosure. Whilst some financial assets are measured at fair value, their valuation is based upon readily available pricing information and therefore the Trustees do not consider there to be a significant level of estimation involved in determining their fair value. There are no other material estimates in the financial statements.
(d) Going concern
The Trustees consider that there are no material uncertainties, including consideration of reasonably possible downside scenarios that may arise as a result of the COVID-19 pandemic, about The Quilter Foundation's ability to continue to operate for the foreseeable future and are satisfied that it is appropriate to adopt the going concern basis in preparing the financial statements.
The Foundation's investments are held in sufficiently liquid assets to enable the Trustees to meet commitments made and to subsequently remove material uncertainty that the Foundation can continue to operate as a going concern. This ensures that despite the Foundation being in a net current liability position, liquid assets can be withdrawn from the investments so that the Foundation is not restricted in meeting its obligations.
Page 14
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Notes to the Financial Statements
for the year ended 31 December 2020
1 Accounting policies (continued)
(e) Income
Donations are included in the Statement of financial activities when the Foundation is entitled to the income, receipt is probable and the amount receivable can be measured reliably. Investment income is stated gross in the period it is due.
(f) Donated services and support
Quilter plc has provided administrative support at no cost. These donated services are included in the financial statements in the financial period in which they are receivable, where they are quantifiable and based on an average rate for the services at cost to Quilter plc; with a corresponding amount then recognised in expenditure in the period of receipt.
(g) Expenditure
All expenditure including membership fees and bank charges is included on an accruals basis as a liability is incurred. Expenditure has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of the resources.
Grants are recognised in the financial statements as liabilities after they have been approved by the trustees and the recipients have been notified.
(h) Taxation
The Foundation is a registered charity, and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the provisions of Section 505, Income and Corporation Taxes Act 1988.
The Foundation is grant-giving which is not a business activity, therefore Value Added Tax incurred on related expenditure is irrecoverable.
(i) Investments
Investments are included in the financial statements at fair value. Realised and unrealised gains and losses on investments are included net in the statement of financial activities in the financial period in which they arise.
Investments have been defined as fair value through profit or loss.
Fair values are determined according to the following hierarchy based on the valuation technique used to determine fair value.
-
-Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
-
-Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
-
directly (i.e. as prices) or indirectly (i.e. derived from prices)
-
-Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
(j) Debtors
Debtors are recognised at the recoverable amount due when it is probable that the future economic benefits will flow to the Foundation and the asset has a value that can be measured reliably. These include Quilter plc matching of
Page 15
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Notes to the Financial Statements
for the year ended 31 December 2020
1 Accounting policies (continued)
(k) Cash and cash equivalents
Cash and cash equivalents in the financial statements comprise cash at bank and in hand.
(l) Fund accounting
The unrestricted fund comprises a general fund which is used to meet the charitable objectives of the Foundation at the discretion of the Trustees. The restricted fund consists of monies raised for, and their use restricted to, a specific
The portfolio is managed by an appointed wealth management firm, according to the Trustees' strategic preferences.
(m) Creditors
Membership fees and grants payable 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.
2 Donations
| 2 Donations |
|
|---|---|
| Corporate donations Donated services and support Total |
Restricted funds Unrestricted funds 2020 Total 2019 Total |
| £ £ £ £ 170,708 250,000 420,708 631,708 - 94,558 94,558 165,343 |
|
| 170,708 344,558 515,266 797,051 |
Administrative support is provided by Quilter plc. The value of these services for the year ended 31 December 2020 is £94,558 (2019: £165,343). The value of these services is recognised within income as a donation, and an equivalent charge is included within expenditure as support costs.
3 Other trading activities
| Income from Quilter plc employee fundraising events 4 Income from investments Bank interest Net income from LGT Vestra portfolio |
Restricted funds Unrestricted funds 2020 Total 2019 Total |
|---|---|
| £ £ £ £ 125,842 - 125,842 110,264 |
|
| Restricted funds Unrestricted funds 2020 Total Restated1 2019 Total |
|
| £ £ £ £ - 153 153 1,134 - 160,457 160,457 194,688 |
|
| - 160,610 160,610 195,822 |
1 The comparative figures have been restated to show investment income and investment management fees on a gross basis. Investment income was previously presented net of the LGT Vesta investment management fees, which were not separately disclosed. Details can be found on page 14.
Net income from LGT Vestra portfolio is comprised of £165,280 (2019 restated: £199,288) of investment income from equities and bonds offset against £4,823 (2019: £4,600) of variable bank charges, custody fees and transactional charges.
Page 16
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Notes to the Financial Statements
for the year ended 31 December 2020
5 Expenditure on raising funds
| 5 Expenditure on raising funds |
|
|---|---|
| JustGiving membership scheme fees Bank charges Other 6 Expenditure on investment management fees LGT Vestra management fees |
Restricted funds Unrestricted funds 2020 Total 2019 Total |
| £ £ £ £ - 562 562 324 - 29 29 76 - 6,910 6,910 - |
|
| - 7,501 7,501 400 |
|
| Restricted funds Unrestricted funds 2020 Total Restated1 2019 Total |
|
| £ £ £ £ - 44,857 44,857 37,318 |
|
| - 44,857 44,857 37,318 |
1 The comparative figures have been restated to show investment income and investment management fees on a gross basis. Investment income was previously presented net of the LGT Vesta investment management fees, which were not separately disclosed. Details can be found on page 14.
7 Expenditure on charitable activities
| 7 Expenditure on charitable activities |
|
|---|---|
| Supporting Young Carers: Carers Trust - (Charity No: 1145181) Financial Education: MyBnk - (Charity No: 1123791) Employment: Safe New Futures - (Charity No: 1088357) School of Hard Knocks - (Charity No: 1147009) Street League - (Charity No: 1101313) Employee fund-raising matched funding commitments: Medical/Health Research and Support Charities Dallaglio Rugby Works ManxSPCA (Animal Welfare) Various Small Charities in Aggregate Support costs Total YouthNet UK (trading as ‘The Mix') - (Charity No: 1048995) Crossroads Care - (Isle Of Man Charity No: 383) Financial Futures Fund (KickStart Money) - The Investing and Savings Alliance (Company No: 03548792) Disasters Emergency Committee (DEC) - (Charity No: 1062638) |
Restricted funds Unrestricted funds 2020 Total 2019 Total |
| £ £ £ £ 183,058 - 183,058 225,126 - - - 20,000 - 20,000 37,293 |
|
| 203,058 - 203,058 262,419 - - - 78,320 - 40,000 40,000 20,000 |
|
| - 40,000 40,000 98,320 - - - 153,464 - - - 148,344 - - - 146,310 |
|
| - - - 448,118 93,492 151,000 244,492 11,927 - - - - - - - - - - - - - - - 16,000 - 94,558 94,558 165,343 |
|
| 296,550 285,558 582,108 1,002,127 |
The support costs relate to the administrative services provided by Quilter plc at no charge, an equivalent sum is included in income.
Page 17 #CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Notes to the Financial Statements
for the year ended 31 December 2020
8 Analysis of support costs
| 8 Analysis of support costs |
|
|---|---|
| Audit fees Legal fees Donated administrative services |
Restricted funds Unrestricted funds 2020 Total 2019 Total |
| £ £ £ £ - 5,000 5,000 5,000 - 8,701 8,701 1,544 - 80,857 80,857 158,799 |
|
| - 94,558 94,558 165,343 |
The auditors' remuneration of £5,000 (2019: £5,000) was borne by Quilter plc.
9 Staff costs and trustees' remuneration
No staff were employed by the Foundation during the period.
The Trustees and key management personnel received no remuneration in respect of their services to the Foundation during the period. No Trustees or key management personnel received any other benefit or reimbursement of expenses during the period.
Some trustees are employed in other roles by a related entity, and receive remuneration and other benefits from the related entity, that are unrelated to their services to the Foundation during the period.
10 Debtors
| 10 Debtors |
|
|---|---|
| Accrual for Quilter plc matching of employee donations | 2020 2019 |
| £ £ 20,220 31,066 |
Page 18 #CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Notes to the Financial Statements
for the year ended 31 December 2020
11 Investments
| 11 Investments |
|||||||
|---|---|---|---|---|---|---|---|
| Net | Funds at 31 | ||||||
| Funds at 1 | Net gains on | investment | LGT Vestra | December | |||
| January 2020 | investments | income | Fees | Disposals | 2020 | ||
| £ | £ | £ | £ | £ | £ | ||
| LGT Vestra portfolio | 9,408,948 | 378,955 | 160,457 | (44,857) | (460,000) | 9,443,503 | |
| Net assets | 9,408,948 | 378,955 | 160,457 | (44,857) | (460,000) | 9,443,503 | |
| Restated | |||||||
| Net | Restated | Funds at 31 | |||||
| Funds at 1 | Net gains on | investment | LGT Vestra | December | |||
| January 2019 | investments | income | Fees | Disposals | 2019 | ||
| £ | £ | £ | £ | £ | £ | ||
| LGT Vestra portfolio | 8,201,444 | 1,073,134 | 194,688 | (37,318) | (23,000) | 9,408,948 | |
| Net assets | 8,201,444 | 1,073,134 | 194,688 | (37,318) | (23,000) | 9,408,948 | |
| The investment portfolio comprises | of: | ||||||
| Net | |||||||
| gains/(losses) | Net | Funds at 31 | |||||
| Funds at 1 | on | investment | LGT Vestra | December | |||
| January 2020 | Purchases | investments | income | Fees | Disposals | 2020 | |
| £ | £ | £ | £ | £ | £ | £ | |
| Bonds/Fixed interest | 3,112,177 | 530,015 | 134,509 | - | - | (694,820) | 3,081,881 |
| Equities | 2,366,355 | 591,782 | (232,018) | (328) | - | (174,523) | 2,551,268 |
| Pooled investment vehicles | 3,633,270 | 882,339 | 476,464 | 2,153 | - | (1,354,879) | 3,639,347 |
| Cash | 297,146 | (2,004,136) | - | 158,632 | (44,857) | 1,764,222 | 171,007 |
| Total | 9,408,948 | - | 378,955 | 160,457 | (44,857) | (460,000) | 9,443,503 |
| Net | Restated | ||||||
| gains/(losses) | Net | Restated | Funds at 31 | ||||
| Funds at 1 | on | investment | LGT Vestra | December | |||
| January 2019 | Purchases | investments | income | Fees | Disposals | 2019 | |
| £ | £ | £ | £ | £ | £ | £ | |
| Bonds/Fixed interest | 2,779,608 | 154,885 | 177,684 | - | - | - | 3,112,177 |
| Equities | 2,129,304 | 610,914 | 420,847 | - | (794,710) | 2,366,355 | |
| Pooled investment vehicles | 2,380,809 | 1,338,599 | 474,603 | - | (560,741) | 3,633,270 | |
| Cash | 911,723 | (2,104,398) | - | 194,688 | (37,318) | 1,332,451 | 297,146 |
| Total | 8,201,444 | - | 1,073,134 | 194,688 | (37,318) | (23,000) | 9,408,948 |
LGT Vestra is the investment partner managing the portfolio on behalf of the Foundation.
Page 19
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Notes to the Financial Statements
for the year ended 31 December 2020
12 Financial instruments
Investments have been defined as fair value through profit or loss.
| Bonds/Fixed interest Equities Pooled investment vehicles Cash Total Bonds/Fixed interest Equities Pooled investment vehicles Cash Total |
Level 1 Level 2 Level 3 2020 Total |
|---|---|
| £ £ £ £ 1,146,389 1,935,492 - 3,081,881 2,551,268 - - 2,551,268 3,639,347 - - 3,639,347 171,007 - - 171,007 |
|
| 7,508,011 1,935,492 - 9,443,503 |
|
| Level 1 Level 2 Level 3 2019 Total |
|
| £ £ £ £ 804,548 2,307,629 - 3,112,177 2,366,355 - - 2,366,355 3,633,270 - - 3,633,270 297,146 - - 297,146 |
|
| 7,101,319 2,307,629 - 9,408,948 |
Page 20
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Notes to the Financial Statements
for the year ended 31 December 2020
13 Creditors
| 13 Creditors |
|
|---|---|
| Grants payable Carers Trust MyBnk The Mix Street League School of Hard Knocks Safe New Futures KickStart Money Just Giving membership scheme fees Total Grants payable Carers Trust MyBnk The Mix Street League School of Hard Knocks Safe New Futures KickStart Money Just Giving membership scheme fees Total Raised funds due to Crossroads Care and Carers Trust Raised funds due to Crossroads Care and Carers Trust |
Within one year After one year 2020 Total |
| £ £ £ 75,795 - 75,795 156,670 - 156,670 25,425 - 25,425 48,770 24,385 73,155 49,448 24,724 74,172 51,907 26,337 78,244 20,000 - 20,000 |
|
| 428,015 75,446 503,461 43,863 - 43,863 47 - 47 |
|
| 471,925 75,446 547,371 |
|
| Within one year After one year 2019 Total |
|
| £ £ £ 212,540 75,795 288,335 156,700 156,670 313,370 50,700 25,425 76,125 73,155 73,155 146,310 74,172 74,172 148,344 75,220 78,244 153,464 - - - |
|
| 642,487 483,461 1,125,948 73,466 - 73,466 47 - 47 |
|
| 716,000 483,461 1,199,461 |
There are no other financial commitments on which to report.
Page 21
CONFIDENTIAL
The Quilter Foundation
Charity Registered Number: 1175555
Notes to the Financial Statements
for the year ended 31 December 2020
14 Net cash (used in)/generated from operating activities
| 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|
| £ | £ | ||||||
| Net | income for the reporting period (as per the statement of financial activities) | 546,207 | 1,136,426 | ||||
| Adjustments for: | |||||||
| Gains on investments | (378,955) | (1,073,134) | |||||
| Net | income from LGT Vestra portfolio | (160,457) | (194,688) | ||||
| LGT | Vestra management fees | 44,857 | 37,318 | ||||
| Bank interest | (153) | (1,134) | |||||
| Decrease/(Increase) in debtors | 10,846 | (8,231) | |||||
| (Decrease)/Increase in creditors | (652,090) | 214,617 | |||||
| Net | cash (used in)/generated from operating activities | (589,745) | 111,174 | ||||
| 15 | Unrestricted income funds | ||||||
| Funds at 31 | |||||||
| Funds at 1 | December | ||||||
| January 2020 | Income | **Expenditure ** | Other gains | Transfer | 2020 | ||
| £ | £ | £ | £ | £ | £ | ||
| General | 8,399,191 | 505,168 | (337,916) | 378,955 | - | 8,945,398 | |
| Funds at 31 | |||||||
| Funds at 1 | December | ||||||
| January 2019 | Income | Expenditure | Other gains | Transfer | 2019 | ||
| £ | £ | £ | £ | £ | £ | ||
| General | 7,262,765 | 1,065,819 | (1,002,527) | 1,073,134 | - | 8,399,191 |
A separate disclosure on restricted income funds has not been reported as there was no outstanding balance for the current or prior year reporting years
16 Related party transactions
Quilter plc provides other administrative support totaling £94,558 to the Foundation. The estimated value of these donated services is recognised within income as a donation, and an equivalent charge is included within expenditure as support costs.
The auditors' remuneration of £5,000 (2019: £5,000) was borne by Quilter plc.
17 Post Balance sheet events
There are no events that have occurred, between the reporting date and the date of the financial statements have been authorised for issue, that require disclosure.
Page 22