PARTNERS GLOBAL FOUNDATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 Re8lster ol Charities for England and Wales: Unlted KlnEdom Charrtable Number 1177721
PARTNERS GLOBAL FOUNDATION CONTENTS Reference and Administrative Infomiation Trustees. Report Independent Auditor's Report Balance Sheet io Statement of Financial Activities li Statement of Cash Flows 12 Notes to the Financial Statements 13 Partner5 Global Foundètion12
PARTNERS GLOBAL FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 310ECEMBER 2021 ADMIN15TrATIVE INFORMATION Charity Registration Number- 1177721 (Registered irb England and Wales1 Board of Trustees.. L. Eber5- Chair Flatt J. Flatt Principal Address and Registered Office= 15 Wimpole Street London WIG 9SU Bank: HSBC Private Bank IUKI Limited London Solicitors: Mishcon de Reya LLP London Independent Examiners.. james Cowper Kre5ton Reading Bridge House George Street Reading RGI 8LS Partners Global Foundatlon13
PARTNERS GL08AL FOUNDATION ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021 The Trustees present their annval report and financial statements for the year ended 31 December 2021. The financial statements have been prepared in accordance with the governin8 document, the accountin8 policies a5 set out in the notes to the financial 5tatement5 and comply with the Charitie5 Act 2011 and Accounting and Reporting by ChaTlties-. Statement of Recommended Practice applicable to charitles preparing their accounts in accordance with the Financial Reporting Standard applicable irb the U.K. and Republic of Ireland published on October 2019. Partners Global Foundation was registered as a charity on 27 March 2018. Achievements and Performance Mlsslon and Goals Our mission is to SUPPOrt other charities with financial contributions, and to operate our artists. SIdencV program to assist art15ts from all disciplines. The goal of our financial donations program is to support global leading charities focused on the arts, health and more generally, those in need. The goal of our artists, residency program is to foster artistic experimentation and dialogue across discipline5. Our goal 15 to support emergin& established, and under- recognized artists and practitioner5. Summary of 2021 We achieved numerous objectives in 2021. Apart from having made significant gifts, including completing a major coniribution to the Museum of Modern Art in New York, and contlnued support to the Tate In London. We also operated our second year of ourAm3nt artists, residency program in 5iena. Thi5 program ha5 achieved great 5ucce5s, and is now a core activity of the Foundation. Given covid travel restrictions and visa requirements, 2021 was an extra challenge, but we managed to bring 8 artlsts to attend the residency. This included two artists from the United Kingdom, two from Italy, and one from each of Colombia, Lithuania, United Arab Emirates and Poland. They included visual and conceptual artists, and writers. Full details of the artists can be found on the Amant website at SienalResidencies. Amanr common areas continue to be built out to include garden5, a café, eating area and additional accommodation5. All of this should be open for the third season of Amant in May of 2022. This is a very excitin8 next step for the Foundation. Our website for the residency program launched early in the year. We welcome you to follow us at www.amant.or and on our Instagram at #amantfoundation. We now are close to 10,000 followers and growing almost daily. Our sister foundation in the United States IAmant Foundation, USA) also opened its doors in 2021 and launched some incredible shows including the opening acclaimed exhibition of Grada Kilomba, as well as extremely well attended shows by Gala Porras Kim and Manthia Diawara. PartttÉrs Global FO4Jfidation14
Flnancial Report During the year, we earned £38.67912020 - £141,7341 of income on our Endowment Capital and our Endowment investments recovered substantial value in the markets from last year with a gain of E555,583 12020 - 1055 of £385,805). In addition. our endowment was subject to a tender offer and we received E6S3,504 of cash and new shère5 tn a 8reat company to continue io grow. We chose to transfer the cash received to general operations and therefore at year end, the Endowment fund was valued at £1,162,840 12020- £1.260,7611. In 2020, we committed to acquire our real estate premises at the c05t of construction, in Drder to operate our art4St residency pro8ram. We deposited £2.3 million against the fin31 amount now expected of £4.8 million to own our artist residency premises. The final amount will be paid upon completion of the full construrtion and for the time being is treated 35 It was last year, as an offset to our liabilities because we have the right to repay the loan to U5 Wlth thi5 deposit note. No further amounts have been deposited this year as we await final construction close-out in 2022. During the year we utilized our cash resources and borrowed a further £901.141 which will be repaid when we collect existing pledges from donor5. In total we are proud to have distributed £4.506,LJJO of donations and charitable expenditure in the United Kingdom and abroad12020- £4.154.2481. This includeLJ £IOO,CQO12020- £90,0(X)l èxpended on the costs for our art15t residency program. We managed to keep our non-charitable costs low as the Trustees pav for most of the administrative expenses. The total costs including financial expenses to run the foundation were £9.02312020- £6,718). Our goal is to Brow the endowment and rÈsidertcy property assets. and finance donation5 Wlth income derlved from our Endowment and other donation5. We look forward to report to you next year on the progress of 2022. Strurture, Governance and Management The Trust is a registered charity No. 1177721 established by a trust deed on 29 January 2018. The Partner5 Global Foundation provides funds to charities and operates a ort residency program in parallel with Canadian and United State5 foundatlDn5 under the name of Amant Global Foundation and Amant Foundation. USA. Trustees who served durin8 the period.. L. Ebers- Chair J. Flatt l. Flatt A new Trustee may be appointed at any time by a resolution of a meetirbg of the Trustees and there can be up to a maximum of five Trustees. There is no intention to add new trustees and since the Trustees are sophisticated directors and trustees there is not intention to complete training for Trustees. Partners Global Foundation15
Our Objectives #nd Actlvltles The charitable purposes of Partners Global Foundation have been refined over the past year by the Trustee5 and we have now focused our efforts as follows: the support of art, culture, heritage,. and the education of the public and the education of chIldn and young adults. Risk Management The Trustees manage risk by- establishing policies, systems, and procedures to mitigate risk5 identified; and the implementation of procedures designed to minimize or manaBe any potential impact on the Charity should those risks materialize. ReseNes Poll¢v The Trustees hold the capital and income of the trust to apply the income, and 311 or such parts of the capital, for the benefit of such exclusively charitable objects as they see fit in accordance with its charitable purposes. In addition, income can be accumulated and applied in a later period. Statement about Oonallon5 Policv The Trustees aim to identify a small number of opportvnities for substantial charitable giving to organizations rather than become involved in a multitude of smaller projects. The Trustees will cor15ider proposals from United Kingdom, and other charities that are established outside the United Kin8dom which meet the parameters of our giving. Public Beneflt The charity has complled with the duty in section 17 of the Charities Act 2011 to have due regard to the public berbefit Buidance publbshed by the Charity Commission. Signed by order of the Board of Trustees.. 319/ Lontl Eber5, Chalr Date: Partners Glcb31 Foundation16
PARTNERS GLOBAL FOUNDATION INDEPENDENT AUDITOR'S REPORTTO THETRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 Oplnlon We have audited the financial statements of Partners Global Foundation Ithe'tharity'l for the yearended 31 December 2021 which comprise the Statement of Financial Activities. the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policie5. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standard5, including Financial Reporting Standard 102 'The Financial Reportlll8 Standard appllcable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practlcel. In our opinion the financial statements- give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of the charity's incoming resources and application of resources, including its incorne and expenditure for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is Sufficient and appropriate to provide a basis for our opinion. Conclusions relatlng to golng concern In auditin8 the financial statements, we have concluded that the Trustees, use of the Boing concern basis of accountln8 In the preparatlon or the flnanclal statements Is approprlate. Based on the work we have performed, we have not identified any material uncertainties relating to event5 or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorlsed for155ue. Our re5pon5ibilities and the responsibilities of the Trustees with respect to 80ing concern are described in the relevant sections of this report. Other Informatlon The other information comprises the information included in the AnnLbal report other than the financial statement5 and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other Partner5 Global Foundation17
information and, except to the extent otherwise explicitly stated in our report, we do not expre55 any form of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other inforrnation is materially incon51Stent with the financial statements or our knowledge obtained in the course of the audit. or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misststements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material mi55tatement of ihi5 Other infomiation, we are required to report that fact. We have nothing to report in thi5 regard. Matter5 on which we are requlred to report by exceptlon We have nothing to report in respect of the followinB matters where the Charities (Accounts and Reports) Regulations 2008 require5 US to report to you if, in our opinion: the information gwen in the Trustees, report 15 incorb515tent in any material respect with the finoncial statements; or sufficient accounting records have noi been kept,. or the financial statements are not in agreement with the accounting records and return5; or we have not received all the information and explan3tion5 we require for our audit. Responslbllltles of trustees As explained more fully in the Trustees, responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine 15 necessary to enable the preparation of financial statements that are free from material misstaiement, whether due to fraud or error. In preparing the financial statements, the Trustee5 are responsible for assessing the charlty's ability to continue as a 80ing concern, disclosing, as applicable, matter5 related to going concern and uslng the goinE concern basis of accounting unless the Trustees either intend to liquidate the tharity or to cease operations, or have no realistic alternative but to do so. Auditor's responsSbllltles forthe audlt of the financlal statements We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulation5 made or hoving effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements a5 a whole are free from material mi55tatement. whether due to fraud or error, and to 155ue an Auditor's report that includes our opinion. Rea50nable a55urance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will alway5 detect a material misstatement when it exists. Mi55tatements 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 decision5 of users taken on the basis of these financial stbtements. 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 Partners Global Foundation18
of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Enquiry of management and those charged with 8overnance around aclual and potential litigation and claim5,' Enquiry of entity staff to identify any instances of non-compliance with laws and regulations; Reviewing minutes of meetings of those charEed with governance: Reviewing financial statement di5cIosures and testin8 to supporting documentation to assess compliance with applicable laws and regulations. Performing audit work over the risk of m8nagement override of controls, including testin8 of journal entries ond other adjustments for appropriatene55, evaluating the bLSSiness rationale of significant transactions outside the normal course of bu5ine55 and revieing accounting estimates for bia5. A further description of our Sponsibl11t1es for the audit of the financial statements 15 located on the Financial Reporting Council's website at- www.frc.org.uklauditor5re5pon5ibilitie5. This description forms part of our Auditor's Report. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliante. The risk is also greater regarding irre8ularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. Other matter5 The comparative period was not subject to audit because the charity took advantage of the small charitv exemptions in the prevlous accountirbg period. Use of our report This report is made 501ely to the charlty's trustees, as a body. in accordance with Part 4 of the Charitie5 (Accounts and Reports) Regulation5 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor'5 report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and it5 trustees, as a body, for our audit work, for this report, or for the opinions we have formed. James Cowper Kreston Chartered Accountants and Statutory Auditors Reading Bridge House George Street Reading Berkshire RG18LS Date.. 20.09.2022 Partner5 Global Foundath)n19
PARTNERS GLOBAL FOUNDATION BALANCE SHEET ASAT 31 DECEMBER 2021 (ollomountsin£} Notes 2021 2020 Fixed assets Investments 1,162,840 1,260,761 Current assets Recelvables 81,250 34,209 115,459 13,712,0681 12,335,848) Cash at bank and in hand 6,260 Net current assets 6.260 14,613,209) (3,444,109) Liabilltles li Total net liabilitSes Fund5 Unrestricted funds li 14,606.949) 1.162,840 13.444.109) 13,596,609> 1,260,761 12,335,848) Endowment funds li Totsl Charity Funds Approved by the Board of Trustees and signed on its behalf by: Leontine P. Ebers Date- 3191202Z Charity Registration no. 1177721 Partner5 Global FoundatK)n I IQ
PARTNERS GLOBAL FOUNDATION STATEMENT OF FINANaAI ACTIVITIES INCLUDING AN INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDEO 31 DECEMBER 2021 Unre5trfcted Endowment Funds Funds 2021 2021 Totsl Funds 2021 Total Fund5 2020 lollornounts In £1 Note5 Income and endowments from: DonationslGIft aid received Investment income 2.812.500 38,679 2,812,5th) 38,679 2,851,179 406,250 141,734 547,984 Total 2,851.179 Expendlture on: Operations Charitable activities giving Total 19,0231 14,506,000) 14,515,023) 653,504 19,0231 16,7181 14,506,000) 14,154,248) 14,515,023) 14,160,966) Realization on Tender offer GainlL0551 on mark to market Net {expendlturelllncome Total funds brought forward Total funds carried *orward 1653,5041 555,583 555,583 1385.8051 197,9211 11,108,261) 13.998.787) 1,260,761 12,335,8481 1,662.939 13,444,1091 12,335,848) 11,010,340) 13,596,609) 14,606,949) io 1,162,840 partners Global FDundation l Ll
PARTNERS GLOBAL FOUNDATION STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2021 lollomounts In £1 2021 2020 Cash flows from lused in) operating activities: Net deficit for the period Adjustment5 for.. Receivables collected (to be collected) Investment income (1.108.261) 13.998.787) 81,250 {38,6791 1555.583) 11.621,273) 181,2501 1141,7341 385.805 Losses Igainsl on investments Net cash provlded frorn (used In) operatlng artlvltles 13,835,966) Cash from (used inl investment actlvities: Dividends received 38,679 653,504 692.183 141,734 Cash received on tender offer of securities Net cash used In Investing activities 141,734 C¥shfiows fr•)m financin8 artlvltl•s: Fund5 borrowed, net Net increase Idecreasel in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equbvalent5 at the end of the period Cash and cash equivalents are made up of the following: Cash at bank and In hand 901,141 (27,9491 34,209 6,Z60 3,712,068 17,836 16,373 34,209 6,260 34,209 Partners Global Foundation112
PARTNERS GLOBAL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 i) ACCOUNTING POLICIES Ba555 of accountlng The trust meets the definition of a public benefit entity vnder FRS 102. The financial statements have been prepared underthe historical cost convention as modified by the revaluation of certain rtxed asset5, in accordance with the Statement of Recommended Practice-. Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reportlng Standard applicable in the United Kingdom and the Republic of Ireland IFRS 1021 issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 2011 and U.K. Generally Accepted Proctice as it applies from l January 2019. The Charity was registered on 27 March 2018. The trustees of the Foundation have committed to 5UPPOrt the Foundation as a going concern for the future in order that it can complete its program of external donation5 to charities and operate its artist residency program. To ensure this, one of the Trustees has made available a loan facility of £15 million to the Foundation. The loan has a nil interest rate. and the Foundation has the option to repay it with cash or securities from donations received, or with property dep051t5 at any time. The loan has no oiher maturity date and therefore until further donation5 are received the Foundation has the resources to complete it5 mission and operate as a goin8 concern. The preparation of financial statements in compliance with SORP requires the use of certain critical accountin8 estimate5. It also requires management to exercise jud8ment in applyin8 the accounting policies15ee note 21. The following principal accounting policies have been applied: b) Incoming resources All Incomlng resources are Included In the statement of financlal activities when the charity is entitled to the income, it is probable that it wlll be received, and the amount can be quantified with reasonable accuracy. All income is gross without deduction for related expeniliture. The following specific policies are applied to particular cate8ories of incorne-. Voluntary income is received by way of donatioris and gifts and is recognised in full in the Statement of Fbnancial Activilies when receivable. Investment income is recognised when receivable as notified from the investment manager5. Resources expended Expenditure is recogni5ed on on accruals basis as liabilities are incurred. Expenditure includes any VAT whTrch cannot be fully recovered, and is reported as p8rt of the expenditure to which it related= Cost of raising funds consists of the costs associated with the investment portfolio. partner5 Global FoundatnI13
Charitable expenditure comprise5 those cost5 incurred by the charity in the delivery of its activities. It includes both tosts that can be allocated directly to such actwities and those costs of an indbrect nature necessary to SUPPOrt them. dl Flxed asset Investments Listed investments a a form of basic financial instrument and are initially recognised at thelr transaction value and subsequently measured at theirfair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arisin8 on revalvation and disposals throughout the year, allocated to the appropriate fund. e) Cash and cash equlvalents Cash and cash equivalents compromise cash at bank and in hand and demand deposits with banks. Funds The Foundation follows ihe restrlcied fund method of accountlng for Income. The Foundation ensures, as part of its fiduciary responsibilities, that all funds and donations received with a restricted purpose are expended for the purpose for which they were provided. Genen71 Fund This fund is used to mana8e, and report amounts includin8 earned income* 8rants. dorsations and investment income, to be used to support the FoLTrndation's grant making activities and operation. The donors have placed no restrictions on the use of these funds,. the Board of Trustees determines the distribution of grants. Endowment Fund These amounts represent donation5 that have been made as endowments. Investment income earned on resources of the endowments is reported in the Endowment Fund or in the General Fund dependent on restrictions imposed by the contributors of fund5 for endowment. Flnanclal Instruments The Charity only enters into basic financial instruments transaction that result in the recognition of financial assets and liabilities. Financial instruments are initially measured at transaction value. They a assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of financial activities. h) Foreign currency translatlon The financial statements are presented in Sterling, which is also the functional currency of the Charitv. Direct currency conversions are translated into the functional CrnCY Lbsing the exchange rate at the ddte of the transaction. At each period end foreign currency monet3ry Item5 are translated usiri8 the closing rate. Foreign exchan8e 8ains and 1055es re5ultin8 from the settlement of transactions and from the translation at period-end exchange rates of monetary a55ets and liabilities denominated in foreign currencies are recognised in the statement of financial activitie5. Partners GIDbal Foufidation114
Goin8 concern The Trustees are not aware of material uncertainties re8arding 80ing concern. And. while the Foundation currently has a deficit, the Foun(lation has borrowed funds against forward commitments and the Trustees ore certain of the commitments15ee Notes 14 and ISI. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION The preparation of financial statements in conformity with generally accepted accounting principles requires managemeni to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent asset5 antl liabilities at the date of the financial 5totements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. These estimates are reviewed annually and as adjustments become necessary. they are recognized in the financial statements in the period they become known. The key source of estimation uncertainty that could have an impact on the financial statements relates to the values of investments held. INVESTMENTINCOME Unrestricted Endowment Funds Funds 2021 2021 Total Funds 2021 Total Funds 2020 lollomouJ7ts in £1 Dividends from fixed asset investments 38.679 38,679 141,734 4) RESOURCES EXPENDED Operations expenses Unrestricted Funds 2021 En(lowment Funds 2021 Total Funds 2021 Total Funds 2020 loll Gmotsnts in El Audit and IE fee5 7.)0 2,100 Investment portfolio fees nd other expenses 6,023 6,023 13,023 4,618 13,023 6,718 bl Charitable activilies 8iving Unrestricted Endowment Funds Funds 2021 2021 Total Fund5 2021 Total Funds 2020 {oll omoLtnts in £1 Partners fjlobal Foundation I IS
Expenditure on artist residency program i(M),000 4,406,000 4,506,000 I,000 4,406,000 4,064,248 90,000 Donations paid 4,506.000 4,154,248 Included within donations are amounts paid to institutions as follow5.. Total 2021 Total 2020 foll omounts in £1 Museum of Modern Art Memorial-sloan Kettering Cancer Center Tate Modern Art Gallery HRH Prince Charles Royal Drawing School Delfina Foundation for Art New York Consolidated New York 4,188,000 123.01)0 50,000 15,000 3,846,154 New York London I,000 15,000 London London New York New York New York 7,000 Drawing Center Artists Space King Baudouin Foundation Bard College of Curatorial 5tudie5 Barbican Centre 24,955 27,947 3,500 3.5 Berlin New York 30,769 10,000 2,500 London Camden Art Centre London Serpentine Museum 8RIC London 5,CQO 1.923 New York 4,406,IKIO 4,064,248 5) TRUSTEES EMOLUMENTS AND REiATED PARTY TRANsAloNs During the year no Trustees received ariy renLbmeration, other benefits or expenses. One of the trustees IJ. Flattl made cash donations to Partners Global Foundation totaling of £2,250,00012020 - E325.0001 during the year. The donation5 in both years were designated 35 8Trft aTrd and therefore the Foundation clatmed gift aid reventle of £562,500 as a result of the donation. All amounts were received from HMRC Iluring the year. 6) STAFF COSTS The Charity has no employees12020- no employees) but pays on a consulting basi5 the indNiduals that work part-time on its artist residency program. Partner5 Global Found3tk)n116
7) FIXED ASSET INVESTMENTS follomounts lftEJ 2021 2020 Llsted Investments: Opening balance Acquisition of securities Disposal of securities Unrealised gain Ilossl durinB year At 31 December 1,260,761 1,071,831 11,260,761} 91.009 1,646,566 1385.8051 1,260,761 1,162,840 lollomounts In £} Materlal Investments: Orl8lnal Cost Opening.'119,0 Brookfield Property common units Tender offer proceeds reducing cost base 1,713,510 1653,5041 1,060,006 At year end 2021= 2,731 Brookfield Property Partners preferred units 25,995 Brookfield Asset Management Inc. Class A Sha5 48.768 1,011.238 1,060,006 The Foundation is subject to market risk on its portfollo of publicly listed securities and fluctuations in the market tradirb8 prices of the securities exposes the Foundation to a risk of105S. The portfolio may a150 be exposed to fluctuations in foreign currency exchange rates as the securities portfolio do have foreign exposure. During the year, the 5ecuritie5 holdings were subject to a tender offer on I19,0 common units of 8rookfield Property Partners IBPYI. The Foundation tendered it's 119,000 common units of BPY and received a5 compensation cash of £653,504. The Foundation also received 2,731 preferred units of BPY and 25,995 shares of Brookfield Asset Management Inc. Donations of Investment5 are designated as Endowment as5et5 although income generated on the Endowment is utilized by the Foundation for general purposes. The cash proceed5 on tender were taken as income and utilized for 8efteral purposes. 8) CASH ATBANK AND IN HAND l(Jll ntS in EJ Current accounts 2021 2020 6.260 34,209 34,209 At 31 December 6,260 Partners Global Foundation117
RECEIVABLES fullomounts ift£) 2021 2020 HMRC Gift Aid Receivable 81,250 At 31 December 81,250 DuTing 2020, the Foundation received donations whlch were designated as gift aid. Gift aid had been claimed from HMRC and was Outstanding at year end but was subsequently received post year end. io) SUMMARY OF FUNDS Brought Forward Incoming Resources Resources Expended 2,851,179 14,515,023) Gains/ (Losses) 653,504 14,606,949) Carried Forward 2021 lollomounrs In £1 Unrestricted funds- general fund Endowment funds 13,596,609) 1.260,761 12,335,848) 197,9211 1,162,840 555,583 13,444,1091 2,851,179 14,515,023) Brought Forward IncominB Resources Resources Expended Gainsl (Lossesl Carried Forward 2020-1oll omounts El Unrestricted funds- general fund Endowment funds 16,373 1,646,566 547,984 14,160,9661 13,596,609) 1385,8051 1,260,761 547,984 14,160,966> 1385,8051 12,335,848) 1,662,939 The endowment fursd represents donations that have been made as endowments. The investment income earned on resources of the endowments is reported in the General Fund and is applied to fund the activities of the charity. The Foundation ha5 a loan facility from one Trustee which is only repayable from donations in the future which enables the Foundation to be a going oncern until those donations, which have been pledged to the Foundation, are received. Partners Global Foundat118
ii) ANALYSIS OF NET ASSET5 BETWEEN FUNDS Unrestricted Funds Endowment Funds Total Fund5 2021- lollomounts in £J Investments 1.162,840 1,162,840 Cash 6,260 6,260 Receivables 6,260 6,260 Oeposit with offset right Loans Payable 2,307.692 16,920,901) 14,613,209) 14,606,949) 2,307,692 16,920,901) 14,613,209) 13,444,109) 1,162,840 Unrestricted Funds Endowment Funds Total Funds 2020-1tsllttmounts lrt £1 Investments 1,260,761 1,260,761 Cash 34,209 81,250 34.209 81,250 115,459 Recelvables 115,459 Dep051t- with right to offset loans payable Loans Payable 2,307,692 {6,019,7601 13,712,068) 13,596,609) 2,307.692 16.019,7601 13,712,068) 12,335,8481 1,260,761 lollomounts in EJ 2021 2020 Deposlt on property: Opening balance Purchases 2.307,692 2,307,692 2,307,692 At 31 December 2,307,692 Cost 2,307,692 2,307,692 Partners Global Foundaiion119
During 2020, the Foundètion committed to acquire numerous properties for its art15t residencv program at fair market value upon completion. The Foundation funded a deposit of £2,307,692 in 2020 for the properties which is expected to be approximately 50% of the total c05t on completion. The Premises are now entirely occupied for the Foundation residency pro8ram and the costs of the program in have been expensed in the accounts. Upon completion of renovation of the properties. the balance of the costs of construction will be pald ¢n full. It 15 expected that approximately a further £2.5 million will be payable. Until completion of the residency, the deposit can be Put at Face Value to extinguish a portion of the loan and the finarbcial Statements have been recorded as if that has taken place. 12) CONTROLLING PARTY There is no controllin8 party. 13) STATEMENT OF FINANCIAL AcfiviTIES- COMPARATIVE Unrestricted Furbds 2020 Endowment Funds 2020 Total Funds 2020 loll omotsnts in EJ Income and endowments from: Donation5 received 406,250 141,734 547,984 406,250 141,734 Investment income Total 547.984 Expendlture on: Operations Charitable activities giving Total 16,7181 14.154,2481 14,160,966) 16,7181 14,154,248) 14,160,9661 Net gain51 Ilossl on investment5 Net income I (expenditures) Total funds brought forward Total funds carrSed forward 1385,8051 1385,805 1,646.566 1385,8051 13,998,787) 1,662,939 12.335,8481 12,612,982) 16,373 13.596.609) 1,260,761 14) LOAN FROM TRUSTEE One of the Trustees (J. Flatll has made available a loan facility of £15 million to the Foundation. The loan has a nil interest rate, and the Foundation has the option to repay it with cash or securities from donation5 received, or with property deposits at any time. The loan has no other matvrity date. The total amount of the loan outstanding is £6.920,90112020 - £6,019,760). The property dep051t was £2,307,692 at the end of both years and as the Foundation has the absolute right to repay it with this deposit, it has been treated as such and the loan ovtstandiTig in the accounts is recor(led at the net of £4,613,20912020- £3,712.0681. Partner5 Global Foundatlon120
The Trustees have considered whether the loan falls under the definition of a financing transaction under FRS 102. Under FRS 102. such a transaction should be stated at its present value, measured by any futu payment distounted at a market rate of interest. There are no clear repayment terms or timescale for the loan,. the trigger for repayment Is regarded a5 remote. Accordingly, the Trustees are of the opinion that the fair value of the loan amount to be included in the financial statements IS its original monetary value. There are no other related party transactions needing disclosure in the period. 15) CONTINGENCIES The Foundation has a commitment to fund a further approxlmately £2.5 million to complete its art15t residency prugram. This amount will be paid in the future when resources are available from donations.. expected to be in 2023 or 2024. To fund this tornmitment, repayment of its loans, and its expenditures going forward, the Foundation has recelved a minimum pledge of £15 million to be paid overthe next five years from one of its Trustees, and also has a credit facility of £15 million tD bridge those receipt5. Currently £4.613,2091s drawn on the loan facility. Partner5 Global FoundatK)n121