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2021-12-31-accounts

Charity Registration No. 1179847

Company Registration No. 11145243 (England and Wales)

ALEX FERRY FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

(A COMPANY LIMITED BY GUARANTEE)

ALEX FERRY FOUNDATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J F Rowse (Chair of the Board)
D Emerson (Independent Member)
T Griffiths (Lay Member)
S G Hibbert (Lay Member)
D M Holland (CSEU Member)
R A Holmes (Lay Member)
A J McDiarmid (CSEU Member)
D S McPhee (Lay Member)
H Scullion (Subscriber)
C Stevenson (Lay Member)
Executive Director I Waddell
Deputy Director K Goddard
Finance and Administration Manager N Ojike
Charity number 1179847
Company number 11145243
Registered office 10 Salamanca Place
Vauxhall
London
SE1 7HB
Auditor HW Fisher LLP
Acre House
11-15 William Road
London
NW1 3ER
Bankers Unity Trust Bank Plc
Four Brindleyplace
Birmingham
B1 2JB
Legal advisors Bates Wells
10 Queen Street Place
London
EC4R 1BE
Investment advisors Rathbones Investment Management Ltd
8 Finsbury Circus
Finsbury
London
EC2M 7AZ

ALEX FERRY FOUNDATION

CONTENTS

Page
Trustees' report 1 - 6
Statement of Trustees' responsibilities 7
Independent auditor's report 8 - 10
Statement of financial activities 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 24

ALEX FERRY FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT)

FOR THE YEAR ENDING 31 DECEMBER 2021

_______________

Statement from the Chair

The Alex Ferry Foundation was established on 24 December 2018 following the granting of a Court Order releasing funds from the CSEU 35 Hour Week Campaign Fund. It is a registered charity, regulated by the Charity Commission.

The Foundation and its Trustees operate a Community Grants scheme supporting communities identified by CSEU districts and regions as causes they wish to support and meet the due diligence requirements of the Foundation. In a similar vein, the Foundation also makes Research Grants to a range of organisations.

The Funds of the Foundation are in two parts, the first being the amount transferred on the day of registration and the second part being the remainder of the Fund (including a Unity Trust Bank plc shareholding) which is retained in the “Retention Fund” for a limited period to deal with any outstanding liabilities that may arise over a fixed period. In due course, this will pass to the Foundation by way of a final transfer as required by the Court Order. This process will occur in September 2023, at which point the “retention fund” will be absorbed wholly into the Foundation, creating one single fund that can be used to further the charitable aims of the organisation.

Public Benefit

In making our decisions about public benefit and all activities of the Foundation we have had due regard to the Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.

Financial Statements

The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the financial statements and comply with the Articles of Association, the Companies Act 2006 and "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)".

Incorporation and governing document

Alex Ferry Limited was incorporated on 11 January 2018 as a private company limited by guarantee with no share capital under the company registration number 11145243. The company was registered with the Charity Commission on 7 September 2018 under the charity registration number 1179847. On 14 May 2019 the company changed its name to Alex Ferry Foundation. The Foundation is governed by its Articles of Association.

Administrative details

Details of the legal and administrative information in relation to the Foundation are set out at the front of the financial statements. These details include the Trustees of the Foundation as well as the organisations providing banking services, investment advice, legal advice and audit services.

Objectives and activities

The Alex Ferry Foundation has the following aims and objectives as laid out in our registration document with the Charity Commission. The Foundation's objects are specifically directed to the following activities for their beneficiaries:

The Trustees have set out how these objectives will be achieved in their Strategic Plan 2020 - 2022. The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Foundation should undertake.

Trustees

The Trustees meet at least five times in any calendar year and discuss progress, strategy and future plans. All key decisions affecting the Foundation are agreed at these meetings. The day-to-day management of the Foundation is delegated by the Trustees to Ian Waddell as Executive Director who regularly meets with the Chair and Independent Director.

The Foundation continues to work closely with the Confederation of Shipbuilding & Engineering Unions and shares premises and resources with that body.

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ALEX FERRY FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED)

FOR THE YEAR ENDING 31 DECEMBER 2021

Activities

The Foundation continues to operate with a small executive team dedicated to ensuring that the organisation delivers on its vital mission to serve workers and former workers within their communities as well as supporting and promoting access to good, secure work, both now and into the future.

Our mission can be seen as running through everything that the Foundation has done over the past year, whether it is in developing research around shorter working time (an issue that, due to the origins of the Foundation, will always be at the heart of everything we do), workers’ voice, trade unionism, the just transition, or in our responsive, locally focused funding of communities throughout the UK during the Covid19 pandemic and its ongoing aftermath, socially and economically. But our mission does not begin and end with the grants that we make. We have also been working hard to raise awareness of work-related issues, both across and beyond civil society. To this end, we have been active in discussions with researchers, grant-makers and think tanks throughout the course of the year, with the aim of sharing our unique mission as widely as possible and leveraging more interest, finance and support to the cause of ‘good work’.

Throughout the period covered by this report, the Foundation has worked hard to be adaptable, attentive and pragmatic in how we meet our charitable aims.

Strategy

The Board has continued to follow the approved Strategic Plan throughout 2021; developing, extending and implementing our local community grant-making programme, driven by ideas from local trade union groups in the relevant unions. In addition, we have developed a wide-ranging and well-respected suite of research grants, looking to influence the debate about the future of work in ways that are relevant to the interests of our beneficiary groups, their wider community and the trade union movement.

During this period, despite the practical and operational challenges presented by Covid19, the Foundation has gone from strength to strength; distributing substantial funds through our community grants programme to vital local organisations, supporting a range of high-quality work-related research, and beginning to build strong connections between trade unions, research institutions and civil society more broadly.

The feedback from the organisations we work with has already been inspiring, and we look forward to developing and expanding our grants programmes further throughout 2022.

Investments

The Board is in the processes of reviewing its investment strategy in line with the impact of Covid19 on the investments. This will include the aim of maintaining the capital value of the Foundation’s investments at no less than its real value on the 1 June 2020.

It will also maintain the Board’s investment policy of total-return investment. The key elements of the policy are to:

  1. Generate an income (from the investments, capital growth and reserves) to meet the planned annual expenditure.

  2. The reserves may be used over the period to stabilise income shortfalls.

The Board took further independent advice to support trustees in managing the investments in 2021.

Achievement and performance

As a grant-making organisation, the Alex Ferry Foundation undertakes no fundraising activity in order to fulfil its charitable aims and objectives, rather they are discharged via our two primary programmes as outlined below in the ‘grants’ section of this document. This grant-making is funded via income derived from our endowment, in-line with the investment policy also detailed herein.

While there was some underspend relative to our stated ambition within the community grants programme, the executive and board are taking measures to ensure that this underspend will be distributed in-line with our strategic objectives over the coming months. The research grant programme experienced fewer operational disruptions and was distributed in full and on time. On an individual level, the Foundation requires each grantee to report progress six months after receiving a grant and then again upon the completion. This reporting requires grantees to identify the outcomes and outputs of the grant against stated aims and also state any factors that have hindered impact or delivery.

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ALEX FERRY FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED)

FOR THE YEAR ENDING 31 DECEMBER 2021

Grants

Community Grants

2021 saw the launch of our Community Grants programme on a national scale, spanning ten geographical areas across the UK. In general, our Community Grants programme focused on funding organisations that make a positive contribution to the local community, improving places, spaces and addressing genuine need on the ground.

Community grants range from £500 to £10,000 and are targeted at registered charities with an income of less than £2million per annum and some track record of delivery. In order to make community grants the Foundation has worked closely with CSEU District Committees. District Committees identify charitable projects that reflect both their local priorities and those of the Foundation, making recommendations which are then considered against criteria and administered by the executive. In the period covered by this report, over £80,000 of community grants were awarded, with underspend rolled into 2022 budgets for the districts where it is applicable

Research Grants

True to its origin in the struggle for shorter working time, the Foundation is dedicated to funding research and policy that makes strategic and long-term interventions in the debate around how to ensure that the future of work is both just and has the desires, needs and demands of working people at its heart. To this end we have distributed over £131,000 in research grants over the past twelve months, to a range of organisations and projects, a number of which will continue to deliver outputs into 2022.

Financial review

The review of the Foundation's financial position takes place at the last meeting within the reporting period at its November/December Board meeting. The review is conducted alongside receiving reports from the Foundation Investment managers and independent financial advisers. It is conducted against the background of the 10-year funding plan which allows a reasonable risk across the portfolio.

The Foundation’s unrestricted fund balance at the year-end was approximately £11.7 million.

The Foundation draws down running cost funds on a quarterly basis notified to the investment managers at the beginning of each financial year to meet the grant making and research programmes and running costs. In the year ending this reporting year this amounted to £650,000.

The Foundation’s reserve policy is in two parts. A short-term reserve provides immediate liquidity for one year and is deposited in “safe” assets, such as bank accounts. Its target value is one year’s expenditure less the anticipated income. A long-term reserve providing exposure to long term economic growth. Its target value will be £9.6m (at 1 April 2021), increased annually by CPI inflation from then and is invested to achieve high, long term sustainable growth.

The Foundation currently contains the full amount of the Retention Fund (RF), mentioned earlier in the Report, in a restricted fund at the end of this reporting year. This will continue until the third quarter of 2023. At this stage, it will become fully available to the Foundation as part of its investment portfolio. At the end of this reporting year the value of the restricted fund was £11.9m.

The value of the Fund’s assets available to the Foundation at the end of reporting were £11.6m, excluding the value of the restricted fund.

At the end of this reporting year there were no uncertainties about the Foundation continuing as a going concern.

There were no significant events that have affected the financial performance of the Foundation during the year ending 31 December 2021.

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ALEX FERRY FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED)

FOR THE YEAR ENDING 31 DECEMBER 2021

The Foundation was established with a charitable donation of £14million from the CSEU 35 Hour Week Campaign Fund. This donation was in the form of an in-specie transfer of listed investments. As at 31 December 2021 this Foundation investment portfolio had an asset value of £11.7 million. A separate entity, now called The Retention Fund, of which the Foundation is the sole beneficiary and referred to in the third paragraph of this report, has a combined valuation of £11.9 million. Following further legal advice the Trustees were informed that the Retention Fund should be incorporated in the Foundation accounts but shown as a “restricted fund” until the time period elapses in 2023. After which, it becomes fully available to the Foundation. The Foundation accounts have been adjusted to show this, and the relevant regulatory bodies have been informed separately of the change.

Following the difficult year in 2020, 2021 saw a significant improvement in economic and corporate profit growth as economies recovered from the depths of the pandemic. Despite ongoing concerns about inflation and supply shortages, the global stock markets performed well and finished the year with decent gains. In October, US stocks had a record month, with the S&P 500 surging by 6.9%, its biggest monthly gain for 2021. The FTSE 100 also rose to a near 20-month high in October, recovering all losses since the pandemic began. However, at the end of November discovery of the new Omicron variant and what it could mean for vaccine efficacy and the potential return of lockdowns unsettled markets. Despite this, the UK stock market ended the year up 18.4%

The impact on the Foundation portfolio of an overall improvement, after fixed costs, of approximately 10% together with the upward movement in the Unity Bank valuation held in the Retention Fund, gave a total investment portfolio of £22.7m.

Fixed interest investments had a challenging year with UK gilts declining by 5.2% and corporate bonds also weaker. One of the reasons for this was due to investors shifting out of low-risk investments like gilts into higher risk equities. In addition, investors became increasingly concerned, as the year progressed, with rising inflation and the prospect of rising interest rates.

Investment policy and performance

A full review was undertaken in 2021 with the newly appointed independent financial advisers which looked into all aspects of the Foundation’s investment strategy and advised accordingly.

The Board reviewed and approved its investment policy in July 2021 which includes the key points set out below:

The Alex Ferry Foundation appoints professional investment management to manage the assets on a discretionary basis, in line with this investment policy. The Foundation will maintain a nominated list of authorised signatories, two of which are required to sign instructions to the investment manager. Those nominated Trustees have responsibility for advising the Board on variations in strategy and in monitoring the investment assets against target. Performance will be reviewed by the full Board on a six-monthly basis, and the investment manager(s) will be required to present at least once a year to the Board.

The Trustees have responsibility for varying strategy and monitoring the investment assets against target.

The Investment Manager is required to present at least once every year to the Board.

At least every six months the Trustees will review financial performance, ESG activity;

The base currency of the investment portfolio is Sterling.

The AFF’s assets can be invested widely and in line with Charity Commission guidance and best practice according to the appointed manager’s discretion. Investments into derivatives or derivative based investments are permitted only for efficient portfolio purposes and not for speculation. The long-term fund investment objective is to produce a sustainable flow of cash (after fees and inflation) over 4% over the long term.

The Foundation has not carried out any fundraising activities.

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ALEX FERRY FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED)

FOR THE YEAR ENDING 31 DECEMBER 2021

The Trustees continue to assess the major risks to which the Foundation portfolio is exposed and recognise the primacy of the investment management risk. The Trustees have ongoing arrangements with independent professional advice.

Grant policy

The Trustees will pay due regard to guidance issued by the Charity Commission in deciding what activities to undertake. As a new Foundation with limited staff resources, the Trustees have decided that they will not offer grants to individuals.

They will instead concentrate on offering grants to charitable projects that fulfil the aims and objectives of the Foundation. The details of the grant making strategy are contained in the Trustees’ report and Strategic Plan.

The Foundation will also work with other organisations including other charities, benevolent funds, foundations and research bodies to identify and deliver national campaigns and projects related to its aims and objectives.

Plans for future periods

2021 was a landmark year for the Foundation, and we have been thrilled and proud to deliver on our mission to support communities across the UK and drive a research agenda that demands a dignified, worker-first approach to the challenges of the present and those emerging on the horizon. That said, we are still a young organisation, and we are committed to improving, refining and expanding our impact in the years ahead.

Over the next twelve months the Foundation will continue to drive forward its community grants programme, ensuring that expenditure happens across all districts at a level that delivers much needed direct support on an ongoing and focused basis. We will also look to capitalise on the opportunities of the present moment as it relates to our research agenda; ensuring that we produce work that is usable and relevant on the shopfloor and in the many ongoing campaigns to secure better working conditions for employees in the face of the many economic and political headwinds that continue to hinder the progress of the broader historical labour movement. Next year will also see us revivify our Breathe Safe Campaign, which will look to raise awareness and ultimately change the legislative and regulatory environment around the dangers of weld fume.

Throughout all of this, we will continue to work collaboratively with both the trade union movement and civil society, making a case for visions of the future that include good work, supportive communities and a commitment to working together in solidarity.

Structure, governance, and management

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

J F Rowse (Chair of the Board) D Emerson (Independent Member) T Griffiths (Lay Member) S G Hibbert (Lay Member) D M Holland (CSEU Member) R A Holmes (Lay Member) A J McDiarmid (CSEU Member) D S McPhee (Lay Member) R Murdoch (CSEU Member) (Resigned 4[th] March 2022) H Scullion (Subscriber) C Stevenson (Lay Member)

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

The executive staff of the Foundation consists of one full time member or staff and two part time members of staff, currently consisting of an executive director, a director of external relations and a finance manager. Day to day operations are undertaken by this executive team, while all grant expenditure out with the community grant process and above a nominal level is ratified by the trustee board during scheduled meetings. Pay levels are set by the board, subject to an annual review process and benchmarked against comparable roles within the sector.

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ALEX FERRY FOUNDATION

TRUSTEES’ REPORT (INCLUDING DIRECTORS’ REPORT) (CONTINUED)

FOR THE YEAR ENDING 31 DECEMBER 2021

Recruitment

The Trustees are elected in accordance with the Articles of Association which provides for five lay member Trustees and three trade union officers appointed by the CSEU.

The three trade union officers elected by the CSEU Executive Committee and serve for a four-year period.

The Five lay members are elected at a specially convened meeting once every four years comprising solely of lay representatives of the CSEU District Committees.

The Independent Director is elected by Board members and also holds office for four years. Any Board member resigning within that period, including the Independent Director, is replaced by the above methods to serve out the remaining period of office.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees’ report was approved by the Board of Trustees.

John Rowse

………………………...

J F Rowse

20 Dec 2022 Date: ………………………..

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ALEX FERRY FOUNDATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees, who are also the directors of Alex Ferry Foundation for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Foundation and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

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

ALEX FERRY FOUNDATION

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF ALEX FERRY FOUNDATION

Opinion

We have audited the financial statements of Alex Ferry Foundation (the 'charity') for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Foundation in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Foundation's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements 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 information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Foundation and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.

ALEX FERRY FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF ALEX FERRY FOUNDATION

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the Foundation for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees 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 Foundation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

ALEX FERRY FOUNDATION

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF ALEX FERRY FOUNDATION

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors of the company.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Carol Rudge

Carol Rudge (Senior Statutory Auditor) for and on behalf of HW Fisher LLP

Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom

.........................20 Dec 2022

ALEX FERRY FOUNDATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£'000s
£'000s
Income from:
Investments
3
228
149
Expenditure on:
Raising funds
4
50
30
Charitable activities
5
515
34
Total resources expended
565
64
Net gains/(losses) on
investments
10
1,279
4,013
Net incoming/(outgoing)
resources before transfers
942
4,098
Gross transfers between
funds
15
353
(353)
Net movement in funds
1,295
3,745
Fund balances at 1 January
2021
As originally reported
10,353
-
Prior year adjustment
18
-
8,163
As restated
10,353
8,163
Fund balances at 31
December 2021
11,648
11,908		 Total
Unrestricted
Restricted
Total
funds
funds
as restated
as restated
2021
2020
2020
2020
£'000s
£'000s
£'000s
£'000s
377
209
207
416
80
66
31
97
549
667
71
738
629
733
102
835
5,292
(5,394)
(2,890)
(8,284)
5,040
(5,918)
(2,785)
(8,703)
-
-
-
-
5,040
(5,918)
(2,785)
(8,703)
10,353
16,271
-
16,271
8,163
-
10,948
10,948
18,516
16,271
10,948
27,219
23,556
10,353
8,163
18,516

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ALEX FERRY FOUNDATION

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Investments
11
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
15
Unrestricted funds		 2021
£'000s
11
971
982
(137)		 £'000s
22,711
845
23,556
11,908
11,648
23,556		 2020
as restated
£'000s
10
374
384
(213)		 £'000s
18,345
171
18,516
8,163
10,353
18,516

20 Dec 2022 The financial statements were approved by the Trustees on .........................

John Rowse

.............................. J F Rowse Trustee

Company Registration No. 11145243

ALEX FERRY FOUNDATION

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £'000s £'000s £'000s £'000s
as restated
Cash flows from operating activities
Cash absorbed by operations 19 (626) (756)
Investing activities
Cash withdrawn from portfolio 1,155 -
Purchase of investments - 176
Proceeds on disposal of investments - (1,196)
Investment income received 68 416
Net cash generated from/(used in) investing
activities 1,223 (604)
Net cash used in financing activities - -
Net increase/(decrease) in cash and cash equivalents 597 (1,360)
Cash and cash equivalents at beginning of year 374 1,734
Cash and cash equivalents at end of year 971 374

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Alex Ferry Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 10 Salamanca Place, Vauxhall, London, SE1 7HB, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Article of Association, the Companies Act 2006 and "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)". The Foundation is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest £'000s.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The financial statements have been restated; the details of the prior year adjustment are set out in note 18. In addition to the prior year adjustment, a further restatement has been made to reclassify £1,002k from cash held at bank to cash held in portfolio.

1.2 Going concern

The Trustees have considered the effect of the Covid-19 outbreak. The Trustees have continued to adapt the operations and strategy of the Foundation in light of the ongoing impact of Covid-19. As well as affecting the day-to-day operations of the organisation, the circumstances of the pandemic have also had a bearing on the Foundation’s finances. Reduced dividend income throughout 2021 required the Trustees to take the following steps in order to preserve, to the degree contextually possible, the real term value of the investment portfolio:

I: Agreed a ‘steady state’ expenditure budget for 2022

II: Worked with our investment managers to develop a multi-year strategy that minimises capital draw down and agreed said strategy.

III: Agreed to review the Foundation’s investment strategy in light on medium term market trends, operational requirements, and risk appetite.

IV: Agreed to continue to minimise unplanned operational expenditure where possible while ring-fencing grant budgets in order to continue to fulfil the organisation’s charitable mission and meet the pressing needs of our beneficiaries.

These actions, taken alongside an operationally successful 2021 and a cautiously promising upturn in the value of the organisation’s portfolio have satisfied the Trustees that the Foundation is in a solid position to meet its charitable purpose on an ongoing basis. The charity also has a large investment portfolio, which supports their ability to continue as a going concern.

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Investment income is accounted for on an accruals basis.

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Cash donations are recognised on receipt. Other donations are recognised once the Foundation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Foundation has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Resources expended

Resources expended are recognised in the period to which they relate.

Governance includes the costs of compliance with constitutional and statutory requirements.

Grants payable are charged to the statement of financial activities in the period in which the grant commitment is made and a liability is recognised for the full amount of the grant award, unless there are conditions attaching to its payment which limit the recognition.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

1.8 Financial instruments

The Foundation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Foundation's balance sheet when the Foundation becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Foundation’s contractual obligations expire or are discharged or cancelled.

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Foundation is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Foundation’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

As at 31 December 2021 the carrying amount of the following assets were subject to judgement or to estimation uncertainty: -The fair value of unlisted equity investments are based on the latest purchase offer. -The Trustees believe that the likelihood of any liability arising in relation to the Retention Fund is remote and have therefore not recognised a contingent liability.

3 Investments

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
as restated as restated
2021 2021 2021 2020 2020 2020
£'000s £'000s £'000s £'000s £'000s £'000s
Investment income 228 149 377 209 207 416

4 Raising funds

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
as restated as restated
2021 2021 2021 2020 2020 2020
£'000s £'000s £'000s £'000s £'000s £'000s
Investment management
fees 50 30 80 66 31 97
50 30 80 66 31 97

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

5 Charitable activities

2021 2020
as restated
£'000s £'000s
Grant funding of activities (see note 6) 240 416
Support costs (see note 7) 276 266
Governance costs (see note 7) 33 56
549 738
Analysis by fund
Unrestricted funds 515 667
Restricted funds 34 71
549 738

The charity awards community and research grants for education and training purposes.

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

6 Grants payable

Grants payable
2021 2020
£'000s £'000s
Grants to institutions:
Community grants
North West Hazard Trust 10 -
Salford Unemployed and Community Resource Centre 10 -
Southampton Advice Representation Centre (SARC) 10 10
Derbyshire Unemployed Workers Centre (DUWC) 10 10
The Really Amazing Charity TRAC 10 -
Newhill Youth & Community Association 10 -
Plymouth VCSE (POP) 10 10
West View Advice & Resource Centre 10 10
Vauxhall Community Law & Information Centre - 10
Cyrenians - 15
Playlist for Life - 10
PLS Food Foundation - 10
Leicester Unemployed Workers’ Centre - 10
Improving Lives Plymouth - 10
Devon Community Foundation (DCF) - 30
Leicester Unemplpoyed Workers' Centre - 10
Men's Shed Fleetwood - 7
Ulster University - 10
North Belfast Alternatives - 7
Research grants
Breathe Safe project 11 -
IPPR 17 14
Social Enterprise UK 18 -
IER 10 -
Unions21 15 -
CLASS 15 -
Common Wealth 20 11
FairShare T/A ShareAction 10 -
Ella Baker 15 -
Community - 14
Autonomy - 20
Unchecked UK - 13
PIRC Ltd. (Pensions and Investments Research Consultants) - 13
The Equality Trust - 17
Workers Inquiry Project - 15
Other 29 130
240 416

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

6 Grants payable

(Continued)

7 Support costs

Support costs
Support costs Governance 2021 Support costs Governance 2020
costs costs
as restated as restated as restated
£'000s £'000s £'000s £'000s £'000s £'000s
Staff costs 193 - 193 186 - 186
Travel and subsistence 2 - 2 - - -
Occupancy costs 23 - 23 12 - 12
Legal and professional 32 - 32 42 - 42
Premises costs 19 - 19 14 - 14
HR costs 6 - 6 - - -
Meeting costs 1 - 1 12 - 12
Audit fees - 27 27 - 49 49
Non - audit fees - 6 6 - 7 7
276 33 309 266 56 322
Analysed between
Charitable activities 276 33 309 266 56 322

Governance costs includes payments to the auditors of £27,000 (2020: £49,000) for audit fees and £6,000 (2020: £7,000) in respect of non-audit fees.

8 Trustees

During the year expenses incurred by four of the Trustees and reimbursed to them amounted to £803 in relation to travel expenses (2020: £3,240).

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Employees

The number of employees during the year was 3 (2020: 1).

Employment costs 2021 2020
£'000s £'000s
Wages and salaries 133 90
Social security costs 12 7
Pension costs 14 -
Recharged staff costs 34 89
193 186

The recharged staff costs are from the Confederation of Shipbuilding and Engineering Unions, who provide staffing resources to the Foundation.

The key management personnel of the charity comprises the Trustees, Executive Director, Deputy Director and Finance and Administration Manager. The Trustees do not receive any remuneration, except as stated in note 8. The total employee benefits of the other key management personnel of the charity were £192,835.

The number of employees whose annual remuneration was £60,000 or more were:

2021 2020
Number Number
£60,001 - £70,000 - 1
£70,001 - £80,000 1 -
Net gains/(losses) on investments
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
as restated as restated as restated
£'000s £'000s £'000s £'000s £'000s £'000s
Revaluation of investments 820 3,845 4,665 876 356 1,232
Gain/(loss) on sale of
investments 459 168 627 (6,270) (3,246) (9,516)
1,279 4,013 5,292 (5,394) (2,890) (8,284)

10 Net gains/(losses) on investments

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

11 Fixed asset investments

Listed Unlisted
Cash in portfolio		 Total
investments investments
£'000s £'000s £'000s £'000s
Cost or valuation
At 1 January 2021 as restated 13,558 3,785 1,002 18,345
Additions 4,706 - (4,706) -
Valuation changes 1,164 3,501 - 4,665
Investment management fees - - (80) (80)
Cash withdrawn - - (1,155) (1,155)
Dividends received - - 309 309
Disposals (4,267) - 4,894 627
At 31 December 2021 15,161 7,286 264 22,711
Carrying amount
At 31 December 2021 15,161 7,286 264 22,711
At 31 December 2020 13,558 3,785 1,002 18,345
12 Financial instruments 2021 2020
as restated
£'000s £'000s
Carrying amount of financial assets
Instruments measured at fair value through profit or loss 15,161 13,558
13 Debtors
2021 2020
Amounts falling due within one year: £'000s £'000s
Prepayments and accrued income 11 10
14 Creditors: amounts falling due within one year
2021 2020
as restated
£'000s £'000s
Other creditors 86 92
Accruals and deferred income 51 121
137 213

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

15 Restricted funds

The income funds of the charity include restricted funds comprising the following amounts held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Revaluations, Balance at Incoming Resources Transfers Revaluations, Balance at
1 January 2020 resources expended gains and losses
1 January 2021		 resources expended gains and losses
31 December
2021
£'000s £'000s £'000s £'000s £'000s £'000s £'000s £'000s £'000s £'000s
The Retention Fund 10,948 207 (102) (2,890) 8,163 149 (64) (353) 4,013 11,908

This restricted income fund is the "Retention Fund" held by separate trustees for the benefit of the Foundation. The Retention Fund was created by the Court Order that released funds from the CSEU 35 Hour Week Campaign Fund and led to the formation of the Foundation. This fund is currently held by the trustees of the Retention Fund to meet any outstanding liabilities, in accordance with the Court Order. The trustees of the Retention Fund 'can make transfers to the unrestricted funds of the Foundation in certain circumstances and in due course the Retention Fund will pass to the Unrestricted Funds of the Foundation by way of a final transfer as required by the Court Order.

The transfer relates to one lump sum received from the Retention Fund. This is classified as a movement between the restricted and unrestricted fund, following the Retention Fund becoming a restricted fund of the foundation.

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

16
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£'000s
£'000s
Fund balances at 31
December 2021 are
represented by:
Investments
11,036
11,675
Current assets/(liabilities)
612
233
11,648
11,908		 Total
Unrestricted
funds
Restricted
funds
Total
as restated
as restated
as restated
2021
2020
2020
2020
£'000s
£'000s
£'000s
£'000s
22,711
10,704
7,641
18,345
845
(351)
522
171
23,556
10,353
8,163
18,516		 Total
Unrestricted
funds
Restricted
funds
Total
as restated
as restated
as restated
2021
2020
2020
2020
£'000s
£'000s
£'000s
£'000s
22,711
10,704
7,641
18,345
845
(351)
522
171
23,556
10,353
8,163
18,516
18,516

17 Related party transactions

The Foundation paid £33,842 to the Confederation of Shipbuilding and Engineering Unions in respect of the recharged staff costs as the Confederation provides staffing resources to the Foundation.

The Foundation received £15,096 from the Confederation of Shipbuilding and Engineering Unions in respect of recharged occupancy costs as the Foundation provides accommodation resources to the Confederation.

I Waddell, the Executive Director of the Foundation, is General Secretary of the Confederation. D M Holland, A J McDiarmid and R Murdoch, who are CSEU Member trustees of the Foundation, are members of the Executive Council of the Confederation.

18 Prior Year Adjustment

A prior year adjustment of £8,163k (2020: £10,948k) has been made to recognise the restricted income fund in relation to the "Retention Fund" held by separate trustees for the benefit of the Foundation. The Retention Fund was created by the Court Order that released funds from the CSEU 35 Hour Week Campaign Fund and led to the formation of the Foundation. In accordance with the Court Order, the fund is currently held by the trustees of the Retention Fund to meet any outstanding liabilities. In due course the funds will pass to the Foundation by way of a final donation as required by the Court Order. The effect of the adjustments on the comparative Statement of Financial Activities can be seen from the “Restricted funds” column. The effect on the balance sheet was to increase investments by £7,642K, cash at bank by £563K and creditors by £42K.

ALEX FERRY FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

19 Cash generated from operations 2021 2020
as restated
£'000s £'000s
Surplus/(deficit) for the year 5,040 (8,703)
Adjustments for:
Investment income recognised in statement of financial activities (377) (416)
(Gain)/loss on disposal of investments (627) 9,516
Fair value gains and losses on investments (4,665) (1,232)
Investment management fees 80 -
Movements in working capital:
(Increase) in debtors (1) (10)
(Decrease)/increase in creditors (76) 89
Cash absorbed by operations (626) (756)
20 Analysis of changes in net funds
The charity had no debt during the year.